CMB NSP2 Consortium Response to US HUD[CMB LOGO]
City of Miami Beach
Lead Applicant
For
City of Miami Beach NSP2 Consortium
Response to the U.S. Department of Housing and Urban
Development
Notice of Funds Availability (NOFA)
For Neighborhood Stabilization Program 2
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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City of Miami Beach NSP2 Consortium
Program Summary
Applicant:
The City of Miami Beach is serving as lead applicant on behalf of the City of Miami Beach
NSP2 Consortium ("Consortium"), comprised of the City of Miami Beach, Miami Beach
Community Development Corporation, Carrfour Corporation and the Miami-Dade Affordable
Housing Foundation, Inc. A copy of the Consortium's Agreement is attached as Appendix -
to this Application. The City of Miami Beach is a unit of local government and a public
nonprofit organization. The remaining members of the Consortium are private nonprofit entities.
Evidence of Consortium members' nonprofit and tax-exempt status is attached as Appendix _
to this Application.
The Consortium, comprised of a public nonprofit and three private nonprofits, is eligible to
submit this application to the U.S. Department of Housing and Urban Development requesting
funds provided under the American Recovery and Reinvestment Act of 2009 as part of the
program known as the Neighborhood Stabilization Program 2 (NSP2) in response to a Notice of
Funds Availability issued May 4, 2009.
Funds Requested:
The City of Miami Beach on behalf of the Consortium respectfully requests $17,300,000 to
implement a program of neighborhood stabilization in the target geographies identified within
this application.
Use of Funds:
The Consortium proposes to carry out activities identified as eligible in the NSP2 program. The
Consortium intends to carry out the following activities in accordance with federal NSP2
program rules:
• Provide soft second mortgage and closing cost assistance for the purchase of foreclosed-
upon homes, particularly condominiums, by low- and moderate-income homebuyers.
Homebuyers also will receive homebuyer counseling.
• Acquire and rehabilitate foreclosed-upon homes or residential properties for rent to low-
and moderate-income households.
• Redevelopment of vacant properties as rental housing.
• Related administrative costs to accomplish these activities.
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Income Targeting:
A minimum of 25% of NSP2 funds awarded will be used toward Activity B -the acquisition and
rehabilitation of abandoned or foreclosed-upon homes or residential properties for use as rental
housing and Activity E -the redevelopment of vacant properties for use as rental housing.
Accordingly, a proportionate number of units will be restricted to households at or below 50% of
area median income ("AMI").
The balance of NSP2 funds expended under this application will benefit only households with
incomes at or below 120% of AMI
Citizen Participation:
The City of Miami Beach published an advertisement in a newspaper of general circulation on
June 28, 2009. The notice informed interested parties that a copy of the draft plan for application
and use of NSP2 funds would be posted on the City of Miami Beach website for aten-day
comment period, commencing July 2, 2009 and ending on July 15, 2009. Opportunity for
submission of written comments would end at 12:00 p.m. on such date. A public hearing with
opportunity for comment would be held during the City of Miami Beach Commission meeting
on the same date at 12:15 p.m. A summary of comments received from citizens is included as
Appendix _ to this Application.
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NARRATIVE STATEMENTS ADDRESSING RATING FACTORS
1. FACTOR 1: NEED/EXTENT OF PROBLEM
(INSERT -KEVIN)
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2. RATING FACTOR 2: DEMONSTRATED CAPACITY OF THE APPLICANT AND
RELEVANT ORGANIZATIONAL STAFF
a.Past Experience of the applicant.
The City of Miami Beach is serving as lead applicant on behalf of the City of Miami Beach
NSP2 Consortium ("Consortium"), comprised of the City of Miami Beach, Miami Beach
Community Development Corporation, Carrfour Corporation and the Miami-Dade
Affordable Housing Foundation, Inc.
This NSP2 proposal is comprised of three strategies: (1) providing financial assistance to
low- and moderate-income households to purchase foreclosed-upon homes, including
homebuyer counseling; (2) acquisition and rehabilitation of abandoned or foreclosed-upon
homes or multi-family properties for rent; and (3) redevelopment of vacant properties for
use as rental housing.
City of Miami Beach -Relevant Experience
The City of Miami Beach has been a CDBG Entitlement Jurisdiction since 1975, and a
HOME Entitlement Jurisdiction since 1992. The City's Housing and Community
Development Division has managed the CDBG and HOME Programs since the City
became eligible as an entitlement community. The Division has been responsible for
preparing the City's Five-Year Consolidated Plans and annual Action Plans thereunder.
The City enters into approximately 35 annual sub-recipient agreements for CDBG and
HOME allocations. Additionally, the City has, within the last 24 months, administered
allocations received from HUD/American Dream Downpayment Initiative (ADDI),
HUD/Emergency Shelter Grant (ESG), HUD Section 108 Loan funds, and HUD/Economic
Development Initiatives (EDI).
The City of Miami Beach has participated in the SHIP Program since 1995. The Division
serves as the local State Housing Initiatives Partnership (SHIP) Administrator for the City's
allocation of SHIP funds. Typically, 17 to 20 households are assisted annually in Miami
Beach through the SHIP program. From 1995 through 2008, 171 Miami Beach residents
were served through the SHIP program: 21 in owner-occupied housing rehabilitation
programs and 150 in first-time homeowner assistance and first-time homeowner
rehabilitations. The City contracts with Miami Beach Community Development
Corporation ("MBCDC") to perform SHIP activities and monitors its performance to
ensure compliance with the rules and regulations established by the State of Florida.
Within the last 24 months, the following SHIP program years, respective funding
allocations, and activities have been administered by the City of Miami Beach, through
MBCDC, the City's program sponsor:
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SHIP Program Year Allocation Amount Activities
FY 2005/2006 $490,105 Owner-occupied housing
rehabilitation, first-time homeowner
assistance, and first-
time homeowner rehabilitation.
FY 2006/2007 $798,763 Owner-occupied housing
rehabilitation, first-time homeowner
assistance, and first-
time homeowner rehabilitation.
FY 2007/2008 $536,462 Two program years combined for:
FY 2008/2009 $473,171 Allowable SHIP activities
(described above), however, 65% of
the funds are being dedicated to
allowable activities as they relate to
the purchase of foreclosed and
abandoned properties.
Furthermore, the City of Miami Beach was awarded a total of $2,549,511 from HUD's
Neighborhood Stabilization Program (NSPl) through the State of Florida's Department
of Community Affairs (DCA). From the City's total allocation, $1,637,792 is the "regular"
NSP1 allocation and $907,719 is the "supplemental" allocation, which is to be dedicated
specifically to rental housing for low-income households which earn no more than 50% of
AMI.
The City concluded that rental housing is the most effective way to provide stable
affordable housing and will, therefore, use all or nearly all, of its NSP funding to purchase
and rehabilitate foreclosed or abandoned multi-family buildings for rental housing to
income qualified households. A Request for Proposals has been issued to seek a sponsor
for this allocation. Responses are due July 31, 2009.
Miami Beach Community Development Corporation ("MBCDC') -Relevant Experience
Miami Beach CDC works to enhance the quality of community life and achieve
neighborhood revitalization through a comprehensive housing and community
development program that pursues and balances historic preservation and urban design,
economic vitality and increasing job opportunity, and support for a diverse, eclectic and
successful neighborhood social fabric. Founded in 1981 by the Miami Design
Preservation League, MBCDC spearheaded the economic revitalization of the Art Deco
District, public and private investment on Ocean Drive and Lincoln Road and re-emergence
of South Beach as a world-class tourist destination. Miami Beach CDC is committed to the
preservation of residential neighborhoods and preservation and development of safe, decent
affordable housing for low- and moderate-income residents. MBCDC works in
collaboration with its Community Partner Organizations in a comprehensive community
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development program that embraces the values of revitalization, historic preservation,
community empowerment and ombudsmanship.
MBCDC emphasizes a balanced and comprehensive program of community development.
Holistic Neighborhood Revitalization addresses housing and physical development,
economic development and human investment simultaneously and comprehensively.
Physical Development focuses on providing affordable housing and developing
neighborhood facilities and public infrastructure. Economic Development focuses on
business and enterprise development, job creation and initiatives related to income and
employment. Human Investment efforts focus on a broad array of human services: support
services, education, crime prevention and youth programs.
Experience specific to this application is as follows:
• Financing Mechanisms
Miami Beach CDC provides Comprehensive Housing Counseling and Home
Buyer Assistance Programs to qualifying individuals and households.
The U.S. Department of Housing and Community Development has approved Miami
Beach CDC as a Housing Counseling Agency certified in Renters Assistance,
Homebuyer Education, Pre-Purchase Counseling, Money Debt Management, Home
Improvement and Rehabilitation Counseling, Post-Purchase Counseling, Mortgage
Delinquency and Default Resolution Counseling and Loss Mitigation.
Home Buyer Seminars are conducted at the organization's office and at other
locations in the area on a regular and frequent basis. This eight hour course is
designed to provide information on Preparing for Homeownership; Shopping for a
Home; Obtaining a Mortgage; Closing; and Life as a Home Owner. This provides a
complete overview for the first time homebuyer in preparing for home ownership.
In addition to the pre-ownership seminars, we provide Post-Purchase Workshop
sessions that provide additional information to home owners, including such topics as
Qualifying for Homestead Exemption, Repairs and Improvements, and Hurricane
Preparation. Focused attention is also provided on how to Prevent Mortgage
Foreclosure. Topics include: Surviving Financial Crisis; Negotiating Workout
Agreements; Refinancing; and the Foreclosure Process and Alternatives.
Individual Housing Counseling is provided to enable qualified individuals and
households to work with counselors in preparing for homeownership through Income
Evaluation, Credit Repair, Money Management, Savings Plans, Documentation
Gathering, and ultimately in finding, financing and closing on home purchase.
MBCDC provides technical assistance and access to programs of financial assistance
to assist with Loan Applications to Lenders, Grant Applications for Down Payment
and Closing Costs, Loan Process and Loan Closing. Counseling is also available to
existing homeowners in order to avoid foreclosure.
The organization maintains strong and important relationships with the local real
estate market community, public agencies that provide homebuyer funding support
and the commercial real estate lending community.
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From May 2007 to May 2009 MBCDC provided direct financial assistance in the
form of down payment, closing cost assistance and access to advantageous soft
second and other subordinate financing developed by MBCDC to 22 homebuyers.
Additionally, 47 participants in the housing training /housing counseling program
have been able to access market rate commercial lending and often other incentive
financing programs available in the community, enabling them to close on home
purchase during the relevant timeframe.
Accordingly, a total of 69 homes have been acquired utilizing the housing counseling/
homebuyer training and counseling programs of the agency during the 24months
preceding the issuance of the HUD NSP2 NOFA.
Acquisition, Rehabilitation, Rental and Redevelopment of Vacant Prouerty
MBCDC has an outstanding track record in the acquisition, rehabilitation and rental
of affordable housing in the community. It has acquired a total of 15 multi-family
properties, plus 13 scattered site condo units. Twelve of the properties, plus the
scattered site units are in rental operation and currently provide affordable housing to
285 households. All properties are owned and operated directly by subsidiaries of
MBCDC. These developments are characterized by the acquisition of vacant
properties, moderate or substantial gut rehabilitation, financing resources from a
series of agencies, full compliance with historic preservation requirements and other
development parameters and the provision of housing and related support services to
a tenant base of low- to moderate-income persons -including low-income
households, wage earning employment force, elderly and other special needs
population.
Acquisition, Rehabilitation, Rental of Westchester Apartments 24 units
On April 12, 2007 MBCDC celebrated the ribbon-cutting of the Westchester. While
clearly acquisition of the property and substantial construction preceded May 2007,
tenant marketing, selection, rent up and operating stabilization were all required in
order to complete the full development process. It took three months to rent-up the
building and another three months to achieve stabilization of operations.
The Westchester was acquired for $1,200,000, Rehabilitation Construction Costs
were $ 2,254,550, Other Project Development Costs were $ 717,738, with Project
Development Costs totaling $4,172.288. Units of Housing Provided 24 units, set at
HOME rents, with all tenants qualifying as low- to moderate-income persons.
Sources of Financing include: City of Miami Beach HOME, Miami-Dade County
HOME, Miami-Dade County Surtax, City of Miami HOPWA program and SunTrust
Bank financing.
Acquisition, Rehabilitation, Rental of London House 56 Units
Acquisition, Rehabilitation, Rental of Barclay 66 Units
Acquisition of The Allen Rehab and Rental -Pending 42 Units
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On April 23, 2007 Miami Beach CDC took title to these three properties located in
the Center City Historic District Community Redevelopment Area. Interestingly, the
deeds and Declarations of Restrictive Covenants were recorded two weeks later on
May 4, 2007, with two of the Covenants required re-recording effected on June 12,
2007.
Purchase price funding was provided by the City of Miami Beach Redevelopment
Agency, documented by Loan Agreements, Promissory Notes and subject to the
recorded Restrictive Covenants which provided fora 30 year affordability term.
The Allen Barcla London House ' Total
Purchase Prioe
Funds Provided by
CMB Redevelopment Agcy ~ $ 3,450,000
$ 3,469,347 $ 5,668,000
$ 5,692,400 $ 4,582,000
$ 4,603,852 $ 13,700,000
$ 13,765,599
Unit Count 42 units 66 units 56 units
Initial Occupancy
Initial Property Condition vacant property
uninhabitable substantially occupied
HQS --substandard
During the ensuing two years, MBCDC undertook to stabilize the building
conditions, bring the building into compliance with applicable Housing Quality
Standards and clear code violations. Such stabilization rehabilitation program has
been achieved for the Barclay and London House. Both of these buildings are
compliant with HQS standards, clear of code violations and fully occupied.
Accordingly, the Acquisition, stabilization, light rehab of the 122 units of the Barclay
and London House are complete. Architectural plans are being developed and
permits sought for a more rigorous substantial rehab program for London House and
further rehab development plans for the Barclay have not yet been undertaken.
While the Allen remains vacant, a rehab development program is underway to
complete the stabilization and prepare the building for occupancy. This grant
application would provide financial support to complete the rehabilitation of the
Allen, including its reconfiguration from 42 to 39 units and a complete updating of
structure and systems.
Other Development Pipeline Projects - in process:
Villa Maria (fka Hampton Court Apartments) 34 units
Villa Matti 34 units
Meridian Place 34 units
While not yet completed, advancement of other projects within the development
pipeline also demonstrates capacity of the organization to manage housing
development /neighborhood stabilization activities.
Vila Maria Apartments. In 2004 private developers proposed terminating the
Housing Assistance Contract and demolishing the property to be replaced by a new
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luxury condominium building; their structural engineer declared that the existing
building was unsafe. The building was sited by the Miami Beach Building Official
and referred by him to the Miami-Dade Unsafe Structures Board. The Board
considered an Order for Demolition of the property and required immediate action in
order to avoid demolition. The Miami Beach CDC joined together with the City of
Miami Beach in developing a program for the acquisition and ultimate rehabilitation
of the historic property. The property rehabilitation is currently underway
anticipating completion in December 2009
Villa Matti Apartments is a new construction project to be located on the adjacent
vacant lot and will be developed as a 36-unit apartment building for elderly tenants.
The development is made possible by funding allocations from the City of Miami
Beach, Miami-Dade County and a Section 202 Capital Advance by U.S. Department
of HUD. The building is infill new construction that has been reviewed and approved
by the City of Miami Beach Historic Preservation Board as being an appropriate new,
infill development in this Historic District. New Compatible Infill Construction.
Configuration - 6 story mid-rise; 36 units. Status -Pending Capital Closing with
HUD within 90 - 120 days.
Meridian Place Apartments is designated as a contributing property within the locally
designated Ocean Beach Historic District, designated as such by the City of Miami
Beach.
Status: Pre-Development. Architectural Plans -Complete. Permits -Pending
Configuration - 34 units - 23 studio / SRO; 11 1-BR
Providing housing for special needs population -homeless; formerly homeless
The building is currently not occupied and while it has been painted and fixed up,
there remains a considerable funding gap in order to move forward on building
rehabilitation. The property is the subject matter of this application and would be
made possible by the federal funds sought.
• Additional Specific Demonstration of Applicable Capacity
City and Regional Planning /Working Productively with Other Organizations
Miami Beach CDC along with all other members of the Consortium are active in city
and regional planning initiatives. MBcdc has taken on leadership roles within the
Florida Redevelopment Association, the Urban Environment League of Greater
Miami, the South Florida Community Development Coalition, and the Florida
Housing Coalition.
Miami Beach CDC together with the City of Miami Beach participated in the Public
Officials Design Institute at Abacoa, in June 2007, sponsored by Florida Atlantic
University, which focused upon Affordable and Workforce Housing. The three
properties acquired within the CRA target area -The Allen, Barclay and London
House -- were presented and analyzed and recommendation were made to guide
design and project implementation.
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The culture of the organization is to work collaboratively and in partnership with
other organizations at the neighborhood, city, and regional levels. MBcdc maintains
an important supportive relationship with the Flamingo Park Neighborhood
Association and collaborates with other Neighborhood and Homeowner Association
in the City. MBcdc has excellent working relationship with the City Miami Beach,
City of Miami, Miami-Dade County, Florida Housing Finance Corporation and other
local, regional and state organizations.
May 7-8, 2007, Miami Beach CDC conducted a Green Building Design Charrette.
Sponsors included Enterprise Community Partners, Green Communities, U.S. Green
Building Council. The specific emphasis was on using rehabilitation of Villa Maria
and new construction of Villa Matti as opportunity to learn precepts of green design.
The results of the effort was to achieve green design status for both of those two
properties and for the organization to commit itself to green design on all future
affordable housing developments.
In November 2008 Miami Beach CDC was cited by the South Florida Regional
Business Alliance and the FIU Metropolitan Center as among South Florida
Workforce Housing Best Practices. The organization presented its work program as a
part of the regional conference workshop and was designated as "a South Florida best
practice case study for rental housing preservation." The recognition specifically
identified rehabilitation of The Allen, Barclay and London House as well as
rehabilitation of Villa Maria and new construction of Villa Matti.
Program Marketing and Management of waiting lists for potential residents: The
organization has substantial expertise developed in the course of preparing for
operation of projects being developed, in the conduct of on-going property
management of its properties, and in the housing programs conducted by the
organization, including Housing Counseling, Assistance to First Time Homebuyers,
Repair Assistance to Existing Home Owners, and housing specialist support on behalf
of the local HOPWA tenant-based rental housing program administered by the City of
Miami.
Accessing operating and investment capital.• Over the course of the last twelve year,
the organization has implanted an affordable housing development program that has
resulted in the acquisition of fifteen properties, completed gut rehab on 186 units,
provides affordable housing to 285 families, maintains a combined staff of 30 to 40
personnel, and has achieved a total development record of almost $100 Million.
Miami Dade Affordable Housing Foundation, Inc. ("MDAHF') -Relevant Experience
MDAHF, incorporated in 1999, has extensive experience in offering financial assistance to
homebuyers as well as homebuyer counseling. The Foundation is a US HUD approved
housing counseling agency, a certified Community Development Financial Institution
(CDFI), a Community Development Entity (CDE) and is approved as homeownership
counseling agency by the Mortgage Guaranty Insurance Corporation (MGIC).
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Accordingly, the organization brings to bear the credibility of such certifications and the
training, experience and protocols offered by such certifying organizations.
From May 2007 to May 2009, MDAHF provided 55 homebuyers with assistance in the
form of housing workshop training, one-on-one housing counseling, technical assistance
for first time home buyers, and direct access to public subsidy and incentive programs that
assist individuals and households in moving toward home ownership. Several hundred
participants have received training and counseling and help in moving toward home
ownership. Tasks include initial determinations of eligibility for assistance, working with
first mortgage lenders to qualify the homebuyer and loan closing. [DENTS: THINK WE
NEED TO CLARIFY THE ABOVE. WERE THE 55 HOMEBUYF,RS PROVIDED
WITH DIRECT HOMEBUYER FINANCIAL ASSISTANCE THROUGH SOFT
SECONDS/DOWN PAYMENT??)
The Foundation has provided leadership in Green Building by collaborating with Palmetto
Homes, Inc. and the City of Miami in support of the first affordable green single family
home in the State of Florida. The Foundation served as co-convener for "Miami-Dade
Does Green Affordably," a national training symposium and exposition. The Foundation
maintains important relationships with community partners, including Habitat for
Humanity, Miami-Dade Housing Agency, Knight Foundation, Freddie Mac, South Florida
Workforce, Villas of St Agnes, and local government jurisdictions.
The Foundation is one of the most productive and experienced housing counseling agencies
in the region. It maintains important relationships with agencies providing first time
homebuyers with financial assistance, such as Miami-Dade County, Miami-Dade Housing
Finance Agency, Metro-Miami Action Plan, and the Florida Housing Finance Corporation.
The Foundation is also adept in assisting homebuyers to respond to the needs of financial
institutions providing first mortgage commercial financing to home buyers. Over the
twenty four month time frame the organization has worked with the following institutions:
Bank of America, Bank Atlantic, Sun Trust, CitiMortgage, Northern Trust, HSBC,
Gibraltar Bank, Home Financing, Chase Bank, Midwest Bank, Dade County Credit Union,
and Ocean Bank.
Carrfour Corporation ("Carrfour') -Relevant Experience
Carrfour, incorporated in 1993, has substantial experience in developing and operating
affordable rental housing, including special need housing. Carrfour has both performed
new construction as well as gut and moderate rehabilitation. Carrfour has secured federal,
state and local funds to support its affordable housing activities.
Within the period May 2007 to May 2009, Carrfour has acquired two properties and
rehabilitated 100 housing units for use as rental housing in support of local efforts to
expand affordable housing and stabilize neighborhoods. Specific activities are as follows:
• Ospre~partments
Through competitive process, the City of Miami has awarded Carrfour title to a City-
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owned parcel of land specifically for affordable housing development. The request
for proposals was issued by the City as part of its effort to liquidate underutilized
land, create affordable housing and stabilize the Liberty City area, which has
suffered greatly from foreclosures, blighted structures, and lack of development. In
the course of its feasibility study, Carrfour determined that additional land would be
needed to make the housing project financially feasible. Subsequently, Carrfour
secured site control of two (2) adjacent parcels of land through purchase agreement.
Osprey Apartments will be a new construction, 90-unit development, serving low-
income and formerly homeless residents. Carrfour has already obtained $1 million in
local government funding and will submit an application for tax credits upon title
transfer of the City-owned parcel.
• Royalton
Placed into service in October 2008, the Royalton is a 100-unit historic restoration in
the Downtown area of the City of Miami. This restoration has resulted in the
preservation of 80 units of permanent supportive rental housing for formerly
homeless individuals impacted by disabilities and 20 affordable rental housing units.
Carrfour developed this project in partnership with the Carlisle Group. Together,
Carrfour and Carlisle acquired the land, assembled the financing and managed the
construction of this historic development. The following financing was used to
complete this development.
Capital Sources
FHFC LIHTC $9,182,171
FHFC SAIL 3,000,000
Miami-Dade County Surtax 2,250,000
City of Miami HOME 1,450,000
Florida Homeless Housing Assistance Grant 750,000
Miami Dade County HOME 880 000
Deferred Developer Fee 1,080993
Total $18, 593,164
• Affirmative Marking Experience
Carrfour utilizes an affirmative fair housing marketing plan in keeping with the U.S.
Department of Housing and Urban Development's guidelines to ensure that its
housing is offered to potential residents in a nondiscriminatory manner. This
includes advertisement in local newspapers as well as with public housing agencies.
• Pronerty Management Experience
Carrfour is different from other not-for-profit organizations addressing the homeless
issue in that it is a housing developer, a service provider, and property manger.
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• Cooperative Relationships with Other Organizations
Throughout its existence Carrfour has worked with various other organizations in the
development of housing and provision of social services. Because it is also a
nonprofit, Carrfour's mission to serve the Miami-Dade community often easily falls
in step with the mission of its partners. It is currently partnering with Tacolcy
Economic Development Corporation in the development of Parkview Gardens.
Parkview Gardens will be a 60 unit affordable housing development in the Liberty
City area of Miami. It is also finalizing a partnership to develop a South Dade
property owned by the Church of God. Finally, Carrfour has or is currently
partnering with the following social services organizations: Community Partnership
for the Homeless, Volunteers of America, James E. Scott Community Association,
Inc., Bayview Center, and Tools for Change.
b. (1) Management structure
City of Miami Beach Management Structure and Key Staff
The City's Housing and Community Development Division will manage NSP2. The
Division's key management staff for NSP2 are as follows:
[INSERT)
A copy of the Division's organizational chart can be found in Appendix _ to this
application.
MBCDC Management Structure and Key Staff
MBCDC's key management staff for NSP2 activities are as follows:
Roberto Datorre, President /CEO, will be responsible for representation of the
organization within the Consortium. Mr. Datorre will provide executive leadership and
overall management of the organization. Mr. Datorre will provide special expertise for
NSP2 in real estate transactions and development projects.
Karl D. Kennedy, Vice President Housing Programs, will provide senior leadership to the
organization in development, implementation and monitoring of all housing programs.
Mr. Kennedy will provide special services related to development project financial
scenarios and manage relationships with funding partners.
Donald M. Tomlin, CFO /COO, serves as Chief Operation Officer and Chief Financial
Officer. He will maintain the capacity of the organization to meet excellent standards of
financial management, provide appropriate financial reports to fenders, board of
directors, management, and project personnel.
Manuel Forero, Project Director, will provide project coordination and construction
management services. He will undertake and/or supervise management of all
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architectural and construction contracts. He will ensure compliance with all Housing
Quality Standards.
Denis A. Russ, Community Development Director, will serve as special resource to the
NSP2 Project Team in planning and implementation. He will provide outreach into the
community to align organization efforts with community priorities. He will provide
special linkage of housing development and physical improvement programs with
economic and social environment.
A copy of MBCDC's organizational chart can be found in Appendix _ to this
application.
MDAHF Management Structure and Key Staff
MDAHF's key management staff for NSP2 activities are as follows:
Opal Jones, as Executive Director of the Foundation, will be responsible for formal
representation of the Foundation within the Consortium and will provide overall
supervision and executive leadership for MDAHF's NSP2 financial mechanism activities.
Ms. Jones brings over 20 years of executive experience in the public sector working on
housing issues, managing communications, planning, developing operations as well as
constituent relations for elected officials at the county, state and federal levels.
Milli Membiela, Lending Director /Loan Officer will provide focused attention to the
project on a day to day basis and will supervise other Loan Officers in their work. Ms.
Membiela has over 30 years experience in the real estate /mortgage industry, including
acquisition, rehabilitation, home ownership counseling, underwriting, accessing various
funding components and the ability to develop policies and procedures.
Shrita Laster and Sharon German will act as Loan Officer and Home Buyer Club
Coordinator, respectively, in providing services under the Consortium Program and
Agreement. Ms. Laster is a graduate of the Fannie Mae Mortgage Finance Program at
Miami-Dade College and is a certified trainer in Homebuyer Education and Counseling
Services by the Neighborhood Reinvestment Training Institute. Ms. German coordinates
the First Time Homebuyer Education Workshops and the 8-hour certification classes for
County employees, public housing residents and the General Public. She is a certified
trainer by Neighborhood Reinvestment and the National Federation of Housing
Counselors and Agencies.
A copy of MDAHF's organizational chart can be found in Appendix _ to this
application.
Carrfour Management Structure and Key Staff
Carrfour's key management staff for NSP2 activities are as follows:
Stephanie Berman, Carrfour's President, will represent Carrfour within the Consortium
and will provide overall management for Carrfour's NSP2 activities. Ms. Berman has a
Master's Degree from Harvard University in administration, planning and social policy.
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Ms. Berman previously served as the Director of Emergency Shelter Services for the
Children's Home Society.
Additional key staff will include Doug Mayer, Carrfour's Vice President of Housing, and
John Harris, who provides daily management of Carrfour's housing development
projects.
Mr. Mayer has over 11 years of real estate development experience. He has previously
served as Vice President of Development at Jubilee Community Development
Corporation. He has successfully developed affordable condos for sale, apartments for
the elderly under HUD's Section 202 program and housing for the homeless with
Carrfour.
Mr. Harrison has over 30 years diverse experience in all phases of project construction,
design development and project delivery. John also has a solid background in start ups,
business development, operations, strategic planning and sales.
A copy of Carrfour's organizational chart can be found in Appendix _ to this
application.
(2) References.
City of Miami Beach: Maria Ortiz, Director, Community Planning & Development
Division
U.S. Department of Housing and Urban Development
Phone: (305) 520-501 S
Email: Maria.R.Ortiz(c~hud. ov
Aida Andujar
Technical Advisor -SHIP
Florida Housing Coalition
Office - 954-252-4898
Fax - 954-252-4930
Cell phone - 954-593-8988
E-mail - andujarna,flhousing.org
MBCDC Ignacio Esteban
Executive Director
Florida Community
Loan Fund
3107 Edgewater Dr., Suite 2
Orlando, Florida 32804
T-407-246-0846
iesteban~a fclf.org
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
Page 16 of 39
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Shalley Jones Horn, Director OCED
Miami-Dade County
701 NW First Court,
14`" Floor
Miami, Florida 33136
T-786-469-2100
s j horn(a~miamidade. gov
Professor Ned Murray
Florida International Univ. Metropolitan Center
150 SE 2nd Avenue,
Suite 500
Miami, Florida 33131
T-305-3491441
murrain ,fiu.edu
MDAHF: Patricia Braynon, Director
Miami-Dade Housing Finance Authority
7300 NW 19 Street, Suite 501
Miami, Florida 33130
305.594.2518 -Office
305.392.2722 -Fax
~j(a,miamidade.gov
Representative Kendrick B. Meek
United States Congress
1039 Longworth House Office Building
Washington, DC 20515
Phone: 202-225-4506
Fax: 202-226-0777
Carrfour: George Mensah
Director
City of Miami Department of Community Development
444 SW 2"d Avenue, 2"d Floor
Miami, Florida 33130
(305) 416-1765
~mensah(a,miami gov. com
Steve Smith
Enterprise Community Investment, Inc.
10227 Wincopin Circle, Suite 800
Columbia, MD 21044
(410) 772-2723
ssmithna,enterprisecommunity com
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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3. RATING FACTOR 3: SOUNDNESS OF APPROACH
a. Proposed Activities
(1) Overall Neighborhood Stabilization Program Description
The Consortium proposes three strategies to address stabilization of the target
geographies' housing market and achieve long-term economic benefits. These NSP2-
eligible strategies are:
Provide soft second mortgage and closing cost assistance for the purchase of
foreclosed-upon homes, particularly condominiums, by low- and moderate-income
homebuyers. Homebuyers also will receive homebuyer counseling.
• Acquire and rehabilitate foreclosed-upon homes or residential properties for rent to
income eligible households.
~ Redevelop vacant properties for use as rental housing.
All three NSP2 strategies expand upon ongoing efforts to address the detrimental impact
of the foreclosure crisis in the City of Miami Beach. The City of Miami has committed
$656,261.45 toward down payment and closing cost assistance for homebuyer purchases
of foreclosed-upon homes through an award of SHIP funds to MBCDC. The City
received $2,549,511 million in NSP1 funds through competitive process from the State of
Florida. These NSP1 funds are being directed toward acquisition and rehabilitation of
foreclosed-upon or abandoned multi-family property for use as rental housing for low-
income households with incomes at or below 50% of AMI.
As discussed above under Factor 1 - Need/Extent of Problem, the proposed use of NSP2
funds will allow more rapid stabilization of the housing market. Requested NSP2 funds
will provide for the placement back into service of approximately 100 units of
foreclosed-upon housing in the City of Miami Beach. With this funding, the number of
months of inventory of abandoned and foreclosed homes (condominiums) will be eleven
(11) months in June 2012. Without NSP2 funding, the inventory is not projected to be
eleven months until July 2013. As of July 2012, NSP2 funds will allow a 7.88%
absorption rate compared to only a 5.54% absorption rate without NSP2 funding.
The Consortium will assist sixty-five (65) low- and moderate-income households
purchase foreclosed-upon homes, including condominium units, in the City of Miami
Beach by providing them with soft-second mortgage and closing cost assistance, along
with homebuyer counseling.
The Consortium also will acquire and rehabilitate at least thirty-five (35) abandoned or
foreclosed-upon units of housing for use as rental housing. Some of this stock is
expected to be acquired through purchase of multi-family property with the balance
acquired through purchases of individual condominium units on scattered-site basis. By
City of Miami NSP2 Consortium Neighbort-ood Stabilization Program 2 (NSP2) Application
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setting aside at least thirty-five of these units for affordable rental housing, the NSP2
effort will go beyond existing initiatives to preserve affordable rental housing in the City
of Miami Beach, by, in some cases, allowing reclamation of rental housing stock that was
converted into condominium housing during the most recent housing boom.
Not only will these proposed NSP2 strategies serve to speed up absorption of foreclosed-
upon property, the strategies also will stem deterioration of housing stock and
neighboring property values while promoting long-term economic benefit. Since the
primary form of housing stock in Miami Beach is the condominium, foreclosure in this
type of homeownership structure is adversely impacting the wholesale condition of
multiple housing units within single buildings. It is also causing a downward pull on
property values of surrounding properties. Condominium associations are experiencing
severe difficulty in maintaining their properties due to the loss of maintenance fees and
assessments, a direct consequence of the foreclosure crisis. Stabilizing condominium
buildings through the purchase of one-hundred (100) foreclosed-upon units, the NSP2
strategy will promote properly-funded condominium associations, which will expend
funds on maintenance and other amenities. This will protect the housing stock and
neighboring property values. It will also support local businesses that service these
properties, thus providing long-term economic benefit.
NSP2 funds also will be directed toward redevelopment of two vacant structures for use
as affordable rental housing. This activity will address the City's affordable rental
housing retention efforts for its labor force as well as its goal to increase permanent
supportive housing for homeless persons. NSP2 funds will allow completion of two
MBCDC rehabilitation projects that are experiencing gaps in financing.
Allen House Apartments, a former old hotel, will provide 39 units of rental housing,
affordable to workers in the hotel, restaurant, retail and cultural arts industries as well as
the elderly. This NSP2 activity promotes the City's efforts to retain the workforce needed
for its local economy through redevelopment of properties into affordable rental housing.
The City's economy is primarily tourist-based. Due to service industry wages, there is an
unmet need in the City of Miami Beach for housing with very affordable rents. Long-
term economic benefit will result by increasing the number of rental housing units
affordable to service industry workers. 'The City of Miami Beach has awarded the Allen
project $3,469,347 in redevelopment funds, $660,750 in HOME funds, $273,106 in SHIP
funds and $159,684 in CDBG funds. The State of Florida also awarded the project
$750,000 Elderly Housing Community Loan. However, a $500,000 financing gap
remains.
Meridian Place Apartments is part of an effort to generate permanent supportive housing
for homeless persons within the City of Miami Beach and Miami-Dade County. Meridian
Place will provide 34 units of affordable permanent housing to formerly homeless
elderly. It has been awarded $ 2,599,992 in City of Miami Beach Home funds,
$1,500,000 in City of Miami redevelopment funds, $1,379,395 in Miami-Dade County
Surtax funds, a $1,000,000 Florida Housing Finance Corporation Demonstration Loan
and $230,124 in CDBG facade funds. Meridian Place has a $1,000,000 financing gap.
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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(2)(a) Uses of funds and firm commitments
Activi A -Home Purchase Financin Mechanisms
NSP2 Eligible Use Establish financing mechanisms for purchase of foreclosed
upon homes in the form of soft-second mortgage loans and
closing costs for low- and moderate-income homebuyers.
Public services for housing counseling limited to prospective
recipients of financial assistance towards purchase of
foreclosed-upon homes.
Budgeted Amount NSP2 Funds: $6,600,000
CDBG Eligible Direct Homeownership Assistance - 24 CFR 570.201(n)
Activity Type
Public Services for Housing Counseling - 24 CFR 570.201(e)
Responsible Planning and Administration
Entities
City of Miami Beach
Anna Parekh, Director
Office of Real Estate, Housing and Community Development
1700 Convention Center Drive
Miami Beach, FL 33139
(305) 673-7000, ext. 6471
Program Implementation and Delivery
Miami Beach Community Development Corporation
Roberto Datorre, President
945 Pennsylvania Avenue
2nd Floor
Miami Beach, Florida 33139
(305) 538-0090
Miami-Dade Affordable Housing Foundation, Inc.
Opal A. Jones, Executive Director
19 W Flagler St # 311
Miami, FL 33130-4405
(305) 373-9750
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Activi B -Purchase and Rehabilitation
NSP2 Eligible Use Purchase and rehabilitation of homes and residential properties
that have been abandoned or foreclosed-upon in order to sell or
rent such homes or properties.
Budgeted Amount NSP2 Funds: $6,900,000
CDBG Eligible Acquisition - 24 CFR 570.201(a)
Activity Type
Rehabilitation and preservation - 24 CFR 570.202
Responsible Planning and Administration
Entities
City of Miami Beach
Anna Parekh, Director
Office of Real Estate, Housing and Community Development
1700 Convention Center Drive
Miami Beach, FL 33139
(305) 673-7000, ext. 6471
Pro rg_am Implementation and Delivery
Miami Beach Community Development Corporation
Roberto Datorre, President
945 Pennsylvania Avenue
2nd Floor
Miami Beach, Florida 33139
(305) 538-0090
Carrfour Supportive Housing
Stephanie Berman, President
2828 Coral Way
Suite 500
Miami, FL 33145
(305) 371-8300
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Activi E - Redevelo ment of Vacant Pro erties as Housin .
NSP2 Eligible Use Redevelopment of vacant properties as housing.
Budgeted Amount NSP2 Funds: $2,000,000
CDBG Eligible Eligible rehabilitation and preservation activities for
Activity Type demolished or vacant properties - 24 CFR 570.202
Responsible Planning and Administration
Entities
City of Miami Beach
Anna Parekh, Director
Office of Real Estate, Housing and Community Development
1700 Convention Center Drive
Miami Beach, FL 33139
(305) 673-7000, ext. 6471
Program Implementation and Delivery
Miami Beach Community Development Corporation
Roberto Datorre, President
945 Pennsylvania Avenue
2nd Floor
Miami Beach, Florida 33139
(305) 538-0090
Carrfour Supportive Housing
Stephanie Berman, President
2828 Coral Way
Suite 500
Miami, FL 33145
(305) 371-8300
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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Budget Summary
NSP- Activity NP2 Funds Leverage Projected
Eligible Units
Strate
Activity A Soft-second
mortgage and
closing cost SHIP:
assistance; $6,600,000 $656
261.45 65
homebuyer ,
counseling
Activity B Rehabilitate
abandoned or
foreclosed-upon
homes or $6,900,000 0 35
residential
properties for
rent.
Activity E Redevelopment Miami Beach RDA:
of vacant $4,969,347
property for
housing. Miami-Dade County
Surtax:
$1,379,395
FHFC
Demonstration
Loan:
$1,000,000
$2,000,000 73
Bank Financing:
$834,731
State of Florida
Elderly CommunitX
Housin Loan:
$750,000
SHIP:
$273,106
Program $1
800
000 0 -
administration ,
,
Total Funds: $17,300,000 $9,862,840 -
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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(2)(b) Narrative Description of Activities
NSP2 Activity A -Financing Mechanisms
Working with private first lenders, Consortium members MBCDC and MDAHF will
provide access to homebuyer financing and counseling using NSP2 funding leveraged
with City of Miami Beach SHIP Program funds. Soft-second mortgage loans and closing
cost assistance will be made available to at least sixty-five (65) eligible homebuyers to
purchase foreclosed-upon homes (including condominium units) city-wide with special
emphasis in the northern part of Miami Beach. Buyers will be required to complete a
minimum of eight hours of homebuyer counseling to receive such financial assistance.
Soft-second loans will be in the form of a maximum 15-year fixed-interest mortgage with
0% interest and no monthly payments. The mortgage will be forgiven if the homebuyer
occupies the home as their principal residence for the full term of the mortgage. In the
event that the homebuyer sells or refinances the home, the homebuyer will be required to
share any profits with the City of Miami Beach in accordance with the City's SHIP
Program provisions.
NSP2 Activity B -Purchase and Rehabilitation of Abandoned or Foreclosed-Upon
Properties for Use as Rental Housing
Consortium members MBCDC and Carrfour will acquire and rehabilitate at least thirty-
five (35) abandoned or foreclosed-upon units of housing. Some of this stock is expected
to be acquired through purchase of multi-family property with the balance acquired
through purchases of individual condominium units on scattered-site basis.
A minimum of 25% of NSP2 funds awarded to the Consortium will be used to acquire
and rehabilitate residential properties for rent to households at or below 50% of AMI.
Accordingly, a proportionate number of units will be restricted to households at or below
50% of area median income ("AMI").
The Consortium will seek properties throughout the City of Miami Beach with a special
emphasis on locating properties in the northern part of the City of Miami Beach.
Moderate rehabilitation will require Energy Star-labeled appliances and lighting as well
as other green features to the extent financially feasible. Gut rehabilitation under this
activity is not anticipated, however, if such activity is undertaken, such renovation will be
required to exceed Energy Star Qualified New Homes standards.
NSP2 Activity E - Redevelopment of Vacant Properties as Rental Housing
With the technical assistance of Carrfour, NSP2 funds will be directed toward MBCDC's
rehabilitation of two vacant properties for use as rental housing that are experiencing
gaps in financing. NSP2 funds will allow completion of their redevelopment.
City of Miami NSP2 Consortium Neighbort~ood Stabilization Program 2 (NSP2) Application
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Allen House Apartments will provide 39 units of rental housing, affordable to workers in
the hotel, restaurant, retail and cultural arts industries as well as the elderly. A portion of
these units will be set-aside for households at 50% or less of AMI. Tenancy will be
subject to annual leases.
The City of Miami Beach has awarded the Allen project $3,469,347 in redevelopment
funds, $660,750 in HOME funds, $273,106 in SHIP funds and $159,684 in CDBG funds.
The State of Florida also awarded the project $750,000 Elderly Housing Community
Loan. However, a $500,000 financing gap remains. The project commenced construction
in Mazch 2009 and is at 35% complete.
Meridian Place Apartments is part of an effort to increase permanent supportive housing
for homeless persons within the City of Miami Beach and Miami-Dade County. Meridian
Place will provide 34 units of affordable housing to formerly homeless elderly. These
units will serve households at or below 50% of AMI. Tenancy will be subject to annual
leases.
The project has been awazded $ 2,599,992 in City of Miami Beach Home funds,
$1,500,000 in City of Miami redevelopment funds, $1,379,395 in Miami-Dade County
Surtax funds, a $1,000,000 Florida Housing Finance Corporation Demonstration Loan
and $230,124 in CDBG facade funds. Meridian Place has a $1,000,000 financing gap.
The facade work and interior gut demolition has been completed. The rehabilitation
work is scheduled to go out to bid this July 2009 with notice to proceed projected for
September 2009.
Gut rehabilitation will be required to exceed Energy Star Qualified New Homes
standazds.
(2)(c) Leveraging
A total of $9,862,840 in firm commitments is provided as leverage under this application.
The City of Miami Beach has committed $656,261.45 toward down payment and closing
cost assistance for homebuyer purchases of foreclosed-upon homes through an award of
SHIP funds to MBCDC.
Additional leverage is provided in the form of non-federal committed funds awarded to
the redevelopment of two vacant structures for use as rental housing, Allen House
Apartments and Meridian Place as follows:
City of Miami Beach RDA: $4,969,347
Miami-Dade County Surtax: $1,379,395
FHFC Demonstration Loan: $1,000,000
Bank Financing Commitments: $ 834,731
State of Florida Elderly Community Housing Loan: $ 750,000
SHIP: $ 273,106
City of Miami NSP2 Consortium Neighbort-ood Stabilization Program 2 (NSP2) Application
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Evidence of firm commitments can be found as Appendix _ to this Application.
(2)(d) Demolition and Preservation.
The Consortium will not be conducting any demolition activities with NSP2 funds or in
connection or coordination with NSP2 activities.
b. Project Completion Schedule [KARL KENNEDY -schedule must track milestones
by months, but take into account that 50`% of the funds must be spent within first 24
months with balance by the third year; also 2.5%~ of total funds must benefit households
at 50%AMI of less]
NSP Activity Responsible Month Tasks Expected
Entities Outcome
Activity A - MBCDC 65 foreclosed-
Financing upon homes
Mechanisms MDAHF purchased with
NSP2 assistance.
All homebuyers
will receive
minimum of 8
hours of home-
buyer counseling.
Activity B: MBCDC 35 rental units
Acquisition
and Carrfour
Rehabilitation
Activity E: MBCDC 73 rental units
Redevelopment
of Vacant Carrfour
Pro er
c. Income targeting for 120 percent and 50 percent of median
A minimum of 25% of NSP2 funds awarded will be used toward (1) the acquisition and
rehabilitation of abandoned or foreclosed-upon homes or residential properties for use as rental
housing and (2) redevelopment of vacant properties for use as rental housing. Accordingly, a
proportionate number of units will be restricted to households at or below 50% of area median
income ("AMI").
The balance of NSP2 funds expended under this application will benefit only households with
incomes at or below 120% of AMI.
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
Page 26 of 39
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d. Continued affordability
Homebuyer Financial Assistance: The NSP2 financing mechanism to assist income-eligible
households purchase foreclosed-upon homes is designed to encourage the purchaser to remain in
the home for at least fifteen years. NSP2-funded soft-second loans will be in the form of a 15-
year fixed-interest mortgage with 0% interest and no monthly payments. The mortgage will be
forgiven if the homebuyer occupies the home as their principal residence for the full term of the
mortgage. In the event that the homebuyer sells or refinances the home, the homebuyer will be
required to share any profits with the City of Miami Beach in accordance with City's SHIP
Program provisions.
Rental Housing: Properties acquired with NSP2 funds and used for rental housing will be
subject to recorded restrictive covenants and rent regulatory agreements to be enforced by the
City of Miami Beach that will include the restrictions below to ensure continued affordability.
1. Income-eligibility requirements for tenancy (i.e. some units will be restricted to
households at 50% or less of AMI and no unit may be occupied by households with
incomes greater than 120% of AMI);
2. Rents must remain affordable as defined in Appendix _ to this Application; and
3. The term of the affordability shall not be less than thirty years.
e. Consultation, outreach, communications
Consultation: The City of Miami Beach has jurisdiction over the target geographies and, as the
lead applicant for the Consortium, has been directly involved in developing the NSP2 proposal.
The City of Miami Beach will be the grantee under contract with HUD if the Consortium is
awarded NSP2 funds under this application. The City of Miami Beach also received NSP 1 funds
from the State of Florida through competitive process. The City of Miami Beach maintains
regular communication with Miami-Dade County, the county in which the City of Miami Beach
is located. Miami-Dade County received a direct allocation of NSP1 funds.
Outreach: MDAHF and MBCDC currently provide homebuyer counseling to residents of the
City of Miami Beach as well as persons residing throughout Miami-Dade County. A NSP2
marketing campaign will be directed toward persons seeking such counseling to identify
qualified income-eligible households who may be seeking homebuyer financial assistance. The
financial assistance program also will be marketed to local banks, including those REOs with
properties in Miami Beach and the brokers who are assisting in marketing such properties. NSP2
programming also will be widely promoted through CITY OF MIAMI. BEACH CHANNELS
OF PROMOTION -ANNA].
MBCDC and MDAHF will continually work with first mortgage lenders to refine underwriting
and closing processes to remove any delays in the purchase of foreclosed-upon homes and
expenditure of NSP2 funds.
MBCDC and Carrfour currently own and operate affordable rental housing within the City of
Miami Beach. As these Consortium members' housing developments have received federal
funds, the members have substantial experience in implementing affirmative marketing plans. In
City of Miami NSP2 Consortium Neighbort-ood Stabilization Program 2 (NSP2) Application
Page 27 of 39
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addition, these agencies currently have waitlists comprised of households at or below 50% of
AMI.
Communication of Program Policies and Accomplishments: Program policies for homebuyer
financial assistance, such as eligibility criteria, homebuyer counseling requirements, terms of
assistance, property due diligence, loan underwriting and closing processes, will be in writing
and made available to any interested party upon request.
Rental housing program policies governing affirmative marketing, application and waitlist
processing, lease-up and eviction will be in writing. Rental leases and house rules will be in
writing. Interested parties may receive a copy of such policies upon request.
The City of Miami Beach staff on behalf of the Consortium will provide reports on performance
and expenditures to the City of Miami Beach Commission.
Complaints: The City of Miami Beach responds to citizen complaints promptly, well within
fifteen working days. Generally, complaints are addressed via telephone call the same day. If
necessary, follow-up correspondence is utilized to provide or solicit additional information. As a
NSP2 program policy, if a Consortium member receives a written complaint concerning its
NSP2 activities, it will be required to promptly investigate the complaint and respond to the
complaint in writing within fifteen working days. A copy of the complaint and the Consortium
member's response must be forwarded to the City of Miami Beach and the other members of the
Consortium.
f. Performance and monitoring
The City of Miami Beach has been designated by Consortium members to serve as the internal
auditor to carry out internal audits of NSP2 activities.
The City of Miami Beach is an Entitlement Jurisdiction and receives an annual allocation of
Community Development Block Grant (CDBG) funds. The City will utilize its current CDBG
Program monitoring policies and procedures, as may be modified by NSP2 notices, to ensure that
NSP2 activities are conducted in accordance with CDBG regulations as set forth in 24 CFR Part
570, as appropriate, and HUD notices governing the CDBG Program and NSP2. Utilizing risk-
based assessments on an on-going basis, immediate corrective action can be taken if a
Consortium member is found to be noncompliant.
([N~SERT the positions responsible for internal audit].
City of Miami NSP2 Consortium Neighborfiood Stabilization Program 2 (NSP2) Application
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4. RATING FACTOR 4: LEVERAGING OTHER FUNDS, OR REMOVAL OF
SUBSTANTIAL NEGATIVE EFFECTS
a. Leverage.
A total of $9,862,840 in firm commitments is provided as leverage under this application.
The City of Miami Beach has committed $656,261.45 toward down payment and closing cost
assistance for purchases of foreclosed-upon homes through an award of SHIP funds to MBCDC.
Additional leverage is provided in the form of non-federal committed funds awarded to the
redevelopment of two vacant structures for use as rental housing, Allen House Apartments and
Meridian Place as follows:
City of Miami Beach RDA: $4,969,347
Miami-Dade County Surtax: $1,379,395
FHFC Demonstration Loan: $1,000,000
Bank Financing Commitments: $ 834,731
State of Florida Elderly Community Housing Loan: $ 750,000
SHIP: $ 273,106
Evidence of firm commitments can be found as Appendix _ to this Application.
b. Removal of destabilizing influences.
The City of Miami Beach and its Consortium members do not have sufficient information to
undertake this calculation.
5. RATING FACTOR 5: ENERGY EFFICIENCY IMPROVEMENT AND
SUSTAINABLE DEVELOPMENT FACTORS
a. Transit accessibility.
All target areas under this application are currently transit accessible as they are in census tracts
with convenient bus service (local bus service every 20 minutes during rush hour or an express
commuter bus). A map of bus routes is provided in Appendix _. The City of Miami Beach
does not have rail service. However, the bus system directly links City of Miami Beach residents
to a County Metro Mover Station in the City of Miami, which links to the County's Metro Rail
system as well as to the tri-county rail system. All of the target geographies have good access to
transit that does not require daily private automobile usage for commuting within the City or to
regional employment centers.
b. Green building standards.
Moderate rehabilitation will require Energy Star-labeled appliances and lighting as well as other
City of Miami NSP2 Consortium Neighbort-ood Stabilization Program 2 (NSP2) Application
Page 29 of 39
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green features to the extent financially feasible. Gut rehabilitation will be required to exceed
Energy Star Qualified New Homes standards.
c. Re-use of cleared sites. Not applicable.
d. Deconstruction. Not applicable.
e. Other Sustainable Development Practices.
Rehabilitation of properties acquired for use as rental housing will incorporate the following
sustainable development practices:
• Sustainable Landscaping -Plants appropriate to the site's soil and microclimate will be
used.
• Energy Efficient Landscaping - To extent possible on the developed sites, shade trees will
be planted.
• Healthy Flooring Materials -where flooring replacement is required, non-vinyl, non-
carpet floor coverings will be used.
• Tub and shower enclosures: Moisture Prevention. In the event that bathrooms require
shower or tub replacement, one-piece fiberglass or similar enclosure will be used.
• Sealing Joints -All walls, floor and joint penetrations will be inspected and sealed to
prevent pest entry; large openings will be covered with copper or stainless steel mesh to
avoid rodent intrusion or corrosion by the elements.
6. RATING FACTOR 6: NEIGHBORHOOD TRANSFORMATION AND ECONOMIC
OPPORTUNITY
[INSERT -KEVIN]
City of Miami NSP2 Consortium Neighbort-ood Stabilization Program 2 (NSP2) Application
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CITY OF MIAMI BEACH NSP2 CONSORTIUM
NSP2 APPLICATION DISCLOSURE FORMS
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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CITY OF MIAMI BEACH NSP2 CONSORTIUM
NSP2 APPLICATION CERTIFICATIONS
City of Miami NSP2 Conso-tium Neighborhood Stabilization Program 2 (NSP2) Application
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CITY OF MIAMI BEACH NSP2 CONSORTIUM
LIST OF APPENDICES
Appendix A -Consortium Agreement [TO BE REVIEWED BY MEMBERS]
Appendix B -Evidence of Consortium Members' Nonprofit and Tax-Exempt Status
[NEED CITY AND MBCDC]
Appendix C -Summary of Citizens Comments [PENDING COMMISSION MTG]
Appendix D -Organizational Charts for Lead Applicant and Consortium Members
Appendix E -Management Chart for Consortium [ALICIA]
Appendix F - Evidence of Funding Commitments:
[NEED FOR MERIDIAN AND ALLEN -SEE LIST IN CHART]
Appendix G -Definitions of "Affordable Rents" and "Blighted Structure"
Appendix H -Map of City of Miami Beach Bus Routes [KEVIN]
Appendix I -City of Miami Beach Code of Conduct
Appendix J - Calculation of Removal of Negative Effects [KEVIN]
Appendix K -Description of Housing Rehabilitation Standards [ANNA]
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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APPENDIX _
DEFINITIONS
"Affordable Rents" shall be HOME program standards found at 24 CFR 92.252(a) and (c),
meaning the Maximum Allowable High HOME Rents as published by HUD from time to time.
These rents also include utilities. If the tenant pays utilities, a utility allowance must be
subtracted from the maximum allowable rent to determine the maximum contract rent. Utility
allowances shall be calculated as they are currently calculated for housing projects funded under
the City's HOME program.
"Blighted Structure" means a structure that exhibits objectively determinable signs of
deterioration sufficient to constitute a threat to human health, safety, and public welfare.
City of Miami NSP2 Consortium Neighborhood Stabilization Program 2 (NSP2) Application
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APPENDIX
CITY OF MIAMI BEACH CODE OF CONDUCT
ARTICLE VII. STANDARDS OF CONDUCT
Sec. 2-446. Declaration of policy.
It is the policy of the city commission that no officer or employee of the city, or any of its
agencies or subdivisions, and no member of the city commission, shall have any interest,
financial or otherwise, direct or indirect, or engage in any business transaction, or professional
activity, or incur any obligation of any nature that is in substantial conflict with the proper
discharge of his duties in the public interest. To implement such policy and strengthen the faith
and confidence of the people of the city in their government, there is enacted a code of ethics,
setting forth standards of conduct to be observed by all city officers and employees in the
performance of their official duties. It is the intent of the city commission that this code shall
serve not only as a guide for official conduct of public servants in this city, but also as a basis for
discipline of those who violate the provisions of this article.
(Code 1964, § 2-43)
Sec. 2-447. Penalties for violation of division.
Violation of any provision of this division shall constitute grounds for dismissal from
employment, or removal from office, or other penalty as provided by law.
(Code 1964, § 2-47.2)
Sec. 2-448. Restriction on employment and appointment of city commission relatives.
(a) No relative of any member of the city commission may be appointed, employed, promoted
or advanced in or to a position in the city if the city commission exercises jurisdiction or control
over the appointment, employment, promotion or advancement.
(b) Relative means an individual who is related to any member of the city commission as father,
mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife,
father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother or half sister.
(Ord. No. 94-2912, 3-16-94)
Sec. 2-449. Acceptance of gifts, favors, services.
No officer or employee of the city shall accept any gift, favor or service that might reasonably
tend improperly to influence him in the discharge of his official duties.
(Code 1964, § 2-44(1))
Sec. 2-450. Disclosure of interest in business entity.
(a) If a public officer or employee of the city directly or indirectly (via participation in any type
of business entity) has or holds any employment or contractual relationship with any other
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business entity which the officer or employee knows or with the exercise of reasonable care
should know, is doing business with the city, and which relationship is otherwise permissible
under state and county ethics law, he/she shall file a sworn statement with the city clerk
disclosing, (consistent with relevant privilege exemptions) the specific nature of employment and
interest in such business entity as well as commencement date of the subject employment or
contractual relationship and (if applicable) term of such relationship. The city clerk shall publish
logs on a quarterly basis reflecting the disclosure forms referenced herein.
(b) Definitions.
Business entity means any corporation, partnership, limited partnership, proprietorship, firm,
enterprise, franchise, association, self-employed individual, or trust, whether fictitiously named
or not.
Contractual relationship shall exclude situations in which a person's shareholder interest in a
publicly-traded company is less than five percent.
(c) Penalty. A violation of this section shall subject a person to a hearing before the special
master, with a fine in an amount authorized under section 30-74 of this Code.
(d) Regardless of the requirements of subsection (a) hereinabove, the validity of any action or
determination of the city commission or city personnel, board or committee shall not be effected
by the failure of any person to comply with said disclosure provisions.
(Code 1964, § 2-44(2); Ord. No. 2000-3272, § 1, 9-27-00)
Sec. 2-451. Use of position to secure special privileges.
(a) No officer or employee of the city shall use or attempt to use his official position to secure
special privileges or exemptions for himself or others, except as may be otherwise provided by
law.
(b) No officer or employee of the city shall use or attempt to use his official position to solicit
potential clients or customers (including city officers, employees or any other city personnel) for
the officer or employee's private business.
(Code 1964, § 2-44(3); Ord. No. 2008-3607, § 1, 6-25-08)
Sec. 2-452. Disclosure of confidential information.
(a) No officer or employee of the city shall accept employment or engage in any business or
professional activity that he might reasonably expect would require or induce him to disclose
confidential information acquired by him, by reason of his official position.
(b) No officer or employee of the city shall disclose confidential information gained by reason
of his official position, nor shall he otherwise use such information for his personal gain or
benefit.
(Code 1964, § 2-44(4), (5))
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Sec. 2-453. Outside employment.
(a) No officer or employee of the city shall accept other employment that might impair his
independence of judgment in the performance of his public duties.
(b) No officer or employee of the city shall receive any compensation for his services from any
source other than the city of which he is an employee, except as otherwise provided by law.
(c) No person holding the office of municipal judge of the city shall accept any professional
employment, or appear as an attorney in any cause, matter or proceeding, in the county court, in
and for the county, when he knows or may be reasonably expected to know that a police officer
or other officer or employee of the city will be a party or witness in such cause, matter or
proceeding in such county court.
(Code 1964, § 2-44(6)--(8))
Sec. 2-454. Transacting business with business entities in which employee or officer has
interest; restrictions on personal investments.
(a) No officer or employee of the city shall transact any business in his official capacity with
any business entity of which he is an officer, director, agent or member, or in which he owns a
controlling interest.
(b) No officer or employee of the city shall have personal investments in any enterprise that will
create a substantial conflict between his private interests and the public interest.
(Code 1964, § 2-45)
Sec. 2-455. Procedure by officer or employee when in doubt as to applicability of division.
When any officer or employee of the city is in doubt as to the application of this division as to
himself, he may submit to the attorney general a full written statement of the facts and questions
he has. The attorney general may then render an opinion to such person, and shall publish these
opinions without use of the name of the person advised unless such person requests the use of his
name.
(Code 1964, § 2-47)
Sec. 2-456. Division not to prevent officer or employee from accepting other employment.
It is not the intent of this division, nor shall it be construed, to prevent any officer or employee of
the city from accepting other employment or following any pursuit that does not interfere with
the full and faithful discharge by such officer or employee of his duties to the city.
(Code 1964, § 2-47.1)
Sec. 2-457. Voidability of prohibited transactions; procedure upon reports of violations.
(a) Void and voidable transactions. Any contract, agreement or business engagement entered
into in violation of this division shall render the transaction void where so provided in the
Charter; otherwise, the same shall be voidable. Willful violations of this division shall constitute
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a malfeasance in office, whether elected or appointed, and shall effect forfeiture of such office or
position pursuant to the method set forth in this division.
(b) Charges and hearings.
(1) Any classified employee of the city accused of a violation of the provisions of this division
shall be removed as such employee by his appointing officer if, after investigation by such
appointing officer, such accusation appears to be true. Written charges shall be preferred against
such employee, as provided for by the personnel rules of the city.
(2) In the event of an alleged violation of this article by an officer or official or appointed
member of commission or agency or employee other than a classified employee, full written
specifications of the alleged violation shall be sworn to by the person making such charges, and
duly submitted to the city commission. The city commission shall determine if there exists a
prima facie and bona fide alleged violation of this division by a majority vote of the city
commission; except that, if the alleged violation touches or concerns a member of the city
commission, such member shall be disqualified from participating in such determination, and the
vote required shall be five-sixths of the remaining members of the city commission.
(3) If such charges appear to constitute a violation of this division by such vote of the city
commission, the written specifications constituting such alleged violation shall be served upon
the person so charged, and the city commission shall set a public hearing not less than 15 days
thereafter for a determination of the validity of such charges. If, upon competent evidence
presented to the city commission at such hearing, the charges are substantiated, and it appears
that this division has been violated, the city commission, by a majority vote of all its members,
except where the person charged is a member of the city commission, in which case the vote
required shall be five-sixths of the remaining members of the city commission, shall remove the
person charged from his office and responsibilities as an officer, official or member of a board,
commission or agency of the city.
(Code 1964, § 2-47.3)
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