LTC 159-2018 Response to MBCDC rent increase Article by the MiamMAM BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 150-2018
LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members sJ the City C mmission
FROM: Jimmy L. Morales, City Manage
DATE: Tuesday, March 27, 2018
SUBJECT: Response to MBCDC rent increa-l; Article by the Miami New Times
The purpose of this Letter to Commission is to provide additional information and clarification
regarding an article published March 23, 2018 by the Miami New Times regarding the Miami
Beach Community Development Corporation (MBCDC) rent increases.
In the article MBCDC Executive Director, Beatriz Cuenca-Barberio made assertions that merit
clarification such as, "In an ideal world, [...], city commissioners could vote to reduce
water rates for affordable -housing providers or ease up on certain code violations, such
as exterior paint requirements."
All affordable housing providers, including the City of Miami Beach, face many challenges in
operations and securing/maintaining funding. According to the U.S. Department of Housing and
Urban Development (HUD), affordable housing is defined as: housing for which occupant(s) are
paying no more than thirty percent of his or her income for gross housing costs, including
utilities. All affordable housing providers must abide by HUD regulations and adhere to local
code compliance in order to maintain units decent, safe and sanitary throughout the affordability
period. Whether private or non-profit, all housing providers experience costs related to
maintenance and amenities, (including water and sewer), which must be factored in the
agency's proforma. It is the housing provider's obligation to ensure tenants receive the basic
amenities related to their housing.
The City must enforce affordable housing requirements in its role as a participating jurisdiction
and as a municipality throughout the affordability period of every project. The emphasis on
uniformity and accountability in our buildings ensures safety for all of our residents. HUD has
strict requirements for affordable housing projects to ensure decent, safe, and sanitary living
conditions. As per 24 CFR part 4080, in order to meet federal, state and local housing and
occupancy codes the structure must meet Uniform Building Code, National Electrical Code,
ICBO Plumbing Code, the Uniform Mechanical Code and HUD Minimum Property Standards.
"We pay hundreds of thousands of dollars in water for all these buildings." "Wouldn't it
be great if the city acknowledged, 'Hey, this is affordable housing,' and ease our
operating burden by not raising our water costs 10 or 20 percent?"
It is also important to note that the County does not provide any utility subsidies for their
affordable / public housing properties. Effective October 9, 2017, Miami -Dade County imposed a
South Florida Water Management district (SFWMD) water restriction surcharge, for residential,
multi -family units, mixed used buildings, residential/non-residential customers using 18ccf (one
hundred cubic feet) and over this surcharge increases based on the phase of water restrictions
imposed by SFWMD Department to achieve the level of reduced water demand. The City must
carry forward any surcharges applied by the County.
As a developer of affordable housing MBCDC, has received subsidies for acquisition,
development as well as annual tax exemptions to mitigate cost for over ten years. For any
affordable housing provider- including the City- financial capacity is imperative. According to Ms.
Cuenca-Barberio, MBCDC has been operating on a recurring annual deficit in excess of
$100,000. An organization's financial capacity cannot supersede the rights of the tenants and its
commitment to maintain affordability.
JLM/KGB/MLR
l
IAMI BEACH
OFFICE OF HOUSING &
COMMUNITY SERVICES
DATE:
March 27,2018
TO:
Jimmy L. Morales, City Manager
FROM:
Maria L. Ruiz, Director -- w
SUBJECT:
LTC — response to MBCDC New Times article "With
Thousands on Waiting Lists, Miami Beach Hikes Rent at
Affordable -Housing Complex."
ROUTING:
Kathie Brooks
FOR:
Assistant City Manager
Information Only
Review and approval
1.
City Manager's Signature
Other Signature
COMMENTS:
The purpose of this Letter to Commission is to provide a response to
regarding an article published March 23, 2018 by the Miami New Times
regarding MBCDC.
Return to:
Alba Tarre ext. # 6175
Date Needed By:
ASAP