2008-26951 ResoRESOLUTION NO. 2008-26951
A RESOLUTION AUTHORIZING THE MAYOR AND THE CITY CLERK
TO EXECUTE THE A HOME INVESTMENT PARTNERSHIPS (HOME)
PROGRAM AGREEMENT WITH THE MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC), PROVIDING $185,273 OF
HOME PROGRAM FUNDS FROM FISCAL YEAR 2007/2008
PURSUANT TO A NOTICE OF FUNDING AVAILABILITY ISSUED ON
OCTOBER 1, 2007, FOR MBCDC TO CONTINUE AN AFFORDABLE
HOUSING REHABILITATION PROGRAM AND PROVIDE RENTAL
HOUSING FOR INCOME-ELIGIBLE ELDERLY PARTICIPANTS IN THE
VILLA MARIA APARTMENTS, LOCATED AT 2800 COLLINS AVENUE,
MIAMI BEACH, FLORIDA; FURTHER APPROVING AONE-TIME ONLY
ASSIGNMENT OF THIS AGREEMENT TO MBCDC: VILLA MARIA,
LLC, A NOT-FOR-PROFIT ENTITY CREATED BY MBCDC AS A
SUCCESSOR IN INTEREST IN TITLE TO THE PROPERTY LOCATED
AT 2800 COLLINS AVENUE
WHEREAS, on February 18, 1992, the City was designated by the U.S.
Department of Housing and Urban Development (HUD) as a Participating
Jurisdiction to receive funds through the HOME Investment Partnerships (HOME)
Program under 24 CFR 92; and
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 (U.S. 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, in accordance with the HOME Program regulations, the City
must reserve a minimum of fifteen (15%) percent of each fiscal year's HOME
allocation for a CHDO set-aside for investment in housing to be developed,
sponsored or owned by a designated CHDO; and
WHEREAS, on December 8, 2004, the City Commission adopted
Resolution No. 2004-25757 authorizing the execution of a HOME Program
Agreement between the City and MBCDC, providing $1,100,000 of HOME
Program funds for the acquisition of the Villa Maria Apartments; and
WHEREAS, on February, 2, 2005, the City Commission adopted
Resolution No. 2005-25799 authorizing the execution of a First Amendment to
the HOME Investments Partnership Program Agreement with MBCDC, providing
$500,000 from its HOME CHDO Set-Aside funds from Fiscal Year 2004/2005 for
the acquisition of the Villa Maria Apartments project; and
WHEREAS, on April 11, 2007, the City Commission adopted Resolution
No. 2007-26511 authorizing the execution of a Second Amendment to the HOME
Investments Partnership Program Agreement with MBCDC, providing $800,000
from its HOME CHDO Set-Aside funds from Fiscal Year 2005/2006 and
$800,000 from its HOME CHDO Set-Aside funds from Fiscal Year 2006/2007 for
a total allocation of $1,600,000 for the payment of the existing financing plus
accumulated interest for the Villa Maria Apartments project; and
WHEREAS, the City of Miami Beach received $1,159,144 HOME Program
funding from U.S. HUD for FY 2007/2008 and allocated City administration funds
as allowed by the HOME regulations and $800,000 CHDO funds for the Meridian
Place Apartments, located at 530 Meridian Avenue, for payment of seller
financing; and
WHEREAS, on October 1, 2007, the City issued a HOME Program Notice
of Funding Availability (NOFA) for the remaining balance of FY 2007/2008 HOME
Program funds in the amount of $185,273 for rehabilitation initiatives to upgrade
the affordable housing stock in Miami Beach using funds provided by U.S. HUD
under the HOME program; and
WHEREAS, MBCDC was the sole applicant for the funding pursuant to
the NOFA and on March 12, 2008, the Loan Review Committee passed a motion
recommending an award to MBCDC in the amount of $185,273 from FY
2007/2008 HOME Program funds for construction rehabilitation for the Villa Maria
Apartments; and
WHEREAS, MBCDC has created anot-for-profit entity, MBCDC: Villa
Maria, LLC, which is the successor in interest to MBCDC, has assumed all
interests and title to the Villa Maria Apartments and is the sole member of
MBCDC: Villa Maria, LLC.
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 HOME Investment Partnerships
(HOME) Program Agreement with Miami Beach Community Development
Corporation (MBCDC), providing $185,273 of HOME Program funds from Fiscal
Year 2007/08 to MBCDC for the rehabilitation of the Villa Maria Apartments,
located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for
income-eligible elderly participants in accordance with the HOME Program
requirements.
PASSED AND ADOPTED THIS 10th DAY OF December , 2008
ATTEST:
CITY CLERK M YOR
Robert Parcher Matti Herrera Bower
T:WGENDA\2008\December 10\Consent\HOME 2007 Allocation Villa Maria Resolution.doc
APPROVED AS TO
FORM & LANGUAGE
N
4 0~'
ate
COMMISSION ITEM SUMMARY
Cnnrlansptl Title
A Resolution Authorizing a HOME Program Agreement with MBCDC, providing $185,273 of HOME program funds from
FY 2007/08 pursuant to a NOFA issued on October 1, 2007, for MBCDC to continue rehabilitation and provide rental
housing for income-eligible elderly participants in The Villa Maria Apartments located at 2800 Collins Avenue.
Ke Intended Outcome Su orted:
Increase availabili of workforce/affordable housin .
upporting Data (Surveys, Environmental Scan, etc.):
Based on the 2007 Customer Satisfaction Surve ,affordable housin was a concern for 82% of those surve ed.
Issue
Shall the City provide $185,273 of HOME Program funds pursuant to a Notice of Funding Availability to MBCDC to
continue rehabilitation and provide rental housing for income-eligible elderly participants in The Villa Maria Apartments?
Item Summary/Recommendatton:
The City of Miami Beach has received an annual allocation of HOME funds from U.S. Department of Housing and Urban
Development since 1992 for the purpose of expanding the supply of housing for persons meeting the income criteria of the
HOME Program. The HOME Program requires the City to set aside a minimum of 15% of its annual allocation for a
particular type of not-for-profit organization called a Community Housing Development Organization (CHDO). Miami
Beach Community Development Corporation (MBCDC) was designated as a CHDO by HUD in 1993 and continues to be
the City's Certified CHDO.
To date, the City of Miami Beach has previously awarded $3,200,000 HOME Investment Partnership Program funds
(HOME) to MBCDC for acquisition of the Villa Maria Apartments.
In FY 2007/08, the City received $1,159,144 HOME Program funding and allocated $800,000 CHDO funds forthe Meridian
Place Apartments for payment of seller financing. After setting aside allowable City administration funds, in October 2007,
the City issued a HOME Program Notice of Funding Availability (NOFA) in the amount of $185,273, the remaining balance
of the HOME Program annual allocation, for rehabilitation initiatives to upgrade the affordable housing stock in Miami
Beach.
MBCDC was the sole respondent to the NOFA and proposed to utilize the HOME Program funds to continue the
rehabilitation of Villa Maria. On March 12, 2008, the Loan Review Committee passed a motion recommending approval of
$185,273 of HOME Program funds to be allocated to MBCDC for construction rehabilitation of the Villa Maria Apartments,
with the understanding that a covenant will be recorded against the property requiring that the property remain affordable
for 30 years.
MBCDC has created snot-for-profit entity, MBCDC: Villa Maria, LLC, which is the successor in interest to MBCDC and has
assumed all interests and title to the Villa Maria Apartments. Therefore, an assignment of the Agreement is necessary to
ensure the City is contracting directly with the legal owner of the property.
Advisory Board Recommendation:
On 3/12/08 the Loan Review Committee recommended approval of HOME funds for the construction rehabilitation of Villa
Maria Apartments, or, if the funding was not entirely necessary for the Villa Maria project, then MBCDC could utilize the
balance of the funding towards the rehabilitation of Meridian Place Apartments.
Financial Information:
Source of Funds: Amount Account Approved
1 $185,273 151-5221
2
3
4
O I Total
Financial Impact Summary: ~
Ci Clerk's Office Le islative Trackin
Anna Parekh
Si n-Offs:
Department Director Assistan City Manager City Manager
Anna Parekh Hilda Fernande e~
r:\AGENDA\2008\December 10\Consent\HOME 2007 Allocation Villa Maria ~tfmmary'.doc
m MIAMIBEACH
~~
AGENDA ITEM
DATE ~ ~ '~
m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 10, 2008
SUBJECT: A RESOLUTION AUTHORIZING THE MAYOR AND THE CITY CLERK TO
EXECUTE A HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), PROVIDING $185,273 OF HOME PROGRAM
FUNDS FROM FISCAL YEAR 2007/2008 PURSUANT TO A NOTICE OF
FUNDING AVAILABILITY ISSUED ON OCTOBER 1, 2007, FOR MBCDC TO
CONTINUE AN AFFORDABLE HOUSING REHABILITATION PROGRAM AND
PROVIDE RENTAL HOUSING FOR INCOME-ELIGIBLE ELDERLY
PARTICIPANTS IN THE VILLA MARIA APARTMENTS, LOCATED AT 2800
COLLINS AVENUE, MIAMI BEACH, FLORIDA; FURTHER APPROVING A
ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO MBCDC: VILLA
MARIA, LLC, ANOT-FOR-PROFIT ENTITY CREATED BY MBCDC AS A
SUCCESSOR IN INTEREST IN TITLE TO THE PROPERTY LOCATED AT 2800
COLLINS AVENUE
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City of Miami Beach has received an annual allocation of HOME 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 meeting the income criteria of the HOME
Program. 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. Miami Beach Community Development
Corporation (MBCDC) was officially certified and designated as a CHDO by HUD in 1993
and continues to be the Citys Certified CHDO.
To date, the City of Miami Beach has awarded $3,200,000 HOME Investment Partnerships
Program funds (HOME) to MBCDC for the acquisition of the Villa Maria Apartment building
located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eligible
elderly tenants, and for the development on the adjacent site of Villa Matti, a 36 unit
affordable elderly housing project, located at 221 28th Street.
Page 2 of 2
HOME 2007 NOFA
In FY 07/08, the City received $1,159,144 HOME Program funding from U.S. HUD and
allocated $800,000 CHDO funds for the Meridian Place Apartments for payment of seller
financing. The City also allocated FY 07/08 administration funds as allowed by HOME
Program regulations, a balance of $185,273 remained. HUD funds must be committed
within 24 months after the last day of the month in which HUD notifies the participating
jurisdiction of HUD's execution of the HOME Investment Partnership Agreement; otherwise,
HUD can reduce or recapture funding.
On October 1, 2007, the City issued a HOME Program Notice of Funding Availability (NOFA)
for the remaining balance of the HOME Program annual allocation in the amount of
$185,273 for rehabilitation initiatives to upgrade the affordable housing stock in Miami
Beach. HOME program funds are provided as conditional grants for either rehabilitation of
existing multi-family buildings, acquisition and rehabilitation of existing multi-family buildings,
or acquisition and/or rehabilitation of scattered sites units.
MBCDC was the sole applicant for the funding pursuant to the NOFA. On March 12, 2008,
the Loan Review Committee passed a motion recommending approval of $185,273 from
HOME Program funding FY 2007/08 to be allocated to MBCDC for construction
rehabilitation funding for the Villa Maria Apartments, with the understanding that a covenant
will be recorded against the property requiring that the property remain affordable for 30
years.
For every project MBCDC develops, a separate ownership entity is created. In the case of
The Villa Maria Apartments, MBCDC: Villa Maria, LLC, a Florida not for profit limited liability
company, was created to own the property. However, funding allocations were awarded to
MBCDC, a not for profit Florida corporation, which is the sole member of MBCDC: Villa
Maria, LLC. Therefore, an assignment of the Agreement from MBCDC, Inc. to MBCDC: The
Villa Maria, LLC, is necessary to ensure the City is contracting directlywith the legal ownerof
the property in question.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida, authorize the execution of the HOME Investment Partnership Program
(HOME) Agreement, between the City of Miami Beach and MBCDC, providing $185,273
from Fiscal Year 2007/2008 HOME funds to continue rehabilitation of the Villa Maria
Apartments which will provide affordable housing to income eligible elderly participants.
JMG/HMF/AP
T:WGENDA\2008\December 10\Consent\HOME 2007 Allocation Villa Maria Memo.doc