2000-23971 RESO
RESOLUTION NO. 2000-23971
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A FIRST AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT
DATED APRIL 12,2000, BETWEEN THE CITY OF MIAMI
BEACH AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) TO PROVIDE
TWENTY (20) RENTAL UNITS FOR INCOME-ELIGIBLE
TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS; PROVIDING $500,000 IN HOME
PROGRAM FUNDS FROM FISCAL YEARS 1998/99 AND
1999/2000 TOWARD THE ACQUISITION AND
REHABILITATION OF THE PROPERTY; FURTHER,
APPROVING A ONE-TIME ONLY ASSIGNMENT OF THIS
AGREEMENT TO MBCDC: 1551 PENNSYLVANIA
APARTMENTS, LLC., A NOT-FOR-PROFIT ENTITY TO BE
CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN
TITLE TO THE SABRINA APARTMENTS, AND UNDER
THIS AGREEMENT.
WHEREAS, the City has established a HOME Investment Partnerships Program (HOME
Program) under the rules of the u.s. Department of Housing and Urban Development (HUD), which
provides financial assistance for the purpose of providing affordable housing within the City; 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, the City has determined the necessity for providing affordable housing in the
City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1, 1998, and its
One-Year Action Plan for Federal Funds for fiscal year 1999/2000, adopted by Resolution No. 99-
23238 on July 7,1999, as amended; and
WHEREAS, on September 17, 1999, the City adopted Resolution No. 99-23286, authorizing
a HOME Program Agreement with MBCDC which committed $600,000 from the City's fiscal year
1999/2000 HOME Program allocation for eligible CHDO projects; and
WHEREAS, on April 12, 2000, the City adopted Resolution No. 2000-23843, authorizing
a HOME Program Agreement between the City and MBCDC to provide $400,000 of the previously
committed $600,000 for the acquisition and rehabilitation of the Sabrina Apartments located at 1551
Pennsylvania A venue, Miami Beach; and
WHEREAS, MBCDC has submitted a request to the City to utilize the remaining $200,000
of the previously committed fiscal year 1999/2000 CHDO funds for a CHDO project to acquire and
rehabilitate the Sabrina Apartments; and
WHEREAS,the City's Loan Review Committee, at its May 12,2000 meeting, approved
the use of the remaining $200,000 in previously committed funds toward the rehabilitation of the
Sabrina Apartments, located at 1551 Pennsylvania Avenue; and
WHEREAS, on January 31, 2000, the City issued a HOME Program Notice of Funding
Availability in the amount of$I,181,653 for the acquisition and/or rehabilitation of multi-family
rental buildings or scattered sites for the purpose of providing affordable rental housing; and
WHEREAS, the City's Loan Review Committee, at its May 12, 2000 meeting, reviewed
applications submitted and recommended HOME Program funding in the amount of $300,000 from
the HOME Program NOFA issued on January 31, 2000 for MBCDC for the acquisition and
rehabilitation of the Sabrina Apartments; to provide 20 rental units to income-eligible tenants in
accordance with the rules of the HOME Program; and
WHEREAS, the MBCDC intends to create a not-for-profit entity which will assume all
interest and title to the Sabrina Apartments and be a successor in interest to MBCDC pursuant to this
Agreement; and
WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment
of this Agreement to MBCDC: 1551 Pennsylvania Apartments, LLC.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are hereby authorized to execute a First Amendment to the HOME Investment Partnerships Program
(HOME) Agreement dated April 12, 2000, between the City of Miami Beach and Miami Beach
Community Development Corporation (MBCDC) to provide twenty (20) rental units for income-
eligible tenants in accordance with the HOME Program requirements; providing $500,000 in HOME
Program funds from fiscal years 1998/99 and 1999/2000 toward the acquisition and rehabilitation
of the property; further, approving a one-time only assignment of this Agreement to MBCDC: 1551
Pennsylvania Apartments, LLC., a not-for-profit entity to be created by MBCDC as a successor in
interest in title to the Sabrina Apartments, and under this Agreement.
PASSED AND ADOPTED THIS 28th DAY OF June
,2000
ATTEST:
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,'PPRO'vED AS TO
FORM & lANGUAGE
& FOR EXECUTION
~. (;~~-rIV
MAYOR
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
http:\\cI.mlami-beach.fl.uB
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. 'f-q ~ -Do
Mayor Neisen O. Kasdin and DATE: June 28, 2000
Members oftbe City Commission
Lawrence ~:...LeV~~
City ManaW-
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT DATED APRIL
12,2000, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC) TO PROVIDE
TWENTY (20) RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS IN
ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS;
PROVIDING $500,000 IN HOME PROGRAM FUNDS FROM FISCAL
YEARS 1998/99 AND 1999/2000 TOWARD THE ACQUISITION AND
REHABILITATION OF THE PROPERTY; FURTHER, APPROVING A
ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO MBCDC:
1551 PENNSYLVANIA APARTMENTS, LLC., A NOT-FOR-PROFIT
ENTITY TO BE CREATED BY MBCDC AS A SUCCESSOR IN INTEREST
IN TITLE TO THE SABRINA APARTMENTS, AND UNDER THIS
AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City has received an annual allocation of HOME Investment Partnerships (HOME) Program
funds from the U.S. Department of Housing and Urban Development (U.S. HOD) since 1992 for the
purpose of expanding the supply of housing for persons meeting the income criteria of the HOME
Program. This Program encourages partnerships between the government and the private sector,
including for-profit and not-for-profit organizations for the acquisition, construction and
rehabilitation of housing.
AGENDA ITEM C- '-1'.3)
DATE k, - '"2S--CD
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Commission Memorandum
June 28, 2000
Amendment to 1551 Pennsylvania Avenue Agreement
Page 2
MBCDC has entered into a Contract for Sale and Purchase in the amount of $760,000 for a vacant
20 unit apartment building named Sabrina Apartments, located at 1551 Pennsylvania Avenue, Miami
Beach. The building is a two-story Art Deco building located within the Art Deco Historic District
of South Beach and was constructed in 1947. The apartments are located two blocks west of
Washington Avenue and one block south of Lincoln Road. The 20 one-bedroom apartments occupy
a total area of approximately 10,640 square feet. According to the report from the architects, Insight
Design, Inc., there are four units which contain 400 square feet. Each of the other 16 units have an
area of 491 square feet. All units meet or exceed the minimwn City requirement of 400 square feet.
MBCDC is proposing to retain the 20 units. Since the average size of the units is less than 550
square feet, MBCDC will be need to comply with the procedures for non-conforming buildings to
obtain appropriate permits and variances, if required. In accordance with the HOME Program
requirements, MBCDC will provide these rental units for income-eligible tenants for a period of 15
years after the rehabilitation of the building is completed.
The proposed scope of work, based on a preliminary evaluation, includes the following: replace wall
mounted AlC units with a central H.V.A.C. system; replace electrical system; replace existing
windows; provide new kitchenettes; refurbish/replace bathroom fixtures; refinish woodwork; provide
A.D.A. accessibility as required; upgrade fire alarm and detection system; convert basement into
laundry room; refinish/re-plaster ceiling and wall areas as needed; re-Iandscape entry; and provide
and install security features as necessary.
On April 12, 2000, the City Commission adopted Resolution No. 2000-23843 authorizing the
execution of a HOME Program Agreement with MBCDC, providing $400,000 of HOME Program
funds for the acquisition and rehabilitation of the Sabrina Apartments, 1551 Pennsylvania Avenue.
MBCDC is utilizing this funding for the acquisition of the property and they are currently seeking
funding for the rehabilitation of the building.
On January 31, 2000, the City issued a HOME Program Notice of Funding Availability (NOFA) in
the amount of $1,181,653 for the acquisition and/or rehabilitation of multi-family rental buildings
or scattered site units for the purpose of providing affordable rental housing. In response to the
NOF A, the City has received four applications from three different applicants. In accordance with
the terms of the NOF A, applications were reviewed by City staff for completeness and compliance
with the terms of the NOFA and the HOME Program requirements. On May 12,2000, the four
applications were presented to the City's Loan Review Committee (LRC) for review and
recommendation. The LRC recommended that the City Commission fund all four applications.
The LRC recommended funding for an application from MBCDC requesting $300,000 from the
HOME NOF A for the rehabilitation of the Sabrina Apartments. MBCDC requested these funds to
be combined with $200,000 in HOME Program funds previously committed to MBCDC under a
HOME Program Agreement entered into on September 17, 1999 for the acquisition and
rehabilitation of affordable rental housing or other eligible activities. Therefore, the LRC
recommended that the City Commission provide a total of $500,000 in HOME Program funds
toward the rehabilitation of the property.
P;\DDHP'I$ALLIMlOUBLLINOI'ACOMM.MEM
Commission Memorandum
June 28, 2000
Amendment to 1551 Pennsylvania Avenue Agreement
Page 3
The total cost of this initiative, including the rehabilitation of the building is estimated at $1,462,649.
The City provided to MBCDC $400,000 in fiscal year 1999/2000 HOME Program funds toward the
acquisition of the property and is proposing to provide an additional $500,000 in fiscal years 1998/99
and 1999/2000 HOME Program funds toward the rehabilitation of the building. Concurrently,
MBCDC has received a commitment from the Local Initiative Support Corporation (LISe) for
$360,000. In addition MBCDC is requesting $200,000 from Miami-Dade County or the Florida
Housing Finance Agency. The balance of$2,649 is to be provided by MBCDC in the form of equity.
The HOME Program Agreement entered with MBCDC by Resolution No. 2000-23843, adopted on
April 12, 2000, also approved a one-time only assignment of this agreement to MBCDC: Sabrina
Apartments, Inc., a not-for-profit entity to be created by MBCDC as a successor in interest in title
to the Sabrina Apartments. Since the time the resolution was adopted, MBCDC has learned from
the Florida Department of State that the name Sabrina Apartments had previously been registered
by another corporation. Therefore, MBCDC has requested to assign the agreement to MBCDC:
1551 Pennsylvania Apartments, LLC.
The Administration recommends that the Mayor and City Commission authorize the Mayor and City
Clerk to execute a First Amendment to the HOME Investment Partnerships Program Agreement
dated April 12, 2000, between the City of Miami Beach and Miami Beach Community Development
Corporation (MBCDC) to provide twenty (20) rental units for income-eligible tenants in accordance
with the HOME Program requirements; providing $500,000 in HOME Program funds from fiscal
years 1998/99 and 1999/2000 toward the acquisition and rehabilitation of the property; further,
approving a one-time only assignment of this Agreement to MBCDC: 1551 Pennsylvania
Apartments, LLC., a not-for-profit entity to be created by MBCDC as a successor in interest in title
to the Sabrina Apartmen~d under this Agreement.
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FIRST AMENDMENT TO HOME PROGRAM AGREEMENT
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THIS FIRST AMENDMENT TO THE AGREEMENT, entered into this ~i day of7l(~;2,000,
by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having its prilJ,!;ipal.
office at 1700 Convention Center Drive, Miami Beach, Florida, (City), and MIAMI BE~CH
COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida Not-for-ProfitCorporafion, ·
with offices located at 1205 Drexel Avenue, Miami Beach, Florida (hereinafter referred tg!lS OWher).
( -
WITNESSETH:
WHEREAS, on September 17, 1999, the City adopted Resolution No. 99-23286, authorizing
a HOME Program Agreement with Owner which committed $600,000 from the City's fiscal year
1999/2000 HOME Program allocation for eligible CHDO projects; and
WHEREAS, on April 12, 2000, the City adopted Resolution No. 2000-23843, authorizing a
HOME Program Agreement and the City and Owner entered into an agreement to provide $400,000 of
the $600,000 previously committed to MBCDC for the acquisition and rehabilitation of the Sabrina
Apartments; and
WHEREAS, the Owner has submitted a request to the City to utilize the remaining $200,000
of the previously committed fiscal year 1999/2000 CHDO funds for a CHDO project to acquire and
rehabilitate the Sabrina Apartments, located at 1551 Pennsylvania Avenue; and
WHEREAS, on May 12,2000, the City's Loan Review Committee approved the use ofthe
remaining $200,000 in previously allocated funds toward the rehabilitation of the twenty (20) unit
Sabrina Apartments; and
WHEREAS, on January 31, 2000, the City issued a HOME Program Notice of Funding
Availability in the amount of $1,181,653 for the acquisition and/or rehabilitation of multi-family rental
buildings or scattered sites for the purpose of providing affordable rental housing; and
WHEREAS, on May 12,2000, the City's Loan Review Committee reviewed applications
submitted and recommended HOME funding for Miami Beach Community Development Corporation
for an amount not to exceed $300,000, which includes $120,253 from fiscal year 1998/99 and $179,747
from fiscal year 1999/2000, toward the acquisition and rehabilitation of the Sabrina Apartments; and
WHEREAS, Owner warrants and represents that it possesses the legal authority to enter into
this Agreement, by way of a resolution that has been duly adopted as an official act of the Board of
Directors, authorizing the execution of this Agreement, including all understandings and assurances
contained herein, and authorizing the person(s) identified as their official representative(s) to execute
this Agreement and any other documents which may be necessary to implement this project; and
WHEREAS, Owner intends to create a not-for-profit entity which will assume all interest and
title to the Sabrina Apartments and be a successor in interest to MBCDC pursuant to this Agreement;
and
1
. .
.
WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment
of this Agreement to MBCDC: 1551 Pennsylvania Apartments, LLC; and
WHEREAS, the City and the Owner now wish to amend the Agreement.
NOW, THEREFORE, in consideration of the promises and of the mutual covenants and
agreements hereinafter set forth, the parties hereto do hereby agree as follows;
1. In all references throughout the Agreement, the 10-year affordability period is replaced by the
IS-year affordability period.
2. ARTICLE II, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in its
entirety and amended as follows:
In consideration of the performance by Owner of its role and responsibilities set forth
in this Agreement, the City agrees to provide a conditional grant of HOME Program funds to
Owner in the amount of Nine Hundred Thousand Dollars ($900,000) (Funds) which consists
of $600,000 of previously allocated fiscal year 1999/2000 CHDO set-aside funds, $120,253
from fiscal year 1998/99, and $179,747 from fiscal year 1999/2000.
3. ARTICLE III, PROCEEDS FROM HOME INVESTMENT, page 3, is hereby deleted in its
entirety and amended as follows:
In accordance with the 24 CFR Part 92.300 (a)(2), Owner may retain the proceeds from the
investment of its CHDO set-aside and HOME Program funds for use in other housing activities
which benefit low-income families.
4. ARTICLE VI, DISBURSEMENT OF FUNDS, page 5, sentence (1) is deleted and replaced by
the following sentence:
The Funds shall be used by Owner for acquisition of real property, rehabilitation and related soft
costs.
5. ARTICLE XXX, LIMITATION OF LIABILITY,page 14, is hereby deleted in its entirety and
amended as follows:
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
$900,000. 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 $900,000. Accordingly, and notwithstanding any other term or condition of this
Agreement, Owner hereby agrees that the City shall not be liable to Owner for damages in an
2
,
amount in excess of $900,000, 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 paragraph or elsewhere in this Agreement is in any way intended to
be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes,
Section 768.28.
6. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the revised
EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT, BUDGET,
reflecting the adjustments in the HOME Program funds from the City of Miami Beach.
7. Except as amended by this Amendment, no term or condition of the Agreement shall be
modified and the same shall remain in full force and effect; provided, however, if any revision
of this Amendment is in conflict with, or inconsistent with, any information in the Agreement,
the provision contained in this Amendment shall govern and control.
8. This Amendment shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day and date
first above written.
ATTEST:
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MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
~""" P;",;d~' Amhori~d Si...-
Secretary
ATTEST:
CITY OF MIAMI BEACH
a Florida Municipal corporation
~tf~
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City Clerk
Mayor
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
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F:\DDHP\SALL\BETH\9900CHDO.PRO\! 55 IPENN\NOF AAGRE.FIN
EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT
BUDGET
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EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT
SOURCES AND USES OF FUNDS
SABRINA APARTMENTS
1551 PENNSYLVANIA AVENUE
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH (CHDO SET ASIDE)
SELLER FINANCING, TO BE TAKEN OUT BY (LISC), AND (PERMANENT BANK LOAN)
CITY OF MIAMI BEACH (NOF A)
OTHER: FLA HOUSING FINANCE CORP., MIAMI-DADE COUNTY, AHP
MBCDC
USES OF FUNDS
ACQUISITION OF PROPERTY
REHABILIT AnON
PRE-DEVELOPMENT COSTS
600,000
360,000
300,000
200,000
2M2
1,462,649
760,000
550,000
152.649
1,462,649