HomeMy WebLinkAboutExhibit AEXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Developers
RESOLUTION 06-0527
SEPTEMBER 12, 2006
HOMEBUYER POLICY -
DEVELOPERS
PROPOSED HOMEOWNERSHIP
POLICY -DEVELOPERS
Program Description
Provides assistance to the developers for the
construction of new affordable homeownership
units. The unit can be condos, townhomes, or
single family scattered site developments.
Same as Resolution No. 06-0527
(No Change)
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Funding
HOME, SHIP, CDBG, AHTF
Same as Resolution No. 06-0527
(No Change)
Repayment
Requirements
Forgivable Loan converted to a forgivable
second mortgage for buyers once a project is
completed. In 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 development
will be barred from participating in any City of
Miami programs 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.
Same as Resolution No. 06-0527
with the exception of the following addition:
Buy Down Option:
Funding provided to a developer of an
affordable homeownership development,
equal to the difference between the cost of the
q
project and the units approved market value
"buy down amount".
Minimum /Maximum
Subsidy
$1,000 per unit to HUD Maximum subsidy cap
as published based on bedroom size.
Same as Resolution No. 06-0527
(No Change)
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EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy — Developers
Affordability Period
30 years 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. 06-0527
(No Change)
Security
There will be a restrictive covenant that will
run with the land as well as a mortgage on the
property. Upon completion of the project, the
total debt to the developer is transferred in a
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 due.
Same as Resolution No. 06-0527
(No Change)
Development Fee
Up to 16% of total project costs.
Disbursements based on percentage of
construction completion.
Same as Resolution No. 06-0527
(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. 06-0527
(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. 06-0527
(No Change)
Type of Assistance
Construction hard costs and soft costs or set-
aside for homebuyer assistance after
completion.
Same as Resolution No. 06-0527
(No Change)
Maximum Purchase
Price / Value of Property
$236,000
Same as Resolution No. 06-0527
(No Change)
Miscellaneous
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%
of AMI for AHT funds)
Same as Resolution No. 06-0527
(No Change)
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