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HomeMy WebLinkAboutAttachment AATTACHMENT "A" City of Miami Multifamily Housing Rehabilitation Program Program Description The Multifamily Housing Rehabilitation Loan Program provides rehabilitation loans for the repair and/or replacement of building systems in order to improve living conditions and to preserve safe affordable housing for low and moderate income households. Eligible Buildings Residential multifamily rental buildings containg at least 5 units with a maximum of 20 units. Eligible Borrowers Individuals, Corporations, Limited Liability Companies, Partnerships, Not -for -Profit Corporations. Eligible Uses Rehabilitation uses include the repair and/or replacement of residential building systems to bring units into compliance with City of Miami and/or Florida building codes as well as compliance with HUD mandated Housing Quality Inspections standards (HQS). Funding Source Community Development Block Grant (CDBG) 24 CFR Part 570 Loan Amount Loan amounts will depend on the rehabilitation needs of the building, (based upon a City of Miami or acceptable licensed professional, scope of work), not to exceed $80,000 per building. Work completed must assure all units compliance with City of Miami, State of Florida building codes and HQS Standards Eligible Occupancy No less than 51% of current or future tenants in the building must have have total household incomes of no greater than 80% of the area median income as determined by the U.S. Department of Housing and Urban Development (HUD) as adjusted. Loan Terms * Maximum Loan Term (Affordability Period) of Ten (10) Years with a maximum loan of $80,000. * Loan will be forgiven at maturity, provided that Borrower has complied with the affordability restrictions of the Program. * Interest Rate: From 0% (Deferred Payment Loan) to 3% amortizable loan, based of the Projects financial ability including all existing debt to maintain the required debt service coverage ratio * Debt Service Ratio: Minimum Debt Service ration (D5R) of 1.25% if City funding only and 1.15% including existing third party debt. Maximum DSR of 1.65% * Equity Requirements: Based on total project cost of rehabilitation less the City maximum loan amount. Or an amount equal to the total rehabilitation cost less City assistance that would not exceed the maximum DSR on total debt.. Borrower equity to be in a form acceptable to the City of Miami. Loan Security A Mortgage, Note, Rent Regulatory Agreement and Restrictive Covenant shall be recorded against the property for the duration of the Affordability Period Rent Restrictions Properties assisted must maintain no less than 51% of all units available for tenants whose annual gross income does not exceed 80%of the area median income as determined by HUD, and rent levels for those units will not exceed the Fair Market Rents for the Miami Dade County area, as published by HUD,or comparable rental rates in the area, acceptable to the City, whichever is less. Regulatory Requirements * Compliance with the CDBG Program at 24 CFR Part 570 *All assisted projects must comply with Section 3 of the Housing and Urban Act of 1968 * Projects assisted containing 8 units or more shall comply with the Davis Bacon Act of 1931 _ * Projects should be in a position to complete the work without moving the existing tenants out. All units assisted must comply with HUD unit occupancy requirements. Necessary temporary or Permanent tenant relocation must be in conformance with the Uniform Relocation Act. 49 CFR Part 24 * Compliance with the Fair Housing Act.