City of Miami - Community Development

3. Household income is less than or equal to, 80% of median income adjusted for family size. However, in the case of a rehabilitation funded by SHIP funds, the maximum household income can be of 120% of median income adjusted by family size. The source of fund selection is left solely to the discretion of the Department of Community Development.

4. Property owners must be able to afford a monthly payment based on income and current debt.

5. Owners must be current in their mortgage payments (if any), insurance and taxes.

A “household” is defined as immediate members of a family living together who may be expected to contribute to the income of the house for a substantial period of the term of the loan. Households may also include unmarried adults living in the same unit as the applicant if they are expected to contribute to the income of the household for a substantial period of the term of the loan.

What are the loan terms?

Maximum loan of $35,000 at 3% non-amortizing for 10 years. It is a deferred payment loan whereas if the homeowner continues to own and reside in the property for the next 10 years, the entire principal and accrued interest will be forgiven.

What type of properties are covered under this program?

The following type of properties must be occupied by the owner:

1. Single family residence

2. Townhomes (restrictions apply)

3. Condominiums/ apartments (restrictions apply)

How do I apply for the housing rehabilitation program?

§ The availability of funds and the opening of the application period will be advertised in a general circulation newspaper with citywide coverage at least 30 days prior to the acceptance of applications.

§ The City will establish a period of not less than two weeks for the receipt of applications. All applications received will be logged in. Further instructions on when and where to send the applications will be posted in the newspaper advertisement and in the Department of Community Development’s website.

How does the City go about creating the waiting list?

Once the application period expires, all applications are logged in a spreadsheet. A random number generation tool will be utilized to select the order of the waiting list.

How would I know which is my waiting list number?

Once the waiting list is established, homeowners will be informed, in writing, of their waiting list number. Please be advised that receiving a waiting list number does not directly qualify the homeowner for the assistance. When the homeowner’s waiting list number comes up, the City will schedule an interview with the homeowner to go over the required documentation and to determine whether the housing unit and homeowner are eligible for the program.

Are there any preferences? How do you handle these preferences?

Preferences:

1. Disabled.

2. Elderly (62 years or older).

3. Home owners whose properties are located within any of the Neighborhood Development Zones (“NDZ”) or Model Blocks (“MB”).

4. No disability, non-elderly, does not reside within any NDZ or MB.

Once the waitlist is generated, the categories above will be selected in the order of preference. Therefore, even if a no disability, non-elderly homeowner is the first one in the waitlist, if there is any other homeowner who is disabled or elderly, this homeowner will be selected first.

Priority:

Supersedes any type of preference

1. Applicants with Code Violations.

Is having a Homestead Exemption a requirement for this program?

Yes.

What are considered eligible repairs?

All repairs necessary to bring the house to a decent, safe, and sanitary condition. The following are the eligible trade areas: Plumbing, Electrical, Roofing and Structural.

Eligible Costs

a. The actual cost of rehabilitation necessary to bring the property to a decent, sanitary standard.

b. The actual cost of rehabilitation necessary to bring the property into compliance with the South Florida Building Code (i.e. correct code violations).

c. The actual cost of rehabilitation to correct or remove incipient violations including all physical conditions of the property which, if not repaired, would deteriorate into actual violations of the decent safe, and sanitary standards of the South Florida Building Code within two years.

d. The cost of building permits and related fees required to carry out the proposed rehabilitation work, including, but not limited to, architectural and engineering fees.

e. The City will also assist residents who are disabled and/or elderly who need assistance due to their physical limitations. Under this circumstance, repairs may include wheelchair ramps, wheelchair accessible showers, lower light switches and wider doorways.

Will the rehabilitation work cover any and all items of my preference?

No. the rehabilitation program is designed to specifically address repairs necessary to bring the house to a decent, safe, and sanitary condition. Upgrades to your home that are not deemed necessary by the Housing Program Manager will not be considered for rehabilitation.

Ineligible Costs

a. Work so extensive as to be equivalent to new construction or re-construction of the property.

b. General property improvement for ‘cosmetic’ reasons.

c. The repair or construction of swimming pools, but not the cost to fill in or eliminate them from the property.

d. Materials, fixtures, equipment, or landscaping of a type or quality which substantially exceeds that of customarily used in Miami for property of the same general type as the property to be rehabilitated.

e. Purchase, installation, or repair of furnishings.

f. Cost of acquiring the property to be rehabilitated.

g. Any reimbursement of work done or contracted for, either verbally or in writing, prior to approval of the financial assistance.

Who decides what type of work needs to be done?

The City of Miami Department of Community Development’s Inspection Services Unit will visit/ enter the homeowner’s residence and will create a scope of work detailing all the needed repairs.

How much will it cost me to have the repairs done?

There is no cost to the property owner to have the repairs done. The program requires the property owner to enter into an agreement with the City of Miami. The City will provide the funds to finance the repairs up to $35,000 (Please refer to “loan terms” above).

Can the homeowner perform his/her own repairs as part of this program?

No. The City of Miami will not finance any rehabilitation cases where the applicant performs any portion of the work.

Who selects the general contractor to do the job?

The general contractor is selected through a bidding process. Once the scope of work is provided to the homeowner, the homeowner is responsible for procuring three (3) bids from general contractors and submitting such bids to the City. Please note that all general contractors will need to meet City of Miami requirements for their bids to be accepted.

What happens if I have any types of liens attached to my property?

The homeowner is responsible for curing any liens placed on the property prior to being able to participate in the rehabilitation program.

What if my property’s rehabilitation cost does not reach the $35,000 limit offered by this program? Can the property qualify for a lesser amount?

Yes, the maximum amount of assistance is $35,000; however, if your home only needs $15,000 in repairs, your loan will only be processed for the amount needed to rehabilitate your property.

What can I do if my property’s rehabilitation cost exceeds the $35,000 limit offered by this program?

The homeowners may decide to pay for the difference, but this exception will be reviewed on a case-by-case basis (restrictions apply).

Why does the City places a 10-year lien in my property?

A lien is placed against the property to ensure the qualified property owner continues to reside in the unit. In addition, in case the homeowner decides to sell the property, the City will be informed of such event and will proceed with its collection plan as necessary.

What if problems arise after the rehab has been completed?

The City requires contractors to provide a one year warranty on labor and materials and a 5-10 year warranty on a new roof (depending on the materials being used). If a problem occurs after the work is completed, please contact the contractor to resolve the problem. Please note that the City only facilitates the funding for the rehabilitation. Homeowners enter into a contract with the general contractor; therefore, any problems the homeowner may experience after the rehabilitation has been completed need to be addressed with the general contractor.