99-23286 RESO
RESOLUTION NO. 99-23286
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE A TT ACHED HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH
MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), COMMITTING FUNDS
PREVIOUSLY ALLOCATED BY THE CITY TO MBCDC IN
THE AMOUNT OF SIX HUNDRED THOUSAND DOLLARS
($600,000), FROM THE CITY'S HOME PROGRAM
ALLOCATION FROM FISCAL YEAR 1999/2000 FOR
ELIGIBLE COMMUNITY HOUSING DEVELOPMENT
PROJECTS.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of
Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funding through
the HOME Investment Partnerships (HOME) Program; and
WHEREAS, the intent of the HOME Program is to expand the supply of housing for
income-eligible households and to encourage collaboration with the private sector and not-for-profit
housing providers; and
WHEREAS, on Apnil 8, 1993, the Mayor and City Commission approved Resolution No.
93-20756, designating Miami Beach Community Development Corporation as a Community
Housing Development Organization (CHDO); and
WHEREAS, in acc@rdance with the HOME Program regulations, the City must reserve a
minimum of fifteen (15) percent of each fiscal year's HOME allocation for a CHDO set-aside for
investment in housing to be developed, sponsored or owned by CHDOs; and
WHEREAS, on July 7, 1999, the Mayor and City Commission adopted Resolution No. 99-
23238 approving the City's fiscal year 1999/2000 One-Year Action Plan for Federal funds, including
the fiscal year 1999/2000 budget allocation for the HOME Program CHDO project set-aside; and
WHEREAS, the Administration recommends that the Mayor and City Commission approve
and authorize the Mayor and City Clerk to execute the attached HOME Program agreement with
Miami Beach Community Development Corporation.
NOW, THEREFORE, BE IT RESOL VED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are hereby authorized to execute the attached HOME Investment Partnerships (HOME) Program
agreement with Miami Beach. Community Development Corporation (MBCDC), committing funds
previously allocated by the City to MBCDC in the amount of Six Hundred Thousand Dollars
($600,000) from the City's HOME Program allocation for fiscal year 1999/2000 for eligible
Community Housing Development Organization projects.
PASSED AND ADOPTED THIS 17th DAY OF September, 1999
ATTEST:
J~~tl\t ~~
CITY CLERK
~~
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci miami-beach fl.us
COMMISSION MEMORANDUM NO. ~ 9
TO:
Mayor Neisen O. Kasdin and
Members ofthe City C mmission
DATE: September 14, 1999
FROM:
Sergio Rodrigue2:
City Manager
A RESOL OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
COMMITTING FUNDS PREVIOUSLY ALLOCATED BY THE CITY TO
MBCDC IN THE AMOUNT OF SIX HUNDRED THOUSAND DOLLARS
($600,000) FROM THE CITY'S HOME PROGRAM ALLOCATION FROM
FISCAL YEA.R 1999/2000 FOR ELIGIBLE COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION PROJECTS.
ADMINISTRATION RECQMMENDA TION
SUBJECT:
Adopt the Resolution.
BACKGROUND
The HOME Investment Partherships (HOME) Program requires the City, in its capacity as a
participating jurisdiction, to re$erve a minimum of 15 percent of its annual allocation for a particular
type of not-for-profit called a Community Housing Development Organization (CHDO). The CHDO
is required to utilize the HOME Program funds for the development of housing in which the CHDO
is the owner, sponsor or deveEoper of the housing.
On July 7, 1999, the Mayor and City Commission adopted Resolution No. 99-23238, which
approved the City's One-Year Action Plan for Federal Funds for fiscal year 1999/2000. The Plan
lists the budget allocations for the programs and activities to be implemented through the
Community Development Block Grant (CDBG) Program, the HOME Program, and the Emergency
Shelter Grants (ESG) Program..
ANALYSIS
The One- Year Action Plan for fiscal year 1999/2000 allocates HOME Program funds in the amount
of $600,000 to the City's designated CHDO, Miami Beach Community Development Corporation
AGENDA ITEM c.. ll="
DATE~
173
COMMISSION MEMORANDUM
PAGE 2
(MBCDC), for CHDO operating expenses. The HOME Program requires the City to commit funds
within 24 months after receiving the annual allocation. In order to commit the HOME Program
funds, it is necessary to exe~ute a contractual agreement with MBCDe. The attached HOME
agreement satisfies the commitment requirement.
The agreement commits the funds to the CHDO to start the process of identifYing a specific project.
Once the funds are committed via the attached agreement, the CHDO is permitted to utilize up to
ten percent ofthe funds, or $610,000, for eligible project-specific pre-development costs, including
technical assistance, site control and seed money in accordance with the HOME Program regulations.
In this maImer, MBCDC can a~quire property and obtain site control, conduct feasibility studies, and
conduct certain predevelopment activities. Once a specific building(s) has been identified, the
CHDO is required to submit the proposed site and transaction information to the City, to be reviewed
and presented to the Loan Review Committee for recommendation. The proposed site and
transaction is then submitted to the City Commission for a final decision on site approval.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt a Resolution
authorizing the Mayor and City Clerk to execute the attached HOME Investment Partnerships
(HOME) Program agreement with Miami Beach Community Development Corporation (MBCDC),
committing funds previously allocated by the City to MBCDC in the amount of Six Hundred
Thousand Dollars ($600,000) from the City's HOME Program allocation from fiscal year 1999/2000
for eligible Community Housjng Development Organization projects.
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F:IDDHP\$ALLIBETHIMBCDC2199FUNDRE MEM
174
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
.__________________._______ ___.____________________.________________________________M_ _, ___ ____M____M____________ ___ ____M.a__M_________________________ _ ____ __________
COMMISSION MEMORANDUM NO, (pI ~.- q 9
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: September 14, 1999
FROM:
Sergio Rodriguez
City Manager
A REsoLurnoN OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MlAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
COMMITT1NG FUNDS PREVIOUSLY ALLOCATED BY THE CITY TO
MBCDC IN THE AMOUNT OF SIX HUNDRED THOUSAND DOLLARS
($600,000) F~OM THE CITY'S HOME PROGRAM ALLOCATION FROM
FISCAL YEAR 1999/2000 FOR ELIGIBLE COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION PROJECTS.
ADMINISTRATION REqOMMENDATION
SUBJECT:
Adopt the Resolution.
BACKGROUND
The HOME Investment Partnerships (HOME) Program requires the City, in its capacity as a
participating jurisdiction, to neserve a minimum of 15 percent of its annual allocation for a particular
type of not-for-profit called a:Community Housing Development Organization (CHDO). The CHDO
is required to utilize the HOME Program funds for the development of housing in which the CHDO
is the owner, sponsor or developer of the housing.
On July 7, 1999, the Mayor and City Commission adopted Resolution No. 99-23238, which
approved the City's One-Year Action Plan for Federal Funds for fiscal year 1999/2000. The Plan
lists the budget allocations for the programs and activities to be implemented through the
Community Development Block Grant (CDBG) Program, the HOME Program, and the Emergency
Shelter Grants (ESG) Program.
ANAL YSIS
The One- Year Action Plan for fiscal year 1999/2000 allocates HOME Program funds in the amount
of $600,000 to the City's designated CHDO, Miami Beach Community Development Corporation
AGENDA ITEM
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DATE
(MBCDC), for a CHDO Set-Aside to provide rental and/or homeownership opportunities. The
HOME Program requires the City to commit funds within 24 months after receiving the annual
allocation. In order to commit the HOME Program funds, it is necessary to execute a contractual
agreement with MBCDC. The attached HOME agreement satisfies the commitment requirement.
The agreement commits the funds to the CHDO to star: the process of identifying a specific project.
Once the funds are committed via the attached agreement, the CHDO is permitted to utilize up to
ten percent of the funds, or $60,000, for eligible project-specific pre-development costs, including
technical assistance, site control and seed money in acce.rdance with the HOME Program regulations.
In this manner, MBCDC can acquire property and obtain site control, conduct feasibility studies, and
conduct certain predevelopment activities. Once a ~;pecific building(s) has been identified, the
CHDO is required to submit the proposed site and translction information to the City, to be reviewed
and presented to the Loan Review Committee for recommendation. The proposed site and
transaction is then submitted to the City Commission for a final decision on site approval.
CONCLUSION
The Administration recommends that the Mayor end City Commission adopt a Resolution
authorizing the Mayor and City Clerk to execute th~ attached HOME Investment Partnerships
(HOME) Program agreement with Miami Beach Community Development Corporation (MBCDC),
committing funds previously allocated by the City to MBCDC in the amount of Six Hundred
Thousand Dollars ($600,000) from the City's HOME Program allocation from fiscal year 1999/2000
for eligible Community Hm.lsing Development Organlzation projects.
SR/C~~~S
F.\DDHP\$ALL\BETH\MBCDC2\99FUNDRE,MEM
HOME PROGRAM AGREEMENT
THIS AGREEMENT, entered ihto this17thday of ~_,1999 by and between the CITY OF MIAMI
BEACH, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami
Beach, Florida, (hereinafter referred to as the City), and the MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION, a not-for-profit Florida corporation, with offices located at 1205
Drexel Avenue, Miami Beach, Florida (hereinafter referred to as MBCDC).
WITNESSETH:
WHEREAS,on February 18, 1992, the City was designated by the U.S. Department of Housing and
Urban Development (HUD) as a Participating Jurisdiction for the receipt of funds through the HOME
Investment Partnerships (HOME) Program under 24 CFR 92; and
WHEREAS, the City has entered into an agreement with HUD for the purpose of conducting an
affordable housing program with federal financial assistance under the HOME Program; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No. 93-20756,
designating Miami Beach Community Development Corporation (MBCDC) as a qualified Community
Housing Development Organization (CHDO) under the HOME Program; and
WHEREAS, in accordance with the HOME Program regulations, the City must commit a minimum
of fifteen percent of each fiscal year's HOME allocation for a CHDO set-aside, for investment in housing to
be developed, sponsored or own~d by CHDOs; and
WHEREAS, on July 7, 1999, the Mayor and City Commission adopted Resolution No. 99-23238
approving the City's fiscal year 1999/2000 One- Year ActLon Plan for Federal funds, including the budget
allocation of CHDO project set-aside funds to MBCDC; and
WHEREAS, MBCDC warrants and represents that it possesses the legal authority to enter into this
agreement, by way of a resolution, motion, or similar action that has been duly adopted or passed as an official
act of the MBCDC governing body, authorizing the execution of this agreement, including all understandings
and assurances contained herein, and authorizing the person identified as the official representative of
MBCDC to act in connection with this agreement and to provide such additional information as may be
required; and
WHEREAS, it is acknowledged and agreed that funds to be granted to MBCDC derive from Federal
funds appropriated to the City by HUD for the uses and purposes herein referred to and, accordingly, it is
acknowledged and agreed that thjs agreement is entered into in compliance by the parties with all applicable
provisions of Federal, State and Iocallaws, statutes, rules and regulations.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto
agree as follows:
1
ARTICLE ][
DEFINITIONS
As used in this agreement the tenus listed below shall have the following meanings:
(a) HOME: HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended.
(b) HUD: u.s. Department of Housing and Urban Development or any successor agency.
(c) CHDO: Community Housing Development Organization as defined in the HOME Investment
Partnerships Program, Final Rule, 24 CFR Part 92, as amended.
(d) Funds: HOME Program funds.
(e) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92, September
16, 1996, and any amendments thereto: Any term defined in the HOME Investment Partnerships Program,
Final Rule, not otherwise defined in this agreement, shall have the meaning set forth in said Rule.
ARTICLE ][1
ALLOCATION OF HOME FUNDS
In accordance with the Scope of Services (Exhibit A) attached hereto, the City agrees to reserve fiscal
year 1999/2000 funds of Six Hundred Thousand dollars ($600,000) (Funds) for projects to be developed,
sponsored or owned by MBCDC.in its capacity as the city', designated Community Housing Development
Organization (CHDO) under the HOME program.
ARTICLE HI
HOME AGREEMENT DATED SEPTEMBER 14. 1999
That certain HOME Program CHDO Operating agn:ement executed September 14, 1999 between the
City and MBCDC is incorporated herein by reference.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS
PRQVIDED UNDER THE HOME PROGRAM
MBCDC expressly agrees to the following:
(a) It will execute Project agreement(s) with the City in order to commit the Funds to specific eligible
CHDO projects. The City, at its sole discretion, may require commitment of the Funds within a time period
that is in the best interest of the <City in order to avoid recapture of the Funds by HUD.
(b) It will maintain a financial management system that conforms to the financial accountability
standards of24 CFR 84.21, "Standards for Financial Management Systems."
(c) The Funds must be provided to MBCDC, its subsidiary or a partnership of which it or its
subsidiary is the managing gener~l partner. If MBCDC OWlS a project in partnership, it or its wholly owned
for -profit or non-profit subsidiary must be the managing f;eneral partner. In acting in any of the capacities
specified, MBCDC must have effective project control.
(d) Up to 10% ofthe Funds reserved herein may be used for project-specific assistance in accordance
2
with 24 CFR S 92.301 and the Scope of Services (Exhibit A). Project-specific assistance provided to MBCDC
shall be repayable from construction loan proceeds or other )roject income, except if there are impediments
to project development reasonably beyond the control ofMBCDC.
ARTICLE V
METHOD OF PAYMENT
(a) MBCDC shall be paid for eligible costs permitted under the Scope of Services (Exhibit A), based
on anticipated or actual costs, with supportive documentation for expenses that are considered reasonable and
necessary and approved by MBCDC's authorized representative.
(b) Any payment due under the terms of this agreement may be withheld pending the receipt and
approval by the City of all reports and documents which MBCDC is required to submit to the City pursuant
to the terms of this agreement or any amendments thereto.
(c) MBCDC understands and agrees that disbursement of funds under this agreement are only to be
requested when the Funds are needed for payment of eligible activities, in accordance with 24 CFR S92.301.
(d) The City desires to enter into this agreement only if in so doing it can retain the right of approval
over the disbursement of HOME funds for the individual real estate transactions contemplated herein.
MBCDC shall be required to submit all necessary documentation relative to the aforestated transactions to
the City's Community/Economic Development Department for review at a minimum of forty-five (45) days
prior to the expected disbursement of HOME funds for the individual transactions.
(e) The City shall be immediately notified, in writing, if a project or site transaction is terminated,
whether voluntarily by MBCDC or otherwise. Except as provided in 24 CFR S92.301 (a)(3) and (b)(3), a
HOME assisted project that is terminated before completion is an ineligible activity and any HOME funds
invested in the project must be repaid to the City in accordance with 24 CFR S92.503(b).
ARTICLE VII
TERM OF AGREEMENT
This agreement shall beclome effective on October 1, 1999 and shall continue until September 30,
2001.
ARTICLE VIII
NOTICES
All notices shall be sent to the parties at the following addresses, with copies to the Office of the City
Attorney:
City: Christina M. Cuervo, Assistant City Manager
City of Miami Beach
1700 Convention Center Dr:ve
Miami Beach, FL 33139
3
MBCDC:
Denis Russ, President
Miami Beach Community Development Corporation
1205 Drexel Avenue
Miami Beach, FL 33139
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their
duly authorized officials on the day and date first above indicated.
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION,
a Florida not-for-profit corporation
ATTEl ~ ~.
Secretary
President
ATTEST:
~r r74-A~
CITY OF MIAMI BEACH
a Flori unicipal corporation
Mayor
City Clerk
f: bs: MBCDC:99/00fund,res
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1ilL ~
Cily Aitorney
J~ /q9
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4
EXHIBIT A
SCOPE OF SERVICES
Term of Agreement
Total funds in the amount of $600,000 are reserved as follows:
Fiscal year 1999/2000 CHDO set-aside funds in the amount of $600,000 are reserved until September
30,2001 for investment in HOME projects to be developed, sponsored or owned by MBCDC in its
capacity as a CHDO. The Funds will be utilized by MBCDC in a manner consistent with the city's
approved Action Plan for Federal Funds. Ten percent of the funds, $60,000, may be used for pre-
development loans as summarized in the table below.
Implementation
Project-specific technical assistance and site control loans and project-specific seed money loans shall be
available to MBCDC upon the review and approval of the City Manager or his designee of the proposed
project(s). MBCDC shall assure that all earnest money deposits shall be refundable and subject to inspection
and funding contingencies, which will provide the City and its Loan Review Committee time and opportunity
to review each specific project site and transaction. Upon Loan Review Committee approval, a project
agreement shall be prepared and forwarded to the Miami Beach City Commission for consideration.
Use of Funds
(1) HOME funds used for project-specific pre-development must be expended in accordance with
24 CFR 992.301. The minimum amount of HOME funds that must be invested in a project involving rental
housing or homeownership is $1,000 per HOME-assisted unit. The maximum amount of HOME funds that
may be invested in a project involving rental housing or homeownership may not exceed the per-unit dollar
limits established under section 221(d)(3) of the National Housing Act that apply to the area in which the
housing is located (Exhibit B), and which may be amended from time to time.
(2) Before committing funds to a project, the City shall evaluate the project in accordance with
adopted guidelines. The City shall not invest any more HOME funds, in combination with other
governmental assistance, than is necessary to provide affordable housing.
5
PROJECT SPECIFIC PRE-DEVELOPMENT LOANS
Technical Assistance and Site Seed Money Loans
Control Loans
Purpose Establish preliminary feasibility of Covers pre-construction cost for a
a specific project specific project
Timing Used prior to gaining site control Must have site control, preliminary
financial commitments and capable
development team
Uses Limited to customary and Preconstruction costs, including but
reasonable costs of: not limited to:
* Initial feasibility study * Cost of construction loan
* Consulting fees commitments
* Costs of preliminary financial * Architectural plans and
application specifications
* Fees: architects, legal, * Costs of zoning approvals
engineers, development team * Costs of engineering studies
* Site control expenses * Legal fees
* Title clearance costs
Form of Loan, amortizing or non-amortizing Loan, amortizing or non-amortizing
Assistance at discretion of the City at discretion of the City
Repayment Repaid from construction loan or Repaid from construction loan or
other project income. May be other project income. May be
waived if there are impediments to waived if there are impediments to
project development or if project is project development or if project is
deemed infeasible deemed infeasible.
Environmental Environmental clearance is not Requires environmental clearance
Clearance required prior to expenditure of prior to commitment of funds.
funds.
6
EXHIBIT B;
HOME PROGRAM MAXIMUM PER-UNIT SUBSIDY LIMITS
Location OBR 1 BR 2BR 3BR 4BR
Dade County 61,950 71,013 86,352 111,709 122,622
source: Jacksonville Multifamily Housing PrQgram Center
221(d)(3) maximum mortgage limits .J elevator
Base City: Miami
b, fmbdc.9900fund.agr
7