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Resolution 2022-32188 RESOLUTION NO. 2022-32188 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FY 2022, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG) PROGRAM IN THE AMOUNT OF $941,433; THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM IN THE AMOUNT OF $676,153; AND HOME AMERICAN RESCUE PLAN (HOME-ARP) FUNDS IN THE AMOUNT OF $1,630,667; AND FURTHER AUTHORIZING THE CITY MANAGER TO: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE ONE-YEAR ACTION PLAN TO HUD; (3) MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLAN); (4) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS AND INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG, HOME, AND HOME-ARP PROGRAM FUNDS. WHEREAS, the City is an entitlement recipient of Federal formula HUD grant programs as follows: Community Development Block Grant (CDBG) funds, and HOME Investment Partnerships (HOME)funds; and WHEREAS, the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, the One-Year Action Plan for Federal funds is a requirement under the U.S. Department of Housing and Urban Development (HUD) formula grant programs, including the CDBG and HOME Programs; and WHEREAS, the City must submit its FY 2022 Action Plan to HUD by August 15, 2022; and WHEREAS, the One-Year Action Plan for FY 2022 is based upon the City's Federal entitlement of$941,433.00 in CDBG funds and $676,153.00 in HOME funds; and WHEREAS, the planning phase was initiated by the City on January 24, 2022, with the issuance a Request for Proposals (RFP)for CDBG, HOME and HOME-ARP program funds; and WHEREAS, a maximum of 15 percent of the City's CDBG allocation, or$141,214.00, may fund public service activities; and WHEREAS, the resulting CDBG recommendations for Public Services, incorporated into the One-Year Action Plan for FY 2022 are as follows: $12,000 for UNIDAD of Miami Beach - Project Link; $35,000 for Boys & Girls Club of Miami-Dade aftercare and summer camp; $10,000 to Starting Now for credit counseling services; and $75,500 to Neighborhood Housing Services of South Florida -WOW Miami Beach; and WHEREAS, the City's Grocery Assistance Program will be funded utilizing a total of $65,783.82 from prior year unexpended CDBG Public Services funds and $8,714 in 2022 Public Services funds, for a total of$74,497.82; and WHEREAS, $179,875.00 in 2022 CDBG funds will be allocated to the Housing Authority of the City of Miami Beach (HACMB) for the replacement of the seawall at 8127 Crespi Blvd., in support of affordable housing, a priority need identified in the Consolidated Plan; and WHEREAS, $432,058.00 in 2022 CDBG funds and$204,125.67 in prior year CDBG funds will be utilized by the City for to acquire scattered site condominium units to be added to the City's affordable housing portfolio; and WHEREAS, 20 percent (20%) of the City's CDBG allocation ($188,286.00) will be allocated to the planning and administration of the Program; and WHEREAS, the City will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.)for the provision of HUD-mandated fair housing services in the amount of$20,000, utilizing CDBG planning and administration funds; and WHEREAS, no applications were received for HOME funds during the RFP process; and WHEREAS, the Administration is recommending $500,000.00 in HOME funds be allocated to the HACMB for the replacement of the seawall at 280-300 South Shore Drive and that $74,731.00 in HOME funds be allocated to homebuyer assistance and homeowner rehabilitation; and WHEREAS, this use will further leverage funds to increase the number of affordable owner-occupied housing units in the City while promoting homeownership among workforce personnel who would otherwise be priced out of the market; and WHEREAS, the City is normally required to set-aside a minimum of 15% of its HOME funds allocation to a qualified Community Housing Development Organization (CHDO) project; however, HUD has issued a temporary suspension of the 24-month commitment requirement for the CHDO set-aside funds through December 31, 2023; and WHEREAS, a CHDO is a private nonprofit, community-based housing development organization that has identified the development of affordable housing as its primary mission and has the capacity to develop affordable housing; and WHEREAS, a CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience; and WHEREAS, HOME funds may be used to provide special assistance to CHDOs including up to five percent of the City's allocation for general operating assistance to CHDOs; and WHEREAS, the Miami Beach Community Development Corporation (MBCDC) was the only agency to submit an application to the City for CHDO certification during the 2022 RFP cycle; and WHEREAS, $33,807.00 will be awarded to MBCDC for CHDO operating expenses; and WHEREAS, a 10 percent of the City's HOME allocation ($67,615.00) will be allocated to the planning and administration of the Program; and WHEREAS, on January 20, 2022 the Mayor and Commission approved Resolution No. 2022-31979, approving the HOME-ARP Allocation Plan; and WHEREAS, the resulting HOME-ARP recommendations for Supportive Services are as follows: $46,866.00 for the Legal Services of Greater Miami - North Beach Homeless Prevention Program and $183,801.00 for the Legal Services of Greater Miami - Eviction Defense Project; and WHEREAS, $1,400,000.00 in HOME-ARP funds will be allocated to the HACMB for the construction of The Heron, a 20-unit new construction permanent supportive housing development for elderly persons with special needs; and WHEREAS, the period of performance for the HOME-ARP funding is through 2030; and WHEREAS, with the award of these applications, a balance of $277,912 will remain to utilize on future projects as needs arise; and WHEREAS, the Citizen Participation Plan is a required component of the City's management of federal funds and stipulates how the residents participate in the decision-making process for the use of said funds; and WHEREAS, the City advertised a Notice of Public Hearing and Public 30-day Comment Period (April 4, 2022 — May 4, 2022) for community development needs with a Public Hearing held on April 19, 2022 at the Affordable Housing Advisory Committee meeting via Zoom; and WHEREAS, the City advertised a Notice of Public Hearing and Public 30-day Comment Period (May 2, 2022—June 1, 2022)for the draft One-Year Action Plan for FY 2022 with a Public Hearing held on May 19, 2022 via Zoom; and WHEREAS, a final Public Comment Period (June 6, 2022 — July 5, 2022) for the Action Plan was advertised on June 5, 2022; and WHEREAS, the City Manager is the HUD-designated agent for all formula grants, and executes the grant applications, agreements, and other applicable HUD documents on behalf of the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopt the City's One-Year Action Plan for federal funds for FY 2022, which includes the budgets for the Community Development Block Grant (CDBG) program in the amount of$941,433; and the Home Investment Partnerships (HOME) program in the amount of $676,153; and HOME American Rescue Plan (HOME-ARP) funds in the amount of$1,630,667; further, authorize the City Manager to: (1) execute all applicable documents related to the appropriation and allocation of these program funds; (2) submit the One-Year Action Plan to the HUD; (3) make minor non-substantial changes to the resulting agreements (which do not affect the purpose, scope, approved budget and/or intent of the plans); and (4) extend the expiration dates of said agreements when necessary; and further authorize the City Manager and City Clerk to execute agreements for sub-recipients of CDBG and HOME program funds and City interdepartmental agreements for recipients of CDBG, HOME and HOME-ARP program funds. PASSED and ADOPTED this as day of -71 _, 2022. ATTEST: • Dan Gelber, Mayor JUN 2 3 1022 Rafael E. Granado, City Clerk 9 SA . =1hE0RF v*, fig . A • APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION i_22 City Attorney Date Resolutions-C7 I MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: June 22, 2022 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FY 2022, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM IN THE AMOUNT OF $941,433; THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM IN THE AMOUNT OF $676,153; AND HOME AMERICAN RESCUE PLAN (HOME-ARP) FUNDS IN THE AMOUNT OF $1,630,667; AND FURTHER AUTHORIZING THE CITY MANAGER TO: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE ONE-YEAR ACTION PLAN TO HUD; (3) MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLAN); (4) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS AND INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG, HOME,AND HOME-ARP PROGRAM FUNDS. RECOMMENDATION The administration recommends approving the Resolution. BACKGROUND/HISTORY The Five-Year Consolidated Plan is a federal requirement for all U.S. Department of Housing and Urban Development (HUD) entitlement cities. The City of Miami Beach is a HUD- designated entitlement city as determined by the decennial census information on population growth lag, over-crowding, age of housing stock, and poverty. The City of Miami Beach has been a Community Development Block Grant(CDBG)entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD's grant programs. HUD requires each entitlement community to submit an Page 341 of 1232 annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. The City must submit its FY 2022 Action Plan to HUD by August 15, 2022. ANALYSIS The Five-Year Consolidated Plan is a federal requirement for all U.S. Department of Housing and Urban Development (HUD) entitlement cities. The City of Miami Beach is a HUD- designated entitlement city as determined by the decennial census information on population growth lag, over-crowding, age of housing stock, and poverty. The City of Miami Beach has been a Community Development Block Grant(CDBG)entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD's grant programs. HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. The City must submit its FY 2022 Action Plan to HUD by August 15, 2022. ANALYSIS The allocations for FY 2022 are as follows: Community Development Block Grant Funds FY 2022 HUD Entitlement $941,433.00 Less administrative allowance (20%) ($188,286.00) Less Public Services allowance (15%) ($141,214.00) Net FY 2021 funds $611,933.00 HOME Funds FY 2022 HUD Entitlement $676,153.00 Less administrative allowance(10%) ($67,615.00) Net available for project allocation $608,538.00 On January 24, 2022, the Administration issued a Request for Proposals (RFP) for CDBG, HOME and HOME ARP funds. The submission deadline was February 23, 2022. To ensure clarification and proactively address questions relating to the completion and submission of the application, a pre-submission meeting was held on February 2, 2022 to review the RFP with prospective applicants. On January 20, 2022 the Mayor and Commission approved resolution 2022-31979 approving the HOME-ARP Allocation Plan as follows: HOME-ARP Funds Total HOME-ARP Allocation $2,245,387.00 Page 342 of 1232 Administrative allowance (15%) $336,808.05 Rental Housing $1,400,000 • Supportive Services $396,309.60 Non-Profit Capacity Building $112,269.35 CDBG 2022 Funding A maximum of 15 percent of the City's allocation, or $141,214.00, may fund public service activities. Public service activities include meals programs, rent assistance, childcare programs, etc., for income-eligible participants. The City received applications from four public service providers. Two applications were received for affordable housing projects from the Housing Authority of the City of Miami Beach (HACMB). The Administration is recommending funding all CDBG applications, with the exception of funding one of the HACMB's applications using HOME funds instead. The administration is recommending allocating those CDBG funds to property acquisition. This activity can be completed quicker, thus ensuring the City will be in compliance with the CDBG timeliness requirements for the 2022 program year. Below are the recommendations for the CDBG Program. Project LM I Project Beneficiaries Funding Public Services UNI DAD of Miami Beach-Project Link 180 $12,000.00 Boys and Girls Club of Miami-Dade—Aftercare and 320 $35,000.00 Summer Camp Starting Now-Credit counseling 10 $10,000.00 Neighborhood Housing Services of South Florida- 80 $75,500.00 WOW Miami Beach OCS Grocery Program 96 $8,714.00 Total Funding $141,214.00 Affordable Housing Housing Authority of the City of Miami Beach-8127 12 $179,875.00 Crespi Blvd Seawall CMB Property Acquisition 2 $432,058.00 Total Funding $611,933.00 The City's Grocery Assistance Program will be funded using 2022 CDBG public services funds and prior year unexpended public services funds as detailed below. Funding Proposed Original Activity Source Amount Activity Public Services UNI DAD of Miami Beach- Project CDBG FY2019 $4,530.00 Link CMB -Grocery Program $5,068.19 CMB-Grocery Program CDBG FY2020 $913.63 OCS Grocery Rain Parents- Childcare Services $13,000.00 Program Police Athletic League — CDBG FY2021 $14,000.00 CMB- Prosperity Initiative $28,272.00 CDBG FY2022 $8,714.00 Total $74,497.82 Page 343 of 1232 Additional unexpended prior year CDBG funds will be allocated to property acquisition as follows: Funding Proposed Original Activity Amount Source Activity • Housing Authority CDBG FY2019 $200,000.00 Miami Beach PAL-Youth CDBG FY2019 $2,727.25 CMB Property Leaders Academy - Acquisition Planning and Administration CDBG FY2016 $11.68 Planning and Administration CDBG FY2017 $1,386.74 Total $204,125.67 Below is a summary of each project recommended for CDBG funding: UNIDAD of Miami The program ensures that elderly residents are connected Beach-Project Link to needed services by providing appropriate information and referrals. Services consist of needs assessments, information/referral to a network of human services providers and case management. CMB Office of Housing The program provides monthly grocery deliveries to elderly and Community residents. General Funds are leveraged to ensure 96 Services(OCS)- elderly resident households receive pantry essentials and Grocery Assistance good nutritional supports critical for a positive quality of life. Program Starting Now— Credit This program will provide low- to moderate-income Miami Counseling Beach residents with a financial education and services to repair and improve their credit. Neighborhood Housing NHSSF will provide HUD-Approved Homeownership Services of South Classes and Counseling for low- to moderate-income first- Florida (NHSSF)- time homebuyers in the City of Miami Beach. NHSSF's WOW Miami Beach program addresses an urgent housing crisis and is geared towards mortgage readiness, homeownership, and financial capability to include budgeting and saving. Boys and Girls Club of The programs offer a safe structured environment with Miami-Dade—Project evidence-based activities for children and youth from Learn and Great kindergarten through twelfth grade. The activities include: Futures for Teens Science, Technology, Engineering, and Math (STEM), literacy, homework assistance, music, arts & crafts, physical fitness, intramural sports, family engagement, enrichment activities, health education, mentoring and college readiness, employability skills, and college visits for older teens. Housing Authority of the Funding will be used to replace the seawall at 8127 Crespi City of Miami Beach Boulevard. This site is the location of a future affordable (HACMB)— The Egret housing project, The Egret, a 12-unit new construction permanent supportive housing development for elderly persons with special needs. All of the units shall be rented to households (person or persons)with incomes at or below 60% of the Area Median Income (AMI). Of the 12-units, Page 344 of 1232 three units will be rented to households (person or persons) with incomes at or below 25% of the Area Median Income (AMI). City of Miami Beach— Funding will be used to acquire scattered site condominium Property Acquisition units. These properties will be added to the City's affordable housing portfolio to be rented to households earning at or below 80% AMI. Two or three units will be acquired based on funding available. In addition to the funding recommendations above, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.)for the provision of HUD-mandated fair housing services in the amount of $20,000. HOPE, Inc. would continue providing housing education workshops to residents and participate in outreach events citywide. Program administration funds will fund this mandated service. Although not currently funded by the City, HOPE, Inc. also investigates allegations of Fair Housing Act violations on behalf of residents who believe they are victims of discrimination. HOME 2022 Funding No applications were received for HOME funds during the RFP process. The Administration is recommending HOME funds be allocated to the HACMB and the balance of funds to homebuyer assistance and homeowner rehabilitation. This use will further leverage funds to increase the number of affordable owner-occupied housing units in the City while promoting homeownership to as many income-eligible applicants on the City's waitlist in addition to improving existing homeowners' property conditions. The HOME Program can assist households earning up to 80% AMI and the program can be combined with State Housing Initiatives Partnership (SHIP)funds, upon availability. Below is a breakdown of the FY 2022 HOME projects: Low-Mod Income Project Funding Beneficiaries Affordable Housing Housing Authority of the City of Miami Beach- 119 $500,000.00 Vista Breeze Seawall HomebuyerAssistance& Homeowner 2 $74,731.00 Rehabilitation CHDO Operating Miami Beach Community Development Corporation $33,807.00 The HOME Program rules require each entitlement community reserve a minimum of 15%of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO). A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable housing as its primary mission and has the capacity to develop affordable housing.A CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience. However, please note that HUD has issued a temporary suspension of the CHDO reservation through December 31, 2023. Page 345 of 1232 HOME funds may be used to provide special assistance to CHDOs. Up to five percent of HOME funds may be used to provide general operating assistance to CHDOs. Below is a summary of each project recommended for HOME funding: Community Housing MBCDC was the only agency to submit an application to the City Development for CHDO certification during the 2022 RFP cycle. . HOME Organization Funds CHDO funds may be used for operating assistance, which can be utilized for costs associated with capacity building. CHDO's must apply for re-certification on an annual basis in order to receive set-aside funds or operating funds. HomebuyerAssistance The high cost of real estate in the City puts homeownership out &Homeowner of reach for many, especially low- to moderate income families. Rehabilitation . This program helps fill the funding gap, with up to $40,000 for down payment assistance for first-time homebuyers. The funds awarded to eligible residents are secured by a lien and restrictive covenant securing the City's funds that are subsequently forgiven after 15 years. The program also provides assistance to existing homeowners needing repairs to their homesteaded property to maintain a safe,decent and sanitary living environment. Housing Authority of the Funding will be used for seawall replacement and installation of City of Miami Beach infrastructure at 280-300 South Shore Drive. This vacant site is (HACMB)— Vista the location of a future affordable housing project, Vista Breeze, Breeze a new construction elderly affordable housing development.All of the units shall be rented to elderly households (person or persons) with incomes at or below 80% of the Area Median Income (AMI). HOME-ARP Funding The City received two applications for supportive services and one application for rental housing.The Administration is recommending funding all applications as follows: Beneficiaries Total Funding Affordable Housing Housing Authority of the City.of Miami Beach-The 20 $1,400,000.00 Heron Supportive Services Legal Services of Greater Miami-North Beach 60 $46,866.00 Homeless Prevention Legal Services of Greater Miami- Eviction 380 $183,801.00 Defense Project The period of performance for the HOME-ARP funding is through 2030. With the award of these applications, a balance of$277,912 will remain to utilize on future projects as needs arise. Below is a summary of each project recommended for HOME-ARP funding: Legal Services of The North Beach Homelessness Prevention Project will assist Greater Miami-North individuals and households who are homeless, at risk of Beach Homeless homelessness, and other vulnerable populations, by providing Prevention direct legal services to remove barriers to housing access and Page 346 of 1232 stability and reduce homelessness in the City of Miami Beach, with a focus on North Beach(zip code 33141). Legal Services of This program will assist low to moderate-income individuals Greater Miami-Eviction citywide by providing legal assistance to (1) tenants in private, Defense Project public, and subsidized housing who are behind on rent and at risk of eviction and (2)tenants living in public housing who are behind on their utilities and are at risk of losing their subsidized housing. Services will include assistance with public benefits, tax controversies, and consumer issues. In response to the deepening housing crisis this program will provide services citywide, with a focus on tenants' rights and eviction defense and will place Legal Services staff in the community to conduct intake and client education for greater client access. Services will be available to Miami Beach residents. Housing Authority of the Funding will be used toward the construction of The Heron, a 20- City of Miami Beach unit new construction permanent supportive housing (HACMB)— The Heron development for elderly persons with special needs. All of the • units shall be rented to households (person or persons) with incomes at or below 60% of the Area Median Income (AMI). Of the 20-units, four units will be rented to households (person or persons) with incomes at or below 28% of the Area Median Income (AMI). The project location will be in North Beach (33141). The Heron project is currently in permitting with construction expected to commence in late 2022. In accordance with the Citizen Participation Plan, the City advertised a Notice of Public hearing and Public 30-day Comment Period (April 4, 2022 — May 4, 2022) for community development needs. The public hearing was held on April 19, 2022.The City advertised a Notice of a 30-day Public Comment Period and Public Hearing (May 2, 2022 — June 1, 2022) for the draft Action Plan. The Public Hearing was held on May 19, 2022.A final Public Comment Period (June 6, 2022—July 5, 2022)for the Action Plan was advertised on June 5, 2022. As of this writing, one comment has been received from HACMB requesting that unallocated HOME-ARP funds be allocated to The Heron project to assist the HACMB in addressing the project funding gap experienced due to increased construction costs. Public comments received will be included in the submission of the Action Plan to HUD for final review and approval. SUPPORTING SURVEY DATA n/a FINANCIAL INFORMATION All activities will be funded with federal CDBG, HOME and HOME-ARP funds. CONCLUSION The Administration recommends approval of the One-Year Action Plan for FY 2022 to allow the City to draw entitlement funds to assist income-eligible persons with services and housing, and to ensure the timely and compliant expenditure of HUD funds. Page 347 of 1232 Applicable Area Citywide Is this a "Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Mobility-Support affordable, compatible workforce housing. Legislative Tracking Housing and Community Services ATTACHMENTS: Description D Resolution Page 348 of 1232