Resolution 2021-31844RESOLUTION NO. 2021-31844
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, MODIFYING RESOLUTION NO. 2021-31772 TO
CORRECT THE ALLOCATION OF THE FY 21 STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) FUNDS IN THE AMOUNT OF $394,363, AS FOLLOWS:
(i) TO THE NEPTUNE APARTMENTS REHABILITATION PROJECT IN THE
AMOUNT OF $98,590, INSTEAD OF $200,000; (ii) TO THE FIRST TIME
HOMEBUYER PROGRAM AND HOMEOWNER REHABILITATION PROGRAM
IN THE AMOUNT OF $256,337, INSTEAD OF $154,927.
WHEREAS, the City receives funding from the Florida Housing Finance Corporation
(FHFC) for the State Housing Initiatives Program (SHIP); and
i
WHEREAS, on June 10, 2021, FHFC notified the City of the FY 21 allocation in the
amount of $394,363 that will become available after October and will be disbursed in multiple
payments over the course of several months; and
WHEREAS, State Housing Initiatives Partnership (SHIP) Act, § 420.907-420.9079,
Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, require local
governments to develop a one to three-year Local Housing Assistance Plan (LHAP) outlining
how funds will be used; and
WHEREAS, the City advertised a Notice of Funding Availability for FY 21 SHIP funds
and Notice of Public Hearing and Public 30 -day Comment Period (July 5 — August 3, 2021); and
the City advertised the substantial amendment to the FY 20 Annual Action Plan for the with a
Notice of Public Hearing to be held on July 20, 2021 and Public 30 -day comment period (July 5 -
August 3, 2021; and
WHEREAS, on July 28, 2021, the Mayor and City Commission approved Resolution No.
2021-31772, authorizing the City Manager to perform the following actions: (1) to recapture
$220,000 of FY 20 HOME Investment Partnership (HOME) funds previously allocated to tenant
based rental assistance, and to reallocate said funds to the Homeownership Assistance
Program in order to ensure compliance with HUD expenditure deadlines; and (2) to allocate !the
FY 21/22 SHIP funds in the following manner: (A) to the Neptune Apartments Rehabilitation
Project, in the amount of $200,000 (B) to the First Time Homebuyer Program and Homeowner
Rehabilitation Program, in the amount of $154,927; and (C) to Administrative costs, in;the
amount of $39,436; and authorized the City Manager to revise action plans to US Department of
Housing and Urban Development (HUD); and further authorized the City Manager and 'City
Clerk to execute any agreements or related documents with respect to the foregoing, including
agreements to be signed by sub -recipients; and
WHEREAS, the current funding allocations would be out of compliance with program
set -asides towards 65% homeownership assistance requirement pursuant to Section
420.9075(5), Florida Statutes; therefore, the funding allocations would need to be corrected to
reflect the following: $98,590 towards Phase 2 of the Neptune Apartments rehabilitation project;
$256,337 towards homebuyer and homeowner rehabilitation activities; and $39,436 towards
administrative costs.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
modify Resolution No. 2021-31772 to correct the allocation of the FY 21 State Housing
Initiatives Partnership (SHIP) funds in the amount of $394,363, as follows: (i) to the Neptune
Apartments Rehabilitation Project in the amount of $98,590, instead of $200,000; (ii) to the First
Time Homebuyer Program and Homeowner Rehabilitation Program in the amount of $256,337,
instead of $154,927.
PASSED and ADOPTED this 17 day of Se:glem„ er- 12021.
ATTEST:
I.INCORPi ORATED:
/ SEP 2 ,
RAFAEL E. GRANADO, CITY CLERK
)AN GELBER, MAYOR
i
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney Date
Resolutions - C7 M
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 17, 2021
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, MODIFYING RESOLUTION NO. 2021-31772
TO CORRECT THE ALLOCATION OF THE FY 21 STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) FUNDS IN THE AMOUNT OF $394,363,
AS FOLLOWS: (1) TO THE NEPTUNE APARTMENTS REHABILITATION
PROJECT IN THE AMOUNT OF $98,590, INSTEAD OF $200,000; (II) TO
THE FIRST TIME HOMEBUYER PROGRAM AND HOMEOWNER
REHABILITATION PROGRAM IN THE AMOUNT OF $256,337, INSTEAD OF
$154,927.
RECOMMENDATION
The Administration recommends approving the modification of the Resolution.
BACKGROUND/HISTORY
HOME Funds
There are no changes to the HOME funding allocation previously approved in Resolution No.
2021-31772.
SHIP Funds
On July 28, 2021, the Mayor and City Commission approved Resolution No. 2021-31772,
authorizing the allocation of FY 21/22 SHIP funds in the following manner: allocate $200,000 in
FY 21 State Housing Initiatives Partnership (SHIP) funds to the Neptune Apartments
Rehabilitation Project, $154,927 to the First Time Homebuyer Program and Homeowner
Rehabilitation Program; and $39,436 towards administrative costs.
Staff reviewed program regulations in preparation of executing the program agreement and
found that the funding allocations would be out of compliance with SHIP Statute 420.9075 (5).
The regulation states that: at least 65 percent of the funds made available in each county and
eligible municipality must be reserved for home ownership for eligible persons; up to 25 percent
of the funds may be reserved for rental housing for eligible persons, such as multi -family
rehabilitation projects; and 10% for administrative costs.
The SHIP Program is governed by the SHIP rule outlined in Florida Statute 420.9075. There
are several program set -asides that must be met with each funding allocation:
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• At least 65 percent of the funds made available in each county and eligible municipality
from the local housing distribution must be reserved for home ownership for eligible
persons.
• At least 75 percent of the funds made available in each county and eligible municipality
from the local housing distribution must be reserved for construction, rehabilitation, or
emergency repair of affordable, eligible housing.
• At least 30 percent of the funds deposited into the local housing assistance trust fund
must be reserved for awards to very -low-income persons (up to 50% AMI); and at least an
additional 30 percent of the funds deposited into the local housing assistance trust fund
must be reserved for awards to low-income persons (up to 80% AMI).
• A minimum of 20 percent of the SHIP allocation must be used to serve persons with
special needs as defined in 420.0004 Florida Statutes.
• Up to 25% of allocation can be reserved for rental development or rental assistance.
The current funding allocation to the Neptune Apartments exceeds the 25 percent required for
rental housing. As a result, the funding allocation would have to be reduced to $98,590. The
balance of the funds required for the rehabilitation project in the amount of $101,410 would be
allocated from the Neptune Apartments' Replacement Reserves account, which is funded by
residential rents collected.
ANALYSIS
Neptune Apartments
The City applied for and received a grant from the Federal Emergency Management Agency
(FEMA) for $140,596,04 for the rehabilitation of the Neptune Apartments. However, a $200,000
funding gap remains for Phase 2 that cannot be met with federal funds.
The Administration proposed the FY 21/22 SHIP funding allocation of $200,000 for the project
that was approved in Resolution No. 2021-31772, but subsequently confirmed that it would
exceed the statutory set-aside for rental housing defined in SHIP statute 420.9075 (5): "Up to
25 percent of the funds made available in each county and eligible municipality from the local
housing distribution may be reserved for rental housing for eligible persons."
As such, the new proposed allocation would be the following:
Phase 2
CDBG
FEMA Hazard
SHIP FY 22- Replacement
Project
allocation
M itigation
pending Reserves
Budget
(Estimate,
Grant -pending
disbursement in (revenue
pending
approval of an
up to four originating
Phase 1
amendment to
payments after from rent
closeout)
the scope of
October 1, 2021 collection)
work
$1,052,029
$735,921.61
$140,596.04
$289,NG$98,590 1$101,410
The FEMA and SHIP funding allocations outlined are contingent upon funding availability and
disbursement. The City will utilize Residential Replacement Reserves to fund the project until
FEMA funds are available, as the City must meet the CDBG expenditure deadline of July 27,
Page 594 of 1657
2022. Replacement reserves will also be utilized to fund
allocated SHIP funds of $101,410. Once funds are identified
to be released by the Procurement Department within 30 days
Homeowner Assistance
To meet the SHIP homeowner set-aside requirements, the
21/22 S H I P funds is the following:
FY21 SHIPAIIocation
Rental Development- Phase 2 of the Neptune Apartments
Rehabilitation Project (up to 25% of the allocation)
Purchase Assistance with Rehabilitation and Homeowner
Rehabilitation (up to 65% AMI)
the balance from the previously
. the I nvitation to Bid is estimated
new proposed allocation of FY
$98,590
$256,337
Administrative Costs (up to 10% of allocation) 1$39,436 1
Currently, there are 42 persons on the City's waitlist for homebuyer assistance, including five (5)
City employees. Staff must ensure the following program requirements must be met when
awarding SHIP funds to waitlist applicants:1) at least 30 percent of funds must be reserved for
very -low-income persons earning up to 50% AMI, and 2) at least an additional 30 percent of
funds must be reserved for low-income persons eaming up to 30% AMI. FY 21/22 SHI P fund's
must be expended by June 30, 2024.
The Administration will ensure available funds are maximized to assist as many eligible
households as possible on the waitlist. HOME and SHIP funds can be combined to assist a
household, when needed. I n addition, staff will update the Mayor and Commission on any award
exceeding $50,000 prior to the disbursement of funds.
SUPPORTING SURVEY DATA
Not applicable.
Amount(s)/Account(s):
180-0530-000346-23-404-534-00-00-00-53419
$220,000
152-0530-000349-00-404-534-00-00-00-57210
$394,363
CONCLUSION
The Administration recommends to modify Resolution No. 2021-31772 as the following: ;1)
recapture of $220,000 FY 20 HOME Investment Partnership (HOME) Program funds
previously allocated to Tenant -Based Rental Assistance and reallocation to the Homeownership
Assistance Program; 2) to allocate the FY 21 State Housing Initiative Partnership (SHIP)
Program Funds in the amount of $394,363: (i) to the Neptune Apartments rehabilitation project
in the amount of $200,000 $98,590; (ii) to the Homebuyer and Homeowner Rehabilitation
Programs in the amounts of $464;927- $256,337; (iii) and administrative costs in the amount of
$39,436; and (3) submit the revised FY 20 Action Plan to HUD and further authorize the City
Manager and City Cleric to execute City Interdepartmental Agreements and other agreements to
be signed by Sub -recipients.
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Applicable Area
Not Applicable
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
Mobility - Support affordable, compatible workforce housing.
Legislative Tracking
Housing and Community Services
Sponsor
Commissioner Michael Gongora
ATTACHMENTS:
Description
❑ Resolution
Page 596 of 1657