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HomeMy WebLinkAboutPre-LegislationCity of Miami Legislation Resolution: R-19-0021 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 5219 Final Action Date: 1/10/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AMENDING THE CITY OF MIAMI'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S HOUSING PROGRAM POLICIES TO INCLUDE A RIGHT OF FIRST REFUSAL PROVISION AND A GENERAL UPDATE OF THE POLICIES TO REFLECT THE CHANGING HOUSING MARKET, AS FURTHER DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, due to substantial changes in the real estate market in the City of Miami ("City"), housing prices have outpaced the incomes of a majority of City residents; and WHEREAS, according to calculations performed by the Florida International University Metropolitan Center, based on the 2016 American Community Survey, the gap in the number of housing units ("Units") that are affordable to extremely low-income families is 13,195 Units and the gaps for very low-income families and low income families are 7,694 Units and 10,909 Units, respectively; and WHEREAS, according to data from the Shimberg Center for Housing Studies of the University of Florida, there are twenty-four (24) properties in the City containing more than 1,800 Units with the affordability period expiring in the next five (5) years; and WHEREAS, the City's Department of Housing and Community Development's Housing Program Policies ("Policies") are being amended to include a Right of First Refusal provision to preserve the affordability of Units, to provide additional incentives for small developers, and to bring the policies in line with current practices in the affordable housing industry; and WHEREAS, the City Administration recommends amending the Policies as further described in Exhibit "A," attached and incorporated; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The amendment of the Policies to include a Right of First Refusal provision and a general update of the policies to reflect the changing housing market, as further described in Exhibit "A," attached and incorporated, is authorized.' City of Miami Page 1 of 2 File ID: 5219 (Revision:) Printed On: 10/15/2021 File ID: 5219 Enactment Number: R-19-0021 Section 3. The City Manager is authorized' to negotiate and execute any and all necessary documents, in a form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, ity ttor 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 File ID: 5219 (Revision:) Printed on: 10/15/2021 EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable Homeownership Development Policy Program Description Provides construction and permanent financing to assist in part with the development of affordable single family units, townhomes, twin homes, and condominium units to be sold to, eligible individuals or families with incomes not to exceed 140% of Areal Median Income (AMI) Funding HOME, SHIP, CDBG, AHTF, GOB Funds may be used for land acquisition, development soft cost, financing costs, hard construction costs and may upon the completion of the construction of the unit, partially or entirely serve as a pass -through permanent loan to the eligible buyer of the completed unit. Repayment Requirements 1. Deferred Payment Loan: No debt service payments required. Homeowner must maintain occupancy as primary residence for a period of 30 years (affordability period). Failure to comply will result in the full repayment of principal and default interest rate. Sale or transfer of the units within the affordability period shall result in the full payment of the loan. Other restrictions or provision may be imposed. Loan will be forgiven upon the completion of the affordability period. 2. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 30 years, payable monthly until maturity at an interest rate not to exceed 3%, determined on the ability of the buyers payment capacity. Sale or transfer prior to the affordability period will result in the full repayment of principal plus interest. Other restrictions may be imposed. Minimum / Maximum Subsidy The maximum total amount of City of Miami financing shall not exceed $50,000 per unit Affordability Period Up to 30 years affordability period on homebuyer loan Security City construction funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, City Permanent/Pass through loan to the buyer shall be secured by a Mortgage, Note, and Restrictive Covenant. Funding Availability City funds shall be made available through a Request for Proposals (RFP) to include pre -determined requirements pertaining to the capacity of the development team, ability of the development to proceed in a timely manner, availability of all project funding, location of project, leveraging requirements, number of units, total city assistance per unit, types of units, energy efficiency, target income market addressed, etc. Projects will be selected on the basis of a point scoring system. Development Types Single family homes, attached townhomes, twin homes and condominium buildings. 1 EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Homeownership Policy — Buyer Resolution 11-0402 October 13, 2011 Homebuyer Policy - Buyers Proposed Guidelines Program Description To assist low income homebuyers in the purchase of a home by providing down payment, closing costs and/or second mortgage financial assistance for the purchase of a newly constructed or existing residential property within the City. Same as Resolution No. 11-0402 (No Change) Funding HOME, SHIP, CDBG, AHTF Same as Resolution No. 11-0402 (No Change) Repayment Requirements 1. In the case of transfer of the property, the borrower will be required to repay the original amount given as assistance. 2. In the case of sale or transfer of the unit the City will share in the gain realized by the borrower. a. 0 to 3 years — City receives 100% of the City's pro rata share of the gain generated b. 3 — 20 years — On the 3`1 year, City receives 85% of the City's pro rate share of the gain generated and borrower receives 15%. Thereafter, the borrower receives an additional 5% of the City's prorated share per year reducing the City's share by the same percentage until year 20. c. Year 20 and above: The borrower receives 100% of the gain The above gain sharing proposal will terminate in foreclosure; however, the city will require lenders to provide us a right of first refusal to purchase the loan at a negotiated price. 3. Forgivable loan after the affordability period of 30 years 4. In the case of a foreclosure the City will recapture any amount of net proceeds available from the sale of the property. Same as Resolution No. 11-0402 (No Change) 1 EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Homeownership Policy — Buyer Minimum / Maximum Subsidy $1,000 / Basic Subsidy based on Same as Resolution No. 11-0402 (No Change) the number of bedrooms as annually determined by HUD under Section 221(d) (3) and 234. (See below) Affordability Period 30 years Same as Resolution No. 11-0402 (No Change) Security Affordability period to be enforced by a restrictive covenant that will run with the land as well as a mortgage Affordability period to be enforced by a mortgage on the property and requirement of homestead exemption Development Fee N/A Same as Resolution No. 11-0402 (No Change) Minimum Down Payment $500 Same as Resolution No. 11-0402 (No Change) Minimum Ratio of City Funds to other Funds in the Project N/A Same as Resolution No. 11-0402 (No Change) Type of Assistance Down payment assistance and closing costs Same as Resolution No. 11-0402 (No Change) Maximum Purchase Price / Value of Property Maximum Purchase Price not to exceed 95% of median purchase price for the area as annually determined by HUD (See below) Same as Resolution No. 11-0402 (No Change) Subsidy Limits* Number of bedrooms 0 1 2 3 4 Basic Subsidy $48,328 $55,722 $67,202 $86,020 $95,830 Purchase Price / After -Rehabilitation Value Limits Effective April 1, 2018 2018 Miami -Dade County : 95% of Median Limits New - $276,000.00 Existing - $261,000.00 *This was based on the Basic Statutory Mortgage Limits established in 2008 2 EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable New Construction Rental Policy Program Description Provides construction and permanent financing to assist in part with the development of affordable multifamily rental projects containing units affordable to Extremely Low Income (ELI), Very Low Income (VLI), Low Income (LI) and Workforce development (WF) income levels individuals and families. Funding HOME, SHIP, CDBG, AHTF, GOB Repayment Requirements The following loan type and terms may be used: 1. Deferred Payment Loan: No debt service payments required. Property must maintain the required affordability structure for a period of 30 years. Failure to comply will result in the full repayment of principal and an agreed upon default interest rate. Full repayment of principal at the 30 year maturity. 2. Interest Only Loan: Interest only payments at up to 3% interest rate, payable monthly until maturity. All principal and interest due at maturity. Loan maturity can be set for a period up to 30 years. 3. Principal and Interest Amortizable Loans: Principal and Interest payments based on an amortization of 15 to 30 years, payable monthly at a rate of up to 3%, until maturity. Loan maturity can be set for a period of up to 30 years. Minimum / Maximum Subsidy The maximum total amount of City of Miami financing shall not exceed the lesser of $2M or 20% Loan to Cost (LTC) on projects containing 20 or more total units and the lesser of $1M or 40% LTC on projects containing less than 20 total units. Minimum subsidy shall be $1,000 per unit Affordability Period 30 years affordability period Funding Availability City funds shall be made available through a Request for Proposals (RFP) to include pre- determined requirements pertaining to the capacity of the development team, ability of the development to proceed in a timely manner, availability of all project funding, location of project, leveraging requirements, number of units, total city assistance per unit, types of units, energy efficiency, etc. Projects will be selected on the basis of a point scoring Security City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Covenant and Development Fee Up to 16% of total project costs, excluding land value and other operational reserves. Subject to change based on requirements of an RFP Development Types Multifamily rental apartment building(s) of 5 or more units, containing, units of various sizes, with or without common amenities. Project designs and specifications in compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. 1 EXHIBIT "A" City of Miami Department of Housing and Community Development Single Family Replacement Home Program Policy Resolution 06-0328 May 25, 2006 Single Family Replacement Home Program Proposed Guidelines Program Description Designed to address substandard and dilapidated housing units that the cost of repairs cannot be addressed through the Single Family Rehabilitation Program. It involves the demolition and reconstruction of a new 3 bedroom 2 bath house on the same lot. Same as Resolution No. 06-0328 (No Change) Funding SHIP and CDBG Same as Resolution No. 06-0328 (No Change) Type of Assistance Deferred payment 30 year loan used for reconstruction of home; 3%non-amortizing Deferred payment 30 year ea oloan used for home; 3� 0% reconstruction of non -amortizing Minimum / Maximum Subsidy $150,000 Same as Resolution No. 06-0328 (No Change) Affordability Period 30 years Same as Resolution No. 06-0328 (No Change) Eligible Property Single family owner occupied unit in the City of Miami with major structural defects that cannot be rehabilitated. The property must be free and clear of all liens and mortgages, except City of Miami municipal liens. Properties with first mortgages will qualify for replacement only if the first mortgage lender subordinates to the City. Same as Resolution No. 06-0328 (No Change) Security Affordability period to be enforced by a second mortgage on the property Affordability period to be enforced by a mortgage on the property and requirement of homestead exemption Repayment Requirements In the case of sale or transfer or if the property ceases to be occupied as the primary residence, the borrower will be required to repay the original amount given as assistance as well as any accrued interest. 1. In the case of sale or transfer or if the property ceases to be occupied as the primary residence, the borrower will be required to repay the original amount, given as assistance. 1 EXHIBIT "A" City of Miami Department of Housing and Community Development Single Family Replacement Home Program Policy 2. In the case of sale or transfer of the unit the City will share in the gain realized by the borrower. a. 0 to 10 years — City receives 100% of the City's of the gain generated less land value. b. 10 — 20 years — City receives 50% of the gain generated less land value . c. 20 to 30 years — City receives 25% of the gain less land value. 2 EXHIBIT "A" City of Miami Department of Housing and Community Development Affordable Rental Housing Preservation Policy Program Description Provides construction and permanent financing to assist in part with the rehabilitation/preservation of existing affordable multifamily rental projects. City assisted units will be required to provide 20% of the assisted units for Extremely Low Income (30% AMI), and 80% of the assisted units for Low Income (80% AMI) All unassisted units shall not be restricted. Funding HOME, SHIP, CDBG, AHTF, GOB Repayment Requirements 1. Deferred Payment Loan: No debt service payments required. Property must maintain the required affordability structure for a period of 30 years. Failure to comply will result in the full repayment of principal and an agreed upon default interest rate. Full repayment of principal at the 30 year maturity. 2. Interest Only Loan: Interest only payments at up to 3% interest rate, payable monthly until maturity or a pre -determined period. All principal and interest due at maturity. Loan maturity for a period up to 30 years Minimum / Maximum Subsidy The maximum total amount of City of Miami financing shall not exceed the lesser of $1M or 25% Loan to Cost (LTC) of rehabilitation, on projects containing 20 or more total units and the lesser of $1 or 50% LTC on projects containing less than 20 total units. Affordability Period Up to 30 years affordability period Security City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Covenant and Mortgage will include a Right of First Refusal Clause. Funding Availability City funds shall be made available on a first come first served basis, for eligible multifamily building in the City of Miami. City funding shall be secured and enforced by a Mortgage, Restrictive Covenant, Note, Disbursement Agreement, Regulatory Agreement, Rental Agreement, etc. Development Types Multifamily rental apartment building(s) of 5 or more units, containing units of various sizes, with or without common amenities. Project designs and specifications in compliance with City of Miami planning and zoning requirements. Building construction in compliance with City of Miami and Florida Building Codes. 1 EXHIBIT "A" City of Miami Department of Housing and Community Development Development Housing Program Summary Single Family Rehabilitation Program Policy Resolution 13-0448 November 21, 2013 Single Family Rehabilitation Proposed Guidelines Program Description To assist low income residents with all the repairs necessary to bring the house to a decent, safe and sanitary condition. Eligible trade areas to include plumbing, electrical, roofing and structural. Same as Resolution No. 13-0448 (No Change) Funding SHIP and CDBG Same as Resolution No. 13-0448 (No Change) Type of Assistance Deferred payment 10 year loan used for repairs to property; 3% non -amortizing Same as Resolution No. 13-0448 (No Change) Minimum / Maximum Subsidy $1,000 / $50,000 Possible Increase to Program Affordability Period 10 years Same as Resolution No. 13-0448 (No Change) Security Affordability period to be enforced by a second mortgage on the property Affordability period to be enforced by a mortgage on the property and requirement of homestead exemption Repayment Requirements In the case of sale or transfer or if the property ceases to be occupied as the primary residence, the borrower will be required to repay the original amount given as assistance as well as any accrued interest. Same as Resolution No. 13-0448 (No Change) Maximum Value of Property Property must not exceed the tax assessed market value of $300,000 Same as Resolution No. 13-0448 (No Change) 1 City of Miami Legislation Resolution: R-20-0046 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 7118 Final Action Date: 2/13/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AMENDING THE CITY OF MIAMI'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S SINGLE FAMILY REHABILITATION PROGRAM ("PROGRAM") POLICY IN ORDER TO CHANGE THE MAXIMUM VALUE OF THE PROPERTIES THAT ARE QUALIFIED TO BENEFIT FROM THE PROGRAM, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED, WHILE USING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AS WELL AS STATE HOUSING INITIATIVE PROGRAM FUNDS; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. SPONSOR(S): Commissioner Manolo Reyes WHEREAS, according to the Zillow Home Value Index, the average value of single family properties in the City of Miami ("City") is $367,249.00; and WHEREAS, this amount means that many of the homeowners in the City will not qualify for the City's Department of Housing and Community Development's ("Department") Single Family Rehabilitation Program ("Program") due to the Program's current maximum home value limitations; and WHEREAS, the Department has received numerous requests from low income homeowners whose properties fall outside of the current maximum home value limitations and who do not have sufficient income to obtain traditional financing to repair their homes; and WHEREAS, the City's Administration recommends amending the Department's Program policy, as more particularly described in Exhibit "A," attached and incorporated; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The amendment of the Department's Program policy in order to change the maximum value of the properties that are qualified to benefit from the Program, as further described in Exhibit "A," attached and incorporated, while using Community Development Block Grant funds and State Housing Initiative Program funds is authorized. City of Miami Page 1 of 2 File ID: 7118 (Revision:) Printed On: 10/15/2021 File ID: 7118 Enactment Number: R-20-0046 Section 3. The City Manager is authorized' to negotiate and execute any and all necessary documents, all in a form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. City of Miami Page 2 of 2 File ID: 7118 (Revision:) Printed on: 10/15/2021 EXHIBIT "A" City of Miami Department of Housing and Community Development Housing Program Summary Single Family Rehabilitation Program Resolution 19-0021 January 10, 2019 Single Family Rehabilitation Proposed Guidelines Program Description To assist low income residents with all the repairs necessary to bring the house to a decent, safe and sanitary condition. Eligible trade areas to include plumbing, electrical, roofing and structural. Same as Resolution No. 19-0021 (No Change) Funding SHIP and CDBG Same as Resolution No. 19-0021 (No Change) Type of Assistance Deferred payment 10 year loan used for repairs to property; 3 /o non -amortizing Same as Resolution No. 19-0021 (No Change) Minimum / Maximum Subsidy $1,000 / $50 000 Same as Resolution No. 19-0021 (No Change) Affordability Period 10 years Same as Resolution No. 19-0021 (No Change) Security Affordability period to be enforced by a mortgage on the property and requirement of homestead exemption Same as Resolution No. 19-0021 (No Change) Repayment Requirementsceases In the case of sale or transfer or if the property to be occupied as the primary residence, the borrower will be required to repay the original amount given as assistance as well as any accrued interest. Same as Resolution No. 19-0021 (No Change) Maximum Value of Property Property must not exceed the tax assessed market value of $300,000 SHIP; Not to exceed 90% of the median area purchase price established by the U.S. Treasury Department CDBG: Property must not exceed the tax assessed market value of $400,000 1