RESOLUTION 84-17771 RESOLUTION NO. 3_4_17 7 71
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING A
PROGRAM DESCRIPTION TO BE SUBMITTED TO THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FOR APPROVAL UNDER THE NEW RENTAL
REHABILITATION PROGRAM.
WHEREAS, the City Commission of the City of Miami Beach on November 18,
1981, by Resolution No. 81-16828 approved and adopted a Policy Handbook for the
Multi-Unit Rehabilitation Program; and
WHEREAS, on August 27, 1982, the City of Miami Beach was selected as a
participant in the U.S. Department of Housing and Urban Development's Rental
Rehabilitation Program Demonstration; and
WHEREAS, from these two programs, the City has developed the capacity and
experience to implement rehabilitation programs, which are main components in the
efforts of the city to meet its housing assistance needs; and
WHEREAS, the Rental Rehabilitation Program was enacted on November 30,
1983, and is designed to assure an adequate supply of standard housing affordable to
lower income tenants; and
WHEREAS, under the Rental Rehabilitation Program, the City of Miami Beach
will receive an allocation of $335,100 for FY 1984, and as a condition for receiving the
funds the City has to prepare and submit a Program Description to HUD for its
approval.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Program Description for HUD's
Rental Rehabilitation Program which includes an amended Relocation Policy that
encompasses all rehabilitation programs, is hereby approved and adopted.
BE IT ALSO DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, that the City Manager is hereby authorized to submit the Program
Description to HUD and to act in connection with the submission of the same and to
provide additional information as may be required.
PASSED AND ADOPTED THIS 20th DAY OF JUNE, 1984.
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1. PROGRAM ACTIVITIES
Under the CDBG Program, the City has developed and implemented a Multi-Unit
Rehabilitation Program. It has been successfully tested during its two years of
operation. The concepts of the program, although developed before 1982, included
most of the goals and efforts under the HUD Demonstration Program. In fact, the
City's Rehabilitation Program and the Demonstration Program were so closely aligned
in concept and design that with only a very minimum amount of modification to the
City's program, Miami Beach was able to implement its participation in the second
round of the Demonstration.
Some of the more salient features of the City's program include:
a) The separation of the subsidy for the building from the subsidy for the
tenant;
b) The maximum effective and efficient use of public funds through proper
neighborhood selection, leveraging arrangements with private lending
institutions, and streamlined administration procedures;
c) After rehabilitation, market rents which are affordable to low-and
moderate-income tenants (within FMRs) through proper neighborhood
selection and reasonable rehabilitation construction standards.
The existing program uses the discounted interest subsidy method to write down the
capital costs of financing the rehabilitation. It presently offers fixed interest rates at
six (6%) and ten (10%) percent. The higher rate applies when refinancing of existing
debts is included.
For the Rental Rehabilitation Program, Miami Beach intends to utilize most of the
existing policies and procedures already established for the City's Rehabilitation
Program.
Changes will be made where necessary, in order to comply with the requirements of
the new program. Also, the City will analyze and may consider changes in the terms
and conditions in the method that rehabilitation assistance is provided.
Inquiries and interest in rehabilitation activities have increased substantially in the
City during the last 3-4 months and a large number of applications are expected to be
submitted in consideration for funding under the existing program. It is a realistic
assumption that some of these applications could be funded under the Rental
Rehabilitation Program.
Based on experience obtained from previous projects it can be assumed that the
amount of subsidy per unit will be in the range of $3,500 to $4,500.
Funding allocated for Miami Beach under this program for FY 1984 amounts to
$335,100. The City projects that these funds will rehabilitate 80-100 units contained
in 3 to 4 buildings.
2. NEIGHBORHOOD SELECTION
The Rental Rehabilitation Program regulations require that neighborhoods selected for
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the program meet the following conditions:
1. A median income not above 80% of the median income of the Metropolitan
Statistical Area (MSA).
2. Current rents for standard units are generally affordable to lower-income
families.
3. Rents are not likely to increase at a rate significantly greater than the
rate for rent increases that can reasonably be anticipated to occur in the
market area for the five-year period following the selection of the
neighborhood.
The exact boundaries of neighborhoods to be selected for the Rental Rehabilitation
Program are not known at the time of submission of the Program Description. The
following criteria and sources of information will be used to identify neighborhoods
which meet the present and future conditions required by the regulations:
INCOME Sc AFFORDABLE RENTS
1) 1980 Census of household income and residential mean contract rent to
identify census block groups that meet the income and affordable rent
requirements (i.e. average neighborhood rents not to exceed 30% of the
monthly median income). Neighborhood median income not above 80% of
the median income of Dade County; and
2) Above to be checked by more recent studies of rental housing rates
(Reinhold P. Wolff Economic Research, Inc., Rental Apartment Survey,
City of Miami Beach, February 1984).
NEIGHBORHOOD STABILITY
Neighborhoods meeting the above income and rental rate conditions will be further
analyzed to identify areas likely to maintain existing affordable rents for at least the
next five years. Neighborhoods will be ranked or assessed according to each factor,
with only the highest ranking neighborhoods (most stable) being selected.
1) The extent and nature of general demographic changes as established by a
comparison of 1970 to 1980 Census data. This analysis will consider
changes which have occurred in housing, income and population
characteristics. Trends established during this period will provide general
insight to the future stability of neighborhood conditions.
2) The level of building permit activity will be assessed to determine whether
a very high rate of investment has occurred within the neighborhood during
the preceding 2-3 year period.
3) Neighborhoods will be assessed to determine the spatial continuity of
demographic conditions. Because of size and continuity, neighborhoods may
be less affected by factors of change over time.
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4) The existence of area redevelopment plans and the extent of public/private
redevelopment efforts will also be considered as a neighborhood change
factor (e.g., South Shore Revitalization Plan).
All of the information necessary to complete the neighborhood analysis is readily
available and neighborhoods will be selected sufficiently far in advance of the program
implementation date.
Neighborhood boundaries as established by the Miami Beach Planning Department will
be used as a framework to begin the neighborhood analysis. However, as data based
on smaller sub-areas will be used such as census block group data, the final designated
neighborhoods may not follow the existing neighborhood boundaries and may involve
smaller areas.
3. LOWER INCOME BENEFIT
In order to ensure that at least 70% of the rental rehabilitation grant amount will be
used for the benefit of lower-income families, the following will be done:
a) Tenant Information
The applicant will be required to provide tenant income and rent
verification forms. The City will review tenant information and determine
eligibility requirements for lower-income families. It will also establish
how many families wish to remain in the building after rehabilitation. i
As a requirement to further process a proposal, the number of families
with incomes above the lower-income level and wishing to remain in the
building, must be less than 30% of the number of units after rehabilitation.
b) Marketing of Units
The applicant will be required to develop and provide a market strategy to
attract eligible lower-income persons. Initial occupancy of units after
rehabilitation must be at least 70% of lower-income families.
c) Tenant Assistance Policy
As part of a tenant assistance policy, relocation benefits will be provided
to permanently displaced lower-income families. If an eligible family
wishes to move into a vacant unit, and Section 8 assistance and/or vouchers
are not available, then a lump sum payment will be made to the tenant.
This cash payment will assist in off-setting the difference between the rent
and the tenant's level of affordability. A specific tenant assistance policy
has been developed which defines how relocation benefits will be provided.
d) Point System
Proposals which contain a higher percentage of lower-income tenants may
receive preference in the evaluation system.
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4. USE OF RENTAL REHABILITATION GRANTS FOR HOUSING FOR FAMILIES
Request for waiver of fixed 70% expenditure to rehabilitate units containing two
or more bedrooms.
The existing rental housing stock in Miami Beach is comprised of a very small
percentage of units containing two or more bedrooms. Due to this fact, the
reservation of 70% of the Rental Rehabilitation Grant for units containing two
or more bedrooms would present a problem to the implementation of the
program. It is therefore requested that this requirement be waived for the
Miami Beach Rental Rehabilitation Program.
The following list of survey results and census data indicates the extremely small
percentage and absolute number of rental units in Miami Beach containing two or
more bedrooms.
1. A 1976 survey of 808 units (of an estimated 22,789 total units) within the
area of Miami Beach between 6th and 16th Street, indicated the following
unit type distribution:
TYPE OF UNIT PERCENT NUMBER
Efficiencies 48.9 11,144
1 Bedroom 43.1 9,822
2 Bedrooms 3.9 889
3 Bedrooms 0.6 137
Hotel Rooms (considered as singles) 3.5 798
TOTAL 100% 22,790
(The area from 6th St. to 16th St. generally corresponds to the former Flamingo NSA
and is the area which has been the focus of most past and current CDBG activities. It
is expected that portions of this area will also be included as an eligible neighborhood
under the Rental Rehabilitation Program).
2. The types of newly constructed multi-family housing throughout the City
during the period 1970-1979 also reflects the long standing market demand
for smaller unit housing:
TYPE % OF TOTAL UNITS
Efficiency 11.1
1 Bedroom 66.3
1 Bedroom & Den 6.9
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2 Bedrooms 12.9
3 Bedrooms 2.8
Source: Miami Beach Economic Development Department, based on building permit
records, 1970-1979.
3. Also indicative of the preponderance of small rental unit sizes is the 1980
Census of rental household size:
RENTERS
NUMBER PERCENT
1 - Person 24,239 58.7
2 - Persons 13,103 31.7
3 - Persons 2,253 5.5
4 - Persons 1,054 2.6
5- + Over 630 1.5
The average renter household size is 1.6. The small average rental household size is
due to the high percentage of elderly residents. According to the 1980 Census, the
median age of Miami Beach residents is over 65 years.
4. Over the life of the City of Miami Beach CDBG Multi-Unit Rehabilitation
Program, the following is an overall unit type profile of buildings which
have been submitted for rehabilitation assistance:
TYPE NUMBER (BEFORE/AFTER
REHAB)*
Efficiency 279/216
1 Bedroom 85/101
2 Bedrooms 2/11
3 Bedrooms 0/0
*Proposed
5. Based on 1980 Census data provided to the City by the Department of HUD, the
City's current Three Year Housing Assistance Plan identifies the following
percentage distribution of housing need by household type:
TYPE PERCENT OF NEED
Elderly 77%
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Small Family 22%
Large Family 1%
These factors provide strong evidence of an existing rental housing stock which is
composed of primarily efficiency and one bedroom units. Overall, two or more
bedroom units probably comprise less than 5% of the housing stock. Given these
factors, it is unrealistic to establish a fixed goal of expending 70% of rental
rehabilitation funds for units containing two or more bedrooms.
It is proposed that the rule requiring a 70% expenditure of funds to rehabilitate units
containing two or more bedrooms be waived. It is also proposed that a more realistic
goal be established after marketing and survey efforts have been made to obtain
rehabilitation proposals for buildings with such units.
The following efforts will be made to solicit proposals to rehabilitate units
containing two or more bedrooms and ensure an equitable share of funds used to assist
in the provision of housing designed for occupancy by families, including large
families:
a) A request for proposals will be placed in a local newspaper specifying that a
priority will be given to proposals that call for rehabilitating buildings with units
containing two or more bedrooms.
b) Efforts will be made to identify specific buildings in need of rehabilitation that
have units containing two or more bedrooms.
c) Contacts with local property owners and developers, established through the
City's existing Multi-Unit Rehabilitation Program, will be used to communicate
the need and priority for rehabilitation proposals for buildings with units of two
or more bedrooms.
d) If a satisfactory result cannot be achieved after the above efforts have been
made, individual proposals may be evaluated to determine the feasibility of
converting existing efficiency or one bedroom units to two or more bedroom
units.
5. USE OF RENTAL REHABILITATION GRANTS FOR UNITS IN SUBSTANDARD
CONDITION THAT ARE OCCUPIED BY VERY LOW-INCOME FAMILIES
a) During the initial screening of neighborhoods to determine those areas which
meet median income requirements, neighborhoods with the greatest percentage
of very low income family households will be separately identified. Provided
other neighborhood selection criteria are met, these neighborhoods will be given
priority in the selection process.
b) In the review of proposals for rental rehabilitation funding, information will be
obtained regarding the household characteristics of buildings proposed to be
rehabilitated; if occupied by very low-income families, this factor will be
considered in the selection of proposals that best meet program objectives.
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c) It is also anticipated that efforts described in Part 2 of the Program Description,
which are aimed at obtaining proposals for buildings with units containing two or
more bedrooms, will also contribute toward the objective of rehabilitating units
occupied by very low income families.
6. SELECTION OF PROPOSALS
Under the City's Rehabilitation Program, approval and selection of proposals is made
by the Loan Review Committee. This committee, appointed by the City Commission,
is comprised of three representatives from private lending institutions and two City
representatives. Ex-officio (non-voting) members consist of a citizen respresentative
and the Community Development Director.
A selection criteria and point system for evaluating rehabilitation proposals was
developed, and takes in consideration such elements as:
a) Benefit to low- and moderate-income persons: percentage of units and
number of units made available to them;
b) Displacement or temporary relocation: negative points are given for each
relocation case;
c) Leveraging objective analysis: equity provided, private investment,
additional funding, subsidy required;
d) Average cost of major repairs per unit;
e) Impact of rehabilitation of the project on neighborhoods;
f) Historic Preservation: significance of the structure and consistency of the
proposed rehabilitation;
g) Additional objectives, such as management'and number of units with two or
more bedrooms.
Based on the above point system, information provided in the application form, and
additional documentation, each proposal is then evaluated by the Loan Review
Committee.
For the Rental Rehabilitation Program, the above selection procedure will also be
followed. New items will be incorporated into the point sytem to provide for such
items as:
a) Priority for units in substandard condition which are occupied by very low
income families;
b) Priority for rehabilitation of projects containing units of two or more
bedrooms, and using a large percentage of the subsidy amount for these
units, compared to other proposals;
c) Priority for projects proposing the highest percentage of funds to benefit
lower-income households; and
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d) Adequate maintenance and operation of rehabilitated projects.
7. FINANCIAL FEASIBILITY
Under the existing City's Rehabilitation Program, CDBG funds are used to reduce the
interest rate on a loan offered by a lending institution, to an agreed 6% or 10%
effective rate. Once a project is selected for participation in the program, the
applicant must apply to a lender for the loan and obtain a letter of commitment. Loan
closing is established by the City and the lender, at which time a loan agreement is
executed by the parties, and the interest subsidy payment is made by the City to the
lender. After closing, procedures will be followed by the lending institution, with the
City monitoring for compliance with federal regulations.
As evidence of the financial feasibility of this type of program, five (5) projects have
had loan closings with different lending institutions. In all cases, a leverage higher
than 4:1 in private funds was obtained for each dollar of public money. Since lending
instituions are allowed to follow the same underwriting criteria for these loans, a full
benefit for all the parties involved is obtained.
Existing loan leveraging arrangements have been established with those five lenders as
well as other local lenders. The City always welcomes new participating lenders who
are willing to offer loans under the terms and conditions of the program.
Therefore, by using the same interest subsidy approach for the financing of the Rental
Rehabilitation Program, the feasibility is assured. Lenders, already familiar with this
method, will be offering loans in a timely manner.
8. NEIGHBORHOOD PRESERVATION
The rehabilitation and reuse of existing private rental properties is an integral part of
neighborhood preservation. Often, rehabilitation programs did not afford governments
the flexibility needed to specifically target grant resources in neighborhoods with the
most critical housing needs.
The Rental Rehabilitation Program will achieve such by encouraging public-private
partnerships that can increase the supply of decent, affordable rental housing for
lower-income tenants, while preserving existing housing stock and revitalizing
neighborhood preservation.
The program will have a positive effect on neighborhood preservation by stimulating
cost-effective rehabilitation of substandard units thus serving as a catalyst to
encourage neighboring property owners to renovate their existing housing stock.
9. SCHEDULE FOR COMMITTING RENTAL REHABILITATION GRANT AMOUNTS
As indicated in Part 1 of the Program Description, it is projected that 80-100 units
contained in three to four buildings will be rehabilitated with FY 1984 funds.
For purposes of the schedule, it will be assumed that four projects will be selected,
each containing 20-25 units and needing one-fourth of the funds allocated, or $80,000-
$85,000 per building. The proposed schedule is:
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PROPOSED S II IBU E FOR COMMITTING
RENTAL REHABILITATION GRANT AMOUNTS
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
PROJECT A
SEL LC •••••••••••••s•• •
PROJECT B SEL LC • • •••• DCX
PROJECT C SEL LC X=CiaXI **4
•• `�
PROJECT D SEL LC XIX •• •••••• ••
SEL: Project is selected and funds are committed
LC: Loan closing with lending institution
XX: Rehabilitation takes place
The schedule anticipates that before the end of the third-quarter of the fiscal
year, 100 percent of the funds will be conmit ted.
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10. NEED FOR RENTAL HOUSING ASSISTANCE
Not applicable. (The City of Miami Beach will accept all certificates and/or
vouchers as specified by Section 511.40 of the Rental Rehabilitation Program
Regulations; up to one voucher or certificate for each $5,000 of Rental
Rehabilitation Grant received by the City).
11. STATEMENT OF POLICY OF NONDISCRIMINATION EQUAL OPPORTUNITY
AND AFFIRMATIVE MARKETING UNDER THE RENTAL REHABILITATION
PROGRAM
NONDISCRIMINATION AND EQUAL OPPORTUNITY
It shall be the policy of the City of Miami Beach to take all steps reasonable and
necessary to secure the nationwide goal of attaining equal and fair housing
opportunities. The City shall, in all cases, be in conformance with the requirements
of:
1. The Federal Fair Housing Law which makes discrimination based on race,
color, religion, sex or national origin illegal. The City shall make every
possible effort to eliminate discrimination in housing by supporting the
concerted national effort to inform the public, property owners, and
tenants of their rights and responsibilities under Title VIII of the Civil
Rights Act of 1968.
2. Executive Order 11063 which directs all departments and agencies
receiving Federal financial assistance to take all action necessary and
appropriate to prevent discrimination in housing.
3. Title VI of the Civil Rights Act of 1964 which guarantees that no person
shall on the grounds of race, color or national origin be excluded from
participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving Federal financial
assistance.
In enforcing such rules, regulations or orders against any property owner
found to be in violation thereof, the City shall refrain from extending
further aid under any federally-funded program until it is satisfied that the
affected owner will comply with the regulations stated herein.
In addition, the City shall make every possible effort to ensure that grant
assistance is available in conformity with the prohibitions against
discrimination and requirements of the Age Discrimination Act of 1975;
Section 504 of the Rehabilitation Act of 1973; Executive Order 11246; and
Section 3 of the Housing and Urban Development Act of 1968.
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Consistent under the requirements of Executive Order Nos. 11625, 12432
and 12138, the City of Miami Beach shall make every reasonable effort to
encourage the use of minority and women's business enterprises in
connection with the rehabilitation of rental properties funded through this
as well as any other federal grant source. Records shall be maintained on
the extent of participation by minority and women-owned businesses,
including owners, and shall annually assess the results of such efforts to
further aid in developing methods of encouraging the use of these
businesses.
AFFIRMATIVE MARKETING
It shall be the policy of the City of Miami Beach to administer the Rental
Rehabilitation Program and all activities relating to housing and urban development in
a manner so as to affirmatively further the effort to promote equal and fair housing
opportunities.
The City will undertake affirmative marketing activities that inform tenants and
owners about fair housing laws in an effort to foster more diverse and vital
neighborhoods, while simultaneously making available decent, affordable housing to
minorities and families of low-and moderate-income.
The City has contracted with the Community Housing Resources Board, Inc. to provide
support services to individuals in the area of fair housing practices. It is proposed that
such agreement continue with the board, which is the only local agency providing fair
housing services.
The responsibility of exercising good faith efforts to provide information and
otherwise attract eligible persons from all racial, ethnic and gender groups in the
housing market area applies to both the City of Miami Beach and property owners
receiving Federal financial assistance through the Rental Rehabilitation Program. An
assessment of such efforts shall be made annually to ensure that nondiscrimination and
equal housing opportunity is being afforded to all.
A. METHOD FOR INFORMING THE PUBLIC, OWNERS AND POTENTIAL
TENANTS ABOUT FEDERAL FAIR HOUSING LAWS
The City of Miami Beach will undertake the following affirmative
marketing activities to inform the community of the Federal fair housing
laws and of the availability of financial assistance to improve the rental
housing stock without regard to race, color, religion, sex or national origin:
1. The City shall place in a newspaper of general circulation, an
advertisement of solicitation for owners to participate in the Rental
Rehabilitation Program. This advertisement, and all advertisements
thereafter, shall include and prominently display, the official Fair
Housing and Equal Opportunity slogan or logotype.
2. The City shall prepare a press release informing property owners of
the availability of financial assistance through the Rental
Rehabilitation Program. This release shall be submitted to local
newspapers and television stations and shall display the Fair Housing
and Equal Opportunity slogan or logotype.
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3. The City shall, within a reasonable time after units in the project are
completed, and quarterly thereafter, place an announcement in the
"CD Newspage" informing the public of Federal fair housing laws and
the toll free number to call if they believe that they have been
discriminated against in housing opportunities.
4. Upon request the City shall provide informational and referral
assistance to tenants and property owners regarding fair housing
laws.
5. The City shall have available for tenants and property owners copies
of all applicable Federal fair housing laws and shall announce the
availability of such in April of each year through the "CD Newspage".
6. The City shall make available to all participating property owners a
Fair Housing Poster which provides tenants with information on fair
housing laws and a toll free number to report discrimination in
housing.
7. The City shall assure its commitment to fair housing practices by
joining in the nationwide recognition of fair housing practices and
adopting a resolution establishing April as "Fair Housing Month" and
announce such through local media sources.
B. AFFIRMATIVE MARKETING REQUIREMENTS FOR PROPERTY OWNERS
The property owner shall agree to abide by all Federal, State or Local
regulations relative to equal opportunity to all persons, without discrimination as
to race, color, creed, religion, national origin, sex, marital status, age, and
status with regard to public assistance or disability.
The owner shall take specific affirmative action to ensure equal opportunity and
fair housing at least as extensive as the following:
1. The owner shall include the official Fair Housing and Equal
Opportunity slogan or logotype in all advertisements regarding the
availability of rental units that are vacant after rehabilitation or that
later become vacant.
2. The owner shall display the Fair Housing Poster in a conspicuous
place available to tenants and applicants for occupancy so as to
affirm his/her commitment to fair housing opportunity laws.
3. The owner must certify by the signing of an "Affirmative Marketing
Agreement" that he/she agrees to exercise affirmative fair housing
marketing whenever units become vacant.
C. SPECIAL OUTREACH REQUIREMENTS FOR PROPERTY OWNERS
The owner shall take every reasonable step 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.
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The owner shall affirmatively solicit rental applications from minorities and
families of low-and moderate-income through advertising directed specifically at
the appropriate community or through those sources likely to produce eligible
persons from all racial, ethnic and gender groups.
The owner shall forward copies of the advertisement, or notice thereof,
regarding the availability of vacant rental units to special outreach centers such
as community organizations, churches, employment offices, fair housing groups
or housing counseling agencies.
Local sources for compliance with required special outreach efforts include, but
are not limited to:
1. 6th Street Community Center
2. Miami Beach Public Housing Authority
3. Community Housing Resources Board, Inc.
4. The Community Development Division, City of Miami Beach
D. RECORDS TO BE MAINTAINED
Both the City of Miami Beach and the property owner shall maintain records
which describe the efforts taken to affirmatively market rehabilitated units.
Property Owner
1. The owner shall establish and maintain a current file of all notices,
advertisements and special outreach efforts regarding the availability
of rental units which document his/her compliance with the use of
the Equal Housing Opportunity logotype or outreach requirements.
2. The owner shall maintain a current file of the names, addresses and
telephone numbers,of each rental applicant referral from a special
outreach source and of what action was taken with respect to each
individual. If such individual was a willing applicant for occupancy
and was not approved for tenancy, this shall be documented in the
file with the reason therefore, along with whatever additional actions
the owner may have taken.
City of Miami Beach
1. The City shall maintain a current file of all notices, advertisements
and information regarding affirmative marketing activities to inform
the community of the federal fair housing laws.
2. The City shall maintain records of the extent of program
participation by eligible owners from all racial, ethnic and gender
groups, including solicitations of offers for rehabilitation assistance
and the actions taken with respect to each request.
3. The City shall establish and maintain a file documenting the periodic
review and monitoring of an owner's adherence to and performance
under the nondiscrimination and affirmative marketing requirements,
an assessment of such compliance, and any corrective action taken.
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E. ASSESSMENT OF AFFIRMATIVE MARKETING EFFORTS
Compliance with these requirements shall be based upon a review of the owner's
performance in exercising good faith efforts to carry out affirmative marketing
activities, including an assessment of objectives met. In that assessment,
greater weight willbe placed on the owner's demonstrated effort to provide
rental housing opportunities to those individuals requiring special outreach
efforts.
The owner, in fulfilling his/her obligations under this policy, shall implement
specific affirmative marketing steps, at least as extensive as those prescribed
above, so as to achieve maximum results from his/her efforts to ensure equal
housing opportunity.
In the event of the owner's non-compliance with the affirmative marketing
requirements or with any of the said equal opportunity rules, regulations or
orders, the City shall, in accordance with the remedies stated herein, impose
corrective actions and sanctions such as are authorized by the applicable housing
and equal opportunity laws including but not limited to:
1. A determination of ineligibility or debarment from any further
assistance under the program until the City is satisfied that the
affected owner will comply with the requirements pursuant to the
Affirmative Marketing Policy.
12. ORGANIZATIONAL STRUCTURE
Name: City of Miami Beach
Community Development Division
Address: 1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone No. (305) 673-7260
Contact
Person(s): Shirley Taylor-Prakelt, Community Development Director
Jorge Fernandini, Housing and Rehabilitation Specialist
Alina Antelo, Community Development Specialist
13. PHA PARTICIPATION
In accordance with the requirements governing the implementation of the split-subsidy
approach to the Rental Rehabilitation Program, the City of Miami Beach and the
Miami Beach Housing Authority have entered into the attached Memorandum of
Understanding. This agreement delineates responsibilities for program
implementation, and the Housing Authority's willingness to particpate in the program
through the provision of Section 8 certificates and/or vouchers in support of the
Rental Rehabilitation Program.
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Supplemental Information - Miami Beach Housing Authority
Mr. Murray Gilman,Executive Director
% Rebecca Towers
200 Alton Rd.
Miami Beach, Fl. 33139
(305)532-6401
Contact Person Responsible for Administering the Section 8 Certificates and/or
Vouchers:
Mrs. Mildred Reale
% Rebecca Towers
200 Alton Rd.
Miami Beach, Fl. 33139
(305)532-6401
14. MAXIMUM RENTAL REHABILITATION GRANT PER UNIT
The amount of rental rehabilitation grant for any project will not exceed an average of
$5,000 per unit.
The statement made is based on local experience developed through rehabilitation
projects already completed as well as review of other proposals. In most cases, an
average subsidy of less than $4,000 per unit was needed.
Therefore, the City is not requesting that HUD approvwe or increase the subsidy level
of $5,000 per unit.
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MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF MIAMI BEACH AND THE MIAMI BEACH HOUSING
AUTHORITY FOR IMPLEMENTATION OF THE RENTAL
REHABILITATION PROGRAM
WHEREAS, the two parties to this Agreement, the City of Miami Beach
(hereinafter referred to as the "City") and the Miami Beach Housing Authority
(hereinafter referred to as the "Housing Authority") are desirous of implementing a
Rental Rehabilitation Program in the City of Miami Beach; and
WHEREAS, the City of Miami Beach has identified the need to upgrade the
existing rental housing stock through rehabilitation efforts necessary to bring the
properties up to acceptable standards; and
WHEREAS, the City and the Housing Authority have identified the rental
assistance needs of lower income individuals; and
WHEREAS, the City of Miami Beach has been notified of its eligibility to receive
$335,100 for the Rental Rehabilitation Program as well as approximately sixty-seven
(67) Section 8 certificates and/or vouchers, and both parties are desirous of
implementing this program.
NOW THEREFORE, THE TWO PARTIES TO THIS AGREEMENT HEREBY AGREE AS
FOLLOWS:
1. The City of Miami Beach through the Community Development Division, will be
responsible for the design and implementation of the Rental Rehabilitation
Program, to include such areas as:
* Program Development •
* Marketing
* Program Intake/Application Review and Screening
* Coordination with the City's "Loan Review Committee" for Rehabilitation
Projects
* Initial and On-going Inspections
* Financial Management and Disbursement
* Contract Compliance and Labor Standards
* Relocation Assistance (if required)
* Individual Project and Program Monitoring
2. The Miami Beach Housing Authority will be responsible to provide, issue,
administer, and monitor, approximately sixty-seven (67) Section 8 certificates
and/or vouchers in support of the Rental Rehabilitation Program, in accordance
with all applicable HUD requirements. The Housing Authority's responsibilities
shall include:
* Intake and assessment of the eligibility of all tenants f o r the selected
Rental Rehabilitation Project buildings, for receipt of Section 8
Certificates and/or Vouchers.
* Full responsibility for administering the receipt of such Section 8
Certificates and/or Vouchers in accordance with applicable HUD
Guidelines, to eligible tenants.
* Submission of quarterly reports to the City of Miami Beach Community
Development Division, on the disbursement of all Certificates and/or
Vouchers to Rental Rehabilitation Project tenants., to commence when the
certificates and/or vouchers are issued. Such reports shall list the number
of Certificates and/or Vouchers issued to each project site by: Name,
address, bedroom size, ethnicity, female head of household, and whether of
not the tenant is an elderly household. Reporting on the certificates and/or
vouchers after the first year of issuance, shall be annually thereafter for
up to seven (7) years.
* On-going program monitoring in accordance with the Section 8 Certificate
and/or Voucher Program guidelines.
THIS AGREEMENT ENTERED INTO THIS DAY OF 1984
ATTEST:
City Clerk
•Mr. Rob W. Parkins Mr. Murray Gilman
City Manager Executive Director
•
City of Miami Beach Miami Beach Housing Authority
CITY OF MIAMI BEACH POLICIES FOR RELOCATION PAYMENTS
AND ASSISTANCE OF TENANTS UNDER THE REHABILITATION PROGRAMS
1. PURPOSE
The purpose of this document is to provide a policy statement outlining relocation
payments and assistance available to residents that may be either temporarily
relocated or permanently displaced as a result of rehabilitation of a building under the
City's Community Development funded Multi-Unit Residential Rehabilitation Program
Rental Rehabilitation Program Demonstration, and the Rental Rehabilitation program,
and other rehabilitation and/or housing programs determined by the City to be
applicable (activities not subject to the Uniform Relocation Assistance and Real
Property Acquisition Act of 1970).
2. ACTIVITY COVERED UNDER PLAN
The following activity is covered under this plan:
Residential rehabilitation, whenever CDBG funds are paid to a private lending
institution and a borrower as an interest subsidy payment for rehabilitation of a multi-
unit building, and when it has been determined by the City that rehabilitation cannot
be reasonably undertaken without necessitating the temporary relocation or permanent
displacement of residential tenants. =.b
3. TYPES OF TENANTS COVERED UNDER PLAN(ELIGIBILITY)
The following types of residential tenants are eligible for assistance under this plan:
A. Residential Tenants Who Occupy Residential Living Units -Tenants who
have occupied a residential living unit for a continuous period of at
least 60 days prior to the date that the owner or buyer receives an
acceptable written funding commitments, from a participating lending
institution, to carry out the rehabilitation work under the City's
rehabilitation programs;and
•
B. Residential Tenants Who Occupy Non-Residential Units On An Annual
Basis - Tenants who have occupied a non-residential unit for a
continuous period of at least 60 days of a yearly lease prior to the date
that the owner or buyer receives an acceptable written funding
commitment from a participating lending institution. The rental must
be evidenced by a current executed lease between the owner and the
tenant which will be in effect during the scheduled rehabilitation
period, Exception: An eligible residential tenant who can show proof,
through rental receipts or other documents, of having occupied a non-
residential unit for a continuous period of at least 12 months of a year's
lease prior to the lender's commitment to carry out the rehabilitation
work will be considered a residential tenant covered under this plan.
(See definitions for non-residential unit).
C. Business Concerns - Business concerns shall be defined as those entities
who are legally licensed, and have been in operation for a minimum of
90 consecutive days at the site to be rehabilitated, prior to the date
that the owner or buyer receives an acceptable written funding
commitment from a participating lending institution. Any business
permanently displaced will be given actual moving expenses not to
exceed $3,000, and the business owner will be required to receive a
minimum of three estimates/written proposals from licensed moving
companies, with the contract let to the lowest estimate and with prior
approval of the CD Division. If the business owner desires a "self-
move", the payment will be based on the lowest proposal amount, with
prior approval of the CD Division. The City reserves the right to reject
all bids/proposals if it is determined that the costs are not appropriate.
4. PERSONS OR OTHER ENTITIES NOT COVERED UNDER PLAN
A. Owner-Occupants - The policies in this plan do not apply with respect
to owner-occupants. Owner-occupants who enter into rehabilitation
activities are assumed to be acting voluntarily in their best interest,
and are not eligible for relocation payments or assistance under this
plan.
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B. Tenants Who Waive Rights To Relocation Payments or Assistance- A
fully informed tenant may waive relocation assistance by filing a duly
executed waiver with the Community Development Division of the City
of Miami Beach. A fully informed tenant may also waive (his)
(her)rights to relocation payments and assistance by:
i) Refusing to file a claim for such payments within the
time period allowed;or
ii) moving from the tenant's present place of residence
without notifying the Community Development Division;
provided, the tenant has received notice from the City
advising the tenant not to move without notifying the
City.
C. Residential Tenants, Transients, or Tourists Who Occupy Non-Residen-
tial Units On Less Than An Annual Basis - They are not eligible for
relocation payments. Such persons, however, will receive appropriate
advisory services necessary to minimize hardships in adjusting to the
required permanent or temporary relocation.
D. Residential Tenants Who Are Evicted For Cause - The only acceptable
circumstances under the City's rehabilitation programs where a person
may be evicted for cause are: =1
i) The failure to pay rent, unless the failure to pay is based
upon the owner's failure to keep the premises in habitable
condition;or
ii) maintenance of a nuisance or use of the premises for illegal
purposes;or
iii) a material breach of the rental agreement;or
iv) the eviction is required by State or Local law and beyond the
control of the local government.
5. DEFINITIONS
A. Permanent Displacement - It occurs when a tenant moves from his/her
present place of occupancy in a building scheduled for residential
rehabilitation activities, and takes occupancy in a building unrelated to
the building under rehabilitation and not belonging to the rehabilitation
applicant. In addition, there must be no apparent intention on the
tenant's part to re-occupy his/her former place of occupancy.
B. Temporary Relocation - Temporary relocation occurs when a tenant,
with proper notice to and with the knowledge of the owner and the
City, voluntarily moves to and occupies another unit in a building
unrelated to the building under rehabilitation and not belonging to the
rehabilitation applicant, until work on the tenant's unit is completed
and the tenant can return to the building.
Temporary relocation does not occur when:
A residential tenant temporarily moves to another unit in the same
building or group of buildings encompassing the rehabilitated project,or
to other buildings owned by the same owner in the immediate neighbor-
hood of the rehabilitated building when the owner provides the tenant
with safe, decent and sanitary housing, at no increased rental, utility,
moving costs or reasonable out-of-pocket moving expenses during the
relocation period. Such a move may not exceed a period of 6 months.
(If the temporary period will exceed 6 months, the tenant may ask the
City to provide displacement assistance and the City will consider the
request).
C. Residential Tenant - A tenant who maintains a single housekeeping unit
regardless of the number of people in the household. A single person
can qualify as a household under this definition.
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D. Non-Residential Unft-A non-residential unit:
i) Lacks complete living, sleeping and eating facilities within
the unit, i.e.a stationary stove with at least two top burners,
refrigerator and a kitchen sink;and/or
ii) does not contain complete bathroom facilities in a separate
enclosed room accessible to, and available for the exclusive
use of the occupants of that unit only; and/or
Hi) substantially fails to meet the definition and requirements
for a dwelling unit under the City's Minimum Housing
Ordinance including floor area requirements; and
iv) is occupied on less than an annual basis.
6. SCHEDULE OF BENEFITS(RELOCATION PAYMENTS AND ASSISTANCE)
There are two schedules of benefits available to residential tenants covered under this
plan. Schedule A applies to residential tenants who earn less than 80 percent of the
median income of the community. Schedule B applies to residential tenants who earn
more than 80 percent of the median income. Both schedules are attached to this plan
as appendices.
7. GENERAL PROVISIONS APPLYING TO ALL RESIDENTIAL TENANTS COVERED
UNDER PLAN
A. Procedures For Implementing Plan: The Community Development
Division of the City of Miami Beach shall be responsible for developing
and overseeing the implementation of this plan. It will issue all
required notices, make relocation payments available to tenants and
make referrals for required services.
B. Timely Information: The tenant shall be contacted personally and in
writing, and provided information that fully explains the reason for the
displacement and the relocation assistance available to him/her.
C. Advisory Services: The tenant shall be provided appropriate advisory
services necessary to minimize hardships in adjusting to the relocation.
D. Advance Notice: Unless there is an urgent need for the property (e.g.,
substantial danger to health or safety) or the tenant is evicted for
8
cause, the tenant shall be given at least 30 days advance notice in
writing of the earliest date by"which he/she must permanently vacate
the property. Such notice shall be accompanied by appropriate
referrals to a comparable replacement dwelling.
E. Definition of a Comparable Replacement Dwelling: A comparable
replacement dwelling shall be:
i) Decent, safe and sanitary housing in conformity with local
codes and HUD's housing quality standards.
ii) Available at a monthly housing cost (rent and utilities) that
does not exceed 30 percent of the gross income of all
members of the tenant's household who are 18 years of age or
older.
In an area that is not subject to unreasonable adverse
environmental conditions; is not generally less desirable than
the location of the displaced person's dwelling with respect to
public utilities, commercial and public facilities; and is
reasonably accessible to the person's place of employment (or
to sources of employment, if the person is unemployed, but
seeking work).
iv) Functionally equivalent to and substantially the same as the
vacated unit with respect to the number of rooms, area of
living space and amenities.
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F. Automatic Eligibility for Relocation cue: If Block Grant funds
are released for a project, and any of the commitments to a tenant
under the preceding sections are not met, the tenant shall automatical-
ly be eligible for the full amount of relocation payments and other
relocation assstance that is available to displaced tenants under this
plan. The City shall immediately acknowledge this right by issuing the
tenant a written notice. If the City does not issue the written notice,
the tenant must file an appeal with the City within three (3) months
after his permanent move from the property.
G. Payment by City is Final: Once a relocation payment has been paid to
a displaced tenant in accordance with this plan (subject to the tenant's
right to appeal the amount of the payment), that tenant will not be
entitled to any further relocation payments.
H. Unique Displaced Tenant Situations: Such situations will be determined
by the Community Development Division staff based on the general
intent of the Uniform Relocation Act.
S. GRIEVANCE PROCEDURES
A. Right of Appeal - Any claimant(s) who believes they have been
aggrieved by the failure of the relocation staff of the City of Miami
Beach CDBG Program to receive payment,or determined the amount of
such payment as provided by this policy, may file a grievance with the
City of Miami Beach Community Development Division Director.
B. Request for Community Development Review - Prior to filing a written
request for review, claimant(s) will be provided with an opportunity to
make an oral presentation to the City. Such a presentation will be
made to the Director of the Department of Community Affairs/Human
Services or his/her designee, no later than 1.1 days from the date of the
claimant(s) request for review. Claimant(s) may, furthermore, be
accompanied by an advisor, attorney or other representative at the
time of their oral presentation. However, the rights to an oral
presentation shall be available no more than ninety (90) days after the
closeout of project in question.
The claimant(s) may elect to submit a written request for review. The
same time constraints apply as with the right to oral presentation. If
the claimant is unable to prepare the written presentation, assistance
will be provided by the City's staff.
C. Final Review -The City Manager of the City of Miami Beach shall have
the right to review any relocation grievance/claim, and make a final
determination regarding equitable treatment of the client.
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SCHEDULE A
RE MENTS FOR PROTECTION OF RESIDENTIAL TENANTS
1. PERSONS COVERED UNDER PLAN
These requirements (Schedule A) apply only to eligible residential tenants who earn
less than 80 percent of the median income and may be either permanently displaced or
temporarily relocated as a direct result of the activity covered under this plan.
2. RESIDENTIAL TENANTS PERMANENTLY DISPLACED
Each residential tenant who earns less than 80 percent of the median income of the
community, and who is required to permanently move as a direct result of a project
assisted under the City's rehabilitation program, shall be entitled to assistance in
accordance with the following policies:
A. Moving Expenses - The tenant shall be reimbursed for the reasonable -
cost of his/her moving and related expenses. The tenant will have
the option of selecting a flat$250.00 payment for an unfurnished unit
and $175.00 for a furnished
unit, or a payment based on actual
documented moving expenses incurred and paid, or obligated to, a
licensed moving company not to exceed $500.00. However, if the
moving costs exceed $250.00 the tenant must receive competitive
estimates from at least three professional licensed moving
companies, with the contract let to the lowest estimating company,
and with prior approval of the CD Division.
1
B. Replacement Housing Assistance - No tenant earning less than 80
percent of median income shall be required to move unless he/she has
been given a reasonable choice of opportunities to lease and move to
a comparable replacement dwelling.
1. Section 8 Assistance - Where possible, eligible tenants will be
offered a Section 8 Existing Housing Certificate of Family •
Participation. The Certificate will reduce the monthly housing
cost (rent and utilities) to these tenants to 30 percent of their
adjusted income. Accordingly, those who receive a Certificate
' and a reasonable choice of opportunities to move to a
comparable replacement dwelling that is available from an
owner willing to participate in the program, will not be entitled
to a cash replacement housing payment. (see(2)below)
2. Cash Assistance - Tenants who do not receive Section 8
assistance and cannot afford comparable replacement housing
(within 30 percent of gross income), shall be entitled to a lump
sum payment computed in the following manner: (The payment
may be used to rent or buy a replacement dwelling).
i) Monthly rent plus utility costs at actual
replacement dwelling (or amount at available,
comparable replacement dwelling, if less costly)
ii) Thirty (30) percent of monthly gross income of all
members of the tenant household who are 18 years
or older
iii) Line(1) minus line(2)
iv) Twenty-four (24) times amount on Line 3 or $1,000
whichever is less
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3. RESIDENTIAL TENANTS NOT REQUIRED TO PERMANENTLY RELOCATE
Any residential tenant with a gross income less than 80 percent of the median income
who is not required to move permanently in order to carry out rehabilitation of the
building will be given an opportunity to remain in the building following rehabilitation
with the following exceptions:
- a tenant that is evicted for cause and,
- a tenant that cannot remain in the building because an appropriate
sized unit for the family composition will not be available for the
tenant following rehabilitation.
The tenant may remain in occupancy by one of the following methods:
A. If the tenant is eligible for a Section 8 Existing Housing Certificate
and the assistance is available, the tenant may be issued a
Certificate of Family Participation and may continue in occupancy
subject to the conditions of that program. If the tenant accepts the
Certificate and makes arrangements with the owner to continue in
occupancy following rehabilitation, the tenant will not be entitled to
any other relocation payments under this plan unless the tenant must
temporarily relocate during the construction period.
'
B. If the tenant is not
eligible for a Section 8 Certificate,or refuses the
Section 8 assistance or the assistance is not available, and the tenant
wishes to remain in occupancy following rehabilitation of the
building, the tenant is responsible for negotiating with the owner the
rental cost for the rehabilitated unit.
However, if the tenant is not allowed to continue in occupancy for
any reason except cause, or the tenant voluntarily decides not to
continue in occupancy,'the tenant may be considered a residential
tenant to be permanently relocated (displaced) and be eligible for the
relocation payments and assistance as described in the earlier section
of this schedule. •
C. Temporary Relocation Housing. If temporary relocation is required
in order to carry out the rehabilitation, the tenant shall be
reimbursed for any increase in rent and utility costs in the temporary
unit (the utility cost increase may be estimated), incurred in
connection with the move. The housing offered for the temporary
period shall be decent, safe and sanitary. If the temporary period
will,exceed 6 months, the tenant may ask the City to provide
permanent relocation assistance and the City will consider the
request.
D. Moving Expenses. If temporary relocation is required,the tenant will
be reimbursed for all reasonable out-of-pocket moving expenses. If
• the tenant must move to another unit in the same building or another
building owned by the owner, the owner is responsible for assisting
the tenant in the move and must reimburse the tenant for all
reasonable out-of-pocket moving expenses.
4. PRIORITY USE OF SECTION 8 CERTIFICATES IN LIEU OF CASH ASSISTANCE
In determining which tenants will have preference over other tenants for allocation of
Section 8 Certificates, eligible tenants will be considered for assistance in the
following order of priority:
A. Tenants who earn less than 50 percent of the median income of the
City of Miami Beach;and
B. Tenants who earn more than 50 percent but less than 80 percent of
the median income.
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SCHEDULE B
RE• 1* ' ' FOR PROTECTION OF RESIDENTIAL TENANTS
4 �1 i.l re '17 -Tf $O%OF THE 1- INCO. ►-
1. PERSONS COVERED UNDER PLAN
These requirements (Schedule B) aply to residential tenants who earn more than 80
percent of the median income and may be either prermanently displaced or
temporarily relocated as a direct result of the activity covered under this plan.
2. RESIDENTIAL TENANTS NOT REQUIRED TO PERMANENTLY RELOCATE
Each residential tenant who earns more than 80 percent of the median income will be
given an opportunity to remain in the building following rehabilitation. The only
exception will be those tenants evicted for cause, and those tenants that cannot re-
occupy the building because of overcrowding of the unit.
The owner will offer to lease to the tenant (for at least one year), a comparable
replacement dwelling in the rehabilitated building. In this case, the 30 percent of
gross income limitation,will not apply and no rental assistance will be provided.
However, if the tenant voluntarily decides not to continue in occupancy, he/she may
be considered a residential tenant to be permanently displaced and be eligible for the
moving expenses payment as described in Schedue A, Section 2A.
3. TEMPORARY RELOCATION HOUSING AND MOVING EXPENSES
The rules indicated in Schedule A, Sections 3C and 3D also apply to residential tenants
who earn more than 80 percent of the median income, and are required to temporarily
relocate as a result of an activity covered under this plan.
Revised
6/11/84
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ORIGINAL
RESOLUTION NO. 84-17771
(Approving and adopting a program descript-
ion to be submitted to the U.S. Department
of Housing and Urban Development for
approval under the new Rental Rehabilita-
tion Program)
J1,
1