HomeMy WebLinkAboutExhibit BAffordable New Construction Rentall Strategy
Program ,Summary
Program Description: Provides construction nd permanent financing to assist in part with the development of
affordable multifamily rental projec,ts (containing units affordable to Extremelly Low income (DA, Very Low Income MA
Low Income (IQ and Workforce development (WF) income levels individuals and families.,
aximum Award: The maximum total ,amount of City of Miami financing shall not (exceed the lesser of 5,1M or 2 Loan
to Cost (LTC) on projects containing 20 to 4,0 units and the lesser of SIM or 40% L,TC on projects containing less than .20
total units. And, for deveiopm(ents providing more than ,40 units,. the determination of the total .amount, of City of Miami
financing may be me e on per nit basis„ not to exceed .20% of the Loan to Cost (LTC) per unit.
City Funding Sources: City of lMiami General :Obligation Bond, Home investment Partnership Program iHOME),„ State
Housing P. rtnership !Program ((SHP), Community Development Block, Grant (CDBG)„, Afford bie !Housi g Trust Funds
(AHTF) ndi other ,sources of funding th. t may become av! iable to the City,.
City funding: Uses: !Funds may ,e!, !used for land acquisition, development soft cost, 'financing ,costs„ hard (construction costs,.
and permanent financing iipon construction COITIpletion.
City Funding Loans.rcenns: The following loan type and terms may be used:
1. .0E1erred !Payment Loon: No debt service payments: required. 1Property must m,aintain the required affordability
structure for a period of 30 years. Failure to comply will result in the it'll repayment of principal and an, agreed
upon def ult interest rate.. Full repayment of princi al at the 30 year m(aturity.
2. interest Only Loan: interest only payments at up to 3% interest rate, pyahIe monthly until maturity. All principal
and interest due at, maturity. Lo n maturity can be set for a period up to 30 years.,
l3.„Principai ond fnterest Amortizable Loons: Principal . nd Interest payments based on n amortization of 1,5 to 30,
yers„ pay,a le monthly at a rate of up to 3,%!, until turity. Loan maturity can be set for a period of up to 30
years.
City Funding Availability Process: City funds shall be made available through a Request for Proposals (REP), to include pre-
determined requirements pertaining to the capacity of the development tern„ of the development to proceed in
a timely manner, availability of all project funding, location of project, lieveraging requirements, number of units, total city
assistance per unit, types of nits„ energy efficiency, etc. Projects will be selected on the basis of a paint scoring system.
Crty funding shall be :secured and enforced by ,a Mortgage, !Restrictive Covenant, Note, isbursement Agreement
Regulatory Agreement, Rental Agreement etc.
Development Funding Leveragi g: Project funding °leveraging shall he the responsibility of the Owner and may include
funding from private banking institutions, State of Florida, Miami -Dade County, Private ,investiment etc.,
DevelopmentTy IM anfamily rental apartment buildingof 5 or more units, containing, units of various sizes,with or
without common amenities.„ Project designs and specifications in compliance with City of Mi&ni planning and zoning
requirements. Building construction inc ,,mpliance with, City of Miami and Honda Building Codes.
Develo ment Owners lip: Private fee simple or leaseh,old ,ownership through For -Profit or Not -For -Profit cor . rations
solely or through P. rtherships.
Compliance: The City of Miami's Department of Housing and Community Development sh II be responsible for the
contr ctualiregulatory compliance of all developments assisted. Annual c,om pliance monitoring shall be conducted by City
staff that will review project rent rolls, leases, tenant income files, financial statements, current operational licenses and
certificates, annual inspection of units, etc.
Loan Servicing: The City of Miami's Department of Housing and Community Development shall provide all loan servicing,
I.e. monthly billing arid collection, maintaining current property insurances, tracking delinquencies, providing all required
reporting, etc.