HomeMy WebLinkAboutMemo 3- CI-- — / 1
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
CA-17
The Honorable Mayor and Members of
the City Commission
FROM :
f Carlos A. Gimenez
City Manager
DATE:
SUBJECT:
REFERENCES:
ENCLOSURES:
DEC 2 7 L3Ji
FILE :
Resolution Amending Resolution
No. 00-867 on the Housing and
Commercial Loan Committee
City Commission Meeting
of January 10, 2002
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached resolution amending
Section 3 of Resolution No. 00-867 by establishing a policy that the attendance of five (5)
members of the Housing and Commercial Loan Committee shall constitute a quorum for the
purpose of conducting a committee meeting and Section 5 of said Resolution by delegating and
authorizing the City Manager and/or his designee to approve or disapprove homeowners'
requests for subordination agreements, loan restructuring and/or repayment plans for those
households that have received financial assistance through the City's Single Family
Rehabilitation and Homebuyers Financing Programs.
BACKGROUND:
At its meeting of September 28, 2000, the City Commission adopted Resolution No. 00-867,
which authorized and directed the City Manager to establish an eleven (11) member Housing and
Commercial .Loan Committee for the purpose of approving and disapproving specific housing
and commercial loans and/or grants provided by the City through the Community Development
Block Grant (CDBG), Home Investment Partnership (HOME), and State Housing Initiatives
Partnership (SHIP) programs.
Resolution No. 00-867 further empowered the Committee to approve or disapprove
subordination agreements, loan restructuring and/or loan repayment plans submitted by
homeowners or an applicant relative to the City's existing housing or commercial loan portfolio,
and granted authority to the City Manager or his designee to approve or disapprove specific
housing loans provided by the City through the City's CDBG, SHIP and Home funded Single
Family Rehabilitation and Homebuyers Financing Programs.
Over the past several months, a substantial number of homeowners who have received financial
assistance through the Single Family Rehabilitation and Homebuyers Financing Programs have
refinanced the first mortgages on their residences to take advantage of the reduction in today's
mortgage interest rates. In most instances, homeowners are required to secure City of Miami
approval to subordinate its second mortgage in favor of a new first mortgage in order to complete
the refinancing transaction. Pursuant to Resolution No. 00-867, a homeowner'squest for a
subordination of a City mortgage requires approval of the Housing and Commercial Loan
Committee.
At its meeting of September 28, 2001, the Housing and Commercial Loan Committee adopted a
motion directing the City Administration to seek City Commission approval to amend Resolution
No. 00-867 by delegating the City Manager and/or his designee authorization to approve or
disapprove subordination agreements, loan restructuring and repayment plans submitted by
homeowners that have received financial assistance through the Single Family Rehabilitation and
Homebuyers Financing Programs.
At the same ,meeting, the Committee also directed the City Administration to seek City
Commission approval that would establish a policy that the attendance of five (5) of the eleven
(11) committee members at a meeting would constitute a quorum.
In an effort to streamline the process and be more responsive to homeowners seeking to
refinance their first mortgages and/or restructure their home improvement loan with the City,
City Commission adoption of the attached resolution is recommended. The attached resolution
amends Resolution No. 00-867 and thereby effectuates the Committee's recommendations.
1/1/
B/GCW/JBH
2