HomeMy WebLinkAboutExhibit 2City of Miami
Department of Community Development
Housing ProgramSummary
HOMEOWNERSHIP POLICY -DEVELOPERS
Program Description
Provides assistance to developers for the construction of new affordable
homeownership units. The units -can be condos_ townhornes. or single family scattered
site developments.
Funding
HOME. SHIP, COBG. AHT
Repayment
Requirements
Forgivable -Loan converted to a zero (0%) interest repayable second mortgage for the
buyers once project is completed. In the case of a Developer default (incomplete
project) full payment of construction loan and accrued default interest at the maximum
rate allowed by law.
In addition. the developer and all principals with a minimum of 10% share in the
development will be barred from participating in any City of Miami programs for a
minimum of five (5) years.
Second mortgage to buyer will -have the following terms:
1. Repayable at 0% interest after the affordability period of 30 years
2. In the case of sale or transfer of the unit, the entire assistance amount will be due
and payable.
Minimum/Maximum
Subsidy
51,000 per unit to HUD Maximum subsidy cap as published based on bedroom size.
Affordability Period
30 year affordability period for the second mortgages. The second mortgages will be
j at same terms and conditions as that for direct subsidy -to buyers at the time of closing.
1
Security
There will be a restrictive covenant and mortgage on the property. Upon emptetion of
the project. the total debt to the developer is transferred in pro - ata share toeach
assisted unit. in the event of a -developer default. the restrictive covenant will remain
on the property and applicable interest rates will be due.
Developer Fee
Up to1G% of total project costs. Disbursements based on percentage of construction
:completion.
Service Charge
1% of City Loan with a maximum of $ t5 000 will be due and payable as good faith
.commitment fee for for -profit developers. 30 days after funding approval.
Minimum Ratio of City
Funds to other Funds in
the Project
1:2 Desirable on a project by project :basis
Type of Assistance
Construction hard costs and soft costs or bet -aside for homebuyer assistance after
completion
Maximum Purchase
PriceNalue of Property
S236.000.00
Miscellaneous
1. Income of buyers must be at or below 80% of Area Median Income as
published by HUD iup to 12 %of AMI for SHIP funds; up to 150% for AHT
funds)
Revised
City of Miami
Department of Community Development
Housing Program Summary
HOMEOWNERSHIP POLICY — DEVELOPERS
Program Description
Provides assistance to developers for the construction of new affordable
homeownership units, The units can be condos, townhomes, or single family scattered
site developments.
Funding
HOME, SHIP, CDBG, AHT
Repayment
Requirements
Forgivable Loan converted to second mortgages for the buyers once project is
completed. lathe case of a Developer default (incomplete project) full payment of
construction loan and accrued default interest at the maximum rate allowed by law.
In addition, the developer and all principals with a minimum of 10% share in the
development will be.barred from participating in any City of Miami programs for a
minimum of five (5) years.
Second mortgage to buyer will have the following terms:
1. Forgivable loan'after the affordability period of 30 years
2. in the case of salesor transfer of the unit, the City will share in the gain
realized by the borrower.
a. 0 to 3 years — 100%of the City's pro rata share of the gain generated.
b. 3 - 30 years — On the.011 year, City receives 85% of the City's pro rata
share of the gain generated and borrower receives 15%. Thereafter, the
borrower receives additional 5% of the City's prorate share per year
reducing the City's share by the same percentage.
The above gain sharing proposal will terminate in foreclosure, however, the city will
require lenders to provide us a right of first refusal to purchase the loan at a negotiated
price<
Minimum/Maximum
Subsidy
$1,000 per unit to HUD Maximum subsidy cap published based on bedroom size.
Affordability Period
30 year affordability period for the second mortgages., The second mortgages will be
at same terms and conditions as that for direct subsidy to buyers at the time of closing.
Security
There will be a restrictive covenant and mortgage on the property. Upon completion of
the project, the total debt to the developer is transferred in pro rata share to each
assisted unit. In the event of a developer default, the restrictivecovenant will remain
on the property and applicable interest rates will be due.
Developer Fee
p
Up to16% of total project costs. Disbursements based on percentage of construction
completion.
Service Charge
g
1% of City Loan with a maximum of $15,000 will be due and payable as good faith
commitment fee for for -profit developers, 30 days after funding approval.
Minimum ratio of City
funds to other funds in
the project
1:2 Desirable on a project by project basis
Revised 04-10-06
Type of Assistance
yp
Construction hard costs and soft costs or set -aside for homebuyer assistance after
completion.
Maximum Purchase
PriceNalue of Property
$236,000.00
Miscellaneous
1.
Income of buyers must be at or below 80% of Area Median Income as
published by HUD (up to 120% of AMI for SHIP funds; up to 150% for AHT
funds)
Revised 04-10-06