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LTC 040-2020 Sale of Four Freedoms HouseMI A MI BEA CH OFFICE OF THE CITY MANAGER 040-2020 NO. LTC# ETTER TO CO MMISSION TO: Mayor Dan Gelber and Member FROM: Jimmy L. Morales, City Manage// DATE: January 16, 2020 SUBJECT: Sale of Four Freedoms Hous This Letter To Commission is to advise of the sale of the Four Freedoms House, a 21 O-unit elderly affordable housing complex located at 3800 Collins Avenue, to FFMB Housing Partners on January 15, 2020. Since this is one of the City's largest senior-serving residential properties, City staff contacted Four Freedoms House management this morning when notice of the sale transaction was published in order to inquire about the potential impact to tenants. While the property remains under affordability through the U.S. Department of Housing and Urban Development's Section 8 housing subsidy program for an additional 20 years, the management team advised the City that the new building owners intend to apply to the Low-Income Housing Tax Credit (LIHTC) program to obtain funds to enable a full rehabilitation of the property and maintain its ongoing use as elder- serving affordable housing. Four Freedoms House staff held an informational meeting for tenants on Tuesday, January 14" to explain the recertification process and explain the income qualifications for the LIHTC program. Tenants' income cannot exceed $35,580 annually (60 percent Area Median Income) for a household of one. The Housing Authority of Miami Beach will continue to provide subsidies to eligible tenants. Market rate units will continue to pay the current rent limits. For more information, please see me or contact Maria Ruiz, Department Director, Office of Housing & Community Services. JLM/~LR/MR +