99-23287 RESO
RESOLUTION NUMBER 99-23287
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE ATTACHED MULTI-FAMILY HOUSING
REHABILITATION PROGRAM MATCHING GRANT
AGREEMENT WITH THOMAS J. SARELAS IN THE
AMOUNT OF $41,211 IN COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH
THE MULTI-FAMILY HOUSING REHABILITATION
PROGRAM FOR THE REHABILITATION OF THE
PROPERTY LOCATED AT 710 PENNSYLVANIA AVENUE,
MIAMI BEACH, TO PROVIDE FOUR (4) RENTAL
DWELLING UNITS FOR INCOME-ELIGIBLE TENANTS.
WHEREAS, the City has established a program to encourage the rehabilitation of existing
substandard multi-family buildings using funds from the u.s. Department of Housing and Urban
Development (HUD); and
WHEREAS, the Multi-Family Housing Rehabilitation Program (Program) is administered
by the Housing Division of the City's Community/Economic Development Department; and
WHEREAS, on July 16, 1997, the Mayor and City Commission approved and adopted
revised Guidelines for the Multi-Family Housing Rehabilitation Program; and
WHEREAS, the City has received an application under the Program Guidelines for funding
the rehabilitation of an existing building located at 710 Pennsylvania Avenue, which contains six
(6) apartment units, consisting of four (4) one-bedroom units and two (2) two-bedroom units; and
WHEREAS, the Owner of this property, Thomas J. Sarelas (Owner) has agreed to offer a
minimum of four (4) of the six (6) residential units at reduced rental rates for a minimum of five (5)
years as available rental housing; and
WHEREAS, the City's Loan Review Committee, at its June 18, 1999 meeting, reviewed the
application for assistance and recommended funding for the proposed rehabilitation project in the
amount of $41 ,211 for approval by the Mayor and City Commission; and
WHEREAS, the Administration now requests that the attached Matching Grant Agreement
be approved by the Mayor and City Commission and executed by the Mayor and City Clerk.
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 authorized to execute the attached Multi-Family Housing Rehabilitation Program Matching Grant
Agreement with Thomas J. Sarelas in the amount of $41 ,211 in Community Development Block
Grant (CDBG) Program funds through the Multi-family Housing Rehabilitation Program for the
rehabilitation of the property located at 710 Pennsylvania Avenue, Miami Beach, to provide four (4)
rental dwelling units for income-eligible tenants.
PASSED AND ADOPTED THIS 17th DAY OF September
, 1999.
ATTEST:
Jkk\t ~~
ROBERT PARCHER, CITY CLERK
710_PEN.RES
APPROVED p.s TO
FORM & LANGUAGE
& FOR EXECUTION
1Al khPuit- J/2b/?(J
Ciiy Attorney Dote
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http \\cLmiami-beach.f1 us
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Neisen O. Kasdin and
Members of the City C ission
DATE: September 14, 1999
FROM: Sergio Rodriguez
City Manager
SUBJECT: A RESO TION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY
HOUSING REHABILITATION PROGRAM MATCHING GRANT
AGREEMENT WITH THOMAS J. SARELAS IN THE AMOUNT OF $41,211
IN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
FUNDS THROUGH THE MUL TI-F AMIL Y HOUSING REHABILITATION
PROGRAM FOR THE REHABILITATION OF THE PROPERTY LOCATED
AT 710 PENNSYLVANIA AVENUE, MIAMI BEACH, TO PROVIDE FOUR
(4) RENTAL DWELLING UNITS FOR INCOME-ELIGIBLE TENANTS.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
The City administers the Multi-Family Housing Rehabilitation Program through the Housing
Division of the Community and Economic Development Department. Since 1981, the City has
provided financial assistance to property owners through this Program resulting in the successful
renovation of over 1,250 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 Program Guidelines, adopted by the Mayor and City Commission on July 16, 1997, require that
buildings rehabilitated thereunder be maintained in rental use for at least five (5) years. The
proposed Matching Grant Agreement with the property owner includes stipulations requiring
repayment to the City of the full amount of the Grant in case the Owner fails to perform the
requirements of the Agreement.
AGENDA ITEM Q 1 G
DATE~
185
COMMISSION MEMORANDUM
Page 2
ANALYSIS:
710 Pennsylvania Avenue - Funding Recommended: $41,211
The property consists of a two-story, six (6) unit apartment building at 710 Pennsylvania Avenue,
containing four (4) one-bedroom units, and two (2) two-bedroom units. The building was built in
1924 as an apartment building, and the architecture of the structure is Mission style. The building
is not included in the City's register of historic buildings and is not considered architecturally
significant. The building, however, is located within the historic district, and it will need to be
reviewed by the State Historic Preservation Officer (SHPO).
The building is a concrete block structure with a total of approximately 4,069 square feet of enclosed
space. The site consists of Lot 6 of Block 46, of OCEAN BEACH ADDITION #3, according to the
plat thereof recorded in Plat Book 2 at Page 81, of the Public Records of Miami-Dade County,
Florida. The lot is 50' x 140' and contains 7,000 square feet, more or less.
The Owner proposes to rehabilitate the building maintaining the current layout which provides an
average of 761 square feet per unit. The units exceed the minimum average area required by the
Program Guidelines. The Owner has estimated the cost of rehabilitation to be $82,422, including
labor, material, contingency, architectural and related fees. The scope of work proposed includes
the following: demolition and removal of all rotten sub-flooring and floor joists, repair of concrete
stem wall cap, bolting of pressure treated ledger board at perimeter, jack and secure floor joists into
place, demolition of walls and ceilings, replacement of damaged framing, replacement of electrical
systems to meet code, replacement of plumbing as needed, insulation of walls and ceilings,
installation of central air conditioning, drywall installation and finishing of walls and ceilings,
installation of new kitchen cabinets, installation of base board and trim, painting of the interior,
demolition, removal, and replacement of tubs, toilets, sinks and cabinets, installation of 3 8 impact
resistant windows with shutters, repair and painting of exterior of the building, and landscaping.
According to the Miami-Dade County Tax Assessor, the value of the land and building before
rehabilitation is approximately $305,064. The rehabilitation cost is estimated at $82,422, which
represents 27 percent of the market value of the land and the building before rehabilitation.
Under the rules of the Multi-Family Housing Rehabilitation Program, the rents for four (4) of the six
(6) apartments (67 percent) are to be provided for tenants earning 80 percent or less of the Area
Median Income for a minimum period of five (5) years. The rents for these units are to be
established in accordance with the Fair Market Rent schedule issued by HUD for apartments.
Currently, the approved rents under this schedule are: one bedroom units - $525 per month and two-
bedroom units - $657 per month. These rents exclude any utility allowance. The remaining two (2)
apartments may be leased at market rents without restriction. The Owner is estimating that the
market rate one-bedroom units will rent for $750 per month, and the two-bedroom units will rent for
$800 per month.
On June 18, 1999, the City's Loan Review Committee (LRC) met and reviewed the application for
funding for this property and voted to recommend approval by the Mayor and City Commission.
The LRC recommended a Matching Grant of $41,211 towards the rehabilitation costs for this
property. Under the Program Guidelines, the maximum matching grant that this property can qualify
186
COMMISSION MEMORANDUM
Page 3
for is $50,000 (based on: 4 units x $7,500 per unit for one-bedrooms = $30,000, plus 2 units x
$10,000 per unit for two-bedrooms = $20,000).
A review of City and County records for the property indicates that there are no unpaid water or
sanitation bills and taxes are paid for the current year. In accordance with the Program Guidelines,
the rehabilitation proposed will bring the property into compliance with the City's Property
Maintenance Standards.
Currently, there are five (5) tenants in the building. The Owner has estimated that no relocation will
be required.
The Owner
The Owner, Thomas J. Sarelas, purchased the property at 710 Pennsylvania A venue in September
of 1990. Since purchasing the property, the owner has maintained the building and the surrounding
grounds. There are currently no outstanding code violations. Mr. Sarelas owns no other buildings
in Miami Beach.
The Program
There are currently twelve (12) buildings participating in the City's Multi-Family Housing
Rehabilitation Program. There are no outstanding code violations on any of the buildings. The
participating buildings are listed herein:
Address:
Owner:
629 Lenox Ave.
221 Collins Ave.
1615 Pennsylvania Ave.
800 Washington Ave.
1220 Marseilles Dr.
1946 Marseilles Dr.
1244 Pennsylvania Ave.
345 Collins A vc.
1006 Bay Dr.
1005 & 1011 Ninth St.
117 South Shore Drive
Douglas Gardens
The 221 Inc.
Columbia Equities III
Blackstone Hotel Assoc.
Iches Corp.
L VS Investments Inc
1244 Penn Assoc. Inc.
J & S Perez
Marina Del Rey Apartments Limited Partnership
Princessa, Inc.
Joseph S. Barella
CONCLUSION:
The Administration recommends adoption of the attached Resolution of the Mayor and City
Commission of the City of Miami Beach, Florida, authorizing the Mayor and City Clerk to execute
the attached Multi-family Housing Rehabilitation Program Matching Grant Agreement with Thomas
J. Sarelas in the Amount of $41 ,211 in Community Development Block Grant (CDBG) program
funds through the Multi-family Housing Rehabilitation Program for the rehabilitation ofthe property
187
COMMISSION MEMORANDUM
Page 4
located at 710 Pennsylvania Avenue, Miami Beach, to provide four (4) rental dwelling units for
income-eligible tenants.
SR/C~IRM/Mb~C+
F:\DDHP\$ALL\SKC\MUL T-FAM\7I O]EN.MEM
188
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
MULTI-FAMILY HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT
ft. f (ClfIlh'fI../
THIS AGREEMENT entered into this[L day of~ 1999, by and between:
THOMAS J. SARELAS, whose address is 4442 N. Kenneth, Chicago, Illinois, 60630, hereinafter referred to
as "Owner" who is the legal owner of the property at 710 Pennsylvania Avenue, Miami Beach, Florida, 33139
more particularly described as:
Lot 6 of Block 456, of OCEAN BEACH ADDITION #3, according to the plat thereof recorded in
Plat Book 2 at Page 81, of the Public Records of Miami-Dade County, Florida, also known as
710 Pennsylvania Avenue, hereinafter referred to as "Project" and/or "Property"
and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention
Center Drive, Miami Beach, Florida, hereinafter called "City":
WITNESSETH:
WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter
referred to as "Program", designed to provide financial assistance to property owners of deteriorated and
substandard multi-family residential structures within the City of Miami Beach, Florida, for the purpose of
rehabilitating said structures; and
WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing
Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on July 16, 1997, which
are deemed incorporated by reference and made a part of this Agreement; and
WHEREAS, Owner as the legal Owner of the Project described above, has agreed to rehabilitate said
Project in accordance with the Guidelines of the Program; and
WHEREAS, the City's Loan Review Committee on June 18, 1999 recommended approval of
assistance to the Project under the Program, and the provision of assistance has been approved by the Mayor
and City Commission, subject to certain conditions, including the requirement that the Owner and the City
enter into this Agreement; and
WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided
hereunder derive from federal Community Development Block Grant funds appropriated to the City by the U.S.
Department of Housing and Urban Development, for the uses and purposes herein referred to, and
accordingly it is acknowledged and agreed that this Agreement is entered into after compliance by the parties
with all applicable provisions of Federal, State and local laws, statutes, rules and regulations as they may
apply to this Agreement, which certain of said regtJlations are incorporated herein as more fully set forth in
Attachment "A".
NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration
of the matching grant monies which are to be paid by City to the Owner, which consideration is hereby
acknowledged by the parties, the parties do agree as follows:
1
(1) Any amendments, alterations, or variations to this Agreement will only be valid when they
have been reduced to writing and duly signed by the parties.
(2) It is understood and agreed by and between the parties that the Guidelines, as they may be
amended from time to time, represent the scope of services and responsibilities of the parties
under the Program and the parties agree to abide by and comply with their roles and
responsibilities under the Guidelines as set forth therein.
(3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of
the Program and the Agreement.
(4) Rehabilitation of the Project shall be done in accordance with the applicable codes,
ordinances and statutes of the State of Florida, Miami-Dade County, and the City.
(5) The maximum Matching Grant amount to be provided under this Agreement is Forty-One
Thousand Two Hundred Eleven Dollars ($41,211). This amount is to be used only to cover
the cost of rehabilitating the building, as a match for funds paid by the Owner on at least a
dollar-for-dollar basis. The work is to be done in accordance with the application filed by the
Owner with the City, reviewed and recommended by the City's Loan Review Committee on
June 18, 1999, and subsequently approved by the Mayor and City Commission.
(6) It is understood and agreed by and between the parties that none of the obligations of the
City assumed or created hereunder shall be general obligations of the City and none of the
same shall be enforceable against the City generally. Any and all obligations, liabilities and
commitments of the City hereunder, shall be limited to the payment of a matching grant
amount of Forty-One Thousand Two Hundred Eleven Dollars ($41,211) as specified herein.
No other fiscal, legal, equitable or contractual duty or obligation is assumed by the City, and
the Owner by executing this Agreement so agrees.
The City desires to enter into this Agreement only if in so doing the City can place a limit on
the City's liability for any cause of action for money damages due to an alleged breach by the
City of this Agreement, so that its liability for any such breach never exceeds the sum of
$41,211. Owner hereby expresses its willingness to enter into this Agreement with Owner's
recovery from the City for any damage action for breach of contract to be limited to a
maximum amount of $41 ,211, less the amount of all funds actually paid by the City to Owners
pursuant to this Agreement.
Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in
an amount in excess of $41,211, which amount shall be reduced by the amount of the
funding actually paid by the City to Owner pursuant to this Agreement, for any action or claim
for breach of contract arising out of the performance or non-performance of any obligations
imposed upon the City by this Agreement. Nothing contained in this subparagraph or
elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed on
the City's liability as set forth in Florida Statutes, Section 768.28.
(7) The matching grant amount shall be paid to the Owner and shall be disbursed during the
rehabilitation of the Project. After this matching grant payment is made by the City to the
Owner and applied by the Owner according to the procedures set forth herein, the City shall
be automatically discharged from any and all obligations, liabilities and commitments
hereunder to Owner or any third person or entity provided, however, that this Section shall
not excuse the continued compliance by Owner with the terms of this Agreement and the
federal program requirements.
2
Owner, for consideration of One Dollar ($1.00) and other good, valuable, separate and
distinct consideration, receipt of which is hereby acknowledged, hereby saves and holds
harmless, indemnifies and protects the City, its officers and employees from any and all
obligations, liabilities, commitments, actions, claims, causes of action, suits or demands
arising or accruing by virtue of this Agreement or the Project contemplated hereunder.
(8) The following procedures must be followed, prior to the commencement of work on this
Project:
a) Owner must submit a written request to the City's Housing Division of the
Community/Economic Development Department ("CEDD") for a Pre-Construction
Conference, which must be attended by all contractors and subcontractors. This request
must include the names and addresses of the proposed contractors and sub-contractors,
including the names of the principal owners of corporate entities, and an indication whether
each of the contractor's portion of the total Project value will exceed $10,000. This process
requires at least ten (10) days advance notification.
b) Each contractor and/or subcontractor must be found to be eligible to work on a federally
funded project. The names submitted will be checked against the "Consolidated List of
Debarred, Suspended & Ineligible Contractors and Grantees" monthly listing published by
the Federal Government.
c) If the Building is more than 50 years old, Owner's architect or engineer must obtain and
submit to the City a letter indicating that the plans for the Project have been reviewed by the
State Historic Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable
to that office.
d) A set of final approved plans and specifications for the Project approved by the City's
Building Department must be submitted to the Housing Division of the CEDD.
e) Building permits must be obtained as required by applicable City Ordinance. Also, any
other necessary permits and applicable approvals from any other governmental authorities
must be obtained, if required.
f) A copy of the contract between the Owner and a licensed general contractor must be
submitted to the City which includes commencement and completion dates, contract amount,
scope of work, Federal Labor Standards Provisions (HUD Form 4010), and applicable federal
regulations and standards.
g) The contractor selected must submit evidence prior to the commencement of work,
satisfactory to the City's Insurance Manager, of the following insurance coverage: 1) Liability
insurance against claims arising out of accident or occurrence on the property, in a minimum
amount of $1 ,000,000 (The City of Miami Beach must be named as additional insured in the
policy), 2) proof of worker's compensation coverage; and 3) such other forms of insurance
as the City's Risk Manager may reasonably require.
~
h) A revised cost breakdown, to include direct and indirect costs of the proposed work,
based on the actual contract price.
I) The Owner must provide a Lien Statement from the City's Finance Department
demonstrating that it is current with the legal and financial obligations and/or payments on
the property, with the City.
3
When the above requirements have been met, the Housing Division of the CEDD and the
Building Services Division will jointly issue a "Notice to Proceed" on the Project. If the Owner
or contractor does not fully comply, or if any work commences prior to the issuance of the
Notice to Proceed, then such work may, at the discretion of the City, not be reimbursed under
the Program, and could constitute a default under this Agreement.
Exception: Subject to the prior approval of the Housing Division of the CEDD and the Building
Services Division, emergency repairs can be undertaken on the Project.
(9) In consideration for the performance of Owner of its role and responsibilities set forth in this
Agreement, the City agrees to pay to Owner, the sum of Forty-One Thousand Two Hundred
Eleven Dollars ($41,211), as the total of the matching grant described herein. Said total shall
be disbursed by the City to the Owner during construction as follows: During the construction
phase, and not more often than once a month, a payment may be requested equivalent to
ninety percent (90%) of the pro-rata portion of the value of the work completed in the
previous period, as certified by the Owner's architect or engineer, and confirmed by the
Housing Division of the City's Community and Economic Development Division. The City's
payments hereunder will be computed based on the ratio of the Matching Grant amount to
the total estimated construction cost. In the event the actual cost is less than the estimate,
the amount of the City's Matching Grant will be reduced proportionately, so that the City's
portion of the total cost is never higher than 50% of the total cost. The final ten percent
(10%) of the Matching Grant payment shall be paid following the completion, approval and
acceptance of the rehabilitation work and related documentation by all the governmental
agencies and authorities having jurisdiction over the Project, including compliance with the
requirements of the Davis-Bacon Act, if applicable, and as set forth in the Guidelines.
(10) Owner agrees to comply with the following requirements during and after construction begins:
a) The Owner must announce and publicize the source of the public funds provided for the
Project. A construction sign must be displayed on the site during the construction phase, with
the design and location to be approved by the City. The sign, to be provided and paid for by
the Owner, must be maintained for the duration of the construction work. The City will
provide detailed information on the dimensions and appearance of the sign.
b) The Owner's general contractor shall be responsible for compliance with all pollution and
asbestos control standards of the concerned governmental agencies. It shall be the
Contractor's responsibility to obtain required inspections from these agencies.
c) Federal regulations require that all tenants in housing rehabilitated with federal funds, be
provided with information on the following: that the property may contain lead-based paint;
of the hazards, symptoms and treatment for ingestion of lead-based paint; of the precautions
to be taken; of the availability of blood level screening for children under seven years of age;
and that in the event lead-based paint is found in the property, appropriate abatement
procedures must be undertaken by owners. Copies of a brochure will be provided to Owner
by the City. This information must'be provided by the Owner to each tenant, and the Owner
must retain evidence of having provided this notification to the tenant in a file for the life of
this Agreement.
d) After the property has been rehabilitated, it must conform to the applicable codes,
ordinances and statutes of the City and of Miami-Dade County, including, but not limited to,
the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance
4
Standards.
(11) It is understood and agreed by Owner that for at least five (5) years beginning on the date
of issuance of a final Certificate of Completion, a minimum of four (4) apartment units (67%)
will be occupied by low and moderate income households at affordable rents. Low and
moderate income households means the combined income of all members of the household
does not exceed 80% of the Area Median Income, as published by HUD. All tenants must
be offered a written lease. A "Household Income Certification Report" will have to be
completed for every rental unit claimed as meeting the above requirements at least annually.
This report must be submitted to the Housing Division of the CEDD within ten (10) days after
the commencement of each lease, and an updated form must be submitted at least annually
thereafter during the month of October, for the fiscal year ended September 30.
The following income limits apply as of this date, but may be revised annually:
1 person $25,000
2 persons $28,550
3 persons $32,100
4 persons $35,700
Monthly rents for units occupied by low and moderate income households are considered
affordable if they do not exceed the "40th Percentile Fair Market Rents for Existing Housing",
published by HUD, as of this date, but subject to revision annually. Currently the rent for a
one bedroom apartment is $563, including a utility allowance of $38 per month, for a net rent
of $525 per month excluding utilities; the rent for a two-bedroom apartment is $702 per
month, which includes a $45 per month utility allowance, for a net of $657 per month.
(12) It is understood by Owner that if the Property is converted to condominiums, sold, or
withdrawn from rental use within five (5) years after the Final Certificate of Completion is
issued, the full amount of the Matching Grant will become due and payable to the City.
(13) Owner shall deliver to the Housing Division of the CEDD, by October 30th of each calendar
year, its signed notarized report in form and substance acceptable to the City, which includes
the names of tenants, unit type, family income, rents charged, and occupancy factor of each
unit for the prior year. This report will continue to be required through the September 30th
following the expiration of the five (5) year period after the date of issuance of a Final
Certificate of Completion.
(14) Owner shall not assign any interest in this Agreement and will not transfer any interest in the
same without the prior written consent of the City, upon approval by the Loan Review
Committee. In the event Owner is a corporation, limited partnership or other incorporated or
artificial business entity, a transfer of more than ten percent (10%) Ownership interest of its
stock by pledge, sale or otherwise (except a transfer of partnership interests in connection
with the syndication of limited partner interests in the Ownership, which shall not require any
consent hereunder); or if Owner makes an assignment for the benefit of its creditors or uses
this Agreement as security or collateral for any loan; or if Owner is voluntarily or involuntarily
a party to any bankruptcy or insolvency proceeding; or if Owner has a receiver appointed
over any of its properties; or if Owner does not satisfy in full or appeal any judgment for the
sum of $5,000 (or more) within thirty (30) days from its' rendition; or if Owner is involved in
a bulk transfer of its business, then, in that event, each of the foregoing actions will be
deemed an assignment of this Agreement and require the prior written consent of the City,
upon approval by the Loan Review Committee. It shall be deemed a default of this
Agreement if Owner does not strictly comply with the terms, conditions, duties and
5
procedures established herein for obtaining City consent to assignment or transfer as defined
by this Section. In the event such consent is not obtained in the manner prescribed herein,
the City shall be entitled to declare a default, cancel this Agreement and resort to its rights
and remedies against the defaulting party.
In the event Owner is a trust, which includes, without limitation, a land trust and a trust
company, any change in the person or entity who is the trustee or any change in the heirs
or beneficiaries of such trust shall be deemed an assignment under this Section and require
the prior written consent of the City, upon approval by the Loan Review Committee.
Regardless of the type of entity Owner is defined to be, a merger, insolvency, bankruptcy,
dissolution, consolidation, conversion, liquidation, or appointment of a receiver for such
Owner shall each be deemed an assignment of this Agreement and will require the prior
written consent of the City upon approval by the Loan Review Committee.
(15) Upon a default of a written indebtedness, including without limitation: a note, mortgage,
guarantee, and this Agreement, Owner waives notice, presentment and/or demand of default.
(16) For purposes of this Agreement and the documents referenced or incorporated within it, a
default shall include without limitation, the following acts or events of Owner, or its agents,
servants, employees, or contractors:
(a) Owner's failure to (I) commence work within thirty (30) days from the date of issuance
of the Notice to Proceed by the City, or (ii) diligently pursue construction and timely complete
the project by securing a Final Certificate of Completion within twelve (12) months from the
date of this Agreement, or (iii) provide the documentation required to make the final payment
of the Matching Grant, as indicated in the Guidelines, within thirty (30) days from the date of
issuance of a Final Certificate of Completion.
Work shall be considered to have commenced and be in active progress when, in the opinion
of the City, a full complement of workmen and equipment is present at the site to diligently
incorporate materials and equipment into the structure throughout the day on each full
working day, weather permitting.
(b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning
laws, rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan
document executed by Owner in favor of a lender.
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or lender.
(f) Owner's failure to correct defects within a reasonable time as defined herein
(g) Owner's breach of this Agreement or of the terms and conditions of the GUidelines or
applicable laws, rules and regulations pertaining hereto which are referenced by this
Agreement.
(h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within 60
days from the date of filing of any such lien.
6
(i) An assignment or transfer of this Agreement or any interest therein by Owner which does
not comply with the procedures set forth herein.
(17) In the event of a default, the City may, thirty (30) days after mailing to Owner a notice of such
default as set forth herein, automatically cancel and terminate this Agreement without liability
to any party to this Agreement. If the default is not fully and satisfactorily cured within thirty
(30) days of the City mailing notice of such default to Owner, to the full satisfaction of the
City, at the expiration of said thirty (30) day period, this Agreement may, at the City's sole
option and discretion, be deemed automatically canceled and terminated and the City fully
discharged from any and all liabilities, duties and terms arising out of or accruing by virtue
of this Agreement and the Project, all funds paid to the Owner hereunder shall be
immediately due and payable to the City.
(18) In the event of a default, the City shall additionally be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest in Miami-Dade County, Florida, in
order to enforce the City's rights and remedies against the defaulting party. The City shall be
entitled to recover all costs of such actions including reasonable attorney's fees to the extent
allowed by law. The Owner waives its right to jury trial and its right to bring permissive
counterclaims against the City in any such action to the extent allowed by law.
(19) If the Property is occupied at the time the application is submitted the Owner must submit a
tenant roll. Additionally, the Owner 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
CEDD to assess the need for temporary relocation. 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%) of "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 Property
ACQuisition, issued by HUD, as amended.
(20) 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% 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.
(21) The Owner agrees to send, or to 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. Owner shall make
every effort to assure that temporary accommodations provided for tenants is decent, safe
and sanitary, and that other living conditions are generally acceptable. The Owner will ensure
that there is no increase in out-or-pocket housing expenses to the tenant. 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 the Returning Tenants
on the following terms, independently of the rent restrictions detailed herein
a. Returning Tenants must be offered the same apartment previously occupied, or a unit
7
comparable in terms of size and amenities to the unit occupied prior to the rehabilitation.
b. Returning tenants must be offered a standard lease for at least a 12 month period at the
same rent being charged before the rehabilitation.
c. 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.
d. 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 if the Tenant's income is greater than 80% of the Area Median
Income.
(22) Notices and demands: All notices, demands, correspondence and communications between
the City and the Owner shall be deemed sufficiently given under the terms of this Agreement
if dispatched by registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with copies to:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: (1) City Attorney's Office
and: (2) Housing Coordinator, CEDD
If to the Owner:
Thomas J. Sarelas
4442 N. Kenneth
Chicago, Illinois 60630
or to such address and to the attention of such other person as the City or the Owner may
from time to time designate by written notice to the other.
(23) It is understood and agreed that the City shall record this Agreement, with the Clerk of the
County Court, Miami-Dade County, Florida and shall furnish the Owner with conformed
copies of the recorded instrument within sixty (60) days of the recordation of this Agreement.
(24) The Owner agrees that upon completion of the rehabilitation hereunder, it will undertake an
affirmative marketing program in accordance with 24 CFR Part 570.601-2. At a minimum,
the Owner must implement an affirmative marketing program that provides information to,
and attracts eligible persons in the housing market area to the available housing receiving
assistance from CDBG funds, without regard to race, color, national origin, religion, sex,
sexual orientation, handicap, marital status, familial status, or age. The affirmative marketing
requirements and procedures adopted by the Owner shall include, but not necessarily be
limited to, the following:
(a) Methods for informing the public and potential tenants about Federal Fair Housing Laws
8
and the applicable affirmative marketing policy;
(b) Requirements and practices for carrying out the affirmative marketing plan;
(c) Procedures to be used to inform and solicit applications from persons in the housing
market area who are not likely to apply for the housing without special outreach (eg., use of
community organizations including, but not limited to: churches, employment centers,
community centers, fair housing groups, housing counseling agencies, community
development corporations, and the Housing Authority of the City of Miami Beach)
(d) Records to be kept describing actions taken to affirmatively market units and records to
assess the results of these actions, including newspaper clippings of all vacant units
advertised, copies of brochures, pamphlets, and articles used in advertising units, lists of
community organizations used in disseminating information, records of referrals, and the
results of Owners and referrals, and documentation of any other special outreach activities
conducted.
(e) A description of how the City can assess the success of affirmative marketing actions;
and
(f) A certification that states that the Owner agrees to adhere to whatever corrective actions
the City requires to be taken where affirmative marketing requirements are not met.
(g) Owner agrees to post in a visible location within the building a poster provided by the
City advising the tenants of the City's participation in the Project.
IN WITNESS WHEREOF, the Owner, and the City have caused this Agreement to be executed by their
respective duly authorized officers, the day and year first above written.
THE PARTIES HERETO STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING AGREEMENT
AND THE CITY OF MIAMI BEACH MULTI-FAMILY REHABILITATION PROGRAM GUIDELINES, AND
KNOW THE CONTENTS THEREOF AND FULLY REALIZE THEIR MEANING AND SIGN THIS
AGREEMENT AS THEIR OWN FREE ACT.
.......... G MARTINEZ
~.~'<tfly.rs;;;;,~ .
N~l~ MY COMMISSION' CC 510340
~t ''J< EXPIRES' Nov-.... 1- 1999
~~;'li ct.- . "''- ".
" "lir..f:i.... IIandId UndelWllllII
WITNESS:
Name: ~ . .J
,~;40- ~ ~k-
Name:
CITY OF MIAMI BEACH
By:
~/II
ATTES~( PCU~
ROBERT PARCHER, CITY CLERK
Neisen O. Kasdin, Mayor
1.:,~'ROVED PS TO
rC?lA & LANGUAGE
& fOR EXECUTlON
9
~~1
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, this~ rday of *, 1999, by Thomas J. Sarelas
who provided as identification and did/did ~ oath. ~...
a/
My Commission Expires:
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, this (R~ay of M 1999, by Neisen
O. Kasdin, as Mayor of the City of Miami Beach, who is personally known to me, and did not take an oath.
~ Q'I P, 0f'fICIAL IIOTNIY IrAL
04"."'" 1I~~ EalDA-.a
~.(\ UJ 0._
; .t 00771121
"P?o ,.. ~ 11'1 em nil 0_..-
OF~. AUQ.
~IJ ~IJ 1 ~..J ~~
~
NOTARY PUBLIC, State of Florida
Commission NO ~ e )) / .)~ J
My Commission Expires:
FIDDHPI$ALL ISTEVEIMUL T.F AMI71 O_PENI71 O_PEN.AGM
/
10
ATTACHMENT "A"
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through federal funds, all parties agree to comply with the
following statutes, regulations and executive orders, as they apply. These requirements are incorporated
herein by Jeference.
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. Equal 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 Regulations (40 CFR Parts 1500-1508);
- Environmental Review Procedures (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
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq) as amended through H.C.D.
Act of 1992;
- HUD Lead Based Paint Regulations (24 CFR Part 35).
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 Part 41).
7.
Labor Standards
'I
- 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. Community Development Block Grant Regulations (24 CFR Part 570).
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL
LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
11