2014-28750 Reso RESOLUTION NO. 2014-28750
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ONE-TIME USE OF
ADVANCE DRAWDOWNS OF HOME INVESTMENT PARTNERSHIP
(HOME) PROGRAM FUNDS BY CARRFOUR SUPPORTIVE HOUSING, INC.
(CARRFOUR), WHICH DRAWDOWN WILL FUND CARRFOUR'S HARDING
VILLAGE REHABILITATION PROJECT, FACILITATE THE CITY'S TIMELY
EXPENDITURE OF SAID FUNDS BY SEPTEMBER 30, 20149 AND AVOID
ANY RECAPTURE OF THE FUNDS BY HUD; AND FURTHER
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO REVIEW
AND APPROVE SUCH DRAW REQUESTS.
WHEREAS, the City is an entitlement recipient of HUD formula grant program funds,
including the HOME Investment Partnerships (HOME) Program funds; and
WHEREAS, 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 grant programs to
operate the City's housing and community development activities; and
WHEREAS, HOME stipulates that funds be expended within timeliness guidelines as
delineated in 24 CFR Part 92, among others; and
WHEREAS, HOME funds, in the amount of $185,272 (At-Risk Funds), have not been
expended; and
WHEREAS, if the At-Risk Funds are not expended by September 30, 2014 (Expenditure
Deadline), said funds may be subject to recapture by U.S. HUD; and
WHEREAS, Carrfour Supportive Housing, Inc. (Carrfour), a not-for-profit Florida
corporation, is a registered Community Housing Development Organization (CHDO), which is
sponsoring the rehabilitation of the property located at 8520 Harding Avenue, Miami Beach, FL
(Harding Village), to be used as affordable housing; and
WHEREAS, the Carrfour Harding Village project was awarded HOME funds in the
amount of $321,552 (Carrfour HOME Loan), and can expend enough project funds to timely
satisfy the Expenditure Deadline; and
WHEREAS, in order to meet the Expenditure Deadline the City must provide Carrfour
advance draws to the extent of the At-Risk Funds; and
WHEREAS, current City policy requires funding on a reimbursement basis only; and
WHEREAS, the Administration wishes to provide necessary advance draws as needed
to satisfy the Expenditure Deadline on a one-time only basis, subject to submission by Carrfour
of all required expenditure documentation within 15 days of the receipt of said At-Risk Funds,
and
WHEREAS, the Carrfour HOME Loan will be divided into two separate loans, one for
$228,667 and one for $92,885, both of which will be evidenced by a HOME Program
Agreement, a Promissory Note and a Mortgage and Security Agreement, which loan documents
will provide for accountability for the use of said funds and contain restrictive covenants,
ensuring that the property will continue to be used for affordable housing; 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.
Y
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 approve the one-time use of advance drawdowns of HOME Investment
Partnership (HOME) Program funds by Carrfour Supportive Housing, Inc. (Carrfour), which
drawdown will fund Carrfour's Harding Village rehabilitation project, facilitate the City's timely
Y
expenditure of said funds b September 30, 2014, and avoid any recapture of the funds by
P P
HUD; and further authorize the City Manager, or his designee, to review and approve such draw
requests.
PASSED AND ADOPTED this 10th day of September, 2014.
ATTEST:
. ... E-9
TED �` A%
Ra ael E. Granado, CITY CLERK INCOR oRA Phili'� �e;MAYOR
2
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney „4,74 Date
201/14/September 10/Carrfour Harding Village CC Draw Reso
HOME PROGRAM AGREEMENT
THIS AGREEMENT, entered into this 18 day of , 2014 ("Effective Date"), by and between
the CITY OF MIAMI BEACH,a Florida municipal corporation, having its principal office at 1700 Convention
Center Drive, Miami Beach, Florida, (hereinafter referred to as the"City"); and CARRFOUR SUPPORTIVE
HOUSING,INC.,a Florida not-for-profit corporation,with offices located at 1398 SW 1St Street, Suite 1201,
Miami, Florida 33135, and HARDING VILLAGE, LTD.,a Florida limited partnership,with offices located at
1398 SW 1 st Street, Suite 1201, Miami, Florida 33135, (hereinafter collectively referred to as"CARRFOUR").
WITNESSETH:
WHEREAS, on February 18, 1992, the City was designated by the United States Department of
Housing and Urban Development (HUD) as a participating jurisdiction for the receipt of funds as provided
under the HOME Investment Partnerships Program and pursuant to the HOME Program Final Rule,24 CFR
PART 92, as same may be amended from time to time; and
WHEREAS, the City has an agreement with HUD for the purpose of conducting an affordable
housing program with federal financial assistance under the HOME Program; and
WHEREAS, the City has determined the necessity for providing affordable housing in the City
through the Fiscal Year 2013/2014 One-Year Action Plan for Federal funds, adopted by Resolution No.
2013-28292 on July 19, 2013; and
WHEREAS, CARRFOUR SUPPORTIVE HOUSING, INC. created HARDING VILLAGE, LTD. (the
"Owner Entity"), an affiliated single-asset partnership whose general partner, Harding Village, Inc., is a
wholly owned subsidiary of CARRFOUR SUPPORTIVE HOUSING, INC.,for the purpose of acquiring and
rehabilitating the Property titled in the name of the Owner Entity(the"Property"), more particularly described
as follows:
Lots 10, 11, 12, 13 and 14, Block 4 of BEACH BAY SUBDIVISION, according to the Plat thereof, as
recorded in Plat Book 44, Page 25, of the Public Records of Miami-Dade County, Florida, less the
Easterly 2.5 feet.
a/k/a 8500 Harding Avenue, Miami Beach, Florida 33141; 8520 Harding Avenue, Miami Beach,
Florida 33141; and 8540 Harding Avenue, Miami Beach, Florida 33141; and
WHEREAS, CARRFOUR SUPPORTIVE HOUSING, INC. is a Community Housing Development
Organization and is securing the funds through the Home Program to sponsor the renovation of the
Property, and in connection therewith,the Owner Entity has agreed to execute and be bound by this Home
Program Agreement, a Promissory Note ("Note"), and a mortgage and Security Agreement ("Mortgage"),
(collectively referred to herein as"Loan Documents").
NOW,THEREFORE, in consideration of the mutual promises contained herein, the parties hereto
agree as follows:
1 CMB HOME revised 10/2013
ARTICLE I
DEFINITIONS
As used in this Agreement the terms listed below shall have the following meanings:
(a) HOME Program: HOME Investment Partnerships Program, as further set forth and defined
in Final Rule, 24 CFR Part 92, as same may be amended from time to time;
(b) HUD: United States Department of Housing and Urban Development or any successor
agency;
(c) CHDO: Community Housing Development Organization, as defined in the HOME Program;
(d) Funds: HOME Program funds;
(e) CHDO Operating Expenses: Those eligible reasonable and necessary costs for the
operation of the CHDO such as salaries, wages, and other employee compensation and benefits;
employee education,training, and travel; rent; utilities; communication costs;taxes; insurance;and
equipment, materials and supplies. CARRFOUR agrees that eligible operating expenses under this
Agreement are limited to those eligible costs for operating expenses as outlined in the HOME
Program, at 24 CFR PART 92.208. Funds may not be used to pay operating expenses incurred by
a CHDO acting as a sub-recipient or contractor under the HOME Program.
Any term not otherwise defined in this Article I or in this Agreement shall have the meaning set forth
in the HOME Program.
ARTICLE II
ALLOCATION OF HOME FUNDS
In consideration for the performance by CARRFOUR of its obligations under this Agreement, the City will
provide CARRFOUR with HOME Program funding, in the total amount of TWO HUNDRED TWENTY-
EIGHT THOUSAND SIX HUNDRED SIXTY-SEVEN AND NO/100 DOLLARS($228,667.00)(the"Funds").
The Funds will be provided to CARRFOUR from the City's Fiscal Year 2013/2014 HOME Program
allocation, and shall be used for eligible CHDO Project Expenses for the rehabilitation of the Property,which
consists of three apartment buildings known as Harding Village, containing 92 units, of which seventy(70)
will be used as HOME units for affordable rental housing (the "Project").
CARRFOUR will provide the services set forth in the Scope of Services attached as Exhibit"A" hereto. The
Scope of Services shall be provided in accordance with, and subject to, the Project Line-Item Budget and
Project Pro Forma attached as Exhibit"C" hereto. The Project Line-Item Budget will include all sources of
2 CMB HOME revised 10/2013
Project funding, and the uses of each source of funds.
Notwithstanding the preceding in this Article II, the availability of the majority of the Funds, totaling
$185,272.00 ("Initial Draw"), is subject to CARRFOUR submitting the draw request for this Initial Draw,
for work completed through and including September 26, 2014, and requisite documentation, as more
particularly set forth in Exhibit "E" hereto; otherwise any portion of this Initial Draw which has not been
disbursed by September 30, 2014, will have to be returned to HUD, leaving a balance of$43,395.00 in
available Funds. Additionally, disbursement of the Initial Draw, on or before September 30, 2014, shall
be contingent upon CARRFOUR executing the Note and Mortgage on or before securing payment
under the Initial Draw. If CARRFOUR does not secure the requisite approvals from City of Miami to
execute the Note and Mortgage by September 26, 2014, the City will not be able to authorize the
payment to CARRFOUR of any of the funds from the Initial Draw and said Initial Draw shall be returned
to HUD. Authorization (the "Miami Authorization") from the City of Miami shall be interpreted to mean
the passing of a resolution by the City of Miami Mayor and City Commission, authorizing CARRFOUR to
execute said Note and Mortgage.
Security Agreement Contingency. This Agreement is contingent upon CARRFOUR securing the requisite
Miami Authorization on or before September 26, 2014. CARRFOUR assumes the risk that if the Miami
Authorization is not obtained by September 26, 2014 or the Note and Mortgage are not executed on or
before payment of the Initial Draw, this Agreement shall terminate, releasing the City and CARRFOUR from
any liability or responsibility under this Agreement.
Restrictive Covenants. CARRFOUR will maintain required HOME Program rent and occupancy limitations
and standards for a minimum period of thirty(30)years(the"Affordability Period"), commencing with(i)the
issuance of the Certificate of Completion (CC), in connection with the completion of the Scope of Services
and (ii) the leasing of all Project units to tenants who meet the program requirements under the rules and
regulations promulgated by the United States Department of Housing and Urban Development at CFR Part
92, as same may be amended from time to time (the "Affordability Requirements").
IT IS SPECIFICALLY ACKNOWLEDGED BY THE PARTIES HERETO THAT THE PROJECT IS TO BE
USED,OPERATED,AND MAINTAINED ONLY AS AN AFFORDABLE HOUSING RESIDENTIAL RENTAL
PROPERTY, AND FOR NO OTHER PURPOSE. USE OF THE PROJECT FOR PURPOSES OTHER
THAN AS AN AFFORDABLE HOUSING RESIDENTIAL RENTAL PROPERTY SHALL BE DEEMED A
DEFAULT UNDER THIS AGREEMENT.
CARRFOUR covenants and agrees that title to the Property/Project or any interest therein shall not be sold,
conveyed, assigned, further encumbered or otherwise transferred (whether voluntarily or by operation of
law) without the prior written consent of the City, which consent, if provided at all, shall be at the sole
discretion of the City.
ARTICLE III
PROCEEDS FROM HOME INVESTMENT
In accordance with the HOME Program, at 24 CFR PART 92.300(a)(2), CARRFOUR may retain the
proceeds resulting from investment of its CHDO set aside funds for use in other housing activities which
benefit low-income families. However, any retention of HOME funds for housing not meeting the
Affordability Requirements of the HOME Program, at (24 CFR PART 92.252),will be considered Program
income and will be repaid in accordance with the requirements of the HOME Program, (at 24 CFR PART
92.503).
3 CMB HOME revised 10/2013
In accordance with the HOME Program, at 24 CFR PART 92.300, Project proceeds shall be restricted to
uses specified by the HOME Program, at 24 CFR Part 92.301. CARRFOUR must have effective Project
control, as required by the HOME Program, at 24 CFR PART 92.300(a)(1).
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS
PROVIDED UNDER THE HOME PROGRAM
CARRFOUR expressly agrees that the following provisions shall apply to its use of the Funds:
(a) CARRFOUR will enter into a written agreement(or agreements)with the City,within twenty-
four (24) months of the effective date of the Fiscal Year 2013/2014 HOME Agreement
between HUD and the City, in order to commit the Funds to a specific eligible CHDO project
(or projects). The City, at its sole discretion, may require commitment of the Funds within an
earlier time period, as determined in the sole and reasonable discretion of the City Manager,
in the event same is necessary to avoid recapture of said Funds.
(b) CARRFOUR shall comply with all Project requirements, as defined by the HOME Program,
at 24 CFR SUBPART F, Sections 92.250, 92.251, 92.252, and 92.253.
(c) CARRFOUR will maintain a financial management system that conforms to the financial
accountability standards of the HOME Program, at 24 CFR PART 84.21 ("Standards for
Financial Management Systems") and in accordance with the "Financial Management"
guidelines, attached as Exhibit"D".
(d) Affirmative Marketing. CARRFOUR shall adopt and implement affirmative marketing
procedures for rental and home buyer projects containing five (5) or more HOME-assisted
housing units, as set forth in the HOME Program, at (24 CFR 92.351). CARRFOUR shall
maintain records of its affirmative marketing activities in accordance with the record keeping
requirements of the HOME Program, at 24 CFR 92.508 (a)(7)(ii).
(e) CHDO Capabilities. As a City CHDO, CARRFOUR shall develop, sponsor, or own the
project (or projects) funded by the Funds and shall at all times have/maintain effective
management control over such project (or projects).
(f) Change in Status: CARRFOUR shall advise the City, in writing,within thirty(30)days of any
organizational, operational, or legal status changes made by CARRFOUR that affect
documents that were submitted by CARRFOUR to obtain CHDO status.
(g) Property Standards: CARRFOUR shall comply with the property standards requirements set
forth in the HOME Program, at 24 CFR PART 92.251.
(h) CARRFOUR shall comply with the requirements of Executive Orders Nos. 11625 and
12432, concerning Minority Business Enterprise,and Executive Order No.12138,concerning
Women's Business Enterprise,which encourage the use of minority and women's business
enterprises, to the maximum extent possible, in connection with HOME-funded activities.
(i) CARRFOUR shall comply with the Displacement, Relocation, and Acquisition requirements
4 CMB HOME revised 10/2013
in accordance with the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) (42 U.S.C. 4201-4655), and 49 CFR Part 24.
(j) CARRFOUR shall comply with all of the following federal laws, executive orders, and
regulations pertaining to fair housing and equal opportunity, as same may be amended:
(1) Title VI of the Civil Rights Act of 1964(42 U.S.C. 2000d)--States that no person may be
excluded from participation in, denied the benefits of, or subjected to discrimination under
any program or activity receiving federal financial assistance on the basis of race, color, or
national origin. Its implementing regulations may be found in 28 CFR Part 1.
(2) Title VIII of the Civil Rights Act of 1968(the"Fair Housing Act") (42 U.S.C. 3601)and its
implementing regulations at 24 CFR Part 100-115 -- Prohibits discrimination in the sale or
rent of units in the private housing market against any person on the basis of race, color,
religion, sex, national origin, familial status or handicap.
(3) Equal Opportunity in Housing (Executive Order 11063, as Amended by Executive Order
12259), and implementing regulations at 24 CFR Part 107 -- Prohibits discrimination in
housing or residential property financing related to any federally assisted activity against
individuals on the basis of race, color, religion, sex or national origin.
(4) Age Discrimination Act of 1975, (42 U.S.C. 6101)and its implementing regulations at 24
CFR Part 146 -- Prohibits age discrimination in programs receiving federal financial
assistance.
(5) Equal Employment Opportunity, Executive Order 11246, and its implementing
regulations at 41 CFR Part 60--Prohibits discrimination against any employee or applicant
for employment because of race, color, religion, sex, or national origin. Provisions to
effectuate this prohibition must also be included in all construction contracts exceeding
$10,000.
(k) Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u)—which
requires that, to the greatest extent feasible, opportunities for training and employment,
arising from HOME funded projects, will be provided to low-income persons residing in the
program service area and,to the greatest extent feasible,contracts for work to be performed
in connection with HOME funded projects will be awarded to business concerns which are
located in or owned by persons residing in the program service area.
(1) CARRFOUR will ensure that all units in the Project(or projects) assisted with HOME funds
comply with the Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et) and its
implementing regulations at 24 CFR PART 35. CARRFOUR will ensure that all contractors
performing renovation, repair and painting of projects assisted with HOME funds comply with
the certification requirements of the 2008 EPA Rule under 40 CFR Part 745.
(m) Federal Labor Standards Provisions,as described in HUD Handbook 1344-1 (Federal Labor
Standards Compliance in Housing and Community Development Programs)--Applies to all
projects with twelve(12)or more HOME-assisted units, regardless of whether HOME funds
are used for construction or other costs.
(n) CARRFOUR agrees to administer a policy to ensure that it complies with the Drug-Free
51 CMB HOME revised 10/2013
Workplace Act requirements under 24 CFR Part 24, Subpart F, and will ensure that its
workplace is free from the unlawful manufacture, distribution,dispensing, possession or use
of drugs or alcohol.
(o) CARRFOUR agrees to adhere to and be governed by the following accessibility
requirements:
1. Architectural Barriers Act of 1968, as Amended (42 U.S.C.4151) and its
implementing regulations at 35 CFR Part 107--States that public(i.e.,those intended to be
accessible to the general public) buildings and conveyances financed with federal funds are
designed, constructed, or altered to provide accessibility to the physically handicapped.
2. Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR Part 8--Prohibits discrimination in federally assisted programs on the
basis of handicap and imposes requirements to ensure that "qualified individuals with
handicaps" have access to programs and activities that receive federal funds.
3. Title VIII of the Civil Rights Act of 1968, as Amended the "Fair Housing Act" (42
U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115.
4. CARRFOUR must complete and submit the City's Disability Non-Discrimination
Affidavit (Affidavit), a copy of which is attached as Exhibit "E" hereto. In the event
CARRFOUR fails to execute the City's Affidavit, or is found to be in non-compliance with the
provisions of the Affidavit, the City may impose such sanctions as it may determine to be
appropriate, including but not limited to, withholding of payments to CARRFOUR under the
Agreement until compliance, and/or termination of the Agreement.
ARTICLE V
INTENTIONALLY OMITTED]
ARTICLE VI
METHOD OF PAYMENT
The Funds shall be paid to CARRFOUR as follows:
(a) CARRFOUR shall be paid for eligible Project expenses, as set forth in the Budget (Exhibit
"C"), based on actual costs, and with supporting documentation. CARRFOUR shall be paid only for
those expenditures identified in the Budget. In order to be considered eligible for payment, Project
expenses not identified in the Budget must obtain the prior written approval of the City Manager prior
to CARRFOUR incurring such expenses. Budget line item transfers must also obtain the prior
written approval of the City Manager.
Supporting documentation shall include, but not be limited to, the following:
(1) Books, records and documents in accordance with generally accepted accounting
61 CMB HOME revised 10/2013
principles, procedures and practices,which sufficiently and properly reflect all revenues and
expenditures of Funds.
(2) A system of allocation that will assure reliable cost measurements and customary
service delivery costs.
(3) Time sheets for split-funded employees,who work on more than one activity, in order to
record the HOME activity delivery cost by project and the non-HOME related charges.
(b) Requests for payment shall be assembled by calendar month and received by the City no
later than the 10th day of the succeeding month. Failure to comply may result in rejection of
invoices.
(c) No payments will be made without evidence of all appropriate insurance required by this
Agreement.
(d) CARRFOUR understands and agrees that disbursements of any Funds may not be
requested until such Funds are needed for payment of eligible costs. The amount of each request
must be limited to the amount needed. In no event shall the City provide advance funding to
CARRFOUR, nor shall CARRFOUR advance Funds to any party.
Payment of all or any portion of the Funds may be withheld pending the receipt and approval by the City of
any and all reports and documents which CARRFOUR is required to submit pursuant to this Agreement.
ARTICLE VII
SUBCONTRACTS
(a) CARRFOUR agrees that no work or services contemplated by this Agreement shall be
subcontracted without the prior written approval of the City Manager.
(b) CARRFOUR shall require, and shall include language in all contracts with sub-contractors,
that said sub-contractor shall hold the City of Miami Beach, Florida, harmless against all claims of
whatever nature arising out of the subcontractor's performance of work or services.
(c) CARRFOUR shall provide the City with copies of all executed subcontracts within ten (10)
days after execution.
ARTICLE VIII
[INTENTIONALLY OMITTED]
ARTICLE IX
TERM OF AGREEMENT (TERM)
This Agreement shall become effective upon execution by the parties hereto, as set forth in the Effective
Date on page 1 hereof, and shall terminate at the conclusion of the Affordability Period as defined in Article
7 CMB HOME revised 10/2013
II hereto.
ARTICLE X
[INTENTIONALLY OMITTED]
ARTICLE XI
AMENDMENTS
Any amendments or modifications to this Agreement shall only be valid when they have been reduced to
writing and duly approved and signed by both parties hereto. Any changes which do not materially change
the scope of the Agreement, or increase the total amount of Funds payable under this Agreement, may be
approved and executed by the City Manager on behalf of the City.
ARTICLE XII
CONFLICT OF INTEREST
(a) CARRFOUR shall comply with the standards contained in the HOME Program, at 24 CFR
Part 92.356, which states that no owner, developer or sponsor of a project assisted with HOME
funds(or officer, employee, agent or consultant of the owner,developer or sponsor),whether private
for-profit or non-profit (including a CHDO when acting as an owner, developer or sponsor) may
occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to an
owner-occupant of single-family housing or to an employee or agent of the owner or developer of a
rental housing project who occupies a HOME assisted unit as the project manager or maintenance
worker. Exceptions may only be granted by the City in accordance with 24 CFR Part 92.356(f)(2).
(b) CARRFOUR shall disclose any possible conflicts of interest or apparent improprieties of any
party that is covered by the above standards. CARRFOUR shall make such disclosure, in writing,to
the City Manager immediately upon CARRFOUR's discovery of such possible conflict. The City will
then render, or cause to be rendered, an opinion, which shall be binding on all parties.
(c) Related Parties. CARRFOUR shall report to the City the name, purpose, and any other
relevant information in connection with any related-party transaction. This includes, but is not limited
to, a for-profit or non-profit subsidiary or affiliate organization, an organization with overlapping board
of directors, and an organization for which CARRFOUR is responsible for appointing memberships.
CARRFOUR shall report this information to the City Manager upon forming the relationship or, if
already formed, shall otherwise report it immediately.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
CARRFOUR shall indemnify and hold harmless the City, and its officers, employees, contractors, and
agents,from any and all claims, liabilities, losses, and causes of action which may arise out of an error,act,
omission, negligence, or misconduct on the part of CARRFOUR, or any of its officers,directors,employees,
agents, servants, contractors, subcontractors, consultants,sub consultants, patrons,guests, clients,and/or
invitees, in connection with this Agreement and/or with the Project contemplated herein. CARRFOUR shall
pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits
(including appeals) in the name of the City, and/or its officers,employees,contractors,and agents,and shall
pay all costs and judgments which may issue thereon. This indemnification shall survive termination and/or
expiration of this Agreement.
81 CMB HOME revised 10/2013
CARRFOUR shall maintain, during the Term of this Agreement, the insurance specified below.
(1) General Liability: $1,000,000 combined single limit for bodily injury and property damage,for
each occurrence, subject to adjustment for inflation by the City.
(2) Contractual Liability: the policy must include coverage to cover the above indemnification.
(3) Automobile and vehicle coverage, in the amount of$1,000,000 per occurrence, subject to
adjustment for inflation by the City, shall be required when the use of automobiles and other
vehicles are involved in any way in the performance of the Agreement, including non-owned
automobile coverage.
(4) Workers' Compensation Coverage as required pursuant to Florida Statute.
(5) Builders Risk/Comprehensive Fire and Hazard Insurance: CARRFOUR shall provide the
City with the original policy of Builder's Risk and Comprehensive Fire and Hazard Insurance, in
completed value form, with extended coverage in the amount of the full insurable value of the
specific funded project(or projects), upon completion of construction(and providing for adjustment
subject to inflation by the City), issued by a company satisfactory to the City.
(6) Flood Insurance: If the floor grade of the first level of the building is determined to be below
the base floodplain elevation required by the Federal Emergency Management Agency(FEMA)of
eight(8)feet above National Geodetic Vertical Datum(NGVD), CARRFOUR shall provide the City
with evidence, satisfactory to the City,that the premises are covered by flood insurance supplied
by the Federal Insurance Administration,to the maximum amount available, all as provided in the
Flood Disaster Protection Act of 1973, as amended, together with appropriate endorsement.
CARRFOUR shall submit to the City ORIGINAL certificates of insurance for the above coverages.
With the exception of the Workers'Compensation coverage,all other coverages required pursuant
to this Agreement must name the City of Miami Beach, Florida, as an additional insured.
All insurance coverage shall 'be approved by the City's Risk Manager prior to the release of any Funds
under this Agreement. Further, in the event evidence of such insurance is not forwarded to the City's Risk
Manager within thirty (30) days after the execution of this Agreement, this Agreement shall automatically
terminate and become null and void,without further notice to CARRFOUR required, and the City shall have
no obligation under the terms hereof. In the event of such automatic termination, CARRFOUR shall
immediately return the entire amount of the Funds to the City, and the City's rights and remedies against
CARRFOUR shall be the same as set forth in Article IX.
ARTICLE XIV
REPORTS
(1) Progress Reports. CARRFOUR shall submit Monthly Project Status Reports as set forth in
Exhibit "A" hereto, describing the progress made by CARRFOUR in achieving the objectives
identified in the Scope of Services, and shall include the documents set forth in the attached Exhibit
"B", including photographs of recent progress. The status report shall be submitted no later than ten
(10) days after the end of each month. It will be the sole responsibility of CARRFOUR to notify the
City Manager, in writing, of any action, law, or event that may impede or hinder the success of the
activities contemplated by this Agreement. After such notification, the City Manager will take
whatever actions he/she deems appropriate to ensure the success of the project.
9 1 CMB HOME revised 10/2013
(2) The City may require that CARRFOUR submit such other reports, as the City Manager may
reasonably deem necessary,to demonstrate CARRFOUR's compliance with any of the terms of this
Agreement.
If the required reports described above are not submitted to the City, or are not completed in a manner
reasonably acceptable to the City Manager,the City may withhold further payments until they are completed,
or take any other such action, including default, as the City Manager may deem appropriate.
ARTICLE XV
AUDIT AND INSPECTIONS
CARRFOUR shall maintain any and all records, as necessary,to document compliance with the provisions
of this Agreement. At any time during normal business hours and as often as the City Manager(and/or the
comptroller of the United States) may deem necessary, there shall be made available to the City Manager
and/or his/her authorized representatives (and/or the U.S. Comptroller and/or his/her authorized
representatives),to audit, examine and make audits,of all contracts, invoices, materials, payrolls, records of
personnel, conditions of employment, and other data relating to all matters covered by this Agreement. If
during the course of a monitoring, the City determines that any payments made to CARRFOUR do not
constitute an allowable expenditure, the City will have the right to re-capture said monies, which shall
include,without limitation,the right to deduct/reduce those amounts from their related invoices,and/or from
any remaining portion of Funds not yet paid to CARRFOUR.
Monitoring site-visits will be performed annually during the Term of this Agreement as outlined in Exhibit"A"
attached hereto.
ARTICLE XVI
COMPLIANCE WITH LOCAL, STATE AND FEDERAL REGULATIONS
CARRFOUR shall comply with all applicable federal regulations as they may apply to program/project
administration, and will further comply with all applicable State, Miami-Dade County, and City laws and
ordinances.
ARTICLE XVII
TERMINATION DUE TO LACK OF FUNDING
It is expressly understood and agreed by CARRFOUR that the Funds originate from grants of HOME funds
and must comply with all applicable HUD rules and regulations.
It is expressly understood and agreed by CARRFOUR that, in the event of curtailment or non-production of
Funds, the financial sources to pay CARRFOUR under this Agreement will not be available and, in such
event, this Agreement will thereby terminate effective as of the time that it is determined by the City
10 CMB HOME revised 10/2013
Manager, in his sole and reasonable judgment and discretion, that said Funds are no longer available.
In the event of such termination, CARRFOUR agrees that it will not look to, nor seek to hold, the City of
Miami Beach, or any of its officials, officers, employees, contractors, or agents, personally liable for
performance of this Agreement, and the City shall be released from any and all liability to CARRFOUR
under the terms of this Agreement.
ARTICLE XVIII
ACCESS TO RECORDS
CARRFOUR shall allow access to all financial and other records, during normal business hours, to
j authorized federal, State, Miami-Dade County,or City representatives,and shall provide such assistance as
may be necessary to facilitate financial and/or other audit by any of these representatives including,without
limitation, as deemed necessary by such representatives to insure compliance with applicable accounting
and financial standards.
ARTICLE XIX
[INTENTIONALLY OMITTED]
ARTICLE XX
PROJECT PUBLICITY
CARRFOUR agrees that any news release or any other type of publicity pertaining to the Project must
recognize the City as the recipient funded by the United States Department of Housing and Urban
Development and administered by the City of Miami Beach Office of Real Estate, Housing and Community
Development as the entity which provided Funds for the Project. Such news releases and any other publicity
shall include the statement:
"FUNDED BY THE CITY OF MIAMI BEACH HOME PROGRAM"
In written materials, the words below shall appear in the same size letters or type as the name of
CARRFOUR:
"CITY OF MIAMI BEACH HOME PROGRAM FUNDS ADMINISTERED BY THE CITY OF MIAMI
BEACH OFFICE OF REAL ESTATE, HOUSING AND COMMUNITY DEVELOPMENT"
ARTICLE XXI
[INTENTIONALLY OMITTED]
ARTICLE XXII
11 CMB HOME revised 10/2013
ASSIGNMENT
This Agreement, including any part hereof, shall not be assigned,transferred, or subcontracted without the
prior written consent of the City, which consent, if given at all, shall be at the City's sole discretion and
judgment.
ARTICLE XXIII
[INTENTIONALLY OMITTED]
ARTICLE XXIV
INDEPENDENT CONTRACTOR
CARRFOUR, and its officials, directors, employees, contractors, and agents, shall be deemed to be
independent contractors and not agents or employees of the City, and shall not attain any rights or benefits
under the Civil Service or Pension Ordinances of the City, or any rights generally afforded Classified or
Unclassified City employees; nor shall any such individuals be deemed entitled to the Florida Workers'
Compensation benefits as would employees of the City.
ARTICLE XXV
[INTENTIONALLY OMITTED]
ARTICLE XXVI
TERMINATION FOR CAUSE
This Agreement may be terminated for cause. "Cause" shall include the following:
(a) CARRFOUR's failure to comply and/or perform in accordance with any of the terms and
conditions of this Agreement, or any applicable federal, State, County, or City law or regulation;
(b) CARRFOUR's failure to maintain the insurance required by the City;
(c) CARRFOUR's failure to submit any required report to the City, or submittal of a report which
is late, incorrect, or incomplete in any material respect after notice and opportunity to cure, as set
forth in subparagraph (e) hereof, has been given by the City to MBCDC;
(d) Implementation of this Agreement, for any reason, is rendered impossible or infeasible;
(e) CARRFOUR's failure to respond, in writing,within thirty(30)days of notice of same from the
City, to any concerns raised by the City, including providing substantiating documentation when
requested by the City;
(f) Any evidence of fraud, waste, or mismanagement, as determined by the City's monitoring
under this Agreement, or any violation of applicable HUD rules and regulations;
(g) CARRFOUR's insolvency or bankruptcy;
121 CMB HOME revised 10/2013
(h) An assignment or transfer of this Agreement(or any portion hereof)which does not comply
with the procedures set forth in Article XXII;
(i) CARRFOUR's failure to comply with and/or perform in accordance with the
Restrictive Covenants during the Affordability Period; or
(j) Any unauthorized transfer of title to the Project by CARRFOUR.
If the default complained of is not fully and satisfactorily cured within thirty(30)days of receipt of such notice
of default to CARRFOUR, at the expiration of said thirty (30) day period (or such additional period of time,
as may be permitted by the City Manager, in his sole discretion, as required to cure such default and in the
event CARRFOUR is diligently pursuing curative efforts) this Agreement may, at the City Manager's sole
option and discretion, be deemed automatically canceled and terminated, and the City shall be fully
discharged from any and all liabilities and duties and terms arising out of, or accruing by virtue of, the
Agreement. In the event of a default for cause, the City may also, at its option, require repayment of the
total amount of the Funds,together with interest at the Default Interest Rate, as more particularly defined in
the Note; avail itself of any and all remedies pursuant to the HOME Program (at 24 CFR Part 85.43),
including suspension and/or re-capture of the Funds, or any portion thereof; and/or pursue any other
remedies that may be available at law or equity.
ARTICLE XXVII
TERMINATION FOR CONVENIENCE
Notwithstanding Article XXVI hereof,the City may terminate this Agreement for convenience,as set forth in
24 CFR Part 85.44. In the event of termination for convenience, CARRFOUR shall immediately return any
unused Funds (as of the date of termination)to the City. Notwithstanding the preceding, the City reserves
any and all legal rights and remedies it may have with regards to recapture of all or any portion of the Funds
as a result of incomplete and/or unsatisfactorily performed Project items.
ARTICLE XXVIII
ADDITIONAL CITY REMEDIES
In the event of a default and termination, the City shall also be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest, in Miami-Dade County, Florida, in order to enforce
the City's rights and remedies against the defaulting party. The City shall be entitled to recover all costs of
such actions, including reasonable attorney's fees. To the extent allowed by law,the defaulting party waives
its right to jury trial and its right to bring permissive counterclaims against the City in any such action
ARTICLE XXIX
MAINTENANCE AND RETENTION OF RECORDS
CARRFOUR shall maintain all records required pursuant to the HOME Program, at 24 CFR Part 92.508, in
an orderly fashion and in a readily accessible, permanent and secured location,and will prepare and submit
all reports required herein, to assist the City in meeting record keeping and reporting requirements herein.
(a) Records shall be maintained for a period of five(5)years after the closeout of Funds under
this Agreement, except as provided in subsections (b), (c) and (d), herein.
131 CMB HOME revised 10/2013
(b) If any litigation, claim, negotiation, audit or other action has been started before the regular
expiration date, the records must be retained until completion of the action and resolution of all
issues which arise from it, or until the end of the regular period specified in subsection (a),
whichever is later.
(c) Records regarding Project requirements that apply for the duration of the Affordability Period,
as well as the written agreement and inspection and monitoring reports, must be retained for five(5)
years after the Affordability Period terminates.
(d) Records covering displacements and acquisition must be retained for at least five(5)years
after the date by which the persons displaced from the property and all persons whose property is
acquired for the Project, have received the final payment to which they are entitled in accordance
with 24 CFR Part 92.353.
ARTICLE XXX
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability
for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that
its liability for any such breach never exceeds the sum of$10,000 less any amounts actually distributed by
the City to CARRFOUR. CARRFOUR hereby expresses its willingness to enter into this Agreement with
CARRFOUR's recovery from the City for any damage action for breach of contract to be limited to a
maximum amount of$10,000 less any amounts actually distributed by the City to CARRFOUR. Accordingly,
and notwithstanding any other term or condition of this Agreement, CARRFOUR hereby agrees that the City
shall not be liable to CARRFOUR for damages in an amount in excess of$10,000, for any action or claim
for breach of contract arising out of the performance or non-performance of any obligations imposed upon
the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any
way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes,
Section 768.28.
ARTICLE XXXI
VENUE
This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by
either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue
for the enforcement of same shall be in Miami-Dade County, Florida.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida,
both substantive and remedial,without regard to principles of conflict of laws. The exclusive venue for any
litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S.
District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT,
CITY AND CARRFOUR EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY
JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT.
ARTICLE XXXII
[INTENTIONALLY OMITTED]
14 CMB HOME revised 10/2013
ARTICLE XXXIII
[INTENTIONALLY OMITTED'
ARTICLE XXXIV
NOTICES
All notices shall be sent to the parties at the following addresses:
City: Maria Ruiz, Director
City of Miami Beach
Office of Community Services
1700 Convention Center Drive
Miami Beach, FL 33139
CARRFOUR: Stephanie Berman, President
Carrfour Supportive Housing, Inc.
1398 SW 1St Street, Suite 1201
Miami, FL 33135
or such address and to the attention of such other person as the City or CARRFOUR may from time to time
designate by written notice to the other.
ARTICLE XXXV
MISCELLANEOUS
(a) Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
(b) In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached document, the terms in this Agreement shall rule.
(c) No waiver or breach of any provision of this Agreement shall constitute a waiver of any
subsequent breach of the same or any other provision hereof, and no waiver shall be effective
unless made in writing.
(d) If any provision of this Agreement is held invalid, the remainder of this Agreement shall not
be affected thereby if such remainder would then continue to conform to the terms and requirements
of applicable law.
(e) City and CARRFOUR agree that this Agreement shall be binding upon the parties herein,
and their respective heirs, executors, legal representatives, successors, and assigns.
15 CMB HOME revised 10/2013
IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed by
their duly authorized officials on the day and date first above indicated.
CARRFOUR SUPPORTIVE HOUSING, INC.
a Florida not-for-profit corporation
rw- t
C�
Secretary S 4tr
�' o om K �-S�Q Stephanie Berman, President/CEO
Print Name Name and Title
HARDING VILLAGE, LTD.
A Florida limited partnership
BY: Harding Village, Inc., a Florida not-for-profit
Corporation, its General Partner
AT
Secretary 7terphanie re
�St Berman, President/CEO
Print Name Name and Title
CITY OF MIAMI BEACH,
a Florida municipal corporation
ATTEST: /'~
ity Clerk n
Rafael E. Granado INCORP ORATED' Levine Mayor
Print Name Name and Title
H 26
APPROVED AS TO
FORM & LANGUAGE
& OR E C TION
City Attorney ) Da etet
'OT
161 CMB HOME revised 10/2013
i
' I
EXHIBIT "A"
"SCOPE OF SERVICES"
The Sub-Recipient agrees to provide the following:
l b of Harding 1 Complete rehabilitation as outlined in budget, and
e Apartments receipt of CC(70 HOME Program-Eligible Units)
Related Definitions:
Davis-Bacon Act Compliance — The Davis-Bacon Act applies to contractors and
subcontractors performing on federally funded or assisted contracts in excess of
$2,000 for the construction, alteration, or repair(including painting and decorating) of
public buildings or public works. Davis-Bacon Act and Related Act contractors and
subcontractors must pay their laborers and mechanics employed under the contract
no less than the locally prevailing wages and fringe benefits for corresponding work
on similar projects in the area. The Davis-Bacon Act directs the Department of Labor
to determine such locally prevailing wage rates. Affordable housing rehabilitation '
projects of eight (8) or more units using CDBG funds must ensure Davis-Bacon Act
compliance. Affordable housing rehabilitation projects of 12 or more units using
HOME funds must ensure Davis-Bacon Act compliance.
Environmental Review — Projects must have an Environmental Review unless they
meet criteria specified in HUD regulations that would exempt or exclude them from
Request for Release of Funds (RROF) and environmental certification requirements �
(24 CFR sections 58.1, 58.22, 58.34, 58.35 and 570.604).
j
Evidence of Procurement—All expenses incurred with grant funds require evidence
of procurement according to this Agreement. Please carefully read the Agreement
and related HUD rules to ensure compliance.
i
HUD Income Limits — The Sub-Recipient must ensure that HUD Income Limits j
(household income) are utilized when determining client eligibility for HUD-funded j
services. Income limits are posted further below.
1
Monthly Progress Report — The Sub-Recipient is required to submit a monthly
project progress report by the10th of the following month. The report must be signed j
by the person who prepared the report as well as the agency's authorizing party. The
report summarizes the progress made, expenses incurred and deliverables
completed. This report must be completed regardless of whether or not funds are
requested.
i
Monthly Financial Report — The Sub-Recipient is required to submit a monthly
financial report by the 10th of the following month regardless of whether or not funds
1
are requested. The report delineates project expenses incurred including non-City
funds and must include the corresponding evidence of expense incurred for any
expense which is being submitted for reimbursement.
Monthly Proformas — All Capital projects with multiple (more than one) funding
sources require the submission of monthly proformas to the City.
Professional Services Contracts — Professional services funded through this
Agreement must adhere to procurement guidelines as appropriate and have
executed written agreements between the Sub-Recipient and the respective Vendor.
Contracts must, at a minimum, specify the cost, timeline and scope of service. A copy
of all professional service contracts must be submitted to the City prior to
reimbursement request.
Proof of Insurance — Evidence of appropriate and required insurance must be
submitted prior to contract execution. No City funds will be disbursed prior to
submission of required insurance coverage.
Retainage — All capital projects are subject to the withholding of 10 percent of
appropriate expenses in the form of a retainage. All retained funds will be released
when the project fulfills its National Objective.
Section 3 Compliance — Any Agreement greater than $200,000 that involves
rehabilitation, housing construction, or other public construction, requires the Sub-
Recipient complete and submit to the City Form HUD 60002, Section 3 Summary
Report, Economic Opportunities for Low- and Very-Low Income Persons (OMB No.
2529-0043). '
i
i
1
Service Deliverables
Services must be delivered as follows:
a I
7Rehab of Hardin 1 8520 Harding 5 months
9 9
Apartments Avenue
I
Service Benchmarks
Construction completion Receipt of Certificate of Completion CC with 70 HOME
Program-Eligible Units
2
Service Documentation
Services will be deemed as provided when the following documentation is provided
within the noted timeframes:
Rehabilitation IJanuary3l, 2015
Applicable Federal Regulations
The Sub-Recipient must apply to all applicable federal regulations including:
I. Non-Discrimination and Equal Access
No person in the United States shall on the grounds of race, color, national origin,
religion or sex be excluded, denied benefits or subjected to discrimination under any
program funded in whole or in part by CDBGIHOME funds. The Provider must take
measures to ensure non-discriminatory treatment, outreach and access to program
resources. This applies to employment and contracting, as well as to marketing and
selection of program participants.
Fair Housing and Equal Opportunity
The Provider must comply with all the following Federal laws, executive orders and
regulations pertaining to fair housing and equal opportunity. They are summarized
below:
Title VI of the Civil Rights Act of 1964, As Amended (42 USC 2000d et seq.):
States that no person may be excluded from participation in, denied the benefits
of, or subjected to discrimination under any program or.activity receiving Federal
i
financial assistance on the basis of race, color or national origin. The regulations
implementing the Title VI Civil Rights Act provisions for HUD programs may be
found in 24 CFR Part 1.
The Fair Housing Act(42 USC 3601-3620): Prohibits discrimination in the sale or
rental of housing, the financing of housing or the provision of brokerage services
against any person on the basis of race, color, religion, sex, national origin, i
handicap of familial status. Fair Housing Act implementing regulations may be
found in 24 CFR Part 100-115.
Equal Opportunity in Housing (Executive Order 19063, as amended by Executive
Order 12259): Prohibits discrimination against individuals on the basis of race,
color, religion, sex or national origin in the sale, rental, leasing or other
disposition of residential property, or in the use or occupancy of housing assisted
with Federal funds. Equal Opportunity in Housing regulations may be found in 24 i
CFR.Part 107.
Age Discrimination Act of 1975, As Amended (42 USC 6101): Prohibits age
discrimination in programs receiving Federal financial assistance. Age
Discrimination Act regulations may be found in 24 CFR Part 146.
3
Section 109 of Title I of the Housing and Community Development Act of 1974:
Requires that no person shall be excluded from participation in, denied the
benefits of, or be subjected to discrimination under any program or activity
funded with CDBG/HOME funds on the basis of race, color, religion, national
origin or sex.
Affirmative Marketing
The Provider must adopt affirmative marketing procedures and requirements for all
CDBG/HOME-assisted housing with five or more units. Requirements and
procedures must include:
1. Methods for informing the public, owners and potential tenants about fair
housing laws and the Provider's policies (for example: use of the Fair
Housing logo or equal opportunity language);
2. A description of what owners and/or the Provider will do to affirmatively
market housing assisted with CDBG/HOME funds;
3. A description of what owners and/or the Provider will do to inform persons
not likely to apply for housing without special outreach;
4. Maintenance of records to document actions taken to affirmatively market ,
CDBG/HOME-assisted units and to assess marketing effectiveness; and
5. A description of how efforts will be assessed and what corrective actions
will be taken where requirements are not met.
Handicapped Accessibility
The CDBG/HOME regulations also require adherence to the three following
regulations governing the accessibility of Federally-assisted buildings, facilities and
programs.
Americans with Disabilities Act (42 USC 92931; 47 USC 155, 201, 218 and 225):
Provides comprehensive civil rights to individuals with disabilities in the areas of
i
employment, public accommodations, state and local government services and
telecommunications. The Act, also referred to as the ADA, also states that
discrimination includes the failure to design and construct facilities (built for first
i
occupancy after January 26, 1993) that are accessible to and usable by persons
with disabilities. The ADA also requires the removal of architectural and
communication barriers that are structural in nature in existing facilities. Removal
must be readily achievable, easily accomplishable and able to be carried out
without much difficulty or expense.
Fair Housing Act. Multi-family dwellings must also meet the design and
construction requirements at 24 CFR 100.205, which implement the Fair Housing
Act (42 USC 3601-19)
Section 504: Section 504 of the Rehabilitation Act of 1973 prohibits
discrimination in federally assisted programs on the basis of handicap. Section
504 imposes requirements to ensure that "qualified individuals with handicaps"
have access to programs and activities that receive Federal funds. Under
Section 504, recipients and Sub-Recipients are not required to take actions that
4
create unique financial and administrative burdens or after the fundamental
nature of the program. For any Provider principally involved in housing or social
services, all of the activities of the agency -- not only those directly receiving
Federal assistance -- are covered under Section 504. Contractors or vendors are
subject to Section 504 requirements only in the work they do on behalf of the
Provider or the City. The ultimate beneficiary of the Federal assistance is not
subject to Section 504 requirements.
The Architectural Barriers Act of 1968 (42 USC 4151-4157): Requires certain
Federal and Federally-funded buildings and other facilities to be designed,
constructed or altered in accordance with standards that ensure accessibility to,
and use by, physically handicapped people.
II. Employment and Contracting '
The Provider must comply with the regulations below governing employment and
contracting opportunities. These concern equal opportunity, labor requirements and
contracting/procurement procedures.
Equal Opportunity
The Provider must comply with the following regulations that ensure equal
opportunity for employment and contracting:
Equal Employment Opportunity, Executive Order 11246, as amended: Prohibits
discrimination against any employee or applicant for employment because of
i
race, color, religion, sex or national origin. Provisions to effectuate this
prohibition must be included in all construction contracts exceeding $10,000.
Implementing regulations may be found at 41 CFR Part 60.
Section 3 of the Housing and Urban Development Act of 1968: Rem mires that, to
the greatest extent feasible, opportunities for training and employment arising
from CDBG/HOME funds will be provided to low-income persons residing in the i
program service area. Also, to the greatest extent feasible, contracts for work(all
i
types) to be performed in connection with CDBG/HOME will be awarded to
business concerns that are located in or owned by persons residing in the
program service area. j
Minority/Women's Business Enterprise: Under Executive Orders 11625, 12432
i
and 12138, the City and the Provider must prescribe procedures acceptable to
HUD for a minority outreach program to ensure the inclusion, to the maximum
extent possible, of minorities and women, and entities owned by minorities and i
women, in all contracts (see 24 CFR 85.36(e)).
Labor Requirements
The Provider must comply with certain regulations on wage and labor standards. In
the case of Davis-Bacon and the Contract Work Hours and Safety Standards Acts,
every contract for construction (in the case of residential construction, projects with
eight or more units) triggers the requirements.
5
Davis-Bacon and Related Acts (40 USC 276(A)-7): Ensures that mechanics and
laborers employed in construction work under Federally-assisted contracts are
paid wages and fringe benefits equal to those that prevail in the locality where
the work is performed. This act also provides for the withholding of funds to
ensure compliance, and excludes from the wage requirements apprentices
enrolled in bona fide apprenticeship programs.
Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333):
Provides that mechanics and laborers employed on Federally-assisted
construction jobs are paid time and one-half for work in excess of 40 hours per ,
week, and provides for the payment of liquidated damages where violations
occur. This act also addresses safe and healthy working conditions.
(
Copeland Anti-Kickback) Act (40 USC 276c): Governs the deductions from
p
paychecks that are allowable. Makes it a criminal offense to induce anyone
employed on a Federally assisted project to relinquish any compensation to
which he/she is entitled, and requires all contractors to submit weekly payrolls
and statements of compliance.
Fair Labor Standards Act of 9938, As Amended (29 USC 209, et. seq.):
Establishes the basic minimum wage for all work and requires the payment of
overtime at the rate of at least time and one-half. It also requires the payment of
wages for the entire time that an employee is required or permitted to work, and
establishes child labor standards.
Contracting and Procurement Practices
The CDBG/HOME programs are subject to certain Federal procurement rules. In
addition, the City and the Provider must take measures to avoid hiring debarred or
suspended contractors or Sub-Recipients and conflict-of-interest situations. Each is
briefly discussed below.
Procurement: For the City, the procurement standards of 24 CFR 85.36 apply.
For non-profit organizations receiving CDBG/HOME funds, the procurement
requirements at 24 CFR Part 84 apply.
Conflict of Interest: The CDBG regulations require grantees (the City), state
i
recipients and Sub-Recipients (the Provider) to comply with two different sets of ,
conflict-of-interest provisions. The first set of provisions comes from 24 CFR j
Parts 84 and 85. The second, which applies only in cases not covered by 24
CFR Parts 84 and 85, is set forth in the CDBG regulations. Both sets of
requirements are discussed below.
The provisions at 24 CFR 85.36 and 24 CFR 84.42 apply in the
procurement of property and services by grantees (the City), state recipients,
and Sub-Recipients (the Provider). These regulations require the City and
the Provider to maintain written standards governing the performance of their
employees engaged -in awarding and administering contracts. At a minimum,
these standards must:
Require that no employee, officer, agent of the City or the Provider shall
participate in the selection, award or administration of a contract supported
6
I
by CDBG/HOME if a conflict-of-interest, either real or apparent, would be
involved;
Require that employees, officers and agents of the City or the Provider
not accept gratuities, favors or anything of monetary value from contractors,
potential contractors or parties to Sub-Agreements; and
Stipulate provisions for penalties, sanctions or other disciplinary actions
for violations of standards.
HOME-funded projects must comply with 24 CFR 92.356.
i
A conflict would arise when any of the following has a financial or other interest in a
i
firm selected for an award:
- An employee, agent or officer of the City or the Provider;
- Any member of an employee's, agent's or officer's immediate family;
- An employee's, agent's or officer's partner; or
- An organization that employs or is about to employ an employee, agent or
officer of the City or the Provider.
The CDBG/HOME regulations. at 24 CFR 570.611 and 24 CFR 92.356
governing conflict-of-interest apply in cases not covered by 24 CFR 85.36 and 24
CFR 84.42. These provisions cover employees, agents, consultants, officers and
elected or appointed officials of the grantee (the City), state recipient or Sub-
Recipient (the Provider). The regulations state that no person covered who
exercises or has exercised any functions or responsibilities with respect to
CDBG/HOME activities or who is in a position to participate in decisions or gain
inside information:
May obtain a financial interest or benefit from a CDBG activity; or
Y Y
Have an interest in any contract, subcontract or agreement for themselves
or for persons with business or family ties.
This requirement applies to covered persons during their tenure and for one year
after leaving the grantee (the City), the state recipient or Sub-Recipient (the Provider)
entity.
Upon written request, exceptions to both sets of provisions may be granted by HUD
on a case-by-case only after the City has:
Disclosed the full nature of the conflict and submitted proof that the
disclosure has been made public; and
Provided a legal opinion from the City stating that there would be no
violation of state or local law if the exception were granted.
Debarred contractors: In accordance with 24 CFR Part 5, CDBG/HOME funds may
not be used to directly or indirectly employ, award contracts to or otherwise engage
the services of any contractor or Sub-Recipient during any period of debarment,
suspension or placement of ineligibility status. The City should check all contractors, 1
7
subcontractors, lower-tier contractors or Sub-Recipients against the Federal
publication that lists debarred, suspended and ineligible contractors.
III. Environmental Requirements
The City is responsible for meeting a number of environmental requirements,
including environmental reviews, flood insurance, and site and neighborhood
standards.
Environmental Review
The City is responsible for undertaking environmental reviews in accordance with the
requirements imposed on "recipients" in 24 CFR 58. Reviews must be completed,
and Requests for Release of Funds (RROF) submitted to HUD before CDBG/HOME
funds are committed for non-exempt activities. Private citizens and organizations
may object to the release of funds for CDBG/HOME projects on certain procedural
grounds relating to environmental review (see 24 CFR 58.70 - 58.77). To avoid
challenges, grantees (the City) and Sub-Recipients (the Provider) should be diligent
about meeting procedural requirements.
Flood Insurance
Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106): Requires
that CDBG/HOME funds shall not be provided to an area that has been identified by
the Federal Emergency Management Agency (FEMA) as having special flood
hazard, unless: The community is participating in the National Flood Insurance
Program, or it has been less than a year since the community was designated as
having special flood hazards; and Flood insurance is obtained.
IV. Lead-based Paint
On September 15, 1999, the "Requirements for Notification, Evaluation and i
Reduction of Lead-Based Paint Hazards. in Federally Owned Residential Property
and Housing Receiving Federal Assistance; Final Rule" was published within title 24
of the Code of Federal Regulations as art 35 24 CFR 35 . The regulation was
9 P ( ) �
issued under sections 1012 and 1013 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992, which is Title X (ten) of the Housing and Community
i
Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead-
Based Paint Poisoning Prevention Act of 1971, which is the basic law covering lead-
based paint in federally associated housing.
The regulation sets hazard reduction requirements that give much greater emphasis
to reducing lead in house dust. Scientific research has found that exposure to lead in
dust is the most common way young children become lead poisoned. Therefore, the
new regulation requires dust testing after paint is disturbed to make sure the home is I
lead-safe. Specific requirements depend on whether the housing is being disposed
of or assisted by -the federal government, and also on the type and amount of
financial assistance, the age of the structure, and whether the dwelling is rental or
owner occupied.
8
On April 22, 2008, the EPA issued a rule requiring the use of lead-safe practices and
other actions aimed at preventing lead poisoning to protect against the hazards
created by exposure to lead dust in existing structures built prior to 1978. Under the
rule, all contractors performing renovation, repair and painting projects that disturb
lead-based paint in homes, child care facilities, and schools built before 1978 must
be certified and follow specific work practices to prevent lead contamination. This rule
(40 CFR Part 745) is enforced as of April 22, 2010. The rule must be executed by all
sub-contractors.
Property Exempt from Lead-based paint regulation:
• Housing built since Janua ry 1, 1978, when lead paint was banned for
residential use;
• Housing exclusively for the elderly or people with disabilities, unless a child
under age 6 is expected to reside there;
• Zero-bedroom dwellings, including efficiency apartments, single-room
occupancy housing, dormitories or military barracks;
•
Property that has been found to be free of lead-based paint by a certified
lead-based paint inspector;
• Property where all lead-based paint has been removed;
• Unoccupied housing that will remain vacant until demolished;
• Non-Residential property; and
• Any rehabilitation or housing improvement that does not disturb a painted
surface.
Types of housing subject to 24 CFR 35:
• Federally-Owned housing being sold;
• Housing receiving a federal subsidy that is associated with the property,
rather than with the (p occupants (project-based assistance);
P j �
• Public housing;
�SuchHousing occupied by a family (with a child) receiving tenant-based subsidy
as a voucher or certificate);
• Multifamily housing for which mortgage insurance is being sought; and
• Housing receiving federal assistance for rehabilitation, reducing i
homelessness, and other special needs.
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If you want copies of the regulation or have general questions, you can call the
National Lead Information Center at (800) 424-LEAD, or TDD (800) 526-5456 for the
hearing impaired. You can also download the regulation and other educational
materials at http://www.hud.gov/offices/lead/index.cfm. For further information, you' i
may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at
lead regulations( hud.gov.
V. Displacement, Relocation, Acquisition and Replacement of Housing
CDBG/HOME projects involving acquisition, rehabilitation or demolition may be
subject to the provisions of the Uniform Relocation Act (UDA). Demolition or
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conversion of units with CDBG funds may trigger section 104 (d) (also known as the
"Barney Frank Amendment" requirements.)
VI. Compliance with National Objective
The Provider will ensure and maintain evidence that activities assisted with
CDBG/HOME funds from the City of Miami Beach comply with the primary National
Objective, "Benefit to Low and Moderate Income Persons" and will provide services
or activities that benefit at least 51% low and moderate income persons. A low or
moderate-income household is defined as: a household having an income equal to or
less than the limits cited below. Individuals who are unrelated but are sharing the
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same household shall each be considered as one-person households.
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Low and Moderate Household Income Limits-(Effective 05/14/2010) (Source: U.S.
Department of Housing & Urban Development) (Note: Low-Income (80% of Median
Income), Very Low-Income (50 % of Median Income), Extremely Low(30% of Median
Income)
HUD Income Limits for FY 2013
o $13,750 $15,700 $17,650 $19,600 $21,200 $22,750 $24,350 $25,900
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$22,900 $26,200 $29,450 $32,700 $35,350 $37,950 $40,550 $43,200
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• '. $27,480 $31, 440 $35,340 $39,240 $42,420 $45,540 $48,660 $51,840
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• $36,650 $41,850 $47,100 $52,300 $56,500 $60,700 $64,900 $69,050
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Change Orders/Budget Amendments
The goal should be to limit the use of Change Orders or Budget Amendments.
Change Orders and Budget Amendments require prior written approval by the City
Manager.
To request a Change Order or Budget Amendment, a written request for changes
must be submitted to your Grant Monitor delineating the changes and providing a
detailed justification for making the request. Approvals of any changes are at the sole
discretion of the City Manager.
No budget amendment will be processed after June 30, 2014 for Public Service
Projects. No budget amendment will be processed for Capital Projects Budgets after
eighty (80) percent of the available funds have been drawn.
10
Budget amendments or Change Orders that deviate from the original scope will be
rejected and the funds in question may be subject to recapture at the sole discretion
of the City Manager.
Compliance with Local Rules, Regulations, Ordinances and Laws
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The Sub-Recipient must remain incompliance with all local rules, regulations,
ordinances and laws (including having an active business license) in addition to
those specified in the body of the Agreement. In addition, the Sub-Recipient must not
owe any monies to the City at the time of Agreement execution or final release of
grant funds.
The City will verify with the Finance Department to ensure that no monies are due the
City prior to Agreement execution.
Employee/ Contractor File Review
The following documentation must be included in the Sub-Recipient's
employee/contractor file for those employees/contractors providing services under
this contract.
The following must be included in the employee files:
Employment Application
• Evidence of degree/credentials '
® Job Description Signed by Employee
• Evidence of Required Experience
• Florida Background Criminal Screening, if applicable
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National FBI Background Criminal Screening (Level 2), if applicable
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O Affidavit of Good Moral Character, if applicable
® Proof of Knowledge of Policies & Procedures, if applicable
• 1-9 Verification on File i
The City reserves the right to inspect those employee/contractor files whose salaries i
are funded in part or in whole by its funds.
Evaluation
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In its continuing effort to ensure contract compliance and performance, the City will
evaluate the Sub-Recipient in its fulfillment of the terms of this agreement including,
but not limited to, the following measures:
• Agreement compliance
• Leverage and fiscal soundness
11
A Accuracy and timeliness of Monthly Progress Reports
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• Accuracy and timeliness of Monthly Financial Reports
Adherence to project timelines
• Fulfillment of prescribed outcomes
Fiscal Stability
The Sub-Recipient is required to maintain fiscal stability throughout the terms of this
Agreement. This is to ensure the Sub-Recipient's ability to fulfill the terms of this
Agreement and meeting of the National Objective.
For affordable housing developers, fiscal stability policies are encouraged in
anticipation of additional HUD guidance regarding fiscal oversight for rental projects.
More so, as projects have extended lives, fiscal stability underscores the long-term
viability of the housing units.
Leverage
For HOME-funded projects, the Sub-Recipient must demonstrate the commitment of
other sources of funds committed to the City-funded project. Furthermore, all other
identified funds must be in place prior to the use of HOME funds.
The documentation that demonstrates this fiscal leverage is the Subsidy Layering
Review and underwriting.
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Monitoring & Performance Reviews
The City reserves the right to inspect, monitor and/or audit the Sub-Recipient to i
ensure contractual compliance. This includes, but is not limited to:
• Review of on-site service delivery
• Inspection and review of client, budgetary and employee files (for those
employees providing services under this Agreement)
Monitoring visits will take place within 120 days of the commencement of services. i
The City will notify the Sub-Recipient a minimum of three (3) business days prior to a
monitoring visit.
Performance Ratings
The Sub-Recipient agrees that its Performance Rating, the score awarded for
performance on the following measures, will be posted on the City's website on an
annual basis:
• Timely and accurate submission of Monthly Progress Report
• Timely and accurate submissions of Monthly Financial Reports
(reimbursement requests)
• Delivery of contracted service units
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Ratings will be given for each performance measure based on the following:
Timely and accurate submission of ➢ "0" for failing to submit on time
Monthly Progress Report ➢ "25" for submitting on time
Timely and accurate submissions of ➢ "0" for failing to submit accurate report
Monthly Financial Report(reimbursement with back-up material on time
requests) ➢ "25" for submitting accurate report on
time
Delivery of contracted service units within Possible score of 0 to 50 based upon
contracted timeframe completion of projected service units. j
Score is pro-rated if total projected
service units are not met.
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Proformas
Capital projects must submit certified monthly proformas that indicate project funding
sources and correlating uses. Proformas must be certified by the preparing party as
well as the agency's signatory as reflected_within this Agreement.
Reporting Requirements
The Contractor will provide the City with a Monthly Progress Report and Monthly
Financial Report by the 10th of the following month. In the event that the 10tt' of the
monthh i iands on a Saturday, Sunday or holiday, the repor t must be submitted the
following business day.
The following chart depicts the submission dates for the first year of this Agreement:
October 2014 November 10,2014
November 2014 December 10,2014
December 2014 January 12,2014
January 2015 February 10,2014
February 2015 March 10,2014
March 2015 April 10,2014
April 2015 May 11,2014
May 2015 June 10,2014
June 2015 July 10, 2014
July 2015 August 10,2014
August 2015 September 10,2014
September 2015 October 12,2014
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Reports should then be submitted on the I of each month thereafter, for the term
of this Agreement.
Monthly reports will be submitted via any of the following methods:
• Standard mail
• Hand delivery
Monthly reports will not be considered acceptable unles s the following is met:
• Forms are completely and accurately filled
• Necessary back-up materials are included (evidence of expense incurred,
invoices, time logs, executed AIA Forms, etc.)
• Reports bear the signature of the person preparing the report and the Sub-
;
Recipient's authorized signatory
Monthly Progress Reports should encapsulate a project's progress in alignment with
the funds expended.
Rent Roll Submissions
Sub-Recipients using City funds for the creation or rehabilitation of affordable housing
must submit tenant rent rolls within thirty (30) days of meeting the National Objective
and every year thereafter for a minimum of fifteen (15) years in adherence with the
affordability period required with use of these funds. For completed projects, certified
tenant rolls must be submitted annually by November 1St. Tenant rolls must be
certified by the Sub-Recipient Agency's authorized signatory.
Those projects with a longer affordability period require annual tenant rolls for the
period of of Fordability established it the City's Restrictive Covenant and/or mortgage.
These tenant rolls must be submitted by November 1 St of each year of affordability.
Tenant rolls must be certified by the Sub-Recipient Agency's authorized signatory.
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Retainage
All capital projects utilizing HUD funds are subject to a ten (10) percent retainage that
will not be released until the National Objective is met. Retainage will be held as ,
appropriate from all submitted reimbursement requests.
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Subsidy Layering Review
All affordable housing projects using CDBG/HOME funds require the completion of
an independent Subsidy Layering Review and underwriting. These reviews must be
completed prior to the project being submitted via HUD's IDIS system and precedes
the incurrence of any related funds. Therefore, no capital projects will be deemed
14
eligible for reimbursement until the Subsidy Layering Review and underwriting have
been received and accepted by the City.
The expense for the Subsidy Layering Review and underwriting services are eligible
for reimbursement if the project proceeds but is not eligible for reimbursement
otherwise.
Timeliness of Reimbursement Requests
Reimbursement requests must be submitted no later than sixty (60) days from the
incurrence of the expense. The City will strictly monitor this element. Please note that
cancelled checks must be submitted in conjunction with all reimbursement requests.
Therefore, the Sub-Recipient should calendar itself accordingly to ensure that
reimbursement requests are submitted to the City in a timely manner.
Training Requirements
The Sub-Recipient must ensure that the person responsible for preparing the Monthly
Progress Report and Monthly Financial Report attends the City's Sub-Recipient
Reporting Training and places the attendance certificate in the employee's personnel
file for inspection by the City during its monitoring visit.
Additional Documentation
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The folloWi ng documentation must be submitted with this executed agreement:
• All required insurance certificates 1
• Copy of current audit
• Copy of required business licenses and permits
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EXHIBIT"B"
"DOCUMENTATION"
The Sub-Recipient agrees to provide the following documents as part of its reporting
requirements:
To Document Insurance Coverage:
• Copy of insurance policy or binder(with proof of payment)with limits and {
scope of coverage
To Document Client Eligibility and Service:
• Client attendance logs
• Intake and screening forms
• Executed client consent agreements
To Document Fiscal Leverage:
• Monthly project proformas (for capital projects only)
To Document Procurement:
• Evidence of at least three (3) quotes obtained for service/item
• Formal bid process including advertisement, scope, respondents and scoring
To Document Expenses Incurred:
• Cancelled checks with copy of referenced invoice
• Electronic payroll ledgers with corresponding bank transactions (statement)
• Executed professional service agreements (subject to procurement)
• Executed and notarized AIA Forms (for capital projects only)
• Executed and Filed Release of Lien (for capital projects only)
• Copies of valid work permits ad clearances (for capital projects only)
To Document Construction Completion:
• Certificate of Occupancy(CO)
To Document Lease-up of Affordable Housing:
• Rent rolls
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Tenant applications (with proof of income)
16
EXHIBIT"C"
"BUDGET"
The attached budget reflects the scope of expenses that may be incurred through
this Agreement. All expenses must comply with applicable rules and regulations
including Procurement and Davis Bacon Act.
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( Marding Village Rehabilitation .':'.
City of City of
Code Scope of Work Miami Beach Miami '
HOME Beach
HOME
228,667.00 93,000.00
1000 DIVISION 1-GENERAL CONDONDITIONS AND REQUIREMENTS
TOTAL . DIVISION
2000 DIVISION 2-SITEWORK
camera Inspection performed prior to.commencing work and
M1 °restore area 89,000.00
..TOTAL COST DIVISION 2 81,000.00
3.900 •`."DIVl-SION 3.-'CONCRETE :.:..
200 '.:;dFt®paJr.threshpld.curbs at�iitry doors�or.Witerproofing ::07,200.00 -
TOTAL • DIVISION 37,200.00
::4000 ::cDIVISION 4••MASONRY
4999 TOTAL COST DIVISION4
;5000 `DIVISION 5-,METgLS
TOTAL • DIVISION
'BOOp ;..•.'�IVISIDN6-�AIOODS.ANDPLAST�CS-,.:::.".`.;•,.:: ._ - ;%.:+ ; ;
TOTAL •
7000 4lVIS10N 7!:T.N RMAL pND[I(IOISTURE PROTECTION
x'!51 •':`ReroeT Building'A'.::'.:':•;.;'. ,'°:';:;; :;':.. _13,667,00 :`.75,000A '
BD00. DIVISION:B::-MOORS AND WINDOWS ;; -..'
TOTAL . DIVISION
8000 DIVI5JON.D-.F.INISHES.
9101. . ,_'Repair. nd Flobr.tfellings pf l3ullding'A'-. X7,000.00
.9999 TOTAL COST DIVISION 9 27111 11
.-•9 RWO. :.:;;DIVI$ION'D.=:SPECIALTIES +
.10999 TOTAL COST DIVISION 10
.:11000 = 11-0 ;,EQUIPMENT
TOTAL 11999 -
'12000 ?;'pIVIS10N,12 JURNISHINGS :•:.:........ ...:..... •. -::
TOTAL COST DIVISION 12
'95000: O1vJSIGiV -:$PECiAL.CONSTft1JCTlOiv '.
13999 a TAL COSTDIVISION 1
:14000
--.14999 TOTAL COST DIVISION 14
950D0.: .'tip1Y�SION MLCMANICAL
TOTAL • DIVISION
'16000 .;;;p1VlS10N 96-°ELECTRICAL :`::' :' :.
TOTAL DIVISION
19000 :•'Div 9 9=0aft Costs
18300 . Cpnstruction-Centingencles 10,000.00 1,000.00
19350 Professional Services-Architectural 10,000.00 S46.73
19400 Professional Services-Other- .2,844.00 654.87
19450 Building Permit Fees 9,500.00 369.91
19500 Inspection Fees 7,000,00 024.78
19550 Other Project Costs 8,465.72 2,216.47
29100 Fees = .30,990.17 '12,584.20 t
TOTAL • DIVISION
4GRAND III
PARE 1 OF 1
EXHIBIT "ID"
"FINANCIAL MANAGEMENT"
To comply with federal regulations, each program must have a financial management
system that provides accurate, current and complete disclosure of the financial status
of the activity. This means the financial system must be capable of generating
regular financial status reports which indicate the dollar amount allocated for each
activity (including any budget revisions), amount obligated (i.e., for which contract
exists), and the amount expended for each activity. The system must permit the
comparison of actual expenditures and revenues against budgeted amounts. The
City must be able to isolate and to trace every CDBG dollar received and prove
-where it went and for what it was used.
The City is responsible for reviewing and certifying the financial management of any
operating agency, which is not a City department or bureau, in order to determine
whether or not it meets all of the above requirements. If the agency's system does
I
not meet these requirements and modifications are not possible, the City must
administer the CDBG funds for the operating agency.
Support for Expenditures
Sufficient support for expenses depends on the type of expenditure. They normally
include the following items:
• Salaries- Should be supported by proper documentation in personnel files of hire '
date, position, duties, compensation, raises with effective date, termination date,
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and similar type information. Non-exempt employees are required by law to
complete a timesheet showing number of hours they worked during the day. All
employees paid in whole or in part from CDBG funds should prepare a time sheet
indicating the hours worked on CDBG projects for each pay period. Based on
these time sheets and the hourly payroll costs for each employee, a voucher
statement indicating the distribution of payroll charges should be prepared and
placed in the appropriate files.)
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• Employee Benefits - Should be supported by personnel policies and procedures j
manual, describing the types of benefits, eligibility and other relevant information.) 1
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Professional Services - Should be supported by a complete and signed copy of
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the contract between the organization and the independent contractor, describing
at the minimum, period of service, type of service and method for payments, in
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addition to the invoice from the private contractor.)
• Purchases - At a minimum, purchases should be supported by a purchase order,
packing list and vendor invoice. Credit card statements, travel itineraries, vendor
statements and similar items do not represent support for an expense.
18
Records
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Accounting records must be supported by source documentation. Invoices, bills of
lading, purchase vouchers, payrolls and the like must be secured and retained for
four years in order to show for what purpose funds were spent. Payments should not
be made without invoices and vouchers physically in hand. All vouchers/invoices
should be on vendor's letterhead. Financial records are to be retained for a period of
four years, with access guaranteed to the City, to HUD or Treasury officials or their
representative. ;
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Audits '
For years beginning after June 30, - 1996,* all - nonprofit organizations, state
governments, and local governments that receive Federal funding fall under the
revised OMB Circular A-133, Audits of States, Local Governments, and Nonprofit
Organizations. Non-Federal entities that expend $500,000 or more in a year in
Federal awards must have a single or program-specific audit.
One copy of the sub-recipient or vendors' audited financial statement shall be
submitted to the City immediately following the end of the fiscal year(s) during which
CDBG funds are received.
All auditees must submit to the Federal Audit Clearinghouse (FAC) a data collection
form (Form SF-SAC) and reporting package upon completion of the annual audit in
accordance with OMB Circular A-133. The deadline for this submission is the earlier
of the 30 days after receipt of the auditor's report(s), or nine months after the end of
the audit period, unless a longer period is agreed to in advance by the cognizant or
oversight agency for the audit. Address for submission is:
The Federal Audit Clearinghouse
1201 E. 10t" Street
Jeffersonville, IN 47132
Phone (301) 457-1551 or(800) 253-0696
Email: gov.fac(cpcensus.gov I
Web: http://harvester.census. oq v/sac
19
EXHIBIT"E"
Funding Requirements for the Initial Draw, in the Amount of$185,272
Upon execution of the Note and Mortgage by CARRFOUR,CARRFOUR will initiate the Initial
Draw request in the amount of$185,272.This Initial Draw request will be comprised of the following:
Forms included in the workshop computer disc:
• Reimbursement request form for the month of September, 2014 due by 1:00 PM on
September 26, 2014.
• Monthly Financial Report for the month of September, 2014 due by 1:00 PM on
September 26, 2014.
• Monthly Financial Statement for the month of September, 2014 due by 1:00 PM on
September 26, 2014.
• Monthly Project Progress Report for the month of September, 2014 due by 1:00 PM
on September 26, 2014.
Forms/documents not included in the computer disc:
• AIA Application and Certification for Payment(G702, G703) by 1:00 PM on
September 26, 2014 if enough work has been completed to issue AIA Application and
Certification. In the event that an AIA Application and Certification for Payment
cannot be issued by September 26, 2014 then it will be provided as soon as sufficient
work is completed to issue an AIA Application and Certification for Payment.
• Request for advance payments to be paid into escrow account, due by 1:00 PM on
September 26, 2014.
• Copies of any other invoices that were paid, due by 1:00 PM on September 26, 2014.
• Three sets of the Note and Mortgage by 1:00 PM on September 26, 2014.
Both CARRFOUR and The City of Miami Beach agree that the funds received from the Initial
Draw($185,272)will be placed in an escrow account held by CARRFOUR.This account will hold all
funds associated with this initial draw and all payments related to the work performed on the Project
will be paid from said account. It has been mutually agreed that CARRFOUR will have until November
15,2014 to spend these funds. If the funds are not appropriately disbursed by said date,as approved
by the City and pursuant to this Home Program Agreement,said funds shall be reimbursed to the City,
with an appropriate accounting of how the expended portion of the Initial Draw was spent.
In addition to the above items,all which are due by 1:00 PM on September 26,2014,
CARRFOUR will provide The City of Miami Beach with the following:
• Accounting for all advanced funds no later than October 14, 2014. Accounting shall
consist of substantiating the appropriate disbursements for the Project through
October 14, 2014 ("Paid Funds from Initial Draw") and how much of the Initial Draw
is left in the escrow account ("Escrowed Sums"), which Escrowed Sums must be
properly disbursed, with the approval of the City, by no later than November 15,
2014; otherwise any remaining Escrowed Sums shall be returned to the City.
• Releases of Liens (partial release for work completed), no later than November 15,
2014.
• Copies of all checks issued for work completed on the Project, no later than
November 15, 2014.
• Third-Party Inspection Report, no later than November 15, 2014 (Carrfour will
engage the inspector).
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving the one-time use of advance
drawdowns of HOME Program funds by Carrfour Supportive Housing to fund its Harding Village rehabilitation project to
facilitate the City's timely expenditure of U.S. HUD HOME Program affordable housing funds and avoid any recapture of the
funds by HUD; and further authorizing the City Manager, or his designee, to review and approve such draw requests.
Key Intended Outcome Supported:
Revitalize Key Neighborhoods, Starting with North Beach and Ocean Drive
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2014 Community Satisfaction Survey, 81% of
residents would recommend the City to family and friends as a place to live.
Item Summary/Recommendation:
The City is facing the possibility of the de-obligation/recapture of $185,272 of HOME funds by U.S. HUD based on its
September 30, 2014 expenditure deadline. This condition is related to the City's history of allocating all of its HOME funds to
Miami Beach Community Development Corporation (MBCDC). Due to that organization's inability to successfully complete
some of the proposed projects, and the City's need to cancel projects and recapture the funds, the City must adjust its
funding/spending to meet the required expenditure deadlines.
While the City traditionally manages its HUD-funded contracts on a reimbursement basis, HUD allows for advance draws.
According to the Code of Federal Regulations, 24 CFR 92.502, HOME Program funds drawn from the United States Treasury
account must be expended for eligible costs within fifteen (15) days. Currently, the City policy is to reimburse Sub-recipients
after they have expended their own funds for all eligible expenses incurred under the contract with the City. The proposed
advance draw will ensure that the City does not have to surrender otherwise expiring funds to HUD and ensuring their use to
preserve much-needed affordable housing. Further, the advance amount will not exceed the value of those funds subject to
recapture ($185,272) and the documentation of the appropriate expenditure of these funds must be submitted prior to the
reimbursement of any remaining funds ($136,280). In addition, the City's financial interests for the full value of the award will
be secured through the execution of a 30-year mortgage to ensure the property's use as affordable housing. The mortgage is
executed at the same time as the HOME funding documents and further ensures that HUD funds are expended as required.
The Administration recommends that the Mayor and City Commission approve the one-time use of advance drawdowns of
HOME Program funds by Carrfour Supportive Housing to fund its Harding Village rehabilitation project to facilitate the City's
timely expenditure of U.S. HUD HOME Program affordable housing funds and avoid any recapture of the funds by HUD; and
further authorizing the City Manager, or his designee, to review and approve such draw requests to ensure compliance with
HUD rules.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Funds: Amount Account/Funding
1 $185,272 HOME Investment Partnership Funds
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Maria Ruiz/Housing&Community Development
Sign-Offs:
Department Director Assist pt City Manager City Manager
MLR KGB J L M
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AGENDA.ITEM C7
MIAMIBEACH DATE f-_&-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachf.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Membe rs of he City C mmission
FROM: Jimmy L. Morales, City Manager
DATE: September 10, 2014
SUBJECT: A RESOLUTION OF THE MAYOR XND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ONE-TIME USE OF
ADVANCE DRAWDOWNS OF HOME INVESTMENT PARTNERSHIP
(HOME) PROGRAM FUNDS BY CARRFOUR SUPPORTIVE HOUSING TO
FUND ITS HARDING VILLAGE REHABILITATION PROJECT TO
FACILITATE THE CITY'S TIMELY EXPENDITURE OF SAID FUNDS AND
AVOID ANY RECAPTURE OF THE FUNDS BY HUD; AND FURTHER
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO REVIEW
AND APPROVE SUCH DRAW REQUESTS.
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. As an entitlement community, the City qualifies
for an annual allocation under HUD's grant programs. The HOME Program was started in 1992
to provide funding specifically for affordable housing. HUD allocates these housing funds to
strengthen public/private partnerships and expand the supply of affordable housing that is
decent, safe, and sanitary.
The HOME Program has 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. 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 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).
ANALYSIS
The City is facing the possibility of the de-obligation/recapture of $185,272 of HOME funds by
HUD based on its September 30, 2014 expenditure deadline. This condition is related to the
City's history of allocating all of its HOME funds to Miami Beach Community Development
Corporation (MBCDC). Due to that organization's inability to successfully complete some of the
Commission Memorandum—Carrfour Advance Draw
September 10, 2014
Page 2 of 3
proposed projects, and the City's need to cancel projects and recapture the funds, the City must
adjust its funding/spending to meet the required expenditure deadlines.
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Carrfour Supportive Housing requested, and has been allocated, a total of $321,552 of HOME
funds for the repair/rehabilitation of its 92-unit Harding Village Apartments located at 8520
Harding Avenue. This property, which is currently occupied, provides affordable housing for
formerly homeless and low-income individuals (including veterans) but has fallen into disrepair
and is in need of rehabilitation. Carrfour will not be able to complete the project, but can perform
enough of the construction to cover the amount necessary to satisfy the expenditure
requirement. However, the time constraints are so limited that the City may need to provide an
advance draw in order that the expenditure deadline can be satisfied.
While the City traditionally manages its HUD-funded contracts on a reimbursement basis, HUD
allows for advance draws. According to the Code of Federal Regulations, 24 CFR 92.502,
HOME Program funds drawn from the United States Treasury account must be expended for
eligible costs within fifteen (15) days. Currently, the City policy is to reimburse Sub-recipients
after they have expended their own funds for all eligible expenses incurred under the contract
with the City. The proposed advance draw will ensure that the City does not have to surrender
otherwise expiring funds to HUD and ensuring their use to preserve much-needed affordable
housing. Further, the advance amount will not exceed the value of those funds subject to
recapture ($185,272) and the documentation of the appropriate expenditure of these funds must
be submitted prior to the reimbursement of any remaining funds ($136,280). In addition, the
City's financial interests for the full value of the award will be secured through the execution of a
30-year mortgage to ensure the property's use as affordable housing. The mortgage is executed
at the same time as the HOME funding documents and further ensures that HUD funds are
expended as required.
To ensure that all expenses are eligible, accurate, and properly reflect work completed, Housing
and Community Services (HCS) staff will require the submission of the following documentation
within 15 days of the advanced draw:
• Application and Certification for Payment AIA Document G702 and G703 (Schedule of
Values) signed by the contractor and architect, and notarized;
• Any change orders or deviations from the original Scope of Work or Budget for Scope of
Work will require City Manager approval and will be submitted on an Application and
Certification for Payment AIA Document G701, signed by the contractor and architect,
and notarized;
• Lien waivers from each General Contractor, contractor, and/or subcontractor for the
funds being requested will be submitted with the Application and Certification for
Payment;
• Verification of payment of Davis-Bacon Wages and other labor standards, including
original, signed payroll certificates for previous work completed; and
• Construction status reports as required by contract.
HCS staff will review the draw request and provide comments, notations and recommendations
on the request, including review of the back-up documentation to ensure documentation is
consistent with the Scope of Work and Budget for Scope of Work attached to the grant
agreement. If the City finds fault with any aspect of the expenditures or documentation of such,
Carrfour will be required to cure as per the City's agreement. Failure to cure will trigger a default
and Carrfour's full repayment of all HOME funds to the City. These processes ensure that all
advance funds are expended according to HUD requirements and that the City's interests are
protected.
Commission Memorandum —Carrfour Advance Draw
September 10, 2014
Page 3of3
HCS staff will require submission of copies of cancelled check(s) evidencing full payment to the
construction contractor(s) for the goods and services provided, as reflected in the draw request.
Failure to provide a cancelled check(s) will result in the withholding of any future draw request
payments. Site visits will also be performed to confirm that documentation and work completed
are consistent as well as ensure compliance with Davis-Bacon Act and other federal
expenditure requirements.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the one-time use
of advance drawdowns of HOME Program funds by Carrfour Supportive Housing to fund its
Harding Village rehabilitation project to facilitate the City's timely expenditure of U.S. HUD
HOME Program affordable housing funds and avoid any recapture of the funds by HUD; and
further authorizing the City Manager, or his designee, to review and approve such draw
requests to ensure compliance with HUD rules.
JLM/K /MLR/ARB
T:\AGENDA\2014\September 10\Carrfour Harding Village Draw Memo