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LTC 179-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. To: Mayor David Dermer and Date: July 28, 2003 Members of the City Commission Jorge M. Gonzalez 1 ~ City Manager , HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM NOTICE OF FUNDING AVAILABILITY (NOFA) PROCESS From: Subject: The Housing and Community Development Division administers the funds provided by the U.S. Department of Housing and Urban Development (HUD) including the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, and the Emergency Shelter Grant (ESG) Program. Under the HOME Program regulations, eligible activities may include acquisition and rehabilitation of existing multi-family buildings or scattered-site units, new construction, homeownership opportunities, and tenant-based rental assistance. As part ofthe annual funding cycle for these federal funds, the City issues a Notice of Funding Availability (NOFA) for the HOME Program funds during the month of February. The availability of all federal funds, including the HOME Program NOFA, is advertised to the community in the Miami Herald Neighbor's Beach Section in English and, on a rotational basis, in one of the Spanish language papers under contract with the City. In addition, affordable housing providers, a variety of service providers, and other interested parties are notified via a mass mailing. The advertisement provides the amount of funds available and fiscal year, the activities eligible for funding, and the time frame for the application process. Under the terms of the NOFA, interested parties may obtain a NOFA application from the office of the Housing and Community Development Division or request that the NOFA application be mailed to them. In accordance to the HOME Program regulations, the NOFA provides that applicants may be for-profit or not-for-profit corporations, individuals, or partnerships. The NOFA also provides for a thirty-day period for applicants to complete the application and submit itto the City. During this 30-day period, as part of an advertised workshop, the Housing and Community Development staff explains the HOME Program to prospective applicants. In addition, the staff provides individualized technical assistance to applicants to complete the application process. Applications are accepted starting at 9:00 a.m. on the advertised set date at the closure of the 30-day period. Applications ara accepted on a continuous basis until all funds have been awarded by the City Commission. If more than one application is submitted on the set date at 9:00 a.m., the applications ara deemed to have ardved at the same time and are considered for funding on an equal basis. Applications received by the City ara reviewed by the Housing and Community Development Division staff for completeness and compliance with the terms of the NOFA and HOME Program regulations. All applications are evaluated on the basis of the cdteria specified in the NOFA including: project description, cost factors, leveraging of public and private funds, experience and capacity of the applicant, and the ability of the applicant to proceed promptly. Applications deemed in compliance ara submitted to the City's Loan Review Committee (LRC) for review and recommendation in the order that they were received. The LRC may recommend full funding, partial funding, or no funding, and may choose to fund one or more applicants. Subsequently, applications recommended for funding by the LRC are forwarded to the Mayor and City Commission for final approval. Once the Mayor and City Commission approve funding, the City proceeds to enter into a HOME Program Agreement in accordance with the HOME Program regulations. In order to secure the City's HOME Program funds, recipients are also required to execute a mortgage, promissory note, and/or related loan documents. Following the execution of all documents, funds are disbursed on a reimbursement basis for work already in place. Ten percent of the amount approved under the HOME Program Agreement is kept by the City as a retainage until the project is completed and a final re~~rjl h, as been executed. JM~\~MDC\SSL c: Robert C. Middaugh, Assistant City Manager Vivian P. Guzman, Director of Neighborhood Services Department Joanna Revelo, Director of Housing and Community Development Division Miguell Del Campillo, Housing Manager Susan Stark Lichtstein, Housing Specialist F:\N EIG\HSG-CD\SUSAN\NOFA\LTC_NOFA Process.doc