Presentation on theme: "NSP Plan Introduction Activity/ Strategy Estimated Amount Estimated Units A.Establish financing mechanisms for purchase and redevelopment of foreclosed."— Presentation transcript:
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: $12,063,702 147
Strategy B $4,500,000 $4,000,000 - Multi-family rehab RFP - 90 units $500,000 - Single-family rehab RFP- 10 units
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 www.hud.gov/offices/cpd/environment/review
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 www.hud.gov/offices/fheo/section3/section3.cfm SECTION 3 – Housing & Urban Development Act of 1968
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-LR- 4812/4812-LR.pdf www.hud/gov/offices/adm/hudclips/guidebooks/HUD-LR- 4812/4812-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. 2 nd Avenue Miami, Florida 33130 email@example.com 305.416.2097 http://www.miamigov.com/communitydevelopment/pages/housing/NSP.asp http://www.miamigov.com/communitydevelopment/pages/housing/NSP.asp
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