Staff recommends the Carver Heights/Montclair Area CRA Commission approve execution of a Purchase and Sales Contract with M & I Regional Properties, LLC. for redevelopment of two multi-family residential properties.
The subject properties include two residential parcels. One parcel at 2212 Mispah Avenue, contains two triplexes (i.e. 3 residential units) and one storage unit. The other parcel is at 2213 Simmons Avenue, which also contains two triplex units, and is adjacent to 2212 Mispah Ave. There are a total of 12 multi-family units between both properties. The properties are surrounded by low and fixed income families and individuals. For several years, the Mispah, Simmons, and Olivet areas have been troublesome for the surrounding community. With the absence of adequate property management and appropriate tenant background screenings etc., the complex became the center of high crime and deplorable housing conditions. As a result of the conditions in the immediate area, staff has continuously worked to reverse the alarming trend. Over the past year, staff demolished two rundown housing units at 2355 Mispah and 2359 Mispah in an effort to reduce vagrant activity and improve the overall appearance of the area. Last year, the subject properties went into foreclosure. As a result, CRA staff diligently worked for over a year to negotiate with the bank in order to consider a Contract for Sale and Purchase of the units. After one year, the bank finally secured the property through foreclosure.
As part of the CRA redevelopment plan initiative to provide Housing Assistance Programs, CRA staff is initiating an innovative approach to housing assistance through a program called: The Housing Incubation Program (HIP).
The HIP is designed to nurture individuals or families until they are financially capable of purchasing a home on one of the available vacant residential lots or infill lots within the CRA area. Staff is concentrating on those individual households at or below 50% of the area median income. Rent will be kept affordable to our HIP clients or tenants. Partner non-profit organizations such as West Leesburg Community Development Corporation, Devereux Kids,
and Lake Community Action Agency will provide support services and tenant referrals for individual family sufficiency based resources.
Applicants will need to be committed to the program and meet the following eligibility criteria:
· Be committed to becoming a First-Time Homebuyer.
· Be Income-Qualified
· Be willing to commit to the time-frame of the program – 4 years maximum
· Be committed to paying rent and other bills, on time.
· Be willing to allow the City of Leesburg to do random inspections of the inside and outside of the property.
· Be willing to follow-through with the mortgage pre-approval process, including, but not limited to: pre-screening, credit analysis, paying off collections & charge-offs, re-establishing good credit and keeping all required documents updated with the Carver CRA and designated partner organizations.
· Be willing to open an IDA (Individual Deposit Account) to save money for deposits, escrows and soft-cost for purchasing a home and quality of life needs.
· Be willing to attend monthly follow-up meetings, to ensure progress towards homeownership and participate in monthly neighborhood meetings.
The City will be the property owner. The identified organizations and agencies will also provide property management assistance. The property will help generate positive revenue to the CRA operational budget in addition to the annual tax increment financing revenue source. For more details on development costs, please see attached Pro-Forma Analysis. Overall, the project goal is to provide safe affordable housing and key sufficiency resources to individual families.
Subsequent to the December 12, 2011 CRA Commission meeting inquiry for additional project information, the CRA Manager with assistance from West Leesburg CDC office manager will provide property management of the complex. Also, staff has identified 12 families interested in participating in the program. (Please review handout list of interested families)
1. Approve the resolution to execute the Contract for Sales and Purchase between the CRA and M & I Regional Properties, LLC
2. Such alternative action as the Commission may deem appropriate
The total purchase price pursuant to the contract is $96,000, which is contingent upon appraisal. Funds are available in the 2008 Revenue Note and will need to be rolled forward into the current fiscal year.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
BE IT RESOLVED BY THE CRA COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Community Redevelopment Agency Commission is hereby authorized to execute the Sale and Purchase Contract with M & I Regional Properties, LLC for the purpose of purchasing the two subject properties for redevelopment.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the CRA Commission of the City of Leesburg, Florida, at a regular meeting held the _23rd____ day of __January_______ 2012.
Carver Heights/Montclair Area
Community Redevelopment Agency