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99-23209 RESO RESOLUTION NO. 99-23209 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 HOME INVESTMENT P ARTNERSIDPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING NINE HUNDRED SEVENTY THOUSAND DOLLARS ($970,000) OF HOME PROGRAM FUNDS FOR THE ACQUISITION AND REHABILITATION OF THE CRESPI PARK APARTMENTS, LOCATED AT 7900-7920 CRESPI BOULEVARD AND 1011 AND 1023 79TH STREET, MIAMI BEACH, TO PROVIDE SIXTEEN (16) RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; APPROVING AN AMENDMENT TO THE CITY'S 1998/1999 ONE YEAR ACTION PLAN FOR FEDERAL FUNDS REALLOCATING $224,397 OF FISCAL YEAR 1997/98 HOME FUNDS FROM A NOTICE OF FUNDING AVAILABILITY AND $502,803 FROM FISCAL YEARS 1996/97 AND 1998/99 HOME PROGRAM FUNDS FROM THE CITY'S MULTI-FAMILY HOUSING REHABILITATION PROGRAM TO FUND TIDS INITIATIVE IN NORTH BEACH; FURTHER, APPROVING A ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO MBCDC: CRESPI PARK APARTMENTS, INC., A NOT-FOR-PROFIT ENTITY TO BE CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE CRESPI PARK APARTMENTS, AND UNDER THIS AGREEMENT. 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 (BUD), 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, in accordance with the HOME Program regulations, the City must reserve a minimum of fifteen (15) percent of each fiscal year's HOME allocation for a CHDO set-aside for investment in housing to be developed, sponsored or owned by CHDOs; and WHEREAS, on December 2, 1998, the City adopted Resolution No. 98-22980, authorizing a HOME Program Agreement with MBCDC which committed $787,800 from the City's HOME Program allocation from fiscal years 1997/98 ($187,800) and 1998/99 ($600,000) for eligible CHDO projects; and WHEREAS, MBCDC has submitted a request to the City to utilize $242,800 of the previously allocated fiscal year 1998 CHDO funds in conjunction with $727,200 of reallocated HOME Program funds toward the acquisition and rehabilitation cost of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard, and 1011 and 1023 - 79th Street, Miami Beach, for the provision of 16 rental units for income-eligible tenants under the rules of the HOME Program; and WHEREAS, the City wishes to amend the One Year Action Plan for Fiscal Year 1998/99 by reallocating HOME Program funds in the amount of $224,397 from the fiscal year 1997/98 Notice of Funding Availability and $502,803 from fiscal years 1996/97 and 1998/99 from the Multi- Family Housing Rehabilitation Program to provide $727,200 as a CHDO allocation of funds for the acquisition and rehabilitation of the Crespi Park Apartments; and WHEREAS, on April 23, 1999, the City's Loan Review Committee reviewed and recommended approval by the City Commission of MBCDC's funding request for the acquisition and rehabilitation of the Crespi Park Apartments and recommended approval of the proposed amendment to the City's 1998/99 One Year Action Plan for federal funds. WHEREAS, Owner intends to create a not-for-profit entity which will assume all interest and title to the Crespi Park Apartments and be a successor in interest to MBCDC pursuant to this Agreement; and WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment of this Agreement to MBCDC: Crespi Park Apartments, Inc. 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 (HOME) Program agreement with the Miami Beach Community Development Corporation (MBCDC), providing Nine Hundred Seventy Thousand Dollars ($970,000) of HOME program funds for the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street, Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in accordance with the HOME Program requirements; approving an amendmeI!t to the City's 1998/1999 One Year Action Plan for federal funds reallocating $224,397 of fiscal year 1997/98 HOME funds from a Notice of Funding Availability and $502,803 from fiscal years 1996/97 and 1998/99 HOME Program funds from the City's Multi-Family Housing Rehabilitation Program to fund this initiative in North Beach; further, approving a one-time only assignment of this Agreement to MBCDC: Crespi Park Apartments, Inc., a not-for-profit entity to be created by MBCDC as a successor in interest in title to the Crespi Park Apartments, and under this Agreement. PASSED AND ADOPTED THIS 9th DAY OF June ,1999 ATTEST: ~yPOvv~ CITY CLERK ~ MAYOR F:\DDIIP\SALLIBE1lI\CRESPI\79CRESPI.RES APPROVED AS TO FORM & LANGUAGE & fOR EXECUT:ON ~~ ,,/)1,,_ Dote CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cl.mlaml-beach.f1.us COMMISSION MEMORANDUM No.!:J..3 \ -~4 TO: Mayor Neisen O. Kasdin and Members of the City C mission DATE: June 9, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: OF THE MAYOR AND CITY COMMISSION OF THE CITY OF BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT P ARTNERSIDPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING NINE HUNDRED SEVENTY THOUSAND DOLLARS ($970,000) OF HOME PROGRAM FUNDS FOR THE ACQUISITION AND REHABILITATION OF THE CRESPI PARK APARTMENTS, LOCATED AT 7900-7920 CRESPI BOULEVARD AND 1011 AND 1023 79TH STREET, MIAMI BEACH, TO PROVIDE SIXTEEN (16) RENTAL UNITS FOR INCOME-ELIGmLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; APPROVING AN AMENDMENT TO THE CITY'S 1998/1999 ONE YEAR ACTION PLAN FOR FEDERAL FUNDS REALLOCATING $224,397 OF FISCAL YEAR 1997/98 HOME FUNDS FROM A NOTICE OF FUNDING AVAILABILITY AND $502,803 FROM FISCAL YEARS 1996/97 AND 1998/99 HOME PROGRAM FUNDS FROM THE CITY'S MULTI-FAMILY HOUSING REHABILITATION PROGRAM TO FUND TIllS INITIATIVE IN NORTII BEACH; FURTHER, APPROVING A ONE-TIME ONLY ASSIGNMENT OF TIllS AGREEMENT TO MBCDC: CRESPI P ARK APARTMENTS, INC., A NOT-FOR-PROFIT ENTITY TO BE CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE CRESPI PARK APARTMENTS, AND UNDER TIDS AGREEMENT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution BACKGROUND: 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 AGENDA ITEM ~, D DATE G:, - 9 - 99 COMMISSION MEMORANDUM Page 2 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. The HOME Program requires the City, in its capacity as a participating jurisdiction, to set aside a minimwn of 15 percent of its annual allocation for a particular type of not- for-profit organization called a Community Housing Development Organization (CHDO). The CHDO is required to use these funds for housing development activities in which the CHDO is either the owner, sponsor or developer of the housing. The Miami Beach Community Development Organization (MBCDC) was designated as a CHDO in 1993. In an effort to address the need to rehabilitate the existing housing stock in the North Beach area, MBCDC has proposed the acquisition and rehabilitation of the Crespi Park Apartments located on three adjacent parcels at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street, to provide sixteen (16) rental units for income-eligible tenants. For this initiative, MBCDC has requested $727,200 in HOME Program CHDO funds to be utilized in conjunction with $242,800 of HOME Program CHDO funds previously committed to MBCDC for a total of$970,000 of HOME Program funds. The proposed amendment of the City's One-Year Action Plan for federal funds reallocates HOME Program funds from citywide activities to this specific initiative in North Beach. MBCDC has entered into three contracts for sale and purchase in the total amount of $730,500 for the acquisition of the Crespi Courts Apartments, 7900-7920 Crespi Boulevard, the Israbian Apartments, 1023 79th Street along with an adjacent lot located at 1011 79th Street. The properties were recently appraised at $730,000. The total cost of this initiative, including rehabilitation of the building, is estimated at $1,282,825. MBCDC has a commitment from the Florida Department of Community Affairs for a zero (0) percent loan in the amount of $238,000 and a bank loan for the balance. In addition, MBCDC is making the commitment to pursue other funds from Miami-Dade County. If MBCDC receives funding from the County for this project, then the City's HOME Program contribution would be reduced proportionately. Since federal funds would be provided for this project, the provisions of the Uniform Relocation Act (URA) apply. Currently, nine of the 16 apartments are occupied. As required by the URA, MBCDC has conducted initial tenant surveys. Based on these surveys, it appears that none of the tenants will be permanently displaced as a result of the project. Temporary relocation of some tenants within the buildings may be needed in order to complete the rehabilitation. In the event that there are relocation expenses, MBCDC would use bank loan proceeds to cover the costs. ANALYSIS: The Crespi Park Apartments is composed of three buildings and a parking lot on two adjacent properties. The buildings are currently named the Crespi Court Apartments and the Israbian Apartments. When the project is completed, the three buildings will be collectively named the Crespi Park Apartments. The Crespi Courts Apartments, 7900 and 7920 Crespi Boulevard are two Post-War Modem buildings built in 1954, each with four units, located in the North Beach District. The two buildings COMMISSION MEMORANDUM Page 3 currently contain 8 two-bedroom apartment units, with a total of approximately 8,268 square feet. MBCDC is proposing to rehabilitate the buildings without changing the room layout On November 20, 1998, MBCDC entered into a contract for sale and purchase in the amount of $320,000 for the purchase of the Crespi Courts Apartments. Since then, in order to retain site control, the purchase price was increased by $5,000. The Israbian Apartments, 1023 -79th Street is a two-story Post War Modem building built in 1949 located adjacent to the Crespi Courts Apartments. The building contains 6 one-bedroom apartments, and 2 two-bedroom apartments. The building has a total of 5,205 square feet MBCDC is proposing to rehabilitate the building without changing the room layout. On December 8, 1998, MBCDC entered into contracts for sale and purchase in the amount of $400,000 for the purchase of the Israbian Apartments, along with an adjacent lot located at 1011 79th Street used for off-street parking. Since then, in order to retain site control, the purchase price was increased by $5,500. MBCDC is proposing to rehabilitate the buildings to provide sixteen (16) units of rental housing, consisting often (10) two-bedroom units and six (6) one-bedroom units. In accordance with the HOME Program regulations, the units will be provided to families and individuals meeting the income requirements of the program for a minimum of 15 years. An architect has been commissioned to develop the renditions and exterior improvements which will result in a cohesive appearance of the three adjacent properties. The proposed scope of work iIicludes the following: installation of upgraded air conditioning systems, upgI'adingof electriCal and plumbing systems, new appliances, cabinets, doors, bathroom fiXtures, lighting fixtures, new windows, hurricane shutters, interior and exterior modifications including ramps to meet ADA requirements, upgraded laundry facilities, improvement of trash enclosure, new roof for two of the buildings and roof repairs on the third building, improvements to the parking lot, landscaping, and site fencing. The floor grade of the first level of the buildings is below the base floodplain elevation required by the Federal Emergency Management Agency (FEMA) of 8 feet above NGVD. MBCDC will be required to comply with the provisions of the City's Flood Plain Management Ordinance 92-2822 to obtain appropriate permits and variances, as required, and to maintain acceptable flood insurance coverage for the life of the project. On April 23, 1999, the Loan Review Committee reviewed and recommended approval by the City Commission of MBCDC's funding request for the Crespi Park Apartments. In order to fund this initiative, the Loan Review Committee approved a motion to amend the City's fiscal year 1998/99 One Year Action Plan for federal funds in order to reallocate $502,803 HOME Program funds from fiscal years 1996/97 and 1998/99 from the City's Multi-Family Housing Rehabilitation Program and $224,397 from fiscal year 1997/98 HOME Program funds from a Notice of Funding Availability issued in September 1998 and no responsive applications were received by the City. In accordance with HUD regulations and the adopted Citizen Participation Plan, the Administration advertised on April 29, 1999 a 30-day citizen comment period on the proposed amendment. No comments were received. COMMISSION MEMORANDUM Page 4 CONCLUSION: The Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute the attached HOME Investment Partnerships (HOME) Program agreement with the Miami Beach Community Development Corporation (MBCDC), providing Nine Hundred Seventy Thousand Dollars ($970,000) of HOME program funds for the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street, Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in accordance with the HOME Program requirements; approving an amendment to the City's 1998/1999 One Year Action Plan for federal funds reallocating $224,397 offisca1 year 1997/98 HOME funds from a Notice of Funding Availability and $502,803 from fiscal years 1996/97 and 1998/99 HOME Program funds from the City's Multi-Family Housing Rehabilitation Program to fund this initiative in North Beach; further, approving a one-time only assignment of this Agreement to MBCDC: Crespi Park Apartments, Inc., a not-for-profit entity to be created by MBCDC as a successor in interest in title to the Crespi Park Apartments, and under this Agreement. 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'..'!. /]"Ol'~ 8~ :e.rJ~; 1j'4i;.a. 50' ~ ",it? lNI.'4.~ .,. ,...,~... '. I), ,1 . 7 41,;' 7. _Y , .'. . ~ , .. ~ !,'. .. . .!~. ".1~::~ : ~:d;~~' ~'~ ; ~ I a(.~:~~ ~""~c ~. j.- ' L-O; ,y. i~/ Mt ;~ ;: ~~_ . - "1 ' " I . .~; -- I :~I ~~I '- ~~j )l ~' 3 j . j r :.\1.: i- r. Q r " , . , : Ii . 1 1 I :1 . .1 : II ~. I rr 4 .I .. 1 ~ p HOME PROGRAM AGREEMENT THIS AGREEMENT, entered into this~ day ofvUAlt. 1999, 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 1205 Drexel Avenue, Miami Beach, Florida (hereinafter referred to as Owner). WITNESSETH: WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of Housing and Urban Development (HUD) as a Participating Jurisdiction for the receipt of funds through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and WHEREAS, the City has entered into an agreement with HUD for the purpose of conducting an affordable housing program with federal financial assistance under the HOME Program; and WHEREAS, on April 8, 1993, the Mayor and City Commission, approved Resolution No. 93-20756, designating Owner as a qualified Community Housing Development Organization (CHDO) under the HOME Program; and WHEREAS, on December 2, 1998, the Mayor and City Commission approved Resolution No. 98-22980, authorizing a HOME Program Agreement with MBCDC which committed $787,800 from the City's HOME Program allocation, $187,800 from fiscal year 1997/98, and $600,000 from fiscal year 1998/99 for eligible CHDO projects; and WHEREAS, Owner shall utilize $242,800 of previously committed fiscal year 1998 CHDO funds and $727,200 of reallocated HOME Program funds toward the acquisition and rehabilitation cost of Crespi Park Apartments, located at 7900-7920 Crespi Boulevard, and Israbian Apartments, 1011 and 1023 - 79th Street, Miami Beach, for the provision of sixteen (16) rental units for families and individuals qualified under the HOME Program (Project); and WHEREAS, on April 23, 1999, the City's Loan Review Committee reviewed and recommended approval by the City Commission of MBCDC's funding request for the acquisition and rehabilitation of this CHDO Project; 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, Owner intends to create a not-for-profit entity which will assume all interest and title to the Crespi Park Apartments and be a successor in interest to MBCDC pursuant to this Agreement; and 1 WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment of this Agreement to MBCDC: Crespi Park Apartments, Inc. 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 Program: HOME Investment Partnerships Program, as set forth in 24 CFR Part 92, as amended. (b) HUD: United States Department of Housing & Urban Development or any successor agency. (c) Funds: HOME Program funds. (d) CHDO: Community Housing Development Organization as defined in the HOME Investment Partnerships Program. 24 CFR, Part 92, as amended, and CPD Notice 94-02. (e) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92. and any amendments thereto, not otherwise defined in this Agreement, shall have the meaning set forth in said Rule. (e) HOME Assisted Units: A term that refers to the number of units in a project assisted with HOME Program funds for which rent, occupancy. and resale/recapture restrictions apply. ARTICLE" ALLOCATION OF HOME FUNDS In consideration of the performance by Owner of its role and responsibilities set forth in this Agreement, the City agrees to provide a Grant of HOME funds to Owner in the amount of Nine Hundred Seventy Thousand Dollars ($970,000) (Funds) consisting of CHDO set-aside funds of $242.800 from fiscal year 1998/99. and $727,200 in funds reallocated to the CHDO by an amendment to the City's 1998/99 One-Year Action Plan for federal funds. The Funds will be utilized by Owner for a CHDO project that provides for the acquisition and rehabilitation of adjacent properties located at 7900 - 7920 Crespi Boulevard, and 1011 and 1023 - 79th Street, that will provide 16 rental units for income qualified families and individuals. Owner will acquire and rehabilitate the Project as more fully described in the Scope of Services (Exhibit A) and Budget (Exhibit B). Owner will maintain required HOME Program rent and occupancy limitations for a minimum period of 15 years (the Affordability Period) commencing with the issuance of the final approved Certificate of Completion by the City's Building Department following the planned rehabilitation. 2 ARTICLE III PROCEEDS FROM HOME INVESTMENT In accordance with the 24 CFR Part 92.300 (a)(2), Owner may retain the proceeds from the investment of its CHDO set aside funds for use in other housing activities which benefit low.;income families. ARTICLE IV SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM Owner expressly agrees to the following terms and conditions in conformity with the HOME Program Final Rule. (a) Repayment of Funds. 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 required time period in accordance with the terms of this Agreement and the HOME Program Regulations. Any violation of these 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, being returned and/or otherwise repaid by Owner to the City, and same shall be considered and treated as an event of default resulting in the City's termination for cause of the Agreement, pursuant to Article XXVI herein. 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, Owner shall execute a Mortgage and Note in the format provided by the City, incorporating the terms of this section, which shall be recorded in the Official Records of Miami-Dade County Florida. (b) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR 92.252, as published from time-to-time by HUD. The City shall provide a HOME Program rent schedule annually to Owner. (c) 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. Owner must re-examine and document the income of each tenant living in the HOME assisted units annually. The maximum monthly rent must be recalculated by Owner and reviewed and approved by the City annually. Any increase in rents for HOME-assisted units is subject to the provisions of outstanding leases and, in any event, the owner must provide the tenant with not less than 30 days written notice before implementing any rent increase. (d) Owner shall comply with all applicable federal regulations as they may apply to restrictions and limitations regarding real property under Owner's control acquired or improved in whole or in part with HOME funds. (e) The Project must provide safe, sanitary, and decent residential housing for income eligible tenants (Le., persons whose income is within specific income levels set forth by HUD). (f) Income Targeting. Owner shall maintain written documentation that conclusively 3 demonstrates that the project assisted in whole or in part with HOME funds provides benefit to very-low income households (annual income does not exceed 50 percent of the median family income for the area) and low-income households ( annual income does not exceed 80 percent of the median income for the area) as required. (9) Records: Owner 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. (i) 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. The City shall conduct annual or bi-annual, as required, on-site inspections of the project to assure compliance with housing codes. The City may select a sample of the units in the project to satisfy the inspection requirements. G) Environmental Review. For the Project described in the Scope of Services (Exhibit A), attached hereto, Owner shall obtain a Phase I, Environmental Assessment, and agree to mitigate any hazardous conditions identified therein. (k) Affirmative Marketing. In order to provide persons in the housing market area with a range of housing choice, regardless of race, color, religion, sex, handicap, familial status, or national origin, Owner agrees to administer the HOME Program in a manner that will affirmatively further the purposes of Title VI of the Civil Rights Act of 1964 at 24 CFR 1, the Fair Housing Act at 24 CFR 100 and Executive Order 11063 at 24 CFR 107. Owner will submit its written procedures that implement these requirements for review and approval by the City. (I) Tenant and Participant Protection. Owner agrees that the lease to be executed with the tenants of rental housing will be in accordance with 24 CFR Part 92.253. Furthermore, if HOME assistance is provided to a CHOO, the CHOO must adhere to a fair lease and grievance procedure approved by the City and provide a plan for and follow a program of tenant participation in management decisions (24 CFR Part 92.303). (m) CHDO Capabilities. Owner, as a CHOO, agrees that it will function as an owner of the Project and that it shall have effective management control. (n) Change in Status. Owner agrees to advise the City in writing within thirty (30) days of any organizational, operational or legal status changes made by Owner that affect documents that were submitted by Owner to obtain CHOO status. ARTICLE V ELIGIBLE COSTS Owner agrees that eligible costs for the Project under this Agreement are limited to those eligible costs as outlined in 24 CFR Part 92.206 of the HOME Program regulations. 4 ARTICLE VI DISBURSEMENT OF FUNDS (1) The Funds shall be used by Owner for acquisition of real property, rehabilitation and related soft costs. (2) The portion of the Funds to be used towards the cost of rehabilitation shall be disbursed by the City to Owner as follows: During the construction phase, and not more often than once a month, a payment may be requested equivalent to ninety percent (90%) of the value of the work completed in the previous period, as certified by Owner's Architect or Engineer, and confirmed by the City's Community/Economic Development Department. The final ten percent (10%) of the rehabilitation 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. (3) 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 Owner is required to submit to the City pursuant to the terms of this Agreement or any amendments thereto. (4) No payments will be made without evidence of appropriate insurance required by this Agreement. Such evidence must be on file with the City. (5) Owner understands and agrees that disbursement requests for 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. ARTICLE VII SUBCONTRACTS (a) Owner shall use its best efforts 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 Owner subcontracts, a copy of the executed subcontract must be forwarded to the City within ten (10) days after execution. ARTICLE VIII CONDITIONS OF SERVICE (a) As a condition of these services, Owner agrees to comply with the HOME Program Final Rule, 24 CFR Part 92, and any Amendments or Notices issued pursuant thereto. (b) Owner 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, to the maximum extent possible, in connection with HOME-funded activities. 5 (c) Owner agrees to comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR Part 24. The Owner acknowledges having received the HUD Manual entitled "All the Right Moves: Relocation and Assistance In HUD Programs" and HUD Handbook 1378 and will comply with all requirements contained therein. (d) Owner agrees to comply with all of the following federal laws, executive orders, and regulations pertaining to fair housing and equal opportunity. (1) Title VI of the Civil Rights Act of 1964, As Amended (42 U.S.C. 2000d) - pertaining to discrimination under any program or activity receiving federal financial assistance on the basis of race, color, or national origin. Its implementing regulations may be found in 28 CFR Part 1. (2) Title VIII ofthe Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42 U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115 - Prohibiting discrimination in the sale or rental of units in the private housing market. (3) Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259) and implementing regulations at 24 CFR Part 107 -- Prohibiting discrimination in housing or residential property financing related to any federally assisted activity. (4) Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101) and its implementing regulations at 24 CFR Part 146 -- Prohibiting age discrimination in programs receiving federal financial assistance. 5) Equal Employment Opportunity, Executive Order 11246, As Amended and its implementing regulations at 41 CFR Part 60 - Prohibiting discrimination against any employee or applicant for employment. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. (e) Owner agrees to comply with the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) -- Requires that, to the greatest extent feasible, opportunities for training and employment arising from HOME funded projects will be provided to low-income persons residing in the program service area; and, to the greatest extent feasible, contracts for work to be performed in connection with HOME funded projects will be awarded to business concerns that are located in, or owned by persons residing in the program service area. (f) Owner will ensure that all units in a project assisted with HOME funds comply with the Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et) and its implementing regulations at 24 CFR 35. (g) Owner agrees to comply with the Federal Labor Standards Provisions, as described in HUD Handbook 1344-1 (Federal Labor Standards Compliance in Housing and Community Development Programs). (h) Owner agrees to comply with the requirements of 24 CFR part 24 regarding debarment and suspension. 6 ARTICLE IX TERM OF AGREEMENT This Agreement shall be effective upon execution by both parties and shall terminate at the conclusion of the 15 year period of affordability as specified in 24 CFR 92.252 (affordable rental housing). ARTICLE X TERMINA TION The City and Owner agree that this Agreement may be terminated by the City, in whole or in part, for cause (as defined in Article XXVI herein and in accordance with the provisions of 24 CFR Part 85.43) or for convenience (as defined in Article XXVII and 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 portiones) to be terminated. ARTICLE XI AMENDMENTS Any alterations, variations, modifications or waivers of any provisions of this Agreement, including an increased allocation of funds, shall only be valid when they have been reduced to writing and signed by the City and Owner. ARTICLE XII CONFLICT OF INTEREST (a) Owner shall comply with the standards contained within 24 CFR Part 92.356 which states that no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent or consultant of the owner, developer or sponsor) whether private-for-profit or non-profit, may occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to an employee or agent of the owner or developer of a rental housing project who occupies a HOME- assisted unit as the project manager or maintenance worker. Exceptions may be granted by the City in accordance with 24 CFR Part 92.356(f)(2). (b) Owner shall disclose any possible conflicts of interest or apparent improprieties of any party that is covered by the above standards. Owner shall make such disclosure in writing to the City immediately upon Owner's discovery of such possible conflict. The City will then render an opinion which shall be binding on all parties. (c) Related Parties. Owner 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, or an organization for which an officer of the Owner is responsible for appointing memberships. Owner 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 in the required Annual Report. 7 ARTICLE XIII INDEMNIFICATION AND INSURANCE Owner, 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 Owner or any of its agents, servants, employees, contractors, patrons, guests, clients, or invitees. Owner, 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. Owner shall maintain during the term of this Agreement, the insurance specified below. (1) General Liability: $500,000 combined single limit for bodily injury and property damage, for each occurrence. (2) Contractual Liability: the policy must include coverage to cover the above indemnification. (3) Automobile and vehicle coverage in the amount of $500,000 per occurrence shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement, including non-owned automobile coverage. (4) Workers' Compensation Coverage as per statutory limits of the State of Florida. (5) Builders Risk/Comprehensive Fire and Hazard Insurance: Owner shall deliver to the City the original policy of Builder's Risk and Comprehensive Fire and Hazard Insurance in completed value form with extended coverage in the amount of the full insurable value of the Project upon completion of construction, issued by a company satisfactory to the City. (6) Flood Insurance: Owner shall deliver to the City evidence satisfactory to the City that the premises are covered by flood insurance supplied by the Federal Insurance Administration to the maximum amount available, all as provided in the Flood Disaster Protection Act of 1973, as amended, together with appropriate endorsement. Owner agrees that the City shall have the right to take any action necessary to continue said insurance in full force. Owner shall submit to the City an ORIGINAL Certificate of Insurance for the above coverage with the City named as an additional insured, to the extent of its insurable interest on all policies required herein. 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. 8 ARTICLE XIV REPORTS (1) Progress Reoorts. Owner agrees to submit monthly progress reports to the City, describing the status of the Project and achievement of objectives as provided herein and in the Scope of Services (Exhibit A) and Budget (Exhibit B), 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 Owner to notify the City in writing, of any actions, law, or event, that will impede or hinder the completion 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. Owner 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. The City shall approve submitted rents if such rents comply with applicable Federal standards, or if HUD has approved same. b. Owner 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, HOME rents charged and other information the City may require to fulfill its reporting requirements to HUD. 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 Completion for the Project. The initial report shall be due within thirty (30) days of project lease-up. c. Annually, Owner shall deliver to the City's Housing and Community Development Division, by October 31st 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 15-vear period of affordability hereunder beginning on the date of issuance of a Final Certificate of Completion for the project. (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 9 Comptroller of the Currency 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 visit, the City determines that any payments made to Owner do not constitute an allowable expenditure, the City will have the right to deduct those amounts from their related invoices. Owner must maintain records necessary to document compliance with the provisions of this Agreement. ARTICLE XVI COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS Owner agrees to comply with all applicable Federal regulations as they may apply to program administration. Additionally, Owner will comply with all State and local laws and ordinances hereto applicable. ARTICLE XVII ADDITIONAL CONDITIONS (a) Title and paragraph headings are for convenient reference and are not a part of this Agreement. (b) In the event of conflict between the terms of this Agreement and any terms or conditions contained in any attached document, the terms in this Agreement shall rule. (c) No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. ARTICLE XVIII ACCESS TO RECORDS Owner, 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 insure compliance with applicable accounting and financial standards. Owner shall allow access during normal business hours to all other records, forms, files, and documents which have been generated in performance of this Agreement and 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. 10 ARTICLE XX PROJECT PUBLICITY Owner 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, and that the Program is administered by the City's Community and Economic Development Department, which is the entity providing funds for the Project. ARTICLE XXI DRUG-FREE WORKPLACE Owner agrees to administer in good faith, a policy to ensure that it complies with the Drug- Free Workplace Act requirements under 24 CFR Part 24, SUbpart F, and will ensure that the workplace is free from the unlawful manufacture, distribution, dispensing, possession or use of drugs or alcohol. ARTICLE XXII NONDELEGABLE Owner 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 Owner agrees that this Agreement shall be binding upon the parties herein, their heirs, executors, legal representatives, successors, and assigns. ARTICLE XXIV INDEPENDENT CONTRACTOR Owner 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. ARTICLE XXV ASSIGNMENT This Agreement may not be assigned or transferred by Owner without the prior written consent of the City thereto, which consent shall not be unreasonably withheld. It shall be deemed a default of this Agreement in the event that Owner 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 Owner makes an assignment for 11 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 Owner, shall be deemed an assignment of this Agreement and will require the prior written consent of the City thereto. ARTICLE XXVI TERMINATION FOR CAUSE The City may place Owner 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, but not be limited to, the following: (a) Owner's failure to (i) diligently pursue additional Project financing and to close on the acquisition of the Project within 60 days from the date of execution of this Agreement; or (ii) commence work within thirty (30) days from the date of issuance of the Notice to Proceed; or (iii) diligently pursue construction and timely complete the project by securing a Final Certificate of Completion within twelve (12) months from the date of execution of this Agreement. Work shall be considered to have commenced and be in active progress when, in the sole opinion of the City, a full complement of workers 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 a Lender. (d) Owner's failure to maintain the insurance required by the City and/or Lender. (e) 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. (f) 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 Owner. (g) Implementation of this Agreement, for any reason is rendered impossible or infeasible. (h) Failure to respond in writing within thirty (30) days of notice of same from City to any concerns raised by the City, including providing substantiating documentation when requested by the City. (i) 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. 12 G) Owner's insolvency or bankruptcy. (k) An assignment or transfer of this Agreement or any interest therein which does not comply with the procedures set forth in Article XXV herein. (I) 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. (m) Failure to comply and/or perform in accordance with the affordability requirements, and/or an unauthorized transfer of title of its HOME projects. If the default complained of is not fully and satisfactorily cured within thirty (30) days of receipt of such notice of default to Owner, 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 Owner 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. In the event of a default for cause, the City may, at its option, avail itself of any and all remedies pursuant to 24 CFR Part 85.43, as amended from time to time, including suspension, in whole or in part, of Owner's grant award(s); recapture of the Funds, as set forth herein; and any other remedies that may be legally available. ARTICLE XXVII TERMINATION FOR CONVENIENCE Notwithstanding Article XXVI above, Owner herein consents that the City may terminate this Agreement, in whole or in part, for convenience, as set forth in 24 CFR Part 85.44. ARTICLE XXVIII ADDITIONAL REMEDIES In the event of a default and termination for cause, the City shall 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 attorney's fees. To the extent allowed by law, the defaulting party waives its right to jury trial and its right to bring permissive counterclaims against the City in any such action. ARTICLE XXIX MAINTENANCE AND RETENTION OF RECORDS Owner agrees that it will maintain all records required pursuant to 24 CFR Part 92.508, in an orderly fashion in a readily accessible, permanent and secure 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 five years after the closeout of funds under this Agreement except as provided herein (2), (3) and (4). 13 (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 five years after the affordability period terminates; (4) Records covering displacements and acquisition must be retained for at least five years after the date by which the persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with 24 CFR Part 92.353. ARTICLE XXX LIMITATION OF LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $970,000. 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 $970,000. 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 $970,000, for any action or claim for breach of contract arising out of the performance or non- performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. ARTICLE XXXI VENUE This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. ARTICLE XXXII 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 Funds, 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 Owner the Funds 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, Owner 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 14 each to the other under the terms of this Agreement. ARTICLE XXXIII ACCESSIBILITY LAWS COMPLIANCE Owner agrees to adhere to and be governed by the following accessibility requirements: (a) Architectural Barriers Act of 1968, As Amended (42 U.S.C. 4151) and its implementing regulations at 35 CFR Part 107 -- Public buildings and conveyances financed with federal funds must be designed, constructed, or altered to provide accessibility to the physically handicapped. (b) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR Part 8 -- Prohibits discrimination in federally assisted programs on the basis of handicap and imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive federal funds. (c) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42 U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115. Owner must complete and submit the City's Disability Non-Discrimination Affidavit (Affidavit), a copy of which is attached hereto and incorporated herein as Exhibit C. In the event Owner 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 Owner 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, Owner shall not be relieved of liability to the City for damages sustained by the City by virtue of Owner's breach of the Agreement. ARTICLE XXXIV NOTICES 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: (1) City Attorney's Office and (2) Housing Coordinator If to Owner: Denis A. Russ MBCDC 1205 Drexel Ave., 2nd floor 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 written notice to the other. 15 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized official(s) on the day and date first above indicated. MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION a Florida t-for-profit corporation Authorized Signatory ATTEST: J1t- - Denis A. Russ, President Printed Name and Title of Authorized Signatory Secretary ATTEST: ~J' PtlA~ CITY OF MIAMI BEACH a Florida il corporation City Clerk Mayor F:\DDHP\$ALL\BETH\CRESPI\79CRESPI.AGR APPROVED p.s TO FORM & LANGUAGE & FOR EXECUTION 1t~ 0/~q oa. 16 EXHIBIT A SCOPE OF SERVICES SCOPE OF SERVICES 1. Name/Address of Project: The Crespi Park Apartments 7900 & 7920 Crespi Boulevard 1011 & 1023 79th Street Miami Beach, FI33141 2. Legal Description: Crespi Courts: LOT 10 BLOCK 2 OF BISCA YNE BEACH SUBDIVISION AS RECORDED IN PLA TBOOK 44, PAGE 67 OF THE PUBLIC RECORDS OF MIAMI- DADE COUNTY, FLORIDA. AND Israbian Apts.: LOTS 11 AND 12, BLOCK 2 OF BISCA YNE BEACH SUBDIVISION AS RECORDED IN PLATBOOK 44, PAGE 67 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA. 3. Building and Site Characteristics The Crespi Courts site consists of 2 - two story concrete block (CBS) buildings, containing four units each. The size of the lot is approximately 10,540 square feet. The buildings were built in 1954, and have a total square footage of approximately 8,268 square feet. The buildings are Post War Modern style. The zoning for the property is currently listed as RM 1. The building is currently operated as an apartment building with 8 two-bedroom units. The Israbian Apartments site consists of one two story concrete block (CBS) building, containing 6 one-bedroom units and 2 two-bedroom units. The site consists of two 50 x 113' lots, one of which is used for tenant parking. The size of the lots is approximately 11,300 square feet. The building was built in 1949, and has a total of 5,205 square feet. The building is Post War Modern style. The zoning for the property is currently listed as RM 1. The building is currently operated as an apartment building. The Crespi Courts site and the Israbian Apartments sites will be renamed by the Owner to "Crespi Park Apartments." 4. Upon completion of the Project, all 16 units in the Project, consisting of 1 0 two-bedroom units and 6 one-bedroom units, will be HOME-assisted and carry restricted rent and tenant income restrictions for the duration of the 15 year affordability period. 5. Proposed Elements of Construction · Installation of upgraded air conditioning system (currently wall units are present) · Upgraded electrical and plumbing systems · New roof for corner buildings, repair of roof on Israbian Interior and exterior modifications, including ramp(s) to meet ADA requirements Interior improvements to include new flooring, cabinets, appliances, paint, doors, some bathroom fixtures, some light fixtures, and smoke detectors · New windows as needed, including hurricane shutters · Landscaping and site fencing Installation of mailboxes · Improvements to parking lot · Improved and upgraded laundry facilities to be shared between buildings Improved trash enclosure 6. The following procedures must be followed, prior to the commencement of work on the project: (a) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded project. The names submitted will be checked against the monthly listing "Consolidated List of Debarred, Suspended & Ineligible Contractors and Grantees" published by the Federal Government. (b) If the Building is more than 50 years old, (1) Owner's Architect or Engineer must obtain and submit to the City a letter indicating that the plans for the project have been reviewed by the State Historic Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable to that office, and (2) must submit a copy of the 50 year re-certification for the building. (c) A set of final approved plans and specifications for the project approved by the City's Building Department must be submitted to the Housing Section of the City's Community/Economic Development Division. (d) Building permits must be obtained as required by applicable City Ordinance. Also, any other necessary permits and applicable approvals from any other governmental authorities must be obtained, if required. (e) A copy of the contract between Owner and a licensed General Contractor must be submitted to the City which includes commencement and completion dates, contract amount, scope of work, Federal Labor Standards Provisions (HUD Form 4010, if applicable), and applicable federal regulations and standards. (f) The General Contractor selected must submit evidence prior to the commencement of work, satisfactory to the City's Insurance Manager, of the following insurance coverage: 1) Liability insurance against claims arising out of accident or occurrence on the property, in a minimum amount of $1,000,000. The City of Miami Beach must be named as additional insured in the policy; and 2) Proof of worker's compensation coverage; and such other forms of insurance as the City's Risk Manager may reasonably require. (g) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the actual contract price. When the above requirements have been met, the Community/Economic Development Division and the Building Services Division will jointly issue a "Notice to Proceed" on the project. If Owner or contractor does not fully comply, or if any work commences prior to the issuance of the Notice to Proceed, then such work may, at the discretion of the City, constitute a default under this Agreement. Exception: Subject to the prior approval of the Community/Economic Development Division and the Building Services Division, emergency repairs can be undertaken on the Project. 7. Owner's General Contractor shall be responsible for compliance with all pollution and asbestos control standards of the concerned governmental agencies. It shall be the Contractor's responsibility to obtain required inspections from these agencies. 8. Federal regulations require that all tenants in housing rehabilitated with federal funds, be provided with information on the following: that the property may contain lead-based paint; of the hazards, symptoms and treatment for ingestion of lead-based paint; of the precautions to be taken; of the availability of blood level screening for children under seven years of age; and that in the event lead-based paint is found in the property, appropriate abatement procedures must be undertaken by owners. Copies of a brochure will be provided to Owner by the City. This information must be provided by Owner to each tenant, and Owner must retain evidence of having provided this notification to the tenant in a file for the life of this Agreement. 9. After the property has been rehabilitated, it must conform to the applicable codes, ordinances and statutes of the City and of Miami-Dade County, including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards. 10. Consistent with the other goals and objectives of the HOME Program, all reasonable steps shall be taken to minimize displacement as a result of the Project. If the property is occupied at the time the application is submitted, Owner must submit a tenant roll. Additionally, Owner must submit for each unit: tenant names, lease terms, duration of occupancy, rent currently paid, with an indication as to whether utilities are included, family size, family income, and any other information determined necessary by the City to assess the need for temporary relocation or permanent displacement. "Eligible" expenses will be determined in accordance with the provisions of Handbook 1378: Tenant Assistance. Relocation and Real Procerty Acquisition, issued by HUD, as amended. a. Owner must pay these expenses directly, or reimburse the tenants for their payments, and document all such expenditures carefully. Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such permanent displacement shall be borne by Owner. b. Owner agrees to send, or to permit the City or its agent to send, federally required notices to tenants in a timely manner. These notices include, but are not limited to: General Information Notice, Notice of Non-displacement and a Notice of Eligibility. Owner shall make every effort to assure that temporary accommodations provided for tenants is decent, safe and sanitary, and that other living conditions are generally acceptable. Owner will ensure that there is no increase in out-of-pocket housing expenses to the tenant. Those tenants who were in residence prior to rehabilitation, and who received a "Notice of Non-Displacement", who elect to return to the property upon completion of the rehabilitation work are referred to herein as "Returning Tenants". Owner must agree to offer a unit to the Returning Tenants on the following terms, independent of the rent restrictions detailed herein. 1) Returning Tenants must be offered the same apartment previously occupied, or a unit comparable in terms of size and amenities to the unit occupied prior to the rehabilitation. 2) Returning tenants must be offered a standard lease for at least a 12 month period at the greater of (a) the same rent being charged before the rehabilitation, or (b) 30 percent of the returning tenants average monthly gross household income, or (c) the allowable rent pursuant to governmental regulations. 3) Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following the completion of the rehabilitation work, rent charged the Returning Tenant may be increased in an amount deemed reasonable by the City, and only if the amount of such proposed increase can be justified, based on documented increases in the operating costs of the property. (4) Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted to the applicable HOME Program Rent. 11. Owner agrees that it will develop an affirmative marketing plan, with concurrence from the City, that will comply with the City's adopted affirmative marketing procedures and requirements for projects containing 5 or more HOME-assisted housing units. Owner shall implement an affirmative marketing program that provides information to, and attracts eligible persons in the housing market area to the available housing receiving assistance from HOME funds, without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital status, familial status, or age. The affirmative marketing requirements and procedures adopted by Owner shall include, but not necessarily be limited to, the following: a. Methods to promote greater choice of housing opportunities; b. Practices for marketing vacant units that will affirmatively further fair housing (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); c. Special outreach efforts to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach and advertising efforts (e.g., use of community organizations including, but not limited to: places of worship, employment centers, community centers, fair housing groups, housing counseling agencies, community development corporations, and the Housing Authority of the City of Miami Beach). The City shall provide a list of potential outreach sources to Owner; d. Maintenance of records describing actions taken to affirmatively market units and records to assess the results of these actions, including newspaper clippings of all vacant units advertised, copies of brochures, pamphlets, and articles used in advertising units, lists of community organizations used in disseminating information, records of referrals and the results of these referrals, and documentation of any other special outreach activities conducted. e. A certification that states that the Owner agrees to adhere to any corrective actions the City requires if affirmative marketing requirements are not met. 12. Project Development Schedule Closing Date - July 15, 1999 Construction Commences - August 1999 Construction Complete - February 2000 Lease-up complete - April 2000 EXHIBIT B BUDGET Crespi Park Apartments Project Budget Sources and Uses of Funds Grant -- CMB HOME Grant DCA Loan Commited Bank Loan Total Sources of Funds Acquisition Total Acquisition Cost Closing Costs Legal Costs Loan Orig. Fee/Closing Costs Surveys Appraisals Property Tax Construction Interest Permits, Impact Fees Environmental, Abatement Engineering Architectural Insurance Consultant/Inspection Svcs. Site Work / Maint. / Utilities Administrative Title Insurance Developer Overhead Project Contingency Total PreDevelopment Costs General Conditions Site Concrete, (Masonry) Metals Wood and Plastics Themal, Moisture Protection Doors and Windows Hardware Finishes Specialties Equipment (Appliances) Furnishings Special Construction Conveying Systems Mechanical (AlC, Plumbing) Electrical Overhead Profit Bond Construction Contingency Total Rehabilitation Cost Total Project Costs Project Funding Gap crespi pari< apts sand u 5/24/99 970,000 238,000 -74,825 1,282,825 730,500 730,500 6,000 2,000 5,000 1,250 3,800 7,000 3,600 5,500 4,800 4,500 4,500 9,000 3,000 2,600 4,550 3,500 50,000 28,235 148,835 31,500 40,000 12,000 19,500 11,600 24,500 22,000 2,000 35,600 o 18,500 o o o 47,000 35,000 29,920 29,920 4,450 40,000 403,490 1,282,825 o EXHIBIT C DISABILITY DISCRIMINA rlON AFFIDA vir DISABILITY NONDISCRIMINATION AFFIDAVIT CONTRACT REFERENCE NAME OF FIRM, CORPORATION, OR ORGANIZATION AUTHORIZED AGENT COMPLETING AFFIDAVIT POSITION PHONE NUMBER ( I, , being duly first sworn 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.C. 12101-12213 and 547 U.S.C. Sections 225 and 611 including Title I, Employment; Tittle 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. The Fair Housing Act as amended: 42 U.S.C. Section 3601-3631. Signature Date SUBSCRIBED AND SWORN TO (or affirmed) before me on (Date) by He/She is personally known to me or has presented (Affiant) as identification. (Type of identification) (Signature of Notary) (Serial Number) (Print or Stamp Name of Notary) (Expiration Date) Notary Public (State) Notary Seal The City of Miami Beach will not award a contract to any firm, corporation or organization that fails to complete and submit this Affidavit with the firm, corporation or organization's bid or proposal or fails to have this Affidavit on file with the City of Miami Beach. Page 1 of 1