HomeMy WebLinkAboutMemoTG :
FROM :
OF WNW, FLORPA
F` tl"EEt C--_ [C. 6,!LEMORAN DUI
Members of the Housing and
Commercial Loan Committee
js
Barbara Gomez -Rodriguez, pirec
Department of Community DDvel;o
November 17, 2006
DATE :
FILE :
Miami Dream Homes Investment Group, Inc.
SUBJECT :
U Scattered Sites project
REFERENCES :
ENCLOSURES:
BACKGROUND
On May 27, 2005, the City of Miami Commission approved Resolution 05-0357 authorizing the
conveyance of six (6) City owned parcels to Miami Dream Homes Investment Group, Inc. for the
development of single family homes and / or condominiums.
On May 19, 2006, the Department of Community Development presented the Housing and
Commercial Loan Committee (HCLC) with a recommendation to fund six (6) new construction
single family homes in the Model City Neighborhood. The loan committee members voted to
defer the item and requested that the following items be presented at a future HCLC meeting and
have included in the package:
1) Identification of lots to be developed:
Address Number of Homes
1535 NW 58th Terrace 3
1612 NW 60th Street 2
1543 NW 59th Street 1
2) Architectural drawings: Attached is a copy of the house elevations and floor plans
3) Revised Budget: Attached is a revised budget.
4) Clarification of Equity Investment: The developer will be investing $146,748 of
investor equity per house or a total of $880,488. The attached budget is indicative of the
cost per house.
5) Copy of Sales Contract: See sample contract attached with a sales price not to exceed
$225,000.
BORROWERS REQUEST
The borrower is requesting $78,252 in Home Investment Partnerships (HOME) Program funds for
each of the six (6) single family homes to be developed in the Model City Neighborhood. The
homes are to be built on three (3) parcels (consisting of six (6) lots) that were conveyed by the City
to Miami Dream Homes Investment Group, Inc. The funds will be used for construction hard and
soft costs in connection with each home.
DEPARTMENTAL RECOMMENDATION
Staff has reviewed the borrower's request and recommends a total of $78,252 in HOME funds for
each of the six (6) homes. Such funds will be transferred to each homebuyer in the form of second
mortgage financing in an amount not to exceed $78,252 per unit. This amount falls within the U.S.
Housing and Urban Development (HUD) maximum allowable subsidy per three (3) bedroom units.
The funds will be used for hard and soft cost.
The following loan terms and conditions will apply:
1. Eligible project costs (project reimbursements) will be effective the date of the
environmental clearance;
2. Construction on the project shall not commence until Miami Dream Homes Investment
Group, Inc. is notified in writing that the project has been environmentally cleared as
required by U.S. HUD;
3. Funds will not be disbursed until the Removal of Grant Condition is received by the City
from U.S. HUD;
4. The proposed budget line items will include a total of $15,000 which will be applied
towards costs incurred by the City on behalf of the project;
5. Compliance with reporting requirements related to previously funded City projects which
are under construction or in the affordability period including OMB A-133 reporting and
current insurance certificates;
6. Six percent (6%) per annum simple interest on outstanding loan to accrue and become due
and payable in full if project is not successfully completed within the City's standard
timeframe as outlined in the loan agreements and / or all such single family homes have not
been sold to a qualified Low Income homebuyer (as defined in HOME program
regulations, 24 C.F.R. Part 92) by April 30, 2008;
7. If the default arises from the developer selling the property for a non -affordable purpose at
anytime during the loan term, then the highest interest rate available under federal law will
be applicable. In addition, the Restrictive Covenant will remain as a restriction on the
Project property throughout the Affordability Period and the borrower will be debarred
from receiving any City funding for a period of five (5) years;
8. If a unit is sold during the thirty (30) year affordability period, it must be sold to an eligible
homebuyer approved by the City (80% or less of area median income); and
Approved as Recommended by Staff
To Include Additional Conditions or Restrictions
Disapproved
To Include Further Action
Specify any further action, conditions or restrictions:
9. At the sale of each housing unit, the City shall release the lien of the mortgage for the
purpose of funding a second mortgage financing in an amount not to exceed $78,252 per
unit or $469,512 in total loan funds. Any portion of the loan not converted to homebuyer
mortgage will be repaid to the City.
Transferring HOME Program funds to Miami Dream Homes Investment Group, Inc.
Source
Sources of Reallocation
Amount
Recommended
Redistribution to:
Activity
Name /
Description
Amount
HOME
IDIS# 2169
HOME
HOMEOWNERSHIP
PROGRAM (HSG-M06)
$469,512
Miami Dream Homes
Investment Group, Inc.
Construction /
Soft Cost
6 Single
Family homes
$469,512
HOUSING AND COMMERCIAL LOAN COMMITTEE DECISION:
YesgNo ❑ N/A ❑
Yes❑ No ❑ N/A U
Yes❑No❑N/A
❑
Yes❑ No ❑ N/A ❑
Chairperson or Representative
HOUSING LOAN COMMITTEE
NOV 19 20
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