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HomeMy WebLinkAboutHousing and Commercial Loan CommitteeCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : Daniel J. Alfonso DATE : January 12, 2017 City Manager FROM : George Me Departme of s i unity and Economi! - ' elopment 1'1 SUBJECT: 2016 Annual Report for the Housing & Commercial Loan REFERENCES Committee Member ENCLOSURES: Per City Code Sec. 2-890, please find attached the 2016 Annual Report for the Housing and Commercial Loan Committee. GM/pr FILE : CED 17005 CITY OF MIAMI HOUSING & COMMERCIAL LOAN COMMITTEE ("HCLC") FY 2015-2016 ANNUAL REPORT Department of Community and Economic Development HOUSING AND COMMERCIAL LOAN COMMITTEE ANNUAL REPORT FISCAL YEAR 2015-2016 Committee Background The Housing and Commercial Loan Committee ("HCLC") was established by the City of Miami Commission through Ordinance 13030 for the purpose of approving or disapproving certain housing and commercial loans and/or grants provided by the City of Miami through the Community Development Block Grant ("CDBG"), Home Investment Partnership ("HOME"), State Housing Initiatives Partnership ("SHIP"), and Housing Opportunities for People With AIDS ("HOPWA") programs. The City Commission vested certain authorities in the HCLC, including the power to approve or reject loan applications for funding affordable housing and commercial projects, as well as related transactions including subordination agreements, loan restructuring plans, and/or loan repayment plans. Florida Statute ("F.S.") Chapter 420.9076 requires that municipalities participating in the SHIP program appoint an Affordable Housing Advisory Committee. In order to minimize the number of committees assisting the City of Miami in its housing efforts, the City Commission approved Resolution # 10-0239; which established the HCLC. The structure of the committee, as approved by the City Commission is as follows: • One chairperson nominated by the Mayor and appointed by city commission; • One member who is actively engaged in the residential home building industry in connection with affordable housing; • One member who is actively engaged in the banking or mortgage banking industry in connection with affordable housing; • One member who is a representative of those areas of labor actively engaged in home building in connection with affordable housing; • One member who is actively engaged as an advocate for low-income persons in connection with affordable housing; • One member who is actively engaged as a for -profit provider of affordable housing; • One member who is actively engaged as a not -for -profit provider of affordable housing; • One member who is actively engaged as a real estate professional in connection with affordable housing; • One member who resides within the city limits of the city; • One member who represents employers within the city; • One member who represents essential services personnel, as defined in the local housing assistance plan; and • Two members from city administration nominated by the city manager and appointed by city commission. One of these two members shall actively serve on the city's planning department. 2 Committee Members: Bill Rammos — Chairperson Rammos Holdco, Inc. James Angleton AEGIS FinSery Corp Kevin L. Deeb Deeb Law Firm, P.A. Ben Fernandez Bescon RadelI & Fernandez Gregory Gay City of Opa-Locka Stephen Johnson Lydecker / Diaz Allan J. Hall Retired Jose Fernandez City of Miami Finance Department Christoper Brimos City of Miami Planning Department Iristel Reyes Primer International Properties, Inc. 3 Board Purpose The HCLC exists for the purpose of serving as (1) the Affordable Housing Advisory Committee required by the Florida SHIP program; (2) approving or disapproving housing and commercial loans and/or grants to be provided by the City of Miami through any funds administered by the department of Community and Economic Development; (3) providing oversight and ongoing recommendation on affordable housing issues; and (4) performing such other duties and responsibilities relative to affordable housing and small business development as may be set forth herein or incident thereto. Recommendations are provided to the Committee by Community and Economic Development staff and are evaluated by the HCLC based on the project's financial feasibility, necessity of the request to assure project completion, and other related criteria, All projects must be recommended by staff before the Committee members may consider it. City of Miami Resolution 16-0407, passed in September 2016, tasked the HCLC with studying affordable and workforce housing crisis in the City and making policy recommendations twice a year, for review and consideration by the City Commission, towards helping alleviate the housing crisis. The following tables show a summary of the major actions taken by the HCLC in FY 2015- 2016. Approved Funding Allocations 6 Approved De -obligation of Funds 4 Approved Time Extensions 3 Modification of Repayment Terms 0 Loan Structure 10 Modified Units Sales Terms and Prices 2 In FY 2015-2016, the HCLC approved funding allocations totaling $6,670,000.00. This amount reflects funding for new projects as well as increases in previously approved funds. 4 Current Community Needs Community needs are ascertained through neighborhood public hearings that are held as part of the Citizen Participation Plan requirement. As a result of those hearings, the City of Miami compiled the following high priority needs: • Neighborhood Preservation • Preservation and New Construction of Affordable Housing • Mixed Usellncome Redevelopment In approving staff recommended projects, the HCLC seeks to implement the Consolidated Plan's housing policies which are intended to preserve affordable housing opportunities for low and moderate income residents. The objective is to create a chain reaction that will preserve the historic and social character of low income neighborhoods while raising living standards and creating opportunities for economic growth. Following this philosophy, the HCLC has been instrumental in authorizing financing for: • Construction of New Rental Units: Increase the inventory of affordable rental housing in the city by encouraging the construction of new rental units. The HCLC continues to approve financing project costs for site development and hard and soft construction costs. • Construction of New Homeownership Units: Increase the supply of affordable homeownership units through new construction. The focus is creating affordable homeownership opportunities for low and moderate income families and individuals. This is achieved by financing project costs associated with the development of affordable housing units and by providing hard and soft construction financing and permanent financing. HCLC approved projects are concentrated in City designated Neighborhood Development Zones ("NDZ"). By concentrating mixed income projects in the NDZ's, along with the infrastructure improvements needed to support such projects, the HCLC is attracting private sector investment into these areas as well. 5 Major Accomplishments A number of projects approved by HCLC in previous/current fiscal years were still under construction in FY 2015-2016. These projects total 210 housing units, rental and ownership, pending completion; with direct funding totaling $8,670,000.00. Projects in Progress FY-2015-2016 4 y�ltj g,r't"r�' Carrfour Supportive Housing, Inc. - :,3er,a Acquisition & Rehabilitation Rental project HOME ,;ifp $ 2,000,000.00 !r 18 Ownership Martin Fine Villas, LLC Martin Fine Villas Project HOME $ 2,350,000.00 40 Rental Real Estate Investment Grou., LLC Pear] Gardens A.artments HOME/ AHTF $ 610,000.00 11 Rental Three Round Towers B and C, LLC Three Round Towers B and C project 1-IOMEl AHTF $ 1000,000.00 59 Rental Smothers Preservation Phase One, LLC Smothers Preservation Phase project HOME/ AHTF $ 1,000,000.00 60 Rental Tacolcy Economic Development Co .. TuscanyCove Apartment Project p HOME/ NSP 3 $ 880,O00A0 11 Rental Real Estate Investment Group, LLC Jade Gardens Project HOME $830,000.00 11 Rental 6 Committee Costs Members of the HCLC serve in a non -compensated, volunteer capacity. Administrative support is provided by Department of Community Development staff. The Committee meetings have been held in Miami City Hall Commission Chambers since June 2007. The Committee is not charged any fees to use this facility. Federal regulations governing CDBG and other HUD programs require that participating jurisdictions provide citizens with reasonable notice of, and an opportunity to comment on, amendments to the 2015-2020 Consolidated Plan. As such, HCLC meetings are required to be open to the public, and notice of the meetings must be adequately published. The DCED publishes notices of HCLC meetings in the Miami Herald. Publishing costs for FY-2015- 2016 totaled approximately $ 9,391.00. A professional transcriber hired from Kresse and Associates, LLC and Digital Depo Services attends the meetings and produces an official transcript for accurate record keeping purposes and, when requested, for public review with an approximately cost of $1,762.70. 8