96-22184 RESO
RESOLUTION NO. 96-22184
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE A HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT BETWEEN
THE CITY AND THE MIAMI BEACH DEVELOPMENT
CORPORATION PROVIDING SEVEN HUNDRED THIRTY-EIGHT
THOUSAND TWO HUNDRED FORTY-FOUR DOLLARS ($738,244)
FOR THE ACQUISITION AND PRE-DEVELOPMENT COSTS OF
THE JEFFERSON APARTMENTS, AT 542 JEFFERSON AVENUE,
A PROJECT TO REHABILITATE AN EXISTING VACANT BUILDING
TO PROVIDE 27 RENTAL UNITS FOR ELDERLY PERSONS
MEETING THE ELIGIBILITY REQUIREMENTS OF THE HOME
PROGRAM.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of
Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funding through
the HOME Investment Partnerships (HOME) Program; and
WHEREAS, the HOME Program encourages partnerships with the private sector and non-
profit housing providers in order to expand the supply of affordable housing; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No. 93-
20756, designating the Miami Beach Development Corporation (MBDC) as a Community Housing
Development Organization (CHDO); and
WHEREAS, in accordance with the HOME regulations, the City must reserve a minimum
of fifteen percent (15%) of each fiscal year's HOME allocation for a CHDO set-aside for investment
in housing to be developed, sponsored, or owned by CHDO's; and
WHEREAS, on December 20, 1995, the Mayor and City Commission approved Resolution
No. 95-21850, authorizing the execution of a HOME Program Agreement providing for a reservation
of funds in the amount of $695,194 (Fund Reservation) for CHDO eligible projects to be developed,
sponsored or owned by MBDC, consistent with the City's Consolidated Plan; and
WHEREAS, on July 3, 1996, the Mayor and City Commission approved Resolution No. 96-
22045, adopting the City's 1996/1997 One-Year Action Plan for Federal Funds; and
WHEREAS, the Action Plan budgeted fifteen percent (15%) of the City's 1996/97 HOME
entitlement allocation to MBDC for CHDO projects, as required by the HOME Program regulations;
and
WHEREAS, MBDC has applied for funding from HUD under the Section 202 Program to
provide housing for the elderly and, in the event the application for funding through the Section 202
Program is approved, the funds required from the City's HOME Program will be reduced to $169,519;
and
WHEREAS, the City's Loan Review Committee, at its October 18, 1996 meeting, reviewed
MBDC's application for assistance and recommended its approval by the Mayor and City
Commission; and
WHEREAS, the proposed acquisition and rehabilitation of the Jefferson Apartments to
provide rental housing for elderly persons is consistent with the City's Consolidated Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are hereby authorized to
execute the attached HOME Investment Partnerships Program Agreement between the City and the
Miami Beach Development Corporation providing Seven Hundred Thirty-Eight Thousand Two
Hundred Forty-Four Dollars ($738,244) for the acquisition and pre-development costs of the
Jefferson Apartments, 542 Jefferson Avenue, a CHDO project to rehabilitate an existing vacant
building to provide 27 rental units for elderly persons meeting the eligibility requirements of the
HOME Program. In the event that the application submitted by MBDC to U.S. HUD for funding
through the Section 202 Program is successful, the funding to be provided from the City's HOME
Program will be reduced to $169,519.
PASSED AND ADOPTED THIS ~ DAY OF November, 1996.
ATTEST:
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CITY CLERK
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
COMMISSION MEMORANDUM NO. ~l, ~ -9~
TO:
Mayor Seymour Gelber and
Memben of the City Commission
DATE: - November 6, 1996
FROM: Jose Garcia-Pedrosa
City Manager
SUBJECT: A RESOLUTION HORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A HOME VESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT BETWEEN THE CITY AND THE MIAMI BEACH
DEVELOPMENT CORPORATION (MBDC), UTILIZING FUNDING FROM
A PREVIOUSLY AUTHORIZED FUND RESERVATION OF $695,194, AND
THE FY 1996-97 COMMUNITY HOUSING DEVELOPMENT
ORGANIZATION (CHDO) 15 PERCENT SET-ASIDE OF $193,050,
APPROVED BY THE MAYOR AND CITY COMMISSION ON JULY 3, 1996.
FUNDING WILL BE UTILIZED FOR A CHDO-ELlGIBLE PROJECT TO BE
DEVELOPED BY MBDC, CONSISTENT WITH THE CITY'S
CONSOLIDATED PLAN, PROVIDING $738,244 FOR THE ACQUISITION
AND PRE-DEVELOPMENT COSTS OF THE JEFFERSON APARTMENTS,
AT 542 JEFFERSON AVENUE, A PROJECT TO REHABILITATE AN
EXISTING VACANT BUILDING TO PROVIDE 27 RENTAL UNITS FOR
ELDERLY PERSONS MEETING THE ELIGIBILITY REQUIREMENTS OF
THE HOME PROGRAM.
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution, authorizing the Mayor and City Clerk to execute a-HOME Program agreement
between the City and the Miami Beach Development Corporation (MBDC). The
Resolution provides for the execution of a HOME Program agreement for $738,244 for the
acquisition and pre-development costs of the Jefferson Apartments at 542 Jefferson
Avenue. The Jefferson is a Community Housing Development Organization (CHDO)
project that will rehabilitate an existing vacant building to provide 27 rental units for elderly
persons meeting the eligibility requirements of the HOME Program. In the event that an
application submitted by MBDC to U.S. HUD for funding through the Section 202 Program
is successful, the funding to be provided for this project from the City's HOME Program will
be reduced to $169,519.
AGENDA ITEM
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1 \ -l. -0, ~
DATE
COMMISSION MEMORANDUM
NOVEMBER 6, 1996
PAGE 2
BACKGROUND:
The HOME Program encourages partnerships between the government and the private
sector, including for-profit and not-for-profit organizations to acquire, construct, rehabilitate
or manage affordable housing. The City is required to allocate a minimum of fifteen
percent (15%) of each fiscal year's annual allocation of HOME funds to designated
Community Housing Development Organizations (CHDOs) to be used for eligible projects
developed, sponsored, or owned by the CHDO. MBDC is the City's designated CHDO.
The Jefferson Apartments is a vacant 3-story Mediterranean Revival Building built in 1924,
located in the Ocean Beach Historic Architectural District. The building currently consists
of 28 one-bedroom units, and has a total of approximately 15,600 square feet. The prior
owners vacated the building, intending to rehabilitate the property with private funds.
Some rehabilitation work was undertaken. Subsequently, the owners offered the property
for sale.
The rehabilitation work undertaken by the prior owner is as follows:
1. all interior demolition
2. all structural repairs
3. rough plumbing
4. rough electrical wiring (1 st and 2nd floor)
5. partial installation of sprinkler system in common areas
6. framing for interior unit partitions
7. rough flooring
8. windows have been purchased but not installed
On July 16, 1996, MBDC entered into a contract for sale and purchase in the amount of
$625,000 for the purchase of the Jefferson Apartment building. On August 27, 1996,
MBDC submitted a request to the City to utilize a portion of the $695,194 HOME fund
reservation for a project site control and seed money loan for the acquisition of the
Jefferson Apartments. The fund reservation agreement allows MBDC to utilize 10% of the
fund reservation, $69,519, for project-specific technical assistance, site control loans and
seed money loans, so that MBDC can secure a site through a refundable deposit,
contingent upon subsequent site approval by the Loan Review Committee and the City
Commission. The City provided $69,519 in HOME funds based on a review of the initial
development budget, development team, unit cost, target group, and location.
MBDC is proposing to rehabilitate the building to provide twenty-seven (27) units of rental
housing, consisting of twenty-three (23) one-bedroom units and four (4) studio apartments.
The units will be rented to elderly persons meeting the income requirements of the HOME
COMMISSION MEMORANDUM
NOVEMBER 6, 1996
PAGE 3
program. The building will be equipped with a full service elevator and resident lounge
and social area. The project is consistent with the City's Consolidated Plan which states
that the elderly are the segment of the population with the greatest need for affordable
rental housing.
MBDC will require a total of $738,244 of City HOME funds for the project and plans to
pursue other public and private funds for the balance of financing needed for the project.
The City's HOME funds would be provided from the balance of the existing fund
reservation in the amount of $545,194, combined with MBDC's 1996/97 CHDO allocation
of $193,050, for a total of $738,244. The maximum amount of HOME funds from all
sources allowed by U.S. HUD for this project is $1,784,359, based on the proposed unit
configuration.
As a funding alternative, MBDC has applied for funding from U.S. HUD under the Section
202 Program to provide housing for the elderly, and in the event the application for funding
through the Section 202 Program is approved, the funds required from the City's HOME
Program will be reduced to $169,519.
On October 18, 1996, the Loan Review Committee reviewed and recommended approval
of MBDC's funding request for the Jefferson project.
MBDC has hired an architectural firm for the project, STA Architectural Group, and
preliminary drawings have been completed. However, the completed drawings and
specifications must be submitted to the City's Planning and Zoning Division and to the
Building Services Division for review and permitting. The project will be required to comply
with all applicable codes and ordinances.
Certain apartment units shown on the preliminary plans are below the minimum unit size
criteria established by the City's Zoning Ordinance. MBDC will be required to comply with
the procedures for non-conforming buildings to obtain appropriate permits and variances,
if required.
The floor grade of the first level of the building is below the base floodplain elevation
required by the Federal Emergency Management Agency (FEMA) of 8 feet above NGVD.
MBDC will be required to comply with the provisions of the City's Flood Plain Management
Ordinance 92-2822 to obtain appropriate permits and variances, if required.
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution authorizing the Mayor and City Clerk to execute a HOME Program agreement
COMMISSION MEMORANDUM
NOVEMBER 6, 1996
PAGE 4
between the City and the Miami Beach Development Corporation. The Resolution
provides for the execution of a HOME Program agreement for $738,244 for the acquisition
and pre-development costs of the Jefferson Apartments at 542 Jefferson Avenue. The
Jefferson is a CHDO project that will rehabilitate an existing vacant building to provide 27
rental units for elderly persons meeting the eligibility requirements of the HOME Program.
In the event that the application submitted by MBDCto U.S. HUD for funding through the
Section 202 Program is successful, the funding to be provided from the City's HOME
Program will be reduced to $169,519.
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PROJECT AGREEMENT
THIS AGREEMENT, entered into thiS~tJ-. day of hot! ,1996 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 the MIAMI BEACH DEVELOPMENT
CORPORATION, a not-for-profit Florida corporation, with offices located at 1205 Drexel Avenue,
Miami Beach, Florida (hereinafter referred to as MBDC).
WITNESSETH:
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued
rules providing for the utilization of Federal funds in the provision of affordable housing for low
income persons under the HOME Investment Partnerships Act (HOME); and
WHEREAS, the City has established a HOME Investment Partnerships Program under the
HUD rules, which provides financial assistance for the purpose of providing affordable housing within
the City; and
WHEREAS, the City has determined the necessity for providing affordable housing in the City
through its Consolidated Plan, which was adopted by Resolution No. 95-21670, on July 26, 1995 and
its One-Year Action Plan for FY 1996/97 Federal Funds adopted by Resolution No. 96-22046 on July
3, 1996; and
WHEREAS, the Mayor and City Commission, by Resolution No. 93-20756, designated MBDC
as a qualified Community Housing Development Organization under the HOME Program; and
WHEREAS, MBDC certifies that it possesses the legal authority to enter into this Agreement,
by way of a resolution, motion, or similar action that has been duly adopted or passed as an official
act of the MBDC governing body, authorizing the execution of this Agreement, including all
understandings and assurances contained herein, and authorizing the person identified as the official
representative of MBDC to act in connection with this Agreement and to provide such additional
information as may be required; and
WHEREAS, it is acknowledged and agreed that funds to be granted to MBDC derive from
Federal funds appropriated to the City by HUD, for the uses and purposes herein referred to and,
accordingly, it is acknowledged and agreed that this Agreement is entered into in compliance by the
parties with all applicable provisions of Federal, State and local laws, statues, rules and regulations;
and
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement the terms listed below shall have the following meanings:
(a) HOME: HOME Investment Partnerships Program, 24 CFR Part 91 and 92, as amended.
(b) HUD: United States Department of Housing and Urban Development.
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(c) CHDO: Community Housing Development Organization as defined in the HOME Investment
Partnerships Program, 24 CFR Part 91 and 92, as amended, and CPO Notice 94-02.
(d) Funds: HOME Program funds.
(e) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Parts 91
and 92, September 16, 1996, and any amendments thereto: Any term defined in the HOME
Investment Partnerships Program rule, not otherwise defined in this Agreement, shall have the
meaning set forth in said rule.
ARTICLE II
ALLOCATION OF HOME FUNDS
The City agrees to allocate HOME funds to MBDC in the amount of Seven Hundred Thirty-
Eight Thousand Two Hundred Forty-Four Dollars ($738,244) (referred to herein as the "HOME
Funds" or the "Funds"). The Funds will be used by MBDC towards the acquisition and rehabilitation
of a twenty-seven unit rental project (the "Project") to be occupied by elderly persons qualified under
the HOME Program as more fully described in the Scope of Services (Exhibit A), and Budget (Exhibit
B), attached hereto. MBDC agrees that it will execute a Restrictive Covenant with the City, that will
detail the restrictions imposed upon MBDC in consideration for the Funds provided for the Project
that will be recorded in the Official Records of Dade County Florida.
ARTICLE III
PROGRAM INCOME
MBDC agrees that any program income generated from the use of HOME funds under this
Agreement, after making all debt repayments to the City (or other lender) if any, is to be used by
MBDC to further other affordable housing activities.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM
MBDC expressly agrees to the following terms and conditions in conformity with 24 CFR
Parts 91 and 92:
(a) Affordability Period. The period of time HOME assisted units must remain affordable
is in accordance with 24 CFR 92.252 or 24 CFR 92.254 as applicable, or the term of a HUD insured
mortgage, whichever period occurs later. The funds, in accordance with the Scope of Services
(Exhibit A) and Budget (Exhibit B), shall be repaid to the City in the event the housing does not meet
the affordability requirements for the specified time period in accordance with 24 CFR Part 92.503(b).
(b) Repayment of Funds; Transfer of Title. The Funds (which definition shall include the
allocation of any additional funds that may be provided by the City in the future as a result of an
amendment or modification of this Agreement) shall be repaid in their entirety if the HOME units do
not meet the affordability requirements for the specified time period, in accordance with the terms
of this Agreement and the Regulations. Any violation of the affordability requirements may, at the
City's option, result in the entire amount of the Funds, as indicated in Article II or as subsequently
amended or modified, to be returned and/or otherwise repaid by MBDC to the City. The City
reserves the right to review the affordability requirements, as set forth herein. Concurrent with its
execution of this Agreement and/or any projects pursuant to this Agreement, MBDC shall execute
a Restrictive Covenant incorporating the terms of this section.
2
(c) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR
92.252.
(d) Rent schedule and utility allowances. In accordance with 24 CFR 92.252(b)(c) and
(d), the City must review and approve rents and the monthly utility allowances proposed by the owner
prior to initial occupancy. MBDC must reexamine and document the income of each tenant living
in the HOME assisted units at least annually. The maximum monthly rent must be recalculated by
MBDC and reviewed and approved by the City annually.
(e) MBDC shall comply with all applicable federal regulations as they may apply to
restrictions and limitations regarding real property under MBDC's control acquired or improved in
whole or in part with HOME funds. The Funds shall be subject to all of the terms and conditions of
the HOME Program, 24 CFR Parts 91 and 92, and any amendments thereto.
(1) Projects must provide safe, sanitary, and decent residential housing for low-income and
very low-income persons (Le., a person whose income is within specific income levels set forth by
u.s. HUD).
(g) Income Targeting. MBDC shall maintain written documentation that conclusively
demonstrates that each project assisted in whole or in part with HOME funds provides benefit to
very-low (families whose annual incomes that do not exceed 50 percent of the median family income
for the area) and low-income (families whose annual incomes do not exceed 80 percent of the
median income for the area) as determined by HUD.
(h) MBDC as the City's designated Community Housing Development Organization, shall
maintain a financial management system that conforms to the financial accountability standards of
24 CFR 84.21, "Standards for Financial Management Systems."
(i) Records: MBDC shall maintain all records sufficient to meet the requirements of 24 CFR
92.508(a)(2) program records, 92.508(a)(3) project records, 92.508(a)(5) other Federal requirements
records, 92.508(a)(6) program administration records. All records required herein shall be retained
and made accessible as provided in 24 CFR 92.508 (c) and (d) and Florida Statutes Chapter 119.
0) Property Standards. For the duration of this Agreement and any amendments hereto,
housing that is assisted with HOME funds, must meet all applicable local codes, rehabilitation
standards, ordinances and zoning ordinances at the time of project completion. An owner of rental
housing assisted with HOME funds must maintain the housing in compliance with all applicable State
and local housing quality standards and code requirements and if there are no such standards or
code requirements, the housing must meet the housing quality standards in 24 CFR 982.401. The
owner of rental housing assisted with HOME funds will maintain the housing in compliance with the
applicable housing quality standards and local housing code requirements for the duration of this
agreement and any amendments hereto. The City shall conduct annual or bi-annual, as required,
on site inspections of rental projects to determine compliance with housing codes.
(k) Maximum and Minimum Amount of HOME Subsidy Per Unit. The minimum amount
of HOME funds that can be invested is $1,000 times the number of HOME assisted units, and the
maximum amount of HOME subsidy is limited to the amounts listed in Exhibit C. The number of
HOME units to be provided for each project or activity are specified in the Scope of Services (Exhibit
A), attached hereto.
3
(I) Environmental Clearance. For each activity or project described in the Scope of
Services (Exhibit A), attached hereto, for which a location has not yet been identified, immediately
after a site is identified by MBDC, MBDC shall obtain the City's written environmental clearance
statement and shall agree in writing to comply with any and all requirements as may be set forth in
the Site Environmental Clearance Statement.
(m) Affirmative Marketing. MBDC agrees to implement the City's adopted affirmative
marketing procedures and requirements for rental and homebuyer projects containing 5 or more
HOME-assisted housing units as set forth in 24 CFR 92.351.
(n) CHDO Capabilities. MBOC, as a CHOO, agrees to either develop, sponsor or own the
HOME assisted project and in any of these capacities it must have effective management control.
(0) Change in Status: MBDC agrees to advise the City in writing within thirty (30) days of
any organizational, operational, or legal status changes made by MBDC that affect documents that
were submitted by MBDC to obtain CHDO status.
(p) Tenant and Participant Protections. MBDC agrees that the lease to be executed with
the tenants of rental housing must be in accordance with 24 CFR 92.253. MBDC agrees to adhere
to and develop a fair lease and grievance procedure which will provide a plan for and follow a
program of tenant participation in management decisions, to be submitted to the City for approval,
no later than 60 days from the date of this Agreement.
(q) Religious organizations. HOME funds may not be provided to primarily religious
organizations, such as churches, for any activity including secular activities. In addition, HOME
funds may not be used to rehabilitate or construct housing owned by primarily religious organizations
or to assist primarily religious organizations in acquiring housing
(r) Affordable housing: homeownership. Housing that is for purchase qualifies as
affordable housing only if the housing has an initial purchase price or, appraised value after
rehabilitation or repair, that does not exceed 95% of the median purchase price for the type of single-
family housing for the City of Miami Beach, currently $112,350, and subject to change as determined
by HUD; is the principal residence of an owner whose family qualifies as low-income at the time of
purchase; is subject to resale restrictions or recapture provisions established by the City for the
required period of affordability.
ARTICLE V
ELIGIBLE COSTS
MBOC agrees that eligible costs for the projects under this Agreement are limited to those
eligible costs as outlined in 24 CFR 92.206 of the HOME Program regulations.
ARTICLE VI
DISBURSEMENT OF FUNDS
(1) MBDC shall be paid for eligible acquisition and pre-development costs, permitted under the
Budget (Exhibit B) based on anticipated or actual costs, with supportive documentation for expenses
that are considered reasonable and necessary and approved by MBDC's authorized representative.
4
(2) Any payment due under the terms of this Agreement may be withheld pending the receipt and
approval by the City of all reports and documents which MBDC is required to submit to the City
pursuant to the terms of this Agreement or any amendments thereto.
(3) No payments will be made without evidence of appropriate insurance required by this
Agreement. Such evidence must be on file with the City.
(4) MBDC understands and agrees that disbursement request of funds under this Agreement
are only to be requested when the funds are needed for payment of eligible costs. The amount of
each request must be limited to the amount needed.
(5) The City desires to enter into this Agreement only if in so doing it can retain the right of
approval over the disbursement of HOME funds for the individual real estate transactions
contemplated herein. MBDC shall be required to submit all necessary documentation relative to the
aforestated transactions to the City's Housing and Community Development Division for review thirty
(30) days prior to the disbursement of HOME funds for the individual transactions.
(6) Cancellations of projects or site transactions with disbursements: If a project or site
transaction is cancelled, whether voluntarily by MBDC or otherwise, an amount equal to the HOME
funds disbursed by the City for the transaction, must be repaid to the City. The City shall be
immediately notified, in writing, of a project or site cancellation and all funds disbursed by the City
shall be repaid to the City within 15 days of the date of project or site cancellation.
ARTICLE VII
SUBCONTRACTS
(a) MBDC agrees to include a statement in all subcontracts that it executes that the
subcontractor shall hold the City harmless against all claims of whatever nature arising out of the
subcontractor's performance of work under this Agreement to the extent allowed by law.
(b) If MBDC subcontracts, a copy of the executed subcontract must be forwarded to the City
within ten (10) days after execution.
ARTICLE VIII
CONDITIONS OF SERVICES
(a) As a condition of these services, MBDC agrees to comply with the regulations of the HOME
Program and any Amendments thereto as stated in 24 CFR Parts 91 and 92.
(b) MBDC agrees to comply with the requirements of Executive Orders 11625 and 12432
concerning Minority Business Enterprise and 12138 Women's Business Enterprise which
encourage the use of minority and women's business enterprises in connection with HOME-funded
activities.
(c) MBDC agrees to abide by and comply with the requirements under Section 1352, Title 31,
U.S. Code regarding Lobbying.
(d) MBDC agrees to abide by and comply with the requirements of 24 CFR Part 24, regarding
debarment and suspension, which in part states that neither it or its principals is presently
debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from
5
participation in this covered transaction in any proposal submitted in connection with the lower tier
transactions.
(e) MBDC must comply with the Displacement, Relocation, and Acquisition requirements 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.
(f) MBDC agrees to abide by and be govemed by the Equal Opportunity and Fair Housing laws:
(1) Equal Opportunity: No person in the United States shall on the grounds of race, color,
national origin, religion, disability or sex be excluded from participation in, be denied the benefits of
or be subjected to discrimination under any program or activity funded in whole or in part with HOME
funds.
(2) Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at 24 CFR Part 100,
Executive Order 11063, as amended by Executive Order 12259 (3 CFR 1958-1963 Comp., P 307)
Equal Opportunity in Housing and Implementing regulations at 24 CFR Part 107 and Title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d) Non Discrimination in Federally Assisted Programs and
implementing regulations issued at 24 CFR Part I;
(3) The prohibition against discrimination on the basis of age under the Age Discrimination
Act of 1975 (42 U.S.C. 6101-07) and implementing regulations of 24 CFR Part 146, and the
prohibitions against disabled individuals under the Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and implementing regulations at 24 CFR Part 8 and Title II of the American with
Disabilities Act, Public Law 101-336;
(4) The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., P339) Equal
Opportunity and the implementing regulations issued at (4 CFR Chapter 60);
(5) The requirements of Section 3 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701 u) the purpose of which is to insure that the employment and other economic
opportunities generated by Federal financial assistance for housing and community development
programs shall, to the greatest extent feasible, be directed toward low- and very-low income
persons, particularly those who are recipients of government assistance for housing.
(g) Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of
the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.) and is, therefore,
subject to 24 CFR 35.
(h) MBDC must comply with the Federal Labor Standards Provisions, as described in HUD
Handbook 1344-1 (Federal Labor Standards Compliance in Housing and Community Development
Programs), as applicable.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be effective upon execution by both parties and shall end at the
conclusion of the period of affordability as specified in 24 CFR 92.252 (affordable rental housing),
or 92.254 (affordable homeownership housing), as applicable.
6
ARTICLE X
TERMINATION
The City and MBDC agree that this Agreement may be terminated in whole or in part, for
cause (as more specifically defined in Article XXVI herein) or for convenience, in accordance with
the provisions of 24 CFR, Part 85.44. A written notification shall be required at least thirty (30) days
prior to the effective date of such termination, and shall include the reason for the termination (if for
cause), the effective date, and in the case of a partial termination, the actual portion to be
terminated. Notwithstanding the language set forth herein, the City's reasons for terminating the
Agreement for convenience, in whole or in part, shall not be arbitrary or capricious.
ARTICLE XI
AMENDMENTS
Any amendments, alterations, variations, modifications or waivers of any provisions to this
Agreement, including an increased allocation of funds, will only be valid when they have been
produced in writing and duly signed the both parties hereto. Any changes which do not substantially
change the Scope of Services or increase the total amount payable under this Agreement, shall be
valid only when reduced to writing and signed by the City Administration and MBDC.
ARTICLE XII
CONFLICT OF INTEREST
(a) MBDC shall comply with the standards contained within 24 CFR Part 92.356(2).
(b) MBDC shall disclose any possible conflicts of interest or apparent improprieties of any party that
is covered by the above standards. MBDC shall make such disclosure in writing to the City
immediately upon MBDC's discovery of such possible conflict. The City will then render an opinion
which shall be binding on all parties.
(c) Related Parties. MBDC 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 subsidiary or affiliate organization, an organization with overlapping boards of directors, and
an organization for which MBDC is responsible for appointing memberships. MBDC shall report this
information to the City upon forming the relationship or, if already formed, shall report it immediately.
Any supplemental information shall be reported to the City required Progress Report.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
MBDC, through an insurance carrier, shall indemnify and hold harmless the City from any and
all claims, liabilities, losses, and causes of action which may arise out of an act, omission,
negligence or misconduct on the part of MBDC or any other person entering upon MBDCs place of
business. MBDC, through its insurance carrier, shall pay all claims and losses of any nature
whatsoever in connection therewith and shall defend all suits in the name of the City, when
applicable, and shall pay all costs and judgements which may issue thereon.
MBDC, through an insurance carrier, shall provide a General Liability Policy with coverage
for Bodily Injury and Property Damage, in the amount of $500,000 per occurrence (the policy must
include coverage for contractual liability to cover the above indemnification); and the City of Miami
7
Beach shall be named as an additional insured followed by the statement: "The coverage is
primary to all other coverage carried by the City covering this specific agreement only."
MBDC shall hold proof of Workers' Compensation Coverage as per statutory limits of the State of
Florida.
Automobile and vehicle coverage shall be required when the use of automobiles and other
vehicles are involved in any way in the performance of the Agreement.
MBDC shall submit to the City an ORIGINAL Certificate of Insurance.
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 become null and
void, and the City shall have no obligation under the terms thereof unless a written extension of this
thirty (30) day requirement is secured from the Risk Manager.
ARTICLE XIV
REPORTS
(1) ProQress Reports. MBDC agrees to submit monthly progress reports to the City, describing
the status of each project and achievement of the project objectives as provided herein and in the
Scope of Services (Exhibit A), attached hereto. The progress reports shall be submitted no later
than 10 days after the end of each month until such time as all funds are expended or, for rental
projects, until the project is fully occupied.
It will be the responsibility of MBDC to notify the City in writing, of any actions, law, or event, that will
impede or hinder the success of the projects and activities as provided in this Agreement. After such
notification the City will take whatever actions it deems appropriate to ensure the success of the
program.
(2) Tenant and Rent Schedule Certification.
a. MBDC shall submit to the City for approval the proposed rents for the HOME units
and, if applicable, the monthly allowances for utilities and services to be paid by the tenant.
b. MBDC shall provide the City with the initial tenant list, and any and all subsequent
updates, amendments and modifications thereto, with documentation for all tenants in the HOME
units confirming family size, income, financial classification, ethnicity, and the amount of the HOME
rent. This report will continue to be required for the full period of affordability hereunder, beginning
on the date of issuance of a Final Certification of Occupancy for the project.
c. Annually, MBDC shall deliver to the City's Housing and Community Development
Division, by November 1 st of each calendar year, its signed report in form and substance acceptable
to the City, to include names of tenants, unit type, family size and income, rents charged, and
occupancy/vacancy factor of each unit for the prior fiscal year (October 1 st through September 30th).
The report will continued to be required for the full period of affordability hereunder beginning on the
date of issuance of a Final Certificate of Occupancy for the project.
8
(3) Other reports as may be required by the City to demonstrate 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
the manner acceptable to the City, the City may withhold further payments until they are completed
or may take any other action as the City may deem appropriate.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City administration and/or the
comptroller of the United States may deem necessary, there shall be made available to the City
administration and/or representatives of the comptroller 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 MBDC do not constitute an allowable expenditure, the City
will have the right to deduct/reduce those amounts from their related invoices. MBDC must maintain
records necessary to document compliance with the provisions of this Agreement.
ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS
MBDC agrees to comply with all applicable Federal regulations as they may apply to program
administration. Additionally, MBDC will comply with all State and local laws and ordinances hereto
applicable.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) It is expressly understood and agreed by the parties hereto that moneys contemplated
by this Agreement, to be used for the compensation, originated from grants under the HOME
Program and is contingent upon approval of activities by the United States Department of Housing
and Urban Development.
(b) Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
(c) 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.
(d) 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.
ARTICLE XVIII
ACCESS TO RECORDS
MBDC, agrees to allow access during normal business hours to all financial records to
authorized Federal, State or City representatives and agrees to provide such assistance as may be
necessary to facilitate financial audit by any of these representatives when deemed necessary to
9
insure compliance with applicable accounting and financial standards. MBDC shall allow access
during normal business hours to all other records, forms, files, and documents which have been
generated in performance of this Agreement, to those personnel as may be designated by the City.
ARTICLE XIX
SEVERABILITY OF PROVISIONS
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.
ARTICLE XX
PROJECT PUBLICITY
MBDC agrees that any news release or other type of publicity pertaining to the project as
stated herein must recognize the City as the recipient funded by the United States Department of
Housing and Urban Development administered by the Economic and Community Development
Division of the Development, Design and Historic Preservation Services Department and the entity
which provided funds for the Project.
ARTICLE XXI
DRUG/ALCOHOL
MBDC agrees to administer in good faith, a policy to ensure that MBDC complies with the
Drug-Free Workplace Act required under 24 CFR Part 24, Subpart F and will establish a policy to
ensure that it's assisted projects are free from illegal use, possession or distribution of drugs or
alcohol by it's beneficiaries.
ARTICLE XXII
NONDELEGABLE
MBDC agrees that the obligations undertaken pursuant to this Agreement shall not be
delegated or assigned to any other person or firm unless the City shall first consent in writing to the
performance or assignment of such service or any part thereof by another person or firm.
ARTICLE XXIII
SUCCESSORS AND ASSIGNS
MBDC agrees that this Agreement shall be binding upon the parties herein, their heirs,
executors, legal representatives, successors, and assigns.
ARTICLE XXIV
INDEPENDENT CONTRACTOR
MBDC and its employees 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
employees; further he/she shall not be deemed entitled to the Florida Workers' Compensation
benefits as an employee of the City.
10
ARTICLE XXV
ASSIGNMENT
This Agreement may not be assigned or transferred by MBDC without the prior written
consent of the City thereto. It shall be deemed a default of this Agreement in the event that MBDC
does not strictly comply with the procedures established herein for obtaining City consent to
assignment or transfer as defined by this Paragraph. In the event such consent is not obtained, in
the manner prescribed herein, the City shall be entitled to declare a default, cancel this Agreement,
and resort to its rights and remedies against the defaulting party. In the event the Provider transfers
an interest of more than one (1 %) percent ownership in its stock by pledge, sale, or otherwise; or
if MBDC makes an assignment for the benefit of its creditors, or uses this Agreement as security or
collateral for any loan; or if the Provider is involved in any bulk transfer of its business or assets, then
in that event each of the foregoing actions shall also be deemed an assignment of this Agreement
and shall require the City's prior written consent. A merger, dissolution, consolidation, conversion,
liquidation or appointment of a receivership for MBDC, shall be deemed an assignment of this
Agreement and will require the prior written consent of the City thereto.
ARTICLE XXVI
EVENTS OF DEFAULT
The City may place MBDC in default of this Agreement and may suspend or terminate this
Agreement in whole or in part for cause, as prescribed in Article X herein. "Cause" shall include the
following:
(a) Failure to comply and/or perform in accordance with any of the terms and conditions
of this Agreement, or any Federal, State or local regulation;
(b) Submitting any required report to the City which is late, incorrect, or incomplete in any
material respect after notice and reasonable opportunity to cure, as set forth in
subparagraph (h) hereof, has been given by the City to MBDC;
(c) Implementation of this Agreement, for any reason is rendered impossible or
infeasible;
(d) Failure to respond in writing within thirty (30) days of notice of same from City to any
concems raised by the City, including providing substantiating documentation when
requested by the City;
(e) Any evidence of fraud, waste or mismanagement as determined by the City's
monitoring of project(s) under this Agreement, or any violation of applicable HUD
rules and regulations;
(f) MBDC's insolvency or bankruptcy;
(g) An assignment or transfer of this Agreement or any interest therein which does not
comply with the procedures set forth in Article XXIX herein;
(h) Failure to comply and/or perform in accordance with the affordability
requirements, and/or an unauthorized transfer of title to it's HOME
Projects.
11
In the event of a default the City may, thirty (30) days after mailing to MBDC a notice of such
default as set forth herein, automatically cancel and terminate this Agreement without liability to any
party to this Agreement. If the default complained of is not fully and satisfactorily cured within thirty
(30) days of MBDCs' receipt of such notice of default to MBDC, at the expiration of said thirty (30)
day period (or such additional period of time (as permitted by the City, in its sole discretion) as
required to cure such default in the event MBDC is diligently pursuing curative efforts) this
Agreement may, at the City's sole option and discretion, be deemed automatically canceled and
terminated, and the City fully discharged from any and all liabilities, duties and terms arising out of,
or accruing by virtue of this Agreement.
ARTICLE XXVII
ADDITIONAL REMEDIES
In the event of a default, the City shall additionally be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest, in 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 attomey'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 XXVIII
MAINTENANCE AND RETENTION OF RECORDS
MBDC agrees that it will maintain all records required pursuant to 24 CFR Part 92, in an
orderly fashion in a readily accessible, permanent and secured location, and that it will prepare and
submit all reports necessary to assist the City in meeting record keeping and reporting requirements
thereunder.
(1) Records shall be maintained for a period of four (4) years after the closeout of funds under
this Agreement except as provided herein (2), (3) and (4).
(2) 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 paragraph (1), whichever
is later;
(3) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must be
retained for three years AFTER the required period of affordability;
(4) Records covering displacements and acquisition must be retained for at least three 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 92.353.
ARTICLE XXIX
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can place a limit on
12
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 $738,244.
MBDC hereby expresses its willingness to enter into this Agreement with MBDCs recovery from the
City for any damage action for breach of contract to be limited to a maximum amount of $738,244.
Accordingly, and notwithstanding any other term or condition of this Agreement, MBDC hereby
agrees that the City shall not be liable to MBDC for damages in an amount in excess of $738,244,
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 XXX
This Agreement shall be enforceable in Dade County, Florida, and if legal action is necessary
by either party with respect to the enforcement of any terms and conditions herein, exclusive venue
for the enforcement of same shall lie in Dade County, Florida.
ARTICLE XXXI
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies contemplated by this
Agreement to be used for the compensation, originated from grants of federal HOME Investment
Partnerships Program funds, and must be implemented with all of the applicable rules and regulation
of the U.S. Department of Housing and Urban Development. It is expressly understood and agreed
that in the event of curtailment or non-production of said federal grant funds, that the financial
sources necessary to continue to pay the Provider compensation will not be available and that this
Agreement will thereby terminate effective as of the time it is determined that said funds are no
longer available. In the event of such determination, MBDC agrees that it will not look to, nor seek
to hold liable, the City or any individual member of the City Commission thereof, personally for the
performance of this Agreement and all parties hereto shall be released from further liability each to
the other under the terms of this Agreement.
ARTICLE XXXII
ACCESSIBILITY LAWS COMPLIANCE
MBDC agrees to adhere to and be governed by all applicable requirements of the laws listed
below including, but not limited to, those provisions pertaining to employment, provision of programs
and services, transportation, communications, access to facilities, renovations, and new
construction:
The Americans with Disabilities Act of 1990 (ADA): Pub. L. 101-336, 104 Stat 327, 42 U.S.C.
12101-12213 and 547 U.S.C. Sections 225 and 611 including Title I, Employment; Title II,
Public Services; Title III, Public Accommodations and Services Operated by Private Entities;
Title IV, Telecommunications; and Title V, Miscellaneous Provisions.
The Rehabilitation Act of 1973: 29 U.S.C. Section 794.
The Federal Transit Act, as amended: 49 U.S.C. Section 1612.
13
The Fair Housing Act as amended: 42 U.S.C. Section 3601-3631.
MBDC must complete and submit the City's Disability Non-Discrimination Affidavit (Affidavit),
a copy of which is attached hereto and incorporated herein as Exhibit D. In the event MBDC
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 MBDC under the Agreement until
compliance and/or cancellation, termination or suspension of the Agreement in whole or in
part. In the event the City cancels or terminates the Agreement pursuant to this Article,
MBDC shall not be relieved of liability to the City for damages sustained by the City by virtue
of MBDC's breach of the Agreement.
ARTICLE XXXIII
NOTICES
All notices shall be sent to the parties at the following addresses, with copies to the
Office of the City Attorney:
City:
Harry S. Mavrogenes
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
with copies to:
Murray H. Dubbin, City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
MBDC:
Denis Russ, President
Miami Beach Development Corporation
1205 Drexel Avenue
Miami Beach, FL 33139
The above parties may change such addresses at any time upon giving the other party
written notification. All notices under this Agreement must be in writing and shall be deemed to be
served when delivered to the address of the addressee. All notices served by mail shall be
registered mail, return-receipt requested.
14
IN WITNESS WHEREOF, MBDC has caused this Agreement to be executed by its duly
authorized official(s), and the City has caused this Agreement to be executed by its duly authorized
officer(s), the day and year first above written.
~ J;}~4.A--
Secr ary L
MIAMI BEACH DEVEL
A FLORIDA NOT-F
ATTEST
CITY OF MIAMI BEACH
R6lML~ ~t<A-~
City Clerk
F:BSIMBDC\JEFFERSN.AGR
I U;U\,l J\?FRui.//::.u
lEGAl__W;~
By 11( ~
r..~," -1OI3l-f%.
15
EXHIBIT A
SCOPE OF SERVICES
THE JEFFERSON APARTMENTS
542 Jefferson Avenue, Miami Beach, Florida 33139
The Jefferson Apartments located at 542 Jefferson Avenue, Miami Beach, is a vacant
three story Mediterranean Revival Building build in 1924, located in the Historic
Architectural District. The building will be acquired and rehabilitated into a total of twenty-
seven (27) HOME-assisted units, twenty-three (23) one bedroom units and four (4)
efficiency units. The units will be rented to elderly persons that meet the income
requirements of the HOME Program throughout the period of affordability. The building
will be equipped with a full service elevator and resident lounge and social area which will
be accessible to all residents.
MBDC agrees to start construction of the Project within twelve months of the execution
date of this Agreement.
LEGAL DESCRIPTION OF PROPERTY
Lot 3 Block 84 of Ocean Beach Addition No 3, as recorded in Plat Book 2, Page 81
of the Public Records of Dade County Florida
16
EXHIBIT B
BUDGET
(attached proforma dated October 30, 1996)
17
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PARTICIPATING
JURISDICTION
MIAMI BEACH
EXHIBIT C
HOME PROGRAM
MAXIMUM PER-UNIT SUBSIDY LIMITS
REGION 04 FIELD OFFICE: 29 JACKSONVillE, Fl
STATE EFFICIENCY* 1BR
ABBREV
2BR
3BR
FL $58,764 $67,361
$81,911
$105,964
* Q-bedroom includes efficiency units and single room occupancy (SRO) units
Effective April 1995
18
4BR
$116,316
EXHIBIT D
DISABILITY DISCRIMINATION AFFIDAVIT
19
DISABILITY NONDISCRIMINATION AFFIDAVIT
CONTRACT REFERENCE 77--u:..... /J';'CLc!F:>CI1 aLJeLI-!n7cid:s
,
NA1vfE OF FIRM, CORPORATION, OR ORGANIZA TrON /77;J uc-
AUTHORlZED AGENT CO~{PLETrNG AFFIDA V1T: 1)[/1.//5 /1-. A~.( $.s
POSITION ;)?.z:..s/ f~NI PHONE NU1vfBER (:?0) 6-38 -DO /~
r,lJcM'_S A. 4{{ s S , being duly first swom state:
That the above named firm, corporation or organization is in compliance with and agrees to continue to
comply with, and assure that any subcontractor, or third party contractor under this project complies with
all applicable requirements of the laws listed below including, but not limited to, those provisions
pertaining to employment, provision of programs and services, transportation, communications, access to
facilities, renovations, and new construction.
The Americans with Disabilities Act of 1990 (ADA): Pub. L 101-336, 104 Stat 327, 42 U.s.e. 12101-
] 22] 3 and 47 U.s.e. Sections 225 and 611 including Title I, Employment; Title II, Public Services; Titic
III, Public Accommodations and Services Operated by Private Entities; Title IV, Telecommunications; and
Title V, Miscellaneous Provisions.
The Rehabilitation Act of 1973: 29 USC. Section 794.
The Federal Transit Act, as amended: 49 U.S.e. Section 1612.
The Fair Housing Act as amended: 42 U.S'e. Section 3601-3631.
SUBSCRIBED AND SWORN TO (or alfumed) before me on
:Jl A ~ (Date)
/ E N IS . us S .~She is p.=rsonallv known to me Q( has
(Affiant)
by
as identification.
prcxnted
(Type of idcnlification)
~~~
(Signature of Notary)
~ C {l L/- +0g5~
(Serial Number)
JUDITH MARSHAlL
MY COMMISSION II CC 446852
IU{)ITH M/tR5HA--LL L/-~g-9'1
(P rin' 01 S,." P N ""e of N?'~) , , (E'p;,,';on 0''')
Notary Public ~ ~J-~ (Slate) NotaJySeal
The City of Miami Beach will not award a ronlract to any finn, rorporalion or orgaruzJ!ion tha! fails to complete and submit this
A11idavit with the finn, corporJlion or organization's bid or propos.:!! or fails to ha\'c this A11idavit on file with the City of Mi.JJ111
Beach.