2014-28536 Resolution RESOLUTION NO. 201428536
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO RECAPTURE AND REALLOCATE, RESPECTIVELY,
$119,197.84 OF HOME INVESTMENT PARTNERSHIP (HOME) FUNDS, AND
$509264.79 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDS; AMEND THE FY 2008 THROUGH FY 2013 ACTION PLANS; ISSUE
A NOTICE OF A THIRTY (30) DAY PUBLIC COMMENT PERIOD AND
SCHEDULING A PUBLIC MEETING ON THE PROPOSED
SUBSTANTIAL
AMENDMENTS TO THE CITY'S FY 2008 THROUGH 2013 ACTION PLANS;
REALLOCATE $92,885 AND $26,312.84 OF THE HOME FUNDS TO,
RESPECTIVELY, THE CARRFOUR HARDING VILLAGE PROJECT, AND
THE FY 2014/2015 FUNDING CYCLE; AND REALLOCATE $50,264.79 OF
THE CDBG FUNDS TO THE LONDON HOUSE APARTMENTS PROJECT.
WHEREAS, the City is an entitlement recipient of HUD formula grant programs as
follows: Community Development Block Grant (CDBG) funds, and HOME Investment
Partnership (HOME) funds; and
WHEREAS, CDBG funds are used to provide vital public services, housing activities,
code enforcement, and improvements to public facilities; HOME funds are used for affordable
housing activities, including multi-family rentals and first-time homeownership; 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 Action Plan for Federal funds is a requirement under HUD's formula
grant programs, which include the CDBG and HOME Program; and
WHEREAS, HOME and CDBG stipulate that funds be expended within timeliness
guidelines as delineated in 24 CFR Part 570 and 24 CFR Part 92, among others, and
WHEREAS, Miami Beach Community Development Corporation's (MBCDC) Barclay
Apartments rehabilitation project (the Project), an affordable rental housing property, is behind
schedule for completion; and
WHEREAS, HOME funds, in the amount of $119,197.84, and CDBG funds, in the
amount of$50,264.79, are committed to the Project and have not been expended; and
WHEREAS, not meeting the expenditure deadline will jeopardize the continued
availability of the funds from U.S. HUD; and
WHEREAS, MBCDC has failed to meet established performance deadlines repeatedly,
including the remediation of the Project's 40-year recertification, and the appropriate registration
of the building; and
WHEREAS, the City finds it is necessary to recapture the funds, and award the funds to
other projects; and
WHEREAS, the Carrfour Supportive Housing-Harding Village project was awarded
$92,885, less than the requested amount to complete the project; and
WHEREAS, the balance of $26,312.84 of HOME funds can be added to the FY
2014/2015 annual funding cycle; and
WHEREAS, the London House Apartments project, for which the City of Miami Beach
has taken ownership, has a shortfall in available funds to complete the rehabilitation; and
WHEREAS, the $50,264.79 of CDBG funds will provide funds to bridge the London
House Apartments project rehabilitation shortfall; and
WHEREAS, the resulting CDBG and HOME funds recapture recommendations will be
incorporated into the City's FY 2008 through FY 2013 Action Plans; and
WHEREAS, the City will provide for a thirty (30) day public comment period and a public
meeting on the proposed Substantial Amendments to the FY 2008 through FY 2013 Action
Plans; and
WHEREAS, the City Manager is the designated agent for all HUD formula grants, and
executes the grant applications, grant agreements, and other applicable HUD documents on
behalf of the City.
NOW, THEREFORE, RE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and
authorize the City Manager to recapture and reallocate, respectively, $119,197.84 of HOME
Investment Partnership (HOME) funds, and $50,264.79 of Community Development Block
Grant (CDBG) funds; amend the FY 2008 through FY 2013 Action Plans; issue a notice of a
thirty (30) day public comment period and scheduling a public meeting on the proposed
Substantial Amendments to the City's FY 2008 through FY 2013 Action Plans; reallocate
$92,885 and $26,312.84 of the HOME funds to, respectively, the Carrfour Harding Village
project, and the FY 2014/2015 funding cycle; and reallocate $50,264.79 of the CDBG funds to
the London House Apartments project.
PASSED AND ADOPTED this 1 day of A yrt � 12014.
ATTEST:
CIT CLERK ... ,, ��� MAYO
APPROVED AS TO
INCORP ORATED= J FORM & NGUAGE
��•,. �, &FOR XE UTION
26
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission approving and authorizing the City Manager to recapture and reallocate
CDBG and HOME funds; amend the FY 2008 through FY 2013 Action Plans; issue a notice of a thirty (30) day comment
period and public meeting on the proposed Substantial Amendments to the Action Plans; and reallocate the funds to ensure
compliance with HUD rules and regulations regarding the timely expenditure of funds.
Key Intended Outcome Supported:
Sustainable initiatives. Affordable housing for the labor force.
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2012 Community Satisfaction Survey, 80% of
residents believe the City's standard of living is good and improving. 34% of businesses rated the lack of affordable
housing in Miami Beach for their labor force as their most important challenge.
Item Summary/Recommendation:
As an entitlement community, the City receives an annual allocation of HUD funding. The CDBG and HOME programs have
timeliness requirements regarding the expenditure of funds. HOME funds must be committed to a project within two years of
City's receipt, and expended within five years. CDBG funds must be expended such that the total amount of funds in its
allocation account never exceeds 1.5 times its annual allocation. HUD further requires its entitlement jurisdictions to ensure
that funded activities are carried out in the defined project scope and within the timeframe allowed. The City's Action Plan is
monitored throughout the year to ensure compliance with federal regulations and progress towards the National Objective,
which stipulates that CDBG/HOME-funded services/housing activities must benefit low- and moderate-income persons who
earn at or below 80% of the area median income(AMI).
The City previously awarded $500,000 of FY 2010/2011 HOME funds and $75,018 of FY 2011/2012 CDBG funds to Miami
-Beach Community Development Corporation's (MBCDC) Barclay Apartments project. The funds were to be utilized to
modernize the elevator and upgrade the electrical systems to meet the requirements of the 40-Year Building Re-Certification.
MBCDC has already drawn $299,721.94 in HOME funds and $24,753.21 in CDBG funds. City staff reviewed the project and
determined that MBCDC will not be able to complete the project on time to satisfy the HUD timeliness requirement. Although a
Temporary Certificate of Operation (TCO)was issued for the elevator by the Building Department in September 2013, MBCDC
had not been able to complete the "punch list" items that are required in order for the elevator to receive a final closeout of the
elevator permits until March 2014, six months later than promised. Instead, MBCDC had relied on extensions of the TCO to
continue operating the elevator. A portion of the electrical upgrade has been finished but it is not near its completion. Based on
MBCDC's current fiscal and operating conditions the likelihood of on-time completion is minimal.
The Administration recommends the recapture of $119,197.22 of HOME funds and $50,264.79 of CDBG funds from the
Barclay project. The Administration further recommends the reallocation of$92,885 of the HOME funds to Carrfour's Harding
Village project, reallocation of $26,312.84 of the HOME funds to be included in the FY 2014/2015 HOME Program funding
cycle, and reallocation of the $50,264.79 of CDBG funds to the City's London House Apartments. The City recently acquired the
London House Apartments from MBCDC,and will continue its rehabilitation.
Advisory Board Recommendation:
FN/A
Financial Information:
Source of Funds: Amount Account
1 N/A
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Maria Ruiz/Housing&Community Development
Sign-Offs:
Department Director Assistant City Manager City Manager
MLR KGB JLM
. GEt� ITEM C 7U
NW' MIAMIBEACH A
DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSIO MEMORANDUM
TO: Philip Levine and Members of the Cit Commission
FROM: Jimmy L. Morales, City Manager ,
DATE: April 9, 2014
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVI G AND AUTHORIZING THE CITY MANAGER
TO RECAPTURE AND REALLOCATE $119,197.22 OF HOME INVESTMENT
PARTNERSHIP (HOME) FUNDS AND $50,264.79 OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; AMEND THE FY 2008
THROUGH FY 2013 ACTION PLANS; ISSUE A NOTICE OF A THIRTY (30) DAY
PUBLIC COMMENT PERIOD AND PUBLIC MEETING ON THE PROPOSED
SUBSTANTIAL AMENDMENTS TO THE CITY'S FY 2008 THROUGH 2013 ACTION
PLANS; REALLOCATE $92,885 AND $26,312.84 OF THE HOME FUNDS TO THE
CARRFOUR HARDING VILLAGE PROJECT AND TO THE FY 2014/2015 FUNDING
CYCLE, RESPECTIVELY, AND $50,264.79 OF CDBG FUNDS TO THE LONDON
HOUSE APARTMENTS PROJECT TO ENSURE COMPLIANCE WITH UNITED
STATES HOUSING AND URBAN DEVELOPMENT DEPARTMENT (HUD) RULES
AND REGULATIONS REGARDING THE TIMELY EXPENDITURE OF FUNDS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City is a U.S. Department of Housing and Urban Development (HUD)-designated
entitlement community, as determined by the decennial census information on population
growth lag, age of housing stock, and poverty. The HOME Investment Partnership (HOME)
Program was created in 1992 providing funding specifically for affordable housing. HUD
allocates these funds to strengthen public/private partnerships and expand the supply of decent,
safe, sanitary, and affordable housing for low-income families. The City has received HOME
funds since the program's inception.
As an entitlement community, the City receives an annual allocation of HUD funding. HUD
requires entitlement jurisdictions to submit a Five-Year Consolidated Plan which establishes the
strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented
and refined by the City's annual submission of a One-Year Action Plan which delineates the
specific projects and activities funded by each year's HUD allocation. The City has historically
used HOME funds for multi-family rental housing and first-time homeownership.
The HOME and CDBG Programs have timeliness requirements regarding the expenditure of
funds. HOME funds must be committed to a project within two years of City's receipt, and
expended within five years. CDBG funds must be expended so that the total amount of funds in
the City's allocation account never exceeds 1.5 times its annual allocation. HUD further requires
HOME Recapture and Reallocation
April 9, 2014
Page 2
its entitlement jurisdictions to ensure that funded activities are carried out in the defined project
scope and within the timeframe allowed. The City's Action Plan is monitored throughout the year
to ensure compliance with federal regulations and progress towards the National Objective,
which stipulates that HOME-funded activities must create housing units that benefit low- and
moderate-income persons who earn at or below 80% of the area median income (AMI).
From time-to-time, it may be necessary for the City to process a "Substantial Amendment"to the
Five Year Consolidated Plan or the One Year Action Plans to allow for the funding of new
activities, modification of existing activities, or other program administrative actions. The City is
required by HUD [24 CFR 91.505 (b)] to identify the criteria to be used in determining if a
proposed action will be considered a "Substantial Amendment", as follows:
• Addition of a new activity or project not previously described in the Consolidated or
Action Plan;
• Deletion of an activity or project previously described in the Consolidated or Action Plan;
• Change in the purpose, scope, location or beneficiaries of an activity or project
previously described in the Consolidated or Action Plan;
• Change in the use of funds from one eligible activity or project to another previously
described in Consolidated or Action Plan; and/or
• A cumulative change in the use of funds from an eligible activity to another eligible
activity that decreases an activity's funding by 10% or more OR increases an activity's
funding by 10% or more during the fiscal year.
Any proposed amendment that is considered a "Substantial Amendment" is subject to the
Citizen Participation process; requires formal action by the City Commission; and requires
approval by HUD. Furthermore, a thirty (30) day public notice is required to provide the
opportunity for the public to review and comment on the proposed substantial amendments to
the City's FY 2008 through 2013 Action Plans. The City will also include a notice of a public
meeting on the proposed substantial amendments. The City will consider all comments or views
received from the public concerning proposed substantial amendments in accordance with 24
CFR 91.105 (c) (3). A summary of these comments and views shall be attached to the
substantial amendment.
ANALYSIS
The City previously awarded $500,000 of FY 2010/2011 HOME funds and $75,018 of FY
2011/2012 funds to Miami Beach Community Development Corporation's (MBCDC) Barclay
Apartments project. The funds were to be utilized to modernize the elevator and to upgrade the
electrical systems to meet the requirements of the 40-Year Building Re-Certification. MBCDC
has already drawn $299,721.94 in HOME funds and $24,753.21 in CDBG funds.
City staff reviewed the project and determined that MBCDC will not be able to complete the
project on.time to satisfy the HUD timeliness requirement. Although a Temporary Certificate of
Operation (TCO) was issued for the elevator by the Building Department in September 2013,
MBCDC was unable to complete the "punch list" items that are required in order for the elevator
to receive a final closeout until March 2014. Instead, MBCDC relied on extensions of the TCO to
continue operating the elevator. A portion of the electrical upgrade has been finished but it is not
near its completion. Based on MBCDC's current fiscal and operating conditions the likelihood of
on-time completion is minimal. It should be noted that MBCDC has yet to apply for the
appropriate Certificate of Use for this property and its 40-year certification has been out of
compliance for the past four years.
HOME Recapture and Reallocation
April 9, 2014
Page 3
The City is facing the possibility of the de-obligation/recapture of $185,272 of HOME funds. The
completion of the Barclay project would have provided the ability to satisfy the expenditure
requirements and avoid the loss of funds. Therefore, since MBCDC has not demonstrated the
capacity to complete the project in a timely manner, the Administration is proposing the recapture of
$119,197.22 of HOME funds and $50,264.79 of CDBG funds from the Barclay project.
Carrfour Supportive Housing (Carrfour) had originally applied for, and was awarded, funding from
the City's FY 2013/2014 HOME Request For Proposals (RFP) for its rehabilitation of Harding
Village, a 92-unit affordable housing project located in North Beach. The City originally funded only
a portion of the project because of a limitation in funds. The Administration recommends the
reallocation of $92,885 of the recaptured HOME funds to Carrfour's Harding Village project. Given
Carrfour's ability to mobilize and capacity to complete-the rehabilitation prior to HUD's expenditure
deadline, the funding of this project will provide the City with the ability to satisfy its expenditure
requirements.
The balance of the remaining recaptured HOME funds, $26,312.84, will be reallocated to the FY
2014/2015 HOME Program funding cycle and will be included in the RFP issued in March 2014 but
not yet awarded.
The $50,264.79 of recaptured CDBG funds is recommended to be reallocated to the City's London
House Apartments. The City recently acquired the London House Apartments from MBCDC, and
will continue its rehabilitation. The CDBG funds will be used to offset the acquisition closing costs
as well as address additional costs associated with the issuance of a Design/Build RFP.
The changes described above meet the definition of Substantial Amendment. Accordingly, once
funds are recaptured, the City will amend its Annual Plan with HUD reflecting these changes and
ensure that required noticing and amendments will be completed. Funds will not be awarded to
Carrfour until the completion of the 30-day public comment period.
MBCDC's -Barclay Apartments will remain with a balance of $81,080.22 in HOME funds to
complete its required elevator repairs. It is expected that the remaining MBCDC funds will be
utilized in the following manner:
$ 6,408.00 Elevator Machine Room Contractor Retainage
$ 6,300.00 Elevator Modernization Contractor Retainage
$68,372.22 Electrical Contractor Remaining Contract Costs
$81,080.22
CONCLUSION
The Administration recommends approval of the recapture of funds, filing the amended Action
Plans as required by HUD; issuance of a notice of a thirty(30) day comment period and a public
meeting on the proposed Substantial Amendments to the City's FY 2008 through FY 2013
Action Plans; reallocating HOME funds to Carrfour Supportive Housing's Harding Village project
and the FY 2014/2015 HOME Program funding cycle; and reallocating CDBG funds to the City's
London House Apartments.
JLM/KGB/MLR/ARB