2003-25430 Reso
RESOLUTION NUMBER 2003-25430
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
AND ADOPTING REVISED GUIDELINES FOR THE CITY OF
MIAMI BEACH MULTI-FAMILY HOUSING REHABILITATION
PROGRAM.
WHEREAS, on September 27, 1995, the City Commission approved revised
Guidelines for the Multi-Family Housing Rehabilitation Program by Resolution Number 95-
21728; and
WHEREAS, on July 16, 1997, the City Commission approved the current Guidelines
for the Multi-Family Housing Rehabilitation Program by Resolution Number 97-22483; and
WHEREAS, on April 19, 2002, the Loan Review Committee recommended revisions
to the current Guidelines, and that the revised Guidelines be forwarded to the Mayor and
City Commission for referral to the City's Land Use and Development Committee for review
and revision; and
WHEREAS, on February 10, 2003, the City's Land Use and Development
Committee reviewed, recommended, and forwarded the revised Multi-Family Housing
Rehabilitation Program Guidelines to the City Commission for approval; and
WHEREAS, on November 25, 2003, the Neighborhoods Committee reviewed and
forwarded the Guidelines to the City Commission for approval; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the revised Guidelines
for the City Of Miami Beach Multi-Family Housing Rehabilitation Program are hereby
approved and adopted.
PASSED AND ADOPTED THIS 10th DAY OF December
,2003.
~tJ~
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
ATTEST:
T:\AGENDA\2003\apr3003\consent\Multi-Family Housing Rehabilitation Guidelines 2002 - Reso.doc
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
lD
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and adopting
revised Guidelines for the City of Miami Beach Multi-Family Housing Rehabilitation Program.
Issue:
Shall the City of Miami Beach approve and adopt revised Guidelines for the City of Miami Beach Multi-
Family Housing Rehabilitation Program?
Item Summary/Recommendation:
The Guidelines of the City's Multi-Family Housing Rehabilitation Program are periodically reviewed and
revised to better meet the current needs of the community. Several changes are recommended that
include, an option of a maximum grant of 75 percent of cost of rehabilitation, an option of affordability
period of ten years, increase of maximum grant per unit to $15,000 (from $12,500), and updating of
language that structures LRC Committee. The Mayor and City Commission adopted the current Guidelines
on July 16, 1997.
Advisorv Board Recommendation:
On April 19, 2002, the Loan Review Committee approved the recommended revisions to the Guidelines
and requested that the Guidelines be forwarded to the Mayor and City Commission for referral to the City's
Land Use and Development Committee for review. On February 10,2003, the Land Use and Development
Committee reviewed, recommended, and forwarded the revised Multi-Family Housing Rehabilitation
Program Guidelines to the City Commission for approval. On November 25, 2003, the Neighborhoods
Committee reviewed and forwarded the Guidelines to the City Commission for approval.
Financial Information:
Source of Amount Account Approved
Funds: 1
D 2
3
4
Finance Dept. Total
City Clerk's Office Legislative Tracking:
I Vivian P. Guzman
Si n-Offs:
Department Director
Manager
AGENDA ITEM
DATE
C7H
/J.-/O-O 3>
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~
City Manage~L \
Date: December 10, 2003
To:
Subject:
A RESOLUTION OF THE MAYOR AND COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPR NG AND ADOPTING REVISED
GUIDELINES FOR THE CITY OF MIAMI BEACH MULTI-FAMILY HOUSING
REHABILITATION PROGRAM.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City administers the Multi-Family Housing Rehabilitation Program (Program) through
the Housing and Community Development Division of the Neighborhood Services
Department. Since 1981, the City has provided financial assistance to property owners
through this Program resulting in the successful renovation of over 1,262 units of rental
housing. The Multi-Family Housing Rehabilitation Program operates with federal funds
from the U.S. Department of Housing and Urban Development (HUD) through the
Community Development Block Grant (CDBG) Program.
The Mayor and City Commission adopted the current Program Guidelines on July 16,
1997. The Guidelines are periodically reviewed and revised to keep them current with the
needs of the community.
In the review of the Guidelines, the City Commission indicated during its January 20,2002
meeting that it would like the administration to explore the possibility of the Program
providing for a longer term of affordability. The administration has revised the Program
Guidelines and incorporated the option of a longer term of affordability in response to this
concern.
On April 19, 2002, the Loan Review Committee (LRC) recommended revisions to the
Guidelines and requested that the Guidelines be forwarded to the Mayor and City
Commission for referral to the City's Land Use and Development Committee for additional
review and revision. On February 10, 2003, the Land Use and Development Committee
unanimously voted to forward the revised Multi-Family Housing Rehabilitation Program
Guidelines to the City Commission for approval. On November 25, 2003, the
Neighborhoods Committee reviewed and forwarded the Guidelines to the City Commission
for approval.
A draft of the proposed revised Guidelines for the City of Miami Beach Multi-Family
Housing Rehabilitation Program is attached. The following is a summary ofthe significant
modifications proposed to the Guidelines:
· The maximum grant that an application may receive will be seventy-five (75) percent
ofthe cost of the rehabilitation. Currently, the maximum amount that an application
may receive is fifty (50) percent of the cost of the rehabilitation. This modification
will provide an enhanced incentive for property owners to participate in the Program.
. Applications that receive a grant greater than fifty (50) percent of the cost of the
rehabilitation will be required to provide an affordability period of ten (10) years,
during which fifty-one (51) percent of the units will be offered at rental rates
determined by U.S. HUD. Applications that receive a grant of up to fifty (50) percent
ofthe cost of the rehabilitation will continue to be required to provide an affordability
period of five (5) years. This modification will allow a longer affordability period as
suggested by the City Commission and provide additional years of affordable
housing to the community.
. The maximum amount that may be provided for a grant will be $15,000 per unit with
a cap of twenty-five (25) percent of the appraised value of the building. The current
maximum is $12,500 per unit. This modification was recommended by the City's
Planning Department to facilitate density reduction under the Program. The
previous Program Guidelines tended to induce reconfiguration of buildings yielding
higher density.
. The Program Guidelines include a section on the Loan Review Committee, Chapter
V, which details the structure, procedures, and composition of the LRC. The
process of appointment of the members of the Committee has been amended by
City Ordinance, Division 12, Sec.2-166 (d), and now states: ''The LRC shall consist
of seven voting members, who shall be direct appointments by the mayor and city
commissioners." Previously, the members of the Committee were appointed by the
Mayor and City Commission instead of by direct appointment by each member of
the City Commission. This modification incorporates the revised language from the
City Ordinance into the Program Guidelines.
The administration recommends that the Mayor and City Commission of the City of Miami
Beach, Flor'da, approve and adopt revised Guidelines for the City of Miami Beach Multi-
Family sing Rehabilitation Program.
/MAS/J~~SKC
o ec100 consent\Mulli-Family Housing Rehabilitation Guidelines 2002 Memo - 12-1-03.doc
CITY OF MIAMI BEACH
Multi-Family Housing Rehabilitation Program
Guidelines
Adopted by
THE MA VOR AND CITY COMMISSION
On December 10, 2003
For Information Conlact:
Housing and Community Development Division
1700 Convention Center Drive
Miami Beach, FL 33139
Ph: (305) 673-7260 FAX: 673-7772
TABLE OF CONTENTS
CHAPTER:
PAGE:
Introduction to the Rehabilitation Program................................................... ..1
Section i-General Program Requirements............................................ ..2
Section ii - Application for Funding ......................................................... ..3
Section iii - Eligible Costs Under the Program..........................................6
Section iv - Terms and Conditions of the Program ................................. ..7
Section v - Payment Procedure.............................................................. 10
II Specific Program Requirements............................................................. 11
Section i-Matching Grant Plan.............................................................. 11
Section ii - Interest Subsidy Plan............................................................ 11
III Default................................................................................................... 13
IV Tenant Relocation ................. ......... ...................................... ................. 15
V Loan Review Committee ........................................................................16
VI Requirement for Accessible Units .......................................................... 18
VII Definitions............................................................................................... 19
Exhibit "A" Federal and Other Requirements............................................... 22
MULTI-FAMILY HOUSING REHABILITATION GUIOELlNEs 2002.DOC
INTRODUCTION
The City of Miami Beach is an entitlement recipient of federal Community Development
Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development
(HUD). Using these monies, the City provides funds for physical and capital
improvements, economic development initiatives, park and recreatIon improvements and
activities, social/public services, and affordable housing initiatives.
Since 1982 the City's Multi-Family Housing Rehabilitation (MFHR) Program, funded
through the Community Development Block Grant and administered by the Housing and
Community Development DiviSion (HCDD), has provided financial assistance to property
owners to encourage them to upgrade the existing rental housing stock in Miami Beach.
These funds are provided in one of two ways: either by providing a matching grant for the
cost of the rehabilitation, or alternatively by subsidizing the interest on a bank loan to
reduce the market interest rate down to a six percent (6%) rate.
To date, more than 56 buildings containing 1,295 rental units have been, or are currently
being renovated. Federal funds in the amount of 7.75 million dollars have been invested,
leveraging 23.1 million dollars of private funds (a leverage ratio of 3:1).
Since the program previously was designed primarily as an economic development tool in
the early years, they focused on vacant, boarded-up structures and excluded any building
that was occupied. Currently, there are few vacant buildings left in the City. Most of the
properties eligible for rehabilitation now are partly or fully occupied.
According to the 2000 U.S. Census, there are 59,723 housing units in Miami Beach, of
which 46,194 are occupied. Of these occupied units, 63 percent are occupied by renters.
Additionally, more than 59 percent of the households in Miami Beach are classified as
low/moderate income, earning at or below 80 percent of the median income of Miami-
Dade County. Furthermore, the Consolidated Plan adopted by the Miami Beach City
Commission on July 1, 1998, estimates that 70 percent of households are renters. The
national average is 33.8 percent renters (2000 Census). Thus, the long-term objectives
contained in Hie City's Five Year Consofidated Plan are "to increase the availability of
affordably rental housing" and to "increase the number of larger rental housing units."
The City has determined that the Guidelines for the Multi-Family' Housing Rehabilitation
Program need modification to reflect current trends within the City. Thus, the HCDD and
the City's Loan Review Committee (LRC) have worked together to make the needed
revisions to these Guidelines.
These Guidelines are subject to change. In the event of any conflict between the
Guidelines and any federal law or regulation, the federal law or regulation will prevail.
City of Miami Beach
Multi-Family Housing Rehabililation Program
Guidelines
Page 1 of 23
CHAPTER I
Section i
General Proaram Reauirements
1. Property Qualifications
Any property to be considered for assistance by the City under the Matching Grant
Program or the Interest Subsidy Program must be located within the City limits of
Miami Beach, and preferably shourd be located within one of the designated
Community Development Target Areas. In addition, the property will be required
to meet any additional requirements set by the City.
The Community Development Target Areas are described as follows:
a. North Shore/Normandy Isle Target Area - The area of the City limited on
the north by 87th Terrace; on the west by Byron Avenue south to 85th
Street, then west along 85th Street to Hawthorne Avenue; and south along
Hawthorne Avenue to 77th Street, then east on 77th Street to Dickens
Avenue and south along Dickens Avenue to Indian Creek Drive and south
along Indian Creek Drive to 67th Street on the west; 67th Street east to
Collins Avenue, north on Collins Avenue to 71 st Street, East on 71 st Street
to the Atlantic Ocean. In addition, the area also includes Normandy Isle
south of the Normandy Waterway, but excluding the portion enclosed by
Trouville Esplanade, Bay Drive, Rue Notre Dame and the Normandy
Waterway.
Flamingo Target Area: The area of the City limited on the north by 41st
Street, from the Atlantic Ocean, west to Pine Tree Drive; then south along
Pine Tree Drive to 34th Street, west along 34th Street to Sheridan Avenue,
then south along Sheridan Avenue to its conjunction with Pine Tree Drive
and continuing south along Pine Tree Drive to Dade Boulevard, west along
Dade Boulevard to Biscayne Bay; then south along the shoreline or
Biscayne Bay to Government Cut on the south; east along Government Cut
to the Atlantic Ocean on the east; then north along the Atlantic Ocean to
41 st Street. In addition, the area also includes the part of Census Tract 40
bounded on the north and west by 41 st Street (Arthur Godfrey Road) and
on the east and south by the Biscayne Waterway Canal and continuing
along the shoreline of Biscayne Bay to the Julia Tuttle Causeway.
The proposed rehabilitation of properties located outside the Target Areas will be
subject to special environmental site review and clearance under the rules of HUD.
In order to be considered for participation in one of the programs a property must
contain, or the applicant must propose, that after rehabilitation, the property will
contain a minimum of four (4) living units, each with a minimum of 400 square feet.
b.
If the proposed project is a mixed-use property, containing both residential and
commercial uses, any assistance provided under these Guiaelines can be utilized
only for rehabilitation of the residential portion. After rehabilitation, the residential
portion of such mixed-use property must be used only for rental housing. At least
fifty-one percent (51 %) of the units in the property can be rented only to low-and-
moderate income persons at affordable rents (as defined in Chapter VII). This
requirement applies for a five (5) or ten (10) year period after the date of issuance
of a Final Certificate of Occupancy, or Certificate of Completion, as applicable.
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 2 of 23
2. Application Review
3.
4.
Based on the information contained in the agplication, the City's Housing
and Community Development Division (HCD ) shall make a determination
as to whether or not the applicant and the property are eligible for
participation under either the Matching Grant or the Interest Subsidy
Program, as set forth in these Guidelines.
The application will then be reviewed by the City's Loan Review Committee
(LRC) and the amount of funds required will De estimated by the HCDD,
based on the preliminary project cost estimate, and subject to the limits
defined elsewhere in these Guidelines. If the application is recommended
by the LRC, it will then be submitted to the Mayor and City Commission for
consideration. If approved by the Mayor and City Commission, and upon
compliance with and review by the HCDD of design requirements,
drawings, specifications, and other applicable documents and
requirements, an agreement will be executed between the City and the
Applicant.
Only those applications that have been reviewed and recommended by the
LRC, and approved by the Mayor and City Commission, shall be eligible for
funding under the City's Programs.
Minimum and Maximum Award Amounts - In order to qualify for funding
hereunder, the minimum total rehabilitation cost estimate amount must be at least
$3,000 per dwelling unit, and not less than $30,000 in the aggregate for all
dwelling units in the project. The maximum amount that may be app'roved for a
matching grant is $15,000 per unit with a cap of twenty five percent (25%) of the
appraised value of the building.
a.
b.
c.
These maximum limits are based on the number of legal units prior to the
rehabilitation, as determined from the records of the City's Building Services
Division. The actual amount of grant or subsidy funds awarded is suBject to the
discretion of the LRC, within the limits set by these Guidelines, and subject to the
funding available for the Program.
Affordabilitv Period - Rehabilitations that receive a match from the City that is
equal to or less than fifty (50) percent of the value of the rehabilitation are
obligated to a five (5) year affordability period. Rehabilitations that receive a
match from the City of 51 to 75 percen of the value of the rehabilitation are
obligated to a ten (10) year affordability period.
Section ii
Application for Fundina
1. Application Process
An application for rehabilitation assistance must include four (4) copies of each of
the following:
a. Completed application form, including all information requested therein.
b. Proof of ownership (copy of a deed or other acceptable proof of ownership
of the property acceptable to the City, or a contract of sale, however review
of the application by the Mayor and City Commission may not take place
until applicant obtains fee simple title to the property.
Page 3 of 23
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
2.
c.
Organizational documents and certificate of good standing (if other than
individual ownership). Including but not limited to: Articles of Incorporation,
partnership agreements, Certificate of Incorporation, or Certificate of
Partnership
Legal description of the property.
Description of proposed rehabilitation work - A written description of the
rehabilitation work intended to be done to renovate the property, identifying
the deficiencies to be corrected.
An itemized cost estimate, prepared by a licensed architect or engineer,
showing the estimated construction cost for the work to be performed,
which is based on the scope of work and technical specifications contained
in the work write-up.
Plans drawn to scale, of the proposed project, including: a site plan, floor
plans, elevations, specifications and a certified survey.
Photographs of the property, including exterior shots of all sides of the
building and interior shots of the units, showing the need for work to be
performed and the specific areas to be improved.
d.
e.
f.
g.
h.
i.
If the property is occupied at the time the application is submitted the
applicant must submit a tenant roll. Additionally, the applicant must submit
for each unit, the names of tenants, terms of the current lease, length of
time in residence, rent currently paid, with an indication as to whether
utilities are included, family size, family income of each tenant, and any
other information determined necessary by the HCDD to assess the neea
for temporary relocation.
An itemized list prepared by the City's Code Compliance Section of all
outstanding code violation citations issued against the property, as well as
documentation of the amount and reason for assessment of any liens or
charges against the property by the Special Master.
If the property was constructed more than fifty (50) years ago, then written
approval of the proposed rehabilitation plans and specifications will be
required from the State of Florida Historic Preservation Officer (SHPO). For
this purpose, the applicant or his architect or engineer will arrange to submit
working drawings, photographs, certification forms, and any other
information determined necessary by the SHPO, in connection with the
required approval.
A non-refundable application fee of $250. (A request for waiver of this fee
will be considered from qualified not-for-profit applicants.)
Review of Applications bv the City
j.
k.
I.
The HCDD will review the application documents and make an initial determination
as to whether or not the applicant and the property are eligible for one of the
programs set forth in these Guidelines. The application documents will also be
sent to the City's Planning and Zoning Director, Chief Building Official, Code
Compliance Supervisor and ADA Coordinator for review and comment.
If eligible, the application will then be reviewed by the LRC. Only applications that
have been reviewed and recommended by the LRC will be presented to the Mayor
and Commission for approval. If the City Commission approves the application
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 4 of 23
and funding agreement, the HCDD will issue a funding commitment, and a
reservation of funds will be made for the project.
The funding agreement shall be in such form as may be recommended by the City
Attorney. However, before an agreement is executed by the Mayor and City Clerk,
the HCDD must receive and approve the following:
a. If the property was constructed more than fifty (50) years ago, then written
approval of the proposed rehabilitation plans and specifications will be
required from the State of Florida Historic Preservation Officer (SHPO). For
this purpose, the applicant or his architect or engineerwill arrange to submit
working drawings, photographs, certification forms, and any other
information determined necessary by the SHPO, in connection with the
required approval.
A copy of final plans and specifications for the rehabilitation of the project,
approved by the City's Building Department, which include proof of having
obtained air variances required, and compliance with all local laws, codes
and standards. Plans must also comply with the requirements of the City's
Planning and Zoning Department, and the City's ADA Coordinator.
Building permits must be obtained, from the City's Building Department, as
requireCl by applicable City Ordinance. Also, any other necessary permits
and applicable approvals from any other governmental authorities must be
obtained.
b.
c.
d.
A copy of an executed construction contract entered into by the applicant
and a licensed General Contractor, which includes the following: (1) Roles
and responsibilities of all parties; (2) Construction schedule, Including
commencement and completion dates; (3) Contract price; (4) Scope 01
work; (5) Provisions for inspections and payments to the contractor for the
work completed; (6) Provisions for a holdback of funds; (7) Change order
procedures; (8) Procedures for resolving disputes; (9) References to any
work which will be performed under warranty (including the terms and
conditions of such warranties); (10) All essential construction documents,
such as the work write-up and technical specifications; and (11) Reference
to all applicable federal regulations and standards.
Evidence, satisfactory to the City's Risk Manager, of proper insurance
coverage.
A cost breakdown, to include direct and indirect costs of the proposed work.
If requested, the applicant must provide the HCDD with a structural report
of the building rrepared by a Professional Engineer, along with a signed
statement tha the final cost estimate includes the costs for the
performance of any necessary structural repairs to the building, as well as
repairs to correct all open Housing Code Violations.
Proof that the property has been inspected by the City for building/code/fire
violations.
Evidence that the building's roof is in weather-tight condition and that the
building is free of live infestation of termites. If such evidence cannot be
provided, the applicant must assure that the items will be corrected as part
of the rehabilitation project.
The applicant must provide assurances that it is not delinquent in its legal
and financial obligations and/or payments on the property with the City.
e.
f.
g.
h.
i.
City of Miami Beach
Multi-Family Housing Rehabililation Program
Guidelines
Page 5 of 23
j.
The applicant will be responsible for the costs of recording the agreement
and related documents with the Clerk of the County Court.
Any other requirements determined necessary by the City.
k.
Section iii
Eliaible Costs Under the Proaram
1. General
The financial assistance available under these Program is designed to assist the
renovation of multi-family buildings that need to be brought into compliance with
applicable codes and ordinances, rules and requirements, including, but not limited
to, HUD Housing Quality Standards, the South Florida Building Code, and the City
of Miami Beach housing codes and ordinances.
2. Eliqible Costs
The eligible uses of funds under the Programs are the following:
a. Construction - Actual cost of rehabilitating housing, including labor and
materials necessary to meet the requirements of the South Flonda Building
Code, the City of Miami Beach Building Codes, and to meet the HUD
Housing Quality Standards.
(1) Current or Incipient Violations - Improvements to correct violations or
conditIons which may, In the opinion of the City, develop into hazardous
conditions or code violations.
(2) Good and Readil~ Maintainable Condition -Improvements necessary to
put the property an facilities In a condition which requires a minimal
amount of maintenance, and when appropriate, improvements which
conserve energy.
(3) General Property Improvements -Improvements which are in addition to
those required by applicable codes and ordinances, but which are
incidental to the repairs being done to remedy code violations. These
improvements may be considered approprrate, provided they are
economically practical and in the public interest.
Architectural - Reasonable fees paid for professional services in preparing
work wrrte-ups, cost estimates, working drawings, specifications, and in
performing supervision, cost certification, and other designated tasks.
b.
c.
Permit Fees - Those fees paid to the City's Building Services Division for
permits necessary to undertake the work outlined in the application.
Appraisal Fees - If required by the City.
Continaency - An amount not to exceed ten percent (10%) may be included
In the cost estimate for any unforeseen but eligible construction costs.
Tempora!a Relocation - Fifty percent (50%) of "eligible" expenses
associate With relocating existing tenants to temporary lodging and
subsequently returning them to the property upon completion ofthe project,
as well as "eligible" increases in expense levels incurred by the tenants
d.
e.
f.
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 6 of 23
during the period of temporary displacement. "Eligible" expenses will be
determined in accordance with the provisions of Handbook 1378: "Tenant
Assistance, Relocation and Real Property Acquisition", issued by HUD, as
amended.
Note: In the event it is found necessary to permanently relocate any tenant, the full
cost of such permanent relocation shall be borne by the property owner.
3. Ineliqible Costs
The following costs or expenses are not eligible uses of funds under the Programs:
a. Refinancing of existing mortgages.
b. Purchase of the property.
c. New construction.
d. Purchase, installation or repair of furnishings.
e. Payment of delinquent taxes, utility bills, fines, insurance premiums,
deductibles or other similar expenses. The applicant is responsible for
bringing these payments current and satisfying In full any liens, charges or
assessments against the property, prior to submission of the application to
the City Commission.
Section iv
Terms and Conditions of the Proaram
The applicant shall agree to abide by all applicable City, State and Federal laws and
regulations in regard to the Programs, including, but not limited to, the following terms and
conditions:
a. Work Write-ups - The Applicant will submit clearly written, well-organized
work write-ups, which precisely- define the scope of the rehabilitation work
to be undertaken. The project s scope of work and technical specifications
should be included or incorporated by reference in the work write-up.
b. Cost Estimates for Work Specified - The Applicant must provide to the City
an estimate of reasonable project costs, prepared by a licensed architect or
engineer, and based on the scope of work and technical specifications
contained in the work write-up.
c. Contractor Selection - The applicant may select his/her own contractor and
does not have to use formal competitive bidding procedures. However, the
applicant must secure written estimates from a minimum of three (3) qualified
eligible contractors. The estimates must be based on work write-ups as
described above. The applicant must provide the City. with copies of the
contractor's estimates and all work write-ups for the City s review. The City's
Building Official will prepare an estimate of the cost of the work as described in
the work write-up, and shall review the estimates provided by the selected
contractor for reasonableness of cost. The contractors' bid that is selected
cannot exceed the City's estimate by more than 10 percent. Contracts must
specify a completion date within a reasonable period of time.
d. Ineli ible Contractors - The applicant may not award any contract for
re a Iltatlon wor to e paid for In whole or In part with federal grant funds
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 7 of 23
i.
e.
to any' contractor or sub-contractor who, at the time of contract execution, is
ineligible under the provisions of any applicable regulations issued by the
Secretary of Labor or the federal government to receive such award. The
City will confirm whether the confractor is included in the list of ineligible
firms.
Lead-Based Paint Reguirements - The use of lead-based paint is
prohibited. Federal regulations require that, in the event lead-based paint is
found in a property assisted under the Programs, the applicant at his/her
expense must undertake appropriate testing and abatement procedures.
Federal Labor Standards - All laborers must be paid wages that are not less
than those contained in the official wage determination of the Secretary of
Labor for each classification of work (Davis-Bacon Act). Any property
containing eight (8) or more units under the Community Development Block
Grant Program (CDBG) must comply with all Federal Labor Standards
provisions. A pre-construction conference must be held by the City with the
contractor, all sub-contractors, and the applicant in order to address the
extent of the work to be performed, the schedule, special conditions, labor
standards provisions and any specific concerns or questions any of the
parties may have.
Completion of Work - The applicant will also assure that the rehabilitation
work will be earned out promptly and efficiently through a written contract let
with the concurrence of the City, and completed witF\in a specified time as
established by' the architect and/or engineer and the City. Failure to pursue
the project diligently may cause a default hereunder. In the event of
construction cost overruns, any additional funds needed to complete the
rehabilitation must be provided by the applicant.
Benefit to Low and Moderate Income Persons - For projects funded with
CDBG funds, the following restnctlons shall apply: fifty-one percent (51 %)
of the units; after rehabilitation, can be rented only to low and moderate
income persons who earn at or below 80 percent of the Area Median
Income (AMI), at affordable rents, as defined in Chapter VI. This
requirement applies for a period offive (5) orten (10) xears after the date of
issuance of a Final Certificate of Occupancy or Certificate of Completion,
as applicable.
For projects funded with HOME funds, the currently applicable rules of the
HOME Investment Partnerships Program Final Rule shall apply. The
number of units to be assisted with HOME funds shall be determined by the
LRC. These units will be clearly identified in an addendum to the
Agreement between the Applicant and the City, and shall contain a
proportionate representation of unit sizes and types to that of the project as
a whole. The rental rates charged and the tenant income requirements for
these HOME units shall be those permitted under the applicable rules of
the HOME Program. These requirements, collectively called the
"affordability requirements" shall apply for that period of years determined
by the level of investment in the project, as defined in the HOME Rules, but
in no event less than a five (5) or ten (10) year period after the date of
issuance of a Final Certificate of Occupancy or Certificate of Completion,
as applicable.
Transfer of the PropeffiT - If the property is sold, transferred or converted to
condominium use, Wit In the five (5) or ten (10) year period of affordabilit)'
as defined above, following the issuance of a Final Certificate of
Occupancy or Certificate of Completion, the full amount of the funds
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City of Miami Beach
Multi-Family Housing Rehabililation Program
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Page 8 of 23
k.
awarded by the City as a matching grant or as an interest subsidy plus
accrued interest, at a rate of Prime plus 1.25 percent, will immediately
become due and payable to the City upon demand. The City may, at its
option, permit such sale or transfer, provided that the prospective purchaser
satisfies the City that the units will be maintained under the same terms and
conditions for the full period as specified in the original agreement. The
applicant shall notify the City in writing of his/her intention to transfer the
property and shall permit the City to review all applicable documents in
order to ensure compliance with this requirement.
The prospective purchaser of the property must execute an agreement with
the City assuming the terms and conditions ofthe City's Agreement with the
original applicanf and containing such other terms and conditions as the
City may require.
Reportinq - Funding recipients under these Programs must submit to HCDD
annual reports regarding the property and its occupants, detailing family
size and income levels in form and substance acceptable to the City. Such
reports shall be due in acceptable form, within ten (10) business days of the
following dates: 90 days after issuance of a final Certlficate~f Completion,
or Certificate of Occupancy, as applicable. By October 30 of each year,
covering the 12-month penod ended September 30. The reports shall be
submitted through the period of affordability provided in the agreement
between the applicant and the City, and through September 30 ofthe fiscal
year that includes the final month of the affordability period. If such rerorts
are more than ten (10) business days late, applicant shall be subjec to a
penalty charge of $~50, and an additional $10 per day charge thereafter for
each day the report is more than ten (10) business days late.
Access to Property and Records - Designated personnel of the City and
HUD shall have access to the property and shall have the right to inspect
the property, rehabilitation work, contracts, materials, equipment, payrolls
and all records relative to the project.
Pro ert Ins ection - The applicant shall retain the services of a qualified
Inspector I.e., Icensed architect or professional engineer) who must
periodically inspect the property during the rehabilitation project and certify
to the City that the percentage of worK has been completed in accordance
with the approved plans and specifications. The American Institute of
Architect's standards, or an approved equivalent, must be used for such
certifications. The City must review and approve each request for payment
by the contractor for work completed.
Maintenance of the propertfl- The dwelling units in the project shall be
maintained In accordance WI h City code property maintenance and kept in
good condition and repair and shall be fully tenantable for the duration of
the term of affordabillty. No dwelling Unit therein shall be removed or
demolished. The Applicant shall complete or restore promptly and in a
professional manner any dwelling unit which may be damaged or destroyed
therein and shall pay when due all claims for labor performed and matenals
furnished to the proJect.
Insurance - The Applicant shall maintain hazard,liability and flood
Insurance on the property to be rehabilitated, as required, in accordance
with the requirements of the City's Risk Manager.
Propertv Alterations - The Applicant shall assure that no substantial
changes Will be made to the exterior of the property nor to the interior of the
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City of Miami Beach
Multi-Family Housing Rehabililation Program
Guidelines
p.
affordable units for at least the full term of afford ability unless such
proposed changes are approved in writing by the City. If any changes are
made without tf1e prior written consent of the City, the full amount of the
funds supplied by the City will become due and payable immediately upon
demand. This section is in no way intended to impede the Owner's
responsibility to perform normal maintenance on the property.
Conflict of Interest - All applicants must comply with the provisions of
24 CFR Part 570.611 regarding conflicts of interest. No member of the
City Administration or any City employee, public official, or member of the
Federal, State, Local or County Government, who exercises any functions
or responsibilities in connection with the administration of the Programs or
approval of the project, may have any interest, direct or indirect, in the
proceeds of the payment hereunder, or in any contract entered into by the
applicant for the performance of the work paid for in whole or in part with
these federal funds. HUD has the authority to grant exceptions but the
regulations do not provide anyone with a right to an exception. In order to
ensure that HUD-assisted rehabilitation is carried out in accordance with
generally accepted construction standards and that rehabilitation funds are
expended economically and efficiently, the City must be advised
immediately of any and all suspected or apparent conflicts of interest.
Eaual Opportuni~ - The applicant shall abide by all federal, state or local
regulations rela Ive to equal opportunity to all persons, without
discrimination as to race, color, creed, religion, national origin, sex, sexual
orientation, marital status, age, handicap or familial status.
Affirmative Marketina - Applicants are required to market all units in rrojects
assisted under these GUidelines in accordance with the City 0 Miami
Beach's "affirmative marketing procedures" as required by HUD.
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Section v
Pavment Procedure
Funds Disbursement
After a funding agreement and related documents have been executed, and a Notice to
Commence Construction has been issued by the City, the approved funding amount will
be disbursed as follows:
Durin~ the construction phase - A payment may not be issued more often than once a
mont . The amount of each payment will be calculated as follows: 90 per cent of the
value of work completed to date, less the previous payments made (as certified by the
Owner's Architect using an AlA payment certification form, and confirmed by the City's
Building Services DiviSion). The City's payment will be in the same proportion to the cost
of the work that has been completed since the work for which the City has previously
ma~e payment as the City's funding commitment bears to the total estimated cost of the
project.
Payments under the matching grant program will be made directly to the owner.
Payments under the interest sUDsidy program will be submitted to the holder of the
interest escrow account.
The final ten percent (10%) of the City's funds shall be paid upon the completion,
approval and acceptance of the rehabilitation work and related documentation by all the
governmental agencies and authorities having jurisdiction overthe project, and as further
set forth in these Guidelines, including, but not limited to, the following:
City of Miami Beach
Multi-Family Housing Rehabililation Program
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Page 10 of 23
a. Approval and acceptance of the rehabilitation work by all the governmental
agencies and authorities having jurisdiction over the project, including the issuance
of a Certificate of Completion or Certificate of Occupancy, as applicable.
b. Receipt and approval by the HCDD of all documentation for compliance with
Federal Labor Standards.
c. Receipt and approval by the HCDD of a certified statement showing that the
property is free and clear of mechanic's, materialmen's or any other type of liens or
obligations relating to the rehabilitation of the property.
d. Receipt of Final Release of Liens must be received from the prime contractor, and
all sub-contractors and materialmen.
Items (b) and (c) must be submitted by the applicant no later than thirty (30) days after
the date a Final Certificate of Completion is issued.
CHAPTER II
SPECIFIC PROGRAM REQUIREMENTS
Section i - Matchina Grant
1. General
The Matching Grant Program provides direct grants to property owners in order to
rehabilitate existing buildings and expand the supply of decent, safe, sanital)' and
affordable rental housing. Federal grant funds will be used for the rehabilitation of
multi-family rental units and will address the problem of deteriorating housing stock
in the City.
2. Grants
Grants are not loans; therefore, repayment is not required except as specified
herein. Grant funds utilized for the Matching Grant Program are derived from the
U.S. Department of Housing and Urban Development (HUD). Funds may be
disbursed only for eligible activities in accordance with applicable federal
regulations.
Section ii - Interest Subsidv
1. General
The City's Interest Subsidy Program is designed to provide interest subsidies,
resulting in low interest rehabilitation loans 10 property owners of multi-family
residential properties in order to upgrade their buildings, and to make available
affordable rental housing units. The City, utilizing federal funds, will subsidize the
interest rates on loans made by those lenders who agree to lend pursuant to these
Guidelines.
2. Interest Rates
The interest rate on loans will be subsidized with federal funds received from HUD
under the Community Development Block Grant (CDBG) Program. The subsidies
are intended to result in a six percent (6%) effective annual rate on the loan to the
owner. The LRC may, from time to time, revise this rate.
City of Miami Beach
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3. City's Review of Applications
Applications for participation in this program shall be submitted and evaluated in
accordance with the procedures outlined herein.
If an application is recommended br the LRC to the Mayor and City Commission
for their approval, the amount 0 interest subsidy will be estimated. This
calculation will be based on the present value of the subsidy required to buy down
the interest rate on the loan, which amount of money, if the application is
approved, will be paid to the lender on behalf of the applicant and will be deposited
in an interest-bearing escrow account with the lender. This amount will be a
preliminary estimate since the applicant will likely not yet have secured the final
loan terms and conditions from the lender. Only applications which have been
reviewed and recommended for approval by the LRC shall be eligible for a City of
Miami Beach interest subsidy.
4. Lender's Commitment on the Proiect
Applicants must apply to a lender(s) of their choice to obtain a funding
commitment for the project. The lender will, if feasible, issue a commitment letter
to the app'licant setting forth the terms and conditions of the loan. It shall be the
applicant s responsibility to bear all costs necessary to submit a loan application to
any lender and to pay for any costs incurred by the applicant if the loan application
is not approved by a lender and/or the City.
Reservation of City funds for approved applications will expire sixty (60) days from
the date the application was approved by the LRC, unless the HCDD receives a
written commitment issued by a lender, acceptable to the City as to form and
content within such 60 days.
5. Final Calculation of Interest Subsidy
Upon receipt of an acceptable funding commitment from a lender, the HCDD will
make a final calculation of the interest subsidy required. This calculation will be
based on the present value of the subsidy required to buy down the interest rate
on the loan. If the amount of the subsidy is within ten percent (10%) of the amount
recommended by the LRC, no further LRC action will be required, and the
proposed funding commitment and subsidy agreement will be submitted to the
Mayor and City Commission for consideration.
6. Estimatina Fundina
The terms and conditions of the lender's commitment should be substantially the
same as unsubsidized loans, including, but not limited to, such matters as
submission requirements, prepayment privileges, owner's equity, credit rating of
applicants, and escrow accounts. Loans shall bear the same interest rate as
those for unsubsidized multi-family loans and, forthe purpose of the Program, this
rate shall be termed the "loan rate". The NSD, the lender and the applicant will
determine the amount of the interest subsidy payment necessary to reduce the
"loan rate" to the "subsidized rate", this amount will depend on, among other
things, the term of the repayment. If this final calculated amount is within ten
percent (10%) of the amount recommended by. the LRC and approved by the
Mayor and City Commission, no further action will be required of the LRC and the
Mayor and City Commission.
If the commitment issued by the lender is insufficient to pay for the full cost of
rehabilitation, then the work write-up and cost estimate may be adjusted
downward. After adjustment and rehabilitation, however, the property must, at a
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 12 of 23
minimum, conform to the applicable codes and ordinances, and any indicated
requirement of additional funds must be documented to the City's satisfaction and
committed to the project.
7. Loan Closinas
Lenders shall be responsible for the preparation and execution of all loan closing
documents, and shall notify the applicant and the City of the date and location 01
the closing. All closings will meet the normal and standard requirements for loans
of a similar nature, as established by the lender and/or its attorneys.
8. Closina Reauirements
All applications approved by a lender, the LRC and the Mayor and City
Commission for participation In the Program shall be closed in strict accordance
with the terms and conditions of the lender's commitment, the City's commitment,
the subsidy agreement and within the time specified in those documents.
9. Use of the Interest Subsidy by the Lender
The interest subsidy payments disbursed by the City to the lender shall be
deposited in an interest bearing escrow account at one of its offices located in
Miami-Dade County, Florida, at the maximum interest rate available to lender, and
shall be expended as follows: on each month that the applicant is required to
make payments to the lender on the permanent loan, the lender will draw from the
escrow account (to the extent amounts in the escrow account are sufficient) the
amount equal to the difference between the amortized monthly payment of
principal and interest based on the "loan rate" and the amortized monthly payment
of principal and interest based on the "subsidized rate". Any unused balance of
interest subsidy funds plus unused earnings thereon shall remain in the escrow
account with the lender. Lender must execute a statement that it has no security
or other interest in the escrow account.
10. Additional Eliaible Costs
In addition to the eligible uses offunds as described in Chapter II, Section iii when
an interest subsidy IS used, the following costs are also eligible:
a. A reasonable and standard fee for loan points over and above the per
annum interest rate charged by lender.
b. Costs attributable directly to the preparation of loan instruments and any
other out-of-pocket costs incidental thereto, including, but not limited to,
fees for recording and filing, credit reports, photographs, surveys,
inspection fees, abstracting and title reports, appraisal fees, current
accruals, and legal fees.
CHAPTER III
Defaults
1 . Defaults
If any applicant or funds recipient under the Program defaults under or breaches
any City or federal term or condition of the Program, violates any federal, state or
City law or regulation, or defaults under or breaches any term or condition of these
GUidelines or of any Matching Grant or Interest Subsidy Agreement or of any loan
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 13 of 23
document relating to the property at issue, the City shall be entitled to declare a
default under tne Matching Grant or Interest Subsidy Agreement, these
Guidelines, and the Program. The City shall be entitled to pursue all available
remedies, including, but not limited to, equitable, legal and injunctive relief and the
return of all monies disbursed by the City, plus interest at a rate of Prime plus 1.25
percent. Any costs incurred by the City as a result of a default, including legal fees
and costs in the trial court and all appellate levels, shall be paid by the applicant or
funds recipient.
2. Lien Riqhts of the City
The executed agreement between the Applicant and the City will be promptly
recorded in the Public Records of Dade County, Florida and will be a lien against
the property for the term of the agreement. In the event of a default under the
agreement, the full amount of funds provided by the City, plus interest, will be
required to be paid to the City immediately upon demand. Further, the City will be
authorized to foreclose its lien on the property to recover the full amount of the
money provided plus interest.
3. Cancellation and Refund of Payments
At its option, the City reserves the right to cancel and terminate a matching grant
or interest subsidy award and request the return of the unused funds and any
interest thereon to the City, by sending written, certified notice of cancellation to
the applicant at his/her mailing address if: (1) for a period of 30 days after the
notice to commence work is issued, the applicant shall have failed or refused to
cause the commencement of physical rehabilitation work on said property; or, (2)
the applicant failed or refused to complete the work within a time specified in the
City's documents; or (3) the City determines that the purposes of the grant have
been rendered impractical of fulfillment.
4. Default by the Applicant under the Terms and Conditions of the Loan
In the event any applicant defaults under any of the terms and conditions of a
note, mortgage, or other loan document relating to the property at issue, including
a loan document relating to a loan subsidized under the Interest Subsidy Program,
the lender shall immediately notify the City of the default and the City may, at its
sole option and discretion, within thirty (30) days of this notice, take whatever
action is customarily permitted to bring the loan current.
5. Unused Prepaid Interest Subsidy
In the event of a default by the applicant under an Interest Subsidy Agreement,
any unused balance of interest subsidy funds plus any accumulated interest
earnings shall be returned immediately to the City upon demand.
6. Remedies Cumulative
The exercise or lack of exercise by the City of any remedy in response to any
default does not preclude the City from exercising any other remedies.
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Multi-Family Housing Rehabilitation Program
Guidelines
Page 14 of 23
CHAPTER IV
TENANT RELOCATION
1. General
If the property is occupied at the time the application is submitted the applicant
must submit a tenant roll. Additionally, the applicant must submit for each unit:
tenant names, lease terms, duration of occupancy, rent currently paid, with an
indication as to whether utilities are included, family size, family income, and any
other information determined necessary by the HCDD to assess the need for
temporary relocation.
2. Relocation Planninq
In the event that temporary relocation of existing tenants is mandated by a project,
the provisions of the federal Uniform Relocation Act (URA) will apply. The City's
deSire is to minimize displacement
If a property is occupied and temporary relocation of the tenants is required during
the rehabilitation or construction, the City will reimburse up to fifty percent (50%) 01
"eligible" temporary relocation expenses incurred by the property owner in
accordance with the budget and plan submitted as part of the application and
approved by the City.
"Eligible" expenses will be determined in accordance with the provisions of
Handbook 1378: Tenant Assistance Relocation and Real Pro ert Ac uisition,
issued by HUD, as amen e .
The Owner must pay these expenses directly, or reimburse the tenants for their
payments, and document all such expenditures carefully. Upon submittal of a
detailed accounting, to the satisfaction of the City, of all such payments or
reimbursements made each month for the duration of the project, the City will
reimburse the owner up to 50 percent of those eligible expenses incurred for this
purpose.
Note: In the event it is found necessary to permanently relocate any tenant, the full
cost of such permanent relocation shall be borne by the Owner.
3. Assessment of Need
As part of the application package for the project, the applicant is required to
prepare an estimate of the number of tenants requiring temporary relocation, the
household size, and type, previous rental amount, utility expenses, and the cost of
temporary lodging, as well as other increased expenses associated with such
temporary relocation. The Owner should also advise the City of other property
they may have which could be utilized to temporarily house the tenants.
Additionally, the number and type of vacant units in the subject property must be
clearly identified, to permit a determination of whether relocation of tenants within
the property will be feasible, or whether it will be necessary to provide temporary
lodging outside the property.
4. Relocation Plan and Budaet
A budget must be submitted, estimating the anticipated relocation expenditures by
month for the entire period of the project. Such a preliminary plan and a relocation
budget should include, the number of tenants and the period of temporary
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 15 of 23
relocation necessary for the completion of the project, consistent with the project
construction schedule submitted by the general contractor.
5. Federally Reauired Notices
The Owner shall agree to send, or permit the City or its agent to send, federally
required notices to tenants in a timely manner. These notices include, but are not
limited to: General Information Notice, Notice of Non-displacement and a Notice of
Eligibility.
6. Tenant Relations
Owner shall make every effort to assure that temporary accommodations provided
for tenants are decent, safe and sanitary, and that other living conditions are
generally acceptable. The Owner will ensure that there is no increase in out-of-
pocket housing expenses to the tenant.
7. Tenants Returnina After Rehabilitation
Those tenants who were in residence prior rehabilitation, and who received a
"Notice of Non-Displacement", who elect to return to the property upon completion
of the rehabilitation work are referred to herein as "Returning Tenants".
Owner must agree to offer a unit to these Returning Tenants on the following
terms, indepenaently of the rent restrictions detailed In Chapter I, Section iv (h):
a.
Returning Tenants must be offered the same apartment previously
occupied, or a unit comparable in terms of size and amenities to the Unit
occupied prior to the rehabilitation.
Returning tenants must be offered a standard lease for at least a 12-month
period at the same rent being charged before the rehabilitation.
Upon expiration of the initial lease, and annually thereafter, for a period of
42 months following the completion of the rehabilitation work, rent charged
the Returning Tenant may be increased in an amount deemed reasonable
by the City, and only if the amount of such proposed increase can be
justified, based on documented increases in the operating costs of the
property.
Upon expiration of the 42 month period. the rent charged to the Returning
Tenant may be adjusted to the HUD Fair Market Rent, as specified in
Chapter I, Section iv (h), if applicable. or to market rental rate.
b.
c.
d.
CHAPTER V
LOAN REVIEW COMMITTEE
Mission Statement:
The Loan Review Committee of the City of Miami Beach shall review applications for
funding the rehabilitation of residential properties, under the provisions of the Multi-family
Housing Rehabilitation Guidelines, such review shall include property qualifications and
eligibility of applicants. The Committee shall recommend approval of qualified
applications to the Mayor and City Commission.
Page 16 of 23
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
1. General
This chapter sets forth the role and responsibilities of the City's Loan Review
Committee (LRC).
2. Purpose
The loan review committee of the city shall review applications for funding the
rehabilitation of residential properties, under the provisions of the Multi-Family
Housing Rehabilitation Guidelines. Such review shall include property
qualifications and eligibility of applicants. The committee shall recommend
approval of qualified applications to the mayor and city commission.
3. Powers and Duties
The powers and duties of the committee, per guidelines for city rehabilitation
programs approved by Resolution No. 95-21728, are to:
a. Study and review proposals, applications, property qualifications and the
eligibility of the applicants for funding under the community development block
grant program-funded housing rehabilitation programs.
b. If necessary, interview the applicant to obtain additional information about the
proposal.
c. Evaluate applications and determine which shall be recommended for approval
to the city commission and specify timeframes and any other conditions for
commitment of funds upon approval.
d. Estimate the amount of public funding needed to assist selected proposals and
provide for the reservation of funds for those projects.
e. Review final proposals which have received commitments, and recommend
their reduction if required by limitations in the availability of funds.
f. Review and make recommendations regarding any request made to the city for
an assignment or material change In any of the terms of the award
agreements, after loan closing or final funding commitment.
g. Establish site and neighborhood standards.
h. Periodically review these guidelines, and make recommendations to the city
commission for action.
i. Provide expertise and assistance to the City's Housing and Community
Development Division in preparing requests for proposals (RFP) or notices of
funding availability (NOFA) or portions thereof, for the city's housing programs,
including: the CDBG-funded Multi-Family Housing Rehabilitation Programs, the
HOME Investment Partnerships Program (HOME), and the State Housing
Initiatives Partnership (SHIP) Program.
j. Review all eligible HOME and SHIP Program applications in accordance with
criteria outlined in the applicable RFP or NOFA. These criteria may include
items such as total cost, extent of leveraging, cost per unit, development
schedule, previous accomplishments, periods of affordability, utilization of
non public funds, non-displacement, total number of units, site and
neighborhood compatibility, conformity with city zoning requirements,
consistency with the City's consolidated plan, etc.
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Multi-Family Housing Rehabilitation Program
Guidelines
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4. Composition
The LRC shall consist of seven voting members, who shall be direct appointments
by the Mayor and City Commissioners. The finance director or his or her designee
and the City Manager or his or her designee shall serve as nonvoting, ex officio
members. A member of the Community Development Advisory Committee
(CDAC) shall be designated to serve as a nonvoting, ex officio member of the
LRC, in order to facilitate communications between the LRC and CDAC.
Voting members shall serve for a term of two (2) years.
A designated representative of the City shall act as the direct liaison between the
applicant, the lender, if any, the LRC, and representatives of the City.
4. Applicable Fees and Time Frames
Any application submitted for the rehabilitation Programs will be subject to the
following:
a. An application fee of $250 is due at time of submission of the application to
the HCDD. A request for waiver of this fee will be considered only from not-
for-profit applicants.
b. If the applicant under the interest subsidy program is not able to proceed
with construction within the specified time, and wishes to apply to the
HCDD for an extension of time, a fee of $150 is due at the time of this
request. If the applicant fails to meet the program requirements during the
extension period, then the City's commitment shall expire. If the applicant
desires to re-apply for the funds after such expiration, a new application
package and fees must be submitted to the City, and the request will be
treated as a new application.
5. Applicability of City Resolutions and Reaulations
All laws, ordinances, resolutions, rules and regulations enacted by the City
Commission regarding membership, attendance, removal of members, voting and
quorums pertaining to City Boards and Committees, as amended from time to
time, shall apply to the LRC.
CHAPTER VI
REQUIREMENT FOR ACCESSIBLE UNITS
Alterations to Housing Facilities
Projects funded under these Guidelines are subject to the Uniform Federal Accessibility
Standards (UFAS) under Section 504 of the Rehabilitation Act of 1973.
Alterations are divided into two types:
a. Substantial Alteration: Regulatory Citation 24 CFR 8.23(a). Alteration in which
the cost of the alterations to a facility of 15 or more dwelling units equals or
exceeds 75 percent of the replacement cost of the completed facility. Substantial
alterations are subject to new construction accessibility requirements.
Alterations that do not meet the definition of substantial (i.e. the development altered has
less than 15 units, or the costs are less than 75 percent of the replacement cost of the
completed facility) are covered by "other alterations".
Page 18 of 23
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
b.
Other Alterations: Regulatory Citation 24 CFR 8.23(b). Applies to multifamily
housing developments of 5 dwelling units or more (including scattered site
housing). These alterations to dwelling units must, to the maximum extent
feasible, be made accessible to and usable by individuals with disabilities. A
minimum of 5 percent of the dwelling units in a building or development (with a
minimum of one (1J unit) must be made accessible for individuals with mobility
impairments. In ad ition to providing access to those with mobility impairments,
when possible, the unit{s) shall also be pre-wired to facilitate the installation of
auxiliary devices to assist the hearing and the visually impaired. Alterations to
common areas such as entrances loBbies and recreation rooms must be made
accessible to and usable by individuals with disabilities to the maximum extent
feasible.
Exemptions:
A funding recipient is not required to make a dwelling unit or common area accessible if
doing so would impose undue financial and administrative burdens on the development.
The property owner or applicant, must submit cost estimates from a licensed architect or
engineer, demonstrating that compliance with this requirement constitutes an undue cost
burden, is technically infeasible, or otherwise impractical, to obtain an exemption to this
requirement.
CHAPTER VII
DEFINITIONS
1. General
In construing the provisions of these Multi-Family Housing Rehabilitation
Guidelines, words and terms not defined herein shall be interpreted in accordance
with their normal dictionary meaning or, in the absence thereof, customary usage.
Headings are only for convenience and shall not affect the meaning of any
provision of these Guidelines.
2. Definitions
The following are definitions of various terms as used in these Guidelines:
Accessible: A dwelling unit that is located on an accessible route and when
designed, constructed or altered or adapted can be approached, entered, and
used by individuals with physical disabilities.
Accessible Route: A continuous unobstructed path connecting accessible
elements and spaces in a building or facility that complies with the space and
reach standards prescribed by 24 CFR 8.32.
Adaptability: means the ability of certain elements of a dwelling unit, such as:
kitchen counters, sinks, wash basins and grab bars, to be acfded to, raised,
lowered or otherwise altered, to accommoaate the needs of persons with or
without disabilities, or to accommodate the needs of persons with different types or
degrees of disability.
Affordable rent: A rental amount that does not exceed 30 percent of the income
of a family whose income equals 80 percent of the area median family income or
as defined and published by HUD. These rents include an allowance for utility
expenses.
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 19 of 23
Alteration: means any change in a facility or its permanent fixtures or equipment.
It includes, but is not limited to, remodeling, renovation, rehabilitation,
reconstruction, changes or rearrangements in structural parts and extraordinary
repairs. Alteration does not include normal maintenance or repairs, re-roofing,
interior decoration, or changes to mechanical systems.
City: The City of Miami Beach.
Codes and Ordinances: Codes, ordinances and statutes of the City and Dade
County, including, but not limited to, the South Florida Building Code, the Zoning
Ordinance, and the Property Maintenance Standards.
Condominium: A system of ownership of individual units in a multi-unit structure,
combined with joint ownership of commonly used property (sidewalks, hallways,
stairs, etc.).
Housing and Community Development Division (HCDD): The Division of the
City of Miami Beach designated to administer Community Development Block
Grant (CDBG) funds received from HUD and to administer these Guidelines.
HUD: The U. S. Department of Housing and Urban Development.
Lender: Lender shall be defined as an institution with one or more offices in Dade
County. It may be any federal or state regulated banking institution including
federal or state chartered commercial banks, mutual savings banks, savings ana
loan associations, municipal or publicly constituted pension trusts, insurance
companies or corporations, credit unions, or other financial institutions authorized
to transact business in the State of Florida and which customarily provide service
or otherwise aid in the financing of mortgages located in the State of Florida, and
meet the minimum capital requirements as promulgated by its respective
supervisory board. For non-profit organizations, a lender shall also be any
Federal, State, or County organization that provides interest baring loans for
housing construction.
Loan Review Committee (LRC): A ten (10) member committee, (7 voting, 3 non-
voting) appointed by the City, responsible (or the review and recommendation of
those applications which will be submitted to the Mayor and City Commission for
consideration to receive funding under the Programs.
Low and moderate income household: A household, in which the combined
income of all adults does not exceed 80 percent of the median income for the
area, as determined by HUD.
Multi-Family Residential Property: A property that after rehabilitation will contain
a minimum of four (4) or more residential units meeting applicable codes and
standards.
Programs - The Interest Subsidy Program and the Matching Grant Program which
are the City's Multi-Family Housing Rehabilitation Programs referenced in these
Guidelines.
"Replacement cost of the completed facility" means the current cost of
construction and equipment for a newly constructed housing facility of the size and
type being altered. Construction and equipment costs do not include the cost of
land, demolition, site improvements, non-dwelling facilities and administrative
costs for project development activities.
"Substantial alteration": is one in which the cost of the alterations to a facility of
15 or more dwelling units (including scattered site housing) equals or exceeds 75
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City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
percent of the replacement cost of the completed facility. Substantial alterations
are subject to new construction accessibility requirements. Alterations that do not
meet the definition of substantial (i.e. the aevelopment altered has less than 15
units, or the costs are less than 75 percent of the replacement cost of the
completed facility) are covered by "other alterations".
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 21 of 23
EXHIBIT "A"
FEDERAL AND OTHER REQUIREMENTS
As the City of Miami Beach is providing this funding through Federal Community
Development Block Grant and/or HOME lnvestment Partnerships Program funds, all
parties agree to comply with the following statutes, regulations and executive orders, as
they appry. These requirements are incorporated herein by reference. ADDITIONALL V,
ALL PARTIES AGREE TO COMPL V WITH ALL EXISTING FEDERAL, STATE AND
LOCAL LAWS, REGULATIONS AND ORDINANCES HERETO APPLICABLE, AS
AMENDED. THESE REQUIREMENTS ARE INCORPORATED HEREIN BV
REFERENCE.
1. Freedom of Information and Privacy Acts
_ Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S.C.
552a)
2. Eaual Opportunity
_ Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1
_ Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended
_ Executive Order 11063, as amended by Executive Order 12259
_ Executive Orders 11246, 11265. 12138 and 12432
_ Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.170),
as amended
_ Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended
_ The Age Discrimination Act of 1975 (42 U.S.C. 6101)
_ The Fair Housing Amendments Act of 1988
3. Environmental Review
_ The National Environmental Policy Act (42 U.S.C. 4321, et seq)
_ The Council on Environmental Quality ~egulations (40 CFR Parts 1500-1508)
_ Environmental Review for the CDBG and the Housing Rehabilitation Programs
(24 CFR Part 58)
_ National Historic Preservation Act of 1966
_ National Flood Insurance Act of 1968 as amended by the Flood Disaster
Protection Act of 1973
4. Lead Based Paint
Housing assisted with Community Development Block Grant (CDBG) Program
and/or HOME Program funds are subject to the requirements of 24 CFR Part 35,
as amended, and the Lead-Based Paint Poisoning Prevention Act as amended by
Title X of the Housing and Community Development Act of 1992. Projects
assisted with CDBG and/or HOME funds may require notification to tenants,
disclosure of lead-based paint information, Identification of defective paint
surfaces, treatment of defective surfaces, and response to children with elevated
blood lead levels. On September 15,1999, U.S. HUD issued the final rule entitled
"Requirements for Notification, Evaluation and Reduction of Lead-Based Hazards
in Federall'y Owned Residential Property and Housing Receiving Federal
Assistance'. This regulation sets new requirements to prevent childhood lead
poisoning in housing assisted or being sold by HUD and other Federal agencies.
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 22 of 23
5. Asbestos
_ Asbestos Regulations (40 CFR 61, Subpart M)
_ _ U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos
Regulations (29 CFR 191.1101)
6. Handicapped Accessibility
_ Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Parts 8.9 and
41 )
7. Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended
_ The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)
_ Federal Labor Standards Provisions (29 CFR Part 5.5)
8. Grant Reaulations
_ Community Develo~ment Block Grants (24 CFR Part 570)
_ HOME Investment Partnerships Program (24 CFR Part 92)
City of Miami Beach
Multi-Family Housing Rehabilitation Program
Guidelines
Page 23 of 23