HomeMy WebLinkAboutHousing and Commercial Loan CommitteeCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
To: Arthur Noriega
City Manager
FROM: George Mensah, Director
Dept. of Housing & Community Development
DATE: January 15, 2021
FILE:
SUBJECT: 2020 Annual Report for Housing & Commerical
Loan Committee Member
REFERENCES:
ENCLOSURES:
Per City Code Sec. 2-890, please find attached the 2020 Annual Report for Housing and Commercial Loan
Committee.
GM/pr
CITY OF MIAMI
HOUSING & COMMERCIAL
LOAN COMMITTEE
("HCLC")
FY 2019-2020
ANNUAL REPORT
Department of Housing and Community Development
HOUSING AND COMMERCIAL LOAN COMMITTEE
ANNUAL REPORT
FISCAL YEAR 2019-2020
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"), Miami Forever Bond Funds
(GOB), 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
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• Two members from the city administration nominated by the city manager and
appointed by the city commission. One of these two members shall actively serve
on the City's Planning Department.
Committee Members:
Bill Rammos — Chairperson
Rammos Holdco, Inc.
Kevin L. Deeb
Deeb Law Firm, P.A.
Ben Fernandez
Bescon Radell & Fernandez
James Angleton
AEGIS FinSery Corp
Stephen Johnson
Lydecker / Diaz
Allan J. Hall
Retired
Gregory Gay
City of Opa-Locka
Nancy Gaggino
For -profit for Affordable Housing
Erica Paschal
City of Miami Administration
Joseph Eisenberg
City of Miami Administration
Pierre Rutledge
Represents Essential Services Personnel
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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 Housing and Community 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 Housing and Community
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
them.
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The following tables show a summary of the significant actions taken by the HCLC in FY
2019-2020.
Activity
Project(s)
Approved Funding Allocations
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Approved De -Obligation of Funds
1
Approved Time Extensions
2
Modification of Repayment Terms
2
Loan Structure
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Modified Units Sales Terms and Prices
0
In FY 2019-2020, the HCLC approved funding allocations totaling $7,319,000.00. This
amount reflects funding for new projects as well as increases in previously approved funds.
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Current Community Needs
Community needs are ascertained through neighborhood public hearings 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-Use/Income Redevelopment
In approving staff recommended projects, the HCLC seeks to implement the Consolidated
Plan's housing policies 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.
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Major Accomplishments
A number of projects approved by the HCLC in previous/current fiscal years are still under
construction in FY 2019-2020. These projects total 274 housing units, rental, and
ownership, pending completion, with direct funding totaling $7,319,000.00.
Developer Agency
Project
Source
funding Amount
City units
Rental 'home ownership
Vineyard Villas, LLC
Vineyard Villas
GOB
$1,871,000.00
75
Rental
Platform 3750, LLC
Platform 3750 at frankie Shannon Rolle Center
GOB
$1,948,000.00
79
Rental
The Village Miami Phase II, LLC
The Village Apartments Phase II
GOB
$3,500,000.00120
Rental
Comparable Boards
There are no other boards, public or private, that would better serve the function of the
HCLC.
The Committee was created in response to a U.S. Department of Housing and Urban
Development Inspector General's report citing concerns with the City of Miami's loan
underwriting procedures. Over the past decade, the HCLC has evolved according to the
City's increased commitment to the community and affordable housing development. The
HCLC is the only Committee empowered by the City of Miami to approve or disapprove
certain housing and commercial loans funded by federal and local funds such as CDBG,
HOME, HOPWA, and State of Florida SHIP funds. Furthermore, the HCLC is the only
Committee empowered to review previously approved projects, set and amend project
timelines, and de -obligate under- or non -performing projects. The authority vested in the
Committee sets it apart from community organizations and advisory boards that serve
strictly advisory positions.
Another unique feature of the HCLC is its dual purpose. Because the HCLC administers
SHIP funds, it also serves as the Affordable Housing Advisory Committee mandated by F.
S. 420.9076.
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Committee Costs
Members of the HCLC serve in a non -compensated, volunteer capacity. Administrative
support is provided by the Department of Housing & 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 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 a notice of the meetings must be adequately published. The HCD
publishes notices of HCLC meetings in The Miami Herald. Publishing costs for FY2019-
2020 totaled approximately $ 3264.00.
Official transcriptions from Lingua Franca Translations, LLC is produced for accurate record -
keeping purposes and, when requested, for public review with an approximate cost of
$1,500.00.
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