NSP Plan IntroductionActivity/ Strategy Estimated

AmountEstimated

Units

A. Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties.

Equity sharing/Down payment assistance program

$2,100,000 21

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.

$4,500,000 90

C. Establish land banks for homes that have been foreclosed upon.

$1,851,000 24

D. Demolish blighted structures. $700,000 Included under

strategy “C”

E. Redevelopment of demolished or vacant properties. $1,706,332 12

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 amortizedNon-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

 

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

 

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

 

NSP Discussion PointsContact 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?

ContactAnn R. Kashmer - NSP Program Manager

City of Miami

444 S.W. 2nd Avenue

Miami, Florida 33130

akashmer@miamigov.comakashmer@miamigov.com

305.416.2097

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