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NSP Plan Introduction Activity/ Strategy Estimated Amount Estimated Units A.Establish financing mechanisms for purchase and redevelopment of foreclosed.

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Presentation on theme: "NSP Plan Introduction Activity/ Strategy Estimated Amount Estimated Units A.Establish financing mechanisms for purchase and redevelopment of foreclosed."— Presentation transcript:

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2 NSP Plan Introduction Activity/ Strategy Estimated Amount Estimated Units A.Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties. Equity sharing/Down payment assistance program $2,100,00021 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. $4,500,00090 C. Establish land banks for homes that have been foreclosed upon. $1,851,00024 D. Demolish blighted structures.$700,000 Included under strategy “C” E. Redevelopment of demolished or vacant properties.$1,706,33212 Administration$1,206,370- TOTAL: $12,063,

3 Strategy B $4,500,000  $4,000,000 - Multi-family rehab RFP - 90 units  $500,000 - Single-family rehab RFP- 10 units

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5 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;

6 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;

7 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.

8 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

9 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,

10  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, SECTION 3 – Housing & Urban Development Act of 1968

11 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, 4812/4812-LR.pdf 4812/4812-LR.pdf

12 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. 2 nd Avenue Miami, Florida 


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