HomeMy WebLinkAboutExhibit A 4-27-17"Exhibit A"
City of Miami
Department of Community Economic
Development
Housing Program Summary
RENTAL POLICY -DEVELOPERS
Program Description
Provides assistance to developers for the construction or
rehabilitation of affordable rental units that are NOT Tax Credit
Development
Funding
HOME, SHIP, CDBG, AFFORDABLE HOUSING TRUST, HOPWA
Affordability Period
Rehabilitation or Acquisition of Existing Housing- 15 years;
New Construction or Acquisition of New -Housing 20 years
Minimum/Maximum Subsidy
$1,000 per unit to HUD Maximum subsidy cap as published based
on bedroom size
Security
Recorded mortgage on the property. In addition, affordability period
to be enforced by a restrictive covenant that will run with the land.
In the case of phased developments, the covenant will run with the
land making up all phases of the development. In the case of a
developer default, the restrictive covenant will continue throughout
the affordability period.
Default Penalties
1. Full payment of f the construction loan (total disbursed amount)
and accrued default interest at the maximum rate allowed by law
depending on loan amount.
2. Developer and all principals with a minimum of 10% share in the
development will be barred from participating in any City of Miami
program for a minimum of five (5) years.
3. If the City assistance is used for land acquisition (or any
predevelopment activity) profit realized from the sale of the land will
be considered program income and will revert to the City.
4. Recorded covenant will only be removed upon sale of the property
if approved by the City of Miami Commission.
Developer Fees
Maximum of 16% of the total project cost. Disbursement based on
percentage of construction completion.
City of Miami Service Charge
1°43 of City Loan up to a maximum of $15,000 will be charge to the
developer as a commitment fee.
Minimum ratio of City funds to
other funds in the project
1:2 Desirable on a project by project basis.
Maximum Rent
As published by US HUD
"Exhibit A"
City of Miami
Department of Community Economic
Development
Housing Program Summary
RENTAL POLICY -DEVELOPERS
Program Income
Gross income received by the project directly generated from the use
of funds. When program income is generated by housing, the income
shall be prorated to reflect the percentage of funds used.
Type of Assistance
Construction soft costs, hard costs (predevelopment)
Income
Household income must comply with the funding source being
provided for the project.
.
Miscellaneous
1. City of Miami Residents must be given priority at time of leasing
complying with City of Miami Ordinance 13645.
2. The developer will comply with City of Miami Ordinance 13491
reference Marketing and notification of the project.
3. Selection from Request for Proposals and/or Applications. Projects
will be selected based on ranking and merits of the application.
4. Annual Compliance monitoring for duration of affordability period.
Appeal Process
All project funding must obtain approval by the Housing and
Commercial Loan Committee as to the terms and conditions.
Appeal Process
A project presented to the Housing and Commercial Loan Committee
(HCLC)can appealed to the City Commission as to the terms and
conditions imposed by the HCLC. In an appeal process the City
Commission will make the final determination.
Effective Date
Any project that meets this housing policy and have received
Certificate of Occupancy (CO) in the past 5 years will be eligible to
renegotiate the City of Miami contract.