96-21896 RESO
RESOLUTION NUMBER
96-21896
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED MUL TI-
FAMILY HOUSING REHABILITATION PROGRAM MATCHING
GRANT AGREEMENT WITH L.V.S. INVESTMENTS INC., TO
PROVIDE ASSISTANCE IN THE AMOUNT OF $159,865 UNDER
THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDED MULTI-FAMILY HOUSING REHABILITATION
PROGRAM, FOR THE PROPERTY LOCATED AT 1946-1956
MARSEILLES DRIVE.
WHEREAS, the City of Miami Beach has established a program to encourage the
rehabilitation of existing substandard multi-family buildings using funds supplied through the U.S.
Department of Housing and Urban Development (HUD); and
WHEREAS, on September 27, 1995, the Mayor and City Commission approved and adopted
revised guidelines for providing assistance to property owners under the programs sponsored by
HUD; and
WHEREAS, the Multi-Family Housing Rehabilitation Program is administered by the City's
Housing and Community Development Division; and
WHEREAS, the City has received an application from L.V. S. Investments Inc., (L.V.s.)
under the Guidelines for funding of the rehabilitation of two (2) existing buildings located at 1946 and
1956 Marseilles Drive; and
WHEREAS, L.V.S. Investments Inc. has agreed to offer a minimum of 9 of the 16 residential
units at reduced rental rates for a minimum of three (3) years as affordable rental housing; and
WHEREAS, the City's Loan Review Committee, at its January 19, 1996 meeting, reviewed
the application for assistance and recommended its approval by the Mayor and City Commission
contingent upon certain items; and
WHEREAS, the Administration requests that the attached Matching Grant Agreement be
approved by the Mayor and City Commission and executed by the Mayor and City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA THAT:
Section 1.
The Mayor and City Commission hereby approve the attached Multi-Family
Housing Rehabilitation Matching Grant Agreement, with L.V.S. Investments
Inc., to provide Community Development Block Grant (CDBG) funds in the
amount of $159,865 for the property located at 1946-1956 Marseilles Drive.
Section 2.
The Mayor and City Commission hereby authorize the Mayor and City Clerk
to execute the attached Multi-Family Housing Rehabilitation Program
Matching Grant Agreement.
Section 3.
The aforestated approval and execution of Agreement shall be contingent
upon the following: L.V.S. closing the purchase of the property and obtaining
fee-simple title, L.V.S. complying with the requirements of the Uniform
Relocation Act (URA) as it applies to the proposed project, and L.V.S.
entering into an Agreement with the City outlining the terms and conditions
for the provision of funds in accordance with the requirements of the
program, as well as complying with the requirements of all City rules and
ordinances.
PASSED AND ADOPTED THIS 20th
Februar
ATTEST:
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CITY CLERK
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cH\\\RESO\ 1946MARS,RES
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: February 20, 1996
FROM:
Jose Garcia-Pedrosa V
City Manager {II!
A RESOLUTION AUTHORIZING THE MA VOR AND CITY CLERK TO
EXECUTE A CDBG-FUNDED MUL TI-FAMIL V HOUSING
REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH
L.V.S.INVESTMENTS, INC. FOR THE PROJECT LOCATED AT 1946-1956
MARSEILLES DRIVE, IN THE AMOUNT OF $159,865; AND, FURTHER
PROVIDING THAT APPROVAL AND EXECUTION OF THE AGREEMENT
BE SUBJECT TO CERTAIN CONTINGENCIES DESCRIBED IN THE
RESOLUTION.
SUBJECT:
ADMINISTRATION RECOMMENDATION:
If the Mayor and City Commission concur with the Loan Review Committee's (LRC's)
recommendation for approval, adopt the attached Resolution authorizing the execution of
a CDBG-funded Multi-Family Housing Rehabilitation Program Matching Grant Agreement
with L.V.S. Investments, Inc., for a 16 unit project located at 1946 - 1956 Marseilles Drive
in the amount of $159,865.
BACKGROUND:
The City, through the Housing and Community Development Division of DDHPS, has
administered the Multi-Family Housing Rehabilitation Program for the past fourteen (14)
years, resulting in the successful renovation of over 1,100 units of rental housing. On
September 27, 1995, the Mayor and City Commission adopted revised Guidelines
governing the program, requiring that the buildings rehabilitated under this program be
maintained in affordable rental use for three (3) years. The City's Agreement with the
property owner includes stipulations requiring repayment to the City if the owner fails to
perform under the terms of the Agreement.
On January 19, 1996, the City's Loan Review Committee (LRC) approved an application
submitted by L.V.S. Investments Inc., (L.V.S.) for federal Community Development Block
Grant (CDBG) funding in the amount of $159,865 for the rehabilitation of 16 units located
at 1946 - 1956 Marseilles Drive. This is the second property in the north end of the City
AGENDAITEM~
DATE '2 -~O-'1"
COMMISSION MEMO
FEBRUARY 20, 1996
PAGE 2
that has qualified for a Matching Grant under the recently revised Multi-Family Housing
Rehabilitation Program Guidelines.
1946-1956 MARSEILLES DRIVE: $159,865 Grant Requested
The property to be rehabilitated consists of two buildings constructed in 1950, each
containing eight (8) one-bedroom units, with a combined total of 11,020 square feet of
enclosed space. The architecture of the original structure is Post War Modem. The design
of the building is not considered architecturally significant. The site consists of two lots
totaling 12,187 square feet.
The proposed improvements call for a substantial rehabilitation of both buildings. The
scope of work includes:
Remove and replace the existing flat roof. Replace the existing wall-mounted air
conditioners with independent central units. Install new electric service in each
apartment. Replace all water lines and plumbing fixtures, re-tile bathrooms.
Provide new kitchen cabinets and appliances. Paint entire interior and exterior.
The total estimated rehabilitation budget, including labor, material, contingency,
architectural and related fees, is $319,730. Under the City's Matching Grant Program,
$159,865 will be funded using the owner's funds, and $159,865 is proposed to be funded
through the COSG Multi-Family Housing Rehabilitation Program.
Nine (9) of the sixteen (16) apartments (56%) will be rented to income-eligible tenants at
HUO-approved rents for the required three (3) year period. Currently the HUO-approved
rents are: $575 for a one-bedroom unit, excluding any utility allowance. The remaining
seven (7) units will be leased at market rents.
This project qualifies for a maximum of $160,000 as a matching grant, based on $10,000
per unit for 16 units. The applicant requested $159,865 in hard construction costs from
COSG funds, in the form of a matching grant.
A review of City records indicates that there are City code violations which have been cited
and a number of maintenance problems, which the prospective new owner plans to repair
as part of the rehabilitation. There are no unpaid water or sanitation bills, and property
taxes are paid through 1995. Dade County's assessed value in 1995 was $186,740 for
the buildings, and $121,650 for the land, totaling $308,390.
COMMISSION MEMO
FEBRUARY 20,1996
PAGE 3
TEMPORARY DISPLACEMENT I RELOCATION PLAN:
Six (6) of the apartments are currently occupied by existing tenants. Prior to beginning
any work, City staff members will interview the six tenants, to ascertain their level of
eligibility for relocation assistance. The Relocation Plan calls for temporarily moving all the
tenants to one of the two buildings, while the other is being rehabilitated. Upon completion,
these tenants will be relocated to the rehabilitated building, while work proceeds on the
remaining building (called "checker-boarding"). In accordance with the Uniform Relocation
Act of 1970 (URA), all tenants will be reimbursed for all eligible moving and out-of-pocket
expenses. City staff will monitor the process to assure that every effort will be made to
minimize hardship to the tenants. The costs of the tenant relocation will be equally shared
by the City and by the Owner.
The project will not result in the permanent displacement of any tenant. After rehabilitation,
all tenants will receive their original unit, or a comparable unit in the project, at no increase
in rent. The owner will be required to issue 12 month leases to all tenants.
OWNER'S PRIOR EXPERIENCE:
At the City Commission meeting of December 20, 1995, a request was made by
Commission that future applications for the Multi-Family Housing Rehabilitation Program
include information on the background and experience of the applicant. Based on this
direction, the Housing and Community Development Director requested that the applicant
provide supplemental information concerning real estate owned and managed by L.V.S.
Investments, Inc., as well as previous rehabilitation experience of Mr. Swezy.
Mr. Lewis V. Swezy, 100 S.E. 2nd Street, Miami, is President of L.V.S. Investments Inc.,
which now holds a contract to purchase the subject property. The property will be acquired
under a conditional purchase contract at a price of $400,000. The closing of the purchase
is tentatively scheduled for February 15, 1996, pending resolution of title issues and
arranging of financing for the purchase.
Applicant is a registered Real Estate Agent, who owns all or part of over 29 buildings and
parcels of land, at various locations throughout Dade and Broward Counties. Mr. Swezy,
through his construction and management companies participated in the development,
construction and management of five (5) low-income tax credit projects, containing 288
units, occupied by low income tenants with project-based Section 8 rent assistance; four
(4) of these properties are in Dade and one (1) in Broward County.
An inquiry to the Miami Beach Housing Authority confirmed that Swezy-owned companies
own two (2) Project-based Section 8 properties in Miami Beach, an 11-unit building located
COMMISSION MEMO
FEBRUARY 20, 1996
PAGE 4
at 1220 Pennsylvania Avenue, and 1930 - 1940 Marseilles Drive containing 18 units. The
maintenance history of both these properties is reported as satisfactory by the Housing
Authority's Section 8 Code Compliance Officer. The property at 1930 - 1940 Marseilles
Drive is adjacent to the subject property.
Mr. Swezy has advised the Administration that he does not intend to seek Section 8
assistance for the 1946-56 Marseilles Drive property. In accordance with the Affirmative
Marketing requirements of the Matching Grant Agreement, income-eligible Miami Beach
residents will be targeted for Nine (9) units, and the remaining seven (7) units will be leased
at market rents.
An unaudited personal financial statement submitted by Mr. Swezy shows a personal net
worth of $9.48 Million, and indicates that the Owner has sufficient available cash reserves
to complete the rehabilitation project and match the City's contribution. L.V.S. has
indicated that after the completion of the rehabilitation, they intend to place a mortgage on
the building in the amount of $400,000.
LRC'S RECOMMENDATION:
On January 19, 1996, the Loan Review Committee reviewed this proposal and
unanimously recommended approval, contingent on: a.) L.V.S.'s closing the purchase of
the property and obtaining fee-simple title, b.) compliance with the provisions of the
U.R.A. as it applies to this property with regard to the existing tenants, and c.) upon
approval by the Mayor and City Commission, that L.V.S. enter a Matching Grant
Agreement with the City, agreeing to abide by the rules of the program.
The following LRC members voted favorably for approval of the application: Chairperson
Anita Bernstein of Sun Trust N.A., James Gleason of Jefferson National Bank, Cheryl
Martin of Barnett Bank, Harry Pellish of Capital Bank, and Robert Nachlinger, City Finance
Director. The Middle Beach representative, Sidney Weisburd, was absent due to a
conflict created by his responsibilities as President of the Stanley C. Myers Community
Health Center. The North Beach Representative position was vacated by the transfer of
Michael Rotbart to the Community Development Advisory Committee (CDAC) at the
January 10th City Commission Meeting. The South Beach Representative is still pending
a recommendation from the Miami Beach Development Corporation (MBDC).
During the LRC's discussion, the Executive Director of the North Beach Development
Corporation expressed concern that the City's approval of the proposed rehabilitation
project at 1946 - 1956 Marseilles Drive combined with the current Section 8 project-based
units existing at 1930 -1940 Marseilles Drive, could create a situation which would result
COMMISSION MEMO
FEBRUARY 20, 1996
PAGE 5
in an excessive neighborhood impact. At the request of the H&CD Director, a meeting
was held on January 26th, which included: Mrs. Singer, Mr. Swezy, Mr. Jonathan Beloff
and Mr. Tom Calderon, Executive Director of the Miami Beach Housing Authority. The
meeting addressed all the concerns raised.
Additionally, during that same meeting Mr. Calderon confirmed that a landlord has the right
to conduct background investigations and check prior references of prospective tenants,
and that this will help reduce the problems of tenant misbehavior and vandalism. The
Owner advised the group that his tenant selection procedures are quite rigorous, including
conducting credit checks, police background checks, contacting previous landlords, and
physically inspecting the tenant's current apartment, prior to accepting a new tenant.
CONCLUSION:
If the Mayor and City Commission concur with the Loan Review Committee's (LRC's)
recommendation for approval, adopt the attached Resolution authorizing the execution of
a CDBG-funded Multi-Family Housing Rehabilitation Program Matching Grant Agreement
with L.V.S. Investments, Inc., for a project located at 1946 - 1956 Marseilles Drive, in the
amount of $159,865, subject to L.V.S. Investments Inc. closing the purchase of the
property and obtaining fee-simple title, their compliance with the provisions of the Uniform
Relocation Act of 1970 (URA) as it applies to this property with regard to the existing
tenants, and that L.V.S. enter a Matching Grant Agreement with the City, agreeing to abide
by the rules of the program.
J G-P/HSM/STP/CAH
Attachments
CH\\RESO\ 1946MARS,MEM
MULTI-FAMILY HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT
THIS AGREEMENT entered into this 19th day of April, 1996, by and between:
L.V.S. INVESTMENTS, INC., a Florida corporation, whose address is 100 S.E. 2nd Street, Suite 3930, Miami,
Florida, 33131, hereinafter referred to as "Owner" who is the legal owner of the property at 1946-1956
Marseilles Drive, Miami Beach, Florida, more particularly described as:
Lot 6 and 7, Block 35 of Section 3 of Isle of Normandy Miami View, according to the Plat
thereof as recorded in Plat Book 40, Page 33, of the Public Records of Dade County, Florida,
hereinafter referred to as "Project",
and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention
Center Drive, Miami Beach, Florida, hereinafter called "City":
WITNESSETH:
WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter
referred to as "Program", designed to provide financial and technical assistance to property owners of
deteriorated and substandard multi-family residential structures within the City of Miami Beach, Florida, for
the purpose of rehabilitating said structures; and
WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing
Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on September 27, 1995,
which are deemed incorporated by reference and made a part of this Agreement; and
WHEREAS, Owner is the legal owner of the Project described above has agreed to rehabilitate said
Project in accordance with the Program; and
WHEREAS, the City's Loan Review Committee on January 19,1996 recommended approval of the
assistance to the Project under the Program, and a commitment letter will be issued upon approval by the
Mayor and City Commission, said commitment letter, when issued, will be incorporated by reference and
made a part of this Agreement; and
WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided
hereunder derive from Federal Community Development Block Grant funds appropriated to the City by the
U.S. Department of Housing and Urban Development, for the uses and purposes herein referred to and
accordingly it is acknowledged and agreed this Agreement is entered into after compliance by the parties with
all applicable provisions of Federal, State and local laws, statutes, rules and regulations as they may apply
to this Agreement which certain of said regulations are incorporated herein as more fully set forth in
Attachment "A".
NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration
of the matching grant monies which are to be paid by City to Owner, which consideration is hereby
acknowledged by the parties, the parties do agree as follows:
(1) Any amendments, alterations, or variations to this Agreement will only be valid when they
have been reduced to writing and duly signed by the parties.
(2) It is understood and agreed by and between the parties that the Guidelines, as they may be
amended from time to time, represent the scope of services and responsibilities of the parties
under the Program and the parties agree to abide by and comply with their roles and
responsibilities under the Guidelines as set forth therein,
(3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of
the Program and contract documents.
(4) Rehabilitation of Project shall be done in accordance with the applicable codes, ordinances
and statutes of the State of Florida, the City and Metropolitan Dade County.
(5) It is understood and agreed by and between the parties that none of the obligations of the
City assumed or created hereunder shall be general obligations of the City and none of the
same shall be enforceable against the City generally. Any and all obligations, liabilities and
commitments of the City hereunder, shall be limited to the payment of a matching grant
subsidy amount of One Hundred Fifty-Nine Thousand Eight Hundred Sixty-Five Dollars
($159,865) specified herein. No other fiscal, legal, equitable or contractual duty or obligation
is assumed by the City, and the Owner by executing this Agreement so agrees.
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
$159,865. Owner hereby expresses its willingness to enter into this Agreement with Owner's
recovery from the City for any damage action for breach of contract to be limited to a
maximum amount of $159,865, less the amount of all funds actually paid by the City to
Owner pursuant to this agreement.
Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in
an amount in excess of $159,865 which amount shall be reduced by the amount of the
funding actually paid by the City to Owner pursuant to this agreement, 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 subparagraph or
elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed on
the City's liability as set forth in Florida Statutes, Section 768.28.
(6) The matching grant amount shall be paid to the Owner and shall be disbursed during the
rehabilitation of the property. After this matching grant payment is made by the City to the
Owner and applied by the Owner according to the procedures set forth herein, the City shall
be automatically discharged from any and all obligations, liabilities and commitments
hereunder to Owner or any third person or entity provided, however, that this Section shall
not excuse the continued compliance by Owner with the terms of this Agreement and the
federal program requirements. Owner, for consideration of One Dollar ($1.00) and other
good, valuable, separate and distinct consideration, receipt of which is hereby acknowledged,
hereby saves and holds harmless, indemnifies and protects the City, its officers and
employees from any and all obligations, liabilities, commitments, actions, claims, causes of
action, suits or demand arising or accruing by virtue of this Agreement or the Project
contemplated hereunder.
(7) In consideration for the performance of Owner of its role and responsibilities set forth in this
Agreement, the City agrees to pay to Owner, the sum of One Hundred Fifty-Nine Thousand
Eight Hundred Sixty-Five Dollars ($159,865), as the total of the matching grant as further
provided for herein.
(8) Said total shall be disbursed by the City to the Owner during construction as follows: During
the construction phase, and not more often than once a month, a payment may be requested
2
equivalent to ninety percent (90%) of the pro-rata portion of the value of the work completed,
in the previous period. The City's payments hereunder will be computed based on the ratio
of the matching grant amount to the total estimated construction cost. The completion will
be based on the City's inspection and confirmation of the percentage completion as certified
by the Owner's Inspector. In the event the actual cost is less than the estimate, the amount
of the City's Matching Grant will be reduced proportionately, so that the City's portion of the
total cost is never higher than 50% of the total cost. The final ten percent (10%) of the
matching grant payment shall be paid following the completion, approval and acceptance of
the rehabilitation work and related documentation by all the governmental agencies and
authorities having jurisdiction over the Project, and as further set forth in the Guidelines.
(9) It is understood and agreed by Owner that for at least three (3) years beginning on the date
when a final Certificate of Completion is issued, a minimum of nine (9) apartment units (56%)
will be occupied by low and moderate income households at affordable rents. Low and
moderate income households means the combined income of all members of the household
does not exceed 80% of the Area Median Income, as published from time-to-time by HUD.
(The following limits apply as of this date, but may be revised annually) 1 person, $25,000;
2 persons, $28,550; 3 persons, $32,100, 4 persons, $35,700) Monthly rents for units
occupied by low and moderate income households are considered affordable, if they do not
exceed the Fair Market Rent (FMR) published from time-to-time by HUD, (as of this date, but
subject to revision annually: the rent for a one bedroom apartment is $613, including a utility
allowance of $38 per month, for a net of $575 per month excluding utilities). Additionally, it
is understood by Owner that if the property is converted to condominiums, sold, or withdrawn
from rental use within three (3) years after a Final Certificate of Completion is issued, the full
amount of the matching grant payment will become due and payable to the City. The City
may, at its option, declare the matching grant payment to be a loan, which repayment terms
and conditions will be set by the Loan Review Committee.
(10) Owner shall deliver to the City's Housing and Community Development Office, by January
31 st of each calendar year, its signed notarized report in form and substance acceptable to
the City, to include names of tenants, unit type, family income, rents charged, and occupancy
factor of each unit for the prior year. This report will continue to be required for three (3)
years after the date on which a Final Certificate of Completion is issued.
(11) It shall be deemed a default of this Agreement in the event that Owner does not strictly
comply with the terms, conditions, duties and procedures established herein for obtaining City
consent to assignment or transfer as defined by this Section. 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. Owner shall
not assign any interest of this Agreement and will not transfer any interest in the same
without the prior written consent of the City upon approval by the Loan Review Committee.
In the event Owner is a corporation, limited partnership or other incorporated or artificial
business entity, a transfer of more than ten percent (10%) ownership interest of its stock by
pledge, sale or otherwise (except a transfer of partnership interests in connection with the
syndication of limited partner interests in the ownership, which shall not require any consent
hereunder); or if Owner makes an assignment for the benefit of its' creditors or uses this
Agreement as security or collateral for any loan besides the any loan involved herein; or if
Owner is voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if
Owner has a receiver appointed over any of its properties; or if Owner does not satisfy in full
or appeal any judgment for the sum of $5,000 (or more) within thirty (30) days from its'
rendition; or if Owner is involved in a bulk transfer of its business, then, in that event each of
the foregoing actions will be deemed an assignment of this Agreement and require the prior
written consent of the City, upon approval by the Loan Review Committee.
3
In the event Owner is a trust, which includes, without limitation, a land trust and a trust
company, any change in the person or entity who is the trustee or any change in the heirs or
beneficiaries of such trust shall be deemed an assignment under this Section and require the
prior written consent of the City, upon approval by the Loan Review Committee. Regardless
of the type of entity Owner is defined to be, a merger, insolvency, bankruptcy, dissolution,
consolidation, conversion, liquidation, or appointment of a receivership for such Owner shall
each be deemed an assignment of this Agreement and will require the prior written consent
of the City upon approval by the Loan Review Committee.
(12) Upon a default of a written indebtedness, including without limitation: a note, mortgage,
guarantee, and the Agreement, Owner waives notice, presentment and/or demand of default.
(13) For purposes of this Agreement and the documents referenced or incorporated within it, a
default shall include without limitation, the following acts or events of Owner, or its agents,
servants, employees, or contractors:
(a) Owner's failure to (i) commence work within thirty (30) days from the date of this
Agreement, or (ii) diligently pursue construction and timely complete the project by
securing a Final Certificate of Completion within nine (9) months from the date of this
Agreement, or (iii) provide the documentation required to make the final payment of
the matching grant, as indicated in the Guidelines, within thirty (30) days from the
date when a Final Certificate of Completion is issued.
Work shall be considered to have commenced and be in active progress when, in
the opinion of the City's Housing and Community Development Office, a full
complement of workmen and equipment is present at the site to diligently
incorporate materials and equipment into the structure throughout the day on each
full working day, weather permitting.
(b) Owner's failure to comply with applicable building, fire, life safety, housing and
zoning laws, rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other
loan document executed by Owner in favor of Lender.
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or Lender.
(f) Owner's failure to correct defects within a reasonable time as defined herein.
(g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines
or applicable laws, rules and regulations pertaining hereto which are referenced by
this Agreement.
(h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within
60 days from the date of filing of any such lien.
(i) An assignment or transfer of this Agreement or any interest therein by Owner which
does not comply with the procedures set forth herein,
(14) In the event of a default, the City may, thirty (30) days after mailing to Owner 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 is not fully and satisfactorily cured within thirty
4
(30) days of the City mailing notice of such default to Owner, to the full satisfaction of the
City, at the expiration of said thirty (30) day period, 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 and the Project.
(15) 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 a reasonable attorney's fee, 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 to the extent allowed by law.
(16) Notices and demands: All notices, demands, correspondence and communications between
the City and the Owner shall be deemed sufficiently given under the terms of this Agreement
if dispatched by registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with copies to:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: (1) City Attorney's Office
and: (2) Housing and Community Development Director
If to the Owner:
L.V.S. Investments Inc.
100 S.E. 2nd Street, Suite 3930
Miami, Florida 33131
Attention: Lewis V. Swezy, President
or to such address and to the attention of such other person as the City or the Owner may
from time to time designate by written notice to the others.
(17) It is understood and agreed that the City shall record this Agreement, together with
appropriate documents relating to any Loan on the subject property, with the Clerk of the
County Court, Dade County, Florida and shall furnish the Owner with conformed copies of
these recorded instruments within sixty (60) days of the execution of this Agreement.
(18) Owner acknowledges its responsibility to assure the existing tenants that their quiet use of
their existing dwelling shall not be unduly disturbed by the construction process, until an
alternative apartment shall have been rehabilitated, at that time, Owner will arrange to move
the tenant's household effects to the rehabilitated apartment at no expense to the tenant.
Owner shall bear all costs of disconnecting and reconnecting utility services for the tenants.
In the event that the construction activities interfere with tenants quiet use of the dwelling,
tenants are to be relocated to a temporary facility at Owner's expense, until the existing
dwelling is again useable. Upon completion of the rehabilitation of the project, Owner agrees
to offer the existing tenants a written lease at the same rental rate as that in effect at the date
of approval of the project by the City, for a period of 12 months. Subsequent rent increases
5
to the existing tenants shall be moderate, and shall be based on a pro-rata portion of actual
increases in expenses, however, any proposed rent increase shall be reviewed and approved
by the City's Housing and Community Development Office prior to implementation, In any
case, the maximum rent a tenant may pay shall be no greater than (1) The rent in effect at
the time of submission of the proposed application for rehabilitation assistance, or (2) The
rental rates set forth in Paragraph 9 hereof, or (3) 30% of the tenant's total family income,
whichever is less,
(19) The Owner agrees to undertake an affirmative marketing program in accordance with 24
CFR Part 570.601-2, At a minimum, the Owner must implement an affirmative marketing
program that provides information to, and otherwise attracts, eligible persons from 211 racial,
ethnic, and gender groups in the housing market area to the available housing receiving
assistance from CDBG funds.
The affirmative marketing requirements and procedures adopted by the Provider shall
include, but not necessarily be limited to, the following:
a. Methods for informing the public, owners and potential tenants about
Federal Fair Housing Laws and the applicable affirmative marketing policy;
b. Requirements and practices for carrying out the City's affirmative marketing
plan;
c. Procedures to be used to inform and solicit applications from persons in the
housing market area who are not likely to apply for the housing without
special outreach (e.g., use of community organizations, employment
centers, community centers, fair housing groups, or housing counseling
agencies);
d. Records that will be kept describing actions taken to affirmatively market
units and records to assess the results of these actions;
e. A description of how the City can assess the success of affirmative
marketing actions; and
f. A certification that states that the Owner agrees to adhere to whatever
corrective actions the City requires to be taken where affirmative marketing
requirements are not met.
IN WITNESS WHEREOF, the Owner has caused this Agreement to be executed by its duly authorized
officer(s), and the City has caused this Agreement to be executed by its duly authorized officer(s), the day and
year first above written.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
6
THE PARTIES HERETO STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING AGREEMENT
AND THE CITY OF MIAMI BEACH MULTI-FAMILY REHABILITATION PROGRAMS GUIDELINES, AND
KNOW THE CONTENTS THEREOF AND FULLY REALIZE THEIR MEANING AND SIGN THIS
AGREEMENT AS THEIR OWN FREE ACT.
WITNESS:
~~.~~::=.
Name: i
N~>>;
ATTEST:
Ro ~~ f ~C:L.U.
CITY CLERK
L.V,S, Investments Inc., a Florida corporation
By:
Seymour
I ,
. l \, 'I..
By
Ddc ~1/.?/'2~'
7
STATE OF FLORIDA
SS:
COUNTY OF DADE
The foregoing instrument was acknowledged before me, this ~ day 0
V. Swezy, President of L.V.S.lnvestments Inc., a Florida corporation. Who is ersonal kn
produced as identification and did/did not take an oath.
~~ulIuYn~
Name:
NOTARY PUBLIC, State of Florida
Commission NQ C{! 4'fIP fS-~
My Commission Expires:
,'t--;;"~r;:~, JUDITH MARSHALL
:".: y;~ MY COMMISSION /I CC 446852
~~l EXPIRES: AprlI28, 1999
"Flf..\':i.;~' Bonded Thru Notary Public Underwriters
STATE OF FLORIDA
SS:
COUNTY OF DADE
The foregoing instrument was acknowledged before me, this J3- day of ()/J;;), 1995, by Seymour
Gelber, as Mayor of the City of Miami Beach. Who is personally known to me, and'did not take an oath.
My Commission Expires:
1 ",v :J~(t~-,L
Name: 1-1 /1'0".) 'Bl!..au,'hti/tj
NOT ARY PUBLIC, State of Florida
Commission NQ C (. jyr)? '8 L,.
[-. OTf~lT':rf~'i'j;!'].i;:T:':,r'---;
LE,UAI.j l~,,';_ic;;:..~;',' J'
NOTARY i-tl,';;L:(" ':'i r,;,;,' ,~.:- \ "':J""" \
~''''v(( ~2;;,:~>'~i,~~:>\ r.;:.)~ (..<>~;7~,;;,.~jUi ~
~" ,..,."1""<'''6.,,,\ ,'>, ,-;" "'''':''' I
...__.._...;....._~-:....~...~':;..;.~.J
8
ATTACHMENT "A"
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through federal funds, all parties agree to comply with the
following statutes, regulations and executive orders, as they apply. These requirements are incorporated
herein by reference.
1. Freedom of Information and Privacy Acts
_ Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S,C. 552a),
2. Equal Opportunity
_ Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1;
- Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended;
- Executive Order 11063, as amended by Executive Order 12259;
- Executive Orders 11246, 11265, 12138 and 12432;
_ Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170), as
amended;
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended;
- The Age Discrimination Act of 1975 (42 U.S.C. 6101);
- The Fair Housing Amendments Act of 1988.
3. Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq);
- The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508);
- Environmental Review Procedures (24 CFR Part 58);
- National Historic Preservation Act of 1966.
_ National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973.
4. Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S,C. 4801, et seq);
- HUD Lead Based Paint Regulations (24 CFR Part 35).
5. Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M);
- U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos Regulations
(29 CFR 191.1101).
6. Handicapped Accessibility
- Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41).
7. Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended;
- The Contract Work Hours and Safety Standards Act (40 U.S,C. 327-333);
- Federal Labor Standards Provisions (29 CFR Part 5,5).
8. Grant Regulations
- Community Development Block Grants (24 CFR Part 570),
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL
LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
9