2002-24911 Reso
RESOLUTION NO. 2002-24911
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE A SECOND
AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS
PROGRAM AGREEMENT, DATED APRIL 12, 2000, BETWEEN
THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), PROVIDING $145,087 IN HOME
PROGRAM FUNDS FROM FISCAL YEAR 1993/94
PREVIOUSLY ALLOCATED TO MBCDC TOWARDS THE
ACQUISITION AND REHABILITATION OF THE PROPERTY
LOCATED AT 1551 PENNSYLVANIA AVENUE TO PROVIDE
TWENTY (20) RENTAL UNITS FOR INCOME-ELIGIBLE
TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
WHEREAS, the City has established a HOME Investment Partnerships Program
(HOME Program) under the rules of the U.S. Department of Housing and Urban
Development (HUD), which provides financial assistance for the purpose of providing
affordable housing within the City; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution
No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC)
as a qualified Community Housing Development Organization (CHDO) under the HOME
Program; and
WHEREAS, the City has determined the necessity for providing affordable housing
in the City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1,
1998, and its One-Year Action Plan for Federal Funds for fiscal year 1999/2000, adopted
by Resolution No. 99-23238 on July 7, 1999, as amended; and
WHEREAS, ON September 17, 1999, the City adopted Resolution No. 99-23286,
authorizing a HOME Program Agreement with Owner which committed $600,000 from the
City's fiscal year 1999/2000 HOME Program allocation for eligible CHDO projects; and
WHEREAS, on April 12, 2000, the City adopted Resolution No. 2000-23843,
authorizing a HOME Program Agreement and the City and MBCDC entered into an
agreement to provide $400,000 of the $600,000 previously committed to MBCDC for the
acquisition and rehabilitation of the 20 unit apartment building located at 1551
Pennsylvania Avenue: and
WHEREAS, on June 28, 2000, the City adopted Resolution No. 2000-23971,
authorizing a First Amendment to a HOME Program Agreement to provide $500,000 of
HOME Program funds from fiscal years 1998/1999 and 1999/2000 towards the acquisition
and rehabilitation of the property located at 1551 Pennsylvania Avenue; and
WHEREAS, MBCDC has submitted a request to the City to utilize $145,087 of fiscal
year 1993/94 HOME Program funds previously allocated to MBCDC towards the
acquisition and rehabilitation of the property located at 1551 Pennsylvania Avenue; and
WHEREAS, on April 19, 2002, the City's Loan Review Committee recommended
that the City approve $145,087 of fiscal year 1993/94 HOME Program funds previously
allocated to MBCDC to complete the rehabilitation of the existing building, located at 1551
Pennsylvania Avenue.
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 a Second Amendment to the HOME Investment
Partnerships Program Agreement, dated April 12, 2000, between the City and Miami
Beach Community Development Corporation (MBCDC) providing $145,087 in HOME
Program funds from fiscal year 1993/94 previously allocated to MBCDC towards the
acquisition and rehabilitation of the property located at 1551 Pennsylvania Avenue to
provide twenty (20) rental units for income-eligible tenants in accordance with the HOME
Program requirements.
PASSED AND ADOPTED THIS
,2002
ATTEST:
~r f(Jk~
CITY CLERK
F:\NEIGlHouslngIRUSSELLIRESOLUTN\1551 PENN Second _d. Reso.doc
APPROVED AS TO
FOAM & LANGUAGE
& FOA EXECUTION
i!,!it
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A resolution providing $145,087 from FY 1993/94 HOME Program funds previously allocated to MBCDC
towards the cost of the acquisition and rehabilitation of an apartment building located at 1551 Pennsylvania
Avenue.
Issue:
Shall the City provide $145,087 from FY 1993/94 HOME Program funds previously allocated to MBCDC
towards the cost of the acquisition and rehabilitation of an apartment building at 1551 Pennsylvania Avenue
to provide 20 rental units for income-eligible tenants in accordance with the HOME Program requirements.
Item Summary/Recommendation:
On May 29, 2002, the City adopted Resolution No. 2002-24863 reallocating $760,000 of HOME Program
funds from fiscal years 1992/93 and 1993/94 to MBCDC. These funds were previously committed to the
Housing Authority of the City of Miami Beach. The City provided $614,913 of the $760,000 to be utilized
by MBCDC towards the cost of acquisition and rehabilitation of an apartment building at 532 Michigan
Avenue. MBCDC is now requesting to utilize the balance of $145,087 for the rehabilitation of the building
at 1551 Pennsvlvania Avenue.
Adviso Board Recommendation:
On April 19, 2002, the Loan Review Committee recommended that the City approve $145,087 of fiscal year
1993/1994 HOME Program funds to complete the rehabilitation of the existing building at 1551
Penns vania Avenue.
Financial Information:
Amount to be expended:
Source of
Funds:
HOME
Program
Funds
Finance Dept.
AGENDA ITEM C"1 C.
DATE 7-/C)-(>;}""
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.cLmiami-beach.f1.us
CITY OF MIAMI BEACH
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez \ .__~
City Manager 0 fJ'o/' ()
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A SECOND AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT, DATED APRIL
12, 2000, BETWEEN THE CITY AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC), PROVIDING $145,087 IN
HOME PROGRAM FUNDS FROM FISCAL YEAR 1993/94 PREVIOUSLY
ALLOCATED TO MBCDC TOWARDS THE ACQUISITION AND
REHABILITATION OF THE PROPERTY LOCATED AT 1551
PENNSYLVANIA AVENUE TO PROVIDE TWENTY (20) RENTAL UNITS
FOR INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS.
Date: July 10, 2002
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City has received an annual allocation of HOME Investment Partnerships (HOME)
Program funds from the U.S. Department of Housing and Urban Development (U.S. HUD)
since 1992 for the purpose of expanding the supply of housing for persons meeting the
income criteria of the HOME Program. This Program encourages partnerships between
the government and the private sector, including for-profit and not-for-profit organizations
for the acquisition, construction and rehabilitation of housing.
On April 12, 2000, the City adopted Resolution No. 2000-23843 to provide $400,000 of
HOME Program funds to MBCDC for utilization towards the acquisition and rehabilitation of
a 20-unit apartment building at 1551 Pennsylvania Avenue. Subsequently, on June 28,
2000, the City adopted Resolution No. 2000-23971 to provide $500,000 of HOME Program
funds for the acquisition and rehabilitation of the same property. On July 25, 2000,
MBCDC purchased the 20 unit apartment building, located at 1551 Pennsylvania Avenue,
Miami Beach.
The building is a two-story Art Deco building located within the Art Deco Historic District of
South Beach and was constructed in 1947. The building was vacant when it was acquired
and has remained unoccupied.
Ju/y 10, 2002
Commission Memorandum
1551 Pennsylvania Avenue, Second Amendment
Page 2
In addition to the HOME Program funds from the City of Miami Beach, MBCDC has
leveraged funds from other sources. MBCDC has been approved for a State Housing
Homeless Assistance Grant through the Miami-Dade Homeless Trust in the amount of
$250,000, a first mortgage loan from the Local Initiative Support Corporation (L1SC) in the
amount of $350,000, and a second mortgage from the Miami-Dade County Surtax
Incentive Pool in the amount of $300,000. MBCDC is now requesting $145,087 from the
City's HOME Program funds to utilize towards the renovation of the building.
Since acquiring the building, MBCDC has obtained approval from the City's Building
Department for the renovation plans. The renovation of the building includes the following:
replace wall mounted A1C units with a central H.vAC. systems; replace electrical system;
replace all plumbing fixtures and piping; replace existing windows; provide new
kitchenettes; replace and refinish woodwork; upgrade fire alarm and detection system;
convert basement into laundry room; install new wallboard on ceiling and wall areas; re-
landscape entry; and provide and install security features as necessary.
On May 29, 2002, the Commission adopted Resolution No. 2002-24863 reallocating
$760,000 of HOME Program funds from fiscal years 1992/1993 and 1993/1994 to MBCDC.
These funds were previously committed to the Housing Authority of the City of Miami
Beach. The City provided $614,913 of the $760,000 to be utilized by MBCDC towards the
cost of the acquisition and rehabilitation of an apartment building located at 532 Michigan
Avenue. MBCDC is now requesting to utilize the balance of $145,087 for the rehabilitation
of the building at 1551 Pennsylvania Avenue.
On April 19, 2002, the Loan Review Committee recommended that the City approve
$145,087 oftiscal year 1993/94 HOME Program funds to complete the rehabilitation of the
existing building located at 1551 Pennsylvania Avenue.
The Administration recommends that the Mayor and City Commission authorize the Mayor
and City Clerk to execute a Second Amendment to the HOME Investment Partnerships
Program Agreement dated April 12, 2000, between the City and Miami Beach Community
Development Corporation (MBCDC), providing $145,087 in HOME Program funds from
fiscal year 1993/94 previously allocated to MBCDC towards the acquisition and
rehabilitation of the property located at 1551 Pennsylvania Avenue to provide twenty (20)
rental units for income-eligible tenants in accordance with the HOME Program
requirem nts.
JMGl ~~~
F:\NE UELl\Mlln'lcnndum\t551 PENN SECOND AMEND. MEMO.doc
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SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
TillS SECOND AMENDMENT TO THE AGREEMENT, entered into this ID1'1tay of rls.l.9-, 2002,
by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having its principal
office at 1700 Convention Center Drive, Miami Beach, Florida, (City), and MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit Corporation,
with offices located at 954 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to as
Owner).
WITNESSETH:
WHEREAS, on September 17, 1999, the City adopted Resolution No. 99-23286, authorizing
a HOME Program Agreement with Owner which committed $600,000 from the City's fiscal year
1999/2000 HOME Program allocation for eligible CHDO projects; and
WHEREAS, on April 12, 2000, the City adopted Resolution No. 2000-23843, authorizing a
HOME Program Agreement, and the City and Owner entered into an agreement to provide $400,000
of the $600,000 previously committed to MBCDC for the acquisition and rehabilitation of the 20 unit
apartment building located at 1551 Pennsylvania Avenue; and
WHEREAS, on June 28, 2000, the City adopted Resolution No. 2000-23971, authorizing a
First Amendment to the HOME Program Agreement to provide $500,000 of HOME Program funds
from fiscal years 1998/1999 and 1999/2000 for the acquisition and rehabilitation of the property located
at 1551 Pennsylvania Avenue; and
WHEREAS, the Owner has submitted a request to the City to utilize $145,087 of fiscal year
1993/94 HOME Program funds the previously allocated to MBCDC towards the acquisition and
rehabilitation of the property located at 1551 Pennsylvania Avenue; and
WHEREAS, on April 19, 2002, the City's Loan Review Committee recommended that the City
approve $145,087 of fiscal year 1993/94 HOME Program funds previously allocated to MBCDC to
complete the rehabilitation of the existing building located at 1551 Pennsylvania Avenue; and
WHEREAS, Owner warrants and represents that it possesses the legal authority to enter into
this Agreement, by way of a resolution that has been duly adopted as an official act of the Board of
Directors, authorizing the execution of this Agreement, including all understandings and assurances
contained herein, and authorizing the person(s) identified as their official representative(s) to execute
this Agreement and any other documents which may be necessary to implement this project; and
WHEREAS, the City and the Owner now wish to amend the Agreement.
NOW, THEREFORE, in consideration of the promises and of the mutual covenants and
agreements hereinafter set forth, the parties hereto do hereby agree as follows:
1
"
1. ARTICLE n, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in its
entirety and amended as follows:
In consideration of the performance by Owner of its role and responsibilities set forth
in this Agreement, the City agrees to provide a conditional grant of HOME Program funds to
Owner in the amount of One Million Forty-Five Thousand Eighty-Seven Dollars ($1,045,087)
(Funds) which consists of$600,000 of previously allocated fiscal year 1999/2000 CHDO set-
aside funds, $120,253 from fiscal year 1998/99, $179,747 from fiscal year 1999/2000, and
$145,087 of previously allocated fiscal year 1993/1994 CHDO set-aside funds.
2. ARTICLE XXX, LIMITATION OF LIABILITY, page 14, is hereby deleted in its entirety and
amended as follows:
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
$1,045,087. Owner hereby expresses its willingness to enter into this Agreement with Owner's
recovery from the City for any damage action for breach of contract to be limited to a maximum
amount of$I,045,087. Accordingly, and notwithstanding any other term or condition of this
Agreement, Owner hereby agrees that the City shall not be liable to Owner for damages in an
amount in excess of$1,045,087, 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.
3. ARTICLE XXXIV, NOTICES, page 16 is hereby deleted in its entirety and amended as follows:
All notices shall be sent to the parties at the following addresses:
If to the City:
City of Miami Beach
1700 Convention Center Drive, 3rd Floor
Miami Beach, FL 33139
Attn: (I) City Attorney's Office
and (2) Housing Director
If to Owner:
Roberto Datorre, President
Miami Beach Community Development Corporation
945 Pennsylvania Avenue
Miami Beach, FL 33139
or to such address and to the attention of such other person as the City or Owner may from time
to time designate by the written notice to the other.
2
4. The existing EXHffiIT B, BUDGET, is deleted in its entirety, and is replaced by the revised
EXHIBIT B TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT, BUDGET,
reflecting the adjustments in the HOME Program funds from the City of Miami Beach.
5. Except as amended by this Amendment, no term or condition of the Agreement shall be
modified and the same shall remain in full force and effect; provided, however, if any revision
of this Amendment is in conflict with, or inconsistent with, any information in the Agreement,
the provision contained in this Amendment shall govern and control.
6. This Amendment shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day and date
first above written.
ATTEST:
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
~~
'-"
Secretary
o a orre, President, Authorized Signatory
ATTEST:
Mayor
~r.r~
F:\NEIGIHousingIRUSSELLIRESOLUTN\1551 PENN Second Amend. Agree.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
3
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,
EXHIBIT B TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
BUDGET
EXHIBIT B TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
SOURCES AND USES OF FUNDS
SABRINA APARTMENTS
1551 PENNSYLVANIA AVENUE
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH HOME PROGRAM FUNDS
STATE HOUSING HOMELESS ASSISTANCE GRANT lHROUGH MIAMI-DADE COUNTY
LOCAL INITIATIVES SUPPORT CORPORATION
MIAMI-DADE COUNTY SURTAX INCENTIVE POOL
REQUESTED FROM COTY OF MIAMI BEACH HOME PROGRAM FUNDS
MBCDC
USES OF FUNDS
ACQUIsmON OF PROPERTY
PRE-DEVELOPMENT COSTS
REHABILITATION CONSTRUCTION
CONSTRUCTION CONTINGENCIES
$900,000
250,000
300,000
300,000
145,087
735
$1,895,822
$760,000
270,822
830,000
35.000
$1,895,822