2000-24107 RESO
RESOLUTION NO. 2000-24107
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 HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT
BETWEEN THE CITY AND DADE EMPLOYMENT AND
ECONOMIC DEVELOPMENT CORPORATION, INC.
(DEEDCO) WHICH PROVIDES $339,971 FROM FISCAL
YEAR 1999/2000 HOME PROGRAM FUNDS TOWARD THE
COST OF ACQUISITION AND REHABILITATION OF THE
PROPERTY AT 7734 ABBOTT AVENUE, WHICH WILL BE
REHABILITATED TO PROVIDE EIGHT ONE-BEDROOM
AND FOUR EFFICIENCY RENTAL UNITS FOR INCOME-
ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS; FURTHER, RESCINDING
THE HOME PROGRAM AGREEMENT BETWEEN THE
CITY AND DEEDCO, DATED JULY 2,1998, AND FURTHER
MAKING THE AFORESAID APPROVAL OF THE NEW
AGREEMENT AND RECISION OF THE JULY 2, 1998
AGREEMENT CONTINGENT UPON DEEDCO'S
REPAYMENT OF $285,906 TO THE CITY, WHICH
REPRESENTS THE FULL AMOUNT OF THE MONIES
AWARDED TO DEEDCO PURSUANT TO SAID JULY 2, 1998
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, 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 January 31, 2000, the City issued a HOME Program Notice of Funding
Availability in the amount of$1,18l,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 $339,971 for
Dade Employment and Economic Development Corporation, Inc. (DEEDCO) for the acquisition and
rehabilitation of the building located at 7734 Abbott Avenue, Miami Beach, to provide eight one-
bedroom and four efficiency apartments, to provide rental housing to income-eligible tenants in
accordance with the HOME Program requirements; and
WHEREAS, the City and DEEDCO agree to rescind the HOME Program Agreement dated
July 2, 1998; and
WHEREAS, the City and DEEDCO agree to make the approval of the attached HOME
Program Agreement and recision of the July 2, 1998 HOME Program Agreement contingent upon
DEEDCO's repayment of $285,906 to the City, which represents the full amount of the monies
awarded to DEEDCO pursuant to said July 2, 1998 Agreement; and
WHEREAS, the Administration now requests that the attached HOME Program Agreement
be approved by the Mayor and City Commission and executed by the Mayor and City Clerk.
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 the attached HOME Investment Partnerships (HOME) Program
Agreement between the City and Dade Employment and Economic Development Corporation, Inc.
(DEEDCO) which provides $339,971 from fiscal year 1999/2000 home program funds toward the
cost of acquisition and rehabilitation of the property at 7734 Abbott Avenue, which will be
rehabilitated to provide eight (8) one-bedroom and four (4) efficiency rental units for income-eligible
tenants in accordance with the HOME Program requirements; further, rescinding the HOME
Program Agreement between the City and DEEDCO, dated July 2, 1998, and further making the
aforesaid approval of the new Agreement and recision of the July 2, 1998 Agreement contingent
upon DEEDCO's repayment of$285,906 to the City, which represents the full amount of the monies
awarded to DEEDCO pursuant to said July 2, 1998 Agreement.
PASSED AND ADOPTED THIS 18th DAY OF October ,2000
ATTEST:
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CITY CLERK
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MAYOR
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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.f1.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM No.i0 2 - 00
Mayor Neisen O. Kasdin and
Members ofthe City Commission
Jorge M. Gonzalez \.. ~
City Manager 017" - 0
DATE: October 18,2000
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 HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT BETWEEN THE
CITY AND DADE EMPLOYMENT AND ECONOMIC DEVELOPMENT
CORPORATION, INC. (DEEDCO) WHICH PROVIDES $339,971 FROM
FISCAL YEAR 1999/2000 HOME PROGRAM FUNDS TOWARD THE COST
OF ACQUISITION AND REHABILITATION OF THE PROPERTY AT 7734
ABBOTT AVENUE, WHICH WILL BE REHABILITATED TO PROVIDE
EIGHT ONE-BEDROOM AND FOUR EFFICIENCY RENTAL UNITS FOR
INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS; FURTHER, RESCINDING THE HOME
PROGRAM AGREEMENT BETWEEN THE CITY AND DEEDCO, DATED
JULY 2, 1998, AND FURTHER MAKING THE AFORESAID APPROVAL OF
THE NEW AGREEMENT AND RECISION OF THE JULY 2, 1998
AGREEMENT CONTINGENT UPON DEEDCO'S REPAYMENT OF
$285,906 TO THE CITY, WHICH REPRESENTS THE FULL AMOUNT OF
THE MONIES AWARDED TO DEEDCO PURSUANT TO SAID JULY 2,
1998 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. HUD) 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.
On September 29,1997, the City issued a Notice of Funding Availability (NOFA) in the amount of
$285,906, to provide housing in accordance with the City's HOME Program. Dade Employment
AGENDA ITEM C/6 0
DATEjD-1 g -0
F,IDDHNALL\MIGUELl\IO-OODED.MEM
Commission Memorandum
June 28, 2000
DEEDCD NDFA Applicalion
Page 2
and Economic Development Corporation, Inc. (DEEDCO) was the successful applicant, and they
entered into a HOME Program Agreement with the City in the amount of$285,906 to acquire and
rehabilitate a building at 7734 Abbott Avenue, Miami Beach. The building contains eight one-
bedroom and four efficiency apartments. Under the terms of the HOME Agreement, DEEDCO was
to reconfigure the building to convert the 12 units into eight two-bedroom apartments. In accordance
with the HOME Program requirements, DEEDCO was to provide these rental units for income-
eligible tenants for a period of ten years after the rehabilitation of the building was completed.
DEEDCO also received an affordable housing loan for this project in the amount of $250,000 from
the Florida Department of Community Affairs (DCA). Utilizing the DCA loan and part of the
HOME Program funds, DEEDCO acquired the building for $360,000, and a First Mortgage was
issued to DCA.
DEEDCO sought and received bids for the rehabilitation work, and the bids exceeded the previously
estimated rehabilitation costs. Therefore, DEEDCO requested that, in order to make the project
more feasible in the long term, the City allow them to change the Scope of Work of the HOME
Program Agreement. The new proposal would rehabilitate the building retaining the 12 units rather
than re-configuring the building to provide eight units as stipulated by the original Agreement. The
Office of the City Attorney reviewed the request from DEEDCO and opined that the Scope of Work
could not be changed because DEEDCO had been awarded the HOME Program funds under a
competitive NOF A process.
In order to salvage the project, and in an effort to prevent tenant displacement and the associated
federally mandated relocation costs that could be incurred if the project did not go forward, the City
and DEEDCO collaborated to find alternative funding for the project. DEEDCO agreed to seek new
funding and to renegotiate the terms of the DCA loan with the State. The City also confirmed with
U.S. HUD that DEEDCO would be eligible to seek new funding for this activity under a new HOME
Program NOF A to be issued by the City.
On January 31, 2000, the City issued a new HOME Program NOFA in the amount of$1,18l,653.
These funds were to be used for acquisition and/or rehabilitation of multi-family rental buildings or
scattered site units for the purpose of providing affordable rental housing. Under the terms of the
NOFA, applications were accepted beginning March 1, 2000.
In response to the NOFA, the City received an application from DEEDCO requesting $339,971
toward the repayment of the previously awarded HOME grant for the rehabilitation of the DEEDCO
Beach Apartments at 7734 Abbott Avenue, to provide eight one-bedroom and four efficiency rental
units. In accordance with the terms of the NOF A, the application was reviewed by City staff for
completeness and compliance with the terms of the NOF A and the HOME Program requirements.
On May 12,2000, the application was presented to the City's Loan Review committee (LRC) for
review and recommendation. The LRC recommended that the City Commission fund the
application.
F:IODHP\SAl..LIMlGUELLI1Q.ooDED.MEM
Commission Memorandum
June 28, 2000
DEEDCO NOFA Application
Page 3
On June 28, 2000, the City Commission adopted, as amended, Resolution No. 2000-23972,
authorizing the City to enter into a HOME Investment Partnerships (HOME) Program Agreement
with Dade Employment and Economic Development Corporation, Inc. (DEEDCO) in the amount
of$339,97l from fiscal year 1999/2000 HOME Program funds toward the cost of acquisition and
rehabilitation of the property at 7734 Abbott Avenue, to provide eight one-bedroom and four
efficiency rental units for income-eligible tenants in accordance with the HOME Program
requirements; further, rescinding the HOME Program Agreement between the City and DEEDCO,
dated July 2, 1998, and further making the aforesaid approval of the new Agreement and recision
of the July 2,1998 Agreement contingent upon DEEDCO's repayment of $285,906 to the City,
which represents the full amount of the monies awarded to DEEDCO pursuant to said July 2, 1998
Agreement. The adoption of this resolution was made subject to DEEDCO going to Miami-Dade
County and making an application for CDBG funding, and ifDEEDCO was awarded funding, they
were to reimburse the City and/or to convert the project back to the original eight two-bedroom units.
Subsequent to the June 28, 2000 City Commission meeting, Mr. Arthor Jackson, Executive Director
of DEED CO, met with a senior administrator of Miami-Dade Office of Community and Economic
Development (OCED) to inquire as to the possibility of applying for CDBG funds for this project.
Mr. Jackson communicated to the Administration that he was advised that OCED would not
favorably review an application when the project lies within another entitlement jurisdiction.
Therefore, since the City is an entitlement community receiving CDBG and HOME Program funds,
DEEDCO did not apply for Miami-Dade County CDBG funds.
As a result of the unavailability of County CDBG funds, the Administration is reinstating its
previous recommendation to enter into a HOME Program Agreement with DEEDCO in the amount
of$339,97l from fiscal year 1999/2000 HOME Program funds toward the cost of acquisition and
rehabilitation of the property at 7734 Abbott Avenue, which will be rehabilitated to provide eight
one-bedroom and four efficiency rental units for income-eligible tenants in accordance with the
HOME Program requirements, contingent on the Agreement dated July 2, 1998 being rescinded, and
the City recapturing the $285,906 HOME Program funds provided by that Agreement. In accordance
with the HOME Program requirements, DEEDCO is to maintain these rental units for income-
eligible tenants for a period of ten years after the rehabilitation of the building is completed.
Since DEEDCO has utilized the previously approved DCA loan in the amount of $250,000 toward
the purchase of the property, they have requested that DCA change the time of repayment from five
years to ten years. This extension to ten years would provide five additional years without the
payment of principal or interest on the DCA loan which would further enhance the financial viability
of the project. DCA is currently awaiting a decision by the City on the funding of this project in
order to complete their review on the request for the extension.
Ifthis project was not to proceed and be completed, the property could go into foreclosure. Since
DCA has a $250,000 first mortgage on the property, they would hold title to the property. Under
such scenario, DCA could negotiate to dispose of the property to recover their investment, and the
City would be entitled to recover its investment from any proceeds from the sale after the DCA
mortgage has been satisfied.
F:\DDHP\$ALL\MIGUELU10-OODED.MEM
Commission Memorandum
June 28, 2000
DEEDCO NOFA Application
Page 4
The Administration recommends that the Mayor and City Commission authorize the Mayor and City
Clerk to execute the attached HOME Investment Partnerships (HOME) Program Agreement between
the City and Dade Employment and Economic Development Corporation, Inc. (DEEDCO) which
provides $339,971 from fiscal year 1999/2000 HOME Program funds toward the cost of acquisition
and rehabilitation of the property at 7734 Abbott A venue, which will be rehabilitated to provide eight
one-bedroom and four efficiency rental units for income-eligible tenants in accordance with the
HOME Program requirements; further, rescinding the HOME Program Agreement between the City
and DEEDCO, dated July 2, 1998, and further making the aforesaid approval ofthe new Agreement
and recision of the July 2, 1998 Agreement contingent upon DEEDCO's repayment of $285,906 to
the City, which represents the full amount of the monies awarded to DEEDCO pursuant to said July
2,1998 Agreement,
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HOME PROGRAM AGREEMENT
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THIS AGREEMENT, entered into this!1:. day of ttltin!.r, 2000, by and between the CITY OF
MIAMI BEACH, a Florida municipal corporation, having its principal office at 1700 Convention
Center Drive, Miami Beach, Florida, (City), and the DADE EMPLOYMENT AND ECONOMIC
DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit Corporation, with offices
located at 141 NE Third Avenue, Suite 500, Miami, Florida (DEEDCO).
WITNESSETH:
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued
rules providing for the utilization of Federal funds in the provision of affordable housing for low
income persons under the HOME Investment Partnerships Act; and
WHEREAS, the City has established a HOME Investment Partnerships Program (HOME
Program) under the HUD rules, which provides financial assistance for the purpose of providing
affordable housing within the City; 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 199912000 as amended, adopted by
Resolution No. 99-23238 on July 7,1999, as amended; and
WHEREAS, On January 31, 2000, the City issued a HOME Program Notice of Funding
Availability (NOF A) in the amount of $1 ,181,653 for the acquisition and/orrehabilitation of multi-
family rental buildings or scattered sites for the purpose of providing affordable rental housing; and
WHEREAS, in response to the NOF A, DEEDCO has submitted an application to the City
requesting $339,971 of fiscal year 1999/2000 HOME Program funds for the acquisition and
rehabilitation of the building located at 7734 Abbott Avenue, Miami Beach, which building contains
12 rental units which consists of eight (8) one-bedroom units and four (4) efficiency units; and
WHEREAS, on May 12,2000, the City's Loan Review Committee reviewed applications
submitted and recommended HOME Program funding for an amount not to exceed $339,971 toward
the acquisition and rehabilitation of the building located at 7734 Abbott Avenue, provided DEEDCO
rescinded the funds previously awarded; and
WHEREAS, the City and DEEDCO agree to rescind the HOME Program Agreement dated
July 2, 1998; and
WHEREAS, the City and DEEDCO agree to make the approval of the attached HOME
Program Agreement and recision of the July 2,1998 HOME Program Agreement contingent upon
1
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DEEDCO's repayment of $285,906 to the City, which represents the full amount of the monies
awarded to DEEDCO pursuant to said July 2, 1998 Agreement.; and
WHEREAS, DEEDCO 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 DEEDCO's governing body, authorizing the execution oftbis Agreement,
including all understandings and assurances contained herein, and authorizing the person identified
as the official representative of DEED CO 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 DEEDCO 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 this Agreement is entered into in compliance
by the parties with all applicable provisions of Federal, State and local laws, statues, rules and
regulations.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement the terms listed below shall have the following meanings:
(a) HOME: HOME Investment Partnerships Program, 24 CFR Part 92, as amended.
(b) HUD: United States Department of Housing & Urban Development or any successor agency.
(c) Funds: HOME Program funds.
(d) 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 Rule, not otherwise defined in this Agreement, shall have the meaning set
forth in said rule.
(e) HOME Assisted Units: A term that refers to the number of units within a HOME project for
which rent, occupancy, and/or resale restrictions apply.
2
ARTICLE II
ALLOCATION OF HOME FUNDS
In consideration for the performance by DEEDCO of its role and responsibilities set forth in
this Agreement, the City agrees to provide a conditional grant of HOME funds to DEEDCO in the
amount of Three Hundred Thirty-Nine Thousand, Nine Hundred Seventy-One Dollars ($339,971)
(Funds).
The Funds will be utilized by DEEDCO for a rental housing project that provides for the
acquisition, rehabilitation, and operation of the property located at 7734 Abbott Avenue, Miami
Beach, that will provide 12 units for income eligible tenants, DEEDCO will acquire and rehabilitate
the building as more fully described in the Scope of Services (Exhibit A) and Budget (Exhibit B).
DEED CO will maintain required HOME Program rent and occupancy limitations for a minimum
period of lO-years (the Affordability Period) commencing with the issuance ofthe final approved
Certificate of Completion by the City's building Department following the planned rehabilitation.
DEEDCO agrees to rescind the HOME Program Agreement with the City dated July 2, 1998.
Further DEEDCO also agrees that the approval of this Agreement and the recision of the July 2,
1998 HOME Program Agreement are contingent upon DEEDCO's repayment of $285,906 to the
City, which represents the full amount of monies awarded to DEEDCO pursuant to said July 2, 1998
Agreement. This repayment of funds to the City by DEEDCO will be accomplished with a one time
payment of $142,707.76 in the form ofa cashier's check payable to the City of Miami Beach for
funds advanced under the terms of the July 2, 1998. DEEDCO agrees to release the balance of
$143,198.24 in HOME Program funds committed under the July 2, 1998 Agreement as part of the
recision of said Agreement.
ARTICLE III
PROGRAM INCOME
DEEDCO agrees that any program income generated from the use of HOME funds under this
Agreement, will be identified and prorated in accordance with the HOME Regulations, 24 CFR Part
92, as amended.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME
PROGRAM
DEEDCO expressly agrees to the following terms and conditions in conformity with the
HOME Program Final Rule, 24 CFR Part 92.503(b).
(a) Affordability Period. The period of time HOME assisted units must remain affordable
is in accordance with 24 CFR 92.252 (rental housing) beginning after project completion. The
Funds, in accordance with the Scope of Services (Exhibit A) and Budget (Exhibit B), shall be repaid
3
to the City in the event the housing does not meet the affordability requirements for the required time
period in accordance with 24 CFR 92.252 (rental housing).
(b) Repayment of Funds; Transfer of Title. The Funds (which definition shall include the
allocation of any additional funds that may be provided by the City in the future as a result of an
amendment or modification of this Agreement) shall be repaid in their entirety if the HOME units
do not meet the affordability requirements for the required time period, in accordance with the terms
of this Agreement and the Regulations. Any violation of the affordability requirements may, at the
City's option, result in the entire amount of the Funds, as indicated in Article II or as subsequently
amended or modified, to be returned and/or otherwise repaid by DEEDCO to the City, and same
shall be considered and treated as an Event of Default pursuant to Article XXVI herein. The City
reserves the right to review the affordability requirements, as set forth herein. Concurrent with its
execution of this Agreement and/or any projects pursuant to this Agreement, DEEDCO shall execute
a Restrictive Covenant in the format provided by the City, incorporating the terms of this section,
which shall be recorded in the Official Records of Miami-Dade County Florida.
(c) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR
92.252. The City shall provide a HOME Program Rent schedule annually to DEEDCO.
(d) Rent schedule and utility allowances. In accordance with 24 CFR 92.252(b)(c) and
(d), the City must review and approve rents and the monthly utility allowances proposed by the
owner prior to initial occupancy. DEEDCO must re-examine and document the income of each
tenant living in the HOME assisted units annually. The maximum monthly rent must be recalculated
by DEEDCO and reviewed and approved by the City annually.
(e) DEED CO shall comply with all applicable federal regulations as they may apply to
restrictions and limitations regarding real property under DEEDCO's control acquired or improved
in whole or in part with HOME funds. The Funds shall be subject to all of the terms and conditions
of the HOME Program, 24 CFR Part 92, and any amendments thereto,
(1) After rehabilitation, the Project must provide safe, sanitary, and decent residential
housing for low-income and very low-income persons (i.e., a person whose income is within specific
income levels set forth by HUD).
(g) Income Targeting. DEEDCO shall maintain written documentation that conclusively
demonstrates that each project assisted in whole or in part with HOME funds provides benefit to
very-low (families whose annual incomes that do not exceed 50 percent of the median family income
for the area) and low-income (families whose annual incomes do not exceed 80 percent of the
median income for the area) as determined by HUD.
4
(h) Records: DEEDCO shall maintain all records sufficient to meet the requirements of 24
CFR 92.508(a)(2) program records, 92.508(a)(3) project records, 92.508(a)(5) other Federal
requirements records, 92.508(a)(6) program administration records. AU records required herein shall
be retained and made accessible as provided in 24 CFR 92.508 (c) and (d) and Florida Statutes
Chapter 119.
(i) Property Standards. For the duration of this Agreement and any amendments hereto,
housing that is assisted with HOME funds, must meet aU applicable local codes, rehabilitation
standards, ordinances and zoning ordinances at the time of project completion. An owner of rental
housing assisted with HOME funds must maintain the housing in compliance with all applicable
State and local housing quality standards and code requirements. The owner of rental housing
assisted with HOME funds will maintain the housing in compliance with the applicable local
housing code requirements for the duration of this agreement and any amendments hereto. The City
shall conduct annual or bi-annual, as required, on-site inspections ofrental projects to determine
compliance with housing codes. The City may select a sample of the units in the project to satisfy
the inspection requirements.
(j) Environmental Clearance. For the Project described in the Scope of Services (Exhibit
A), attached hereto, DEEDCO shall obtain the City's written environmental clearance statement and
shall agree in writing to comply with any and all requirements as may be set forth in the Site
Environmental Clearance Statement.
(k) Affirmative Marketing. In order to provide persons in the housing market area with
a range of housing choice, regardless of race, color, religion, sex, handicap, familial status, or
national origin, DEEDCO agrees to administer the HOME Program in a manner that will
affirmatively further the purposes of Title VI of the Civil Rights Act of 1964 at 24 CFR 1, the Fair
Housing Act at 24 CFR 100 and Executive Order 11063 at 24 CFR 107. Owner will submit its
written procedures that implement these requirements for review and approval by the City.
(I) Tenant and Participant Protections. DEEDCO agrees that the lease to be executed
with the tenants ofrental housing must be in accordance with 24 CFR 92.253.
ARTICLE V
ELIGIBLE COSTS
DEEDCO agrees that eligible costs for the project under this Agreement are limited to those
eligible costs as outlined in 24 CFR 92.206 of the HOME Program regulations.
ARTICLE VI
DISBURSEMENT OF FUNDS
(1) The Funds may be used by DEEDCO for eligible acquisition, relocation or rehabilitation
costs. Pursuant to the project Budget (Exhibit B), DEEDCO may utilize up to $6,000 of the Funds
5
for relocation costs. In the event that relocation costs are less than $6,000, the balance of Funds may
be used towards the cost of acquisition or rehabilitation.
(2) The portion of the Funds to be used toward the cost of rehabilitation shall be disbursed by
the City to DEEDCO 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 value of the work
completed in the previous period, as certified by DEEDCO's Architect or Engineer, and confirmed
by the City's Community/Economic Development Department. The final ten percent (10%) of the
rehabilitation 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.
(3) 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 DEEDCO is required to submit to the City
pursuant to the terms of this Agreement or any amendments thereto.
(4) No payments will be made without evidence of appropriate insurance required by this
Agreement. Such evidence must be on file with the City.
(5) DEEDCO understands and agrees that disbursement requests for funds under this Agreement
are only to be requested when the funds are needed for payment of eligible costs. The amount of
each request must be limited to the amount needed.
ARTICLE VII
SUBCONTRACTS
(a) DEEDCO shall use its best efforts to include a statement in all subcontracts that it executes
that the subcontractor shall hold the City harmless against all claims of whatever nature arising out
of the subcontractor's performance of work under this Agreement to the extent allowed by law.
(b) IfDEEDCO subcontracts, a copy ofthe executed subcontract must be forwarded to the City
within ten (10) days after execution.
ARTICLE VIII
CONDITIONS OF SERVICES
(a) As a condition of these services, DEEDCO agrees to comply with the HOME Program Final
Rule, 24 CFR Part 92, and any Amendments or Notices issued pursuant thereto.
(b) DEEDCO agrees to comply with the requirements of Executive Orders 11625 and 12432
concerning Minority Business Enterprise and 12138 Women's Business Enterprise which
encourage the use of minority and women's business enterprises, to the maximum extent possible,
in connection with HOME-funded activities.
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(c) DEEDCO agrees to comply with the Displacement, Relocation and Acquisition requirements
in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR Part 24,
(d) DEEDCO agrees to comply with all ofthe following federal laws, executive orders, and
regulations pertaining to fair housing and equal opportunity.
(1) Title VI of the Civil Rights Act of 1964, As Amended (42 U.S.C. 2000d) -- States that
no person may be excluded from participation in, denied the benefits of, or subjected to
discrimination under any program or activity receiving federal financial assistance on the basis of
race, color, or national origin. Its implementing regulations may be found in 28 CFR Part 1.
(2) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42
U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115 -- Prohibits discrimination
in the sale or rent of units in the private housing market against any person on the basis of race,
color, religion, sex, national origin, familial status or handicap.
3) Equal Opportunity in Housing (Executive Order 11063, As Amended by Executive
Order 12259) and implementing regulations at 24 CFR Part 107 -- Prohibits discrimination in
housing or residential property financing related to any federally assisted activity against individuals
on the basis of race, color, religion, sex or national origin.
4) Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101) and its implementing
regulations at 24 CFR Part 146 -- Prohibits age discrimination in programs receiving federal
financial assistance,
5) Equal Employment Opportunity, Executive Order 11246, As Amended and its
implementing regulations at 41 CFR Part 60 -- Prohibits discrimination against any employee or
applicant for employment because of race, color, religion, sex, or national origin. Provisions to
effectuate this prohibition must be included in all construction contracts exceeding $10,000.
(e) DEEDCO agrees to comply with the requirements of Section 3 of the Housing and Urban
Development Act of 1968 (12 U.S,C. 1701 u) -- Requires that, to the greatest extent feasible,
opportunities for training and employment arising from HOME will be provided to low-income
persons residing in the program service area; and, to the greatest extent feasible, contracts for work
to be performed in connection with HOME will be awarded to business concerns which are located
in or owned by persons residing in the program service area.
(f) DEEDCO will ensure that all units in a project assisted with HOME funds comply with the
Lead Based Paint Poisoning Prevention Act (42 U.S,c. 4821, et) and its implementing regulations
at 24 CFR 35.
7
(g) DEEDCO agrees to comply with the Federal Labor Standards Provisions, as described in
HUD Handbook 1344-1 (Federal Labor Standards Compliance in Housing and Community
Development Programs) -- Applies to all projects with 12 or more HOME-assisted units, regardless
of whether HOME funds are used for construction or other costs.
(h) DEEDCO agrees to comply with the requirements of24 CFR part 24 regarding debarment
and suspension.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be effective upon execution by both parties and shall end at the
conclusion of the ten (10) year period of affordability as specified in 24 CFR 92.252 (affordable
rental housing).
ARTICLE X
TERMINATION
The City and DEEDCO agree that this Agreement may be terminated by the City in whole
or in part, for cause (as more specifically defined in Article XXVI herein) or for convenience, in
accordance with the provisions of24 CFR, Part 85.44. A written notification shall be required at
least thirty (30) days prior to the effective date of such termination, and shall include the reason for
the termination (if for cause), the effective date, and in the case of a partial termination, the actual
portion to be terminated. Notwithstanding the language set forth herein, the City's reasons for
terminating the Agreement for convenience, in whole or in part, shall not be arbitrary or capricious.
ARTICLE XI
AMENDMENTS
Any alterations, variations, modifications or waivers of any provisions to this Agreement,
including an increased allocation of funds, shall only be valid when they have been produced in
writing and dilly signed by both parties hereto, Any changes which do not substantially change the
Scope of Services or increase the total amount payable under this Agreement, shall be valid only
when reduced to writing and signed by the City Administration and DEEDCO.
ARTICLE XII
CONFLICT OF INTEREST
(a) DEEDCO shall comply with the standards contained within 24 CFR Part 92.356 which states
that no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee,
agent or consultant of the owner, developer or sponsor) whether private-for-profit or non-profit, may
occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to an
8
employee or agent of the owner or developer of a rental housing project who occupies a HOME-
assisted unit as the project manager or maintenance worker. Exceptions may be granted by the City
in accordance with 24 CFR Part 92.356(f)(2),
(b) DEEDCO shall disclose any possible conflicts of interest or apparent improprieties of any party
that is covered by the above standards. DEEDCO shall make such disclosure in writing to the City
immediately upon DEEDCO's discovery of such possible conflict. The City will then render an
opinion which shall be binding on all parties,
(c) Related Parties. DEEDCO shall report to the City the name, purpose, and any other relevant
information in connection with any related-party transaction. This includes, but is not limited to, a
for-profit subsidiary or affiliate organization, an organization with overlapping boards of directors,
and an organization for which DEEDCO is responsible for appointing memberships, DEEDCO shall
report this information to the City upon forming the relationship or, if already formed, shall report
it immediately. Any supplemental information shall be reported to the City in the required Progress
Report.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
DEEDCO, through an insurance carrier, shall indemnifY and hold harmless the City from any
and all claims, liabilities, losses, and causes of action which may arise out of an act, omission,
negligence or misconduct on the part of DEEDCO or any of its agents, servants, employees,
contractors, patrons, guests, clients, or invitees. DEEDCO, through its insurance carrier, shall pay
all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in
the name of the City, when applicable, and shall pay all costs and judgements which may issue
thereon.
DEEDCO shall maintain during the term of this Agreement, the insurance specified below.
(1) General Liability: $500,000 combined single limit for bodily injury and property damage, for
each occurrence.
(2) Contractual Liability: the policy must include coverage to cover the above indemnification.
(3) Automobile and vehicle coverage in the amount of $500,000 per occurrence shall be required
when the use of automobiles and other vehicles are involved in any way in the performance of the
Agreement, including non-owned automobile coverage.
(4) Workers' Compensation Coverage as per statutory limits of the State of Florida.
(5) Builders Risk/Comprehensive Fire and Hazard Insurance: Full replacement cost ofthe project.
DEEDCO shall deliver to the City the original policy of Builder's Risk and Comprehensive Fire and
9
Hazard Insurance in completed value form with extended coverage in the amount of the full
insurable value of the Project upon completion of construction, issued by a company satisfactory to
the City.
(6) Flood Insurance: DEEDCO shall deliver to the City evidence satisfactory to the City that the
premises are covered by flood insurance supplied by the Federal Insurance Administration to the
maximum amount available, all as provided in the Flood Disaster Protection Act of 1973, as
amended, together with appropriate endorsement. DEEDCO agrees that the City shall have the right
to take any action necessary to continue said insurance in full force.
DEEDCO shall submit to the City an ORIGINAL Certificate of Insurance for the above
coverage. The City of Miami Beach shall be named as an additional insured - to the extent of its
insurable interest on all policies required herein. All insurance coverage shall be approved by the
City's Risk Manager prior to the release of any funds under this Agreement. Further, in the event
evidence of such insurance is not forwarded to the City's Risk Manager within thirty (30) days after
the execution ofthis Agreement, this Agreement shall become null and void, and the City shall have
no obligation under the terms thereof unless a written extension of this thirty (30) day requirement
is secured from the Risk Manager.
ARTICLE XIV
REPORTS
(1) Pro\:ress Reports. DEEDCO agrees to submit monthly progress reports to the City,
describing the status of each project and achievement of the project objectives as provided herein
and in the Scope of Services (Exhibit A) and Budget (Exhibit B), attached hereto. The progress
reports shall be submitted no later than 10 days after the end of each month until such time as all
funds are expended or, for rental projects, until the project is fully occupied.
It will be the responsibility of DEED CO to notify the City in writing, of any actions, law, or event,
that will impede or hinder the success ofthe projects and activities as provided in this Agreement.
After such notification the City will take whatever actions it deems appropriate to ensure the success
of the program.
(2) Tenant and Rent Schedule Certification.
a. DEEDCO shall submit to the City for approval the proposed rents for the HOME
units and, if applicable, the monthly allowances for utilities and services to be paid by the tenant.
The City shall approve submitted rents if such rents comply with applicable Federal standards, or
if HUD has approved same.
b. DEEDCO shall provide the City with the initial tenant list, and any and all
subsequent updates, amendments and modifications thereto, with documentation for all tenants in
the HOME units confirming family size, income, financial classification, ethnicity, and the amount
of the HOME rent. This report will continue to be required for the full period of affordability
hereunder, beginning on the date of issuance of a Final Certification of Completion for the project.
10
c. Annually, DEEDCO shall deliver to the City's Housing and Community
Development Division, by November 1st of each calendar year, its signed report in form and
substance acceptable to the City, to include names of tenants, unit type, family size and income, rents
charged, and occupancy/vacancy factor of each unit for the prior fiscal year (October 1st through
September 30th). The report will continued to be required for the full 1 O-year period of affordability
hereunder beginning on the date of issuance of a Final Certificate of Completion for the project.
(3) Other reports as may be required by the City to demonstrate compliance with any of the terms
of this Agreement.
If the required reports described above are not submitted to the City or are not completed in
the manner acceptable to the City, the City may withhold further payments until they are completed
or may take any other action as the City may deem appropriate.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City administration and/or the
comptroller of the United States may deem necessary, there shall be made available to the City
administration and/or representatives of the comptroller to audit, examine and make audits of all
contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other
data relating to all matters covered by this Agreement. If during the course of a monitoring, the City
determines that any payments made to DEEDCO do not constitute an allowable expenditure, the City
will have the right to deduct/reduce those amounts from their related invoices. DEEDCO must
maintain records necessary to document compliance with the provisions of this Agreement.
ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS
DEEDCO agrees to comply with all applicable Federal regulations as they may apply to
program administration. Additionally, DEEDCO will comply with all State and local laws and
ordinances hereto applicable.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
(b) In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached document, the terms in this Agreement shall rule.
(c) No waiver or breach of any provision of this Agreement shall constitute a waiver of any
subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless
made in writing.
11
ARTICLE XVIII
ACCESS TO RECORDS
DEEDCO, agrees to allow access during normal business hours to all financial records to
authorized Federal, State or City representatives and agrees to provide such assistance as may be
necessary to facilitate financial audit by any of these representatives when deemed necessary to
insure compliance with applicable accounting and financial standards. DEEDCO shall allow access
during normal business hours to all other records, forms, files, and documents which have been
generated in performance of this Agreement, to those personnel as may be designated by the City.
ARTICLE XIX
SEVERABILITY OF PROVISIONS
If any provision of this Agreement is held invalid, the remainder of this Agreement shall not
be affected thereby if such remainder would then continue to conform to the terms and requirements
of applicable law.
ARTICLE XX
PROJECT PUBLICITY
DEEDCO agrees that any news release or other type of publicity pertaining to the acquisition
of the project as stated herein must recognize the City as the recipient funded by the United States
Department of Housing and Urban Development administered by the City's Community/Economic
Development Department and the entity which provided funds for the Project.
ARTICLE XXI
DRUG-FREE WORKPLACE
DEEDCO agrees to administer, in good faith, a policy to ensure that it complies with the
Drug-Free Workplace Act requirements under 24 CFR Part 24, Subpart F, and will ensure that the
workplace is free from the unlawful manufacture, distribution, dispensing, possession or use of
drugs or alcohol.
ARTICLE XXII
NONDELEGABLE
DEEDCO agrees that the obligations undertaken pursuant to this Agreement shall not be
delegated or assigned to any other person or firm unless the City shall first consent in writing to the
performance or assignment of such service or any part thereof by another person or firm.
ARTICLE XXIII
SUCCESSORS AND ASSIGNS
DEEDCO agrees that this Agreement shall be binding upon the parties herein, their heirs,
executors, legal representatives, successors, and assigns.
12
ARTICLE XXIV
INDEPENDENT CONTRACTOR
DEEDCO and its employees and agents shall be deemed to be independent contractors and
not agents or employees of the City, and shall not attain any rights or benefits under the Civil Service
or Pension Ordinances of the City, or any rights generally afforded classified or unclassified
employees; further he/she shall not be deemed entitled to the Florida Workers' Compensation
benefits as an employee of the City.
ARTICLE XXV
ASSIGNMENT
This Agreement may not be assigned or transferred by DEEDCO without the prior written
consent ofthe City thereto, which consent shall not be unreasonably withheld. It shall be deemed
a default of this Agreement in the event that DEEDCO does not strictly comply with the procedures
established herein for obtaining City consent to assignment or transfer as defined by this Paragraph.
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 the Provider transfers an interest of more than one (1 %) percent
ownership in its stock by pledge, sale, or otherwise; or if DEEDCO makes an assignment for the
benefit of its creditors, or uses this Agreement as security or collateral for any loan; or if the Provider
is involved in any bulk transfer of its business or assets, then in that event each of the foregoing
actions shall also be deemed an assignment of this Agreement and shall require the City's prior
written consent. A merger, dissolution, consolidation, conversion, liquidation or appointment of a
receivership for DEEDCO, shall be deemed an assignment of this Agreement and will require the
prior written consent of the City thereto.
ARTICLE XXVI
TERMINATION FOR CAUSE
The City may place DEEDCO in default of this Agreement and may suspend or terminate
this Agreement in whole or in part for cause, as prescribed in Article X herein. "Cause" shall
include, but not be limited to, the following:
(a) DEEDCO's failure to (i) diligently pursue additional project financing and to close
on the acquisition of the project within 60 days from the date of execution of this Agreement, or (ii)
commence work within thirty (30) days from the date of issuance of the Notice to Proceed, or (iii)
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.
Work shall be considered to have commenced and be in active progress when, in the opinion
of the City, a full complement of workers 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.
13
(b) DEEDCO's failure to comply with applicable building, fire, life safety, housing and
zoning laws, rules, regulations and codes.
(c) DEEDCO's default on any of the terms and conditions of the note, mortgage, or other
loan document executed by DEEDCO in favor of a Lender.
(d) DEEDCO's failure to maintain the insurance required by the City and/or Lender.
(e) Failure to comply and/or perform in accordance with any of the terms and conditions
of this Agreement, or any Federal, State or local regulation.
(f) Submitting any required report to the City which is late, incorrect, or incomplete in
any material respect after notice and reasonable opportunity to cure, as set forth in subparagraph (h)
hereof, has been given by the City to DEEDCO.
(g)
infeasible.
Implementation of this Agreement, for any reason is rendered impossible or
(h) Failure to respond in writing within thirty (30) days of notice of same from City to
any concerns raised by the City, including providing substantiating documentation when requested
by the City.
(i) Any evidence of fraud, waste or mismanagement as determined by the City's
monitoring of project(s) under this Agreement, or any violation of applicable HUD rules and
regulations.
(j) DEEDCO's insolvency or bankruptcy.
(k) An assignment or transfer of this Agreement or any interest therein which does not
comply with the procedures set forth in Article XXV herein.
(I) Failure to comply and/or perform in accordance with the affordability requirements,
and/or an unauthorized transfer of title of its HOME projects.
(m) Claims oflien not satisfied or bonded-off, in accordance with Florida Statutes, within
60 days from the date of filing of any such lien.
In the event of a default the City may, thirty (30) days after mailing to DEEDCO 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 complained of is not fully and satisfactorily cured
within thirty (30) days of DEED CO's receipt of such notice of default to DEEDCO, at the expiration
of said thirty (30) day period (or such additional period of time, as permitted by the City, in its sole
discretion, as required to cure such default in the event DEEDCO is diligently pursuing curative
efforts) 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.
14
ARTICLE XXVII
TERMINATION FOR CONVENIENCE
Notwithstanding Article XXVI above, DEEDCO herein consents that the City may terminate
this Agreement, in whole or in part, for convenience, as set forth in 24 CFR Part 85.44.
ARTICLE XXVIII
ADDITIONAL REMEDIES
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 defaulting party waives its right to jury trial and its right to bring permissive
counterclaims against the City in any such action.
ARTICLE XXIX
MAINTENANCE AND RETENTION OF RECORDS
DEEDCO agrees that it will maintain all records required pursuant to 24 CFR Part 92.508,
in an orderly fashion in a readily accessible, permanent and secured location, and that it will prepare
and submit all reports necessary to assist the City in meeting record keeping and reporting
requirements thereunder.
(1) Records shall be maintained for a period of five years after the closeout of funds under this
Agreement except as provided herein (2), (3) and (4).
(2) If any litigation, claim, negotiation, audit or other action has been started before the regular
expiration date, the records must be retained until completion of the action and resolution of all
issues which arise from it, or until the end of the regular period specified in paragraph (1), whichever
is later;
(3) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must be
retained for five years after the affordability period terminates;
(4) Records covering displacements and acquisition must be retained for at least five years after
the date by which the persons displaced from the property and all persons whose property is acquired
for the project have received the final payment to which they are entitled in accordance with 24 CFR
92.353.
15
ARTICLE XXX
LIMIT A TION OF LIABILITY
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 $339,971.
DEEDCO hereby expresses its willingness to enter into this Agreement with DEEDCO's recovery
from the City for any damage action for breach of contract to be limited to a maximum amount of
$339,971. Accordingly, and notwithstanding any other term or condition of this Agreement,
DEEDCO hereby agrees that the City shall not be liable to DEEDCO for damages in an amount in
excess of $339,971, 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.
ARTICLE XXXI
VENUE
This Agreement shall be enforceable in Miami-Dade-County, Florida, and iflegal action is
necessary by either party with respect to the enforcement of any or all terms or conditions herein,
exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida.
ARTICLE XXXII
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies contemplated by this
Agreement to be used for the Funds, originated from grants of federal HOME Investment
Partnerships Program funds, and must be implemented with all of the applicable rules and regulation
of the u.s. Department of Housing and Urban Development. It is expressly understood and agreed
that in the event of curtailment or non-production of said Federal grant funds, that the financial
sources necessary to continue to pay the Provider the Funds will not be available and that this
Agreement will thereby terminate effective as of the time it is determined that said funds are no
longer available. In the event of such determination, DEEDCO agrees that it will not look to, nor
seek to hold liable, the City or any individual member of the City Commission thereof, personally
for the performance of this Agreement and all parties hereto shall be released from further liability
each to the other under the terms of this Agreement.
ARTICLE XXXIII
ACCESSIBILITY LAWS COMPLIANCE
DEEDCO agrees to adhere to and be governed by the following accessibility requirements:
16
.'
(a) Architectural Barriers Act of 1968, As Amended (42 U.S.C. 4151) and its implementing
regulations at 35 CFR Part 107 -- States that public (i.e., those intended to be accessible to the
general public) buildings and conveyances financed with federal funds are designed, constructed,
or altered to provide accessibility to the physically handicapped.
(b) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR Part 8 -- Prohibits discrimination in federally assisted programs on the basis
of handicap and imposes requirements to ensure that "qualified individuals with handicaps" have
access to programs and activities that receive federal funds.
(c) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42
U.S.c. 3601) and its implementing regulations at 24 CFR Part 100-115.
DEEDCO must complete and submit the City's Disability Non-Discrimination Affidavit
(Affidavit), a copy of which is attached hereto and incorporated herein as Exhibit C. In the event
DEED CO fails to execute the City's Affidavit, or is found to be in non-compliance with the
provisions of the Affidavit, the City may impose such sanctions as it may determine to be
appropriate, including but not limited to, withholding of payments to DEEDCO under the Agreement
until compliance and/or cancellation, termination or suspension of the Agreement in whole or in part.
In the event the City cancels or terminates the Agreement pursuant to this Article, DEEDCO shall
not be relieved of liability to the City for damages sustained by the City by virtue of DEED CO's
breach of the Agreement.
ARTICLE XXXIV
NOTICES
All notices shall be sent to the parties at the following addresses:
If to the City:
City of Miami Beach, Community/Economic Development
1700 Convention Center Drive, 3rd Floor
Miami Beach, FL 33139
Attn: (1) City Attorney's Office
and (2) Housing Coordinator
If to DEEDCO:
Dade Employment &Economic Development Corporation, Inc.
Attn: Arthor L. Jackson, Executive Director
141 N.E. Third Avenue, Suite 500
Miami, FL 33132
or to such address and to the attention of such other person as the City or DEEDCO may
from time to time designate by written notice to the other.
17
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized official(s) on the day and date first above indicated.
ATTEST:
DADE EMPLOYMENT AND ECONOMIC
DEVELOPMENT CORPORA TION,INC.,
a Florida not-f~r-profit corpJion< O-J
I
Willia ,Board Chairperson
#~Il ~4
Secre . <
ATTEST:
CITY OF MIAMI BEACH
a Florida Municipal corporation
~rP~
City Clerk
f/(
Mayor
f:bs:DEEDCO/HOMEAGR.
APPROVED AS 10
FORM & LANGUAGE
& FOR EXECUTION
~
lo-~
om.
EXHIBIT A
SCOPE OF SERVICES
SCOPE OF SERVICES
I. The City shall provide a Grant of HOME Program funds to DEEDCO for 1he acquisition and rehabilita1ion
of the project, located at 7734 Abbott Avenue, Miami Beach, Florida, 33141, more particularly described as:
Lot 11 of Block 15, of Altos Del Mar Subdivision, as recorded in Plat Book 8 at Page 14,
of the Public Records of Miami-Dade County, Florida.
2. The following procedures must be followed, prior to the commencement of work on the project:
(a) Each contractor and/or subcontractor mus1 be found to be eligible to work on a federally funded
project The names submitted will be checked against the monthly listing "Consolidated List of
Debarred, Suspended & Ineligible Contractors and Grantees" published by the Federal Government
(b) Ifthe Building is more than 50 years old, (I) DEEDCO'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 tha1 office,
and (2) must submit a copy ofthe 50 year re-certification for the building.
(c) A set of final approved plans and specifications for the project approved by the City's Building
Department must be submitted to the Housing Section of the City's CommunitylEconomic
Development Division.
(d) Building permits must be obtained as required by applicable City Ordinance. Also, any other
necessary permits and applicable approvals from any other governmen1al authorities must be obtained,
if required.
(e) A copy of the contract between DEEDCO 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, if applicable), and applicable federal
regulations and standards.
(f) The General Contractor selected must submit evidence prior to the commencement of work,
satisfactory to the City's Insurance Manager, of the following insurance coverage: I) Liability
insurance against claims arising out of accident or occurrence on the property, in a minimum amount
of$I,OOO,OOO. The City of Miami Beach must be named as additional insured in the policy; and 2)
Proof of worker's compensation coverage; and such other forms of insurance as the City's Risk
Manager may reasonably require,
(g) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the
actual contract price.
When the above requirements have been met, the CommunitylEconomic Development Division and the
Building Services Division will jointly issue a "Notice to Proceed" on the project If DEEDCO 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 discre1ion ofthe City, constitute a default under this Agreement
Exception: Subject to the prior approval ofthe CommunitylEconomic Development Division and the
Building Services Division, emergency repairs can be undertaken on the Project.
3. DEEDCO's General Contractor shall be responsible for compliance with all pollution and asbestos control
standards of the concerned governmental agencies. It shall be the Contrac10r's responsibility to obtain required
inspections from these agencies.
4. Federal regulations require that all tenants in housing rehabilitated wi1h 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 mus1 be undertaken by owners. Copies of a brochure will be provided to
DEEDCO by the City. This information must be provided by DEEDCO to each tenant, and DEEDCO must
retain evidence of having provided this notification to the tenant in a file for the life of this Agreement.
5. 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 S1andards,
6. Consistent with the 01her goals and objectives of the HOME Program, all reasonable steps shall be taken
to minimize displacement as a result of the Project. If the property is occupied at the time the application is
submitted, DEEDCO must submit a tenan1 roll. Addi1ionally, DEEDCO must submit for each unit: 1enant
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 City to assess the
need for temporary relocation or permanent displacement. "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.
a. DEEDCO must pay these expenses directly, or reimburse the tenants for their payments, and
document all such expenditures carefully. Note: In the event it is found necessary to
permanently relocate any tenant, the full cost of such permanent displacement shall be
borne by DEEDCO.
b, DEEDCO agrees to send, or to permit the City or its agentto 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. DEEDCO shall
make every effort to assure that 1emporary accommoda1ions provided for tenants is decent,
safe and sanitary, and that other living conditions are generally acceptable. DEEDCO will
ensure that there is no increase in out-of-pocket housing expenses to the tenant. Those tenants
who were in residence prior to 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". DEEDCO must agree to offer a unit to the
Returning Tenants on the following terms, independent ofthe rent restrictions detailed herein.
I) Returning Tenants must be offered the same apartment previously occupied, or a unit
comparable in terms of size and amenities to the unit occupied prior to the rehabilitation.
2) Returning tenants must be offered a standard lease for at least a 12 month period at the
greater of (a) the same rent being charged before the rehabilitation, or (b) 30 percent of the
returning tenants average monthly gross household income, or (c) the allowable rent pursuant
to governmental regulations.
3) Upon expira1ion of the initial lease, and annually thereafter, for a period of 42 months
following the completion of the rehabilitation work, rent charged the Re1urning 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 cos1s of
the property.
4) Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be
adjusted to the applicable HOME Program Rent.
7. DEEDCO agrees that it will develop an affirmative marketing plan, with concurrence from the City,
that will comply with the City's adopted affirmative marke1ing procedures and requirements for
projects containing 5 or more HOME-assisted housing units. DEEDCO shall 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 HOME funds, without regard
to race, color, national origin, religion, sex, sexual orien1ation, handicap, marital status, familial status,
or age. The affirmative marketing requirements and procedures adopted by DEEDCO shall include,
but not necessarily be limited to, the following:
a. Methods to promote greater choice of housing opportunities;
b. Practices for marketing vacant units that will affirmatively further fair housing (e.g" use of
commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or
slogan, and display of fair housing poster);
c. Special outreach efforts to inform and solicit applications from persons in the housing market area
who are not likely to apply for the housing without special outreach and advertising efforts (e.g., use
of community organizations including, but not limited to: places of worship, employment centers,
community centers, fair housing groups, housing counseling agencies, community development
corporations, and the Housing Authority of the City of Miami Beach). The City shall provide a list
of potential outreach sources to DEEDCO;
d, Maintenance of records describing actions taken to affirmatively market units and records to assess
the results of 1hese 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 these referrals, and documentation
of any other special outreach activities conducted,
e, A certification that states that the Owner agrees to adhere to any corrective actions the City requires
if affirmative marketing requirements are not met.
8, DEEDCO shall rehabilitate the project keeping the same configuration and intemallayout to provide eight
(8) one-bedroom apartments and two (2) efficiency apartments. The one-bedroom apartmen1s will contain
9. It is understood and agreed by DEEDCO, that for a1least ten (10) years beginning on the date of issuance
of a final Certificate of Completion, that rent and occupancy restrictions shall apply for the twelve (12) HOME-
assisted units. The units shall carry rents in accordance with 24 CFR part 92.252.
The HOME Program income set-aside requirements apply at the time HOME assistance is initially provided
and over the lO-year period of affordability. Of the 12 HOME units, 8 units must initially be occupied by
tenants who have annual incomes that are 60% or less of the area median income; 3 units must be occupied
by very-low income tenants (persons with incomes that are 50% or less of median income) throughout the 10
year period of affordability. These very-low income tenants must occupy the units with the Lowest HOME
ren1s. No unit may be rented to a tenant whose income exceeds 80% of the median-income adjusted for family
SIze.
After the project is initially occupied, DEEDCO is required to maintain occupancy of units in accordance with
the HOME Program requirements, 24 CFR part 92.252. Restrictions on occupancy and HOME rents must be
maintained throughout the 10-year period of affordability commencing with the issuance of the Certifica1e of
Completion. Rent and occupancy restrictions shall be enforced through a deed restriction. DEEDCO will
negotiate a lease with each tenant in accordance with 24 CFR part 92.253 and will re-examine tenants incomes
annually to ensure that tenants continue 10 meet the requirements of the HOME Program,
PROJECT IMPLEMENTATION SCHEDULE
Action Steps
Estimated Timeline
I, Acquire Building & Archi1ectural drawings prepared/ permitting
2. Obtain Bids
3. Construction
Total Time
I month
I month
4 months
6 months
.
EXHIBIT B
BUDGET
Sources of Funding:
HOME Grant
$ 339,971.00
$ 250,000.00
Florida Dept. Of Community Affairs
TOTAL SOURCES
$ 589,971.00
Uses of Funds:
Purchase Price
Construction/Rehabilitation Costs
$ 360,000.00
$ 11,571.00
$ 6,000.00
$ 157,200.00
$ 20,700,00
$ 34,500.00
Acquisition Soft Costs
Relocation Costs
Misc. Development Costs
Developer's Fee
$ 589,971.00
Rehabilitation: Construction Cost Breakdown
Note: Costs may be moved among the categories based on final work write-up
ITEM
ESTIMATED COST
$ 7,000.00
75,000.00
8,000.00
9,000.00
9,000.00
16,000.00
12,400.00
20,800.00
$ 157,200.00
Demolition/Trash Removal
Construction (12 Rental Units)
Construction of Common Area
Building Contractor's Profit
Building Contractor's Overhead
Construction Management
Contingencies (10%)
Appliances & Fixtures
TOTAL CONSTRUCTION
DISABILITY NONDISCRIMINATION AFFIDAVIT
CONTRACT REFERENCE HOME Program Agreement
NAME OF FIRM, CORPORATION. OR ORGANIZATION Dade Employment & Economic Dev. Corp.. Inc.
AUTHORIZED AGENT COMPLETING AFFIDAVIT Arthor Jackson
POSITION Executive Director PHONE NUMBER ~05) 577-8080
I,
Arthor Jackson
, being duly first swom state:
That the above named firm, corporation or organization is in compliance wtth and agrees to continue to
comply with, and assure that any subcontractor, or third party contractor under this project complies with all
applicable requirements of the laws listed below including, but not limited to, those provisions pertaining to
employment, provision of programs and services, transportation, communications, access to facilities,
renovations, and new construction.
The Americans with Disabilities Act of 1990 (ADA): Pub. L. 101-336, 104 Stat 327,42 U.S.C. 12101-12213
and 547 U.S.C. Sections 225 and 611 including nle I, Employment; Tittle II, Public Services; Title III,
Public Accommodations and Services Operated by Private Entities; Title IV, Telecommunications; and Title
V. Miscellaneous Provisions.
The Rehabilttation Act of 1973: 29 U.S.C. Section 794,
The Federal Transit Act. as amended: 49 U.S.C. Section 1612.
The Fair Housing Act as amended: 42 U.S.C. Section 3601-3631.
SUBSCRIBED AND SWORN TO (or affirmed) before me on
~~
Signature
October 17, 2 00
Date
~ /2~OO()
(Date)
by
(l/, 1)11" J i9-e..l:<./m
(Affiant)
. .l:!!l/She is personallv known to me or has presented
as identification.
(Type of identification)
{!c
(Print or Stamp Name of Notary)
Notary Public P/O{';'c!/t (State) Notary Seal
:; /;~MJJ
. (Expiration Date)
The City of Miami Beach will not award a contract to any firm, corporation or organization that fails to
complete and submtt this Affidavit with the firm, corporation or organization's bid or proposal or fails to have
this Affidavit on file with the City of Miami Beach.
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