Resolution 2023-32524RESOLUTION NO. 2023-32524
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND/OR AUTHORIZING THE
FOLLOWING ACTIONS: (1) AUTHORIZING THE CITY MANAGER TO
RECAPTURE $296,795.88 OF HOME INVESTMENT PARTNERSHIP (HOME)
FUNDS, PREVIOUSLY ALLOCATED TO THE MADELEINE VILLAGE
APARTMENTS SEAWALL REHABILITATION PROJECT, AND REALLOCATE
SAID FUNDS TO HUD'S FY 2022 ACTION PLAN FOR THE ACQUISITION OF
SCATTERED SITES OR MULTI -FAMILY UNITS, TO BE USED AS AFFORDABLE
HOUSING UNITS WITHIN THE CITY; AND (2) APPROVING AND AUTHORIZING
THE CITY MANAGER TO TRANSMIT TO HUD A SUBSTANTIAL AMENDMENT
TO THE HUD FY 2022 ACTION PLAN; SAID AMENDMENT REFLECTING THE
ALLOCATION OF THE RECAPTURED HOME FUNDS TO THESE PROGRAM
PRIORITIES.
WHEREAS, the City is an entitlement recipient of U.S. Department of Housing and Urban
Development (HUD) formula grant programs and therefore is a recipient of HOME Investments
Partnership (HOME) funds; and
WHEREAS, HOME funds are used for affordable housing activities, including multi -family
rentals, and first-time homeownership; and
WHEREAS, HUD requires each entitlement community to submit an annual Action Plan
describing how it will utilize funding and resources to address priority needs identified in the City's
Consolidated Plan; and
WHEREAS, from time to time, it may be necessary for the City to process a "Substantial
Amendment" to the Five -Year Consolidated Plan and the annual Action Plan to allow for the
funding of new activities, modification of existing activities, or other program administrative actions;
and
WHEREAS, pursuant to 24 CFR §91.505 (a), the City is required by HUD to identify the
criteria to be used in determining if a proposed action will be considered a "Substantial
Amendment," as follows:
1. A change in allocation priorities or a change in the method of distributing funds;
2. Funding an activity using funds from any program covered by the Plan
(including program income) not previously described in the One Year Action
Plan; or
3. A change in the purpose, scope, location, or beneficiaries of an activity; and
WHEREAS, any proposed amendment considered a Substantial Amendment requires
approval by the City Commission; and
WHEREAS, in accordance with 24 CFR §91.505 (b), a Substantial Amendment requires
Citizen Participation; and
WHEREAS, HOME funds must be expended pursuant to the guidelines delineated in 24
CFR Part 92; and
WHEREAS, the HOME Program has timeliness requirements regarding the expenditure of
funds; and
WHEREAS, HOME funds must be committed to a project within two years of the City's
receipt and expended within five years; and
WHEREAS, the annual Action Plan is monitored throughout the year to ensure compliance
with federal regulations and progress towards the National Objective, which stipulates that HOME -
funded activities must create housing units that benefit low- and moderate -income persons who
earn at or below 80% of the Area Median Income (AMI); and
WHEREAS, the Madeleine Village Rehabilitation Project ("Project") reached substantial
completion in October 2022, and a balance of $296,795.88 ("Project Balance") remains; and
WHEREAS, the Project Balance was previously allocated to the Project from HOME
Investment Partnership (HOME) funds from the following prior HUD fiscal years: FY 16
($16,853,44); FY 17 ($12,751.93); FY 18 ($223,811.05); and FY 19 ($43,379.46); and
WHEREAS, the Administration recommends recapturing the Project Balance and
reallocating these HOME funds to the HUD FY 2022 Action Plan for the acquisition of scattered -
sites and/or multi -family units within the City, to increase affordable housing units and ensure
timely and compliant expenditure of HUD funds; and
WHEREAS, a Substantial Amendment would be required in order to incorporate the
recaptured Project Balance into the HUD FY 2022 Action Plan for these designated priorities; and
WHEREAS, as part of the citizen participation process, the City will schedule a public
hearing for March 27, 2023 and publish a thirty (30) day public comment period, from March 13,
2023 to April 12, 2023, for the proposed Substantial Amendment to the FY 2022 annual Action
Plan; and
WHEREAS, the City Manager is the designated agent for all HUD formula grants and
executes the grant applications, grant agreements, and other applicable documents on behalf of
the City.
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 approve and/or authorize the following actions: (1) authorize the City Manager to recapture
$296,795.88 of HOME Investment Partnership (HOME) funds, previously allocated to the
Madeleine Village Apartments Seawall Rehabilitation Project, and reallocate said funds to HUD's
FY 2022 Action Plan for the acquisition of scattered sites or multi -family units, to be used as
affordable housing units within the City; and (2) approve and authorize the City Manager to
transmit to HUD a Substantial Amendment to the HUD FY 2022 Action Plan; said Amendment
reflecting the allocation of the recaptured HOME funds to these program priorities.
PASSED and ADOPTED this 27 day of y%%QrG�- , 2023.
ATTEST:
MAR 3 1 2023
Rafael E. Granado, City Clerk
Dan Gelber, Mayor
APPROVED AS TO
FORM _S, L.XN. GU AGE
OR EXECU710N
City Artcr � ey )'Z� Oa:e
Resolutions - C7 H
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: March 27, 2023
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND/OR AUTHORIZING THE
FOLLOWING ACTIONS: (1) AUTHORIZING THE CITY MANAGER TO
RECAPTURE $296,795.88 OF HOME INVESTMENT PARTNERSHIP
(HOME) FUNDS, PREVIOUSLY ALLOCATED TO THE MADELEINE
VILLAGE APARTMENTS SEAWALL REHABILITATION PROJECT, AND
REALLOCATE SAID FUNDS TO HUD'S FY 2022 ACTION PLAN FOR THE
ACQUISITION OF SCATTERED SITES OR MULTI -FAMILY UNITS, TO BE
USED AS AFFORDABLE HOUSING UNITS WITHIN THE CITY, AND (2)
APPROVING AND AUTHORIZING THE CITY MANAGER TO TRANSMIT TO
HUD A SUBSTANTIAL AMENDMENT TO THE HUD FY 2022 ACTION PLAN;
SAID AMENDMENT REFLECTING THE ALLOCATION OF THE
RECAPTURED HOME FUNDS TO THESE PROGRAM PRIORITIES.
RECOMMENDATION
The Administration recommends approving the Resolution.
BACKGROUNWHISTORY
The City of Miami Beach (the "City') is a U.S. Department of Housing and Urban Development
(HUD) designated entitlement city as determined by the decennial census information on
population growth lag, overcrowding, age of housing stock, and poverty. The City has been an
entitlement community since 1975. As an entitlement city, Miami Beach automatically qualifies
for an annual allocation of federal funding under HUD's grant programs including the HOME
Investment Partnership (HOME) Program, created in 1992 to provide funding specifically for
affordable housing.
HUD requires each entitlement community to submit its One -Year Action Plan, on an annual
basis, describing how it will utilize funding and resources to address priority needs identified in
the citys Consolidated Plan. The One -Year Action Plan is a component of the Five -Year
Consolidated Plan required to be filed with HUD.
From time to time, it may be necessary for the City to process a "substantial amendment" to the
Five -Year Consolidated Plan and the One -Year Action Plan to allow for the funding of new
activities, modification of existing activities, or other program administrative actions. The City is
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required by HUD [24 CFR 91.505 (b)] to identify the criteria to be used in determining if a
proposed action will be considered a "substantial amendment' as follows:
1. A change in allocation priorities or a change in the method of distributing funds;
2. Funding an activity using funds from any program covered by the Five -Year
Consolidated Plan (including program income) not previously described in the One -Year
Action Plan; or
3. A change in the purpose, scope, location, or beneficiaries of an activity.
Any proposed amendment considered a substantial amendment requires approval by the City
Commission. Furthermore, in accordance with Citizen Participation requirements, a thirty (30)-
day public notice and public hearing is required to provide the opportunity for the public to review
and comment on the proposed substantial amendment. The City will consider all comments or
views received from the public concerning proposed substantial amendments in accordance
with HUD [24 CFR 91.105 (c)(3)]. A summary of these comments shall be attached to the
substantial amendment submitted to HUD.
The HOME Program has timeliness requirements regarding the expenditure of funds. HOME
funds must be committed to a project within two (2) years of the Citys receipt and expended
within five (5) years. The annual Action Plan is monitored throughout the year to ensure
compliance with federal regulations and progress towards the National Objective, which
stipulates that HOME -funded activities must create housing units that benefit low- and
moderate -income persons who earn at or below 80% of the Area Median Income (AMI ).
On January 17, 2018, the City Commission adopted Resolution No. 2017-29876, approving the
One -Year Action Plan for Federal Funds for FY 2017 and allocating funds to the Madeleine
Village Seawall ("Seawall Project'). On June 5, 2020, Resolution 2020-31283 allocated
additional FY 2019 funds to the Seawall Project, which reached substantial completion in
October 2022. No additional expenses are anticipated for Seawall Project completion. There is
a remaining balance of $296,795.88. The expiration date of the remaining funds varies between
September 30, 2024, through September 30, 2027, as illustrated in the table below.
Madeleine $16,853.44 HOME FY 2016 09/30/2024
$296,795.88 for the
Village $12,751.93 HOME FY 2017 09/30/2025
Acquisition of
Seawall $223,811.05 HOME FY 2018 09/30/2026
Affordable housing
$43,379.46 HOME FY 2019 09/30/2027
units within the city.
On June 22, 2022, the City Commission adopted Resolution 2022-32188 allocating a total of
$636,183.67 ($204,125.67 for FY 2019 and $432,058.00 for FY 2022) in Community
Development Block Grant (CDBG) funds for the acquisition of units to be added to the City's
affordable housing portfolio.
ANALYSIS
On June 22, 2022, the City Commission adopted Resolution 2022-32188 allocating a total of
$636,183.67 ($204,125.67 for FY 2019 and $432,058.00 for FY 2022) in Community
Development Block Grant (CDBG) funds for the acquisition of units to be added to the Citys
affordable housing portfolio.
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To maximize and leverage resources, the $296,795.88 in HOME funds proposed for recapture
will be combined with the CDBG funds for a total of $932,979.55 to increase affordable housing
units and ensure timely and compliant expenditure of HUD funds.
In accordance with the Citizen Participation Plan, the City advertised a Notice of Public hearing
and a 30-day Comment Period (March 13, 2023 — April 12, 2023). The Public Hearing will be
held on March 27, 2023. Public comments received will be included in the amended Action Plan
to be submitted to HUD for final review and approval.
The City owns and operates 89 affordable housing rental units purchased with various sources
of federal funding. The Administration is currently identifying viable properties for acquisition and
will present possible selections at the April 2023 City Commission meeting.
As part of the HOME Program funding requirements, the acquired property would have a thirty
(30)-year affordability period. Eligible expenditures for the recaptured funds include an
appraisal, property inspection, acquisition, and rehabilitation if necessary. Another potential
strategy for utilization of the acquired units would be to award First-time Homebuyer funds to a
prospective homebuyer for assistance to purchase the acquired property.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
HOME Program and CDBG funds are funded through HUD.
CONCLUSION
The Administration recommends approval of the amendment to the One -Year Action Plan,
recapturing and reallocating HOME Program funds, and ensuring the timely and compliant
expenditure of these HUD funds.
Applicable Area
Citywide
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
No
Does this item utilize G.O.
Bond Funds?
251
Strategic Connection
Mobility - Increase housing options for current and future residents.
Legislative Tracking
Housing and Community Services
ATTACHMENTS:
Description
o Resolution
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