2009-27175 ResoRESOLUTION NO. 2009-27175
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK
TO EXECUTE THE ATTACHED FEDERALLY-FUNDED SUBGRANT
AGREEMENT FOR NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
BETWEEN THE CITY AND THE STATE OF FLORIDA, DEPARTMENT OF
COMMUNITY AFFAIRS, IN ORDER TO RECEIVE $2,549,551; AUTHORIZING THE
CITY MANAGER TO SIGN ANY AND ALL NECESSARY RELATED DOCUMENTS;
AND FURTHER AUTHORIZING THE APPROPRIATION OF FEDERAL FUNDS IN
THE AMOUNT OF $2,549,551.
WHEREAS, on July 31, 2008, the United States Congress enacted the Housing and
Economic Recovery Act of 2008, thereby creating the Neighborhood Stabilization Program, which
directed the Department of Housing and Urban Development (HUD) to allocate $3.93 billion to
states and units of local government as emergency assistance for the purchase and redevelopment
of abandoned and foreclosed homes; and,
WHEREAS, City of Miami Beach was awarded a total of $2,549,551 from HUD's
Neighborhood Stabilization Program (NSP1) and the State of Florida Department of Community
Affairs (DCA) is the entity managing the City's NSP1 allocation; and
WHEREAS, the regular allocation of NSP1 funds, $1,641,832, may be used for the
purchase and needed rehabilitation of foreclosed properties for rental or resale to income qualified
households earning no more than 120% of the area median income and the supplemental
allocation, $907,719, is to be dedicated for rental housing to meet the low-income requirements of
the NSP1; and,
WHEREAS, on March 18, 2009, the City approved and passed Resolution No. 2009-27039
approving the City's planned use of and application for NSP1 to purchase and rehabilitate one or
more foreclosed or abandoned multi-family buildings to be made available as rental housing
properties for income qualified households; and
WHEREAS, the City's application to DCA was accepted and an NSP1 award agreement
between the City and DCA must be executed before NSP1 funds can be expended.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE OF THE CITY OF MIAMI BEACH, FLORIDA, authorizes the Mayor and the City Clerk to
execute the attached Federally-funded Subgrant Agreement for Neighborhood Stabilization
Program Funds between the City and the State of Florida, Department of Community Affairs, in
order to receive $2,549,551; authorizing the City Manager to sign any and all necessary related
documents; and further authorizing the appropriation of federal funds in the amount of $2,549,551.
PASSED AND ADOPTED this 9th day of September , 2009.
ATTEST:
~ PROVED AS TO
NGUAGE
CITY CLERK AYOR N
Robert Parcher Matti He e a ow r
a _ z -apt
____
Attorney t.i Date
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution authorizing the City Mayor and City Clerk to execute aFederally-Funded Subgrant Agreement for
Neighborhood Stabilization Program (NSP1) funds in the amount of $2,549,551 between the City and the State of Florida
Department of Community Affairs (DCA); authorizing the City Manager to sign any and all related documents; and further
authorizing the appropriation of federal funds in the amount of $2,549,551.
Key Intended Outcome Supported:
Increase access to workforce or 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.
Issue:
Shall the City sign an agreement with DCA for NSP1 funds?
Item Summary/Recommendation:
The City of Miami Beach was awarded a total of $2,549,551 from HUD's Neighborhood Stabilization Program (NSP1). The
State's Department of Community Affairs (DCA) is the pass-through entity handling Miami Beach's NSP1 allocation. While
the City was allocated a sum on a formula basis, a formal application for the use of the funds was required and was
submitted to DCA in April 2009, along with a plan for the use of the funding, which became the City's Housing Assistance
Plan (HAP).
The City's application to DCA was accepted and an NSP1 award agreement between the City and DCA must be executed
before funds can be committed to a sponsor(s) and/or developer(s).
Advisory Board Recommendation:
N/A
Financial Information:
Source of Funds: Amount Account Approved
1 $ 2,549,551.00 new
2
NSP
OBPI Total $ 2,549,551.00
Financial Im act Summa
City Clerk's Office Legislative Tracking:
~ Anna Parekh
Si n-Offs:
Department Director Assistant City Manager City Manager
AP H JMG
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AGENDA ITEM ~ 7
DATE 9-9-ay'
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vaww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 9, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
THE CITY CLERK TO EXECUTE THE ATTACHED FEDERALLY-
FUNDED SUBGRANT AGREEMENT FOR NEIGHBORHOOD
STABILIZATION PROGRAM FUNDS BETWEEN THE CITY AND THE
STATE OF FLORIDA, DEPARTMENT OF COMMUNITY AFFAIRS, IN
ORDER TO RECEIVE $2,549,551; AUTHORIZING THE CITY
MANAGER TO SIGN ANY AND ALL NECESSARY RELATED
DOCUMENTS; AND FURTHER AUTHORIZING THE APPROPRIATION
OF FEDERAL FUNDS IN THE AMOUNT OF $2,549,551.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City of Miami Beach was awarded a total of $2,549,551 from HUD's Neighborhood
Stabilization Program (NSP1). The State's Department of Community Affairs (DCA) is the
pass-through entity handling Miami Beach's NSP1 allocation. While the City was allocated a
sum on a formula basis, a formal application for the use of the funds was required and was
submitted to DCA in April 2009, along with a plan for the use of the funding, which became
the City's Housing Assistance Plan (HAP).
On February 6, 2009, a Letter to Commission (LTC) was issued delineating the parameters
of the NSP1, and the allocated funding. As mentioned in the LTC, from the City's allocation
of $2,549,551, the DCA has determined that $1,641,832 is the "regular NSP allocation" and
$907,719 is the supplemental allocation which is to be dedicated for rental housing to meet
the low-income requirements of the NSP1 (referred to as the "NSPLI allocation"). The NSPLI
funds must be used specifically for rental housing for low-income households that earn no
more than 50% of the AMI (for aone-person household 50%AMI is a maximum of $21,100).
Use of the regular NSP1 funds must benefit those households whose incomes do not
exceed 120% of Area Median Income (AMI). The DCA has also added strict spending
deadlines for use of the NSP1 funds: The City, as sub-grantee, has just 10 months to
obligate its allocation or risk forfeiting it.
NSP1 Agreement with DCA
09/09/2009
Page 2 of 2
Resolution No. 2009-27039 was adopted on March 18, 2009, approving the City's planned
use of and related application for NSP1 funds, which authorized the regular and the low
income allocations to be used for the purchase and rehabilitation of one or more multi-family
buildings to be kept as rental properties to benefit income qualified households in
accordance with the NSP1 regulations.
The application and HAP states that in the event funds remain after the purchase of one or
more multi-unit buildings (or if the City receives additional NSP1 funds), those funds will be
used towards the purchase of condominium units for resale to income qualified homebuyers.
On May 6, 2009, a Request for Proposals (RFP) was issued soliciting project sponsors to
engage in the approved strategies. Informational notices on the availability of this funding
and the issuance of the RFP were sent countywide to a broad list of developers, not-for-
profit organizations and other community-based organizations. A separate item is being
presented to the City Commission for its consideration regarding the award of this NSP1
funding to a program sponsor.
The City's application to DCA was accepted and an NSP1 award agreement between the
City and DCA needs to be executed before funds may be committed to sponsor(s) and/or
developer(s).
CONCLUSION
The Administration recommends adoption of the attached Resolution of the Mayor and City
Commission of the City of Miami Beach, Florida, authorizing the Mayor and the City Clerk to
execute the attached Federally-funded Subgrant Agreement for Neighborhood Stabilization
Program funds between the City and the State of Florida, Department Of Community Affairs,
in order to receive $2,549,551; authorizing the City Manager to sign any and all necessary
related documents; and further authorizing the appropriation of federal funds in the amount
of $2,549,551.
JMG/HMF/AP/aa
T:\AGENDA\2009\September 9\ConsentWSP Agreement between DCA & CMB - MEMO.doc