Notice of Recommendation to Award
$10,758,300 Line of Credit 

Pursuant to the issuance of Request for Proposals (RFP) # 2006-01, the North Miami CRA received three (3) proposals from qualified banks to provide the CRA with a Line of Credit (LOC) in an amount up to $10,758,300 that will be used to:

 

• Provide homebuyer training and credit qualification services for prospective homebuyers (approximately $500,000)
• Provide approximately $6,088,000 for a mortgage subsidy/loan program to provide access to the 136 housing units to be constructed at Pioneer Gardens to creditworthy and eligible low to moderate income earners;
• Provide funds to pay a development fee of approximately $4,120,128 to North Miami Housing, Ltd. for the development of the property in its entirety; and
• Provide approximately $50,000 for all issuance related expenses and miscellaneous costs to obtain the LOC.

 

The three respondents to the RFP were Bank of America, Regions Bank, and Wachovia Bank, N.A. The proposals were evaluated by a committee comprised of CRA staff, counsel, and financial advisor and were ranked in the following order based on financial benefit to the CRA:

1. Regions Bank
2. Bank of America
3. Wachovia Bank.

The CRA staff will recommend that the CRA Board, subject to the pending approval to enter into the proposed LOC by Miami-Dade County, authorize the CRA to finalize negotiations and execute the underlying agreements to close on the line of credit with Regions Bank. It will be further recommended that, in the event negotiations are not successful with Regions Bank, the CRA will be authorized to negotiate and execute the underlying agreements to close the line of credit with the other respondents in the order as indicated above. It is anticipated that the CRA staff will be presenting a recommendation to award the LOC at the CRA Board meeting on October 24, 2006.