2002-25059 Reso
RESOLUTION NO. 2002-25059
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A THIRD AMENDMENT TO THE ~OME
INVESTMENT PARTNERSHIPS PROGRAM (HOME) AGREEMENT,
DATED APRIL 12, 2000, BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING
$207,473 IN HOME PROGRAM FUNDS FROM THE HOME PROGRAM
NOTICE OF FUNDING AVAILABILITY (NOFA) FOR FISCAL YEAR
2001/2002, TOWARDS THE COST OF ACQUISITION AND
REHABILITATION OF THE PROPERTY LOCATED AT 1551
PENNSYLVANIA AVENUE TO PROVIDE TWENTY (20) RENTAL
UNITS FOR INCOME-ELIGIBLE RESIDENTS 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, on July 10, 2002, the City adopted Resolution No. 2002-24911,
authorizing a Second Amendment to the HOME Program Agreement to provide $145,087
of fiscal year 1993/94 HOME Program funds 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 $207,473 in
HOME Program funds from the HOME Program Notice of Funding Availability (NOFA) for
fiscal year 2001/2002 for the acquisition and rehabilitation of the property located at 1551
Pennsylvania Avenue; and
WHEREAS, on September 13, 2002, the City's Loan Review Committee
recommended that the City approve $207,473 in HOME Program funds from the HOME
Program Notice of Funding Availability (NOFA) for fiscal year 2001/2002 for the acquisition
and rehabilitation of the property located at 1551 Pennsylvania Avenue; and
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 Third Amendment to the HOME Investment
Partnerships Program (HOME) Agreement, dated April 12, 2000, between the City and
Miami Beach Community Development Corporation (MBCDC), providing $207,473 in
HOME Program funds from the HOME Program Notice of Funding Availability (NOFA) for
fiscal year 2001/2002, towards the cost of acquisition and rehabilitation of the property
located at 1551 Pennsylvania Avenue to provide twenty (20) rental units for income-eligible
residents in accordance with the HOME Program requirements.
PASSED AND ADOPTED THIS
,2002
ATTEST:
t=~~~~
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
,At1~ II-G~cfJ-/
CI om~ Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
lQ
Condensed Title:
A resolution providing to MBCDC: 1.) $208,777 in HOME Program funds from the HOME Program Notice
of Funding Availability (NOFA) for Fiscal Year 2001/2002, towards the cost of the acquisition and
rehabilitation of an apartment building located at 532 Michigan Avenue, Miami Beach, to provide sixteen
(16) rental units for income-eligible elderly residents; and 2.) $207,473 in HOME Program funds from the
same HOME Program NOFA towards the cost of acquisition and rehabilitation of the property located at
1551 Pennsylvania Avenue to provide twenty (20) rental units for income-eligible residents in accordance
with the HOME Proaram reauirements.
Issue:
Shall the City provide to MBCDC $208,777 in HOME Program funds from the HOME Program Notice of
Funding Availability (NOFA) for Fiscal Year 2001/2002, towards the cost of the acquisition and rehabilitation
of an apartment building located at 532 Michigan Avenue, Miami Beach, to provide sixteen (16) rental units
for income-eligible elderly residents; and 2,) $207,473 in HOME Program funds from the same HOME
Program NOFA towards the cost of acquisition and rehabilitation of the property located at 1551
Pennsylvania Avenue to provide twenty (20) rental units for income-eligible residents in accordance with
the HOME Proaram reauirements,
Item Summary/Recommendation:
On July 1, 2002, the City issued a HOME Program Notice of Funding Availability (NOFA) in the amount of
$416,250 for the acquisition and/or rehabilitation of multi-family rental buildings or scattered sites for the
purpose of providing affordable rental housing. In response to the NOFA, the City received two applications
both of them from MBCDC.
Adviso Board Recommendation:
On September 13, 2002, the Loan Review Committee (LRC) recommended that the City approve $208,777
in HOME Program funds from the HOME Program NOFA for Fiscal Year 2001/2002, towards the cost of
the acquisition and rehabilitation of an apartment building located at 532 Michigan Avenue, and $207,473
in HOME Program funds from the same HOME Program NOFA towards the cost of acquisition and
rehabilitation of the ro e located at 1551 Penns vania Avenue,
Financial Information:
Source of .. Amount . .. Account ... .. .. Approved
Funds: . .. 1 $208,777 151,5230
HOME 2 207,473 151,5230
Program 3
Funds 4
Finance Dept. I. Total. $416,250
..
,
City Clerk's Office Legislative Tracking:
I Vivian p, Guzman
SI n..()ffs:
Department Director
.
~
Manager
AGENDA ITEM C. 7 M
DATE //-13-()).
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
WNW.ci.miami-beach.f1.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: November 13, 2002
Mayor David Dermer and
Members of the City Commission
Jorge M, Gonzalez \ ./
City Manager d~~
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE: 1.) A THIRD AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT,
DATED JUNE 6, 2001, BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING
$208,777 IN HOME PROGRAM FUNDS FROM THE HOME PROGRAM
NOTICE OF FUNDING AVAILABILITY (NOFA) FOR FISCAL YEAR
2001/2002, TOWARDS THE COST OF THE ACQUISITION AND
REHABILITATION OF AN APARTMENT BUILDING, LOCATED AT 532
MICHIGAN AVENUE, MIAMI BEACH, TO PROVIDE SIXTEEN (16)
RENTAL UNITS FOR INCOME-ELIGIBLE ELDERLY RESIDENTS; AND 2.)
A THIRD AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS
PROGRAM (HOME) AGREEMENT, DATED APRIL 12, 2000, BETWEEN
THE CITY AND MBCDC, PROVIDING $207,473 IN HOME PROGRAM
FUNDS FROM THE HOME PROGRAM NOTICE OF FUNDING
AVAILABILITY (NOFA) FOR FISCAL YEAR 2001/2002, TOWARDS THE
COST OF ACQUISITION AND REHABILITATION OF THE PROPERTY
LOCATED AT 1551 PENNSYLVANIA AVENUE TO PROVIDE TWENTY
(20) RENTAL UNITS FOR INCOME-ELIGIBLE RESIDENTS IN
ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS.
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 June 6, 2001, the City Commission adopted Resolution No, 2001-24453 authorizing the
execution of a HOME Program Agreement with MBCDC, providing $328,987 of HOME
Program funds for the acquisition and rehabilitation of an apartment building, located at
532 Michigan Avenue, to provide sixteen (16) rental units for income-eligible elderly
November 13, 2002
Commission Memorandum
MBCDC: 532 Michigan Avenue and 1551 Pennsylvania Avenue, Third Amendments
Page 2
residents in accordance with the HOME Program requirements. On August 23, 2001,
MBCDC purchased the 22-unit two-story concrete and masonry structure located at 532
Michigan Avenue, Miami Beach, Subsequently, on February 20, 2002, the City
Commission adopted Resolution No, 2002-24748 authorizing a First Amendment to the
HOME Program Agreement with MBCDC, to provide $614,913 of HOME Program funds for
the acquisition and rehabilitation of the same property, On May 29, 2002, the City
Commission adopted Resolution No, 2002-24863 replacing the previously committed
$614,913 HOME Program funds from Fiscal Year 2001/2002 with $614,913 in HOME
Program funds from Fiscal Years 1992/1993 and Fiscal Years 1993/1994,
The structure was built in 1925 and is configured into 22 apartments. According to the
report from the architects, the composition of the units is ten studio units, seven one-
bedroom units, and five two-bedroom units, MBCDC is proposing to install an elevator and
to make one or more units handicap accessible as required by the Americans with
Disabilities Act. Some of the units do not have a minimum of 400 square feet as required
by Code, Therefore, MBCDC will reconfigure the units to meet minimum unit size
requirements, The resulting reconfiguration will provide 16 one-bedroom units,
Separately, 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 another building, a 20-unit apartment building at 1551 Pennsylvania
Avenue, to provide rental units for income-eligible residents, Subsequently, on June 28,
2000, the City adopted Resolution No, 2000-28343 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, On July 10, 2002, the City adopted Resolution No, 2002-24911 to provide
$145,087 of HOME Program funds for the acquisition and rehabilitation of the property,
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.
Since acquiring the building, MBCDC has obtained approval from the City's Building
Department for the renovation plans, and construction is underway, The renovation of the
building includes the following: replace wall mounted AlC units with a central H,V,A,C,
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-Iandscape entry; and provide and install security features as
necessary,
On July 1, 2002, the City issued a HOME Program Notice of Funding Availability (NOFA) in
the amount of $416,250 for the acquisition and/or rehabilitation of multi-family rental
buildings or scattered sites for the purpose of providing affordable rental housing, In
response to the NOFA, the City received two applications both of them from MBCDC,
I n accordance with the terms of the NOF A, the applications were reviewed by City staff for
completeness and compliance with the terms of the NOFA and the HOME Program
November 13, 2002
Commission Memorandum
MBCDC: 532 Michigan Avenue and 1551 Pennsylvania Avenue, Third Amendments
Page 3
requirements, On September 13, 2002, the Loan Review Committee recommended
funding for an application from MBCDC requesting $208,777 from the HOME Program
NOFA for the rehabilitation of the apartment building at 532 Michigan Avenue, The
increased developer's fee remains within 15 percent of the project cost.
Also on September 13, 2002, the Loan Review Committee (LRC) recommended funding
for an application from MBCDC requesting $207,473 from the HOME Program NOFA for
the rehabilitation of the apartment building at 1551 Pennsylvania Avenue, There is a
projected increase in construction cost to correct a structural failure in the building and
remove and replace the stucco on the outside of the building to waterproof the building,
The increased developer's fee remains within 15 percent of the project cost.
In accordance with the HOME Program regulations, MBCDC is required to provide these
rental units to income-eligible residents for a minimum period of 15 years after the
rehabilitation of the building is complete, MBCDC has offered to extend the affordability
period on these two buildings for an additional five years making the units available to
income-eligible residents for a total of 20 years,
The Administration recommends that the Mayor and City Commission authorize the Mayor
and City Clerk to execute: 1,) a Third Amendment to the HOME Investment Partnerships
Program Agreement, dated June 6,2001, between the City and Miami Beach Community
Development Corporation (MBCDC), providing $208,777 in HOME Program funds from the
HOME Program Notice of Funding Availability (NOFA) for Fiscal Year 200112002, towards
the cost of the acquisition and rehabilitation of an apartment building located at 532
Michigan Avenue, Miami Beach, to provide sixteen (16) rental units for income-eligible
elderly residents; and 2,) a Third Amendment to the HOME Investment Partnerships
Program Agreement, dated April 12, 2000, between the City and MBCDC, providing
$207,4 73 in HOME Program funds from the HOME Program Notice of Funding Availability
(NOFA) for fiscal year 2001/2002, towards the cost of acquisition and rehabilitation ofthe
property located at 1551 Pennsylvania Avenue to provide twenty (20) rental units for
income-eligible residents in accordance with the HOME Program requirements,
JMG/RCMJtb/JRlMDC/SSL
F:\NEIG\HouslnglMIGUELL\MemorandumI532 Michigan and 1551 PENN 3rd AMEND. MEMQ1.doc
THIRD AMENDMENT TO HOME PROGRAM AGREEMENT
THIS THIRD AMENDMENT TO THE AGREEMENT, entered into this IZ/'^day of Jk;('m~
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 1999/200,0 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, on July 10, 2002, the City adopted Resolution No, 2002-24911,
authorizing a Second Amendment to the HOME Program Agreement to provide $145,087 of
fiscal year 1993/94 HOME Program funds 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 -$207,473 in
HOME Program funds from the HOME Program Notice of Funding Availability (NOFA) for
fiscal year 2001/2002 for the acquisition and rehabilitation of the property located at 1551
Pennsylvania Avenue; and
WHEREAS, on September 13, 2002, the City's Loan Review Committee
recommended that the City approve $207,473 in HOME Program funds from the HOME
Program Notice of Funding Availability (NOFA) for fiscal year 2001/2002 for the acquisition
and rehabilitation of the property 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
1
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. In all references throughout the Agreement, the 15-year affordability period is replaced
by the 20-year affordability period.
2. ARTICLE II, 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 Two Hundred Fifty-Two
Thousand Five Hundred Sixty Dollars ($1,252,560) (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, $145,087 of previously
allocated fiscal year 1993/1994 CHDO set-aside funds, and $207,473 from fiscal year
2001/2002 HOME NOFA ,
3, 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 ,252,560, 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 $1,252,560, 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
$1,252,560, 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.
4, ARTICLE VI, DISBURSEMENT OF FUNDS, page 5, sentence (1) is deleted and
replaced by the following sentence:
The Funds shall be used by Owner for acquisition and rehabilitation of real property,
and related soft costs.
5. ARTICLE XXXIV, NOTICES, page 16 is hereby deleted in its entirety and amended as
follows:
2
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 and Community Development Division 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,
6. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the
revised EXHIBIT B TO THIRD AMENDMENT TO HOME PROGRAM AGREEMENT,
BUDGET, reflecting the adjustments in the HOME Program funds from the City of
Miami Beach,
7. 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 govem and control.
8. This Amendment shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto,
3
IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day
and date first above written.
ATTEST:
Secretary
ATTEST:
~rr~
City Clerk
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
~~
Roberto Dat r, esident
Authorized Signatory
F:\NEIGIHousingIRUSSELLIRESOLUTN\1551 PENN Second Amend, Agree.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
A J~ IAA,().. IL - \ \-- 6~<1'v'"'
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4
EXHIBIT B TO THIRD 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 $1,045,087
STATE HOUSING HOMELESS ASSISTANCE GRANT THROUGH MIAMI-DADE 250,000
COUNTY
FIRST MORTGAGE FINANCING 260,000
MIAMI-DADE COUNTY SURTAX INCENTIVE POOL 300,000
REQUESTED FROM CITY OF MIAMI BEACH HOME PROGRAM FUNDS 207,473
$2,062,560
USES OF FUNDS
ACQUISITION OF PROPERTY $760,000
PRE-DEVELOPMENT COSTS 187,946
REHABILITATION CONSTRUCTION 934,614
DEVELOPER'S FEE 150,000
CONSTRUCTION CONTINGENCIES 30,000
$2,062,560
5