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Home My WebLink AboutPre Legislation 2J-00-798 9/28/00 RESOLUTION NO. 00 Ui'r A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, RESCINDING RESOLUTION NOS. 98-580 AND 00-418 IN THEIR ENTIRETY, THEREBY ABOLISHING THE HOUSING LOAN COMMITTEE; FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER TO ESTABLISH AN ELEVEN (11) MEMBER HOUSING AND COMMERCIAL LOAN COMMITTEE TO APPROVE/DISAPPROVE CERTAIN HOUSING AND COMMERCIAL LOANS AND/OR GRANTS TO BE •PROVIDED BY THE CITY OF MIAMI THROUGH THE COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") , HOME INVESTMENT PARTNERSHIP ("HOME") AND STATE HOUSING INITIATIVES PARTNERSHIP ("SHIP") PROGRAMS; GRANTING AUTHORITY TO THE HOUSING AND COMMERCIAL LOAN COMMITTEE TO APPROVE/DISAPPROVE LOAN APPLICATIONS FOR FUNDING OF AFFORDABLE HOUSING PROJECTS AND COMMERCIAL (BUSINESS) PROJECTS AND RELATED TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, SUBORDINATION AGREEMENTS, LOAN RESTRUCTURING PLANS AND/OR LOAN REPAYMENT PLANS FOR AFFORDABLE HOUSING PROJECTS AND COMMERCIAL LOANS IN THE CITY'S LOAN PORTFOLIO; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPROVE/DISAPPROVE SPECIFIC HOUSING LOANS PROVIDED BY THE CITY THROUGH THE CITY'S CDBG FUNDED SINGLE FAMILY REHABILITATION PROGRAM AND SHIP FUNDED SINGLE FAMILY REHABILITATION AND HOMEBUYERS FINANCING PROGRAM; DIRECTING THE CITY MANAGER TO PRESENT EACH APPROVED LOAN TO THE STATE OF FLORIDA FINANCIAL EMERGENCY OVERSIGHT BOARD FOR REVIEW AND FINAL APPROVAL; AND APPROVING THE CITY OF MIAMI LENDING POLICY GUIDELINES, ATTACHED HERETO AND MADE A PART HEREOF, TO IMPLEMENT THE COMMERCIAL LOAN PROGRAM. r, CITY C071_7ISSIOR 1=7..23 OF 1 zcco e-� Investment 'Partnership Program ("HOME"), WHEREAS, Resolution No. 98-580, adopted June 9, 1998, authorized and directed the City Manager to appoint a seven (7) member Housing Loan Committee for the purpose of recommending approval/disapproval of loans and/or grants provided by the City of Miami (the "City") through its Community Development Block Grant ("CDBG") funded Single Family and Multifamily Rehabilitation Programs, Home and the State Housing Initiatives Partnership Programs ("SHIP"), in response to findings and concerns identified by the U.S. Department of Housing and Urban Development's District Office of the Inspector General ("OIG") in its Audit Report dated March 26, 1998, regarding the City's loan underwriting procedures; and WHEREAS, the composition of the Committee, approved pursuant to Resolution No. 98-580, was comprised of a Chairperson appointed by the Mayor, four (4) representatives from the private sector with real estate lending and/or affordable housing development experience and three (3) representatives from the City Administration; and WHEREAS, at its meeting of September 28, 1999, with the .adoption of Resolution No. 99-3O5, the City Commission approved Page 2 of 8 a modification to the City of Miami Local Housing Assistance Plan for the SHIP Program, which resulted in the expansion of the number of housing assistance programs available to very low, low and moderate income families residing in the City of Miami; and WHEREAS, since October 1999, with the establishment of the Homebuyers_t.Financing and Single Family Rehabilitation Programs, which provide a maximum of up to $40,000 in financial assistance to eligible households for the purchase of a home or the rehabilitation of an existing home, respectively, the City has experienced a substantial increase and demand from potential homebuyers and current homeowners for financial assistance; and WHEREAS, pursuant to Motion-99-976, adopted December 14, 1999, the City Commission authorized and directing the City Manager and the City Attorney to proceed with the termination or winding down of the agreement with Miami Capital Development, Inc. and obtain the loan portfolio from said entity; and WHEREAS, subsequently, Resolution No. 98-580 was amended by 9/10.9 the adoption of Resolution No. 00-418 on May 11, 2000, to change the designation of individuals to be appointed as members of the City Housing Loan Committee by (1) eliminating the appointment Page 3 of 8 00- 867 of an individual representing Miami Capital Development, Inc., (2) providing for the appointment of a third member with private real estate lending experience, and (3) providing for the City Manager's appointment of individuals from the Departments of Planning and Zoning and Real Estate and Economic Development as eligible members of said Committee; and WHEREAS, pursuant to Resolution No. 00-413, adopted May 11, 2000, the City Commission designated the Little Haiti Credit Union and Latin Chamber of Commerce (CAMACOL) as the administrative entities to assist the City in its efforts to reestablish a Commercial Loan Program that creates a public/private partnership to stimulate business development and growth in the City; and WHEREAS, pursuant to Resolution No. 00-755, adopted September 14, 2000, the City Commission designated the Tacolcy Economic Development Corporation, Inc. as an administrative entity to assist the City in its efforts to reestablish a Commercial Loan Program that creates a public/private partnership to stimulate business development aayd'growth in the City; and _ Page 4 of 8 On- 867 WHEREAS, presently the Department of Community Development is responsible for servicing the loan portfolio previously originated and managed by Miami Capital Development, Inc.; and WHEREAS, the City Commission directed the Administration to develop guidelines for the Commercial Loan Program; and WEEPFS, -in an effort to be more responsive to the residents of the City, it is recommended that the City Commission grant authority to the City Manager or his designee to approve/disapprove specific housing loans provided by the City through the CDBG and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs and to establish a Housing and Commercial Loan Committee consisting of eleven (11) members and further directed the Administration to develop guidelines for the Commercial Loan Program; and WHEREAS, to accomplish the foregoing, it is in order for the City Commission to rescind Resolution Nos. 98-580 and 00-418, in their entirety, to abolish the existing Housing Loan Committee, and replace same with a newly established Housing and mew Commercial Loan Committee; and Page 5 of 8 06- 867 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF TH= CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference and incorporated as if fully set forth in this Section. Secti-on 2: - Resolution No. 98-580, adopted. _June 9, 1998, and Resolution No. 00-418, adopted May 11, 2000, are hereby rescinded in their entirety, thereby abolishing the Housing Loan Committee created pursuant to said Resolutions. Section 3. The City Manager is hereby authorized and directed to establish an eleven (11) member Housing and Commercial Loan Committee to approve/disapprove certain housing and commercial loans and/or grants to be provided by the City through the CDBG, HOME and SHIP Programs which shall be comprised as follows: (a) the Chairperson appointed by the Mayor; (b) one (1) member who is an active affordable housing provider; (c) three (3)+members with private real estate lending experience; (d) three (3) members with private commercial lending experience; and Page 6 of,.8. 00- 867 (e) three (3) members appointed by the City Manager from the City Administration. Section 4. Except as provided in Section 5 herein, the City of Miami Housing and Commercial Loan Committee is hereby granted the authority to approve or disapprove all loan applications for funding of affordable housing projects and commercial (business) projects and related transactions including, but not limited to, subordination agreements, loan restructuring plans and/or loan repayment plans in the City's loan portfolio. Section 5. The City Manager or his designee is hereby authorized to approve or disapprove specific housing loans provided by the City through the City's CDBG funded Single Family Rehabilitation Program (one to four units) in an amount not to exceed $80,000 per transaction, and SHIP funded Single Family Rehabilitation and Homebuyers Financing Programs in an amount not to exceed $40,000 per transaction. Section 6. The City Manager is hereby directed to present each approved loan transaction to the State of Florida Financial Emergency Oversight Board for review and final approval. Page 7 of 8 P0- 8G 1/ Section 7. The City attached hereto and made Commercial Loan Program are hereby approved. of Miami Lending Policy Guidelines a part hereof, to implement :he This Resolution shall become effective immediately upon its adoption and signature of the M ayor.-' ATTEST: Section 8. PASSED AND ADOPTED .this 28th day of September 2000. JOE CAROLLO, MAYOR 1wail Sec.. 2-3 . ct- t:'.:; Krona Yt 'r: !hi: c:comas of a tw k�i;: :1 �� v - - .- . • re;a.-aii.C,�.' san . WIthDut I+`* WALTER J. FOEMAN, CITY CLERK APPROVE TTORNEY 4682:DF:IT:BSS PO - CORRECTNESS b or x LLO Iv. fity...v4lattikd ty Clerk If the Mayor does not sign at the end of ten calendar his days it shall become adopted. If the Y from the date effective effectivepti Mayor vetoes this 1t was passed and immediately upon override of the veto byot it shall the Citybecome Commission_ Page 8 of 8 n _ S67