HomeMy WebLinkAboutExhibit A 5-11-17"Exhibit A"
City of Miami
RENTAL POLICY FOR SMALL DEVELOPERS
(UP TO 20 UNITS)
Program Description
Provide assistance to small developers for the construction or
rehabilitation of affordable housing projects.
Small Rental Development
A housing development comprised of no more than twenty (20) 20
units that is rented to members of the public that fulfill the income
requirements of households that make eighty percent (80%) of the
Area Median Income, as published annually by the United States
Department of Housing and Urban Development ("HUD") or less.
Funding
HOME, SHIP, CDBG, AFFORDABLE HOUSING TRUST FUND,
HOPWA or any other available source of funding
Affordability Period
• Rehabilitation or Acquisition of Existing Housing: 15
years from the date Project is fully leased to eligible
households.
• New Construction or Acquisition of New Housing: 20
years from the date Project is fully leased to eligible
households.
Minimum/ Maximum Subsidy
Range: $1,000 per unit to Maximum subsidy limit pursuant to 24
Code of Federal Regulations Part 92.250, as amended.
Security
• Recorded Mortgage on the property.
• Restrictive Covenant running with the land for the
affordability term.
In the case of phased developments, the mortgage and the
covenant will run with the land making up all assisted phases of
the development.
Additionally, in the case of a developer default, the restrictive
covenant will continue throughout the affordability period.
Default Penalties
In the event of a default under the terms of the Loan Agreement,
remedies include but not limited to the following:
• Acceleration of the total outstanding principal and interest.
Default interest shall be at the maximum rate allowed by law
and shall be calculated starting from the date of default
noticed to developer.
• Developer and all principals with a minimum of 10% share in
the development shall be barred from participating in any City
of Miami program for a minimum of five (5) years.
• The city shall require a pro-rata share of any Profit gained
from the sale of the project prior to completion.
Page 1 of 2
"Exhibit A"
City of Miami
RENTAL POLICY FOR SMALL DEVELOPERS
(UP TO 20 UNITS)
• Recorded covenant shall survive foreclosure. Covenant shall
be released only upon City approved sale of the property.
Developer Fees
Maximum of 16% of the total project cost. Disbursement based on
percentage of construction completion.
City of Miami Application fee
$1,000 for non -profits and $5,000 for for -profits. Refundable if
assistance is not provided.
City of Miami monitoring Fee
2% of loan amount or $25,000 whichever is higher to be deducted
from the loan proceeds
Minimum leverage ratio
Maximum of 50% loan to cost ratio. Cost to be determined by a
third -party engineer hired by the City and made part of the project
cost.
Maximum Rent
As published annually by HUD.
Type of Assistance
Construction soft costs, hard costs (pre -development)
Income
Household income must comply with the funding source being
provided for the project.
Miscellaneous
• City of Miami Residents must be given preference at time of
leasing, pursuant to City of Miami Ordinance 13645.
• The developer shall comply with City of Miami Ordinance
13491 reference Marketing and notification of the project.
• Selection from Request for Proposals and/or Applications.
Projects will be selected based on ranking and merits of the
application and conforming with City funding priorities.
• Annual Compliance monitoring for duration of affordability
period.
Approval
Pursuant to Section 2-1302 of the City Code, City of Miami Housing
and Commercial Loan Committee ("HCLC") is designated the
authority to approve or disapprove any funding request.
Page 2 of 2