2001-24361 RESO
RESOLUTION NUMBER 2001-24361
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 MULTI-FAMILY HOUSING
REHABILITATION PROGRAM MATCHING GRANT
AGREEMENT WITH THE FLORIDA FAIR HOUSING
CORPORATION IN THE AMOUNT OF $105,000 IN
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM FUNDS THROUGH THE MULTI-FAMILY
HOUSING REHABILITATION PROGRAM FOR THE
REHABILITATION OF THE PROPERTY LOCATED AT 1945
CALAIS DRIVE, MIAMI BEACH, TO PROVIDE SIX (6)
RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS FOR
FIVE YEARS.
WHEREAS, the City has established a program to encourage the rehabilitation of existing
substandard multi-family buildings using funds from the U.S. Department of Housing and Urban
Development (HUD); and
WHEREAS, the Multi-Family Housing Rehabilitation Program (Program) is administered
by the Housing Division ofthe City's CommunitylEconomic Development Department; and
WHEREAS, on July 16, 1997, the Mayor and City Commission approved and adopted
revised Guidelines for the Multi-Family Housing Rehabilitation Program; 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 $399,800, from
the HOME Program NOFA issued on January 31, 2000, for Florida Fair Housing, Corp. for the
acquisition and rehabilitation of the Waterway Village, to provide 10 rental units to income-eligible
tenants, in accordance with the rules of the HOME Program; and
WHEREAS, the Mayor and City Commission authorized, at its July 26, 2000 meeting,
authorized the Mayor and City Commission to execute the attached HOME Investment Partnerships
(HOME) Program Agreement with Florida Fair Housing, Corp., providing a total of Three Hundred
Ninety-Nine Thousand Eight Hundred Dollars ($399,800), in HOME Program funds from fiscal year
1999/2000, towards the cost of acquisition of the Waterway Village, Located at 1945 Calais Drive,
Miami Beach, to provide ten (10) rental units for income-eligible tenants in accordance with the
HOME Program requirements; and
WHEREAS, the City has received an application under the Program Guidelines for funding
the rehabilitation of an existing building located at 1945 Calais Drive, which contains ten (10)
apartment units, consisting of four (4) three-bedroom units, four (4) two-bedroom units, and two (2)
two-bedroom units; and
WHEREAS, the owner of this property, the Florida Fair Housing Corporation (Owner), has
agreed to offer a minimum of six (6) of the ten (10) residential units at reduced rental rates for a
minimum of five (5) years as available rental housing; and
WHEREAS, the City's Loan Review Committee, at its March 30, 2001 meeting, reviewed
the application for assistance and recommended funding for the proposed rehabilitation project in
the amount of$105,OOO for approval by the Mayor and City Commission; and
WHEREAS, the Administration now requests that the attached Matching Grant 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 Multi-Family Housing Rehabilitation Program Matching
Grant Agreement with the Florida Fair Housing Corporation in the amount of $105,000 in
Community Development Block Grant (CDBG) Program funds through the Multi-Family Housing
Rehabilitation Program for the rehabilitation of the property located at 1945 Calais Drive, Miami
Beach, to provide six (6) rental units for income-eligible tenants for five years.
PASSED AND ADOPTED THIS 16th DAY OF
May
, 2001.
rJ1!!Ij
MAYOR
~6" r~{~
ROBERT PARCHER, CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
ATTEST:
1945Cala~Drive-Reso
~-l.;//
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
http:\\ci .miami~beach .fl.us
COMMISSION MEMORANDUM NO. J7y-() (
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: May 16,2001
FROM:
d~
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 MULTI-FAMILY
HOUSING REHABILITATION PROGRAM MATCHING GRANT
AGREEMENT WITH THE FLORIDA FAIR HOUSING CORPORATION IN
THE AMOUNT OF $105,000 IN COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) PROGRAM FUNDS THROUGH THE MULTI-FAMILY
HOUSING REHABILITATION PROGRAM FOR THE REHABILITATION
OF THE PROPERTY LOCATED AT 1945 CALAIS DRIVE, MIAMI BEACH,
TO PROVIDE SIX (6) RENTAL UNITS FOR INCOME-ELIGIBLE
TENANTS FOR FIVE YEARS.
Jorge M. Gonzalez
City Manager
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City administers the Multi-Family Housing Rehabilitation Program through the Housing
Division of the Community and Economic Development Department. Since 1981, the City has
provided financial assistance to property owners through this Program resulting in the successful
renovation of over 1,250 units of rental housing. The Multi-Family Housing Rehabilitation Program
operates with federal funds from the U.S. Department of Housing and Urban Development (HUD)
through the Community Development Block Grant (CDBG) Program.
The Program Guidelines, adopted by the Mayor and City Commission on July 16, 1997, require that
buildings rehabilitated thereunder be maintained in rental use for at least five (5) years. The
proposed Matching Grant Agreement with the property owner includes stipulations requiring
repayment to the City of the full amount of the Grant in case the owner fails to perform the
requirements ofthe Agreement.
On January 31, 2000, the City issued a HOME Program Notice of Funding Availability (NOFA) in
the amount of$1,181,653 for the acquisition and/or rehabilitation of multi-family rental buildings
or scattered site units for the purpose of providing affordable rental housing. On July 26, 2000, the
f:\DDHP'lSALLlMlGUELLI1945 CALAIS DRIVE _ MEMO.DCX:
AGENDA ITEM
C 7';v
5' -/h-CJ/
DATE
May 16,2001
Commission Memorandum
1945 Calais Drive
Page 2
Mayor and City Commission approved funding for the application from the Florida Fair Housing
Corporation in the amount of $399,800 towards the acquisition of The Waterway Village, a ten unit
apartment building located at 1945 Calais Drive, Miami Beach. The ten unit building will provide
two one-bedroom units, four two-bedroom units, and four three-bedroom units. In accordance with
the HOME Program requirements, the Florida Fair Housing Corporation will provide these rental
units for income-eligible tenants for a period of ten (10) years after the rehabilitation is completed.
1945 Calais Drive - Funding Recommended: $105,000
The apartments at 1945 Calais Drive consist of a two-story building, with four (4) three-bedroom
units, four (4) two-bedroom units, and two (2) one-bedroom units. The building was constructed
in 1956 as an apartment building. The architecture of the structure is Post War Modem. The
property is not considered architecturally significant and is not included in the City's register of
historic buildings. The building is not over 50 years of age and does not require review by the State
Historic Preservation Officer (SHPO). The building is a concrete block structure with approximately
8,536 square feet of enclosed space. The site consists of Lot 15 and the west 10 feet of Block 44,
NORMANDY WATER WAY SUBDIVISION, according to the plat thereof recorded in Plat Book
40 at Page 60, of the Public Records of Miami-Dade County, Florida, also known as 1945 Calais
Drive. The lot is 70' x 147' and contains 10,290 square feet, more or less.
The Owner proposes to rehabilitate the building, maintaining \he same basic layout, whielt pl'tWidei!-
an average of 853 square feet per living unit. The Owner has estimated the cost of rehabilitation to
be $274,354, including labor, material, contingency, architectural and related fees. The scope of
work proposed includes the following: installation of new cabinets, kitchen and bathroom, concrete
and block repair, bathrooms, drywall repair and texturing, replacement of doors, interior and exterior,
replacement of all electrical systems to meet code, replacement of floor coverings, tile and wood,
fencing, handicap accessibility for unit # I, installation of central air conditioning, replacement of
laundry machines, replacement of mirrors and medicine cabinets, repair and painting of exterior of
the building, replacement of plumbing, replacement of the roof, painting of the interior, installation
of the bathroom tile, repair of windows, and landscaping.
In November of2000, the property was appraised at $500,000. Utilizing this price as market value,
the construction cost estimate of$274,354 represents 55 percent of the market value of the land and
building before the rehabilitation.
The Owner has received $399,800 of HOME Investment Partnerships (HOME) Program funds from
the City for the acquisition of the property. Therefore, eight (8) ofthe ten (10) units in the building
may be rented at High HOME Rents, and at least two (2) of the units must be rented at Low HOME
Rents, for a period often (10) years starting at completion of the rehabilitation and occupancy of the
units. Currently, the approved U.S. HUD High HOME rates are: $719 for a three-bedroom unit, $630
for a two-bedroom unit, and $523 for a one-bedroom unit; and Low HOME rates are $580 for a
three-bedroom unit and $501 for a two-bedroom unit.
F:\DDHP\SALLIMIGUELLII9-lS CALAIS DRIVE - MEMO,DOC
May 16,2001
Commission Memorandum
1945 Calais Drive
Page 3
At the completion of the HOME Affordability Period, there will be an additional five year
affordability period in accordance with the terms of the Multi-Family Housing Rehabilitation
Program. The rent for six (6) of the apartments (60 percent of the units) will be subject to
restrictions mandated by the Program guidelines. For a period offive (5) years, these six (6) units
rented to tenants earning 80 percent or less of the Area Median Income, currently $28,550 for a
family of two. The rents are to be established in accordance with the CDBG Program Rent schedule
as issued by the U.S. Department of Housing and Urban Development (HUD) for apartments.
Currently, the U.S. HUD approved net rents under this schedule are: $915 for a three-bedroom unit,
$663 for a two-bedroom unit, and $531 for a one-bedroom unit.
The remaining four (4) apartments may be leased at market rents without restriction. An analysis
of the proposed expense ratios indicates that the proposed rent levels should adequately cover the
anticipated operating expenses ofthe property as projected by the Owner.
At the request of the City, the Florida Fair Housing Corporation applied to Miami-Dade County for
$275,000 to rehabilitate the property. The Miami-Dade County Office of Community and Economic
Development notified the Florida Fair Housing Corporation that funding was not available.
Therefore, the Owner has applied to the City's Multi-Family Housing Rehabilitation Program for
a matching grant for the rehabilitation of the property. In accordance with the Multi-Family Housing
Rehabilitation Guidelines, the owner has agreed to provide a match of $169,354 towards the
rehabilitation of the property.
On March 30, 2001, the City's Loan Review Committee (LRC) met and reviewed the application for
funding for this property and voted to recommend approval by the Mayor and City Commission. The
LRC recommended a Matching Grant of $1 05,000 towards the rehabilitation costs for this property.
Under the Program Guidelines, the maximum matching grant that this property can qualify for is
$40,000 (based on: 4 units x $12,500 for three-bedroom units, 4 units x $10,000 per unit for two-
bedroom, and 2 units x $7,500 for one-bedroom units for a total of $1 05,000).
A review of City and County records for the property indicates that there are no unpaid water or
sanitation bills and taxes are paid for the current year. In accordance with the Program Guidelines,
the rehabilitation proposed will bring the property into compliance with the City's Property
Maintenance Standards.
Currently, there are seven (7) tenants and three (3) vacant units in the building. Owner has estimated
that no relocation will be necessary.
F:\ODHP\~ALL\MIGUELL\19~5 CALAIS DRIVE - MEMO.DOC
May 16,2001
Commission Memorandum
1945 Calais Drive
Page 4
The Owner
The Owner, the Florida Fair Housing Corporation, purchased the property at 1945 Calais Drive in
November of2001, and currently owns no other buildings in Miami Beach. Mr. Nick Ekonomou
is the principal of the Florida Fair Housing Corporation. The Florida Fair Housing Corporation
currently operates a 14 unit apartment building at 5814 NE 4th Court, North Miami, Florida.
The Administration recommends that the Mayor and City commission adopt this resolution,
authorizing the Mayor and City Clerk to execute the attached Multi-Family Housing Rehabilitation
Program Matching Grant Agreement with the Florida Fair Housing Corporation in the amount of
$105,000 in Community Development Block Grant (CDBG) Program Funds through the Multi-
Family Housing Rehabilitation Program for the rehabilitation ofthe property located at 1945 Calais
Drive, Miami Beach, to provide six (6) rental units for income-eligible tenants for five years.
JMG/(1ttb~SKC
F:\DDHP\$ALL\MIGUELL\I945 Calais Drive - Memo doc
This instrument preparpl:by:
Raul Aguila, First Ass\ C~ty Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
MUL TI-F AMIL Y HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT
tt.
THIS AGREEMENT entered into this ~ day of~, 2001, by and between:
FLORIDA FAIR HOUSING, CORP., whose business address is 4131 S.W. 37TH Avenue, Suite A, Miami, Florida,
33133, hereinafterreferred to as "Owner", who is the legal owner ofthe propetty at 1945 Calais Drive, Miami Beach,
Florida, 33141 more particularly described as:
Lot 15 and the west 10 feet of Block 44, NORMANDY WATERWAY SUBDIVISION,
according to the plat thereof recorded in Plat Book 40 at Page 60, of the Public Records
of Miami-Dade County, Florida, also known as 1945 Calais Drive, hereinafter referred to
as the "Project",
and 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".
WITNESSETH:
WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter referred to
as "Program", designed to provide [mancial assislance to property owners of deteriorated and subslandard multi-family
residential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and
WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing
Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on July 16, 1997, which are deemed
incorporated by reference and made a part of this Agreement; and
WHEREAS, Owner, as the legal Owner of the Project described above, has agreed to rehabilitate said Project
in accordance with the Guidelines of the Program; and
WHEREAS, the City's Loan Review Committee on March 30, 200 I, recommended approval of assistance to
the Project under the Program, and the provision of assislance has been approved by the Mayor and City Commission,
subject to certain conditions, including the requirement that the Owner and the City enter into this Agreement; and
WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided hereunder
derive from federal Community Development Block Grant funds appropriated to the City by the U.S. Department of
Housing and Urban Development, for the uses and purposes herein referred to, and accordingly it is acknowledged and
agreed that this Agreement is entered into after compliance by the parties with all applicable provisions of Federal, State
and local laws, statutes, rules and regulations as they may apply to this Agreement, which certain of said regulations
are incorporated herein as more fully set forth in Attachment "A".
NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration of the
matching grant monies which are to be paid by City to the Owner, which consideration is hereby acknowledged by the
parties, the parties do agree as follows:
(1) Any amendments, alterations, or variations to this Agreement will only be valid when they have been
reduced to writing and duly signed by the parties.
(2) It is understood and agreed by and between the parties that the Guidelines, as they may be amended
from time to time, represent the scope of services and responsibilities of the parties tmder the Program
and the parties agree to abide by and comply with their roles and responsibilities tmder the Guidelines
as set forth therein.
(3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of the
Program and contract documents.
(4) Rehabilitation of the Project shall be done in accordance with the applicable codes, ordinances and
statutes of the State of Florida, Miami-Dade County, and of the City.
(5) The maximum Matching Grant amount to be provided tmder this Agreement is One Htmdred Five
Thousand Dollars ($105,000). This amount is to be used only to cover the cost of rehabilitating the
buildings, as a match for funds paid by the Owner on at least a dollar-for-dollar hasis. The work is
to be done in accordance with the application and addendum filed by the Owner with the City,
reviewed and recommended by the City's Loan Review Committee on March 30, 200 I, and
subsequently approved by the Mayor and City Commission.
(6) It is understood and agreed by and between the parties that none of the obligations of the City assumed
or created heretmder shall be general obligations of the City and none of the same shall be enforceable
against the City generally. Any and all obligations, liabilities and commitments of the City heretmder,
shall be limited to the payment of a Matching Grant amount of One Htmdred Five Thousand Dollars
($105,000), as specified herein. No other fiscal, legal, equitable or contractual duty or obligation is
assumed by the City, and the Owner by executing this Agreement so agrees.
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 $105,000. 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 amotmt of$105,000, less the
amount of all funds actually paid by the City to Owner pursuant to this Agreement.
Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in an
amount in excess of $105,000, which amount shall be reduced by the amount of the funding actually
paid by the City to Owner pursuant to this Agreement, 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 subparagraph or elsewhere in this Agreement is in any way
intended to be a waiver of the limitation placed on the City's liability as set forth in Florida Statutes,
Section 768.28.
(7) The Matching Grant amount shall be paid to the Owner and shall be disbursed during the
rehabilitation of the Project. After this Matching Grant payment is made by the City to the Owner
and applied by the Owner according to the procedures set forth herein, the City shall be automatically
discharged from any and all obligations, liabilities and commitments heretmder to Owner or any third
person or entity provided, however, that this Section shall not excuse the continued compliance by
Owner with the terms of this Agreement and the federal Program requirements. Owner, for
consideration of One Dollar ($1.00) and other good, valuable, separate and distinct consideration,
receipt of which is hereby acknowledged, hereby saves and holds harmless, indemnifies and protects
the City, its officers and employees from any and all obligations, liabilities, commitments, actions,
claims, causes of action, suits or demands arising or accruing by virtue of this Agreement or the
Project contemplated hereunder.
2
(8) The following procedures must be followed, prior to the commencement of work on this Project:
a) Owner must submit a written request to the City's Housing Division of the Community/Economic
Development Department ("CEDD") for a Pre-Construction Conference, which must be attended by
all contractors and subcontractors. This request must include the names and addresses of the proposed
contractors and sub-contractors, including the names of the principal owners of corporate entities, and
an indication whether each of the contractor's portion of the total project value will exceed $10,000.
This process requires at least ten (10) days advance notification.
b) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded
project. The names submitted will be checked against the "Consolidated List of Debarred, Suspended
& Ineligible Contractors and Grantees" monthly listing published by the Federal Government.
c) If the building is more than 50 years old, Owner'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 that Office.
d) A set of final approved plans and specifications for the Project, approved by the City's Building
Department, must be submitted to the Housing Division of the CEDD.
e) Building permits must be obtained as required by applicable City Ordinance. Also, any other
necessary permits and applicable approvals from any other governmental authorities must be
obtained, if required.
f) A copy of the contract between the Owner 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), and applicable federal regulations and
standards.
g) The contractor selected must submit evidence prior to the commencement of work, satisfactoty 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 $1 ,000,000,
with the City of Miami Beach named as additional insured in the policy; and 2) Proof of worker's
compensation coverage; and 3) such other forms of insurance as the City's Risk Manager may
reasonably require.
h) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the
actual contract price.
I) The Owner must provide a Lien Statement from the City's Finance Department demonstrating that
it is current with the legal and fmancial obligations and/or payments on the Project, and the property
herein, with the City.
When the above requirements have been met, the Housing Division of the CEDD and the Building
Services Division will jointly issue a "Notice to Proceed" on the Project. If the Owner 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 discretion of the City, not be reimbursed under the Program, and could
constitute a default under this Agreement.
ExcePtion: Subject to the prior approval of the Housing Division of the CEDD and the Building
Services Division, emergency repairs can be undertaken on the Project.
3
(9) In consideration for the performance of Owner of its role and responsibilities set forth in this
Agreement, the City agrees to pay to Owner, the sum of One Hundred Five Thousand Dollars
($105,000), as the total of the Matching Grant described herein. Said total shall be disbursed by the
City to the Owner during construction 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 pro-rata
portion of the value of the work completed in the previous period, as certified by the Owner's
Architect or Engineer, and confirmed by the Housing Division of the City's Community and
Economic Development Department. The City's payments hereunder will be computed based on the
ratio of the matching grant amount to the total estimated construction cost. In the event the actual cost
is less than the estimate, the amount of the City's Matching Grant will be reduced proportionately, so
that the City's portion of the total cost is never higher than 50% of the total cost. The fmal ten percent
(10%) of the matching grant 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, including compliance with the requirements of the
Davis Bacon Act, if applicable, and as set forth in the Guidelines.
(10) Owner agrees to comply with the following requirements during and after construction begins:
a) The Owner must announce and publicize the source of the public funds provided for the Project.
A construction sign must be displayed on the site during the construction phase, with the design and
location to be approved by the City. The sign, to be provided and paid for by the Owner, must be
maintained for the duration of the construction work. The City will provide detailed information on
the dimensions and appearance of the sign.
b) The Owner's General Contractor shall be responsible for compliance with all pollution and asbestos
control standards of the concerned governmental agencies. It shall be the Contractor's responsibility
to obtain required inspections from these agencies.
c) On September 15, 1999, the "Requirements for Notification, Evaluation and Reduction ofLead-
Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal
Assistance; Final Rule" was published within title 24 ofthe Code of Federal Regulations as part 35
(24 CFR 35). The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based
Paint Hazard Reduction Act of 1992, which is Title X (ten) of the Housing and Community
Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead-Based Paint
Poisoning Prevention Act of 1971, which is the basic law covering lead-based paint in federally
associated housing.
The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead
in house dust. Scientific research has found that exposure to lead in dust is the most common way
young children become lead poisoned. Therefore, the new regulation requires dust testing after paint
is disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing
is being disposed of or assisted by the federal government, and also on the type and amount of
fmancial assistance, the age of the structure, and whether the dwelling is rental or owner occupied.
PROPERTY EXEMPT FROM LEAD-BASED PAINT REGULATION.
. Housing built since January I, 1978, when lead paint was banned for residential use
. Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is
expected to reside there
. Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing,
dormitories or military barracks
. Property that has been found to be free of lead-based paint by a certified lead-based paint
inspector
. Property where all lead-based paint has been removed
4
. Unoccupied housing that will remain vacant until demolished
. Non-Residential property
. Any rehabilitation or housing improvement that does not disturb a painted surface
TYPES OF HOUSING SUBJECT TO 24 CFR 35
. Federally-Owned housing being sold
. Housing receiving a federal subsidy that is associated with the property, rather than with the
occupants (project-based assistance)
. Public housing
. Housing occupied by a family (with a child) receiving tenant-based subsidy (such as a voucher
or certificate)
. Multifamily housing for which mortgage insurance is being sought
. Housing receiving federal assistance for rehabilitation, reducing homelessness, and other special
needs
If you want copies of the regulation or have general questions, you can call the National Lead
Information Center at (800) 424-LEAD, or TOD (800) 526-5456 for the hearing impaired. You can
also download the regulation and other educational materials at www.hud.gov/lea. For further
information, you may call HUD at (202) 755-1785, exl. 104, or e-mail HUD at
lead regulations@,hud.gov.
d) After the Project, and the property herein, 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 Standards.
(II) It is understood and agreed by Owner that for at least five (5) years, beginning on the date of the
completion of the property's HOME Affordability Period, a minimum of six (6) apartment units
(60%) will be occupied by low and moderate income households at affordable rents. Low and
moderate income households means the combined income of all members of the household does not
exceed 80% of the Area Median Income, as published by HUD. All tenants must be offered a written
lease. A "Household Income Certification Report" will have to be completed for every rental unit
claimed as meeting the above requirements at least annually. This report must be submitted to the
Housing Division of the CEDD within ten (10) days after the commencement of each lease, and an
updated form must be submitted at least annually thereafter during the month of August, for the fiscal
year ended September 30.
The following income limits apply as of this date, but may be revised annually:
I person
2 persons
3 persons
4 persons
$25,000
$28,550
$32,100
$35,700
Monthly rents for units occupied by low and moderate income households are considered affordable
if they do not exceed the "40th Percentile Fair Market Rents for Existing Housing", published by
HUD, as of this date, but subject to revision annually. Currently the rent for a one bedroom apartment
is $571, including a utility allowance of$40 per month, for a net rent of$531 per month excluding
utilities; the rent for a two-bedroom apartment is $712 per month, which includes a $49 per month
utility allowance, for a net of $663 per month, and the rent for a three-bedroom apartment is $978 per
month, which includes a $63 per month utility allowance, for a net of $915 per month.
5
(12) It is understood by Owner that if the Project is converted to condominiums, sold, or withdrawn from
rental use within five (5) years after the Final Certificate of Completion is issued, the full amount of
the Matching Grant payment will become immediately due and payable to the City.
(13) Owner shall deliver to the Housing Division of the CEDD, by August 30th of each calendar year, its
signed notarized report in form and substance acceptable to the City, which includes the names of
tenants, unit type, family income, rents charged, and occupancy factor of each unit for the prior year.
This report will continue to be required through the August 30th following the expiration of the five
(5) year period after the date of issuance of a Final Certificate of Completion.
(14) It shall be deemed a default of this Agreement if Owner does not strictly comply with the terms,
conditions, duties and procedures established herein for obtaining City consent to assignment or
transfer as defmed by this Section. 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. Owner shall not assign any interest in this Agreement and will
not transfer any interest in the same without the prior written consent of the City, which shall take into
consideration any recommendation(s) regarding same by its Loan Review Committee. In the event
Owner is a corporation, limited partnership or other incorporated or artificial business entity, a
transfer of more than ten percent (10%) Ownership interest of its stock by pledge, sale or otherwise
(except a transfer of partnership interests in connection with the syndication of limited partner
interests in the Ownership, which shall not require any consent hereunder); or if Owner makes an
assignment for the benefit of its creditors or uses this Agreement as security or collateral for any loan;
or if Owner is voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if
Owner has a receiver appointed over any of its properties; or if Owner does not satisfy in full or
appeal any judgment for the sum of $5,000 (or more) within thirty (30) days from its' rendition; or
if Owner is involved in a bulk transfer of its business, then, in that event, each of the foregoing actions
will be deemed an assignment ofthis Agreement and require the prior written consent of the City,
which shall take into consideration any recommendation(s) regarding same by its Loan Review
Committee.
In the event Owner is a trust, which includes, without limitation, a land trust and a trust company, any
change in the person or entity who is the trustee or any change in the heirs or beneficiaries of such
trust shall be deemed an assignment under this Section and require the prior written consent of the
City, which shall take into consideration any recommendation(s) regarding same by its Loan Review
Committee. Regardless of the type of entity Owner is defined to be, a merger, insolvency,
bankruptcy, dissolution, consolidation, conversion, liquidation, or appointment ofa receiver for such
Owner shall each be deemed an assignment of this Agreement and will require the prior written
consent of the City upon approval by the Loan Review Committee.
(IS) For purposes of this Agreement, a default shall include, without limitation, the following acts or
events of the Owner, or its agents, servants, employees, or contractors:
(a) Owner's failure to (I) commence work within thirty (30) days from the date of issuance of the
Notice to Proceed by the City; or (ii) 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; or (iii) provide the documentation required to make the fmal payment of the matching
grant, as indicated in the Guidelines, within thirty (30) days from the date of issuance of a Final
Certificate of Completion.
Work shall be considered to have commenced and be in active progress when, in the sole opinion and
discretion of the City, a full complement of workmen and equipment is present at the site to diligently
6
incorporate materials and equipment into the structure throughout the day on each full working day,
weather permitting.
(b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning laws,
rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan document
executed by Owner in favor ofa Lender. Notwithstanding the provisions of Paragraphs 17 and 18,
upon a default of a written indebtedness, including without limitation, a note, mortgage, guarantee,
and this Agreement, Owner waives notice, presentment and/or demand of default, and the full amount
of the Matching Grant payment will become due and payable to the City.
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or Lender.
(f) Owner's failure to correct defects within a reasonable time as defined herein.
(g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines or applicable
laws, rules and regulations pertaining hereto which are referenced by this Agreement.
(h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within sixty (60)
days from the date of filing of any such lien.
(i) An assignment or transfer of this Agreement or any interest therein by Owner which does not
comply with the procedures set forth herein.
(16) 10 the event of a default, the City may, thirty (30) days after mailing to Owner 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 is not fully and satisfactorily cured within thirty (30) days of the City
mailing notice of such default to Owner, to the full satisfaction of the City, at the expiration of said
thirty (30) day period, 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 and the Project, and all funds paid
to the Owner hereunder shall be immediately due and payable to the City.
(17) 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 Owner waives its right to jury trial and its right to bring permissive counterclaims against the
City in any such action to the extent allowed by law.
(18) If the property is occupied at the time the application is submitted the Owner must submit a tenant
roll. Additionally, the Owner must submit for each unit: tenant 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 CEDD to assess the need for
temporary relocation. If a property is occupied and temporary relocation of the tenants is required
during the rehabilitation or construction, the City will reimburse up to fifty percent (50%) of "eligible"
temporary relocation expenses incurred by the property owner in accordance with the budget and plan
submitted as part of the application and approved by the City. "Eligible" expenses will be determined
in accordance with the provisions of Handbook 1378: Tenant Assistance. Relocation and Real
Prooerty ACQuisition, issued by HUD, as amended.
7
(19) The Owner must pay these expenses directly, or reimburse the tenants for their payments, and
document all such expenditures carefully. Upon submittal of a detailed accounting, to the satisfaction
of the City, of all such payments or reimbursements made each month for the duration of the project,
the City will reimburse the owner up to 50% of those eligible expenses incurred for this purpose.
Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such
permanent relocation shall be borne by tbe Owner.
(20) The Owner agrees to send, or to permit the City or its agent to 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. Owner shall make every effort to assure that
temporary accommodations provided for tenants is decent, safe and sanitary, and that other living
conditions are generally acceptable. The Owner will ensure that there is no increase in out-of-pocket
housing expenses to the tenant. Those tenants who were in residence prior 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". Owner must agree to offer a unit
to the Returning Tenants on the following terms, independently of the rent restrictions detailed herein:
a. 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.
b. Returning Tenants must be offered a standard lease for at least a 12 month period at the same rent
being charged before the rehabilitation.
c. Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following
the completion of the rehabilitation work, rent charged the Returning 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 costs of the property.
d. Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted
to the HUD Fair Market Rent, as specified in Chapter I, Section iv (h), if applicable, or to market
rental rate if the Tenant's income is greater than 80% of the Area Median Income.
(21) Notices and demands: All notices, demands, correspondence and communications between the City
and the Owner shall be deemed sufficiently given under the terms of this Agreement if dispatched by
registered or certified mail, postage prepaid, return receipt requested, addressed as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with copies to:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: (1) City Attorney's Office
and: (2) Housing Director, CEDD
If to the Owner:
Nick Ekonomou
Florida Fair Housing, Corp.
4131 S.W. 37" Avenue
Miami, Florida 33133
8
or to such address and to the attention of such other person as the City or the Owner may from time
to time designate by written notice to the other.
(22) It is understood and agreed that the City shall record this Agreement, with the Clerk of the County
Court, Miami-Dade County, Florida and shall furnish the Owner with conformed copies of the
recorded instrument within sixty (60) days of the recordation of this Agreement.
(23) The Owner agrees that upon completion of the rehabilitation hereunder, it will undertake an
affirmative marketing program in accordance with 24 CFR Part 570.601-2. At a minimum, the
Owner must 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 CDBG
funds, without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital
status, familial status, or age. The affirmative marketing requirements and procedures adopted by the
Owner shall include, but not necessarily be limited to, the following:
(a) Methods for informing the public and potential tenants about Federal Fair Housing Laws and the
applicable affirmative marketing policy;
(b) Requirements and practices for carrying out the affirmative marketing plan;
(c) Procedures to be used to inform and solicit applications from persons in the housing market area
who are not likely to apply for the housing without special outreach (e.g., use of community
organizations including, but not limited to: churches, employment centers, community centers, fair
housing groups, housing counseling agencies, community development corporations, and the Housing
Authority of the City of Miami Beach)
(d) Records to be kept describing actions taken to affirmatively market units and records to assess
the results of these 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 Owners and referrals, and
documentation of any other special outreach activities conducted.
(e) A description of how the City can assess the success of affirmative marketing actions; and
(f) A certification that states that the Owner agrees to adhere to whatever corrective actions the City
requires to be taken where affirmative marketing requirements are not met.
(g) Owner agrees to post in a visible location within the building a poster provided by the City
advising the tenants of the City's participation in the project.
9
IN WITNESS WHEREOF, the Owner, and the City have caused this Agreement to be executed by their respective
duly authorized officers, the day and year fIrst above written. THE PARTIES HERETO STATE THAT THEY HAVE
CAREFULLY READ THE FOREGOING AGREEMENT AND THE CITY OF MIAMI BEACH MULTI-FAMILY
REHABILITATION PROGRAM GUIDELINES, AND KNOW THE CONTENTS THEREOF AND FULLY REALIZE
THEIR MEANING AND SIGN THIS AGREEMENT AS THEIR OWN FREE ACT.
WITNESS:
\,/\JV'-
Sig lure:
a I a I f;l
~~-f~L-
~~vc."'- t\, L-1AW\\oO
Print Name:
CITY OF MIAMI BEACH
By:
~....~
NEISE . KASDlN, MAYOR
V\C-l?-14l'H1 orL
ATTEST:
~f 1aJJk
ROBERT PARCHER, CITY CLERK
APPROVED AS TO
FORM & lANGUAGE
'" FOR EXECUTION
1IIc~t '
S-Y~I
Dat..
10
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, thi~Y of ;J1;v
as t1 w'}t"Y , of 1945 Calais Drive, who provided @m~, K__ k>~ c.
~M~ ,
, 200 I, by Nick Ekonomou,
as identification Md did/did not
Na
NO \<\R PUBLIC, State of Florida
Commission N' (}(' 7.:? 71 r,r
.. . 4iiWii~', Sherry Ann Cregnole
My CommtsslOn Exptresf.; "Ji,"1;1 MY COMMISSION' CC729788 EXPIRES
%'~; March 51, 2002
"').;~f;~" BONOED MU TROY fAIN INSUI!ANCt lHe.
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, this .2t<>day of ~ ,2001, by Neisen O. Kasdin, as
Mayor of the City of Miami Beach, who is personally known to me, Md di not take M oath.
~
Name:
NOTARY PUBLI ,State of Florida
Commission N' 00 ().;)()
My Commission Expires:
J':':i\. Ullom R Hatfield
~~ : My Commiaoion DDOO2020
0Ir.'oI Expires February 18.2005
F:\DDHP\SALL\STEVll\Mult-Fam\194$ Calais Drive\194S Calais Drive - Agreement.doc
II
ATTACHMENT "A"
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through federal funds, all parries agree to comply with the
following statutes, regulations and executive orders, as they apply. These requirements are incorporated herein by
reference.
1. Freedom ofInfonnation and Privacy Acts
- Freedom oflnfonnation 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 U.S.C. 2000d) and 24 CFR Parr I;
- Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended;
- Executive Order 11063, as amended by Executive Order 12259;
- Executive Orders 11246, 11265,12138 and 12432;
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.c. 170), as amended;
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended;
- The Age Discrimination Act of 1975 (42 U.S.c. 6101);
- The Fair Housing Amendments Act of 1988.
3. Environmental Review
- The National Environmental Policy Act (42 U.S.c. 4321, et seq);
- The Council on Environmental Quality Regulations (40 CFR Parrs 1500-1508);
- Environmental Review Procedures (24 CFR Parr 58);
- National Historic Preservation Act of 1966.
- National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973.
4. Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq) as amended through H.C.D.
Act of 1992;
- 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 U.S.C. 4151 and 24 CPR Part 41).
7. Labor Standards
- The Davis-Bacon Act (40 U.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).
8. Community Development Block Grant Regulations (24 CFR Part 570).
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL
LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
12