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HomeMy WebLinkAboutM-78-0348• I + N AM .•: tea ='� , n, •1 ......� 1626 COURTHOUSE MIAMI, FLORIDA 33130 TEL: 599-5151 Mr. Richard Fosmoen c/o City of Miami 3500 Panamerican Dr. Miami , Florida 33133 Re: Bond Validation Timetable Dear Mr. Fosmoen: i l i l )!1 J i. 1u F►4 I 00 .A LAW DEPARTMENT OFFICE OF CO')NTY ATTORNEY t1dy 17, 1978 At our last meeting you requested from us a time table with respect to the legal proceedings involved in the Bond Validation. It is as follows: 1. Once the New York Bond Counsel h.is prepared the complaint, and it has been filed with the Circuit Court, it will Lake approximately thirty (30) days until we have a final order which is appealable. 2. We estimate that iL will take approximately thirty (30) to pre- pare the appeal for the Florida Supreme Court and, once this appeal has been filed it will Lake an additional two months to obtain a final order. 3. Although Lhe sale of the bonds is beyond our control, we estimate that this phase will take approximately one month. I hope this brief outline will give you a time frame with which to work, and of course if I can be of any further assistance to you , please do not hesitate to call me. RJW: lb Sincerely, gic)-10-icitf Richard Jay Weiss, Assistant County Attorney 20v4 .- , s r MEW 0mmMEEK MaMM OMEN MEI arra mmom SWIM ME .J r. Joseph R. Grassie City Manager Richard L. Vosmoen,\ Assistant City Manager May 8, 1978 Housing Bond Issue- Revalidation Process City Commission Agenda May 19, 1978 On March 9, 1976, the City of Miami residents passed a $25,000,000 Housing Bond Issue to provide housing in the City of Miami for families and persons of low and moderate income, by using the proceeds of the bonds to assist Dade County in financing such housing in the City of Miami or to increase the security of any Dade County obligations issued for such housing in the City of Miami. Since the passing of the Bond Issue, the $25 million Housing bonds have been validated in the Circuit Court specifically for the purpose of pro- viding collateral for the sale of Dade County revenue bonds for the construc- tion of new Section 8 housing by Little HUD. Since the bond validation took place on February 17, 1977,$2.5 million in City bonds has been authorized to be sold to provide collateral for the financing of 499 new units of Section 8 housing by Dade County. The $22.5 million left from the bond issue has yet to be programmed. While the use of City Housing Bonds has and will continue to produce new multi -family Section 8 units in the City, such an application is contingent upon receipt of Sec -',:ion 8 allocations from the Federal Government and the availability of vacant land which meets the site selection criteria for such programs. Use of the Housing bonds in this manner provides only for the con- struction of new multi -family structures and does not address the problems of single family homeownership or rehabilitation of existing single and multi- family dwelling units; both integral parts of the City's housing strategy. It is hereby requested that the Administration be authorized to initiate bond revalidation proceedings to broaden the use of the Housing Bond Issue to include the following: 1. Single family rehabilitation loans - Loans will be offered to City residents at an interest rate based on the cost of interest to the City as determined by its bond sales, or lower if necessary. The property owner must be a City resident and the property in question must be in need of rehabilitation in order to meet program objectives of preserving neighborhoods and providing decent, safe and sanitary housing fow low and moderate income persons. The applicant must meet low and moderate income requirements (families earning less than 80% of the County median income). n Joseph R. Grassie, ..ty Manager May 80 1978 Page 2 A program of this nature Will not only provide better lifting Conditions for people who would not normally be able to afford rehabilitation, but will free up Community Development funds currently programmed for rehabilitation for other uses. Additionally, funds loaned under this program would be returned to the City over a 20 year repayment period. (see Attachment A for a description of a program of this nature). 2. MUlti-family rehabilitation loans - Loans will be offered to owners of multi -family buildings at a below market interest rate; based on the cost of interest to the City as determined by its bond sales. The property in question must be in need of rehabilitation in order to meet program objectives of preserving neighborhoods and providing decent, safe and sanitary housing for low and moderate income persons. The program will be geared to owner -occupants and investor -owners who agree to serve low and moderate income residents by entering into the Section 8 Housing Assistance Program or who agree to regulate rents. All work done under this program must meet local standards for the rehabilitation of multi -unit properties. There is no program in existence currently which provides for the re- habilitation of multi -unit structures. Such a program would not only result in the physical upgrading of structures but would support on -going redevelopment efforts being conducted by the City, particularly in Culmer, Little Havana, Coconut Grove, and ?Model Cities. Again, funds loaned under this program would be returned to the City over a 20 year repayment period. (see Attachment B for the preliminary program description). 3. Financing for second mortgage housing - Funds would be made available for second mortgage financing for the homeownership of new single family dwelling units in the same manner in which the City's Urban Development Action Grant funds are programmed to be used (see Attachment C). 4. Funds for land acquisition and associated costs (relocation and demo- lition) - Housing bond funds will be used to acquire slum and blighted property to be used for the provision of new ]ow and moderate income housing. The City will then either sell or lease the land to'a private developer, a not -for -profit developer, a community based development corporation, or Little HUD for the purpose of constructing and managing housing for low and moderate income persons. Attachment rn .,�rrL l."•L :)ai DY ;YID rJ:DEL:%2S F O CITYOF Mi • RES;JE ^ HA3tLI ATI `t LOAft PR0 11A,1 i i.�,.dI rr,..,.�"i r�L r.Ec.,;:., �, n • The Ci tv of and ►1?tro-:el i tan 'l.'ie County ha ;ram er t.ernd arl an eerl 3. my Cit.,' of !l �,r1 o v �ethe recez a-y fura.. r �_nr ai�er_ _ the Ci ,•�ia.�i 1 nr��i•.�_ __s_ .r,,., f10 a Y.e t.e,ilitaticn loch Nn.r47:nd Dade C:;nt y HUD ri 1 splerer_ the 7ro:3ram within areas selected by the City. The fo i l ewi n^ policies and guidlines shall govern t:ie program. Definition a, C. D. Target Areas: Areas of the City of Miami which have been designated as "Community Development Areas." b. Imoact Areas: Areas administratively designated as ",eighborhoo:: Strata Areas(NS,1r) where rehabilitation efforts will be focused for a period of time. NSA's are generally sub -areas of a C.D. target area. c. Very Low Income Family: A family whose gross income from all sou :es does not exceed 50 percent of the median income for the Dade County area, as determined by the federal government, with adjustments for smaller or larger families. At present, these income limits are as follows: Family Size Gross Annual Income 1 2 3 4 5 6 7 8 or more S 5,650 6,500 7,300 8,100 8,750 9,400 10,050 10,700 These limits shall be adjusted automatically whenever the federal government periodically redetermines the median income limits. d. Section 221(d)3 Income Limits: Those income limits, established by the federal government, which qualify an individual or family for occupancy or projects financed with below -market interest rate mortgages insured under Section 221(d)3 of the National Housing Act, At present, those limits are as follows: Family Size 1 L' 3 4 5 6. 7 3 or „ore Gross. Annual ,.tncoT.. 5 10,753 12,300 13,350 15,400 16"U 17,300 l?,250 limits snail be adjusted automatically whenever the feeeral noyernment 'periodically redeter,rines the median income of Dade County. e. 'piddle -Income Fa-rilies: A family whose gross income is between the Section 221(d)3 income limits and 121; of the areas present median income. These limits shall be adjusted automatically whenever the federal government periodically redetermines the median income of Dade County. f. Deferred Parent Loan: A non -interest bearing rehabilitation loan requiring no monthly payments. It shall be repaid at such time as the property is sold or otherwise transferred to another person, except a surviving spouse. III General Policy Community Development legislation encourages the concentration of reha- bilitation efforts within C.D. areas(impact areas) while also providing for soot rehabilitation outside of C. D. areas. Unregulated implementa- tion of this policy could result in little or no impact. In order to achieve the objectives of the City's Community Development program, the following policy shall apply: a. Rehabilitation loans financed with City of Miami Community Development Block Grant funds shall be limited to desig- nated Impact Areas(NSA's). b. Up to 20% of total funds available for rehabilitation ►within Impact Areas may be used for loar to middle - income, owner -occupants. 111111111111111191111Iliommmgm11111UI111 c, 1osns financed with Section 312 funds shall be limited to C. D. target areas hut concentrated in the im act Areas to the ,grcateSt extent hossible4 d, The rehabilitation of multi -unit. investor -owned prounrties shall be limited to Impact amps and will be financed with Section 312 funds that may become available for this :purpose. IV Elinjbilitv 1, The property Must be in need of rehabilitation in order to meet program objectives of eliminating blight and pre- serving neichborhoods. 2. The applicant must be an individual or family who owns and occupies a one or two dwelling residential property or is the purchaser -occupant of such a property under a land safes contract. 3. The applicant's income must be within the Section 221(d)3 income limits as established by the federal government unless waived in accordance with provisions dealing with middle - income families. V Maximum Amount of Loan The maximum rehabilitation loan shall be the least of amounts determined through the application of the three following limitations: a. $17,400 per dwelling unit; b. The actual cost of rehabilitation plus cost of refinancing, if eligible; c. That amount which, when added to any outstanding indebtedness secured by the property, creates a total outstanding indebtedness which does not exceed 90% of the sum of the as -is value of the property plus the estima- ted rehabilitation cost. VI Cost Includable in A Rehabilitation Loan a. A rehabilitation loan may include the actual cost of rehabili- tation and related expenses necessary to make the property conform to the approved Property Rehabilitation Standards(PRS). bi When analicable, a rehabilitation loan may also include additional funds for the refihancini of all or a.portion of the existinn indebtedness secured by the orooerty ill order .tc reduce the a5licant' s monthly payments fOr bri nc i na , interest, taxes, and ints)rence to an amount which is equal to 2.`._ of his iros3 renthiy income. c. In those cases '.There refinancin,^ is applicable, the actual cost of rehabilitation to be financed t'lith loan `unds shall be equal to at least 2K of the total loan, VII Terms and Conditions a. A rehabilitation loan shall bear interest at the rate of three oercent(3) per annum or the principal outstandinc ?t any time. b. The repayment terms for a rehabilitation loan may vary up to a maximum of 20 years or three -fourths of the remaining economic life whichever is less, depending on the apolicant's income. The terms shall be set(to the extent possible) so as to produce monthly payments for principal, interest at three percent(.) tars and insurance Yihi h, when added to existing payments for principal and interest on any out- standing indebtedness secured by the property, are equal to 20°: of the applicant's gross monthly income. c. All rehabilitation loans shall be secured by a mortgage or similar security instrument. A subordinate lien is accept- able if it provides adequate security. d. Any mortgage used as security for a rehabilitation loan may not be transferred or assigned to another person w•without prior approval by the City. VIII Deferred Payment Loans An applicant who meets all other eligibility criteria for a rehabilitation loan may also be eligible for the deferment of the monthly payments on all or a portion of the loan, The amount of the deferred payment portion of the loan shall be the least of the following: _5_ a, 510,000; or be That portion of a rhabilitatioh loan wnich cannot be paid for with any available loan that can be amortized as part of tneir montniy housing expense for principal, interest, taxes, and insurance without requiring that expanse tt a'xceec Li_ of their gross monthly income, e. IX Renaoilitation Loans for the Correction of Hazardous Conditions A rehabilitation loan may be mate to an eligible applicant for limited repairs to correct only hazardous or potentially hazardous condtions; which,if not corrected.may endanger the health and safety of the occupants. A. Eligibility- 1. The applicant's income must be within those limits established for "very low income families" and it must be evident .that the applicant has such limited assets that the repair of the property could not be accomplished without public assistance. 2. The hazardous conditions must be documented by an official emergency repair order issued by an appropriate code enforcement official. 3. It must be evident that it is not feasible to rehabilitate the property to normal property rehabilitation standards. 4. The assessed value of the property as determined by the Dade County Property Appraiser shall not exceed S30,000. B. Maximum Amount of Loan - The maximum rehabilitation loan to correct hazardous conditions shall not exceed the lesser of the following: 1. The actual cost of the repairs necessary to correct or remove the hazardous conditions; or $5,000. X Special Assistance for Middle=Income Families In order to encourace middle -income families, residing in impact areas to participate in the revitalization of their neighborhoods, rehabiliy tation loans shall be made available on the following basis: a. For a middle_income owner -occupant, not re:.uiring refinancing of 2n existing nortgar.e, a rehabilitation loan may be rade in the amount necessary to reduce the effective interest rate to 3= on a privately financed property improvement loan. (Example, if the total cost of rehabilitation is $10,000 and the applicant is able to obtain a ten year loan at 12% interest, an effective 3t interest rate would recuire payments of 597.00 per month. Payments of 597.00 per month will amortize at 56,700 loan at 12% interest in ten years. A rehabilitation loan in the amount of 53,300 would be made to finance the balance of the repair work. Payments on the 53,300 rehabilita- tion loan would not commence until the bank loan is paid off.) For a middle income owner -occupant who needs to refinance an existing mortgage in order for rehabilitation of his property to5` i a y feasible, a rehabilitation loan may be economically ,i„ made to finance that portion of the total cost of rehabilitation and refinancing in excess of the families'ability to pay for private financing(Example, if the applicants'inco;e will support only a 515,000 first mortgage, and the total amount needed was 520,000 including 510,000 for rehabilitation work and 510,000 for refinancing, a 55,000 rehabilitation loan, with payments deferred, could be made to complete the financing.) b. XI Loan Processing and Approval All rehabilitation loans will be processed by the staff of the Dade County Department of Housing and Urban Development. A11 loans shall be reviewed and approved or disapproved by the Director or his designee, The Director may waive payments of principal and interest for a period of up to one year at a time if he determines that such action is necessary to avoid severe financial hardship for a rehabilitation loan recipient, XIII Proc3duras Incbrr 3ted by Pef r:nro Technical and administrative procedures and requirements for broj cessing rehabilitation loans not specifically addressed in these guidelines shall conform to those established by Metropolitan Dade County foe the implementation of its Housing Rehabilitation Lcan program and/or those set forth in the Rehabilitation i nano inn_Handboo►_ 7375,1 as revised, published by the U.S. Deoar't= ment of Housing and Urban Development and used as guidelines for Prccessing Section 312 funded rehabilitation loans. MIMS MEE ms Wow— MIrk MOW NEk Tog M dULTi-'.:NET PEHABILITATION LOAN PPOGRAM A. ObiectiVes 1: The program is intended `. o enCourage the rehabilitation oC i.neestet- owned multi -unit residential properties containing dwellings occupied by low and moderate income families by making below market interest rate loans available to the owners of such properties. ?. In order to assure that low and moderate income families derive the maximum benefit from this program, loan applications •.wi11 be considered only from the owners of properties who intend to enter into a Housing Assistance Payment Contract with the U.S. Depart- ment of Housing and t:rban Development, or its designee, under Sec- tion 8 of the Housing Act of 1974, or from owners who will agree to regulate rents. B. General Guidelines 1. Eligibility a. The property to be rehabilitated must be located in the City of Miami. b. The rehabilitation proposal must meet all local standards for the rehabilitation of multi -unit properties. c. Final approval of the loan will be contingent upon HUD's acceptance of the owner's Final Proposal and his execution of an agreement to 'enter into a Housing Assistance Payment Contract with the U.S. Department of Housing and Urban Development, or the City's acceptance of an acceptable rent schedule. d. The City of Miami must be satisfied that the value of the property and/or any assignment of the Agreement or Contract will provide adequate security for the property in accordance with the terms of the note. 2. Costs Includable in a Rehabilitation Loan a, The loan may include the actual cost of all rehabilitation work and related expenses required or accepted by the U.S. Department of housings and Urban Development. b. The loan may include an amount to refinance any or All existing indebtedness secured by the property provided such refinancing does not exceed 20% of the actual rehabilitation work and re- lated expenses. Such refinancing will only be considered if necessary for approval of the rehabilitation proposal and if conventional financing from the private market is not available or feasible. c. The loan may include an amount for general property Improve- ments subject to the approval of the City of Miami, not to exceed 20% of the cost of the required rehabilitation work and related expenses. 3. Terms •and Conditions a. The loan shall bear interest at a rate equal to City of Miami's borrowing rate as established by the most recent sale of its Housing Bonds with the rate rounded up to the next highest 1/4 of 1% plus an additional 1/2 of 1% for administrative costs. The interest rate shall be determined at the time of the owner's submission of a preliminary proposal and shall be guaranteed at the rate for a period not to exceed six months. b. The repayment period of the loan shall be maximum of 20 years or the term of the Housing Assistance Payment Contract whichever is less. c. A11 loans will be secured by a duly recorded mortgage or similar security instrument. A subordinate lien may be acceptable if it provides adequate security. d. The City shall have the right to demand payment in full if the owner fails to enter a Housing Assistance Payment Contract or fails to renew such contract with the U.S. Department of Housing and Urban Development or at any other time the contract is declared void by U.S. HUD regardless of reason, or fails to abide by a regulatory agreement concerning use of the property. 4. Loan Processing and Approval a. Loan processing will be accomplished by the Dade County / PAie 3 Department of T Ouaing and Urban Development staff in coordi= nation with the owner, the City and, if applicable, the U.S. fJ ,partm. nt of Housing and Urban Development. b. Phu Uire 'tor of the Dada County Department of Housing and Urban Development shall have authority for final approval of all loan applications. 5. Loan Servicing a: All loans will be serviced by a private firm specializing in accounts servicing. The cost of loan servicing shall be deducted from the interest paid. 6. Other Responsibilites of the Dade County Department of HIousing and Urban Development a. The Dade County Department of Housing and Urban Development shall review all rehabilitation proposals including plans, specifications, cost estimates and hid proposals to determine their conformance with local standards, practices and program objectives. b. The Dade County Department of Housing and Urban Development shall monitor the rehabilitation work while in progress to assure its satisfactory completion. c. If requested by U.S. HUD, DCHUD will administer the Housing Assistance Payments Contract to ensure faithful performance by the property owner of all terms and provisions of the Contract. d. Dade County HUD will administer the regulatory agreement with the owner, on behalf of the City of Miami. Attachment C The Urban Develoiment Action,Grant funds, will be une4 to « --lnd .ind improve :'e Met_ Dade County s Homeownership Assistance Loan Program,in operation since 1r)74, The program provides homeownership opportunities ities for ,'io.i rate income families and in ,u,.111t encourages spatial deconcentration and replaces slum and blighted conditions with _:•._ housing in Comprehensive Heiahborhood Revitalization Areas, therebyhcliing to 'these neighborhoods. The Homeownership Assistance I.oc"Sn, Fro -ram enables eligible families to _ rchas_ ..:... _:;, Using a combination of private financing and public assistance. The basic features of the program will be .as follows:. 1. The home buyer finances the purchase of the housing with two 1;:ort::agcs. The first mortgage has a minimum term of 20 ;:ears and is provided by a private financial institution. The second mortgage is held by the City of Miami. 2. Payments o;: both : rincii;al and interest on the second mortgage may be deferred until the first mortgage isA2aid off. 3. The family must nay a minimum of 2n of its adjusted income, but not ore than 3O , for principal, interest, taxes and insurance. 4. If the f a.-nily ' s income increases so that its r..onthl, payr,.ents for prin- cipal, interest, taxes and insurance drop:, below 20 of its adjuntcd income., then it would be required to begin payments on the second mortgage.t^ '--' extent that the total payment again equals :0%. 5. The maximum second mortgage is 551 of the purchase price on a bedroom unit, and 65; of the purchase price on a 4-bedroom unit. 6. In all cases, the buyer must pay a minimum of 54 of the purchase :rice as a do::n_ a ment, plus any prepayments and closing costs. 7. Interest on the second mortgage is co: -pounded only during the first =_:e 4 years of the loan starting at 5% and reducing to 1 in the fifthyear - vex_ and then interest accumulation stops. This procedure dure minimises windfall profits to buyers in the earls .:ears, .'et encourages long ter:-: residency because of the 1cA: interest accumulation and a faster eauity build up. 6. Extensive pre and post purchase counselling is provided to include credit res: onsib' lity, ownership responsibility and ;maintenance assistance. This counseling is provided by the Urban League'League's Hcusin0 O"' rtunit Center contract with the C. D. Program. The program is unique in several respects. The e eccnd mortgages are loans, ar.,'. will be re:.. -:id by the buyers.is provided through the interest rate and the _ The assistance � ? ,c; r deferred payments. Bow BB MW MW MIER Secondly, it does hot commit future tax dollars. The a: istance is provided all at one time, at the time of closing on the unit. Third, it provides, in addition to spatial deconcentration, economic integration because of the flexibility Of the :nortoage amounts, The requirement that at least 20:, of income must be paid aS a mottcragc payment, as a substitution :or maximum inr_ote limits, j etmits families in the higher income ranges to purchase homes with reduced second mortgages, and since the Government is providing only a mortgage commitment to the develo:'er as opposed to actually financing the hone, It is possible for homes developed under the _prccr3:n to be sold to buyers who do not heed a second mortgage, thus, creating even broader economic diversity, This flexibility is well demonstrated in the current program, Fourth, the heavy reliance on private enterprise drastically reduces the need for •;rjv' rn- ment administrative overhead. Credit Checks and underwriting ccnsidera`_icns are made by private lending_ institutions, real estate closing consideration:, are made by private legal organizations, and building is done by private builders, Local Government's primary f::ncti is to develop standards and review activities for compliance with the standards. Fifth, the program provides _mnloyrnent crportunities in the construction field, Because of the small size of most of the projects, :minorities and neighborhood residents wii.l bene- fit from most of these opportunities. In the present County rro_ram, five Of the six exlat ln^ developers are minority firms, An expanded program with Action s7rant funds will continue to generate similar results. Some new ideas will be added to the existing program if it is expanded with Action Grant funds. 1. Energy conservation - in order to conserve energy and substantially reduce utility costs for the owner, each home will have solar water heating 2. Home owners warranties - builders will be required to provide lcng term warranties on the homes, so that unanticipated failures in the structural and mechanical comnenents cf the home will not wipe cut a buyer. 3. Maintenance escrow accounts - an escrow account, at interest, will be es- tablished to assist the buyer with future maintenance expenses. Payments to this account, which will be over and above the minimum 20% payment, will begin at $10 per month in the first year, increasing to S30 in the fifth year. At this time, the account would contain $1,200 plus interest, and the payments to the account could stop. The $5 million grant will provide 275 units, and of these, 75 will be developed on land that has been or is being acquired with C. D. funds. This land would be put cut for bid with a fixed land price and a fixed total sales price. Copies of the bid documents are attached as Exhibit V. Proposals will be reviewed for housing quality including sine and amenities, and the selected developer will be given a commitment for second Mort_^.ages on each unit. It would be his responsibility to obtain both construction financin; and the remaining permanent financing, i.e. the first mortgage, and then to initiate construction and sales. The City's role would be to review and approve all development plans and each buyer to determine eligibility under the second mortgage program. The remaining 200 units will be de'.'elcred in non -impacted neighborhood: throughout _,:c City of Miami. Developers will be invited to submit housing development pro:,rans on land that they either own or can acquire. Those selected would be provided with second mort- gage commitments and would proceed to obtain financing, and build and sell as sI:e11.d out in the documents attached as Exhibit VI. Developers would be required to :meet design and performance criteria and buyers would be approved by the City. MEn MEP NW MW MEE MEEM mmim BEE aMk maim SEE MEE saw musam ww Mgf ear Sig EAM Et Pare 3 Individual lot ownersi either in or out of the C. D. areas could also ar:;ly tot a second mortgage conmitmento if the house is to l:e used for owner occupancy, They would also be governed by design and performance objectives and an overall price li- mitation, Documents to be used to control of f erin.:.s to these indi'tidual owners ate attached as ..:hibit VII. Construction inspection, OVor and above nornal p:'r:nit insclections ::i11 be , ro' ided to insure that the quality of the units meets the :standards set in thl bid doctiment:3. .he design standards to be used in all the bid docu:vent:, are enclosed as Exhibit IIi. The Mayor of Miami intends to :'lake special efforts to encourage intercSt from develor._rs t; than . ti part a � ' interest. !jai' will - O..:ier those who a5 a of this application have 1.'.'i��a�C� ire meen leaders in the home building industry arv1 with leaders in the Community Oevel':::-.c:nt Target Areas to explain the program and e?Ilcour age participation. This program does have leveraging capacity, , As a result of the program, tha private sector will i"" investing in excess.of $5,O0O,COO as first mor`:ages which probable would not have occurred in the City of Miami without public support. Local Government, using Community Development funds will be adding approximately $ OO,'000 through direct costs such as site improvements (which reduces the .:ales prices on the units) and indirect ccst., of administration and counseling. The Count', will be providing ,.53O, :)'1 of its o :ra`-in c budget for the Second Mortgage Program to produce another 3) homes within the City of "..a.:.+. itddition a1 .y, approximately S1.5 million in local Community :ie'.•e10_,:1ent funds .:ill be used to acquire land in Community D : e1C.-?ent target areas for this program. . Action Grant dollar spent, 1.6 dollars from private and local sources ..ill be S^.e nt. Development of these units in Comprehensive Neighborhood -evi talir ation Areas .:ill be supsorted by local and Community Develonment funded street imnrove:'ents, tree planting and in most cases simultaneous reinvestment in the existing housing stock through Commu- nity t, Development loans to property ert: owners. Further, ther, a City -'.ti ids? building demolition program will remove dilapidated structures which have a negative effect on neighborhoods. Open Space de': e10: ment and :ark improvements are a ;art of the City ' S oncoin';' Community Development program and will continue in all tarCet areas to provide a living en - vironment. In summary, $5 million .:ill c . _nerate $13 million in private and local Government invest- ment; the bulk of the public mortgage funds will be paid back to the local Goverment into a revolving fund, economic inte'^ration and spatial deconcentration will have occurred; local financial institutions will be ccamittedto the preservation of neighborhoods be_ause of their investment; and 3:5 moderate income families will own houses, :a:: taxes, and bui1.. up equity that will produce even .more dollars in future years. IN I ME a mosZ ER Ix at_ ME ME