2009-27120 ResoRESOLUTION NO. 2009-27120
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING, INSUBSTANTIAL FORM,
AMENDMENT NO. 1 TO THE STATE HOUSING PARTNERSHIPS (SHIP)
PROGRAM AGREEMENT FOR FISCAL YEAR 2006/2007 BETWEEN THE
CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), IN THE AMOUNT OF $798,763.50, FOR REHABILITATION, DOWN
PAYMENT ASSISTANCE, CLOSING COSTS ASSISTANCE AND HOME
OWNERSHIP COUNSELING FOR THE SCATTERED-SITE HOME
OWNERSHIP PROGRAM AND RENTAL DEVELOPMENT PROGRAM FOR
INCOME-ELIGIBLE PARTICIPANTS; SAID AMENDMENT PROVIDING FOR
AN EXTENSION OF THE TERM TO JUNE 30, 2010; ALLOWING
DRAWDOWN OF FUNDS FOR ELIGIBLE COSTS (SUCH DRAWDOWNS TO
BE SECURED WITH APPROPRIATE LEGALLY ENFORCEABLE AND
RECORDABLE DOCUMENTATION); AND AMENDING OTHER TERMS AS
REQUIRED TO CLARIFY OR MODIFY TERMS PERMISSIBLE UNDER THE
SHIP PROGRAM REGULATIONS; FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE ANY DOCUMENTATION NECESSARY TO
EFFECTUATE THE AMENDMENT TO THE AGREEMENT
WHEREAS, the City has determined the necessity for providing affordable housing
in Miami Beach through its Consolidated Plan, which was adopted by Resolution No. 2008-
26847, on July 16, 2008; and
WHEREAS, on September 10, 2008, the City Mayor and City Commission approved
Resolution No. 2008-26887, authorizing the Mayor and the City Clerk to execute a State
Housing Initiative Partnership (SHIP) Program agreement between the City and MBCDC;
and
WHEREAS, on September 10, 2008, the City and MBCDC executed a SHIP
Agreement in the amount of seven hundred ninety eight thousand seven hundred sixty
three dollars and fifty three cents ($798,763.53), for 2006/2007 SHIP (the 2006/2007 SHIP
Agreement); and
WHEREAS, these funds were to be used exclusively for rehabilitation, down
payment assistance, closing costs assistance and homeownership counseling for
MBCDC's Scattered-Site Home Ownership Program and Rental Development; and
WHEREAS, the economic conditions and the lack of access to private and public
finances have created a delay in MBCDC'S rehabilitation of the Allen Building, where a
significant portion of the SHIP funds were allocated; the expenditure deadline of June 30,
2009 cannot be met; and
WHEREAS, an amendment to the 2006/2007 SHIP Agreement is necessary to
extend the expenditure deadline from June 30, 2009, to June 30 2010, and to otherwise
clarify or modify terms permissible under the SHIP regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City
Commission hereby approve, in substantial form, Amendment No. 1 to the State Housing
Partnerships (SHIP) Program Agreement for Fiscal Year 2006/2007 between the City and
MBCDC, in the amount of $798,763.50, for rehabilitation, down payment assistance,
closing costs assistance and home ownership counseling for the Scattered-Site Home
Ownership Program and Rental Development Program for Income-Eligible Participants;
said Amendment providing for an extension of the term to June 30, 2010; allowing
drawdown of funds for eligible costs (such drawdowns to be secured with appropriate
legally enforceable and recordable documentation); and amending other terms as required
to clarify or modify terms permissible under the SHIP Program regulations further
authorizing the City Manager to execute any documentation necessary to effectuate the
Amendment.
PASSED and ADOPTED this 15th day of July, 2009.
AYOR
ATTEST BY:
CITY CLERK
Robert Parcher
T:\AGENDA\2009Wu1y 15\Consent\SHIP Resolution (RESO) 071509.doc
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
t~ FOR EXECUTION
'~ ~-c3"b~1
t-
ity A o e~ Date
Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution Approving in Substantial Form Amendment No. 1 to the State Housing Partnership (SHIP) Program
Agreement for Fiscal Year 2006/2007 between the City of Miami Beach Community Development Corporation, anot-for-
~rofit corporation (MBCDC)..
Key Intended Outcome Supported:
Increase access to affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 Customer Satisfaction Survey, affordable
housing was a concern for 82% of those surveyed.
tssue•
Shall the City amend the SHIP Agreement for FY2006/2007 to extend the time for an additional year through June 30, 2010,
and allow MBCDC to drawdown funds for eligible and reasonable costs, in accordance with SHIP Program Rules?
item summa ircecommenaation:
SHIP funds are allocated to cities on July 15 and are required to be allocated within two years, and expended within three
years. Funding for FY 2006/2007 (July 1, 2006 through June 30, 2007) was required to be allocated by June 30, 2008.
Staff requested an extension of time from the State to allocate said funds and the State granted the extension through
December 2008. The funds were to be expended by June 30, 2009.
The City issued a Notice of Funding Availability (NOFA) in September 2007 for the FY 2006/2007 entitlement. MBCDC was
the sole respondent to the NOFA. On December 20, 2007, the Loan Review Committee recommended that MBCDC be
allocated SHIP program funds for FY 2006/2007. On September 10, 2008, and pursuant to Resolution 2008-26887,
MBCDC was awarded a SHIP Agreement for FY 2006/2007 (Agreement), reserving the amount of $798,763.50 to be
utilized by June 30, 2009. The Agreement between the City and MBCDC was not fully executed until November 20, 2008.
The Agreement required that 75% of the entire $798,763.50 allocation must be spent on construction activities, including
owner-occupied housing rehabilitation, and rehabilitation of housing acquired through the first-time homebuyer program. Of
the entire allocation, 30% of the funds must be dedicated to very-low and low-income households.
In the last two years, and mainly due to economic circumstances, it has become increasingly more difficult for low- and
very-low income persons to qualify for home mortgages. Consequently, on September 19, 2008, the City Commission
authorized an Amendment to the City's Local Housing Assistance Plan (CHAP), which determines how the City's SHIP
entitlement funds will be administered. The CHAP was amended to increase the amount of SHIP down payment assistance
that could be provided to assist very low income first time homebuyers from $40,000 to $60,000. However, the change to
the CHAP did not become effective until the SHIP FY 2007/2008 program year; therefore, the FY 2006/2007 Agreement
continued to be limited to $40,000 down payment assistance to the required low-income population.
Furthermore, while State rules allow advances ordraw-downs of SHIP funds for owner-occupied rehabilitation/construction
of eligible housing units, the FY 2006/2007 SHIP Agreement specified that funds be paid to MBCDC on a reimbursement
basis only. The above conditions may be addressed by retroactively amending the SHIP Agreement for FY2006/2007 to
extend the time period for expenditure of funds for an additional year, through June 30, 2010, and allowing MBCDC to
drawdown funds for eligible costs as provided in the SHIP Program Rules. The Amendment will allow draw-down of funds
for eligible costs; such draw-downs to be secured with appropriate legally enforceable and recordable documentation.
rsoara rcecommenaation:
Financial Information:
Source of Funds: I ~ Amount ~ Account Approved
SHIP
OBPI Total
Financial Impact Summary
~~ werK~s vrnce ~e isiatrve i racKm
Anna Parekh
Si n-Offs:
De artment Director s stant Ci Mana er C' Mana er
AP
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DATE 7 ~S
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.aov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 15, 2009
sua~ECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING IN SUBSTANTIAL FORM, AMENDMENT N0.1
TO THE STATE HOUSING PARTNERSHIPS (SHIP) PROGRAM AGREEMENT FOR
FISCAL YEAR 2006/2007 BETWEEN THE CITY AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION, ANOT-FOR-PROFIT CORPORATION (MBCDC), IN
THE AMOUNT OF $798,763.50, FOR REHABILITATION, DOWN PAYMENT
ASSISTANCE, CLOSING COSTS ASSISTANCE AND HOME OWNERSHIP
COUNSELING FOR THE SCATTERED-SITE HOME OWNERSHIP PROGRAM AND
RENTAL DEVELOPMENT PROGRAM FOR INCOME-ELIGIBLE PARTICIPANTS; SAID
AMENDMENT PROVIDING FOR AN EXTENSION OF THE TERM TO JUNE 30, 2010;
ALLOWING DRAWDOWN OF FUNDS FOR ELIGIBLE COSTS (SUCH DRAWDOWNS
TO BE SECURED WITH APPROPRIATE LEGALLY ENFORCEABLE AND
RECORDABLE DOCUMENTATION); FURTHER AUTHORIZING THE CITY MANAGER
TO EXECUTE ANY DOCUMENTATION NECESSARY TO EFFECTUATE THE
AMENDMENT TO THE AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
BACKGROUND
The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing
Finance Corporation, was established by the 1992 William E. Sadowski Affordable Housing Act to
stimulate the production of affordable housing Statewide. SHIP Program funds are derived from
documentary stamps levied on real estate transactions. Annually, the Florida Housing Finance
Corporation allocates SHIP Program funds among participating jurisdictions, on a formula basis.
The City has participated in the SHIP Program since 1995.
SHIP funds are allocated to cities on July 1St and are required to be allocated within two years, and
expended within three years. Funding for FY 2006/2007 (July 1, 2006 through June 30, 2007) was
required to be allocated by June 30, 2008.
The City issued a Notice of Funding Availability (NOFA) in September 2007 for its FY 2006/2007
SHIP allocation plus program income and recaptured funds. MBCDC was the sole respondent. On
December 20, 2007, the Loan Review Committee recommended that MBCDC be allocated SHIP
program funds for FY 2006/2007. Due to the time constraints, staff requested an extension of time
from the State to allocate FY 2006/2007 funding. The State granted the extension, through
December 2008. The funds were to be expended by June 30, 2009.
Page 2 of 3
Amend SHIP FY2006/2007 Agreement
On July 16, 2008, staff presented an item to the City Commission requesting authorization to
allocate the FY 2006/2007 SHIP funding and enter into an agreement with MBCDC. The City
Commission requested that the matter be referred to the Finance & City-Wide Projects Committee.
On August 21, 2008, F&CW referred the matter back to the full City Commission.
On September 10, 2008, pursuant to Resolution 2008-26887, the City and MBCDC entered into a
SHIP Agreement for FY 2006/2007 (Agreement), reserving the amount of $798,763.50, to be utilized
by June 30, 2009.
In the meantime, the formats for all the City's Housing and Community Development contracts were
revised, and the resulting Agreement was not fully executed until November 20, 2008.
ANALYSIS
Of the entire $798,763.50 allocation, the Agreement requires that 75% must be spent on
construction activities, including owner-occupied housing rehabilitation, and rehabilitation of housing
acquired through the first-time homebuyer program. Additionally, of the entire allocation, 30% of the
funds must be dedicated to very-low and low-income households.
In the last two years, and mainly due to economic circumstances, it has become increasingly more
difficult for low- and very-low income persons to qualify for home mortgages. Consequently, on
September 19, 2008, the City Commission authorized an Amendment to the City's Local Housing
Assistance Plan (CHAP), which determines how the City's SHIP entitlement funds will be
administered. The CHAP was amended to increase the amount of SHIP down payment assistance
that could be provided to assist very low income first time homebuyers from $40,000 to $60,000.
However, the change to the CHAP did not become effective until the SHIP FY 2007/2008 program
year; therefore, the FY 2006/2007 Agreement continued to be limited to $40,000 downpayment
assistance to the required low-income population.
Furthermore, while State rules allow advances or draw-downs of SHIP funds for owner-occupied
rehabilitation/construction of eligible housing units, the FY 2006/2007 SHIP Agreement specified
that funds be paid to MBCDC on a reimbursement basis. MBCDC traditionally utilized bank lines of
credit from which to draw-down first time homebuyer down payment assistance allocations of up to
$40,000, and owner-occupied rehabilitation activities of approximately $20,000 per household.
MBCDC traditionally assists approximately 17 to 20 households annually with first-time homebuyer
down payment assistance closings, plus rehabilitation projects.
Current economic and banking conditions have restricted MBCDC's ability to draw down on its lines
of credit and have delayed completion of the contractually required activities. An amendment to
facilitate draw-downs of the FY2006/2007 funds will expedite compliance with the Agreement and
the intended service delivery to the target population.
As of July 9, 2009, of the total $798,783.50 allocated, $88,443 has been expended and reimbursed
to MBCDC. An additional amount of $158,951.07 for rental rehabilitation has been expended by
MBCDC and is pending review and reimbursement processing by City staff. MBCDC requires an
immediate draw down of $50,000 to purchase materials and obtain equipment. Three homebuyer
closings are pending. As such, it is recommended that up to $120,000 be provided as a draw down
in order to provide the down payment assistance at the pending closings. The remaining
$401,369.43 is projected to be expended by June 30, 2010. Any unexpended SHIP funds will be
recaptured by the State.
Page 3 of 3
Amend SHIP FY2006/2007 Agreement
CONCLUSION:
The Administration recommends that the Mayor and City Commission authorize in substantial form,
Amendment No. 1 to the FY 2006/2007 SHIP Agreement between the City and MBCDC, in the
amount of $798,763.50 for rehabilitation, down payment assistance, closing cost assistance, and
home ownership counseling for the scattered-site home ownership program and rental development
program for income-eligible participants. The Amendment will allow for an extension of time through
June 30, 2010; allow draw-down of funds for eligible costs, such draw-downs to be secured with
appropriate legally enforceable and recordable documentation; and further authorize the City
Manager to execute any documentation necessary to effectuate the amendment to the agreement.
JMG/H
T:\AGENDA12009Uu1y 15\Consent\SHIP Amend Agreement O6 07 memo.doc
AMENDMENT NO. 1 TO
SHIP AGREEMENT
FOR FISCAL YEAR 2006-2007
THIS AMENDMENT, entered into this _ day of , by and between the CITY
OF MIAMI BEACH, a Florida municipal corporation, having its principal office at 1700 Convention
Center Drive, Miami Beach, Florida, (hereinafter referred to as the City), and the MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, a not-for-profit Florida corporation, with its
principal office located at 945 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to
as MBCDC).
WITNESSETH:
WHEREAS, the City has determined the necessity for providing affordable housing in
Miami Beach through its Consolidated Plan, which was adopted by Resolution No. 2008-26847, on
July 16, 2008; and
WHEREAS, on September 10, 2008, the City Mayor and City Commission approved
Resolution No. 2008-26887, authorizing the Mayor and the City Clerk to execute a State Housing
Initiative Partnership (SHIP) Program agreement between the City and MBCDC; and
WHEREAS, on September 10, 2008, the City and MBCDC executed a SHIP Agreement, in
the amount of seven hundred ninety eight thousand seven hundred sixty three dollars and fifty
three cents ($798,763.53), for 2006/2007 SHIP (the 2006/2007 SHIP Agreement); and
WHEREAS, these funds were to be used exclusively for rehabilitation, down payment
assistance, closing costs assistance and homeownership counseling for MBCDC's Scattered-Site
Home Ownership Program and Rental Development; and
WHEREAS, the economic conditions and the lack of access to private and public finances
have created a delay in MBCDC'S rehabilitation of the Allen Building, where a significant portion of
the SHIP funds were allocated; the expenditure deadline of June 30, 2009 cannot be met; and
WHEREAS an amendment to the 2006/2007 SHIP Agreement is necessary to extend the
expenditure deadline from June 30, 2009, to June 30 2010, and to otherwise clarify or modify terms
permissible under the SHIP regulations.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereby amend this SHIP Agreement as follows:
1. ARTICLE IV -SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER
THE SHIP AND HOME PROGRAMS. Section (e) Records is amended as follows:
(e) Records: MBCDC agrees to maintain all records sufficient to meet the requirements of
the SHIP Program Rule, including, but not limited to: SHIP Program records, project
records, and SHIP Program administration records. MBCDC warrants and represents that
it maintains a financial management system that conforms to the financial accountability
standards of Attachment F -Office of Management & Budget (OMB) Circular A-110. All
records required herein shall be retained and made accessible for a period of at least t#~ee
{~} five 5 years after closing, as provided in the SHIP Program Rule, and Florida Statutes
Chapter 119
2. ARTICLE VI -METHOD OF PAYMENT. Section (a) is amended as follows:
(a) MBCDC ~ ~ may drawdown funds for
eligible costs (as set forth under the Scope of Services in Exhibit "A")
ex~eaded, with supporting documentation provided for expenses that are considered
reasonable and necessary and approved by MBCDC's authorized representative and will
be secured by an appropriate legal recorded safeguard.
3. ARTICLE IX -TERM OF AGREEMENT, paragraph 2 is amended as follows:
The expenditure deadline for Fiscal Year 2006/2007 funds, in the amount of $798,763.50.
is extended from June 30, 2009, to June 30 2010.
MBCDC shall have arranged for the rehabilitation or construction of a minimum of fifteen
(15) dwellings prior to '~',,.~~oAS December 31, 2009, pursuant to the terms of this
Agreement
4. ARTICLE XIV -REPORTS, Section (a) is amended as follows:
(a) Pro~,ress Reports. MBCDC agrees to submit
reports to the City on a quarterly basis, describing the status of each proposed project and
achievement of the project objectives (as provided in the Scope of Services in Exhibit "A",
attached hereto). The progress reports shall be submitted no later than ten (10) days after
the end of ~tk each quarter, and shall continue until such time as all Funds are
expended en-spe~e,}ests and the project is com Ip eted.
5. ARTICLE XV -AUDIT AND INSPECTIONS is amended to add the following last sentence.
At any time during normal business hours and as often as the City and/or the Florida
Housing Finance Corporation (FHFC) may deem necessary, in their respective sole
discretion, there shall be made available to the City Administration, and/or representatives
of the FHFC, to audit, examine and make audits of, all contracts, invoices, materials,
payrolls, records of personnel, conditions of employment and other data relating to all
matters covered by this Agreement. If during the course of its monitoring, the City
determines that any payments made to MBCDC do not constitute an allowable
expenditure, the City will have the right to deduct/reduce those amounts from their related
invoices. MBCDC must maintain records necessary to document compliance with the
provisions of this Agreement, for at least three (3) years after the close of the fiscal year in
which the Funds reserved hereunder are fully expended. MBCDC must maintain records
necessary to document compliance with the provisions of this Agreement for at least five
(5) years after the close of the fiscal year in which the Funds reserved hereunder are fully
expended.
6. ARTICLE XXVI -MAINTENANCE AND RETENTION OF RECORDS, section a and c are
amended as follows:
(a) Records shall be maintained for a period of fgfee-(~) five 5 years after the closeout of
funds under this Agreement except as provided herein in paragraphs (b) and (c) below.
(c) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must
be retained for tl~ree~five years AFTER the required period of affordability
7. All other terms and conditions of the agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto executed this First Amendment as of the day
and date first above written.
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
ATTEST a Florida not-for-profit corporation
Secretary Roberto Datorre
President, Authorized Signatory
ATTEST: CITY OF MIAMI BEACH
a Florida Municipal Corporation
City Clerk
Jorge Gonzalez, City Manager
T:WGENDA\2009Wu1y 15\Consent\SHIP AMENDMENT TO SHIP AGREEMENT 071509.docm
APPROVED AS TO
FORM & LANGUAGE
r~ FOR EXECUTION
City At y Date