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2001-24260 RESO RESOLUTION NO. 2000-24260 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT, DATED JUNE 9,1999, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC); PROVIDING AN ADDITIONAL $200,000 FROM THE $800,000 HOME CHDO FUNDS PREVIOUSLY ALLOCATED TO MBCDC BY THE CITY'S ONE YEAR ACTION PLAN FOR FY 2000/2001, TOWARDS THE COST OF THE ACQUISITION AND REHABILITATION OF THE CRESPI PARK APARTMENTS, LOCATED AT 7900-7920 CRESPI BOULEVARD, AND 1011 AND 1023 79TH STREET, MIAMI BEACH, TO PROVIDE SIXTEEN (16) RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. WHEREAS, the City has established a HOME Investment Partnerships Program (HOME Program) under the rules of the U.S. Department of Housing and Urban Development (HUD), which provides financial assistance for the purpose of providing affordable housing within the City; and WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified Community Housing Development Organization (CHDO) under the HOME Program; and WHEREAS, the City has determined the necessity for providing affordable housing in the City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July I, 1998, and its One-Year Action Plan for Federal Funds for Fiscal Year 2000/2001, adopted by Resolution No. 2000-23997 on July 12,2000, as amended; and WHEREAS, the City's One Year Action Plan for Federal Funds for FY 2000/200 I allocated to MBCDC $800,000 from the City's Fiscal Year 2000/2001 HOME Program allocation for eligible CHDO projects; and WHEREAS, on June 9, 1999, the City adopted Resolution No. 99-23209, authorizing a HOME Program Agreement between the City and MBCDC to provide $970,000 of HOME Program funds for the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard, and 1011 and 1023 79th Street, Miami Beach; and WHEREAS, MBCDC has submitted a request to the City to utilize an additional $200,000 of the previously allocated Fiscal Year 2000/2001 HOME CHDO funds for additional rehabilitation costs and to satisfy a Federal Home Loan Bank Board loan for the Crespi Park Apartments; and WHEREAS, the City's Loan Review Committee, at its February 2, 2001 meeting, recommended that the Mayor and City Commission approve a request from MBCDC for the utilization of an $200,000 from their HOME CHDO allocation for additional funding for the Crespi Park Apartments at 7900-7920 Crespi Boulevard, and 1011 and 1023 79th Street, to complete the rehabilitation construction and satisfy the loan from the Federal Home Loan Bank Board. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are hereby authorized to execute a First Amendment to the HOME Investment Partnerships Program (HOME) Agreement dated June 9, 1999, between the City of Miami Beach and Miami Beach Community Development Corporation (MBCDC); providing an additional $200,000 from the $800,000 HOME CHDO funds previously allocated to MBCDC by the City's One Year Action Plan for FY 2000/200 I, towards the cost of the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard, and 101 I and 1023 79th Street, Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in accordance with the HOME Program requirements. PASSED AND ADOPTED THIS 21st DAY OF February ,2001 ATTEST: MAj~ ~d' ftU~ I Y CLERK F:\DDHP\$ALL\RUSSELL\RESOLUTN\CRESPI-A.RES APPROVED At; .'~ FORM & LANGUAGE & FOR EXECUTION '2. -3.~) CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139 http:\\ci,miami-beach.fl.u$ TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. '63-0( Mayor Neisen O. Kasdin and Members ofthe City Commission DATE: February 21, 2001 Jorge M. Gonzalez City Manager 'o~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT, DATED JUNE 9, 1999, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC) PROVIDING AN ADDITIONAL $200,000 FROM THE $800,000 HOME CHDO FUNDS PREVIOUSLY ALLOCATED TO MBCDC BY THE CITY'S ONE YEAR ACTION PLAN FOR FISCAL YEAR 2000/2001, TOWARDS THE COST OF THE ACQUISITION AND REHABILITATION OF THE CRESPI PARK APARTMENTS LOCATED AT 7900-7920 CRESPI BOULEVARD AND 1011 AND 1023 79TH STREET, MIAMI BEACH, TO PROVIDE SIXTEEN (16) RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. 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 (HUD) since 1992 for the purpose of expanding the supply of housing for persons rneeting 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. The HOME Program requires the City, in its capacity as a participating jurisdiction, to set aside a minimum of 15 percent of its annual allocation for a particular type of not- for-profit organization called a Community Housing Development Organization (CHDO). The CHDO is required to use these funds for housing development activities in which the CHDO is the owner, sponsor or developer of the housing. The Miami Beach Community Development Corporation (MBCDC) was designated as a CHDO in 1993. F:\DDHP\SALL IM1GUELLICERSPI-A.MEM AGENDA ITEM c:::; 7 F DATE~ Commission Memorandum February 21, 2001 Amendment to Crespi Park Apartments Agreement Page 2 On July 12, 2000, the City adopted the One-year Action Plan for federal funds for fiscal year 2000/2001. The Plan provided a HOME CHDO allocation in the amount of $800,000 of HOME Program funds to MBCDC for the acquisition and/or rehabilitation of multi-family buildings or scattered sites units for the purpose of providing rental and/or homeownership opportunities to income-eligible participants. On June 9,1999, the City Commission adopted Resolution No. 99-23209 authorizing the execution of a HOME Program Agreement with MBCDC, providing $970,000 of HOME Program funds for the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street, to provide sixteen (16) rental units for income-eligible tenants in accordance with the HOME Program requirements. On July 21, 1999, MBCDC acquired the property known as the Crespi Apartments at 7900-7920 Crespi Boulevard, the Israbian Apartments at 1023 79th Street and an adjacent vacant lot at 1011 79th Street for a total of $725,500. The three buildings are being combined to form the Crespi Park Apartments. The vacant lot is being developed into a parking lot. The two buildings at 7900 and 7920 Crespi Boulevard each contain four two-bedroom units in the two story buildings. The building at 1023 79th Street contains two two-bedroom units and six one-bedroom units. MBCDC is retaining the 16 units in the three buildings. In accordance with the HOME Program requirements, MBCDC will provide these rental units for income-eligible tenants for a period of 15 years after the rehabilitation of the buildings is completed. On January 13, 2000, MBCDC entered into a contract for the rehabilitation of all three buildings. The construction included: installation of a central air-conditioning system in each unit; replacement of the electrical system; replacernent of existing windows; new kitchen appliances; refurbishment and/or replacement of bathroom fixtures; refinishing woodwork; one A.D.A. accessible unit; refinishing/re-plastering ceiling and wall areas as needed; re-landscaping entry; and installation of security features as necessary. Once construction was started, it was determined that additional roofing repairs were needed. Also, all plumbing drain lines needed replacing and the sanitary sewer service line from the building to the street needed replacing as well. Additionally, new sidewalks were required at the street, and further work was necessary for the building to meet code standards. Consequently, unanticipated rehabilitation costs were incurred in the amount of $170,278. The original rehabilitation contract was for the amount of $520,464. Once MBCDC determined that the cost of the rehabilitation exceeded contract amount, they requested additional funding from Miami-Dade County. The County had previously provided MBCDC with a $100,000 loan from the Surtax Documentary Program. The County agreed to increase the loan amount to $250,000 in order to assist MBCDC with the completion of the rehabilitation. F:\DDHP\$ALl.\MtGUELLICERSPl-A.MEM Commission Memorandum February 21,2001 Amendment to Crespi Park Apartments Agreement Page 3 On January 5, 2001, MBCDC requested to utilize $200,000, from their HOME CHDO allocation of $800,000 from fiscal year 2000/200 I, for $87,900 of unanticipated rehabilitation costs for the Crespi Park Apartments, and $112, I 00 to satisfy a loan from the Federal Home Loan Bank Board (FHLBB) awarded to MBCDC for the Crespi Park Apartments. MBCDC had obtained a loan from the Federal Home Loan Bank Board in the amount of $ 112, I 00. The loan is subject to provisions that require all of the units to be rented at very low rents, which translates into a loss of rental income that would render the project economically infeasible. Therefore, MBCDC is satisfying the FHLBB loan to ensure the feasibility of the Crespi Park Apartments during the affordability period. On February 2, 2001, the Loan Review Committee recommended that the Mayor and City Commission approve a request from MBCDC for the utilization of $200,000 from their $800,000 HOME CHDO allocation for additional funding for the Crespi Park Apartments at 7900-7920 Crespi Boulevard and 101 I and 1023 79th Street, to complete the rehabilitation construction and satisfy the loan from the Federal Home Loan Bank Board. The Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute a First Amendment to the HOME Investment Partnerships Program Agreement, dated June 9, 1999, between the City of Miami Beach and Miami Beach Community Development Corporation (MBCDC) providing an additional $200,000 from the $800,000 HOME CHDO funds previously allocated to MBCDC by the City's One Year Action Plan for fiscal year 2000/2001, towards the cost of the acquisition and rehabilitation of the Crespi Park Apartments located at 7900- 7920 Crespi Boulevard and 101 I and 1023 79th Street, Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in accordance with the HOME Program requirements. JMG/~~~S 'df< F:\DDHPlSALL\MIGlIELL\CERSPI.A.MEM FIRST AMENDMENT TO HOME PROGRAM AGREEMENT TillS FIRST AMENDMENT TO THE AGREEMENT, entered into this ~ day of ~."'I,2001, 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 MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit Corporation, with offices located at 1205 Drexel Avenue, Miami Beach, Florida (hereinafter referred to as Owner). WITNESSETH: WHEREAS, on July 12,2000, the City adopted Resolution No. 2000-23997, authorizing a HOME Program Agreement with Owner which committed $800,000 from the City's FY 2000/2001 HOME Program allocation for eligible CHDO projects; and WHEREAS, on June 9, 1999, the City adopted Resolution No. 99-23209, authorizing a HOME Program Agreement and the City and Owner entered into an agreement to provide $970,000 of HOME Program funds for the acquisition and rehabilitation of the Crespi Park Apartments, located at 7900- 7920 Crespi Boulevard and 101 I and 1023 79th Street, Miami Beach; and WHEREAS, the Owner has submitted a request to the City to utilize the $200,000 of the previously committed Fiscal Year 2000/2001 CHDO funds for additional construction costs and to replace a Federal Home loan Bank Board Loan for the Crespi Park Apartments; and WHEREAS, on February 2, 2001, the City's Loan Review Committee approved the use of $200,000 in previously allocated funds toward the rehabilitation of the sixteen (16) unit Crespi Park Apartments; and WHEREAS, on January 31, 2000, the City issued a HOME Program Notice of Funding Availability in the amount of $1 ,181 ,653 for the acquisition and/or rehabilitation of multi-family rental buildings or scattered sites for the purpose of providing affordable rental housing; and WHEREAS, Owner warrants and represents that it possesses the legal authority to enter into this Agreement, by way of a resolution that has been duly adopted as an official act of the Board of Directors, authorizing the execution of this Agreement, including all understandings and assurances contained herein, and authorizing the person(s) identified as their official representative(s) to execute this Agreement and any other documents which may be necessary to implement this project; and WHEREAS, the City and the Owner now wish to amend the Agreement. NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, the parties hereto do hereby agree as follows; 1. ARTICLE II, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in its entirety and amended as follows: 1 In consideration of the performance by Owner of its role and responsibilities set forth in this Agreement, the City agrees to provide a conditional grant of HOME Program funds to Owner in the amount of One Million, One Hundred Seventy Thousand Dollars ($1,170,000) (Funds) which consists of $600,000 of previously allocated Fiscal Year 1999/2000 CHDO set- aside funds; $120,253 from Fiscal Year 1998/99; $179,747 from Fiscal Year 1999/2000; and $200,000 ofCHDO set-aside funds from Fiscal Year 2000/2001. 2. ARTICLE VIII, CONDITIONS OF SERVICE, Paragraph (f), page 6, is hereby deleted in its entirety and amended as follows: (f) Owner will ensure that all units in a project assisted with HOME funds comply with the Lead Based Poisoning Act (42 U.S.C. 4821, et seq.) as amended by Title X ofthe Housing and Community Development Act of 1992 (42 U.S.C. 4851 et seq.) and its implementing regulations as published in 24 CFR, PART 35-LEAD-BASED PAINT POISONING PREVENTION IN CERTAIN RESIDENTIAL STRUCTURES. 3. ARTICLE XXX, LIMITATION OF LIABILITY, page 14, is hereby deleted in its entirety and amended as follows: The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $1,1 70,000. Owner hereby expresses its willingness to enter into this Agreement with Owner's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $1,170,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Owner hereby agrees that the City shall not be liable to Owner for damages in an amount in excess of $1,170,000, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. 4. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the revised EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT BUDGET, reflecting the adjustments in the HOME Program funds from the City of Miami Beach. 5. Except as amended by this Amendment, no term or condition of the Agreement shall be modified and the same shall remain in full force and effect; provided, however, if any revision of this Amendment is in conflict with, or inconsistent with, any information in the Agreement, the provision contained in this Amendment shall govern and control. 9. This Amendment shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto. 2 IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day and date first above written. ATTEST: MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION a Florida not-for-profit corporation 9~ SecretarY . entJ Authorized Signatory ATTEST: ~ K fCVt~ CITY OF MIAMI BEACH ,Florida M~iJr.. <=pomtioo City Clerk Mayor F :\DDHP\SALL \RUSSELL\RESOlUTN\CRESPI-A.AGR APPROVED AS TO FORM & LANGUAGE I. FOR EXECUTION 'A/I""'~"t1J, 1--Q-o( f~u. EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT BUDGET EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT SOURCES AND USES OF FUNDS SABRINA APARTMENTS 1551 PENNSYLVANIA AVENUE ESTIMATED SOURCES OF FUNDS CITY OF MIAMI BEACH HOME GRANT FLORIDA DEPARTMENT OF COMMUNITY AFFAIRS, (1 ST MORTGAGE) MIAMI-DADE COUNTY SURTAX, (2ND MORTGAGE) MBCDC 1,170,000 238,000 250,000 3.708 1,661,708 USES OF FUNDS ACQU1SITlON OF PROPERTY REHABILITATION PRE-DEVELOPMENT COSTS DEVELOPER'S FEE 725,500 690,742 155,466 90.000 1,661,708