HomeMy Public PortalAbout191.4 - Housing and Community Development - General - Home Investment Partnership ProgramHousing Department Section 191.4
Policies and Procedures Manual Page 1
191.4 SUBJECT: HOME INVESTMENT PARTNERSHIP PROGRAM
:1 OBJECTIVE:
To help expand the supply of decent, safe, sanitary and affordable housing, with
primary attention to rental housing for very low- and low-income families within the
jurisdictional boundaries of the City of Orlando.
:2 AUTHORITY:
This procedure amended by City Council February 21, 2005, Item A7.
:3 DIRECTION:
Housing Division Manager under the supervision of the Housing Director
:4 METHOD OF OPERATION:
A. HOME funds shall be awarded as payback or deferred (forgivable) loans. Loans
shall be awarded with security, typically a lien, and may be subject to foreclosure
or repayment in the event that the recipient does not fulfill the conditions of the
assistance. The City may waive normal documentation such as appraisals,
surveys, applicable title policies and the like as a part of the closing. Payback
loans may be awarded with below market interest rates based on the needs and
financial feasibility of the project or without interest and with payment of
principal after a predetermined period of affordability.
B. As a recipient of HOME funds, the City is required to set aside a minimum of
15% of each allocation to support housing developed, owned, or sponsored by
Community Housing Development Organizations (CHDOs). HOME funds that
are awarded to CHDOs may be distributed through a competitive or non-
competitive process and through one of the following approaches:
Open-door - A CHDO submits project idea and development proposal to the
City. The City may accept, reject or return the proposal for additional work
and resubmittal.
Recruitment - The City develops a project idea for development and recruits
a CHDO to act as developer, sponsor or owner.
Request for Proposal - The City seeks proposals for development of a
specific housing project from some or all existing CHDOs.
C. The City may assign all or a part of its HOME funds to specific
programs/activities that fulfill its housing goals and objectives. If there are
remaining funds, the City shall distribute those funds through an on-going
Request for Proposals (“RFP”) process, which accepts, on a monthly basis,
project proposals consistent with applicable federal regulations for the specific
activities that are outlined in the HOME program description. The City may
contract with outside loan underwriters and/or other financial consultants to help
devise the RFP, application forms, or other appropriate documents, and to review
proposals or relevant portions thereof regarding the feasibility, creditworthiness,
and economic viability of proposed projects. In addition, the City may contract
with an outside financial consultant with expertise in affordable housing lending
Housing Department Section 191.4
Policies and Procedures Manual Page 2
to administer HOME funds that are set aside for distribution as loans. Projects
submitted in response to a HOME RFP may be funded through the CDBG or
SHIP program if the project meets eligibility criteria and is recommended for
funding by the SHIP/HOME Selection Committee.
D. Proposals are reviewed for compliance, feasibility, cost effectiveness,
demonstrated capacity of the proposer to perform the job, and other appropriate
criteria as determined by the Housing Department and the Office of Legal
Affairs.
E. Proposals for the HOME Program are reviewed by a committee known as the
SHIP/HOME Review Committee. This Committee is comprised of City staff
persons, one or more CDBG Review Committee members, a member of the
Municipal Planning Board, and the City's loan underwriters and/or other financial
consultants, or representatives from other organizations that may provide
expertise on a given project. The committee shall review all eligible proposals
and make funding recommendations to City Council for final action.
F. City Council shall review the recommendations, which would include the
amount of funding for each project and the terms of the awards.
G. Funding levels and descriptions of the approved projects are entered into the
Department of Housing and Urban Development’s Integrated Disbursement
Information System. Documents identifying the activities selected are prepared
and submitted to the U. S. Department of Housing and Urban Development.
:5 FORMS:
As developed from time to time by the Housing Department and the Office of Legal
Affairs as part of the RFP process.
:6 COMMITTEE RESPONSIBILITIES:
As set forth above.
:7 REFERENCE:
Title II, Subtitle A of the Cranston-Gonzalez National Affordable Housing Act. 24
CFR Part 92. Procedure adopted by City Council as amended October 30, 1992, Item
KK; amended April 19, 1993, Item VV; amended August 26, 1996, Item 7-B; amended
September 29, 1997, Item 3-YY; amended October 13, 2003, Item A3; amended
February 21, 2005, Item A7.
:8 EFFECTIVE DATE:
This procedure effective February 21, 2005.