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
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
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
http://www.miamigov.com/communitydevelopment/pages/housing/NSP.asp