HomeMy WebLinkAboutPreLegislation 3City of Miami
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Resolution: R-06-0527
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 06-01450
Final Action Date:9/12f2006
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AMENDING THE CITY OF MIAMI DEPARTMENT OF COMMUNITY
DEVELOPMENT'S 31ST YEAR HOUSING PROGRAM POLICIES FOR
HOMEOWNERSHIP ACTIVITIES, AS DESCRIBED IN "EXHIBIT A" AND "EXHIBIT
8," ATTACHED AND INCORPORATED.
WHEREAS, pursuant to Resolution No. 05-0099, adopted February 10, 2005, the City
Commission approved the 31st year policies related to Public Service, Economic Development,
Housing Activities and the Housing Opportunities for Persons with AIDS Program funds; and
WHEREAS, pursuant to Resolution No, 06-0327, adopted May 25, 2006, the City Commission
approved amending the City of Miami Department of Community Development's 31st Housing
Program Policies for homeownership activities; and
WHEREAS, the Administration has proposed revising the Department of Community
Development's 31st Year Housing Program Policies for homeownership activities, as attached and
incorporated;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City of Miami Department of Community Development's 31 st Year Housing
Program Policies for homeownership activities, are amended, as described in "Exhibit A" and "Exhibit
B," attached and incorporated.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {2}
APPROVED AS TO FORM AND CORRECTNESS:
JORGE L. FERNANDEZ
CITY ATTORNEY
Footnotes:
File Number 06-01450 Enactment Number R-06-0527
{1} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days
from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective
immediately upon override of the veto by the City Commission.
EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Buyer
RESOLUTION 06-0327
MAY 25, 2006
HOMEOWNERSHIP POLICY-
BUYERS
PROPOSED
HOMEOWNERSHIP POLICY -
BUYERS
Program Description
To assist low income homebuyers in
the purchase of a home by providing
down payment, closing costs and/or
second mortgage financial
assistance for the purchase of a
newly constructed or existing
residential property within the City.
Same as Resolution No. 06-0327
(No change)
Funding
HOME, SHIP, CDBG, AHT
Same as Resolution No. 06-0327
(No change)
Repayment Requirements
Zero (0%) interest loan for a period
of 30 years. In the case of sale or
transfer of the unit, the entire
assistance amount will be due and
payable.
1. In the case of sale or transfer of
the property, the borrower will
be required to sell the unit to
an income eligible borrower
approved by the City.
2. In the case of sale or transfer of
the unit the City will share in
the gain realized by the
borrower.
a. 0 to 3 years — City
receives 100% of the
City's pro rata share of
the gain generated.
b. 3-20years —On the
3rayear, City receives
85% of the City's pro
rata share of the gain
generated and borrower
receives 15%.
Thereafter, the borrower
receives an additional
5% of the City's
prorated share per year
reducing the City's
share by the same
percentage until year
20.
c. Year 20 and above:
The borrower receives
100% of the q in,
The above gain sharing proposal will
terminate in foreclosure: however,
the city will require lenders to
provide us a right of first refusal to
purchase the loan at a negotiated
price.
3. Forgivable loan after the
affordability period of 30 years
EXHIBIT "A"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Buyer
Minimum/
Maximum Subsidy
$1,000/ $40,000
Same as Resolution No. 06-0327
(No change)
Affordability Period
30 Years
Same as Resolution No. 06-0327
(No change)
Security
Affordability period to be enforced by
a restrictive covenant that will run
with the land as well as a mortgage.
Same as Resolution No. 06-0327
(No change)
Developer Fee
N/A
Same as Resolution No. 06-0327
(No change)
Minimum Down Payment
$500.00
Same as Resolution No. 06-0327
(No change)
Minimum Ratio of City Funds
to other Funds in the Project
N/A
Same as Resolution No. 06-0327
(No change)
Type of Assistance
Down payment assistance and
closing costs
Same as Resolution No. 06-0327
(No change)
Maximum Purchase
PriceNalue of Property
$236,000.00
Same as Resolution No. 06-0327
(No change)
EXHIBIT "B"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Developers
RESOLUTION 06-0327
MAY 25, 2006
HOMEOWNERSHIP POLICY-
DEVELOPER
PROPOSED HOMEOWNERSHIP
POLICY- DEVELOPER
Program Description
Provides assistance to developers
for the construction of new
affordable homeownership units.
The units can be condos,
townhomes, or single family
scattered site developments.
Same as Resolution No, 06-0327
(No change)
Funding
HOME, SHIP, CDBG, AHT
Same as Resolution No. 06-0327
(No change)
Repayment Requirements
Forgivable Loan converted to a zero
(0%) interest repayable second
mortgage for the buyers once
project is completed. In the 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 the 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 following terms:
1. Repayable at 0% interest after
the affordability period of 30 years
2. In the case of sale or transfer
of the unit, the entire assistance
amount will be due and payable.
Forgivable Loan converted to a
forgivable second mortgages for the
buyers once project is completed. In
the 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 the 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,
yrith the exception of the amount of
subsidy per unit to be negotiated
with developer at time of funding.
Minimum/$1,000
Maximum Subsidy
per unit to HUD Maximum
subsidy cap as published based on
bedroom size.
Same as Resolution No. 06-0327
(No change)
Affordability Period
30 year 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. 06-0327
(No change)
•
Security
There will be a restrictive covenant
and mortgage on the property.
Upon completion of the project, the
total debt to the developer is
transferred in pro rata share to each
assisted unit. In the event of a
developer default, the restrictive
covenant will remain on the property
Same as Resolution No, 06-0327
(No change)
EXHIBIT "B"
City of Miami
Department of Community Development
Housing Program Summary
Homeownership Policy- Developers
due.
Developer Fee
Up to16% of total project costs.
Disbursements based on
percentage of construction
completion,
Same as Resolution No. 06-0327
(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. 06-0327
(No change)
Minimum Ratio of City Funds
to other Funds in the Project
1:2 Desirable on a project by project
basis
1
Same as Resolution No. 06-0327 .
. _ (No change)
--- ---- - . .._... _____
Type of Assistance
Construction hard costs and soft
costs or set -aside for homebuyer
assistance after completion.
Same as Resolution No. 06-0327
(No change)
Maximum Purchase
PriceNalue of Property
$236,000.00
Same as Resolution No. 06-0327
(No change)
MISCELLANEOUS
1. 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% for AHT
funds)
Same as Resolution No. 06-0327
(No change)