HomeMy WebLinkAboutSummary FormPH.17
Date: 8/17/2007
AGENDA ITEM SUMMARY FORM
FILE ID: 0 0 1) a Q
Requesting Department: Community Development
Commission Meeting Date: 9/11/2007 District Impacted:
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: CONVERTING $250,000 OF THE $500,000 LOAN TO ABDA INTO A GRANT
Purpose of Item:
IN CONNECTION WITH THE RALPH PLAZA II TOWNHOMES PROJECT, CONVERTING $250,000
OF THE $500,000 STATE HOUSING PARTNERSHIP INITIATIVE ("SHIP") FUNDS PREVIOSLY
ALLOCATED TO ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY, INC. ("ABDA"), TO A
GRANT, AND THAT THE REMAINING BALANCE IN THE AMOUNT OF $250,000, BE PAID FROM
PROCEEDS OF THE SALE OF THE TOWNHOMES; FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS FOR SAID PURPOSE.
Background Information:
PLEASE SEE ATTACHED
Budget Impact Analysis
Is this item related to revenue?
Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
C/P Project No:
Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Dept. Director
Chief
Final Approvals
AND DATE)
•
City Manager
AGENDA ITEM SUMMARY FORM CONTINUED
Background Information:
On April 28, 2006, the City of Miami Housing and Commercial Loan Committee ("HCLC")
approved an allocation of $500,000 of State Housing Initiatives Partnership Program
("SHIP") funds to Allapattah Business Development Authority, Inc. ("ABDA"), for the
Ralph Plaza 11 Townhomes project.
The terms of the loan require that upon the sale of each of the thirty (30) project
townhomes, ABDA repay to the City the difference between the amount of City funded
homebuyer second mortgage financing and $16,666.67.
Pursuant to Resolution No. 07-0136, adopted May 8, 2007, the City Commission granted
ABDA an extension of sixty (60) days to pay the pro-rata share of SHIP funds upon the
closing of each townhome.
The County and the City requested that ABDA keeps the price of these townhomes
affordable between $125,000 and $145,000.
Because of the substantial increase in the construction cost of the townhomes and the
fixed purchase price required by the County and the City, ABDA will not be able to pay
off the entire $500,000 SHIP funds back to the City from the sale proceeds.
Some of the buyers require closing cost assistance from the Metro -Miami Action Plan
Trust ("MMAP") which has given them until September 15, 2007 to close on the loans.
The next HCLC meeting is scheduled for September 21, 2007.
The Administration is recommending converting $250,000 of the $500,000 SHIP loan
previously allocated to ABDA, into a grant, and that the remaining balance in the amount
of $250,000, be paid from proceeds of the sale of the townhomes.