Transcript Slide 1

NSP Plan Introduction
Estimated
Amount
Estimated
Units
$2,100,000
21
$4,500,000
B. Purchase and rehabilitate homes and residential
properties that have been abandoned or foreclosed
upon, in order to sell, rent, or redevelop such homes
and properties.
$1,851,000
C. Establish land banks for homes that have been
foreclosed upon.
D. Demolish blighted structures.
$700,000
90
Activity/ Strategy
A. Establish financing mechanisms for purchase and
redevelopment of foreclosed upon homes and
residential properties.
Equity sharing/Down payment assistance program
24
Included
under
strategy “C”
E. Redevelopment of demolished or vacant properties.
$1,706,332
12
Administration
TOTAL:
$1,206,370
147
$12,063,702
Strategy B
$4,500,000
 $4,000,000 -
Multi-family rehab RFP 90 units
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Single-family rehab RFP10 units
$500,000 -
RFP Requirements
 Property must be located in the Area of Greatest
Need (AGN);
 Purchase must be from a lender, on a foreclosed
or abandoned property;
 Funds must be used for acquisition and rehab;
 Contract Requirements:
 Purchase price must be lower of: $ offer price or at
least 15% of “as is” appraisal. (Appraisal must be
completed within 60 days of offer);
 Contract must be contingent on qualifying for City’s
NSP financing;
RFP Requirements (continued)
 Developers must have a minimum of 3 years
experience in constructing/rehabilitating and
managing affordable rentals or homeownership
units.
 Priority will be given to qualified non-profit
developers;
 Interest and amortization terms:
 For-profits: 3% permanent mortgage-fully amortized
 Non-profits: 0%, permanent mortgage-no amortization
 There will be a 30 year affordability period for
the second mortgage;
RFP Requirements (continued)
 Developer fee will be capped at 10% of total
project costs (excluding land/building), and paid at
100% occupancy or sale;
 There will be green component requirements;
 For rentals, at least 51% of the development
must be set-aside for tenants making 50% or
below of Area Median Income (AMI);
 For sale, maximum sales price is $236,000 and
affordable to households earning up to 120%
AMI.
RFP Requirements (Continued)
 Maximum subsidy for rentals: $40,000
 Maximum subsidy for-sale:
$50,000
 Leverage counts
CDBG Requirements
 Environmental Requirements
 Section 3 Requirements
 Davis Bacon Requirements
Environmental Review
Requirements
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Required for any type of projects receiving any federal funding
US HUD working in conjunction with National Environmental Protection
Agency
Project cannot start – no funding awarded, contracts executed, or
commencement of construction until the City’s review has been completed
Requires project details: complete and clear project description, location,
specific activities to occur, geographic boundaries, funding sources and
amounts involved
Phase I Environmental Site Assessment required for substantial
rehabilitation and new construction projects
Time Frame needed for review depends upon type of project, normally
ranges from 1 week (non-construction) up to 4 months (substantial
rehabilitation and new construction)
Additional Information visit US HUD Website,
www.hud.gov/offices/cpd/environment/review
SECTION 3 – Housing & Urban Development
Act of 1968
 Triggered by use of US HUD funds in projects of
$100,000 or greater which award employment and/or
contracts
 Law states that preference must be given to low- and
very low- income persons or business concerns residing
in the area where the project is located
 Requirements include submission of an Equal
Opportunity Plan and monthly reports
 Additional information visit US HUD Website,
www.hud.gov/offices/fheo/section3/section3.cfm
DAVIS BACON LABOR STANDARDS
 Triggered by use of federal funds in any type of
construction/rehabilitation projects- based on federal
funding levels and/or the number of residential units
 US HUD working in conjunction with the federal
Department of Labor
 Compliance with federal labor standards and this area’s
minimum hourly wage requirements for individual
work/job classifications
 Reporting requirements include weekly payrolls for entire
duration of construction
 Additional information visit US HUD Website,
www.hud/gov/offices/adm/hudclips/guidebooks/HUD-LR4812/4812-LR.pdf
NSP Discussion Points
Contact Information
 Challenges seen in proposed RFP?
 To stabilize the neighborhoods, what are the challenges
associated with reconfiguring the 1 bedroom units to 2
bedroom units?
 Should RFP due date be 45 or 60 days from posting of
RFP?
Contact
Ann R. Kashmer - NSP Program Manager
City of Miami
444 S.W. 2nd Avenue
Miami, Florida 33130
[email protected]
305.416.2097
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http://www.miamigov.com/communitydevelopment/pages/housing/NSP.asp