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Resolution 2021-31577 RESOLUTION NO. 2021-31577 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR FY 2021 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND FOR FY 2021 HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS, TO FUND ELIGIBLE PUBLIC SERVICES, AFFORDABLE HOUSING ACTIVITIES, AND CAPITAL IMPROVEMENT PROJECTS FROM THESE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ENTITLEMENT ALLOCATIONS, IN ACCORDANCE WITH THE PRIORITIES DELINEATED IN THE 2018-2022 CONSOLIDATED PLAN. WHEREAS,the City is an entitlement recipient of HUD formula grant programs as follows: Community Development Block Grant (CDBG) funds and HOME Investment Partnerships (HOME)funds; and WHEREAS, CDBG funds are used to provide vital public services, housing activities and • improvements to public facilities, that benefit low-to moderate-income persons; and HOME funds are used for affordable housing activities, including multi-family rentals that benefit low-income persons; and WHEREAS, the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, the issuance of a Request for Proposals (RFP) is one of the approved methods for funds distribution established in the City's Citizen Participation Plan that was previously accepted by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the Administration recommends that the Mayor and City Commission authorize the issuance of an RFP for the FY 2021 CDBG funds and an RFP for the FY 2021 HOME funds, in order to identify and fund eligible organizations who provide eligible public services, affordable housing, and capital improvement projects; and WHEREAS, HUD's allocation for CDBG funds and HOME funds has not been determined; and WHEREAS, CHDO's are affordable housing development organizations that request • certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that serve households earning up to 80% of Area Median Income (AM I), which funding requires that at least fifteen percent(15%)of HOME funds must be reserved for specific activities to be undertaken by the CHDO; and WHEREAS, HUD has issued a temporary suspension of the CHDO reservation requirement through December 31, 2021; therefore, the City Administration seeks to allocate the FY 2021 reservation to the proposed RFP award, for use by an agency with a viable project aligned with the City's Consolidated Plan; and WHEREAS, the 2018-2022 Consolidated Plan has identified the following needs: • affordable housing; • economic support activities (for very low-and moderate-income families); • youth programs; • elder programs; and • public services; and WHEREAS, the CDBG funding allocation will set aside $40,000 for the City's elderly grocery program, and an additional $40,000 for the City's new prosperity initiative, which initiative seeks to promote financial independence for Miami Beach low-to moderate-income residents including, without limitation, providing access to entitlements, job improvement (training and reducing underemployment), increasing credit worthiness and preparing eligible applicants for the City's First-Time Homeowner Program; and WHEREAS, the City Administration will review RFP submissions to ensure that projects align with the needs identified in the 2018-2022 Consolidated Plan and will evaluate project feasibility; and WHEREAS, the 2020 Annual Action Plan for federal funds is a requirement under the HUD formula grant programs, which include the CDBG and HOME Programs and must be submitted by August 15, 2021; and WHEREAS, the City will also use the results of the RFP to prepare and submit to HUD the 2021 Annual Action Plan, to be approved by the City Commission, based on activities that the City wishes to fund from the FY 2021 entitlement allocations; and WHEREAS, the Administration recommends approving the issuance of these Requests for Proposals, a copy of which is incorporated herein by reference and attached to the City Commission Memorandum that accompanies this Resolution. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the issuance of a Request for Proposals (RFP) for FY 2021 Community Development Block Grant (CDBG) funds and for FY 2021 Home Investment Partnerships (HOME) funds, to fund eligible public services, affordable housing activities, and capital improvement projects from these U.S. Department of Housing and Urban Development (HUD) entitlement allocations, in accordance with the priorities delineated in the 2018-2022 Consolidated Plan. PASSED and ADOPTED /0 day of F / -ue y , 2021. ATTEST: ., ..:2z......je_________ Dan Gelber, Mayor �/Z1..Zi Rafa E. Granado, City Clerk Via, ', , N�P�n P,s5,, ID iO=11,1'DRATED' ih W.. .Z./ .• ). APPROVED AS TO ',,', -'6,�.-= FORM & LANGUAGE & FOR EXECUTION City Attorney Date Resolutions -C7 I MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Raul J.Aguila, Interim City Manager DATE: February 10, 2021 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR ELIGIBLE PUBLIC SERVICES, HOUSING AND CAPITAL PROJECTS TO BE FUNDED FROM THE CITY OF MIAMI BEACH FY 2021/22 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS (HOME) ENTITLEMENT ALLOCATIONS FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT(HUD). RECOMMENDATION The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP responses to ensure compliance with HUD deadlines. BACKGROUND/HISTORY The City is an entitlement community designated by the U.S. Department of Housing and Urban Development (HUD) and as determined by the decennial census information on population growth lag, age of housing stock, and poverty.As an entitlement community, the City receives an annual allocation of HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five-Year Consolidated Plan, which establishes the strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented and refined by the City's annual submission of a One-Year Action Plan, which delineates the specific projects and activities funded by each year's HUD allocation. Historically, the City's CDBG funds have been used for public services, housing, and public facilities improvements,while HOME funds have been used for affordable rental housing and first-time homeownership. ANALYSIS The City's annual HUD allocations fluctuate from year to year. HUD has not yet released award amounts for the FY 2021 (October 1, 2021-September 30, 2022) CDBG and HOME programs. Therefore, as in prior years, the City will base projections on the amount received for FY 2020 (October 1, 2020 - September 30, 2021) and can adjust once HUD releases actual award amounts: I FY 2020 Page 317 of 1252 CDBG $959,072 HOME $658,774 The CDBG program supports programming that benefits low- to moderate- income persons through direct public services and capital improvements. The program has the following expenditure limitations: • Administration and Planning cap: 20% of award • Public Services Cap: 15% of award (public services programming assisting low- to moderate-income residents such as groceries for the elderly, youth services, rent assistance, homeless services, etc.) The City has funded a variety of Public Services with CDBG funding in the past including: • Elder services and community referral information (UNI DAD of Miami Beach) • Grocery delivery for the elderly(Housing and Community Services) • Rent/utility assistance as a homelessness prevention strategy (Housing and Community Services) • After school and summer camp youth programming (Boys and Girls Club of Miami — Flamingo Park) • Youth Leadership Program (Police Athletic League- Flamingo Park) • Childcare services (Little Havana Activities & Nutrition Center and Raindrop Child Care) For the past several years, the City has prioritized CDBG and HOME funds to address significant capital needs in its residential portfolio that were acquired from Miami Beach Community Development Corporation (MBCDC)with extensive repair needs. The City has also awarded the Housing Authority of the City of Miami Beach with rehabilitation funds beginning in FY 2019. The City is currently funding the following affordable capital projects: • Lottie Apartments Rehabilitation • Neptune Apartments Rehabilitation • Madeleine Village Apartments (including the seawall) rehabilitation • Coral Apartment Rehabilitation • Rebecca Towers generator replacement The HOME Program supports the creation and retention of affordable housing to benefit low- income owincome persons. The program has the following expenditure limitations: • Administration Cap— 10%of award • Community Housing Development Organization (CHDO) Cap— 15%of award CHDO's are affordable housing development organizations that request certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that serve households earning up to 80 percent of Area Median Income (AMI).At least fifteen (15)percent of HOME funds must be set aside for specific activities to be undertaken by a CHDO. However, HUD issued a temporary suspension of the CHDO reservation through December 31, 2021. The set-aside CHDO funds for FY 2021 will be allocated to the RFP award to an agency with a viable project aligned with the City's Consolidated Plan. The following needs have been identified in the 2018-2022 Consolidated Plan: Page 318 of 1252 • Affordable housing • Economic support activities (assisting very low-, low- and moderate-income families) • Youth programs • Elder programs • Public services The Administration is seeking authorization to issue a Request for Proposals (RFP) to solicit eligible affordable housing, capital, and public service projects within the City. The City will review RFP submissions to ensure that projects align with the identified needs and evaluate project feasibility and compliance with HUD rules and regulations. The issuance of an RFP is one of the approved methods for funds distribution for these funds. The table below delineates the estimated funding available for this RFP from the CDBG program. Funds will be set-aside for the Elderly Grocery Program administered by the Office of Housing and Community Services. This program has been funded by CDBG since 2015 with additional leverage funding provided through the City's General Funds. The program assisted 113 elderly Miami Beach residents with monthly grocery delivery services in the 2019/20 program year. This is a program in high demand, particularly during the coronavirus pandemic, helping the elderly practice social distancing. Funds will also be set-aside for a targeted initiative to prepare low-income households, including those residing in City-owned affordable properties, to increase household income and become homeowners. This Prosperity Initiative will reinforce the City's resilience goals while seeking to seek greater usage of affordable units as a means of providing affordable housing to more net households. This initiative will work with Miami Beach low- to moderate-income residents to provide guidance and support services to promote financial independence including access to entitlements,job improvement(training and reducing underemployment), increasing credit worthiness and preparing eligible applicants for the City's First-time Homeowner Program. CDBG Funds (estimated) CDBG Entitlement $959,072.00 City Administration (20%) $191,814.00 Public Services Cap (15%) $143,860.00 PS Set Aside for Elderly Grocery Program $40,000.00 PS Set-Aside for Prosperity Program $40,000.00 Public Services Funds Available $63,860.00 Funding Available for other projects $623,398.00 The table below delineates the estimated funding available for this RFP from the HOME program. HOME Funds (estimated) HOME Entitlement $658,888.00 City Administration (10%) $65,888.00 Funding Available $593,000.00 On December 14, 2020, the City entered into an agreement with Benevate Inc. dba Neighborly Software for a comprehensive software to improve administrative efficiency in managing the CDBG and HOME programs. The department is currently in the implementation process for the software. The attached RFPs proposals will be submitted electronically via Neighborly to reduce paper and facilitate submission. The City must submit its FY 2021 One-Year Action Plan for HUD's approval by August 15, 2021. As such, it is necessary to begin the screening process for proposed activities. The process includes: • release of the RFP; Page 319 of 1252 • review by staff to determine complete/eligible RFP submissions; • evaluation/scoring/recommendations by the Affordable Housing Advisory Committee (AHAC); • 30-day Comment Period to receive public input; City Commission approval; and, • finally, submission to HUD. HUD has not provided notification of the amount of FY 2021 funding allocations. However, based on the HUD-imposed timeline for preparation and submission of the Action Plan, the Administration recommends authorizing the City Manager to issue the attached Requests for Proposals (RFPs) for eligible activities to be funded from the City's FY 2021 entitlement allocations from HUD. The RFPs will be issued with a qualification that the award of funds is subject to the City's actual HUD funding award. SUPPORTING SURVEY DATA Results from the 2019 Resident Survey show that 79.3% of residents reported that they are satisfied with the City as a place to live. The CDBG and HOME programs provide investment in the community supporting local programs and development, thus contributing to a positive perception of the City as a great place to live. FINANCIAL INFORMATION CDBG and HOME program funds will be used for awarded proposals. CONCLUSION The release of this RFP is a critical piece to the planning process for the FY2021 Action Plan. The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP responses to ensure compliance with HUD deadlines. Applicable Area Citywide Is this a "Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Organizational Innovation - Implement City Commission goals and policies through the strategic plan and budget. Legislative Tracking Housing and Community Services ATTACHMENTS: Description Page 320 of 1252