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HomeMy WebLinkAbout1554877 - MINUTES - CRA MINUTES OF MEETING DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY TUESDAY, MAY 8, 2018 - 5:30 P.M. 1. Call to Order/Roll Call Chairman James called the meeting to order at 5:31 p.m. Present: Chairman: Tamara James Vice-Chairman: Bill Harris Board Members: Bobbie H. Grace Marco A. Salvino, Sr. Executive Director: Rickelle Williams City Attorney: Thomas Ansbro CRA Secretary: Thomas Schneider Absent: Board Member: Chickie Brandimarte Board Member Grace motioned to excuse the absence of Board Member Brandimarte; seconded by Board Member Salvino. The motion carried unanimously. 2. Citizen Comments There were no comments at this meeting. 3. Administrative Reports Director Williams gave an update on the community charrette and the rebranding initiative, and reviewed the information in the agenda packet. 3.1 Arts and Seafood Celebration: Final Update Director Williams noted the kick-off was successful and reviewed the information in the agenda packet. Chairman James asked if food vendors will be required to have reasonably priced items. Director Williams responded in the affirmative. 3.2 Grand Re-Opening: Global Learners Academy (Collins Market) Director Williams reviewed the flyer in the agenda packet. 3.3 "Dania After Dark" Art Walk&Market: Update Director Williams distributed a flyer and a narrative, which are attached to and incorporated in these minutes. She noted there will be a special event request at the next City Commission meeting; if the monthly events are successful, staff will request that the Commission waive the regulation prohibiting more than four events per fiscal year. She provided contact information for those interested in participating. 4. Presentations 4.1 "At Home Dania Beach": Residential Revitalization and Rehabilitation Program Director Williams gave a PowerPoint presentation and provided additional handouts, which are attached to and incorporated in these minutes. Discussion ensued regarding situations where homes are in bad repair, needing more than paint and landscaping, and how this could be dealt with. Board Member Grace noted every lot within the CRA area is undersized; there is a way to work with easements to make the lots more conducive to building a home. Director Williams noted some of the lots they are looking at are very tiny. Chairman James questioned if we could put linear parks on the small lots. Director Williams said that is an option. Director Williams recommended affordable housing be built, according to the CRA Plan and governing state statute; restrictive covenants would be utilized. Board Member Salvino asked why a portion of the CRA's profits from home sales could not be used to assist with down payments in order to get more people into homes. Board Member Grace questioned the availability of SHIP dollars. Regarding an Affordable Housing Trust Fund, she commented on a resolution utilized by Fort Lauderdale and Hallandale Beach that accomplishes this, and that she has requested we do something similar. Chairman James spoke of other cities' resolutions for workforce housing, and noted she would provide information to Director Williams. She asked if there would be guidelines and rules on the resale and rental of the homes. Director Williams noted there will be deed restrictions that go with the properties which will need to be worked out. Minutes of Regular Meeting 2 Dania Beach Community Redevelopment Agency Tuesday,May 8,2018—5:30 p.m. Discussion ensued on the need for rules and regulations restricting recipients selling or renting their homes, as well as requirements that the homes be maintained. Director Williams asked the Board to provide feedback to her in preparation for next year's budget. Chairman James asked that this item be placed on the next agenda under discussion and possible action. 5. Consent Agenda 5.1 Minutes: Approve Minutes of the April 10, 2018 CRA Board Meeting 5.2 Travel Requests: None 5.3 RESOLUTION NO. 2018-CRA-007 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY ("CRA") OF THE CITY OF DANIA BEACH, FLORIDA AUTHORIZING THE PROPER CRA OFFICIALS TO EXECUTE AN INTERLOCAL AGREEMENT WITH FLORIDA INTERNATIONAL UNIVERSITY ("FIU"), A PUBLIC BODY CORPORATE IN AN AMOUNT NOT TO EXCEED THIRTY FIVE THOUSAND DOLLARS ($35,000.00) WITHOUT COMPETITIVE BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS FOR RESEARCH AND CONSULTING SERVICES RELATING TO AN ECONOMIC ANALYSIS AND COMMUNITY CHARRETTE; PROVIDING FOR CONFLICTS;FURTHER, PROVIDING FOR AN EFFECTIVE DATE. 5.4 RESOLUTION NO. 2018-CRA-008 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY("CRA")OF THE CITY OF DANIA BEACH, FLORIDA ACCEPTING AN ART OF COMMUNITY GRANT AWARD IN THE AMOUNT OF THIRTY TWO THOUSAND DOLLARS ($32,000.00)FROM THE COMMUNITY FOUNDATION OF BROWARD FOR THE"DANIA BEACH: HONOR THE LEGACY" PROJECT; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. Board Member Grace motioned to approve the Consent Agenda; seconded by Board Member Salvino. The motion carried unanimously. 6. Proposals and Bids There were no proposals on this agenda. 7. Discussion and Possible Action Minutes of Regular Meeting 3 Dania Beach Community Redevelopment Agency Tuesday,May 8,2018—5:30 p.m. 7.1 Florida Department of Economic Opportunity (DEO): Community Planning Technical Assistance Grant Application Director Williams reviewed the information in the agenda packet. She noted if the City is awarded the grant, an interlocal agreement between the CRA and the City would be entered into. Board Member Grace motioned to approve the grant application; seconded by Vice-Mayor Harris. The motion carried unanimously. 8. Board Member Comments Chairman James noted she provided the Board Members with a flyer entitled Kimco Realty Helps Puts Dania Beach on the Map and was honored to do this interview on Dania Pointe. She asked for approval to show the presentation video at the next Commission meeting. Board Member Grace asked for copies of the booklet that details the components of Dania Pointe. 9. Information Items There were no items on this agenda. 10. Adjournment Chairman James adjourned the meeting at 6:45 p.m. ATTEST: COMMUNITY REDEVELOPMENT AGENCY --, r THOMAS SCHNEIDER, CMC TAMARA JAtA) CRA SECRETARY CHAIRMAN Approved: June 12, 2018 DANIA BEACH Minutes of Regular Meeting 4 Dania Beach Community Redevelopment Agency Tuesday,May 8,2018—5:30 p.m. r e 44 ARDS FIRST CITY! TIVAL. IN B R 0 Y k MONTHLY ST°REE' fE • ry 14 SECOND SATURDAYS775mlOPM SW 1ST AVE , BETWEEN 1ST STREET & DANIA BEACH BLVD III ' JOIN US FOR LIVE PERFORMANCES, ART, MAKERS, FOOD TRUCKS, DRINKS, & FUN! FREE ADMISSION • ALL AGES WELCOME • PET FRIENDLY WWW.DANIAAFTERDARK.COM - 3 _ 3 Launching this Summer, Dania After Dark is a monthly festival, set to take place on the streets of Broward's first city! Each installment of Dania After Dark will feature live music from local bands and musicians, in a variety of musical styles. Merchant pop-up shops will line the street, where guests can choose to shop small with local makers, artisans, designers, and brands. Inspired by Dania's retro charm, vintage dealers will also be highlighted. Guests will shop vintage clothing & accessories, retro bric-a-brac, home goods, jewelry and other treasures. With a heavy focus on arts and culture, Dania After Dark seeks to provide a visual and hands on experience for all event-goers. Live art, performances, exhibitions, and DIY activities will be programmed for each event occurence. In addition to shopping and music, attendees can look forward to dining al fresco with top South Florida food trucks, food stands, and a pop-up bar with signature cocktail specials. Plenty of seating will be set up for comfortable enjoyment throughout the evening. Dania After Dark looks forward to inspiring local Dania Beach brick and mortar inclusion, for onsite presence and promotion of their local businesses. All ages are welcome, and Dania After Dark is free to attend. The new Second Saturdays arts & cultural series will begin on June 9th, from 5-10pm at SW 1 st Ave, between 1 st Street and Dania Beach Blvd. For particpation information & vendor inquiries, please reach out to: vend@atianticstudios.com. General inquiries: info@atlanticstudios.com or Chris Gaidry at 954-785-7475. :#q 5/8/2018 DANIA BEACH CUYYUNIlY pEOEVEEOPYEYi AGEFCY At Home Dania Beach Residential Revitalization and Rehabilitation Program war, Presented: May 8, 2018 At Home Dania BeacP Residential Revitalization and Rehabilitation.Prey,+ The At Home Dania Beach program is a comprehensive approach to transforming the residential housing landscape within the Community Redevelopment Area. In addition to reducing slum and blight, growing the tax base and improving neighborhood aesthetics, this program gives residents an opportunity to feel At Home in their neighborhood and community. PROGRAM GOALS PROGRAM COMPONENTS Remove slum or blighted conditions Beautification 2 Create CRA area beautification Acquisition & Disposition Facilitate new development& Development redevelopment projects J Homeownership 4. Attract private investment in CRA Trust Fund 5. Foster neighborhood pride 1 5/8/2018 Authonzaton�- Florida Statutes CRA Plan Goals—page 3 ,� Enhance and Reinforce the CRA Sub Areas • -F.S.163.387(6)(g):Moneys in 9 Eliminate Substandard Housing and the redevelopment trust fund may be Provide Affordable Housing Alternatives expended from time to time for r '_ Redevelop the CRA in a manner that is undertakings of a community ICH Energy Efficient and Sustainable redevelopment agency as described • Attract Targeted New Industries and in the community redevelopment Retain and Expand Core Industries plan for the following purposes, • Enhance Redevelopment Activities including,but not limited to: through Active Marketing Strategy that Development of Affordable Supports Redevelopment Initiatives. Housin CRA Plan Programs—page 83-84 CRA Plan Policy Guidelines CRA Plan Strategies—page • Residential Reinvestment —page 23 77 Programs and Residential Improve Quality of Life • Vacant Lot Acquisition Rehabilitation Pursue Vacant or • Single family • Infill&New Housing Abandoned Properties development • Homeowner Reinvestment Grant Homes for CRA and City . Homebuyer Education Signage/Entry Features/Public Residents • Down Payment P Art/Landsca e Preserve and Enhance Y = Mortgage Subsidies and Second Existing Residential Areas Assistance Mortgage Assistance(Down Provide Housing • Affordable Housing Opportunities Trust Fund payment Assistance) Improvement Programs Authonzat 0r! Florida Statutes :;jj CRA Plan Goals—page 3 • -F.S.163.387(6)(g):Moneys in VIJ Enhance and Reinforce the CRA Sub Areas Eliminate Substandard Housing and the redevelopment trust fund may be x- expended from time time for r Provide Affordable Housing Alternatives undertakings of a community p Redevelop the CRA in a manner that is redevelopment agency as described _ t ,CH Energy Efficient and Sustainable in the community redevelopment — Attract Targeted New Industries and plan for the following purposes, Retain and Expand Core Industries including,but not limited to: r" Enhance Redevelopment Activities Development of Affordable through Active Marketing Strategy that Housing Supports Redevelopment Initiatives. CRA Plan Programs—page 83-84 CRA Plan Policy Guidelines CRA Plan Strategies—page Residential Reinvestment —page 23 77 Programs and Residential Improve Quality of Life • Vacant Lot Acquisition Rehabilitation Pursue Vacant or • Single family • Infill&New Housing Abandoned Properties development • Homeowner Reinvestment Grant Homes for CRA and City • Signage/Entry Features/Public Residents Homebuyer Education Art/Landscape a Preserve and Enhance Down Payment P Assistance • Mortgage Subsidies and Second Existing Residential Areas Mortgage Assistance(Down Provide Housing Affordable Housing payment Assistance) Opportunities Trust Fund • Improvement Programs 2 5/8/2018 CRA By the Numbers • Population: 9,048 (30% of the City) • Avg. Household Size: 2.41 (City = 2.9) • Race: 52.5% African American; 41% White • Ethnicity: 14.6% Hispanic • Median Household Income: $30,308 (City = $40,649) • Poverty: About 44% below poverty line of $24,858 • Housing Units: 3,700 (City = 13,157) • Housing Stock Age: 59% before 1970 • Vacancy: 19% Housing Unit Occupancy Status • Owner-Occupied: 27% • Renter-Occupied. , 11 Now i Simultaneous and Multi-dimensional Beautification Policy with 5 Strategies Trust Acquisition& Fund Disposition Home- Development ownership 3 5/8/2018 Beautification • Curb appeal increases investment, pride and value • Provides grants up to Moderate Income Requirement: $2,500 for Painting Household Size Income Limit(Maximum) and/or Landscaping 1 $67,920 • CRA approved 2 $87,360 3 $87,360 contractors only 4 $96,960 5 $104,760 • Paint colors and plants 6 $112,560 must meet requirements 7 $120,240 8 $128,040 Acquisition and Disposition • Neighbors First • Tiny, undevelopable lots • Transfer for passive use like gardens, landscaped open space • No maintenance cost • Affordable Infill Housing • Larger lots • Transfer or hold for affordable housing development • Restrictive Covenants • Development Standards • Homeownership Standards 4 5/8/2018 Deve op ment • Targeted Neighborhoods • Sun Garden Isles • College Gardens • Development Standards • Square footage (based on lot size) • Amenities and Characteristics • Construction method • Green Building Practices and Energy Efficiency • High Performance and Sustainable materials • Fixed Sales Price to developer • Fixed Sales Price to Homeowner • Timeframe for development CRA Lots - $200.,006+ in Revenue Initial Development Standards established(as listed above) CRA partners with lenders, housing counseling agencies and Broward County to cultivate eligible homebuyers Transfer properties to high capacity foundation (minimal consideration as an incentive and as an investment) Foundation partners with local developers to construct the homes(with approval of the CRA) for approximately$110.00/square foot Final development standards,design guidelines and plans approved by CRA Contracted developers begin seeking City approvals and permits* Construction begins CRA accepts applications from eligible potential buyers and selects using a lottery system Construction is completed Homes are sold to selected eligible buyers;Sales price not to exceed$210,000.00 Sale proceeds are split between the Foundation and the CRA Example 1:1400 sq.ft.Home -$210,000 Sales Price A. Land Value $25,000.00 B. Fixed Final Sales Price $210,000.00 C 5%of Fixed Final Sales Price=5%(B) $ 10,500.00 D. CRA Revenue after Sale=A+C $ 35,500.00 E. Foundation Revenue after Sale=B-D $174,500.00 F. Development Costs and Developer Fees $154,000.00 G. Foundation Return on Investment=E—F $20,000.00 5 5/8/2018 {H: Preserve the Block In addition to developing brand new homes, there needs to be a cohesive transition to the existing homes nearby. The CRA will be a good neighbor and reinvest profits from the sale of the properties to fund new acquisitions and neighborhood improvements. Adjacent single-family homes will be painted and minimally landscaped to improve the aesthetic of the entire area. • Up to 12 homes x $2,500.00 = $30,000.00 Homeownership Home Buyer Education: Pre and Post Purchase Home Buyer Eligibility • Must live in CRA;City of Dania Beach • First-time homebuyer • Low Income = 80%AMI or below • 680 Credit Score • Secure a first mortgage • Secure at least 3%of purchase price for down payment Down Payment Assistance: Home Purchase Financing I Amount Mortgage Eligibility for Low Income Buyers at 80%AMI $170,000.00 Funds Needed to Close(includes down-payment) $40,000.00 Purchase Price $210,000.00 Down Payment Assistance Source Per Home Six(6)Homes Broward County Housing finance(to individual applicants) $20,000.00 $120,000.00 CDBG Allocation to Dania Beach from Broward County $10,000.00 $60,000m Dania Beach CRA $10,000m $60,000,00 Total $40,000.00 $240,000.00 6 5/8/2018 Trust Fund Affordable Housing Trust Fund • CRA through the City of Dania Beach can create an affordable housing trust fund • Mixed-use zoning districts that would allow development to pay"in-lieu"of providing affordable housing that can be used to purchase vacant residential lots or properties for infill housing and/or improve existing housing stock. • The idea is that developers would pay(prorated by size and type of project) into the fund, if they chose not to build affordable housing as part of their project. • The City of Dania Beach currently has some"payment in lieu of regulations including the payment in lieu of replacement/relocation of trees that funds the Tree Preservation Trust Fund. — TOTAL FUNDING REQUEST F17_2018-201L9=$155,000.00 PROJECTED PROGRAM REVENUE FY 2018-2019= $218,000.00 Component Expense Description Beautification(20 Homes) $ 50,000.00 Paint or landscaping up to $2,500.00 per home Development:Preserve the Block $ 30,000.00 Paint and landscaping adjacent to (12 Homes) newly developed lots;$2,500.00 per home Down Payment Assistance $ 60,000.00 $10,000.00 to each eligible buyer (6 homebuyers) for Down payment or closing costs Legal/Real Estate Services $ 10,000.00Attorney/Realtor fees Homebuyer/Homeowner Education $ 5,000.00 Course delivered in Dania Beach Total $155,000.00 Component Revenue Description Development:New Dania Beach Ad $ 5,000.00 -To the City of Dania Beach Valorem Taxes&Non Ad Valorem -Approximately$833 per home. Assessments from 6 new homes Development:Sale of 6 Home $213,000.00 Revenue after Sale Trust Fund To be determined Total $218,000.00 7 5/8/2018 Thank You: Detailed Program Description Provided 8 DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY y r. S At Home :Dania Beach Residential Revitalization and Rehabilitation Program At Home Dania Beach Residential Revitalization and Rehabilitation Program One focus of the Dania Beach Community Redevelopment Agency (CRA) is the elimination of slum and blight through residential revitalization. The At Home Dania Beach program is a comprehensive approach to transforming the residential housing landscape within the Community Redevelopment Area. Through re-imagination and rehabilitation, current and future residents will foster a greater sense of pride in their neighborhood and community. The At Home Dania Beach program concentrates on residential housing development and is designed to improve the well-being of residents through aesthetic appeal, economic vitality and public safety. The At Home Dania Beach program has the capacity to impact everyone in the community including our youth, seniors, renters, homeowners and business owners. In addition to reducing slum and blight, growing the tax base and improving neighborhood aesthetics, this program gives residents an opportunity to feel At Home in their neighborhood and community. PROGRAM GOALS PROGRAM COMPONENTS 1. Remove slum or blighted conditions 1. Beautification 2. Create CRA area beautification 2. Acquisition & Disposition 3. Facilitate new development & 3. Development redevelopment projects 4. Homeownership 4. Attract private investment in CRA area 5. Trust Fund 5. Foster neighborhood pride AUTHORIZATION a. Recent CRA Board/City Commission Action and Timeline: June 3, 2015: Motion and Consensus - CRA Board adopts CRA Plan 2015 update January 9, 2018: Motion and Consensus - CRA Board authorizes request by resolution to the City of Dania Beach for Property Conveyance for Housing January 23, 2018: Resolution No. 2018-011 — City Commission Approves Property Conveyance to CRA for Housing February 13, 2018: Resolution No. 2018-023 — City Commission Adopts CRA Plan (retroactive to July 3, 2015) February 28, 2018: CRA staff receives Quit Claim Deeds for Property b. Florida Statutes Chapter 163 Part III: - F.S. 163.387 (1)(a): After approval of a community redevelopment plan, there may be established for each community redevelopment agency created under s. 163.356 a redevelopment trust fund. Funds allocated to and deposited into this fund shall be used by the agency to finance or refinance any community redevelopment it undertakes pursuant to the approved community redevelopment plan. - F.S. 163.387 (6)(g): Moneys in the redevelopment trust fund may be expended from time to time for undertakings of a community redevelopment agency as described in the community redevelopment plan for the following purposes, including, but not limited to: Development of Affordable Housing c. Redevelopment Goals (p. 3 —CRA Plan 2015) 1. To Enhance and Reinforce the CRA Sub Areas 2. To Eliminate Substandard Housing and Provide Affordable Housing Alternatives 1 3. To Redevelop the CRA in a manner that is Energy Efficient and Sustainable 4. To Attract Targeted New Industries and Retain and Expand Core Industries 5. To Enhance Redevelopment Activities through Active Marketing Strategy that Supports Redevelopment Initiatives. d. Community Redevelopment Programs (p. 83-84 — CRA Plan 2015) • Residential Reinvestment Programs and Residential Rehabilitation • Infill & New Housing • Homeowner Reinvestment Grant • Signage/Entry Features/Public Art/Landscape • Mortgage Subsidies and Second Mortgage Assistance (Down payment Assistance) e. CRA Plan: Policy Guidelines (p.23-24 — CRA Plan 2015) #1: The CRA Shall work together with the City and all of Its departments towards the shared goals of Improving N the quality of life for all citizens, businesses, and property t r ^j owners in the redevelopment area. .. ..��. _ #7: The CRA shall activelypursue the purchase and/or p p �► redevelopment of vacant or abandoned properties in the A redevelopment area as a priority. r #15: The CRA shall provide for priority to be given to CH residents of the redevelopment area, and secondly to BRM MY UT•194 those of the City of Dania Beach, to purchase homes = developed under the Plan to the extent the law allows. • #18: The CRA, with the assistance of neighborhood-based organizations, housing finance agencies, financial institutions, government, development interests, and real estate representatives, shall preserve and enhance '_ �' existing residential areas to provide a variety of housing opportunities for all income levels. • #19: The CRA shall undertake annual continuous improvement programs and other activities that are designed to prevent the recurrence and spread of negative conditions. f. Housing Implementation Strategies (p.77 —CRA Plan 2015) • #1: Identify funding and implement a neighborhood vacant lot acquisition program for replacement and infill housing. • #5: Coordinate with outside housing and building organizations to create a series of pre- reviewed Florida Building Code compliant/energy efficient building plans for infill single family development • #6: Partner with outside housing finance agencies to provide local home buyer readiness classes, Individual development accounts and/or down payment assistance programs. #8: Encourage a range of housing types to increase access for elderly transitioning, physical handicapped, and micro housing to address overcrowding and/or single preference housing. • #9: Create an affordable housing trust fund that is tied to the mixed-use zoning districts that would allow development to pay "in-lieu" of providing affordable housing that can be used to purchase vacant residential lots or properties for infill housing and/or Improve existing housing stock within the CRA neighborhoods. 2 BACKGROUND Established in 1904, the City of Dania Beach is the oldest city in Broward County. In 2002 the Community Redevelopment Agency (CRA) was created by the Dania Beach City Commission and the Broward County Board of County Commissioners and in 2009 expanded to include 1,349 acres comprising five neighborhoods in need of significant redevelopment. The CRA plan, first adopted in 2004, was updated in 2009 and again in 2015. The CRA has made significant progress in implementing strategies contained in the 2009 and 2015 CRA Plan, creating an environment that is ripe for development. With an estimated population of 31,000 and 8.09 square miles of land area, the City of Dania Beach is a predominantly residential coastal community in Broward County. Although nestled between the cities of Fort Lauderdale and Hollywood, Dania Beach has its own distinct charm and character. Proximity to the Ft. Lauderdale/Hollywood International Airport, Port Everglades and the beach has served as a catalyst for the Marine and Hospitality industries. Another location advantage is Interstate-95, which traverses the city and provides for accessibility and nearby industrial and commercial opportunities. By the Numbers • Population: The Community Redevelopment area comprises approximately 30 percent of the City's population or 9,048 residents. • Household Size: Average household size is 2.41 (higher than citywide rate of 2.29) • Race & Ethnicity: The CRA population is 52.5 percent African American, and 41.0 percent White. Among all races, 14.6 percent of the population is of Hispanic origin. • Income: Median Household Income within the CRA is $30,308.00 compared to $40,649 citywide. • 26 percent of CRA households earn less than $15,000.00 per year • 44 percent of CRA households earn less than $25,000.00 per year • Poverty levels are defined nationally by U.S. Bureau of the Census by family size and composition. In 2017, the poverty threshold for a family of four with two children was an annual income of $24,858.00 • Housing Units: Approximately 3,700 in CRA; 13,157 total within City • Housing Age: 59 percent of housing units in CRA built before 1970 • Housing Occupancy Status within CRA: o Vacant = 19% o Owner-Occupied = 27 percent o Renter-Occupied = 54 percent As the CRA experiences a surge Housing Unit Occupancy Status of development, there is a transformation taking place citywide. Through a rebranding Inn initiative, the City seeks to 28% enhance its identity and create 54% aos� aa`Ya as an evolved sense of place. The CRA is anticipating that 56% " population growth will expand sss 3s% �S with redevelopment. Keeping in mind that the CRA has a c.Kn 015 significant population of minutes Broward County economically vulnerable residents, the CRA must ■ vacancy ■ owner Occupied ® Rontvr Orrupwrl adequately plan for smart growth, economic and community redevelopment. 3 The CRA struggles with scattered concentrations of neighborhood blight and abandoned properties which represent a lack of economic growth and community investment. This creates significant housing- related challenges that affect how community planning is implemented. The slum and blight stemming from vacant properties has created safety and public image challenges for the CRA's neighborhoods. These properties become tools for speculators and real estate investors who don't necessarily have an interest in community goals. The CRA recognizes the value of homeownership in creating and promoting neighborhood stability. In order to maintain and continue to improve the CRA's rate of homeownership, a priority has been placed on addressing the housing needs related to owner-occupied housing. Recent development within the Community Redevelopment area can be seen through the various new hotels along Federal Highway (US-1) and the Dania Pointe 102-acre premier mixed-use development. It is anticipated that this growth will create heightened development and investment interest within the nearby neighborhoods of the CRA. While growth is ideal, there is a need to discourage neighborhood destabilization. To enable existing residents of the CRA to participate in and benefit from the growth of the CRA, there need to be programs that provide residential revitalization opportunities. The At Home Dania Beach program will accomplish this. AT HOME DANIA BEACH Program Elements The At Home Dania Beach Program encompasses a simultaneous and multi-dimensional policy to enhance the residential housing environment through the following five (5) strategies: Beautification, Acquisition & Disposition, Development, Homeownership and Trust Fund. Essentially, these strategies represent sub-programs that together serve to improve the overall residential housing market via simultaneous implementation. Beautification Trust Fund Acquisition& Disposition 7 ­­*S Homeownership Development 4 1. Beautification One of the most revealing elements of any neighborhood or community is the way it looks. The appearance and condition of streets, buildings and open spaces tell the story of a community. For residential property, external appearance is typically referred to as curb appeal. Curb appeal refers to the attractiveness of the exterior of a residential property as viewed from the street. Curb appeal is often used as an indicator of the initial appeal of a property to prospective homebuyers but is also used to characterize an entire neighborhood. Perceptions are made about neighborhoods based on the level of curb appeal displayed from home to home. The consistency of attractive homes in an area serve to give the perception that a neighborhood is safe, appealing and a great place to live. When people invest in maintaining and beautifying their property, it spurs a feeling of pride in the neighborhood and promotes a better quality of life. The home Beautification aspect of the At Home Dania , Beach program gives CRA homeowners an opportunity to improve and beautify their property through a '- forgivable loan or grant. The purpose of the home - µ Beautification is to assist single-family homeowners with �- - the financial assistance needed to enhance the street- visible appearance of their property. Under the Beautification program, the Dania Beach CRA provides assistance to qualified homeowners through a one-time loan of up to $2,500.00 to aid with the cost of landscaping and/or exterior paint for their property. The b ° - loan does not need to be paid back subject to program terms. By beautifying their homes, these residents help to better the overall aesthetics of the community and increase property values. Eligibility The Beautification Program is available to residents (extremely low to moderate income*) and property owners in the Dania Beach Community Redevelopment area. - Up to $2,500.00: The applicant must be the owner and occupant of a homesteaded single-family home or townhome or duplex (triplex, quadplex, apartments and condos are not eligible). Applicants must not be the owner of any investment properties within Broward County. Prospective applicants must meet income eligibility requirements and their property taxes must be current and in paid status. - Up to $1,500.00: The applicant may be a property owner that does not occupy the property. Only single-family homes are eligible (townhomes, duplexes, apartments and condos are not eligible). Tenants of the property must apply through the property owner. - Maximum of one award per year for homesteaded or non-homesteaded property owners regardless of number of properties owned. - Grant recipients may not reapply for five (5) years. Terms The program will not reimburse an owner for work previously done, already underway or with a current permit. Funding is available on a first-come, first-served basis until funds are exhausted. The forgivable loan only needs to be repaid if the owner or owners sell their property within two (2) years of participating in the program. If the property owner keeps the property for two years following participation in the program, no repayment will be required. Residents may select from a listing of preapproved qualified contractors that will be utilized to perform the landscape installation and/or painting. The contractors will be responsible for updating their insurance and licensing information as required. Landscaping expenditures should not include sculptures, statues, fountains, rocks, topiaries, seasonal plants or any amenity items. Residents may use funds for the purchase and installation of perennial plants, palms and shade trees, landscape materials, asphalt removal and irrigation systems. 5 Homeowners may select from a pre-approved list of paint colors (or seek pre-approval of a desired color). The CRA will pay costs directly to the eligible contractor upon completion of the work. *Residents with low to moderate income may apply. Income levels are based on the Median Income for Broward County and are guided by HUD Income Limits. Income limits are listed below: Household Size Income Limit (Maximum) 1 $67,920 2 $77,640 3 $87,360 4 $96,960 5 $104,760 6 $112,560 7 $120,240 8 $128,040 Cost Impact: Twenty (20) Homes per year = $2,500.00 = $50,000.00 In addition, the CRA will continue to seek opportunities to leverage Beautification program resources with external funding sources. 2. Acquisition & Disposition The City of Dania Beach has possession of a number of parcels within the CRA that are not being used for municipal purposes. In addition, there are several privately owned vacant properties within the CRA. Such properties often contribute to neighborhood blight, attract crime, present a fire hazard, generate no property tax revenue and contribute to declining property values of surrounding properties thereby decreasing property tax revenues further. The Acquisition & Disposition program is a suburban infill program designed to address the problem of neighborhood blight by revitalizing underutilized residential properties in the CRA. Based on the CRA Plan policy guidelines, the CRA shall actively pursue the purchase and/or redevelopment of vacant or abandoned properties in the redevelopment area as a priority. s There are two (2) Acquisition & Disposition subcomponents: . . Neighbors First and Housing Infill. Neighbors First— For Small Undevelopable Lots The people most affected by blighted, abandoned, un-kept property are often those who live next door to them. These properties bring down the value of nearby homes and encourage dumping, loitering and crime. One facet of the program targets parcels that are unsuitable for development. These are small pieces of land with little development potential. The Neighbors First program offers a process by which an existing homeowner can purchase publically-owned vacant properties needing rehabilitation and maintenance. A resident who owns a home next door to a piece of vacant or abandoned property can purchase 6 the vacant parcel at minimal cost determined by the governing body. The purchaser is then responsible for maintaining or improving the property, thus increasing neighborhood aesthetics and property value. Repurposing lots as urban gardens or landscaped open space is ideal. Elie iq bft The subject property is a real property (zoned residential) acquired by the municipality through a tax sale, administrative foreclosure program, transfer of lands available for taxes from Broward County or other administrative proceeding to satisfy a municipal lien against the property. Applicants must be current on all property taxes and free of obligations to the City. Applicants must be able to maintain the lot in accordance with all local building, housing and zoning codes and City ordinances. Homeowners applying to purchase property must have no properties in violation of zoning ordinances or have no outstanding fines related to zoning or code violations. The CRA or City maintains the right to condition the transfer of the title on the buyer's acceptance of certain deed restrictions. Restrictions may be included in the deed to ensure properties are maintained in an agreed upon way and will be monitored by the City of Dania Beach. If the buyer fails to maintain the property as agreed, the CRA or City may exercise its discretion and take back title to the property from the buyer. The property will revert to the CRA or City if the buyer of the property does not fulfill the purpose for which the property was purchased and satisfy all conditions imposed on the sale of the property within one (1) year of the purchase date. This program is intended to ensure that neighborhood homeowners, as vested parties of interest, are given the opportunity to take control of their neighborhoods by having first access to the vacant and dilapidated properties in their areas, and the chance to improve them for various uses including gardens or play areas. To ensure that this occurs, the Neighbors First program gives preference to potential buyers in the following manner: - Homeowner occupying a property adjacent to the vacant property or sharing a common boundary with the parcel; - Neighborhood association organization that is actively involved in the neighborhood; - Non-profit organizations; - Verifiable homeowners on the same block as the subject property The applicant may choose to combine the parcel with -+ his or her current owned property (if adjoined) to " '"`° _ " create one tax parcel where applicable. Upon receipt of s ♦♦ ° �" the property, the successful applicant has one hundred `,. =� a► and eighty (180) days to clean up the property in the A. manner described in their application. The successful " , "f' applicant then has up to one (1) year (depending on the size of the lot) to complete the rehabilitation and/or development plan for the property in the �f manner described in their application. The successful applicant is required to pay, and shall not become flj F delinquent on, all property taxes assessed on the f property and must obtain all insurance required by the State of Florida related to his/her ownership of the property. Housing Infill - Workforce/Affordable Housing for Large Developable Lots . • ;z ``I The CRA Plan charges the CRA to implement a neighborhood vacant lot acquisition program for -- - -^ ' ` " •,,, -� 7 replacement and infill housing. The CRA shall identify and acquire vacant lots within the redevelopment area for the development of new affordable or workforce housing. The CRA will recruit developers and builders to fulfill this goal. Properties may be deeded (via sale or transfer) to private entities, whether for-profit or non-profit developers. The CRA is empowered to give grants to such developers and builders to reduce the cost of developing the new housing structures. Such provisions should be followed by the City for City-owned land within the CRA in accordance with the CRA plan and Florida Statutes. Sale or Disposition of Property- F.S. 163.380 (1): The sale or disposition of publically owned land within the CRA must follow Florida Statutes and the municipal code (City Charter). The property must be used for the uses approved in the community development plan. Such use limitations would apply to the purchasers and their successors and assigns in accordance with the statute. F.S. 163.380 (1): Any county, municipality, or community redevelopment agency may sell, lease, dispose of, or otherwise transfer real property or any interest therein acquired by it for community redevelopment in a community redevelopment area to any private person, or may retain such property for public use, and may enter into contracts with respect thereto for residential, recreational, commercial, industrial, educational, or other uses, in accordance with the community redevelopment plan, subject to such covenants, conditions, and restrictions, including covenants running with the land, as it deems necessary or desirable to assist in preventing the development or spread of future slums or blighted areas or to otherwise carry out the purposes of this part. However, such sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the community redevelopment plan by the governing body. The purchasers or lessees and their successors and assigns shall be obligated to devote such real property only to the uses specified in the community redevelopment plan and may be obligated to comply with such other requirements as the county, municipality, or community redevelopment agency may determine to be in the public interest, including the obligation to begin any improvements on such real property required by the community redevelopment plan within a reasonable time. F.S. 163.380 (2): Such real property or interest shall be sold, leased, otherwise transferred, or retained at a value determined to be in the public interest for uses in accordance with the community redevelopment plan and in accordance with such reasonable disposal procedures as any county, municipality, or community redevelopment agency may prescribe. In determining the value of real property as being in the public interest for uses in accordance with the community redevelopment plan, the county, municipality, or community redevelopment agency shall take into account and give consideration to the long-term benefits to be achieved by the county, municipality< or community redevelopment agency resulting from incurring short-term losses or costs in the disposal of such real property; the uses provided in such plan; the restrictions upon, and the covenants, conditions, and obligations assumed by, the purchaser or lessee or by the county, municipality, or community redevelopment agency retaining the property; and the objectives of such plan for the prevention of the recurrence of slum or blighted areas. In the event the value of such real property being disposed of is for less than the fair value, such disposition shall require the approval of the governing body, which approval may only be given following a duly noticed public hearing. The county, municipality, or community redevelopment agency may provide in any instrument of conveyance to a private purchaser or lessee that such purchaser or lessee is without power to sell, lease, or otherwise transfer the real property without the prior written consent of the county, municipality, or community redevelopment agency until the purchaser or lessee has completed the construction of any or all improvements which he 8 or she has obligated himself or herself to construct thereon. Real property acquired by the county, municipality, or community redevelopment agency which, in accordance with the provisions of the community redevelopment plan, is to be transferred shall be transferred as rapidly as feasible in the public interest, consistent with the carrying out of the provisions of the community redevelopment plan. Any contract for such transfer and the community redevelopment plan, or such part or parts of such contract or plan as the county, municipality, or community redevelopment agency may determine, may be recorded in the land records of the clerk of the circuit court in such manner as to afford actual or constructive notice thereof. Restrictive Covenant In compliance with F.S. 163.380 (1) and (2), for properties within the Community Redevelopment area owned by the City of Dania Beach or the CRA, the City or CRA should impose restrictive covenants and/or agreement terms on the land prior to leasing the property, declaring the land surplus or disposing of the property through transfer or sale. Restrictive covenants run with the land, and predetermine the uses for the property to be aligned with the CRA plan. Development and Homeownership standards are to be included in the restrictive covenant and/or agreement and are described in further detail in the Development and Homeownership sections listed below. City Charter, Part X, Article 2, Sec. 4 - Power to Sell: Subject to the restrictive provisions of this article, the city commission is empowered to sell or dispose of any lands, improvements, public buildings, parks or other lands now owned or subsequently acquired by the city. The deed of conveyance may place such conditions, limitations, and restrictions on the use of such property by the purchasers as the city commission shall deem proper. 3. Development - Targeted Neighborhoods The Community Redevelopment area is characterized by a lack of homeownership and neighborhood engagement which has led to the substantial deterioration of the existing housing stock. In addition, there are several vacant and abandoned (bank-owned) properties within the CRA neighborhoods that are poised for infill redevelopment but currently create eyesores within the community. These vacancies present an opportunity to encourage the development and ownership of quality, affordable and/or workforce housing. Vacant, abandoned and blighted property doesn't just damage tax rolls, its consequences are unsafe living conditions, crime, repelled yOt *- private investment and a pattern of b ° g neglect. While the CRA and City of DAN—� •A BEACH Dania Beach have helped to stabilize . areas of the community using federal programs, there are still scattered vacant, abandoned, blighted and foreclosed properties throughout the CRA. Two neighborhoods in particular stand out: Sun Garden Isles (NW Byrd Pointe) and College Gardens. Sun Garden Isles (Green on Map) Among all CRA neighborhoods, Sun Garden Isles presents the greatest opportuntiy for reinvestment that could 9 have a positive impact and support stabilization. Close proximity to Dania Pointe along with approximately 62 percent of housing units being renter occupied and 17.3 percent vacant, this neighborhood is vulnerable to destabilization, speculation and displacement. Median household income is low, at $19,989.00 and there is also a high rate of unemployment. The median age is 31.4 percent reflecting a younger population. There are numerous large parcels of undeveloped vacant land. This neighborhood has the potential to transform into a vibrant and vital residential neighborhood for young professionals. College Gardens (Blue on Map) Similar to Sun Garden Isles, the College Gardens neighborhood is experiencing housing conditions that threaten neighborhood stability. At approximately 62 percent renter occupancy for all housing units, and 17.5 percent vacancy, there is an opportunity for positive improvement and stabilization. This neighborhood has a young population with a median age of 34.5. It is composed of mostly families with children and an average family size of 2.89. The median household income is $27,289, with roughly 70 percent of households in this neighborhood being severely cost burdened, paying more than 30 percent of their income on mortgage or rent. This area is considered a "tipping point" area as it is typically stable but has a high number of vacant lands, code violations, and properties in disrepair. Development Standards It is important to note that the same conditions that could cause destabilization, if guided by thoughtful intervention, can create opportunities for improvement that benefit residents and provide for the needs of the most vulnerable Mites i populations within the CRA. Regardless of the method of acquisition and disposition, publically owned land within the CRA should be transferred via Agreement that includes X F mutually agreed-upon development and homeownership standards with monitoring provisions. Development,. standards should include, but are not limited to: _ - Predetermined square footage (based on lot size) - Predetermined number of Bedrooms and mr Bathrooms (based on lot size) - Amenities and Characteristics (Interior and Exterior) - Construction method (concrete masonry unit, structural insulated panel or steel frame) - Green Building Practices and Energy Efficiency (Interior and Exterior) - High Performance and Sustainable materials, appliances and fixtures - Fixed Sales Price to developer (or transferred with minimum consideration as an incentive) - Fixed Sales Price to Homeowner (plus up to 5%) — Between $200,000 and $210,000 based on current housing market. - Timeframe for development: 12 months from Agreement/Delivery of Deed Development Plan — For Six (6) Vacant Lots Owned by the CRA The CRA requested and was deeded six (6) vacant lots by the City of Dania Beach for the development of single-family housing. By partnering with a high capacity non-profit organization that specializes in housing development, the CRA supports new affordable development on vacant parcels. These organizations not only bring structures in accordance with all applicable codes, but also improve the vacant property for resale to eligible homebuyers to promote neighborhood improvement and stability. These improved properties will promote public welfare and economic development for current residents of the Community Redevelopment Area. 10 1. Initial Development Standards established (as listed above) 2. CRA partners with lenders, housing counseling agencies and Broward County to cultivate eligible homebuyers 3. Transfer properties to high capacity foundation (minimal consideration as an incentive and as an investment) -Non-profit -$2 Million capacity to start development right away 4. Foundation partners with local developers to construct the homes (with approval of the CRA) for approximately $110.00/ square foot 5. Final development standards, design guidelines and plans approved by CRA 6. Contracted developers begin seeking City approvals and permits* 7. Construction begins 8. CRA accepts applications from eligible potential buyers and selects using a lottery system 9. Construction is completed 10. Homes are sold to selected eligible buyers; Sales price not to exceed $210,000.00 11. Sale proceeds are split between the Foundation and the CRA - CRA recoups appraised value of the vacant land (avg. $25,000.00 per home sold) - CRA receives additional 5% of sales price (up to $10,500.00 per home sold) - Foundation receives balance (up to $174,500.00 per home sold) *CRA may be able to reduce construction costs by reimbursing City impact and permitting fees which are roughly $7,000.00 per 1400sq.ft. home. Example 1: 1400 sq. ft. Home - $210,000 Sales Price A. Land Value $ 25,000.00 B. Fixed Final Sales Price $210,000.00 C 5% of Fixed Final Sales Price = 5%(B) $ 10,500.00 D. CRA Revenue after Sale= A + C $ 35,500.00 E. Foundation Revenue after Sale = B - D $174,500.00 F. Development Costs and Developer Fees $154,000.00 G. Foundation Return on Investment = E— F $ 20,000.00 Example 2: 1200 s . ft. Home - $200,000 Sales Price A. Land Value $ 25,000.00 B. Fixed Final Sales Price $200,000.00 C 5% of Fixed Final Sales Price = 5%(B) $ 10,00.00 D. CRA Revenue after Sale= A + C $ 35,000.00 E. Foundation Revenue after Sale = B - D $165,000.00 F. Development Costs and Developer Fees $132,000.00 G. Foundation Return on Investment = E— F $ 33,000.00 Total Revenue: Up to $35,500.00 per lot. Up to $213,000.00 for all six (6) lots. a Preserve the Block: IF In addition to developing brand new homes, there needs to be a cohesive transition to the existing homes nearby. The CRA will be a good neighbor and reinvest profits from the sale of the properties to fund new acquisitions and neighborhood improvements. Adjacent single-family homes will be painted ~ p 4 and minimally landscaped to improve the aesthetic of the entire area. Cost Impact: Up to 12 homes x $2,500.00 = $30,000.00 11 4. Homeownership The image and character of the CRA is greatly influenced by its residential property. With new commercial and municipal development on the rise, the City of Dania Beach offers a wonderful housing opportunity for new homebuyers, young professionals and retirees alike. Through the Homeownership aspect of the At Home Dania Beach program, more housing opportunity is available for those who want to purchase a home within the CRA, specifically in the targeted neighborhoods. By encouraging a homegrown pool of homebuyers, neighborhood stabilization and economic growth can occur at the same time. The CRA will partner with housing counseling agencies, lenders, and Broward County to help make homeownership a reality for those seeking to purchase a home in the Community Redevelopment Area. Homebuyer Education (Financial Literacy): Pre and Post Purchase The CRA will partner with HUD-approved Housing Counseling agencies to provide pre and post purchase homebuyer and homeowner education course. This is needed to prepare CRA residents for homeownership and assist existing homeowners with maintaining homeownership. This ensures that buyers responsibly navigate homeownership to enhance and stabilize the community. Cost Impact: $5,000.00 for courses delivered in the City of Dania Beach. Down Payment Assistance— Financing the Gap In order to meet the gap between mortgage eligibility ($170,000.00) and purchase price ($210,000.00), low income homebuyers will need assistance to finance the gap ($40,000.00). Home Purchase Financing Amount Mortgage Eligibility for Low Income Buyers at 80% AMI $170,000.00 Funds Needed to Close (includes down-payment) $ 40,000.00 Purchase Price $210,000.00 Pending availability, Broward County`s Housing Finance and Community Redevelopment Division can offer approximately $20,000.00 for down payment assistance to each eligible homebuyer to purchase one of the six (6) homes being developed by the Dania Beach CRA. These funds are made possible through the Home Buyer Purchase Assistance Program funded via HOME, SHIP and/or CDBG funds allocated through Broward County for small, non-entitlement cities like Dania Beach. Each year, the City of Dania Beach submits an application to Broward County for CDBG funding and is typically award between $150,000.00 and $170,000.00 per year. For the past several years, applications have been tied to capital or streetscape projects. If the City Commission is inclined, the upcoming funding application (available October 2018) can request a portion for down payment assistance. For example, the City may request that $60,000.00 be allocated for down payment assistance ($10,000.00 for each homebuyer). In addition, the CRA will provide up to $10,000.00 for down payment assistance for each eligible homebuyer who meets the criteria and is selected through the lottery. Down Payment Assistance Source Per Home Six (6) Homes Broward County Housing Finance (to individual applicants) $20,000.00 $120,000.00 CDBG Allocation to Dania Beach from Broward County $10,000.00 $ 60,000.00 Dania Beach CRA $10,000.00 $ 60,000.00 Total $40,000.00 $240,000.00 Cost Impact to CRA: $10,000.00 per buyer x 6 = $60,000.00 12 Eligibility- For Home Developed by the CRA - Must currently reside in the Dania Beach Community Redevelopment Area (first priority); Residents within the City of Dania Beach but outside of the CRA (second priority) - Be a First-time homebuyer (must not have owned a home in the last three years) - Income Eligible. Homes will be sold to households whose incomes are at or below 80% of the County area median income (AMI). Income limits are set by HUD. As of April 2018, the income limits are: Extremely Very Low Moderate Household Size Low Low (30%) (50%) (80%) (120%) 1 person $17,000 $28,300 $45,300 $67,920 2 person $19,400 $32,350 $51,750 $77,640 3 person $21,850 $36,400 $58,200 $87,360 4 person $25,100 $40,400 $64,650 $96,960 5 person $29,420 $43,650 $69,850 $104,760 6 person $33,740 $46,900 $75,000 $112,560 7 person $38,060 $50,100 $80,200 $120,240 8 person $42,380 $53,350 $85,350 $128,040 - Minimum credit score of 680 - Able to pay down payment of at least 3% of the purchase price (VA loan down payment differs). - Able to secure a first mortgage in an amount sufficient to purchase with up to $20,000.00 down payment assistance from the County's Home Buyer Purchase Assistance Program; $10,000.00 from Dania Beach CDBG allocation and up to $10,000.00 down payment assistance from the Dania Beach CRA The example below reflects the purchase of a home for $210,000 with $44,100.00 in down payment. Down payment assistance helps to make the home affordable for low to moderate income households. ***Mortgage Example: This is an Approximate Loan Cost Illustration and is NOT a mortgage loan approval or commitment to lend. Pay-off your mortgage in: Years months • 30 360 $971 D^:^:nPaym Property Tax ent S44,100 21`�. $1,000 • Home Insurance %'Mtgage Interest Rate 4.000 $1,155 • Condo/HOA Fees $792 $96 SO Principal Property Home &Interest Tax Insurance 13 Application and Pre-Qualification - Complete application in its entirety - A pre-approval or pre-qualification letter from an approved lender, documenting that the lender has reviewed applicant's credit and income. CRA will provide a list of participating lenders; however, the applicant may choose any lender that abides by County underwriting guidelines. Loans must be 30-year fixed rate. - Within 60 days of entering into contract to purchase, each buyer must attend and receive a Homebuyer Education (HBE) Certificate from the provided list of HUD-approved housing counseling agencies. Failure to obtain the HBE Certificate in the time period will cause a cancellation of the purchase contract. - Upon purchase and delivery, buyers must complete a post homeownership class covering topics such as mortgage, insurance, property taxes and maintenance. 5. Trust Fund Affordable and workforce housing is a very critical issue in the City of Dania Beach, Broward County and most of South Florida. One way to mitigate the lack of affordable housing is to establish an Affordable Housing Trust Fund. The CRA through the City of Dania Beach can create an affordable housing trust fund that is tied to the mixed-use zoning districts that would allow development to pay "in-lieu" of providing affordable housing that can be used to purchase vacant residential lots or properties for infill housing and/or improve existing housing stock within the CRA neighborhoods. The idea is that developers would pay (prorated by size of project) into the fund, if they chose not to build affordable housing as part of their project. The City of Dania Beach currently has some "payment in lieu of" regulations including the payment in lieu of replacement/relocation of trees that funds the Tree Preservation Trust Fund. Cost Impact: None Potential Revenue: To Be Determined 14 At Home Dania Beach Residential Revitalization and Rehabilitation Program TOTAL FUNDING REQUEST FY 2018-2019 _ $155,000.00 PROJECTED PROGRAM REVENUE FY 2018-2019 _ $218,000.00 Component Expense Description Beautification (20 Homes) $ 50,000.00 Paint or landscaping up to $2,500.00 per home Development: Preserve the Block $ 30,000.00 Paint and landscaping adjacent to (12 Homes) newly developed lots; $2,500.00 per home Down Payment Assistance $ 60,000.00 $10,000.00 to each eligible buyer (6 homebuyers) for Down payment or closing costs Legal/Real Estate Services $ 10,000.00Attorney/Realtor fees Homebuyer/Homeowner Education $ 5,000.00 Course delivered in Dania Beach Total: $155,000.00 Component Revenue Description Development: New Dania Beach Ad $ 5,000.00 -To the City of Dania Beach Valorem Taxes & Non Ad Valorem - Approximately $833 per home. Assessments from 6 new homes Development: Sale of 6 Home $213,000.00 Revenue after Sale Trust Fund To be determined Total: $218,000.00 ***If vacant lots were sold via the Surplus process, the approximate revenue would equal approximately 90% of the appraised value = $135,000.00 for all six (6) lots. Presented: May 8, 2018 15 ,�'y Enterprise Copyright©2004, 2007, Enterprise Community Partners, Inc. All rights reserved. Adaptation of this material is permitted only for noncommercial purposes. GLOSSARY OF AFFORDABLE HOUSING TERMS [Portions of this glossary are reprinted from Affordable Housing Yearbook with permission of the publisher.] Acquisition-Rehab Program A colloquial term for program, usually run by a nonprofit group or local government, that purchases abandoned or substandard properties, repairs them and sells them to lower income homebuyers. Amortization The gradual repayment of a mortgage by installments. Amortizing Loan A loan for which equal payments are due on a regular periodic basis, usually monthly. The payments include varying amounts of principal and interest. These are sometimes called"level payment" loans, as opposed to deferred payment loans due only on resale or loans repaid with unequal periodic payments of principal and interest. Affordable Housing Fund A subsidy funding program of the Federal Home Loan Bank Board, the official governing body that oversees savings and loan institutions. Area Median Income (AMI) A term of art used by some federal programs to describe published income standards for various areas of the country that are used as benchmarks for determining households' eligibility for federally funded programs. For example, homebuyers assisted with HOME or CDBG funds generally must have incomes at or below 80% of area median income. AMIs are calculated and published annually by HUD. "Median"means that half of all households in the area are estimated to have more than this amount of income. Capacity Building A term used to describe technical assistance (and sometimes staff grants) given to a nonprofit organization to increase their organizational and staff capacity, funding resources, and output. Capitalize; Capitalization Has several meanings as used in the low-income housing industry. The most common is "capitalizing a loan fund," i.e. raising grants or low-interest loans for a fund from which loans are made to third parties. In real estate development, the term can also mean characterizing certain expenses such as loan interest and professional fees as capital costs, not ordinary operating expenses. Cash-to-Close A colloquial term used in the single-family lending industry to describe the total amount of cash to be provided by the homebuyer at the real estate and loan closing. This cash is applied to pay the down payment, appraisal fee, and other loan-related fees, recording costs, and pre-paid real estate taxes and insurance. CHDO Pronounced CHO-DOE. A HUD term for a Community-Based Housing Development Organization in relation only to the federal HOME program(see "HOME"). HOME reserves 15% of its funds for CHDOs. A CHDO must have on its board at least one-third low-income people, their specially elected representatives, or residents of low-income census tracts. CHDO Entitlement The amount of money a city, state or urban county gets annually from HUD based on a formula through the Community Development Block Grant program. Closing The occasion where the sale of real estate and/or the making of a loan is finalized. Sometimes called"settlement." Community Development A term broadly used to describe any efforts to improve housing, infrastructure, education, social services and employment in lower income areas. Community Development Block Grants (CDBG) This is a HUD (federal)program that provides grants to cities and states to undertake community development efforts. Affordable housing is a common use, and many cities subcontract with nonprofits to run the programs. Generally rural areas and cities smaller than 50,000 population must apply on a competitive basis annually or bi-annually to be a state government agency administering the Small Cities CDBG program. Community Development Corporation (CDC) A loosely defined term for a nonprofit organization that undertakes commercial or residential real estate development. It usually, but not always, indicates some targeting of efforts to a low-income neighborhood. 2 Conventional Financing In the low-income housing industry, a term often used to refer to any loan made with non-subsidy sources. Among private, single-family lenders, a term to describe a loan that is made with a minimum 20% down payment and conventional underwriting criteria—a maximum 80% loan-to-value ratio and maximum 28/36 underwriting ratios. See "loan- to-value ratio" and"underwriting ratios." CRA—The Community Reinvestment Act A federal law that encourages lenders to make residential and commercial loans to low- income and minority people, and/or in low-income areas. Debt Ratio See"installment debt ratio." Debt Service Principal and interest payments on a loan usually paid monthly. Deed in Lieu of Foreclosure The transfer of title of a mortgage property from the owner to a mortgage lender to avoid foreclosure and further collection actions. Deed of Trust See "mortgage loan." Deferred Payment Second Mortgage Loan A non-amortizing loan, usually at 0% interest, on which no repayments are due until sale or some other point in the future. They are usually made by a public or nonprofit agency to a lower income homebuyer or a developer of low-income housing. Sometimes called a "deferred payment loan," a"DPL," or a"soft second mortgage." Down Payment Assistance Grants or low interest loans given to lower income homebuyer's help to fund down payment and/or closing costs—usually in the range of$2,000 to $5,000. Less commonly, the term is used to refer to any second mortgage financing in any amount. Entitlement Jurisdiction In the affordable housing world, a city or county entitled to receive Community Development Block Grant funds directly from HUD—usually with a population exceeding 50,000. Extremely Low-income Household As widely defined by governmental and nonprofit organizations, a household with an income at or below 30% of median income. See "area median income." 3 Fannie Mae The most common term for the Federal National Mortgage Association(FNMA), a publicly chartered corporation that buys residential mortgage loans from loan originators, typically local banks and thrift institutions. Farmer's Home Administration See"Rural Housing Service." Fee Simple Ownership Outright ownership of real estate, as opposed to leasing, lease-purchase arrangements, and buying a home on land leased from a land trust. First Mortgage Loan For a home purchase or a real estate project, usually the largest loan and one that gives the lender the most security. In case of foreclosure and sale, the first mortgage lender gets the money before any other lender is paid off. Also called a"first deed of trust" loan in some areas of the country. Fixed-Rate Mortgage Loan A mortgage loan for which the interest rate does not change over time. Forbearance Agreement An agreement in which a lender postpones foreclosure on a mortgage loan to allow the borrower time to catch up on overdue loan payments. Foreclosure The process by which a mortgaged property may be sold when a mortgage is in default. Freddie Mac A commonly used name or the Federal Home Loan Mortgage Corporation, a publicly chartered corporation that buys residential mortgage loans from loan originators, typically local banks and thrift institutions. HOME The HOME Investment Partnership Program, a HUD program that grants housing subsidy funds on a formula basis to cities and states. Smaller cities must apply to states for funding. Funds may be used for acquisition, rehab, rent subsidies and(in some places)new construction. Subsidies can be low interest second mortgages, "forgivable" loans, grants, interest subsidies and rent subsidies. The program requires local nonfederal matching funds. HOME will fund developer fees and administrative costs of programs (up to certain limits). 4 Home Buyer Training Workshops conducted for groups of prospective homebuyers. Participants receive training on the pros and cons of buying a home, credit issues, the home search, mortgage financing, special financing (if available), the loan closing, home maintenance, and other responsibilities of homeownership. HOPE A series of HUD programs that provide grants to local governments, housing authorities, or nonprofit organizations to convert unused or HUD-owned rental properties to homeownership opportunities. Properties must be public housing or government foreclosed housing. The grant pays for some administration,but requires a local match. Applicants compete for funds in periodic requests for proposals. Housing Payment Ratio In single-family lending, the percentage of a borrower's income that will be spent on the housing payment after a home purchase, refinancing, or home renovation refinancing. This includes payments of loan principal, interest, real estate taxes, and insurance (called PITI). Housing Trust Fund A loosely defined term covering various types of public and nonprofit-controlled funds from which loans and grants are made for affordable housing. These trust funds are variously capitalized with public revenue, dedicated taxes, grants and payments from market-rate developers. HUD The U.S. Department of Housing and Urban Development. See definitions of Community Development Block Grants, HOME, HOPE, Low Income Public Housing, Section 8 and Section 202. Infill Housing New homes or apartments built on smaller tracts of land, often in older neighborhoods, urban renewal areas or inner cities. Installment Debt Ratio In single-family lending, the percentage of borrower's income that will be spent on all installment debt after a home purchase, refinancing, or home renovation financing. The conventional ratio is 36% of income. Some community reinvestment loan products and insured loans allow a higher ratio. 5 Land Trust In the strictest sense, a nonprofit organization that sells affordable homes but retains ownership of the land under them in order to control, through the lease, the long-term affordability of the homes. The lease ensures that the home is resold to a low-income family, sold at a below-market price, and/or sold with a share of the appreciated value going to the nonprofit. The term is used more loosely to describe programs that subsidize fee simple homeownership for low-income families and impose similar kinds of long- term affordability controls. Layered Financing Financing for an affordable housing project that includes several subsidy sources (for example, HOME, CDBG, and Tax Credits). Lien A document recorded in public records that represents a debt owed on the property. Examples of liens include: a recorded mortgage deed, a lien for unpaid taxes, and a mechanic's lien representing construction work on a property that was not paid for. Leverage In low-income housing, this means using one source of funds in a project to encourage investment by another source. As in "our funding was leveraged five times in that project." Loan-to-Value Ratio The ratio between the proposed loan amount and the appraised value of a property that money is being borrowed for. For instance, if a proposed loan equals 85% of appraised value, the loan-to-value ratio is 85%. For community reinvestment programs, lenders will sometimes lend up to 95% or 97% of value, typically only if mortgage insurance is provided. The maximum ratio for conventional loans is 80%. Low-income Household As widely defined by governmental and nonprofit organizations, a household with an income at or below 80% of area median income. See"area median income." Median Income See "area median income." Moderate-Income Household As widely defined by governmental and nonprofit organizations, a household with an income between 80% and 120% of area median income. See"area median income." Mortgage Insurance Insurance provided by a private institution or public agency that insures a lender in whole or in part from losses due to a default on a loan. Lenders typically require mortgage insurance only for loans that are not considered conventional (see "conventional financing"). Borrowers pay the premiums. The Federal Housing Administration (FHA- 6 part of HUD)provides many kinds of mortgage insurance, as does the Veterans Administration (VA) and many private insurers, who provide what is called"private mortgage insurance (PMI)." Mortgage Loan A loan secured by a mortgage deed, meaning the property owner has agreed to give the property to the lender if monthly payments are not made, so the property can be sold to pay off the loan. First deed of trust loan means the same thing. Mortgagee The Lender of a mortgage loan. Mortgagor The borrower of a mortgage loan. Non-amortizing Loan See"deferred payment loan." Origination Once a lone has been underwritten, the act of processing the loan through closing, providing the loan funds and setting the loan up for servicing. Participation Loan Usually, a first mortgage loan made on a larger real estate project such as an apartment acquisition, where two or more lenders provide the funds. In proportion to their funds provided, the share risk, repayments and any proceeds of sale in the event of a default. A common way to get lenders to finance multi-family deals that cannot immediately be sold to the secondary market. Pi Either what you wear late at night, or a Participating Jurisdiction under the HUD HOME program. A PJ is a local or state government eligible to contract directly with HUD for HOME funds. Smaller cities must subcontract from state government agencies. PMI See"mortgage insurance." Prequalification The process of assisting a homebuyer in determining if they qualify for conventional and/or subsidy loans. This typically involves a credit check, verifying income and asset information, and evaluating debt, income, and credit information in relation to lender underwriting standards. The process typically determines: 1) if a borrower has good enough credit to borrow, and 2) approximately how much can be borrowed at certain interest rates and loan terms. 7 Purchase-Rehab Program See "acquisition-rehab." Qualifying Ratios See"underwriting ratios." RTC—Resolution Trust Corporation A quasi-public, federally chartered corporation that was charged in the early 1990s with selling off assets acquired by the government from bailed-out lenders that were federally insured. Rent Subsidies Term typically used to describe HUD's Section 8 program, which subsidize, the rent of low-income tenants in privately owned apartments and are typically administered by local housing authorities. There are two types of subsidies with only slight technical differences—certificates and vouchers. Generally tenants pay 30% of income for rent and utilities and HUD pays the rest directly to the landlord. Some other HUD funding programs for supportive housing and special needs housing can be used for rent subsidies. Some local governments sometimes provide rent subsidies or stipends with their own funds. Rural Housing Service A division of the U.S. Department of Agriculture that provides housing grants and loans to housing projects in small cities and rural areas, similar to programs of HUD in urban areas. Section 8 See"rent subsidies." Section 502 A program of the Rural Housing Service that provides low-income borrowers with direct low-interest loans or loan guarantees to buy a new or existing home. The guarantors are used as an incentive for private, institutional lenders to make home purchase loans at interest rates slightly below market. Section 502 loans are also sometimes originated as low-interest second mortgage loans made in tandem with first mortgage loans from private lenders. Secondary Market Collectively, the companies and government institutions that buy mortgage loans from lenders that originated them. A large number of single-family mortgage loans and some multifamily loans are sold to the secondary market, even through originators may still service many of the loans (see "servicer"). 8 Secondary Financing A term used to describe any financing used in conjunction with first mortgage loans from conventional financing institutions—for example, a down payment grant, a deferred payment loan, or an amortizing second mortgage loan. Self-Sufficiency Programs A loosely defined term used to describe various programs that assist the homeless,people on welfare or public housing tenants in getting training, day care and employment. HUD funds or promotes several self-sufficiency programs for public housing tenants and tenants with HUD rent subsidies. Servicer Or"loan servicer." A company that collects payments due on mortgage loan, often the lender that originated the mortgage loan, even if the lender sold the loan to another entity. Servicing The act of collecting loan payments, accounting for them, making reports and managing escrowed funds for taxes and insurance. Settlement See"closing." Soft Costs A jargon term for non-bricks-and-mortar costs of a real estate development project. Includes architectural costs, surveys, appraisals, other fees, holding costs, etc. Soft Money A jargon term for subsidy funds from public or charitable sources used in a real estate development project. There are degrees of"soft." The softest funding consists of grants and deferred payment loans. Less soft are low interest, amortizing loans. Soft Second Mortgage See"deferred payment second mortgage." Special Needs Housing A loosely defined term for affordable or no-cost residential facilities for people with special medical problems, the homeless or people enrolled in self-sufficiency programs. In the broadest sense, it includes emergency shelters, longer-term shelters, transitional housing, halfway houses and group homes. Subordinated Loan In single-family mortgage lending, a second or third mortgage loan with a lien that is subordinate to a first or second mortgage loan. In the event of default and foreclosure, subordinated loans are repaid only after other debts with a higher claim have been satisfied. (See "mortgage loan" and"lien.") 9 Subsidy In housing, money put into a deal to lower the monthly debt service on an individual home or in a larger project. Low interest second mortgage loans are the most common source of subsidy. Tax credit investments can also act as a subsidy. Rent subsidies are given to landlords to reduce rents paid by tenants. Three-Two (3/2) Option Underwriting guidelines that allow homebuyers to make a three-percent down payment with their own funds, coupled with a gift from a relative or a two-percent grant or unsecured loan from a nonprofit or government-sponsored program. For example, Fannie Mae will purchase loans from approved lending programs that use this option, if the borrower's income does not exceed 115% of the area median income. Transitional Housing A loosely defined term covering a number of housing facilities that serve the formerly homeless,people trying to get off welfare, or people released from institutions. Usually the term of stay is restricted to one to two years. The most common form is apartments or shared living facilities for the formerly homeless or single female parents with children. When treatment and supervision is involved, a facility is usually called a halfway house or group home. Underwriting The process of evaluating a loan application to determine if it meets credit standards and any other special requirements (as with special loan products for low-income borrowers). The underwriting process determines whether or not a loan will be approved, and on what terms and conditions. Underwriting Ratios Criteria used by lenders to determine how large a loan a prospective borrower can afford. The housing payment ratio (for"front"ratio) is the maximum percentage of monthly household income that can be paid for principal, interest, taxes and insurance (PITI). The installment debt ratio (or"back"ratio) is the maximum percentage of income that can be paid for total installment debt(including PITI, car loans, etc.). Ratios for conventional loans are 28% for PITI, and 36% for all installment debt, often expressed as 28/36. Many special loan products allow ratios of 33/38 or even higher increasing the amount of the monthly payment and, thus, the amount that can be borrowed. Variable-Rate Mortgage Loan A mortgage loan for which the interest rate may change over time in relationship to some index such as the market price of long-term U.S. Treasury obligations. Very Low-Income Household As widely defined by governmental and nonprofit organizations, a household with an income at or below 50% of area median income. See "area median income." 10 Vouchers Or Housing Vouchers. See "rent subsidies." Write-down A colloquial term used to describe a grant from a public or private source used to pay for part of the costs of a real estate development project. The grant is called a write-down because it makes the housing more affordable for tenants or homebuyers. 11 ARTICLE 2. -SALE OF PUBLIC PROPERTY Sec. 1. - Resolution declaring property not needed for public use. Before any lands, the title to which is vested in the city, shall be sold, traded, exchanged, or otherwise disposed of, the city commission shall adopt a resolution at a regular meeting particularly describing the land by metes and bounds or reference to a recorded plat or government survey, its location by street number, if any, a description of all improvements, if any, located upon the land, declaring how the land has been used since it has belonged to the city, why it is no longer needed for public purposes, and containing a statement that the city declares it to be surplus and desires to sell, trade, exchange, or otherwise dispose of it. If the property is valued by a qualified appraiser at a value which is less than two hundred fifty thousand dollars ($250,000.00), a majority vote of the city commission shall be required for such a resolution. If the property is valued by a qualified appraiser at a value between two hundred fifty thousand dollars ($250,000.00) and five hundred thousand dollars ($500,000.00), a four-fifths (4/5) vote of the city commission shall be required to adopt such a resolution. If the property is valued by a qualified appraiser at a value which exceeds five hundred thousand dollars ($500,000.00), a referendum election shall be held to determine whether or not such property should be sold, traded, exchanged, or otherwise subject to disposition. The provisions of this section shall not apply to vacations of streets, alleys, or utility easements, unless any such vacation involves land contiguous to any park. Despite any provision which is or may appear to be to the contrary in this article, however, these provisions shall not apply to lands located within the city community redevelopment area unless the existing or future lands are designated as parks or community facilities, as identified in the city comprehensive land use plan. (Ord. No. 2010-029, § 5(Att. X), 12-14-10) Sec. 2.- Notice of sale. Not less than thirty (30) days, nor more than sixty (60) days, after adoption of such resolution or the affirmative vote of the electors approving the sale or other similar disposition (referred to generally as a "sale" for purposes of this section and section 3, the land shall be offered for sale to the public, and a notice shall be published by the city in the official newspaper for two (2) issues before such date of sale, with the first publication to be made not less than ten (10) days before the date of sale, and the second publication one (1) week after the first, describing which date of sale bids shall be received and protest heard, if any. Sealed bids shall be received, accompanied by cashiers' or certified checks, or other forms of bid deposits approved by the city attorney, payable to the city in an amount equal to at least ten percent of the bid price. The city shall sell for cash to the highest and best bidder, but the city may reject any and all bids. Notwithstanding defects in the frequency of the publication of the notice of sale or in the dates on which the notice of sale was published, all sales of public property previously made by the city prior to the effective date of this section are ratified. (Ord. No. 2010-029, § 5(Att. X), 12-14-10) Sec. 3.- Protests. During the period of not less than thirty(30) days, nor more than sixty (60) days, intervening between the adoption of the resolution and the date of sale, taxpayers and electors of the city may protest or object to the sale, or propose other public uses for the property. The city commission may rescind its former action and repeal the resolution declaring that the property is not needed for public use. If before the date of the execution of a contract for the proposed sale, a petition is filed with the city clerk signed by five (5) percent of the electors (based on the number of electors registered to vote in the last preceding municipal Page 23 election) objecting to the sale, no such sale shall be made until the sale of the property has been approved by a majority of the voters at a special election, which shall be called by the city commission by resolution. This provision shall not apply if the sale has already been authorized by referendum approval of the electors of the city. (Ord. No. 2010-029, § 5(Att. X), 12-14-10) Sec.4.- Power to sell. Subject to the restrictive provisions of this article, the city commission is empowered to sell or dispose of any lands, improvements, public buildings, parks or other lands now owned or subsequently acquired by the city. The deed of conveyance may place such conditions, limitations, and restrictions on the use of such property by the purchasers as the city commission shall deem proper. Except as otherwise specified in section 1 above concerning property valued at less than two hundred fifty thousand dollars ($250,000.00), a four-fifths (4/5) vote of the members of the city commission shall be necessary to approve such sales. This shall not impair the referendum requirement of section 1 above. The above restrictions shall not apply to the sale of cemetery plots in municipal cemeteries. (Ord. No. 2010-029, § 5(Att. X), 12-14-10) Sec. 5. -Sale of surplus real property. (a) Notwithstanding the other provisions of this article, the City of Dania Beach shall have the right to exchange, sell or convey real property acquired by the City of Dania Beach through enforcement or foreclosure of City liens and transfer of Lands Available for Taxes from Broward County, in accordance with the procedures stated in part(b) below. (b) Procedures. The Commission must pass by resolution with a supermajority vote requiring four out of five Commissioners' assent, which resolution must include the following: (1) A determination that the real property is surplus property and acquired by the City in a manner described in part(a) above; (2) An authorization for the city manager to enter into an exclusive listing agreement for a period of six months, with a registered real estate broker, who has obtained a business tax receipt to do business in the State of Florida. The real estate broker shall be selected by lottery from among the qualified brokers and shall be paid a reasonable and customary real estate commission by the seller; (3) An appraisal of the real property by a state certified real estate appraiser with MAI designation; (4) An authorization for the city manager to enter into a contract for sale of the real property and to close the contract for sale, so long as the purchase price is not less than ninety percent (90%) of the appraised value; (5) The contract for sale of the real property executed by the city manager shall be contingent upon approval by majority vote of the city commission at an advertised public hearing held at a regularly scheduled commission meeting. If the fair market value of the surplus real property, as appraised by the state certified appraiser, is greater than $100,000.00 then the contract for sale of the real property shall be contingent upon approval by a supermajority vote requiring four out of five commissioners' assent at an advertised public hearing held at a regularly scheduled commission meeting. (Ord.No. 2010-029, § 5(Att. X), 12-14-10) ARTICLE 3. - LEASES Page 24