96-22089 RESO
RESOLUTION NUMBER 96-22089
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A RELEASE
AND SATISFACTION OF SUBSIDY AGREEMENT, IN
SATISFACTION OF ALL TERMS AND CONDITIONS OF THE
SUBSIDY AGREEMENT, DATED MAY 27, 1987, AND A
RELEASE AND SATISFACTION OF AMENDMENT TO
SUBSIDY AGREEMENT, IN SATISFACTION OF ALL TERMS
AND CONDITIONS OF THE AMENDMENT TO SUBSIDY
AGREEMENT, DATED MARCH 6,1996; BOTH FOR THE
PATRICIA APARTMENTS, LOCATED AT 842 MERIDIAN
A VENUE.
WHEREAS, on May 27, 1987, the City of Miami Beach entered into a SUBSIDY
AGREEMENT (Agreement) with Alvin I. Malnick, an individual (Owner), and with General
Federal Savings and Loan Association, Inc. (Lender), for the Patricia Apartments located
at 842 Meridian Avenue (Property); and
WHEREAS, the Agreement provided that the City would deposit certain funds to
make available an interest subsidy to encourage the rehabilitation of the Property, in return
for which assistance the Owner agreed to offer a certain number of units at reduced rental
rates for a period of three (3) years to make available affordable housing; and
WHEREAS, the Owner and Lender have complied in all material respects with the
terms and conditions of the Agreement, and the required term of years for reduced rental
rates has now elapsed; and
WHEREAS, the Owner previously requested and the City agreed in the
Amendment to Subsidy Agreement, to accelerate the payment of the subsidy to permit its
use in refinancing the property in exchange for the Owner's agreement to provide fourteen
(14) apartment units at affordable rental rates for a twelve (12) month period, and to
provide seven (7) apartment units for a second twelve (12) month period beginning when
the initial twelve (12) month period expires; and
WHEREAS, the Owner has arranged to provide the agreed-upon fourteen (14)
affordable apartment units for the period from March 1995, through February 1996, and
the seven (7) affordable units from March 1996 through February 1997 in buildings owned
by Morada Ventures, Inc., and Morada Ventures, Inc. has confirmed its willingness to
undertake this responsibility; and
WHEREAS, the Administration requests that both the attached "Release and
Satisfaction of Subsidy Agreement", and "Release and Satisfaction of Amendment to
Subsidy Agreement" be 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
Commission hereby authorize the Mayor and City Clerk to execute the attached Release
and Satisfaction of Subsidy Agreement, in satisfaction of all terms of the Subsidy
Agreement, dated March 29, 1991, and the Release and Satisfaction of Amendment to
Subsidy Agreement, in satisfaction of all terms of the Amendment to Subsidy Agreement,
dated March 6, 1996; both for the Patricia Apartments, located at 842 Meridian Avenue,
Miami Beach.
PASSED AND ADOPTED THIS 11 th
ATTEST:
\(0 {,..q~ YIM.Ck
ROBERT PARCHER, CITY CLERK
II '. ,~'.."')".~ .,
t " , \ q I-I. it\U 0 P,'.LI
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F:ICAHIIRESOIPATRI_RLRES
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA33139
CITY OF MIAMI BEACH-
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Seymour Gelber and
Memben of the City Commission
DATE:
September 11, 1996
FROM:
Jose Garcia-Pedrosa
City Manager
SUBJECT:
A RESOLUTION T E MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEAC ,FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A RELEASE AND SATISFACTION OF SUBSIDY
AGREEMENT, IN SATISFACTION OF ALL TERMS AND CONDITIONS OF
THE SUBSIDY AGREEMENT, DATED MAY 27,1987, AND A RELEASE
AND SATISFACTION OF AMENDMENT TO S.UBSIDY AGREEMENT, IN
SATISFACTION OF ALL TERMS AND CONDITIONS OF THE
AMENDMENT TO SUBSIDY AGREEMENT, DATED MARCH 6, 1996, FOR
THE PATRICIA APARTMENTS, LOCATED AT 842 MERIDIAN AVENUE.
ADMINISTRATION RECOMMENDATION
The City Commission should adopt the attached Resolution authorizing the Mayor and City
Clerk to execute the attached "Release and Satisfaction of Subsidy Agreement", and
"Release and Satisfaction of Amendment to Subsidy Agreement", acknowledging the
fulfillment of the terms and conditions of the Agreement, and the Amendment thereto which
relate to the Patricia Apartments at 842 Meridian Avenue.
BACKGROUND:
The subject property was a participant in the City's successful Multi-Family Housing
Rehabilitation Program. On May 27, 1987, the City of Miami Beach entered into an
agreement entitled: "SUBSIDY AGREEMENT", with Alvin I. Malnick, an individual,
(owner), and with, General Federal Savings and Loan Association of Miami (Lender). The
agreement relates to the property located at 842 Meridian Avenue, known as the Patricia
Apartments. This building consists of 24 apartment units: 6 efficiencies, and 18 one-
bedroom apartments.
The City's only obligation under this Subsidy Agreement was to provide an interest subsidy
payment in the amount of $146,775 from the federal Rental Rehabilitation Program (RRP)
funds placed in an interest-bearing escrow account with the Lender, to be used to reduce
the monthly amortization payments on the $425,000 mortgage loan used to finance the
AGENDA ITEM
C.1C-
DATE~
COMMISSION MEMORANDUM
SEPTEMBER 11, 1996
PAGE 2
rehabilitation of the property.
On March 6, 1996, the City entered into an "AMENDMENT TO SUBSIDY AGREEMENT"
(Amendment) with the Owner and Bank of America National Trust and Savings
Association, successor in interest to the General Federal Savings and Loan Association
of Miami, Inc. as the Lender. The Amendment provided that the remaining balance of
funds in the interest subsidy escrow account be accelerated and used to assist in
refinancing the property. In exchange, the Owner agreed to make available fourteen (14)
rental units at reduced rents in this building or in another building in the City, for a period
of one year from March 1995, and further to continue to offer reduced rents in seven (7)
of the units for a second year.
The subsidy amount has now been fully disbursed, and the owner is now proposing to sell
the property. In order to facilitate the sale of the property, the owner is seeking to record
a Satisfaction of both the Agreement, and of the Amendment thereto. The Owner has
arranged for Morada Ventures, Inc., to enter an agreement with the City, undertaking to
continue to provide the seven (7) reduced rental rate units promised through February
1997.
ANALYSIS:
The City's obligation to the developer has been completed through the payment of the
original subsidy payment. The Owner has complied with his obligations, by completing a
satisfactory rehabilitation project, and by providing 14 units of affordable housing for the
required three-year period. The owner has completed his additional obligation under the
Amendment by providing reduced rental rate units in an alternate building, owned by
Morada Ventures, Inc. Morada Ventures commitment letter to the City to provide these
units is attached.
A review of City and County records indicates that there are no unpaid water bills, and
County property taxes are paid through 1995. There are certain City code enforcement
violations outstanding, the proposed purchaser has requested that the repair of these items
be postponed until after the closing. The Owner has agreed to place in escrow funds
totaling $1,500, which is the estimated cost of the required repairs. The proposed
purchaser plans to complete the required repairs within sixty (60) days after closing on the
property. A copy of the commitment letter for the escrow arrangement is attached.
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the attached
COMMISSION MEMORANDUM
SEPTEMBER 11, 1996
PAGE 3
Resolution authorizing the Mayor and'City Clerk to execute the attached "Release and
Satisfaction of Subsidy Agreement", and "Release and Satisfaction of Amendment to
Subsidy Agreement", in satisfaction of all terms and conditions of the Subsidy Agreement,
and the Amendment thereto, covering the Patricia Apartments, located at 842 Meridian
Avenue.
JGP~DC/CAH
F:\\\CAH\RESO\PA TRI_RL.MEM
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
RELEASE AND SATISFACTION OF AMENDMENT TO SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION (Successor to General Federal Savings and Loan Association of Miami), and ALVIN I.
MALNICK, an individual, their successors and assigns, from any and all obligations under the terms of that
certain agreement captioned: "AMENDMENT TO SUBSIDY AGREEMENT", dated the 6th day of March,
1996, which instrument affects the following described real property:
Lot 3, Block 71, Ocean Beach Addition No.3, according to the Plat thereof as recorded in Plat
Book 2, Page 81 ofthe Public Records of Dade County, Florida, also described as the "Patricia
Apartments" at 842 Meridian Avenue.
And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk of
the Circuit Court, Dade County, Florida to cancel this instrument of record.
IN WITNESS WHEREOF, this instrument has been execute n this 19thday ofSep ember; 1996.
By:
ATTEST:
Kokr rw-~
I c.'
Robert Parcher, City Clerk
l~~A
_,."ro...''''''
,"71/96..
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day, before me, an officer duly qualified to take acknowledgements,
personally appeared SEYMOUR GELBER, Mayor of the City of Miami Beach, who is personally known to
me, and did not take an oath. ~
Witness my hand and official seal this s2f- day of . ~a.iuL.. 1996.
) .
F :\\CAHIRESOIPA TRL R2. REL
N TARY PUBLIC, State of Florida
Commission NO {' (l ;;, ~ 7 ~~"f,;,
My comm~s~~~..:XPi~S: 113 '8
r U!-t'IUAL ~;cn'A'!(YSt;::r- '-',1
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L,~'j 'c' ~;)'~I~~~~~~;i~~~i~~-I;':~:::~~~~'~I~j
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
RELEASE AND SATISFACTION OF SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases GENERAL FEDERAL SAVINGS AND LOAN ASSOCIATION OF
MIAMI, and ALVIN I. MALNICK, an individual, their successors and assigns, from any and all obligations
under the terms of that certain agreement captioned: "SUBSIDY AGREEMENT', dated the 27th day of May,
1987, and recorded on June 17,1987 in the Official Records of Dade County at O.R. Book 13314, Page 3942,
et.seq., which instrument affects the following described real property:
Lot 3, Block 71, Ocean Beach Addition No.3, according to the Plat thereof as recorded in Plat
Book 2, Page 81 of the Public Records of Dade County, Florida, also described as the "Patricia
Apartments" at 842 Meridian Avenue.
And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk of
the Circuit Court, Dade County, Florida to cancel this instrum nt of record.
IN WITNESS WHEREOF, this instrument has been execut on this 19th day ofSe
By:
t,1 ~'
ATTEST:
Ro~+ rM~
I un fWr!\u
Robert Parcher, City Clerk
LEGAL ~.'.' .
BY~~ ..
.... ,~2)'1/Jj
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day, before me, an officer duly qualified to take acknowledgements,
personally appeared SEYMOUR GELBER, Mayor of the City 0 Miami Beach, who is personally known to
me, and did not take an oath.
Witness my hand and official seal this 4 day 0
~ 1996.
~t#:IvjljUJ ~~
NO ARY PUBLlC/ State of Florida
Commission NO 'C.3 (' . V
My Commission Expires: ::t.
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~iY {:C).'~':)',.:::::-;','>.: F\1 H-, '~~".; :l:X?,
_.....-.__....._~------'.--_._._<....,..-
F:\\CAHIRESOIPA TRLR1. REL
09/03/96
SZVZN SUBSI~tZKD UNITS
TO REPLACE PA~!CZA ~TS
TOMT UIE LOCA11. SIZE RUT
PDEZ. CDtm .IClIi 1027 P9lIIS1\._tA AVEU 1tD4 11\IUO S4CICI.OD
LEAl. .. r.l1ETlI 1027 ..sn.'IMlA A~ ~ ItlIUO $450.00
I&II~ CIIUlI 1011 oIEFFBaat A~ ft02 mIl!O 1450.00
~ INIYIE 1017 JEFIUIUI AVEIU: 111M S'ft.btD "25.00
/trGIf!. JA1UIlk 1D17 I!'~ A~ ItOS 5'n1110 S450.OD
'UP III. 1D17 JI.... .wI!JIlIe "06 :maIO M,D.1lO
alIIUiT. V~IA 1017 JEF'EIa A'8lE t'102 SlWIO 1450.011
------------- .
92
.....~ - ~;;7 ...J~rrN..c.Y .......t<UIH
September 4, BlO
Mr. Carl Hastings
Housing Rehabilitation Specialists
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Dear Carl:
This letter will confirm our discussion re;;::, Jwinq
repair costs for the Patricia code violations. ::,; f the
Patricia will place in escrow $1,500 to be used f::: ;tion
of the code violations at the Pa.tricia. These v::,;' 11 be
corrected wi thin 60 days after the transfer of tn! ;:, J the
purchaser. To the extent the code violations a:;' lcted
within this time, the escrow proceeds will be USt::: the
code violations. Upon a Code Compliance inspect::,:) all
violations have been corrected, the funds will ::::,) the
party placinq the funds in escrow.
This escrow 1s being established in order to C lease
of the Subsidy Agreement between the owner of the ::: 1 the
City of Miami Beach. The release of the Subsi:;' will
allow the sale .of the property. Upon the sale, :r,;: will
correct the code violations.
Please call with any questions.
Very trulIZ~s,
~!X
DS/clb
1414 CoI&nsAwrl/j8, Suite 1, Milmilll:ach,fl!31l!
(305) 5~0189
.- - "",4
..... ~ _ ..... '"-J' .,J &.--. . ....... a....... '-'" _ ...... '-" . , 1 r _ ~ _
t-'.\::J2
:M '0 H A 0 A
September 4, 1996
Mr. Carl Hastings
Housing Rehabilitation Specialists
City of Miami Beach
1700 convention Center Drive
Miami Beach, Florida 33139
By Fax
Dear Carl:
This letter will confir.m our agreement for Morada Ventures to
assume the subsidy unit obliqations of the Patricia apartments.
The obligations currently are for seven units to run through
February, 1997. At that time all subsidy unit obliqations will be
fulfilled.
The units that will be used to meet the obligation are set
forth on the attached list.
s,
DS/clb
Enclosure
1414 co/rIllS Avenue, Suire I, Miami BeO(~ Fl33 J 39
(305) 53lYf89
RESOLUTION NUMBER
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A RELEASE
AND SATISFACTION OF SUBSIDY AGREEMENT, IN
SATISFACTION OF ALL TERMS AND CONDITIONS OF THE
SUBSIDY AGREEMENT, DATED MAY 27, 1987, AND A
RELEASE AND SATISFACTION OF AMENDMENT TO
SUBSIDY AGREEMENT, IN SATISFACTION OF ALL TERMS
AND CONDITIONS OF THE AMENDMENT TO SUBSIDY
AGREEMENT, DATED MARCH 6,1996; BOTH FOR THE
PA TRICIA APARTMENTS, LOCATED AT 842 MERIDIAN
A VENUE.
WHEREAS, on May 27, 1987, the City of Miami Beach entered into a SUBSIDY
AGREEMENT (Agreement) with Alvin I. Malnick, an individual (Owner), and with General
Federal Savings and Loan Association, Inc. (Lender), for the Patricia Apartments located
at 842 Meridian Avenue (Property); and
WHEREAS, the Agreement provided that the City would deposit certain funds to
make available an interest subsidy to encourage the rehabilitation of the Property, in return
for which assistance the Owner agreed to offer a certain number of units at reduced rental
rates for a period of three (3) years to make available affordable housing; and
WHEREAS, the Owner and Lender have complied in all material respects with the
terms and conditions of the Agreement, and the required term of years for reduced rental
rates has now elapsed; and
WHEREAS, the Owner previously requested and the City agreed in the
Amendment to Subsidy Agreement, to accelerate the payment of the subsidy to permit its
use in refinancing the property in exchange for the Owner's agreement to provide fourteen
(14) apartment units at affordable rental rates for a twelve (12) month period, and to
provide seven (7) apartment units for a second twelve (12) month period beginning when
the initial twelve (12) month period expires; and
WHEREAS, the Owner has arranged to provide the agreed-upon fourteen (14)
affordable apartment units for the period from March 1995, through February 1996, and
the seven (7) affordable units from March 1996 through February 1997 in buildings owned
by Morada Ventures, Inc., and Morada Ventures, Inc. has confirmed its willingness to
undertake this responsibility; and
WHEREAS, the Administration requests that both the attached "Release and
Satisfaction of Subsidy Agreement", and "Release and Satisfaction of Amendment to
Subsidy Agreement" be executed by the Mayor and City Clerk.
86
NOW, THEREFORE, BE IT RESOLVED BY THE MA VOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby authorize the Mayor and City Clerk to execute the attached Release
and Satisfaction of Subsidy Agreement, in satisfaction of all terms of the Subsidy
Agreement, dated March 29, 1991, and the Release and Satisfaction of Amendment to
Subsidy Agreement, in satisfaction of all terms of the Amendment to Subsidy Agreement,
dated March 6, 1996; both for the Patricia Apartments, located at 842 Meridian Avenue,
Miami Beach.
PASSED AND ADOPTED THIS
DAY OF SEPTEMBER, 1996.
SEYMOUR GELBER, MAYOR
ATTEST:
ROBERT PARCHER, CITY CLERK
'. . .,;~ /II r'~2-\"""'"l .~~
Ii.' ., W ,- -'KU. '
~ . i.., I" i 'Ji:U
lEGAL DEPT.
Ej ~ !((.~
'0 , Qh-l/w
- ~ r41I-/-'=!,____-.
F:ICAHI\RESOIPA TRLRLRES
87
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
RELEASE AND SATISFACTION OF SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases GENERAL FEDERAL SAVINGS AND LOAN ASSOCIATION OF
MIAMI, and ALVIN I. MALNICK, an individual, their successors and assigns, from any and all obligations
under the terms of that certain agreement captioned: "SUBSIDY AGREEMENT', dated the 27th day of May,
1987, and recorded on June 17, 1987 in the Official Records of Dade County at O.R. Book 13314, Page 3942,
et.seq., which instrument affects the following described real property:
Lot 3, Block 71, Ocean Beach Addition No.3, according to the Plat thereof as recorded in Plat
Book 2, Page 81 of the Public Records of Dade County, Florida, also described as the "Patricia
Apartments" at 842 Meridian Avenue.
And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk of
the Circuit Court, Dade County, Florida to cancel this instrument of record.
IN WITNESS WHEREOF, this instrument has been executed on this _ day of , 1996.
CITY OF MIAMI BEACH
By:
Seymour Gelber, Mayor
ATTEST:
... ,.', ~-"':~:. I"") ~ r' ~ ',-....'>. ~ ,
, unl'Jl fi!~r'i"\L.i J ':.'j
Robert Parcher, City Clerk
LEGAL ~
By 41( ~ __
~.::3 -J/-f/J~- .
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day, before me, an officer duly qualified to take acknowledgements,
personally appeared SEYMOUR GELBER, Mayor of the City of Miami Beach, who is personally known to
me, and did not take an oath.
Witness my hand and official seal this _ day of , 1996.
NOTARY PUBLIC, State of Florida
Commission NO
My Commission Expires:
F:\\CAH\RESOIPATRLR1.REl
88
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
RELEASE AND SATISFACTION OF AMENDMENT TO SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION (Successor to General Federal Savings and Loan Association of Miami), and ALVIN I.
MALNICK, an individual, their successors and assigns, from any and all obligations under the terms of that
certain agreement captioned: "AMENDMENT TO SUBSIDY AGREEMENT", dated the 6th day of March,
1996, which instrument affects the following described real property:
Lot 3, Block 71, Ocean Beach Addition No.3, according to the Plat thereof as recorded in Plat
Book 2, Page 81 of the Public Records of Dade County, Florida, also described as the "Patricia
Apartments" at 842 Meridian Avenue.
And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk of
the Circuit Court, Dade County, Florida to cancel this instrument of record.
IN WITNESS WHEREOF, this instrument has been executed on this _ day of ,1996.
CITY OF MIAMI BEACH
By:
Seymour Gelber, Mayor
ATTEST:
(\,}(. .
-.
, . .
t :). '~.j, . ~ "t
Robert Parcher, City Clerk
LEG" L l\-~'""'
By ;;;A
~'_.., qI" /::1/
-.- -(-7/-'/ ().,.-.~.
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day, before me, an officer duly qualified to take acknowledgements,
personally appeared SEYMOUR GELBER, Mayor of the City of Miami Beach, who is personally known to
me, and did not take an oath.
Witness my hand and official seal this _ day of , 1996.
NOTARY PUBLIC, State of Florida
Commission NO
My Commission Expires:
F:\\CAHlRESOIPATRLR2.REl
89
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH-
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Seymour Gelber and
Memben of the City Commission
DATE:
September 11, 1996
FROM:
Jose Garcia-Pedrosa
City Manager
SUBJECf:
A RESOLUTION T E MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEAC , FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A RELEASE AND SATISFACTION OF SUBSIDY
AGREEMENT, IN SATISFACTION OF ALL TERMS AND CONDITIONS OF
THE SUBSIDY AGREEMENT, DATED MAY 27, 1987, AND A RELEASE
AND SATISFACTION OF AMENDMENT TO S.UBSIDY AGREEMENT, IN
SATISFACTION OF ALL TERMS AND CONDITIONS OF THE
AMENDMENT TO SUBSIDY AGREEMENT, DATED MARCH 6, 1996, FOR
THE PATRICIA APARTMENTS, LOCATED AT 842 MERIDIAN AVENUE.
ADMINISTRATION RECOMMENDATION
The City Commission should adopt the attached Resolution authorizing the Mayor and City
Clerk to execute the attached "Release and Satisfaction of Subsidy Agreement", and
"Release and Satisfaction of Amendment to Subsidy Agreement", acknowledging the
fulfillment of the terms and conditions of the Agreement, and the Amendment thereto which
relate to the Patricia Apartments at 842 Meridian Avenue.
BACKGROUND:
The subject property was a participant in the City's successful Multi-Family Housing
Rehabilitation Program. On May 27, 1987, the City of Miami Beach entered into an
agreement entitled: "SUBSIDY AGREEMENT", with Alvin I. Malnick, an individual,
(owner), and with, General Federal Savings and Loan Association of Miami (Lender). The
agreement relates to the property located at 842 Meridian Avenue, known as the Patricia
Apartments. This building consists of 24 apartment units: 6 efficiencies, and 18 one-
bedroom apartments.
The City's only obligation under this Subsidy Agreement was to provide an interest subsidy
payment in the amount of $146,775 from the federal Rental Rehabilitation Program (RRP)
funds placed in an interest-bearing escrow account with the Lender, to be used to reduce
the monthly amortization payments on the $425,000 mortgage loan used to finance the
AGENDA ITEM C. 1 C.-
DATE~
83
COMMISSION MEMORANDUM
SEPTEMBER 11, 1996
PAGE 2
rehabilitation of the property.
On March 6, 1996, the City entered into an "AMENDMENT TO SUBSIDY AGREEMENT'
(Amendment) with the Owner and Bank of America National Trust and Savings
Association, successor in interest to the General Federal Savings and Loan Association
of Miami, Inc. as the Lender. The Amendment provided that the remaining balance of
funds in the interest subsidy escrow account be accelerated and used to assist in
refinancing the property. In exchange, the Owner agreed to make available fourteen (14)
rental units at reduced rents in this building or in another building in the City, for a period
of one year from March 1995, and further to continue to offer reduced rents in seven (7)
of the units for a second year.
The subsidy amount has now been fully disbursed, and the owner is now proposing to sell
the property. In order to facilitate the sale of the property, the owner is seeking to record
a Satisfaction of both the Agreement, and of the Amendment thereto. The Owner has
arranged for Morada Ventures, Inc., to enter an agreement with the City, undertaking to
continue to provide the seven (7) reduced rental rate units promised through February
1997.
ANALYSIS:
The City's obligation to the developer has been completed through the payment of the
original subsidy payment. The Owner has complied with his obligations, by completing a
satisfactory rehabilitation project, and by providing 14 units of affordable housing for the
required three-year period. The owner has completed his additional obligation under the
Amendment by providing reduced rental rate units in an alternate building, owned by
Morada Ventures, Inc. Morada Ventures commitment letter to the City to provide these
units is attached.
A review of City and County records indicates that there are no unpaid water bills, and
County property taxes are paid through 1995. There are certain City code enforcement
violations outstanding, the proposed purchaser has requested that the repair of these items
be postponed until after the closing. The Owner has agreed to place in escrow funds
totaling $1,500, which is the estimated cost of the required repairs. The proposed
purchaser plans to complete the required repairs within sixty (60) days after closing on the
property. A copy of the commitment letter for the escrow arrangement is attached.
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the attached
84
COMMISSION MEMORANDUM
SEPTEMBER 11, 1996
PAGE 3
Resolution authorizing the Mayor and' City Clerk to execute the attached "Release and
Satisfaction of Subsidy Agreement", and "Release and Satisfaction of Amendment to
Subsidy Agreement", in satisfaction of all terms and conditions of the Subsidy Agreement,
and the Amendment thereto, covering the Patricia Apartments, located at 842 Meridian
Avenue.
JGP/~/MDC/CAH
F:\\\CAH\RESO\PA TRLRL.MEM
85