2003-25259 ResoRESOLUTION NO. 2003-25259
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
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
PROVIDING $i,007,473 OF HOME PROGRAM FUNDS FROM FISCAL
YEAR 2001/02 AND FISCAL YEAR 2002~03 PREVIOUSLY COMMITTED
TO MBCDC FOR THE ACQUISITION AND REHABILITATION OF THE
WESTCHESTER APARTMENTS, LOCATED AT 5i6 i5TM STREET, MIAMI
BEACH, TO PROVIDE 24 RENTAL UNITS FOR INCOME-ELIGIBLE
PARTICIPANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS; FURTHER, APPROVING A ONE-TIME ONLY
ASSIGNMENT OF THIS AGREEMENT TO MBCDC: WESTCHESTER
APARTMENTS, LLC, A NOT-FOR-PROFIT ENTITY TO BE CREATED BY
MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE PROPERTY
LOCATED AT 516 iSTM STREET, AND UNDER THIS AGREEMENT.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department
of Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funds
through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and
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 (U.S. 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, 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 a
designated CHDO; and
WHEREAS, on July 18, 2001, the City Commission approved Resolution No. 2001-
24517 which adopted the City of Miami Beach One-Year Action Plan for Federal Funds
Fiscal Year 2001/2002 allocating $800,000 HOME Investment Partnerships (HOME)
Program funds to Miami Beach Community Development Corporation (MBCDC) of which
$207,473 remains available for MBCDC to commit to a project; and
WHEREAS, on July 31,2002, the City Commission approved Resolution No. 2002-
24948 which adopted the City of Miami Beach One-Year Action Plan for Federal Funds
Fiscal Year 2002/2003, which allocated $800,000 HOME Program funds to MBCDC; and
WHEREAS, Owner has submitted a request to the City to utilize $1,007,473 of the
previously allocated fiscal year 2001/2002 and fiscal year 2002/2003 CHDO funds for a
CHDO project to acquire and rehabilitate the apartment building, located at 516 15th
Street, Miami Beach; and
WHEREAS, on May 30, 2003, the Loan Review Committee reviewed and
recommended approval by the City Commission for MBCDC to utilize $1,007,473 HOME
Program funds previously allocated to MBCDC to acquire and rehabilitate the Westchester
Apartments ($207,473 from FY 01/02 and the $800,000 from FY 02/03); and
WHEREAS, Owner intends to create a not-for-profit entity which will assume all
interest and title to the property located at 516 15th Street 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: Westchester Apartments, LLC; 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 the attached HOME Investment Partnerships (HOME)
Program agreement with the Miami Beach Community Development Corporation (MBCDC)
providing $1,007,473 of HOME Program funds from fiscal year 2001/02 and fiscal year
2002/03 previously committed to MBCDC for the acquisition and rehabilitation of the
Westchester Apartments, located at 516 15th Street, Miami Beach, to provide 24 rental
units for income-eligible participants in accordance with the HOME Program requirements;
further, approving a one-time only assignment of this agreement to MBCDC: Westchester
Apartments, LLC, a not-for-profit entity tp be created by MBCDC as a successor in interest
in title to the property located at 516 15"~ Street, and under this Agreement.
PASSED AND ADOPTED THIS 2nd DAY OF Jul7 ,2003
ATTEST:
(~ITY CLERK
WESTCHESTER APARTMENTS_RESOLUTiON.DOC
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
-' ICit~ AffO~'~' Date
CrlY OF MIAMI BEACH
COIVMISSlON ITEM SUMMARY
Condensed Title:
A resolution authorizing the City to enter into a HOME Investment Partnerships Agreement with the Miami
Beach Community Development Corporation (MBCDC) to provide $1,007,473 HOME Program funds
($207,473 from FY 01/02 and the $800,000 from FY 02/03) previously allocated to MBCDC, toward the cost
of acquisition and rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24
rental units for income-eli~]ible participants in accordance with the HOME Pro~lram requirements.
Issue:
IShall the City enter into a HOME Program Agreement with MBCDC which provides from currently allocated
funds, $1,007,473 HOME Program funds ($207,473 from FY 01/02 and the $800,000 from FY 02/03)
toward the cost of acquisition and rehabilitation of the Westchester Apartments, located at 516 15th Street?
Item Summary/Recommendation:
IOn May 1, 2003, MBCDC submitted a request to the City to utilize $1,007,473 HOME Program funds
($207,473 from FY 01/02 and the $800,000 from FY 02/03) previously allocated to MBCDC, toward the cost
of acquisition and rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24
rental units for income-eli~]ible participants in accordance with the HOME Pro~lram requirements.
Advisory Board Recommendation:
On May 30, 2003, the Loan Review Committee (LRC) reviewed and recommended approval by the City
Commission for MBCDC to utilize $1,007,473 HOME Program funds ($207,473 from FY 01/02 and the
$800,000 from FY 02/03) previously allocated to MBCDC, toward the cost of acquisition and rehabilitation of
the Westchester Apartments, located at 516 15~h Street to provide 24 rental units for income-eligible
participants in accordance with the HOME Program requirements.
Financial Information:
Source of Amount Account Approved
Funds: I $1,007,473 151.5230 & 151.5231
2
HOME 3
!Program
~ 4
Finance Dept. Total $1,007,473
City Clerk's Office Legislative Tracking:
I Vivian P. Guzm~n
Sign-Offs:
Department Director
[.,.Manager
__~_~ager
T:~AGEN DA~.003~jul0203~regular~Westchester Apartments_Summary.doc
^.E.DA ,TEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: July 2, 2003
Members of the City Commission
Jorge M. Gonzalez
City Manager ~
A RESOLUTION OF THE MAYOR AND CITYCOMMISSION- OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
PROVIDING $t,007,473 OF HOME PROGRAM FUNDS FROM FISCAL
YEAR 2001102 AND FISCAL YEAR 2002103 PREVIOUSLY COMMITTED
TO MBCDC, FOR THE ACQUISITION AND REHABILITATION OF THE
WESTCHESTER APARTMENTS, LOCATED AT 516 15TM STREET, MIAMI
BEACH, TO PROVIDE 24 RENTAL UNITS FOR INCOME-ELIGIBLE
PARTICIPANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS; FURTHER, APPROVING A ONE-TIME ONLY
ASSIGNMENT OF THIS AGREEMENT TO MBCDC: WESTCHESTER
APARTMENTS, LLC, A NOT-FOR-PROFIT ENTITY TO BE CREATED BY
MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE PROPERTY
LOCATED AT 516 15TM STREET, AND UNDER THIS AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On July 18, 2001, the City Commission approved Resolution No. 2001-24517, which
adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year
2001/2002. The One-Year Action Plan allocated $800,000 HOME Investment Partnerships
(HOME) Program funds to Miami Beach Community Development Corporation (MBCDC).
Of the $800,000 allocated, $592,527 was utilized by MBCDC for the purchase and
rehabilitation of two other properties located at 532 Michigan Avenue and 1551
Pennsylvania Avenue. The balance of $207,473 remains available for MBCDC to commit
to a project.
On July 31, 2002, the City Commission approved Resolution No. 2002-24948, which
adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year
200212003, which allocated $800,000 HOME Program funds to MBCDC. These funds
were allocated to MBCDC as the City's designated Community Housing Development
Organization (CHDO) to be utilized for eligible projects to be sponsored, developed, or
owned by MBCDC. These funds may be used for the acquisition and rehabilitation of
affordable rental housing or other eligible activities and subject to review by the Loan
Review Committee.
MBCDC has entered into a contract in the amount of $1,212,000 to purchase the
Westchester Apartments located at 516 15th Street, Miami Beach. On May 1, 2003,
MBCDC submitted a request to the City to utilize $1,007,473 HOME Program funds
previously allocated to MBCDC to acquire and rehabilitate the Westchester Apartments
($207,473 from FY 01/02 and the $800,000 from FY 02/03).
In addition, MBCDC is applying to the Miami-Dade County Documentary Surtax Program
for funding in the amount of $500,000. These county funds are to be available by January
1,2004. MBCDC is applying to the City of Miami Housing Opportunities for People Living
with Aids (HOPWA) Program funds in the amount of $600,000 which will be made
available by October 1, 2003. Private financing is also being sought to facilitate this
project. The total cost of project is estimated at $2,741,889.
The property contains a three-story Mediterranean revival structure built in 1926 consisting
of approximately 10,420 square feet. The building currently is configured into 30
apartments of which six are one-bedroom units and 24 are efficiency units. According to
the report from the architect, Arthur J. Marcus Architect P.A., the 24 efficiency units are to
be reconfigured into 18 larger efficiency units to comply with the City's average square foot
planning and zoning requirement for residential units. Therefore, the resulting
reconfiguration will be approximately 6 one-bedroom apartment units and 18 efficiency
units. The units will be rented to income-eligible participants qualifying under the HOME
Program requirements.
The proposed scope of work, based on a preliminary evaluation, includes the following:
reconstruction of the front porch with side wing walls and historic fa(;ade renovation, repairs
of spalled concrete, roof repairs and reconstruction of fire damaged roof area, new
windows and doors, exterior paint, repair and replace deteriorated wood structural
members, new non-load bearing construction with new mechanical, electrical, plumbing
and fire sprinkler systems. In order to comply with ADA requirements, MBCDC is planning
to request a waiver for the accessibility ramps because of insufficient space. However,
MBCDC will comply with all other ADA requirements. The building is vacant and no
tenants will be relocated.
On May 30, 2003, the Loan Review Committee reviewed and recommended approval by
the City Commission for MBCDC to utilize $1,007,473 HOME Program funds previously
allocated to MBCDC)to acquire and rehabilitate the Westchester Apartments ($207,473
from FY 01/02 and the $800,000 from FY 02/03).
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 $1,007,473 of HOME Program funds from fiscal year 2001/02 and fiscal year
2002/03 previously committed to MBCDC, for the acquisition and rehabilitation of the
Westchester Apartments, located at 516 15th Street, Miami Beach, to provide 24 rental
units for income-eligible participants in accordance with the HOME Program requirements;
further, approving a one-time only assignment of this agreement to MBCDC: Westchester
Apartments, LLC, a not-for-profit entity ttoh be created by MBCDC as a successor in interest
in title to the property located at 516 15 Street, and under this Agreement.
VPGIJRIMDCISSL
T:~AGENDA~.003\jul0203~regular~Westchester Apartments_Commission Memo.doc
HOME PROGRAM AGREEMENT
THIS AGREEMENT, entered into this 2nd day of July, 2003, 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 945 Pennsylvania 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 July 18, 2001, the City Commission approved Resolution No. 2001-24517
which adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year
2001/2002 allocating $800,000 HOME Investment Partnerships (HOME) Program funds to Miami
Beach Community Development Corporation (MBCDC) of which $207,473 remains available for
MBCDC to commit to a project; and
WHEREAS, on July 31,2002, the City Commission approved Resolution No. 2002-24948
which adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year
2002/2003, which allocated $800,000 HOME Program funds to MBCDC; and
WHEREAS, Owner has submitted a request to the City to utilize $1,007,473 of the
previously allocated fiscal year 2001/2002 and fiscal year 2002/2003 CHDO funds for a CHDO
project to acquire and rehabilitate the apartment building, located at 516 15th Street, Miami Beach;
and
WHEREAS, on May 30, 2003, the Loan Review Committee reviewed and recommended
approval by the City Commission for MBCDC to utilize $1,007,473 HOME Program funds
previously allocated to MBCDC to acquire and rehabilitate the Westchester Apartments ($207,473
from FY 01/02 and the $800,000 from FY 02/03); 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 property located at 516 15th Street 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: Westchester Apartments, LLC; and
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 II
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 conditional grant of HOME Program funds to Owner in the
amount of One Million Seven Thousand Four Hundred Seventy-Three Dollars ($1,007,473) (Funds)
from previously allocated fiscal year fiscal year 2001/2002 and fiscal year 2002/2003 HOME
Program CHDO.
The Funds will be utilized by Owner for a CHDO project that provides for the acquisition,
rehabilitation and operation of the building located at 516 150` Street, Miami Beach, that will provide
a minimum of 24 rental units for income qualified persons. Owner will acquire and rehabilitate the
building 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.
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. The affordability requirements apply without regard to the
term of any loan or mortgage or the transfer of ownership. They must be imposed by deed
restrictions, covenants nmning with the land, or other mechanisms approved by HUD, except that the
affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure.
(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 (i.e., persons whose income is within specific income levels set forth by HUD).
(f) Income Targeting. Owner shall maintain written documentation that conclusively
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.
(g) 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.
(j) 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 affimiatively 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.
(1) 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 CHDO, the CHDO 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 CHDO, agrees that it will fimction 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 CHDO 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.
ARTICLE VI
DISBURSEMENT OF FUNDS
(1) The Funds shall be used by Owner for acquisition of real property.
(2) Any payment due under the te~ms of this Agreement maybe 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.
(3) No payments will be made without evidence of appropriate insurance required by this
Agreement. Such evidence must be on file with the City.
(4) 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 womeffs business enterprises, to the maximum extent possible, in
connection with HOME-funded activities.
(c) Owner agrees to comply with the requirements of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (LIRA) (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 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 -- 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 fi.om 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.
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
TERMINATION
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 portion(s) 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(0(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.
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 judgments 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: If the floor grade of the first level of the building is determined to be below
the base floodplain elevation required by the Federal Emergency Management Agency (FEMA) of 8
feet above NGVD, 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.
ARTICLE XIV
REPORTS
(1) Progress Reports. 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 31 st 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-year 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
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 ora 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
l0
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 temps 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.
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 Housing and
Community Development Division, 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 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 assigranent 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.
12
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. The affordability requirements apply without
regard to the term of anY loan or mortgage or the transfer of ownership. They must be imposed by
deed restrictions, covenants running with the land, or other mechanisms approved by HUD, except
that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure.
(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.
13
(j) 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.
(1) 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 temfination 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 Miami-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.
14
(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).
(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 $1,007,473. 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 $1,007,473.
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 $1,007,473,
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 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 detemfine 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 and Community Development Division Director
If to Owner:
Roberto Datorre
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 written notice to the other.
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 not-for-profit corporation
ATTEST:
Authorized Signatory
Printed Name and Title
of Authorized Signatory
ATTEST:
City Clerk
ilT~BcoErpAoCratHion
Mawr
APPROVED A.S TO
FORM & LANGUAGE
& FOR EXECUTION
Cil~-Attomey~ Date
18
EXHIBIT A
SCOPE OF SERVICES
SCOPE OF SERVICES
1. Address of Project:
516 15th Street
Miami Beach, F1 33139
2. Legal Description:
Lot 2, Block 74, of Lincoln Sub, according to the Plat thereof, recorded in Plat Book 9,
Page 69, of the public Records of Miami-Dade County, Florida.
3. Building and Site Characteristics
MBCDC has entered into a Contract for Sale and Purchase in the amount of $1,212,000 for a vacant apartment
building located at 516 15th Street, Miami Beach. The 3-story, 30-unit building is to be reconfigured and
rehabilitated to provide a minimum of 24 units to be occupied by elderly persons qualified under the HOME
Program. The building, constructed in 1926, has been designated as historic and is located two blocks south of
Lincoln Road. The existing 30 apartments consist of 24 studio units, and six one-bedroom units. According to
the survey of the property, the total area of the building is approximately 10,420 square feet. Once the
reconfiguration and rehabilitation of the building is completed, the area of each unit will exceed the minimum
City requirement of 400 square feet. MBCDC is proposing to reconfigure the building and will provide a
minimum of 24 units. The actual number of units to be retained will be determined during the architect's
design of the rehabilitation work.
MBCDC has obtained site control and proceeded to have the facility inspected by a structural engineer. A
Phase 1 Environment Review will be conducted to determine possible petroleum product contamination, and
the presence of asbestos or lead paint. As a requirement of funding, the Owner will mitigate any hazardous
conditions identified in the Phase 1 report. The Owner has ordered an appraisal.
4. Upon completion of the Project, all 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
The proposed scope of work, based on a preliminary evaluation, includes the following: includes the following:
reconstruction of the front porch with side wing walls and historic facade renovation, repairs of spalled
concrete, roof repairs and reconstruction of fire damaged roof area, new windows and doors, exterior paint,
repair and replace deteriorated wood structural members, new non-load bearing construction with new
mechanical, electrical, plumbing and fire sprinkler systems. In order to comply with ADA requirements,
MBCDC is planning to request a waiver for the accessibility ramps because of insufficient space. However,
MBCDC will comply with all other ADA requirements. The building is vacant and no tenants will be
relocated.
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.
Co) Since the Building is more than 50 years old, Owner's Architect or Engineer (1) 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 and Community Development Division of the City's
Neighborhood Services Department.
(d) Building permits must be obtained as required by applicable City Ordinance. Also, any other
necessary permits and applicable approvals fi.om any other govemmental 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 Housing and Community Development Division and the
Building Department 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 Housing and Community Development Division and
the Building Department, 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 fi.om 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 Owner. Copies of a brochure will be provided to the
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. 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
commemial 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.
11. Project Development Schedule
Closing Date
Commence Construction
Complete Construction
Lease-up
August 2003
September 2003
September 2004
October 2004
EXHIBIT B
BUDGET
SOURCES AND USES OF FUNDS
516 15th STREET
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH (CHDO SET ASIDE FY 2001 & 2002)
CITY OF MIAMI BEACH (CHDO SET ASIDE FY 2003)
HOUSING OPPORTUNITIES WITH PEOPLE WITH AIDS (HOWPA)
MIAMI-DADE COUNTY
BANK FINANCING
USES OF FUNDS
ACQUISITION OF PROPERTY
REHABILITATION
PRE-DEVELOPMENT COSTS
DEVELOPER' S FEE
$1,007,473
450,000
600,000
500,000
184,416
$2,741,889
$1,212,000
1,085,700
269,189
175~000
$2,741,889
EXHIBIT C
DISABILITY DISCRIMINATION AFFIDAVIT
ACKNOWLEDGEMENT OF DISABILITY NONDISCRIMINATION AFFIDAVIT
CONTRACT REFERENCE HOME PROGRAM: 516 15th STREET, MIAMI BEACH, FLORIDA, 33139
NAME OF FIRM, CORPORATION, OR ORGANIZATION:
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
AUTHORIZED AGENT COMPLETING AFFIDAVIT
POSITION
PHONE NUMBER ~ 6 ~ oOal O
· being duly first sworn state:
That the above named form, 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 HI, 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.
Signatut~ ~'- -
SUBSCRIBED AND SWORN TO (or affirmed) before me on
presented
/~'O~'-ro
(Affiant)
(Type of identification)
~v~]7 7~00~ by
(Date)
· He/She is personally known to me or has
asidentification.
(Serial Number)
(Print or Stamp Name of Notary) (Expiration Date)//'~O/° /
[ OFFICIAL NCYrARY SEAL
Nota~
Public
.(St Nomw Seal [ LIa'~O~LL~NA~
~ko~ d~ate) [~v mmH~ ~TE OF ~mA
[ COMM~ION NO. C~
~ MY COMMI~IO~p.~ ~aa, fails to
The CiW of Miami Beach will not award a con~act to any .......... v ............~
complete and submit this Affidavit with the tim, co~oration or organization's bid or proposal or fails to
have this Affidavit on file with the CiW of Miami Beach.
Page 1 of 1