2000-24109 RESO
RESOLUTION NUMBER 2000-24109
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 STATE HOUSING
INITIATIVES PARTNERSIDP (SIDP) PROGRAM
AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, WHICH
PROVIDES SIDP PROGRAM FUNDS IN THE AMOUNT OF
$428,143 FROM FISCAL YEAR 1999/2000 TO CONTINUE A
REHABILITATION COMPONENT FOR THE SCATTERED-
SITE HOME OWNERSHIP PROGRAM PROVIDING
REHABILITATION, DOWN PAYMENT ASSISTANCE,
CLOSING COST ASSISTANCE AND HOME OWNERSHIP
COUNSELING, FOR UNITS PURCHASED BY ELIGIBLE
HOME BUYERS UNDER THE RULES OF THE SIDP
PROGRAM AND THE CITY'S LOCAL HOUSING
ASSISTANCE PLAN.
WHEREAS, the State ofPlorida enacted the William E. Sadowski Affordable Housing Act
(the Act) on July 7,1992, allocating a portion of new and existing documentary stamp taxes on
deeds to local governments to stimulate the production of housing through the State Housing
Initiatives Partnership (SHIP) Program; and
WHEREAS, the Act requires that in order to qualify for funding, local governments develop
a Local Housing Assistance Plan outlining how the funds will be used; and
WHEREAS, on April 1, 1998, the Mayor and City Commission approved and adopted a
Local Housing Assistance Plan for fiscal years 1998/1999, 1999/2000, and 2000/200I by Resolution
No. 98-22696, pursuant to the requirements of the Act and the SHIP Ru1e issued by the Florida
Housing Finance Corporation; and
WHEREAS, the City issued a Notice of Funding Availability (NOFA) on Ju1y 27, 2000,
pursuant to the City's appwved Local Housing Assistance Plan; and
WHEREAS, the City's Loan Review Committee, at its September 18, 2000 meeting,
reviewed the proposal submitted in response to the NOP A to rehabilitate dwelling units to be
acquired by eligible participants and recommended to the Mayor and City Commission the approval
of funding for the proposal submitted by Miami Beach Community Development Corporation
(MBCDC); and
WHEREAS, the Administration now requests that the attached State Housing Initiatives
Partnership (SHIP) 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 authorized to execute the attached State Housing Initiatives Partnership (SHIP) Program
Agreement between the City and Miami Beach Community Development Corporation, which
provides SHIP Program funds in the amount of $428,143 from fiscal year 1999/2000 to continue a
rehabilitation component for the Scattered-Site Home Ownership Program providing rehabilitation,
down payment assistance, closing cost assistance and home ownership counseling, for units
purchased by eligible home buyers under the rules of the SHIP Program and the City's Local
Housing Assistance Plan.
Passed and adopted this 18th day of
October
,2000.
t~
MAYOR
ATTEST:
~yp~
ROBERT PARCHER, CITY CLERK
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\cLmiami-beach:fl.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO~ 1.0* '00
Mayor Neisen O. Kasdin and
Members ofthe City Commission
DATE: Odober 18, 2000
Jorge M. Gonzalez
City Manager
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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 STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION, WHICH PROVIDES SHIP PROGRAM
FUNDS IN THE AMOUNT OF $428,143 FROM FISCAL YEAR 199912000 TO
CONTINUE A REHABILITATION COMPONENT FOR THE SCA TTERED-
SITE HOME OWNERSHIP PROGRAM (PROVIDING REHABILITATION,
DOWN PAYMENT ASSISTANCE, CLOSING COST ASSISTANCE AND
HOME OWNERSHIP COUNSELING), FOR UNITS PURCHASED BY
ELIGIBLE HOME BUYERS UNDER THE RULES OF THE SHIP
PROGRAM AND THE CITY'S LOCAL HOUSING ASSISTANCE PLAN.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida
Housing Finance Corporation, was established by the 1992 William E. Sadowski Affordable
Housing Act to stimulate the production of housing statewide. SHIP Program funds are derived
from documentary stamp levies on real estate transactions, Annually, the Florida Housing Finance
Corporation allocates SHIP Program funds among participating jurisdictions on a formula basis, The
City has participated in the SHIP Program since fiscal year 1995/1996. As required by the Florida
Housing Finance Corporation, on April I , 1998, the City adopted a new Local Housing Assistance
Plan for State fiscal years 1998/1999, 1999/2000, and 2000/2001.
The City has received and allocated $471,875 for fiscal year 1999/2000. In accordance with the
SHIP Program guidelines, a minimum of 75% of SHIP Program funds must be used for
rehabilitation, new construction, or emergency repairs. Concurrently, a minimum of 65% of the
SHIP funds must be used as part of home ownership activities. Ten (10) percent of each fiscal year
FIDDHP\$ALLIMIGUELLISHIP-CommM=o-99-2000do, AGENDA ITEM C I'])
DATE (0 - US'-OcJ
October 18, 2000
Commission Memorandum
SHIP Program
Page 2
allocation and five (5) percent of program income are utilized for administrative costs associated
with the Program.
In accordance with the City's Local Housing Assistance Plan, the City utilized $43,732 for
administrative costs from the $471,875 SHIP Program funds allocated to the City. On July 27, 2000,
the balance of funds from fiscal year 1999/2000 were utilized to issue a Notice of Funding
Availability (NOFA) in the amount of $428,143. The NOFA sought an experienced housing
provider to utilize SHIP Program funds for rehabilitation of scattered-site dwelling units to provide
home ownership opportunities for eligible home buyers. Responses to the NOF A were due on
September I, 2000.
The City received one proposal. The Miami Beach Community Development Corporation
(MBCDC) applied for $428,143 and proposed to utilize the SHIP funds to continue the rehabilitation
component of its successful Scattered-Site Home Ownership Program, In accordance with the City's
Local Housing Assistance Plan, the SHIP Program funds will be used to provide rehabilitation, down
payment assistance, and closing cost assistance to a minimum of 18 units in order to provide home
ownership opportunities to eligible home buyers, including City employees. Concurrently, home
ownership counseling will be provided to 50 participants. The Scattered-Site Home Ownership
Program also utilizes funds leveraged by MBCDC from the Miami-Dade County's Documentary
Surtax Program and from the federal HOME Program. These funds are utilized to provide down
payment assistance to participants in the form of second and third mortgages.
In accordance with the terms of the NOF A, the Housing Staffreviewed the proposal and submitted
it to the Loan Review Committee (LRC). On September 18,2000, the LRC reviewed the proposal
and recommended to the Mayor and City Commission that MBCDC be funded in the amount of
$428,143 from fiscal year 1999/2000. Since 1996, Miami Beach Community Development
Corporation (MBCDC) has successfully operated a rehabilitation component for their Scattered-Site
Home Ownership Program with funding from the City's SHIP Program. To date, MBCDC has
rehabilitated 57 condominium units and utilized SHIP funds in a timely manner.
The Administration proposes to enter into a SHIP Program agreement with MBCDC. Under this
agreement, MBCDC will rehabilitate a minimum of 18 dwelling units to be made available to
eligible home buyers, including City employees, under the SHIP Program rules by June 30, 2002.
The Administration recommends that the Mayor and City Commission adopt this resolution,
authorizing the Mayor and City Clerk to execute the attached State Housing Initiatives Partnership
(SHIP) Program Agreement between the City and Miami Beach Community Development
Corporation, which provides SHIP Program funds in the amount of $428,143 from fiscal year
1999/2000 to continue a rehabilitation component for the Scattered-Site Home Ownership Program
providing rehabilitation, down payment assistance, closing cost assistance and home ownership
counseling, for units purchased by eligible home buyers under the rules of the SHIP Program and
the City's Local Housing Assistance Plan.
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AGREEMENT
TIllS AGREEMENT, entered into this Iffl.day of frro~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, (hereinafter referred to as the City), and the MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION, a not-for-profit Florida corporation, with its principal office located at 1205 Drexel Avenue,
Miami Beach, Florida (hereinafter referred to as MBCDC).
WITNESSETH:
WHEREAS, the City has determined the necessity for providing affordable housing in Miami Beach
through its Consolidated Plan, which was adopted by Resolution No. 95-21670, on July 26, 1995; and
WHEREAS, the City has been designated by the Florida Housing Finance Administration as an eligible
municipality for the receipt of funds as provided under the State Housing Initiatives Partnership (SIDP) Program
pursuant to Chapter 67-37 "fthe Florida Administrative Code (F.A.C.); and
WHEREAS, the City has entered into an Agreement with the Florida Housing Finance Corporation under
the terms of the SIDP Pro~am in order to expand the supply of decent, safe, sanitary and affordable housing
within the City, for income,eligible persons by making available funds to rehabilitate dwelling units; and
WHEREAS, MBCDC has operated a "Scattered-Site" homebuyer program since 1990, assisting low-
and moderate-income individuals and families in the purchase of condominiums at various locations throughout
Miami Beach by providing downpayment assistance and other forms of aid to the prospective homebuyers.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree
as follows:
ARTICLE I
DEFINITIONS
Terms shall be as defined in the State Housing Incentives Partnership (SIDP) Program, 67-37 F.A.C., and any
amendments thereto. Any term defmed in the SIDP Program Rule, not otherwise defmed in this Agreement, shall
have the meaning set forth in said rule.
ARTICLE II
BUDGET AND SCOPE OF SERVICES
MBCDC will utilize the funds set forth in Exhibit "B", attached hereto and made a part hereof by
reference, for rehabilitation, down payment assistance, closing cost assistance, and home ownership counseling
for a Scattered-Site Home Ownership Program in accordance with the Scope of Services in Exhibit "Bn, attached
hereto and made a part hereof by reference.
ARTICLE ill
PROGRAM INCOME
MBCDC agrees that any program income generated from the use of the Funds under this Agreement, or
funds repaid for any reason, after making all debt repayments to the City, or other lender, if any, is to be used to
further other affordable housing activities.
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ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE SHIP AND HOME
PROGRAMS
The parties hereto acknowledge that the funds provided hereunder are to be used in conjunction with
funds received through the HOME Program. Therefore some or all of the projects assisted will be required to
comply with the rules of both programs. The State of Florida has acted to encourage the use of SIDP Program
funds in coordination with HOME funds by suggesting that in projects which use funding from both sources,
generally the HOME rules will take precedence. Alternatively, the rule which is more restrictive will apply.
MBCDC expressly agrees to the following terms and conditions in conformity with Chapter 67-37,
F.A.C.:
(a) Affordability Period. The period oftime SIDP assisted units must remain affordable is in accordance
with Chapter 67-37 F.A.C. as applicable, or the term of a BUD insured mortgage, whichever period occurs later.
The funds shall be repaid to the City in accordance with the provisions of the HOME Program regulations 24
CFR Part 92.254, in the event the housing is transferred or sold for any purpose other than settling the estate of
one of the owners.
(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 SIDP units are transferred or sold to another owner
except as specified herein. Concurrent with the closing on the property rehabilitated hereunder, the owner shall
execute a Restrictive Covenant incorporating the terms of this section.
(c) Projects must provide safe, sanitary, and decent residential housing for low-income and very low-
income, and moderate-income persons (i.e., a person whose income is within specific income levels set forth
herein, as documented by U.S. HUD).
(d) Income Targeting. MBCDC shall ensure and maintain written documentation that conclusively
demonstrates that each project assisted in whole or in part with SIDP 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) and moderate
income (families whose annual incomes which do not exceed 120% of the area median income), as determined
and published from time-to-time by U.S. HUD.
(e) MBCDC affIrms that it maintains a financial management system that conforms to the financial
accountability standards of Attachment F of OMB Circular A-II O.
(f) Records: MBCDC agrees to maintain all records suffIcient to meet the requirements of Chapter 67-
37 F .A.C., including, but not limited to: program records, project records, and program administration records.
All records required herein shall be retained and made accessible for a period of at least three (3) years after
closing, as provided in Chapter 67-37, and Florida Statutes Chapter 119.
(g) Property Standacds. For the duration of this Agreement and any amendments hereto, housing that
is assisted with SIDP funds, at a minimum, must meet the Housing Quality Standards ofCFR Section 882.109.
In addition, housing that is newly constructed or substantially rehabilitated with SIDP funds must meet all
applicable local codes, rehabilitation standards, ordinances, and zoning ordinances.
(h) Maximum and Minimum Amount of SIDP Funds Per Unit. The minimum amount of SHIP funds that
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can be invested is $1,000 per dwelling unit, and the maximum amount of SHIP subsidy is limited to $30,259 per
unit.
(I) Environmental Clearance. For each activity or project assisted hereunder, immediately after a site
is identified, MBCDC shall obtain the City's written environmental clearance statement and hereby agrees to
comply with any and all requirements as may be set forth in the Site Environmental Clearance Statement.
U) Affirmative Marketing. The parties acknowledge that it is unlawful to discriminate on the basis of
race, creed, color, religion, age, sex, sexual orientation, marital status, familial status, national origin or handicap.
MBCDC agrees to adopt affirmative marketing procedures and requirements, in writing, for SHIP-assisted
housing as set forth in Chapter 67-37 F.A.c.
(k) Affordable housing: home ownership. Housing that is for purchase qualifies as affordable housing
only if the housing has an initial purchase price or, appraised value after rehabilitation or repair, that does not
exceed 90% of the median purchase price for existing single-family housing for the Miami PMSA, currently
$113,418, and subject to change from time-to-time, as determined by the U.S. Department of the Treasury; is the
principal residence of an owner whose family qualifies as very low-, low- or moderate-income at the time of
purchase; and is subject to resale restrictions or recapture provisions established by the City for the required
period of affordability.
ARTICLE V
ELIGmLE COSTS
MBCDC agrees that eligible costs for the projects under this Agreement are limited to those eligible costs
as outlined in Chapter 67-37.007 of the SHIP Program Rule. It is expressly agreed by the parties that no funds
obtained hereunder will be used to acquire, rehabilitate or otherwise assist mobile homes.
ARTICLE VI
METHOD OF PAYMENT
(a) MBCDC shall be paid monthly for eligible costs expended, as permitted under the Scope of Services in
Exhibit B, based on actual costs expended, with supporting documentation provided for expenses that are
considered reasonable and necessary and approved by MBCDC's authorized representative.
(b) Any payment due under the terms of this Agreement will be issued upon receipt and approval by the City
of all reports and documents which MBCDC is required to submit to the City pursuant to the terms of this
Agreement and any amendments thereto.
(c) MBCDC agrees to provide evidence of appropriate licenses and insurance as required by this Agreement
for each location assisted hereunder, such evidence must be kept on file with the City.
ARTICLE vn
SUBCONTRACTS
(a) The parties agree that the work or services covered by this Agreement, including but not limited to
rehabilitation work or services, may be subcontracted without the prior written approval of the City. MBCDC
agrees to obtain at least three bids for all rehabilitation work estimated to be in excess of $500. Copies of all bids
received shall be kept in the job file. A copy of the executed contract must be forwarded to the City within ten
(10) days after execution.
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(b) MBCDC agrees to include in all contracts and subcontracts that the contractor or subcontractor(s) shall
hold the City hannless against all claims of any nature arising out of the contractor's performance of work under
the contract and this Agreement to the extent allowed by law.
ARTICLE VIII
CONDITIONS OF SERVICE
As a condition of these services, MBCDC agrees to comply with the regulations of the SHIP Program
and any amendments thereto as stated in Chapter 67-37 F.A.C.
(a) Equal Opportunity: MBCDC agrees to abide by and be governed by the Equal Opportunity and Fair Housing
laws. No person in the United States shall on the grounds of race, color, national origin, religion, disability or
sex be excluded from participation in, or be denied the benefits of or be subjected to discrimination under any
program or activity funded in whole or in part with SHIP funds.
(b) Housing assisted with SHIP funds shall be subject to testing and abatement activities for lead-based paint.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be deemed effective commencing with the execution of the fund reservation
agreement reserving the Funds. The City and MBCDC mutually agree that the Funds are reserved for MBCDC
for the designated time period as follows:
(a) Fiscal Year 1999/2000 funds in the amount of$362,465 plus $65,678 of accrued interest, totaling: $428,143
is reserved through March 30, 2002. MBCDC shall have arranged for the rehabilitation of a minimum of eighteen
(18) dwellings prior to March 30, 2002 pursuant to this agreement. IfMBCDC is not in compliance with the
schedule attached hereto, the City, in its sole discretion, shall have the right to declare this agreement null and
void with regard to the remaining uncommitted funds, and the City shall take any and all actions it deems
necessary to carry out the commitments of the SHIP Housing Assistance Plan, including selecting another service
provider for all or part of the unspent funds.
ARTICLE X
TERMINATION
The City and MBCDC agree that this Agreement may be terminated by the parties in whole or in part,
for cause (as more specifically defmed in herein) or for convenience, in accordance with the provisions of Chapter
67-37, F.A.C. Written notification shall be submitted 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 amendments, alterations, variations, modifications or waivers of any provisions to this Agreement,
including an increased allocation of Funds. will only be valid when they have been reduced to writing and duly
signed the both parties hereto. Any changes which do not substantially change the Scope of Services or increase
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the total amount payable under this Agreement, shall be valid only when reduced to writing and signed by the City
Manager (or his designee) and MBCDC.
ARTICLE xn
CONFLICT OF INTEREST
(a) MBCDC shall comply with the standards contained within Chapter 67-37, F.A.C.
(b) MBCDC shall disclose any possible conflicts of interest or apparent improprieties of any party that is covered
by the above standards. MBCDC shall make such disclosure in writing to the City immediately upon MBCDC's
discovery of such possible conflict. The City will then render an opinion which shall be binding on all
parties.
(c) Related Parties. MBCDC shall report to the City the name, purpose, and any other relevant infonnation in
connection with any related-party transaction. This includes, but is not limited to, dealing with a for-profit
subsidiary or affiliate orgalllzation, an organization with overlapping board of directors, or an organization for
which MBCDC is responsible for appointing members. MBCDC shall report this infonnation to the City upon
fonning the relationship or, if already fonned, shall report it immediately. Any supplemental infonnation shall
be reported in the City required Progress Report.
ARTICLE XIll
INDEMNIFICATION AND INSURANCE
MBCDC shall indemnify and hold harmless the City from any and all claims, liabilities. losses, and
causes of action which may arise out of any act, omission, negligence or misconduct on the part ofMBCDC or
its efforts, employees, agents and/or invitees. MBCDC 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.
MBCDC or the General Contractor( s) selected to conduct the rehabilitation work hereunder shall provide
a General Liability Insurance Policy with coverage for Bodily Injury and Property Damage, in the amount of
$1,000,000 per occurrence (The policy must include coverage for contractual liability to cover the above
indemnification); and the City of Miami Beach shall be named as an additional insured followed by the statement:
"The coverage is primary to all other coverage carried by the City covering this specific agreement only."
MBCDC or the General Contractor(s) shall provide proof of Workers' Compensation Coverage meeting the
statutory limits of the State "f Florida. MBCDC shall submit to the City an ORIGINAL Certificate ofInsurance.
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 of this Agreement, this Agreement shall become null and void, and the City shall
have no obligation under the tenns thereof unless a written extension of this thirty (30) day requirement is secured
from the Risk Manager.
ARTICLE XIV
REPORTS
(a) Progress Reports. MBCDC agrees to submit monthly progress reports to the City, describing the status
of each proposed project and achievement of the projectobjectives as provided in the Scope of Services, (Exhibit
B), attached hereto. The progress reports shall be submitted no later than 10 days after the end of each month,
and shall continue until such time as all Funds are expended on specific projects.
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(b) It will be the responsibility ofMBCDC to notify the City in writing, of any action, law, or event, that will
impede or hinder the success of the 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.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City Administration and/or the Florida
Housing Finance Corporation (FHFC) may deem necessary, there shall be made available to the City
Administration and/or representatives of the FHFC 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 its monitoring, the City determines that any payments made to
MBCDC do not constitute an allowable expenditure, the City will have the right to deduct/reduce those amounts
from their related invoices. MBCDC must maintain records necessary to document compliance with the
provisions of this Agreement, for at least three (3) years after the close of the fiscal year in which the funds
reserved hereunder are fully expended.
ARTICLE XVI
COMPLIAN(;;E WITH LOCAL STATE AND FEDERAL REGULATIONS
MBCDC agrees to comply with all applicable Federal and State regulations as they may apply to program
administration. Additionally, MBCDC will comply with all State and local laws and ordinances hereto applicable,
specifically including the SHIP Program Rule.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement,
to be used for compensation originated from grants under the SHIP Program and are contingent upon approval
of activities by the State of Florida.
(b) Title and paragraph headings are for convenient reference and are not a part of this Agreement.
(c) 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 have precedence. In the event of conflict between the terms
of this Agreement and any terms or conditions contained in the SHIP Program Rule, the terms of the SHIP
Program Rule shall have precedence.
(d) 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.
ARTICLE XVIII
ACCESS TO RECORDS
MBCDC agrees to allow access during normal business hours to all financial and SHIP Program records
to authorized State or City representatives and agrees to provide such assistance as may be necessary to facilitate
the conduct of a financial or operational audit by any of these representatives when deemed necessary to insure
compliance with applicable accounting and financial standards. MBCDC 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.
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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
MBCDC agrees that any news release or other type of publicity pertaining to the project as stated herein
must recognize the City as the recipient funded by the Florida Housing Finance Corporation, under the State
Housing Initiatives Partnership (SHIP) Program and administered by the Community/Economic Development
Department of the City of Miami Beach as the entity which provided funds for the Project.
ARTICLE XXI
SUCCESSORS AND ASSIGNS
MBCDC agrees that this Agreement shall be binding upon the parties herein, their heirs, executors, legal
representatives, successors, and assigns.
ARTICLE xxn
INDEPENDENT CONTRACTOR
MBCDC 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 they shall not be deemed
entitled to the Florida Workers' Compensation benefits as an employee of the City.
ARTICLE xxm
ASSIGNMENT
This Agreement m,'y not be assigned or transferred by MBCDC without the prior written consent of the
City thereto. It shall be deemed a default of this Agreement in the event that MBCDC does not strictly comply
with the procedures established herein for obtaining City consent to assignment or transfer as defined by this
Article. 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 MBCDC In the event
MBCDC transfers an interest of more than five (5%) percent ownership in its stock by pledge, sale, or otherwise;
or ifMBCDC makes an assignment for the benefit of its creditors, or uses this Agreement as security or collateral
for any loan; or ifMBCDC 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 receiver for MBCDC,
shall be deemed an assignment of this Agreement and will require the prior written consent of the City thereto.
ARTICLE XXIV
EVENTS OF DEFAULT
The City may place MBCDC 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 the following:
(a) Failure to comply and/or perform in accordance with any of the terms and conditions of this Agreement,
or any State or local regulation;
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(b) 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 MBCDC;
(c) Implementation of this Agreement, for any reason is rendered impossible or infeasible;
(d) 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;
(e) Any evidence of fraud, waste or mismanagement as determined by the City's monitoring ofproject(s)
under this Agreement, or any violation of applicable SliP Program Rules and regulations;
(t) MBCDC'S insolvency or bankruptcy;
(g) An assigument or transfer of this Agreement or any interest therein which does not comply with the
procedures set forth herein;
(h) If a default is not fully and satisfactorily cured within thirty (30) days of MBCDC's receipt of a notice
of default by the City, at tl", expiration of said thirty (30) day period (or such additional period of time as may
be permitted by the City, in its sole discretion, as required to cure such default in the event MBCDC 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.
ARTICLE XXV
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 XXVI
MAINTENANCE AND RETENTION OF RECORDS
MBCDC agrees that it will maintain all records required pursuant to Chapter 67-37, F.A.C., in an orderly
fashion in a readily accessible, permanent and secure location, and that it will prepare and submit all reports
necessary to assist the City in meeting record keeping and reporting requirements thereunder.
(a) Records shall be maintained for a period of three (3) years after the closeout of funds under this
Agreement except as provided herein (b), (c) and (d).
(b) 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 (a), whichever is later;
(c) 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 three years AFTER the
required period of affordability;
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ARTICLE XXVII
LIMITATION 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 the Funds reserved hereunder, less any amount of
the Funds actually paid to MBCDC by the City at the time of the alleged breach. MBCDC hereby expresses its
willingness to enter into this Agreement with MBCDC's recovery from the City for any damage action for breach
of contract to be limited to a maximum amount of the Funds, less any amount, in whole or in part, of the Funds
actually paid to MBCDC by the City at the time of the alleged breach. Accordingly, and notwithstanding any
other term or condition of this Agreement, MBCDC hereby agrees that the City shall not be liable to MBCDC
for damages in an amount in excess of the Funds, less any amount, in whole or in part, of the Funds actually paid
to MBCDC by the City at the time of the alleged breach, 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 XXVIII
VENUE
This Agreement shall be enforceable in Miami-Dade County Florida, and if legal action is necessary by either
party with respect to the enforcement of any or all of the terms and conditions herein, exclusive venue for the
enforcement of same shall lie in Miami-Dade County, Florida.
ARTICLE XXIX
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 purposes described herein, originated from grants of State Housing Incentives Partnership
(SHIP) Program funds, and must be implemented with all of the applicable rules and regulation of the Florida
Housing Finance Corporation. It is expressly understood and agreed that in the event of curtailment or non-
production of said SHIP Program funds, that the financial sources necessary to continue to pay MBCDC
compensation hereunder 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, MBCDC 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 XXX
NOTICES
All notices shall be sent to the parties at the following addresses, with copies to the Office of the City Attorney:
City:
Miguell Del Campillo, Housing Director
Community/Economic Development Department
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
9
with copies to:
MBCDC:
Murray H. Dubbin, City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Roberto Datorre, President
Miami Beach Community Development Corporation
1205 Drexel Avenue
Miami Beach, FL 33139
The above parties may change such addresses at any time upon giving the other party written notification.
All notices under this Agreement must be in writing and shall be deemed to be served when delivered to the
address of the addressee. All notices served by mail shall be registered mail, return-receipt requested.
IN WITNESS WHEREOF, The parties hereto have caused this Agreement to be executed by their duly
authorized officia1(s), on the day and year first above written.
ATTEST:
lj~'
Secretll1)'"
ATTEST:
}&1MJ' p~
City Clerk
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
Datorre, President
CITY OF MIAMI BEACH
o/J!.... o. """" M"",
APPROVED AS 'TO
FORM & LANGUAGI
& FOR EXECUTION
1Jlij{/;:-
I 0 ~ S-c/lI
Datr.
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EXlDBIT A
OTHER REQUIREMENTS
As the City of Miami Beach is providing this funding through state funds, combined with federal funds, all parties
agree to comply with the following statutes, regulations and executive orders, as amended, as they apply. These
requirements are incorporated herein by reference.
I. Freedom ofInformation and Privacy Acts
- Freedom ofInformation 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 V.S.C. 2000d) and 24 CFR Part I
- Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601)
- Executive Order 11063, as amended by Executive Order 12259
- Executive Orders 11246, 11265, 12138 and 12432
- Section 3 of the Housing and Vrban Development Act of 1968 (12 V.S.C. 170)
- Section 504 of the Rehabilitation Act of 1973 (29 V.S.C. 794)
- The Age Discrimination Act of 1975 (42 V.S.C. 6101)
- The Fair Housing Amendments Act of 1988
3. Environmental Review
- The National Environmental Policy Act (42 V.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 ofl973
4. Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq)
- 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 V.S.C. 4151 and 24 CFR Part 41)
7. Labor Standards
- The Davis-Bacon Act (40 V.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)
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WIlli ALL EXISTING FEDERAL, STATE AND
LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
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EXlDBIT B
Scope of Services
Services to be Provided:
MBCDC will provide: rehabilitation services, down payment assistance and/or closing cost assistance to home
buyers as part of its Scattered-Site Home Ownership Program for a minimum of 17 dwelling units, in accordance
with the attached Sources and Uses of Funds schedule. In addition, MBCDC will provide home ownership
counseling to a minimum of 50 families.
Expenditure Deadline:
MBCDC acknowledges and agrees that all funds provided under this agreement shall be expended, documented
and invoiced to the City fOfFY 1999/2000 funds prior to June 30, 2002 (see attached Schedule of Expenditure).
Recapture of Funds:
Dwelling units that utilize SIllP funds which are sold to eligible home buyers shall be subject to subsidy recapture
provisions which are consistent with those already adopted by the City Local Housing Assistance Plan, adopted
April I, 1998. It is the City's intent to allow the homeowner to realize the equity from their home.
The period of time SIllP assisted units must remain affordable is in accordance with Chapter 67-37 F.A.C. as
applicable, or the term of a HUD insured mortgage, whichever period occurs later. When SIllP funds provided
hereunder are combined with HOME funds, the provisions of the HOME Program with regard to the period of
affordability will apply.
Payment:
Payments by the City to MBCDC shall include those eligible costs as follows:
Construction Costs, which may include:
Actual cost of rehal'llitating housing, including: labor and materials necessary to meet the requirements
of the South Florida Building Code, the City of Miami Beach Building Codes, and U.S. HUD Section 8
Housing Quality Standards.
Current or incipient code violations - improvements to correct violations or conditions which may
develop into hazardous conditions or code violations.
Good and readily maintainable condition - improvements necessary to put the property and facilities in
a condition which requires a minimal amount of maintenance, and when appropriate, improvements to
conserve energy.
General property improvements - improvements which are in addition to those required by applicable
codes and ordinances, but which are incidental to the repairs being done to remedy code violations.
These improvements may be considered appropriate, provided they are economically practical and in the
public interest.
Rehabilitation soft costs, which may include:
Architectural- reasonable fees paid for professional services in preparing work write-ups, cost estimates,
working drawings and specifications; for supervision, for cost certification; and for other designated
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tasks.
Permit fees - those fees paid to the City's Building Services Division for permits necessary to undertake
the work outlined in the application.
Construction supervision costs, in an amount equal to 10% of the value of the rehabilitation and .5% of
the appraised value of the unit.
Down Payment Assistance
Closing Costs Assistance
Home Ownership Counseling, not to exceed two (2) percent of the smp Program funds allocation:
FY 1999/2000
$9,438
Required Documentation:
For each home buyer assisted with the funds provided hereunder, the following documentation is required to be
kept:
A copy of the letter of commitment/award to the smp recipient.
Completed application form, signed and dated, containing income and asset information, and household
characteristics, including age of head of household, family size, race, and special needs, ifany. The infonnation
must be kept in a form acceptable to the City. The combined household annual anticipated gross income of an
applicant must be verified and certified using procedures such as those established by U.s. HOD or the Fanners
Home Administration. Whichever method is used, annual gross anticipated income must be used and the smp
income limits cannot be exceeded.
Income verification fonns for each adult in the household, dated within 120 days of the award date, award letter
to recipients should include the requirement to notify the City's SHIP Coordinator immediately of any change in
income, assets, or household size occurring between the award letter and closing.
A signed affidavit of no income change must be completed, if the closing is more than 120 days after the
completion of the original income verification.
A copy of an appraisal, certified to the lender, dated within 90 days of the closing date, showing a value at least
equal to the selling price.
A copy of the purchase contract.
Letter of commitment or written agreement.
Loan closing statement.
Lien documentation including the required recapture provisions, executed by the purchaser. and recorded in the
public records.
A copy of the initial inspection report and work write-up, describing the specific activities to be included in the
rehabilitation, and the estimated cost.
Copies of bids or proposals from contractors. [At least three, if possible for all work in excess of$500 in value.]
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A copy of the executed construction contract for the rehabilitation work. [copies of the contractor's license, and
proof of insurance should be included.]
Copies of initial, interim and final inspection reports.
Copies of all construction payment requests.
Copies of all partial and final releases of lien or lien waivers
Proof of final payment.
Copy of the certificate of r,ompletion or certificate of occupancy, as appropriate.
Summary reports of all meetings with the home buyer, contractor[ s] and MBCDC staff.
All relevant correspondence.
F:\DDHP\$ALL \1HOMAS\ShipGral\NOF A99-2OOO\Commagre-99-20l)(. .wpd
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