HomeMy WebLinkAboutPre Attachment 2EXHIBIT "B"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Developers
RESOLUTION 06-0327
MAY 25, 2006
HOMEOWNERSHIP POLICY-
DEVELOPER
PROPOSED HOMEOWNERSHIP
POLICY- DEVELOPER
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.
Same as Resolution No. 06-0327
(No change)
FundingSame
HOME, SHIP, CDBG, AHT
as Resolution No. 06-0327
(No change)
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-par ticipating_ n_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.
Forgivable Loan converted to a
forgivable second mortgages 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
_f Mia -
Of pro -grams for a minimum of
five (5) years.
Second mortgage to buyer will have
the same terms as the
Homeownership Policy- Buyers. as
approved by the City Commission,
with the exception of the amount of
subsidy per unit to be negotiated
with developer at time of funding.
Minimum/
Maximum Subsidy
$1,000 per unit to HUD MaximumSame
subsidy cap as published based on
bedroom size.
as Resolution No. 06-0327
(No change)
(g )
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.
.
Same as Resolution No. 06-0327
(No change)
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 restrictive
covenant will remain on the property
and applicable interest rates will be
Same as Resolution No. 06-0327 .
(No change)
EXHIBIT "B"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Developers
due.
Developer Fee
Up 1016% of total project costs.
Disbursements based on
percentage of construction
completion.•
Same as Resolution No. 06-0327
(No change)
.
Minimum Down Payment
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.
Same as Resolution No. 06-0327 ,
(No change)
Minimum Ratio of City Funds
to other Funds in the Project
1:2 Desirable on a project by project ,
basis
Same as Resolution No. 06-0327
(No change)
Type of Assistance
Construction hard costs and soft
costs or set -aside for homebuyer
assistance afier.completion.
Same as Resolution No. 06-0327
(No change)
Maximum Purchase
PriceNalue of Property
$236 000.00
Same as Resolution No. 06-0327 •
(No change)
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)
—
Same as Resolution No. 06-0327
(No change)