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SHIP Agreement FY 2009-2010C7i Q y ~9 aao~.-a717~ ` ~ ~ 'SHIP AGREEMENT SHIP Fiscal Year 2009-2010 ~ ~~ ' THIS AGREEMENT, ente ~ ~~ red into this ~~-day of ~~t.( , 20(39; by and: between the- CITY OF_MIAMI. BEACH, a-Florida municipal corporation, having its principal office afi 1700 ` Convention :Center Drive; Miami Beach, Florida, (hereinafter referred to as .the City), and the MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, anot-for-profit Florida- corporation, with its principal office located at 945 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to as MBCDC). - ' WITNESSETH: .WHEREAS, the State Nousinginitiatiyes 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 .housing Statewide; and ~ ' WHEREAS, during: the 2009 Legislative session.; the Florida ~ Homebuyer Opportunity ".Program (PROP) was created to provide. up to $8,000 or 10% of the home price (whichever is less) in purchase assistance to. first time homebuyers eligible to receive the federal first-time home6uyer tax credit established through the. American Recovery and Reinvestment Act of 2009 -that must be repaid by the applicant with his%her federal tax refund or within 36 months after the . home purchase date; and ` .WHEREAS,.-the City received a total of $43,691 of SHiP Program funds for Fiscal Year ' 2009/10; and WHEREAS, this year's SHIP funds are to be used exclusivelyforthe FHOP initiative until'the tax credit program expires, on or aboufi June 30, 2010; and ' WHEREAS,,sfaff consulted with the Florida Housing Coalition (FHC) regarding the limited time. given to implement the FY2009/10 Program and was advised that, considering that the home ,,. purchase initiative is included in the current contract between the City and MBCDC, a Notice of = Funding Availability (NOFA) is not required to allocate FY2009/10 SH11P funds to MBCDC, in the amount of $39,321:9Q representing the State's allocation of $43,691 minus the City's allocation of $4;369.10 for administrative expenses and; WHEREAS, on September 9, 20Q9; the Mayor and:City Commission approved. Resolution No., 2009-27174, authorizing:the Mayor and the City Clerk to execute the following SHIP program ., agreement between the City and' MBCDC for the. implementation of the 2009-2010 FHOP initiative. NOW,., THEREFORE, in consideration of the: mutual promises contained herein, the parties.. hereto agree as follows: ' - ~ ARTICLE .. BACKGROUND ' The Florida Homebuyer Opportunity Program .(PROP) was created .during the State of Florida 2009 regular legislative session.. This funding ($30 million Statewide.} is detailed in the butlget implementing bill under Specific Appropriation 1570A only to provide subordinate loans of up to $8,000 on purchase assistance to prospectve~first-time homebuyers to applicants that are eligible _ #o receive the federal-first. time homebuyer tax credit created. through The American Recovery and . Reinvestment Act of 2009: . 1 . ~~ ~ - ARTICLE II - ~. ~ ~ BUDGET AND. SCOPE OF SERVICES MBCDC'wilf utilize $39,321,90 of SHIP fiscal Year 2009/2010 funds; as-set forth in the " -' Scope of Services in Exhibit "A"; attached hereto and made a part hereof by reference {hereinafter referred.to as the Funds, which definition shall also include the allocation of anyadditional funds that .may be provided fjy tfie City or the State 'of Florida in the future as'a result of an amendment or } - modification of this Agreement),. exclusively for down payment assistance, in an amount. not to exceed $8,000; to first time... homebuyers eligible to receive the federal first-time homebuyer tax credit: - ARTICLE III PROGRAM INCOME MBCDC agrees that any SHIP Program income generated from the use of the Funds under 3.. .. this Agreement, or funds repaid i`or any reason, after making all debt repayments to the City, or other '`' lender, if any; is to be used to°further other affordable .housing activities. ARTICLE IV . ~_ ~ SPECIAL:PROVISIONSAPP~ICABLE TO FUNDS PROVIDED UNDER- THE FHOP PROGRAM The parties aeknowledga that the Funds provided under this program; which are distributed = through and operated under the SHIP~Program require that the funding be used to provide up to _ $8;000 or 10% of the-home price (whichever is less) in purchase assistance to applicants that are eligible to ~receive.the:federal first time homebuyer tax credit created through the American Recovery and Reinvestment Act of 2009; the SHIP Program Rule; and the City's Local Housing Assistance ' Plan. The assistance .is to be repaid by the applicant with his/her federal tax refund, or"within 36 " months after-the home purchase. date. This initiative is to expire by June 30, 2010,.extended from - ~ ~ the original date" of November 30„ 2009, and therefore the home .purchase date must be prior to June 30; 2010,: unless the Program is extended. Once,the FHOP initiative ends, MBCDC can use " any remaining FY2009/2010 funds to continue providing SHIP eligible activities in accordance with SHIP Program rulesand the City's Local Housing Plan, ubject-to compliance withArticle 111 hereof.- ' ~~ ~ MBCDC expresslyagrees to the following terms acid conditions in conformitywith the FHOP Program -Rule: ~ .. ;(a) Affordability Period. The period of time SHiP assisted units must remain affordable is for .a`minimum of fifteen (15) years; ¢n accordance with the SHIP Program Rules and the Cityof'Miami ,Beach Local Housing Assistance Plan (CHAP). . - (b) Repayment of Funds.. The Funds provided to applicants that are eligible to receive he federalfirst tune homebuyer tax credit-shall be repaid by the applicant in itsentirety to the City with his/herfedera(tax refund,~orwithin~36 moriths after the home purchase date. Concurrent with the ~~ closing on the, property, the owner shall execute a Promissory Note and a .Mortgage Deed incorporating the terms of this loari. ' (c) The ,maximum income limif under the FHOP Program shall ke an adjusted,gross income of $75,000 foraingle taxpayer households, or $150,000 for joint-filing taxpayer households,. which is o .. 2 ." (d) income Taraetinq. There is no requirement to-reserve thirty (30%) percent of the funds :. ~. for'awards to very-low income ..persons or thirty (30%) percent of the funds for awards to low-income . persons. - ` (e) There is no requiremPntto expend. seventy five (751°) percent of funds for construction,. rehabilitation, or emergency `repair and;., (f) The principal balance of the loans provided may not exceed. ten (40%) percent of the home; purchase, or $8;000 (whichever is less).: ~ . . ` ~ (g} MBCDC warrants=and represents to the City that it maintains a financial management system that conforms to the financial accountability standards of the Office of Management and Budget:{OMB) Ci[cular A-110.. `.(h). Records: MBCDGagrees fo 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. All. records.required: herein shall be retained and made accessible for a period of at least five (5).years after. closing, as provided in the SHIP Program Rule, • and' Florida Statutes Chapter .11'9. ' - O Property Standards. -For th'e duration:of this Agreement, and any amendments hereto, ` ; .. ,housing that is assisted with FHOP funds, ata minimum, must rneetthe Housing Quality Standards • of CFR Section 882.109. - (k) Affirmative Marketina. MBCDC acknowledges that it is unlawful to discriminate on the basis of-race; creed; color, religion; age, .sex, sexual orientation, marital status, familial status, natonaF:origin or: handicap. MBCDC agrees to maintain affirmative marketing procedures and . -requirements, in writing, for fHOP assisted housing, as set forth in Chapter 67-37 F.A.C. . - (I) -Home Ownership.' Housing that is for purchase~qualifies as affordable housing only if 1) the.housing'has an initial purchase .price,, or appraised value after rehabilitation or repair, that does not exceed -ninety percent (90%) of the average purchase price for the Miami-Dade .Metropolitan Statistical Area (MSA) of $329,268, for new and existing homes, and subject to change from time- . to-time, as determined by the Florida Housing Finance Corporation; 2) is the principal residence of. the owner who.qualifies under.the FHOP. Program rules. - ` ,. ARTICLE`V ELIGIBLE COSTS . MBCDC agrees that eligible costs for -under this Agreement are limited to the Florida 4 ' Homebuyer Opportunity Program `(FHOP) requirement- of providing up to $8,000 or'10% of the ~_ •. purchase -price (whichever is less) in purchase assistance to first time homebuyers eligible to receive the federal first-time homebuyer'tax credit established by the American Recovery and • Reinvestment Act of2009. Once the FHOP Program expires,: MBCDC can utilize any unexpended funds from.this allocation for approved, regular SHIP activities., subject to compliance with Article III hereof.. 3 ~. ARTICLE VI METHOD 0F'PAYMENT (a) Thefunds shall be ..paid to MBCDC on a reimbursement basis, for the down-payment assistance provided~to eligible individuals whose home purchase was used for a home closed prior: -to the expiration ofthe FHOP Program, and with supporting documentation, that includes, at a ~ ' minimum, Closing Qocuments, a Promissory Note and Mortgage protecting the City, and a Mortgage . ' -Deed that incorporates the. payment requirements and any other pertinent information regarding FHOP and SHIP requirements: - - (b) Any payment or disbursement of Funds under this Agreement may be withheld at the. ° City Manager's (or his authorized designee's) sole discretion-pending the receipt of, and approval by , the.City, of all reports and documents which MBCDC is required to submit to the City pursuant to the -terms of this Agreement. ' ARTICLE Vlf . SUBCONTRACTS - [Intentionally Omitted] - :; ARTICLE VIII ~ ° CONDITIONSOF SERVICE _ (a) .MBCDC shall comply with the regulations of the SHIP.. " ' ~(b) Eaual Opportunity: MBCDC shall:complyand be governed bythe Equal Opportunityand Fair Housing -laws, No person. in the. United States shall on the grounds of race, color, national origin, religion, disability or sex be excluded from .participation in; or be denied the benefits of or be ~. " subjected to discrimination under any program or activity funded in whole or in part with SHIP Program funds. - (c) Housing purchased or assisted with SHIP funds. shall be subject ,to testing, and • abatement activities for lead-based paint. ~ -, ' ~ ~ (d) MBCDC shall comply with those other statutes, regulations and executive orders, as same may be amended, and as yet forth in Exhibit "B",,attached hereto and herein incorporated.. by reference. .- ,. ARTICLE IX ~ - TERM OF AGREEMENT .~ - This Agreement shall be deemed effective following approval by the Mayor and City Commission: acid execution of same by the .parties hereto, provided, however, that upon. approval and, full execution, the term of this Agreement shalt be deemed to have.commenced retroactively to October 1; 2009. ' `The-City and MBCDC. mutually agree that-the Funds are reserved. for MBCDC for theh ' " designated time period as follows: - (a) The SHIP Funds allocated' for Fiscal Year 2009/2010 for. the FHOP initiative,, in the .:. . amount of $39,321:90 are to`be'ased from the period of October 1, 2009, through June . ~ '. o. 4 30, 2010. (b) The Funds must be expended by June 30, 2010. Upon expiration of the Agreement, any unused portions will revert to regular SHIP, and MBCDC can use any remaining Funds to continue providing SHIP eligible activities, subject to compliance with Article III .hereof. ARTICLE X [Intentionally omitted] ARTICLE XI AMENDMENTS Any amendments,. alterations, variations; modifications or waivers of any provisions to this Agreement, including an increased allocation of Funds or extension of the Term, will only be valid when they have been reduced to writing and duly signed the both parties hereto. Any changes which do not substantially change the Scope of Services or increase the total amount payable under this Agreement, shall be valid only when reduced to writing and signed by the City Manager (or his designee) and MBCDC. ARTICLE XII CONFLICT OF INTEREST (a) MBCDC shall comply with the standards contained within the SHIP Program Rule and the FHOP initiative requirements. (b) MBCDC shall disclose any possible conflicts of interest or apparent improprieties of any party that is covered by the above standards. MBCDC shall make such disclosure, in writing, to the City Manager orhis/her authorized designee immediately upon MBCDC's discovery of such possible conflict. The City will then render an opinion which shall be binding on all .parties. (c) Related Parties. MBCDC shall report to the City (through its City Manager or his/her designee) the name, purpose, and any other relevant information in connection with any related- partytransaction., This includes, but is not limited to, dealing with afor-.profit subsidiary or affiliate organization, an organization with overlapping board of directors, or an organization for which MBCDC is responsible for appointing members. MBCDC shall report this information to the City prior to forming the relationship or, if already formed, shall report it immediately. ARTICLE XIII INDEMNIFICATION AND INSURANCE MBCDC shall indemnify and hold harmless the City (through its City Manager or his/her authorized designee) from any and all claims, liabilities, losses, and causes of action which may arise out of an act, omission, negligence or misconduct on the part of MBCDC or any of its officers, directors, employees, agents, servants, contractors, subcontractors, consultants and sub consultants, patrons, guests, clients, and/or invitees. MBCDC shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the City, when applicable, and shall pay all costs and judgments which may issue .thereon.-This indemnification shall survive termination and/or expiration of this Agreement. 5 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 five (5) years after the close of the fiscal year in which the Funds reserved hereunder are fully expended. ARTICLE XVI COMPLIANCE.WITH LOCAL STATE AND FEDERAL REGULATIONS MBCDC shall comply with all applicable Federal and State regulations; as applicable to Program administration; specifically including, but not limited to, the SHIP Program Rule(s) Additionally, .MBCDC will comply with all State and local laws and ordinances hereto applicable. ARTICLE XVII MISCELLANEOUS CONDITIONS (a) It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement, to be used for compensation originated from grants under the FHOP initiative and SHIP Program and are contingent upon approval of activities by the State of Florida. (b) Title and paragraph headings are for convenient reference and are not a part of this Agreement. (c) In the event of conflict between the terms of this Agreement and any terms or conditions contained. in any attached document, the terms in this Agreement shall have precedence: (d) No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. ARTICLE XVIII ACCESS TO RECORDS MBCDC agrees to allow access, during normal business hours, to all financial records to authorized. Federal, State or City representatives including, but not limited to, for the purposes set forth in Article XV herein; and MBCDC agrees to provide such assistance as maybe necessary to facilitate the conduct of a financial or operational audit by any of these representatives. MBCDC shall also allow access during normal business hours to all other records, forms, files, and documents which have been generated in performance of this Agreement, to those personnel as may be designated by the City, and or State and/or Federal representatives. ARTICLE XIX SEVERABILITY OF PROVISIONS If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable law. 7 ARTICLE XX ` PROGRAM PUBLICITY MBCDC agrees, that any news release or other type of publicity pertaining to the project as stated herein must recognize the City as the recipient funded by the Florida Housing Finance Corporation, underthe State Housing Initiatives Partnership (SHIP) Program forthe FHOPProgram, and administered by the Office of Real Estate, Housing & Community Development of the City of Miami Beach as the entity which provided funds for the particular project. ARTICLE XXI SUCCESSORS AND ASSIGNS MBCDC agrees that this Agreement. shall be binding upon the parties herein, their heirs, executors, .legal representatives, successors, and assigns. ARTICLE XXII INDEPENDENT CONTRACTOR MBCDC and its employees and agents shall be deemed to be independent contractors and not agents or employees of the City, and shall not attain any rights or benefits under the Civil Service or Pension Ordinances of the City, or any rights generally afforded classified or unclassified employees; further they shall not be deemed entitled to the Florida Workers' Compensation benefits as an employee of the City. ARTICLE XXIII ASSIGNMENT This Agreement may not be assigned or transferred by MBCDC without the prior written consent of the City. The City may terminate this Agreement for cause in the event that MBCDC - does not strictly comply with. the procedures established herein for obtaining City consent to .assignment or transfer as defined by this Article. A merger, dissolution, consolidation, conversion, liquidation or appointment of a receiver for MBCDC, shall also be deemed an assignment of this Agreement, and will require the prior written consent of the City thereto. ARTICLE XXIV TERMINATION FOR CAUSE AND/OR FOR CONVENIENCE The City may place MBCDC in default of this Agreement and may suspend or terminate this Agreement, in whole or in part, for cause. "Cause" shall include the following: (a) Failure to comply and/or perform in accordance with any of the terms and conditions of this Agreement, or any Federal, State or local regulation; (b) Failure to submit any required report to the City or submitting any required report which is elate, incorrect, or incomplete in any material respect; (c) Implementation of this Agreement, for any reason, is rendered impossible or infeasible; (d) Failure to respond in writing within thirty (30) days of notice of same from City to any concerns raised by the City, including providing substantiating documentation when requested by 8 the City; (e) Any evidence of fraud, waste or rriismanagement as determined, by the City's monitoring of project(s) under this Agreement, or any violation of applicable SHIP Program Rules and. regulations, or of any applicable City, State, County, and/or Federal laws, ordinances, code provisions, ordinance and/or other regulations; (f) MBCDC'S insolvency or bankruptcy; and (g) An assignment or transfer of this Agreement or any interest therein which has not been approved by the City pursuant to Article XXIII herein. If the default complaint is not fully and satisfactorily cured within thirty (30) days of receipt of such notice of default to MBCDC, at the expiration of said thirty (30) day period (or such additional period of time as maybe permitted by the City, in its sole discretion, as required to cure such default in the event MBCDC is diligently pursuing curative efforts),. this Agreement may, at the City's sole- option and. discretion, be deemed automatically canceled and terminated, and the Funds shall immediately become due and payable to the City. The City shall further be fully discharged from any and all liabilities, duties and terms arising out of, or- accruing by virtue of, this Agreement. In the event of a default for cause, the City may also, at its option, avail itself of any and all remedies .pursuant to 24CFR part 85.43, as amended from time to time, including suspension in whole or in part, of any and all MBCDC's other grant award(s); recapture of those funds; and any other remedies that may be available at law or in equity. Notwithstanding this Article XXIV, this Agreement maybe terminated by the City, in whole or in part, without cause and for the Cites convenience, upon the furnishing of thirty (30) days written notice to MBCDC. In the event of termination for convenience by City, MBCDC herein acknowledges and agrees that it shall not have any claim; demand, or cause of action of whatsoever kind or nature against the City, its agents, servants and employees: ARTICLE XXV ADDITIONAL REMEDIES In the-event of termination of this Agreement, whether for cause or for convenience, the City shall additionally be entitled to bring any and all legal and/or equitable actions, which it deems to be in its best interest, in Miami-Dade County, Florida, in order~to enforce the City's rights and remedies against MBCDC. The City shall be entitled to recover all costs of such actions, including reasonable attorney's fees. Further, the City and MBCDC hereby knowingly and intentionally waive the right to jury trial in any action or proceeding that City and MBCDC may herein institute against each other with respect to any matter arising out of or relating to this Agreement or the Funds. ARTICLE XXVI MAINTENANCE AND RETENTION OF RECORDS MBCDC agrees that it will maintain all records required pursuant to Chapter 67-37, F.A.C., in an orderly fashion in a readily accessible, permanent and secure location, and that it will prepare and submit all reports necessary and to assist the City in meeting record keeping and reporting requirements hereunder. (a) Records shall be maintained for a period of five (5) years after the closeout of funds under this Agreement except as provided herein in paragraphs (b) and (c) below. '~ 9 (b) If any litigation, claim, negotiation, audit or other action has been started before the regular expiration date, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular period specified in paragraph (a), whichever is later; (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 five years AFTER the required period of affordability. ARTICLE XXVIf LIMITATION OF LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such .breach never exceeds the sum of the Funds reserved hereunder, less any amount of the Funds actually paid to MBCDC by the City at the time of the alleged breach. MBCDC hereby expresses its willingness to enter into this Agreement with MBCDC's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of the Funds, less any amount, in whole or in part, of the Funds actually paid to MBCDC by the City at the time of the alleged breach. Accordingly, and notwithstanding any other term or condition of this Agreement, MBCDC hereby agrees that the City shall not be liable to MBCDC for damages in an amount in excess of the Funds, less any amount, in whole or in part, of the Funds actually paid to MBCDC by the City at the time of the alleged breach, for any action or claim for breach of contract arising out of the performance ornon-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. ARTICLE XXVIII VENUE This Agreement shall be governed by, and construed. in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, MBCDC AND THE CITY EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THiS AGREEMENT ARTICLE XXIX ADDITIONAL CONDITIONS AND COMPENSATION It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement to be used: for the purposes described herein, originated from grants of State Housing Incentives Partnership (SHIP) Program funds forthe FHOP initiative, and must be implemented with all. of the applicable rules and regulations of the Florida Housing Finance Corporation. It is expressly understood and agreed that in the event of curtailment or non-production of said SHIP Program funds, that the financial sources. necessary. to continue to pay the Funds hereunder will .not be available and that this Agreement will thereby automatically terminate effective as of the time it is determined that said funds are no longer available. In the event of such determination, MBCDC 10 f ~ - agrees that it will. not look to; nor seek to hold liable, the City or any individual member ~of the City Commission'thereof; personallyfor the performance of this Agreement and all parties .hereto shall ' be released from further liability each to the other under-the Perms of this Agreement: . ~ _ ARTICLE XXX . NOTICES All .notices shall:be sent to the parties at the followingaddresses: City: Anna ~Parekh, Director '• ' ~ Office of Real Estate, Housing,& Community Development City of Miami Beach ` " ~ ~ ~ ~ 1700 Convention Center Drive .. Miami Beach, FL 33139 - _ . MBCDC: Roberto Datorre, President. ., ~~ ~ - Miami Beach Community Development Corporation ' ,, ~ .945 Pennsylvania Ave. _ , - ` .. ~ . ' Miami Beach,.FL.33139 . . The above .,,parties may change such addresses afi any time. upon. giving -the other party written notification. All notices under this Agreement must be-in writing and shall be deemed to 6e .served when., delivered to the, address of the addressee. All notices served by mail shalF be ~regstered~mail,return-receiptrequested._ 11 IN WITNESS WHEREOF, The parties hereto have caused this Agreement to be executed by their duly authorized official(s), on the day and year first above written. ATTEST: MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION Roberto Datorre, President kthevt6 DG�ary-� Print Name CITY OF MIAMI BEACH Herrera ow r, Mayor APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION F:IRHCDI$ALLIHSG-CDIMARIA SIERRAIContractslSHIP Agreement (MBCDC 2009-10 FHOP).doc 12 Vete ... EXHIBIT A ° Scope_ of Services , Services to be Provided: MBCDC will provide up,to $8;000 or 40%_ of the home price (whichever is less) in down. payment assistance to abouf five {5) first time home-buyers eligible under the Homebuyer Opportunity Program... ~ . . Expenditure Deadline: ' MBCDC acknowledges and agrees that Funds provided under this Agreement shall be expended, -documented and invoiced to the City prior to November 30, 2009. Unexpended Funds: •- If Funds which have .been allocated.for the FHOP initiative funds are not expended by the terms of - the Agreement;. the remainder of these,Funds will revert to•regular SHIP allocations.. MBCDC can _ utilize any unexpended funds from this allocation for approved, .regular SHIP activities, subject~to ' compliance with Article l11 of the Agreement. - ~` . Payment: . The City will pay up to $8,000 or 10% of the purchase price, whichever is less. Payments-by the City = to MBCDC shall be limited to $8,000 or 9A% of the purchase price in down payment assistance to a maximum of 5 eligible individuals:- - , ` ~ - i `Required Documentation: For each home buyer assisted with the Funds provided hereunder, MBCDC, at a minimum; shall .require to keep the following documentation: ~ . . :.. 1. A copyof the letter of comrnitment/award to the FHOP/SHIP recipient. °.. 2. A,completed application form, signed and dated; containing income and. asset information, ` and household. characteristics, including. age of head. of household, family size, race, and special `needs, if'any. The information must be kept in a form acceptable to the City. 1hichever method is used, annual gross anticipated income must. be used and the SHIP ` income limits cannot be exceeded. 3' Income verification forms for each adult' in the household, dated within 1.20 days of the award-date. Award letter to recipients should include the requirement to notify the City's SHIP Coordinator immediately of any change in income, assets, or household size occurring 'between the award letter and closing. 4. ' A signed affidavit ofino~ircome change must be completed, if the closing is more than 120. days-after the complefion of the original income verification. ~ ' ~. 5. A copy of an appraisal; certified to the lender; dated within ninety (90) days of the closing . dafe, showing. a value at least equal fo the selling price.. ~ ' 6. A copy of the purchase contract. ~ ~ ~. 7. ' Letter of commitment'or written .agreement. . ' Loan closing documents - (. 8. 'Promissory Note and Mortgage .Deed which includes the required recapture provisions, executed bythe purchaser, and recorded in the public records. 9.. Any and all other relevant correspondence. 13 .4 - EXHIBIT B _ - ' OTHER REQUIREMENTS . ' . ,As the~City of Miami Beach is providing this funding through SHIP funds,; MBCDC agrees to comply • with the. following statutes, regulations and executive orders.; as may be amended. These . - requirements are incorporated herein.by reference:-' - _„ • 1. - _ Freedom of Information and. Privacy Acts `. -Freedom of 'Information Act (5 U.S.C. 552),' and:. the Privacy Act of 1974 (5 U.S.C. 552x) 2 Equal Opportunity . -Title VI of the Civil, Rights Act of X1964 (42 U.S.C. 2000d) and 24 CFR Part ,1 9 Exeecutive OrdeC11063 has amended b Execut ve 001) - y der 12259 . - -Executive. Orders 11246,' 11265, 121.38 and 1..2432 . -Section 3 of the Housing and Urban Development Act of 1968 (12 U.S:-C. 170) ' -'Section 504 of-the. Rehabilitation Act of 1973 (29 U,S.C. 794) ~. , -The Age Discrimination Act of 1975 (42 U.S.C. 6.101) . . =The Fair'Housing Amendments Act of 1988 .. 3..` . ~ Lead'.Based Paint - ~ - - - Lead Based Paint Poisoning Prevention Act{42 U.S.C. 4801,. et~seq) ~ . - `. -HUD Lead Based .Paint Regulations (24 CFR. Part 35) 4 Asbestos - ~ . ~ - -Asbestos Regulations (40 :CFR 61, Subpart M) ,' -- U.S. Department. of 'Labor Occupational Health and Safety (OSHA) Asbestos '~ - - ~~ - ~ Regulations (29 CFR.191.1101) - , ' ~ ~; ~ _ - ; 5:~, Handicapped Accessibility - - Architectural' Barriers Act of 1968 (42 U.S.C. 41'51 and. 24 CFR Part 44} .~ - 6. ~ Additionally;. all parties.. agree to comply with all existing federal, state and local laws and - ~ ~ - ; ordinances hereto applicable, as amended: • :- .. - - ~ • ~, - ~, ,. • ~ i .: - .. • . ~ ., , •. ~ . ' '. - ~ ` . f ,. - ~ 1 '~ .' ,. ; 1- ~ - 1 ,. , . { ,, . -. ~ I - ,. . ' a • . 1 ,' - , ., ... . ~' ~} r ~ A resolutionto provide $39,321.90 in.funding from the SHIP activities in accordance witti.the SHIP Program Rule and tt Ke intended Outcome Su orted: increase access to workforce or affordable housing. Supportingbata {Surveys,fnvironmentatScan,~tc.): 'B C~MMISSI4N ITEM SUMMARY gram,for FY 2009/10 to fund eligible affordable housing ~ity's Local Housing Assistance Plan. i on the2007 CustomerSatisfaction Survey, affordable ~ housing was a cancem for 82°Io of those surveyed. ~ ; Issue:.... .Shall 'the City provide $39,321'.90 in FY 2009110 SHIP Program funds to assist income-eligible households ins acxordance with the Florida Housin O artuni Pro ram FLHOP and the SHED Pro ram re uirements. ' ItemSumma- 1Recornmendatlon: )During the 2009 legislative session, the Florida Homebuyer Program (FLHOP) was approved to provide up to $8,000 Int purchase assistarce.to first time homebuyers eligibleto receive thefederal first #ime homebuyer tax credit established' through the American Recovery and ReinvestmentAct of 2009. The City also received notification that the FY 2009/10 SHIP award was only~43,691, and #hat the funds must be used to provide purchase assistance to approximately five households eligible under the FLHOP and SHIP program guidelines. The program for first time homebuyers eligible fo: receive the tax credit is due to expire on or about November 30, 2009: As a result, .the Implementation of the SHIPI -program must be done under severe time constraints. . . + As you-may recall, the City has.historically received $500,000 a year in SHIP funds, of which 90% has bean allocated toy provide program-eligible activities to income~eliglble persons. Because of the amount of funding available, the City has; typically used a competitive process (a °Nofice of Funding.Availability°) to selecta subrecipient(s) to provide the eligibles services. the State program also requires that these funds be allocated through a Tocally-determined selectionf process. In Ilgtt of the significantly reduced amount of SHIP funding this year, and the limited funding for administration; ` of the program ($4,391), staff consulted with the State as to the need for the typical procuremen# process, especially In Ilght of the limited funding acid within the limited time givenfor its implementation. -Staff was advised by State technical representatives th~# Miami Beach,.Community Development Corporation (MBCDC),.the current program sponsor, Ise alreadyproviding he first-time home purchase activities under the SHIP program and, therefore, the City could award the FY2009f10 aflacation to MBCDC to implement the FLHOP initiative in an expedited manner. Once the FLHOP . initiative ends, MBCDC can°use any remaining FY2009110 funds to continue providing SHIP eligible activities inj , ~ accordance with SHIP program rules. ! i The Administrafion recommends the approval of a contract between the City of Miami Beach and the MBCDC In thei. amount of $39,32f:80, representing the state's allocation of $43,891 minus the City's allocation of $4,369.10 far! „ adrriinistrative expenses. The Sta#e requires us to amend the City's Loca{ Housing Assistance Plan (CHAP} fo permits ` the recei t and use of funds for the I'LHOP ro ram' the amendment is submitted as ase orate a enda item. { Advlso soard Recommendation: N/A - " : Financial"informationc_ ~ i Source of Amount ~ Account Approved " , Funds: 1 $39,321.90 152 - 5719 - SHIP 2 PROG ; OBPI Total Financial Impact Summary:.. ., CI Clerk's Office Le islative Trackin ! Anna Parekh 7:1AGENDg120091September 9\ConsentlSHIP FY 2009-10. SUMM. doc ~+~ h-~11 AIVtI.~EA~H . ~ 391 Department Director Assis nt Clty Manager CIty Manager AP ,- HF JMG - i ~~ ' f ACrENDA I E G7 T^ uAaE -0 I City of Miami Beach, 1:700 Convention Center Drive, Miami Beoch, florido 33139, wwvr.miomi6eachfl.gov ` COMM1S510N MEMORANDUM . TO: Mayor Matti H. Bower and Members of the City Commiss' ' -FROM:" Jorge M. Gonzalez, City Manager ~_ - . ~ DATE: September 9,2009 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYORAND THE CITY CLERK TO EXECUTE A STATE HOU$ING ..INITIATIVES PARTNERSHIP (SHIP) r PROGRAM AGREEMENT 1N A FORM ACCEPTABLE TO THE CITY ATTORNEY BETWEEN' THE CITY AND MIAMi BEACH COMMUNITY DEVELOPMENT `` CORPORATION, WHICH PROVIDES SHIP PROGRAM FUNDS IN THE AMOUNT - OF $39,321:90 FROM FISCAL YEAR 2009110 FOR FIRST TIME HOMEBUYER ,, ACTIVITIfES FOR~INCOME-ELIGIBLE HOUSEHOLDS, IN ACCORDANCE WITH THE SHIP PROGRAM RULES AND THE CITY'5 LOCAL HOUSING ASSISTANCE PLAN. ADMINISTRATION RECOMMENbATION , : .: Adopt the Resolution. , . ANALYSIS . The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing Finance Corporation, was established by he.1992 William E. Sadowski Affardable Housing Act to ° stirriulata the production of housing statewide. Annually, the Florida Housing Finance Corporation allocates. SHIP Program funds among participating jurisdictions on a formula basis. The City has • ~ participated !n the SHIP Program. since fiscal year 1995198. As you may .recall, the City has ` historically received $500,400 a year in SHIP funds, of which 90% has been allocated to provide. program-eligible activities to incorrie-eligible persons. Because of the amount of funding available, the Glty has typically used a competi#ive process (a "Notice of Funding Avai{abiiity°) to select a subrecipient(s) to provide the eligible affordable housing programs... . During the 2009 legislative session; #hs Florida Homebuyer Oppor#unity Program. (FLHOP} was . created to provide up to $8,000 inpurchase assistance to firsttime homebuyers eligible to receive the federal first,time homebuyer tax credit established through the American Recovery and. Reinvestment Act of 2009.. The State Housing Initiatives Partnership Act (F.S. 420.907-420.9079, Florida Statutes . ~ 9992 and Rale Chapter 67-37), Florida Administrative Code,. requires locafgovernments fo approve anyamendment to-their Local Housing Assistance Plan (LHAP), ThQ State.requires recipients to amend their LHAP to reflect the eligible use of these .funds for the .FLHOP, in order to receive the allocation. The LHAP revision incorporating this initiative is being submitted for the Commission's 'approval under a separate agenda item. The City received a total of $43,691 of SHIP Program funds for fiscal year 2009110, as opposed to the typical annual appropriation approximately $500,000. This year's funds are #o be used exclusively for the. FLHOP initiative until the tax credit program expires on or about November 30, 2009. In light of the significantly reduced amount of SHIP funding this year, and the limited fundingfor administration of the program{$4,391.), staff consulted with the Florida Housing Coalition (EPIC) regarding the ilmifed - time given to implement the FY2009/10 program. The FHC staff has advised that, considering that- the home purchase initiative is included in the current contract between the Clty and Miami Beach Community Development Corporation (MBCDC}, FHC is in accord with staff #hat a Notice of Funding Availability (NOFA) would. not be required #o allocate funds to MBCDC'in the amount of $39,321.90, i i i i i r I t Commission Memorandum September 9, 2009 Page 2 of 2 . representing the. state's allocation of $43,694 minus the City's allocation of $4,369.10. for administrative expenses. CONCt_tJSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach adopt a resolution authorizing the Mayor and City Cierk to execute a State Housing Initiatives Partnership (SHtP) Program Agreement, In a form acceptable to the City Manager and City Attorney, between the City and Miami Beach Community Development Corporation (MBCDC}, which provides SHIP Program funds in the amount of $39,321.90 for FY2009110 to provide financial assistance to first time homebuyers eligible under the Florida Homebuyer Opportunity Program, (FLHOP) in accordance with the SHIP Program Rule and the City's Locai Housing Assistance Pian. Once the homebuyer tax credit program expires, these funds will revert to regular SHIP allocations, and therefore, MBCDC can utif-ze any unexpended funds #rom this allocation for approved, regular SHIP activities. JMG/HMFlAP/MS T:V~GENDA~20091September 91ConsenflSHIP FY20o9 MBCDC - MEMO.doc 393 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AUTHORI2INGTHE MAYORANDTHE CITY CLERKTO EXECUTE A STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT BETWEEN THE CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION {MBCDC), IN A FORM ACCEPTABLE TO THE CITY MANAGER AND CITY ATTORNEY, WHICH PROVIDES SHIP PROGRAM FUNDS,.1N THE AMOUNT OF $39,327.90 FROM FISCAL YEAR 2009110, FOR FIRST TIME HOMEBUYER ACTIVITIES FOR INCOME-ELIGtBLE HOUSEHOLDS. WHEREAS, the State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing Finance Corporation, was established by the 1992 William E. Sadowski Affordable i Housing Act to stimulate the production of housing Statewide; and i WHEREAS, during the 2009 Legislative session, the Florida Homebuyer Opportunity Program (FLHOP) was created to provide up to $8,000 In purchase assistance to first time homebuyers eligible to receive the fedora! first-time homebuyer tax credit established through the American Recovery and Reinvestment Act of 2009; and WHEREAS, the City received a total of $43,691 of SHIP Program funds for Fiscal Year 2009/10, l as opposed to fhe historical annual approximate $500,000 allocation; and i .WHEREAS, this year's SHIP funds are to be used exclusivelyfor the FLHOP inftiaEive until the tax ' credit program expires, on or about November 30, 2009; and WHEREAS, staff consulted with the Florida Housing Coalition (FHC) regarding the Eimited lime given to Implement the FY2009/10 Program and was advised that, considering that the home purchase Initiative Is included in the current contract between the City and MBCDC, a Notice of Funding Availability (NOFA) is not required to allocate FY2009110 SHIP funds to MBCDC, In the amount of $39,321.90, representing the State's allocation of $43,691 minus the City's allocation of $4,369.10 for admin)strative expenses. NOW, THEREFORE, BE I7 RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM BEACH, FLORIDA, that the Mayor and City hereby authorize the Mayor and City Clerk to execute a State Housing initiatives Partnership (SHIP) Program Agreement, in a form acceptable to the City Manager and CityAttorney, between the City and MBCDC, which provides SHIP Program funds in the amount of $39,321.90 for FY2009/10, to provide financial assistance to first time homebuyers eligible under the Florida Homebuyer Opportunity Program, (FLHOP} in .accordance with the SHIP Program Rule and the City's Local Housing Assistance Plan. . • Passed and adopted this day of , 2009. MAYOR ATTEST: CITY CLERK 7:1AGENDA120091September 91ConsentlSHIP FY 2009-10 - RESO.doc APPROVED AS TO =ORM' GUAGE ' FO CUTiON ~/`jyry yf Y D. PU ~~rmoP/ v maw. ~ 08te 394 COMMISSION ITEM SUMMARY Condensed Title: A resolution accepting the recommendation of the City Manager, pursuant to a City RFP regarding Neighborhood Stabilization Program Funds (NSP1) for purchase and rehabilitation of foreclosed and/or abandoned residential property; auttior¢ing the Mayor and the City Cleric to execute an agreement with MBCDC, as the successful proposer, subject to the' approval of the recommended use by MBCDC by HUD and the DCA, and contingent on the City-procured appraised value being in accordance with NSP1 rules; provided further, however, that in the event that HUD or the DCA does not approve the recommended use by MBCDC, then authorizing the City Manager to reject all proposals pursuant to this RFP for NSP1 funds and issue a new Re nest For Qualifications RFQ from develo ers for use of the NSP1 funds. Ke Intended Outcome Su orted: Increase access to workforce or affordable housing. ' Supporting Data (Surveys, Environmental Scan, etc.); Based an the 2007 Customer Satisfaction Survey, affordable housing was a concern for 82% of those surve ed. Issue• Shall the Cityaward MBCDC NSP1 funds for the purchase and rehabilitation of foreclosed and/or abandoned residential nrnnerfi~ tem SummarylRecommendation: The Clty of Miami Beach was awarded a total of $2,549,551 from HUD's Neighborhood Stabil'~zation Program (NSP 1). The State's Department of Community Affairs (DCA) is the pass-through entity handling Miami Beach's NSP1 allocation. i. On May 6, 2009, the City issued a Request for Proposals (RFP) from qualified fiousing development entities to provide property services related to the City's primary objective under the Neighborhood Stabifizatien Program of purchasing', rehabilitating, and renting foreciosed multi-family buildings; and if funding allows, the secondary objective of assisting income-qualified home buyers in purchasing foreclosed single family units in Miami Beach. On July 31, 2009, three applications were received, but only one, Miami Beach Community Development Corporation's (MBCDC), was deemed responsive. ' MBCDC's application requested a total of $2,545,511, of which $2,061,456 was proposed to ba used for the primary objective of purchasing and rehabilitating a 16-unit building, and $484,055 to purchase five scattered site homeownership units per the secondary objective outlined inthe RFP. Notwithstanding, theentire NSP1 allocation is actually $2,549,551, of which the City may retain 6.8% for monitoring activities. Therefore, the funding available #or award is $2,376,181.53 and, as such, the funding available for the secondary objective as proposed by MBCDC is reduced accordingty to $347,725 from the $484,055 proposed.. ~ It is recommended that the City's NSP1 funds be awarded to MBCDC as the successful applicant underthe RFP, subjectto approval by HUD or the DCA of MBGDC's intended use of the funding, and contingent on the City-procured appraisal value being in accordance with NSP1 rules. In the event that HUD or the DCA doss not approve the use as recommended by MBCDC, then the Clty Manager requests authorization to reject all proposals pursuant to the RFP for NSP1 funds, and issue an RFQ from ualified develo ers for use of the NSP1 funds. t Adviso Board Recommendation: On August 19, 2009, the Loan Review Committee reviewed the responsive application and recommended That the City award NSP1 funds to MBCDC as the onl res onsive a licant. ' Financial Information: Source of Funds: Amount Account Approved 1 $2,376,181.53. new ~ 2 NSP OBPI Total $2,376,181.53 ~ ~ Financial Im act Summa CI Clerk's Office Le islative Trackin Anna Parekh ~ ~ Sign-Offs: i Department Director Asslsta City Manager City Manager f AP H JMG wvcrvun~c~~auaptemvaf yV(6gUiaNVJY AwafO 2~ AgrBerl't@nt = SUMMAOC (J m MIAMIBEACH ,,,, U U ADENQA ITEM !~? K QATE q- 9_Oq