Loading...
Legal's Resolution- RESOLUTION NO. 2010-27348 A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT N0. 1 TO THE NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1) AGREEMENT, DATED JANUARY .27, 2010, BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC); SAID AMENDMENT APPROVING A ONE TIME. ONLY ASSIGNMENT IN THE OWNERSHIP OF THE MADELEINE APARTMENTS, LOCATED AT 7871-7861 CRESPI BOULEVARD, FROM MBCDC TO MBCDC: MADELEINE VILLAGE, LLC, A LIMITED .LIABILITY CORPORATION WHOSE SOLE MEMBER (AGENT) IS MBCDC (THE ACQUISITION .AND REHABILITATION OF WHICH PROPERTY IS FUNDED ~BY NSP1 FUNDS UNDER THE AFORESTATED AGREEMENT, IN THE AMOUNT OF $2,376,181.53); FURTHER APPROVING AND AUTHORIZING THE ' CITY MANAGER AND CITY CLERK TO AMEND THE MORTGAGE AND SECURITY AGREEMENT TO REFLECT THE AFORESTATED TRANSFER; AN INCREASE IN THE AFFORDABILITY PERIOD FROM FIFTEEN (15) TO THIRTY (30) YEARS; AND FURTHER ADDING A REVERTER CLAUSE IN FAVOR OF THE CITY (TO ENSURE THAT THE PROPERTY REMAINS AS AFFORDABLE HOUSING DURING THE AFFORDABILITY PERIOD, OR TITLE REVERTS TO THE CITY); AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO PREPARE THE AFORESTATED NSP1 AMENDMENT AND MODFFICATIONS TO THE MORTGAGE (AND ANY OTHER LOAN DOCUMENTS), IN ACCORDANCE WITH THE AFORESTATED TERMS. WHEREAS, on July 31, 2008, the United States Congress enacted the Housing and Economic Recovery Act of 2008, thereby creating the Neighborhood Stabilization Program. 1 (NSP1), which directed the' Department of Housirig 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 t .WHEREAS, the State of Florida received an NSP1 .allocation of $91,141,478 to provide funding to those units of local government, including the City of Miami Beach, which received $2,549,551.00 in NSP1 funds; and WHEREAS,. on March 18, 2009, the City Commission approved Resolution No. ," 2009-27039, approvingthe City's planned use of; and related application for, NSP1 funds, in the amount of $2,376,181.53, to purchase and rehabilitate, as necessary, one (1) or -more foreclosed and abandoned multi-family buildings in the City; and.; WHEREAS,. on September 9,, 2009, the City Commission adopted Resolution No. 2009-27194, which accepted the City Manager's recommendation pursuant to a City- issued Request for Proposals from qualified housing developers for qualified .projects under ..:the NSP1 Program, and authorized the Mayor and City Clerk to execute an NSP1 Agreement with MBCDC (as the sole responsive proposer), dated January 27, 2010, in the amount of $2,.376,181.53, for. MBCDC's acquisition and rehabilitation of The Madeleine Apartments; located at 7871-7861 Crespi Boulevard (the Property); and WHEREAS, MBCDC has subsequently created anot-for-profit entity, MBCDC .Madeleine Village, LLC, which, as the intended owner of the Property, is the successor in - interest to MBCDC (and which will assume all interest and title to the P,roperty); and WHEREAS, MBCDC is the sole member (agent) of MBCDC Madeleine Village, LLC; - ` . and WHEREAS, accordingly, the Administration hereby recommends that the City Commission approve. and authorize the Administration and the City Attorney's Office to prepare; respectively, an amendment to the existing NSP1 Agreement with MBCDC, as well. as an amendment to the Mortgage and Security Agreement; (and other loan documents, as required) relative to the acquisition and renovation of the Property, . providing for the following: { ~ 1. referencing the transfer in ownership of the Property from MBCDC to MBCDC Madeleine Village, LLC; 2. .changing the Affordability Period from fifteen (15), to thirty (30) years; and ' . 3. including. a reverter clause ensuring that the Property remain as .affordable housing during the Affordability Period, or'ownership reverts to the City. - NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and. authorize the Mayor and City Clerk to execute Amendment No. 1 to the Neighborhood Stabilization Program 1 (NSP1) Agreement, dated January 27, 2010, between the City and Miami Beach Community Development Corporation (MBCDC); said Amendment approving. a one time only assignment in the ownership of the Madeleine Apartments,. located at 7871-7861 Crespi Boulevard, from MBCDC to MBCDC: Madeleine Village, LLC, a limited liability corporation whose sole member (agent) is MBCDC (the acquisition and rehabilitation of which Property is funded by NSP1~ funds under the . aforestated Agreement, in the amount of $2,376,181.53); further approving and authorizing the City Manager and Cify Clerk to execute an amendment to the Mortgage and Security Agreement to reflect the aforestated transfer; an increase in the Affordability Period from fifteen (15) to thirty (30) years; and further adding a reverter clause in favor of the City (to ensure that the Property remains as affordable housing during the Affordability Period or title reverts to the City); authorizing the Administration and the City's Attorney's Office to .prepare-the aforestated NSP1 Amendment and modifications to the Mortgage (and any- other loan documents), in accordance with the aforestated terms. PASSED AND ADOPTED THIS 10th DAY. OF MARCH, 2010. ATTEST:. . CITY CLERK MA OR ` F:\RHCD\$ALL\HSG-CDWLL\NSP 1\ResoWtions\Revised Reso 2010 27348.doc i - ~ - I - } - ~ ~ - i . - - ~ - f APPROVED AS TO .FORM & LANGUAGE ~ FOt~ EXECUTION C` ttorney Date . . ~ 1 i t I } I I 1 A RI THE APPROVING THE MAYOR AND CITY CLERK TO EXECUTE NO. 1 TO THE iNE1GHBORHOOD .STABILIZATION {NSP1) AGREEMENT, DATED JANUARY 27, 2010, HE CITY AND .MIAMI BEACH COMMUNITY CORPORATION {MBCDC); SAID AMENDMENT A E TIME ONLY ASSIGNMENT IN THE OWNERSHIP OF THE MADEL INE APARTMENTS, LOCATED AT ~ 7871-7861 CRESPI BOULEVA D, FROM MBCDC TO MBCDC: MADELEINE VILLAGE, LLC, A Ll TED LIABILITY CORPORATION WHOSE SOLE MEMBER (AGENT} 1S BCDC (THE PROPERTY, ACQUISITION AND REHABILITATION OF HICH PROPERTY 1S FUNDED BY NSP1 FUNDS UNDER THE AFO ESTATE©AGREEMENT, IN THE AMOUNT OF $2,376,181.53);. FURTH APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY C ERK TO AMEND THE MORTGAGE AND SECURITY AGREEMENT T REFLECT THE AFO,RESTATED TRANSFER; AN INCREASE IN ~E AFFORDABILITY PERIOD FROM FIFTEEN (15} TO THIRTY (30} Y RS; AND FURTHER' ADDING A REVERTER CLAUSE IN FAVOR O THE CITY, {TO ENSURE THAT THE PROPERTY REMAINS AS AFFOR ABLE HOUSING DURING THE AFFORDABILITY PERIOD, OR TITLE EVERTS TO. THE CITY); AUTHORIZING THE ADMINISTRATION ND CITY ATTORNEY'S OFFICE TO PREPARE. THE AFORESTATED SP1 AMENDMENT AND MODIFICATIONS TO THE MORTGAGE (A ANY OTHER LOAN DOCUMENTS}, IN ACCORDANCE WITH THE A RESTATED TERMS. WHEREAS, on July 31, 2008, the United States Congres enacted the Housing and - Economic Recovery Act of 2008, thereby creating the Neighborho d Stabilization Program. 1 (NSP1), which directed the Department of .Housing and Urban velopment (HUD} to allocate $3.93 billion to states and units of local government as eme ~ency assistance for, the purchase and redevelopment of abandoned and foreclosed~hom, ;and WHf REAS, the State of Florida received- an NSP allocation1 0 $91,141,478 to provide funding to those units of local government, including the City o Miami. Beach, which received $2,549,551.00 in NSP funds; and WHEREAS, on March 18, 2009, the City Commission approved Res lotion No. 2.009-27039, approving the City's planned use of and related application for the N P funds, allocating $2,376,181.53 to the Miami Beach Community Develo?pment Cor ration (MBCDC) to purchase and renovate the Madeleine Apartments, located at 787 7861 Crespi Boulevard (the Property); and WHEREAS, MBCDC entered into an NSP1 Agreement with the City, dated Janua 27, 2010, in the amount of $2,376,.181.53, to secure the funding allocation for the .acquisition and renovation of the Property; and i RESOLUTION NO. 201 a-273x$ { i LUTION OF THE MAYOR AND THE CITY COMMISSION OF TY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHO ING AMENDM T PROGRAM 1 BETWEEN DEVELOPME ,, A. 1 WHEREAS, MBCDC has subsequently created anot-for-profit entity, MBCDC . Made "ne Village, LLC, which, as the intended owner of the Property, is the successor in interest.t MBCDC (and.has assumed all interest and title to the Property); and WHER S, MBCDC is the sole member (agent) of MBCDC Madeleine Village, .LLC; and. , . ~ . .,WHEREAS, cordingly, the Administration hereby recommends that the City ..Commission approve. d authorize the Administration and the City Attorney's Office to . prepare, respectively, an mendment to the existing NSP1 Agreement with MBCDC, as . well as the Mortgage and ecurity Agreement (and. other Loan Documents as required) relative to the acquisition an renovation of the Property, providing for the following: 1. an assignmen of the January 27, 2010 NSP1 Agreement from MBCDC to MBCDC Ma leine Village, LLC; 2. changing the Affo ability Period from fifteen (15), to thirty (30) years; and j . - 3. including a reverter lause ensuring that the Property remain as affordable housing dart the. Affordability Period, or ownership .reverts to the City. i , NOW, THEREFORE, BE IT RES VED BY THE- .MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEA ,FLORIDA, that the Mayor and .City Commission hereby approve and authorize the Mayor and City Clerk to execute Amendment No. 1 to the Neighborhood Stabilization ragram 1 (NSP1) Agreement, dated .January :27, 2010, befinreen the City and Miami each Community Development Corporation {MBCDC); said amendment approving a e time only assignment in the ownership of the Madeleine Apartments, located at 787 _ 7861 Crespi Boulevard, from MBCDC to MBCDC: Madeleine Village, LLC, a limited lia ~lity corporation whose sole . member (agent) is MBCDC {the property, acquisition, and reh ilitation of which Property = is funded by NSP1 funds under the aforestated. Agree nt, in the amount of . $2,376,181..53); further approving and' authorizing the City Man ger and City Clerk to amend the Mortgage and Security Agreement to reflect the afo estated transfer; an increase the Affordability Period from fifteen (15) to thirty (30) years; , d further adding a . reverter clause in favor of the City, {to ensure .that the Property rem 'ns as affordable housing during the Affordability Period or title reverts to the City); uthorizing the Administration -and the City's Attorney's Office to .prepare the ~ afor tated NSP1 Amendment and modifications to the Mortgage {and any other Loan Do uments), in accordance with the aforestated terms, G ' i PASSED AND ADOPTED THIS lam DAY OF Yncrc.L~ .j , 2010. .ATTEST: ~ C~ RdVED TO i E -. ~_ CITY. CLERK ~ ~ OR ~ OR EXECUTI ` T:WGENOA120'IOWtarch 10lConsent\Madeleine Assignment - RESO.doc { ;cry ~ G oeta ;4~a m MIAMIBEACH City of Miami Beath, 1700 Convention Cenrer Drive, Miami Beach, Florida 33139, www.miamibeachfLgov i . COMMISSION MEMORANDUM . F TO: Mayor Matti .Herrera .Bower and Members ofi the City Commission - ~ FROM: Jorge M. Gonzalez, City Manager ~., ! i RATE: March 10, 2Q1Q .. SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. .1 TO THE; NEIGHBORHOOD STABILIZATION PROGRAM 1 {NSP1) AGREEMENT, DATED JANUARY 27, 2010, BETWEEN THE CITY AND MIAMI .BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC); SAID AMENDMENT APPROVING !A ONE TIME ONLY ASSIGNMENT IN THE OWNERSHIP OF THE MADELEINE APARTMENTS, LOCATED AT 7871-7861 CRESPI BOULEVARD FROM MBCDC TO MBCDC: MADELEINE VILLAGE, LLC, A LIMITED LIABILITY CORPORATION WHOSE SOLE MEMBER (AGENT) IS MBCDC (THE PROPERTY, ACQUISITION AND REHABILITATION OF .WHICH PROPERTY IS FUNDED BY NSP1 FUNDS UNDER THE AFORESTATED AGREEMENT, IN THE AMOUNT OF $2,376,181.53); FURTHER APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO AMEND THE MORTGAGE AND SECURITY AGREEMENT TO REFLECT THE AFORESTATED TRANSFER; AN INCREASE IN THE AFFORDABILITY PERIOD FROM FIFTEEN {15) YEARS TO THIRTY (30) YEARS; AND FURTHER ADDING A REVERTER CLAUSE IN FAVOR OF THE CITY, {TO ENSURE THAT THE PROPERTY REMAINS AS AFFORDABLE HOUSING DURING .THE AFFORDABILITY PERIOD OR TITLE.. REVERTS TO THE - CITY); AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO PREPARE THE AFORESTATED NSP1 AMENDMENT AND MODIFICATIONS TO THE MORTGAGE {AND ANY OTHER LOAN DOCUMENTS), IN ACCORDANCE WITH THE AFORESTATED TERMS. { ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND ! On March 18, 2009 the City Commission approved Resolution 2009-27039 approving The City's application for Neighborhood Stabilization Program 1 (NSP1) funds, in the amount of $2,549,551, to purchase and rehabilitate, as necessary, one or more foreclosed or abandoned multi-family buildings in the City of Miami Beach (as determined. by the City's greatest need). These buildings, once acquired are to be made available as rental properties for income qualified households in accordance with NSP1 rules, as promulgated by the Florida Department of Community Affairs and the United Stated Department Housing and Urban Development. ~ Y~k~ MBCDC/Madeleine Apartments Assignmenf .March 10, 2010 Page 2 following a competitive process, on September 9, 2009, the City Commission approved the selection of MBCDC as the project sponsor to acquire, rehabilitate, and rent a 16-unit building at _7871 Crespi Boulevard, Miami Beach, for income-eligible persons. A contract for NSP1 funding was executed' between the City and the State of Florida's Department of Community Affairs on September 30, 2009; a contract to allocate the funding for the eligible project was executed between the City and MBCDC on January 27, 2010. MBCDC closed the acquisition transaction on January 29, 2010. As is customary for every project MBCDCdevelops, and similarly typical'for many affordable housing projects, a separate ownership entity was created. to the case of The Madeleine Apartments, MBCDC Madeleine Village, .LLC, a Florida not-for-profit limited. liability company, was created to own the property, However, as funding allocations had been awarded to MBCDC, (which is the sole member of MBCDC Madeleine Village, LLC), an assignment of the January 27, 2010, NSP1 Agreement from MBCDC, Inc. to MBCDC Madeleine Village,. LLC, is necessary. Furthermore, following the closing, MBCDC and the Administration agreed to extend the Affordability Periiod from fifteen (15) years (as required by the State of Florida} to thirty (30) years, and~to add a reverter clause ensuring that, if the property is not kept as affordable housing during the Affordability Period, title will revert to the City of Miami Beach. ANALYSIS A one-time assignment of the January 27, 2014 Agreement from MBCDC to MBCDC Madeleine Village, LLC, as well as amendments to the NSP1 Agreement and Mortgage (and other Loan Documents), are necessary'in order to ensure the City is contracting directly with the legal owner of the property in question. Furthermore, while the State NSP1 rule requires a minimum affordability period of fifteen (15}years, the City and MBCDC have agreed to extend the affordability period to thirty (30}years: Therefore, the extension of the Affordability Period will also be memorialized in the. Mortgage and.. other Loan Documents, and a provision wit! be added to the documents so that ownership of the property will revert to the City in the event the property is not used as affordable housing during the Affordability Period. CONCLUSION The Admiristration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve and authorize the Mayor and City Clerk to execute Amendment No. 1 to the Neighborhood Stabilization Program 1 (NSP1 }Agreement, dated January 27, 2010, between the City. and Miami Beach Community Development Corporation. (MBCDC),.allowing aone-time-only assignment in the ownership of the Madeleine Apartments, located at 7871--7861 Crespi Boulevard - from MBCDC to MBCDC: Madeleine Village, LLC, a .limited liability corporation whose sole member . -{agent) is MBCDC. It is also recommended that the Commission approve and authorize an , amendment to increase the Affordability Period from fifteen (15) years to thirty (30} years, and adding a reverter clause in favor of the City, to ensure that the property remains as affordable housing during the Affordability Period. JMG/HMFiAP/i-s T:~AGENDA~20101March 101ConsentlMadeleine Assignment Memo.doc COMMISSION ITEM SUMMARY condensed ~ Itle: A resolution of the Mayor and City Commission of the City of Miami $each, Florida, approving and authorizing the Mayor and City Clerk to execute Amendment Na. 1 to the Neighborhood Stabilization Program 1 (NSP1 }Agreement, dated January 27, 2010, between the City and Miami Beach Community Development Corporation (MBCDC); said amendment approving a one time only assignment in the ownership of the Madeleine Apartments, located at 7871-7861 Crespi Boulevard from MBCDC to MBCDC: Madeleine Village, LLC, a limited liability corporation whose sole member (agent} is MBCDC (the property, acquisition .and rehabilitation of which property is funded by NSP1 funds under the aforestated Agreement, in the amount of $2,376;181.53); further approving and authorizing the City Manager and City Clerk to amend the mortgage and security agreement to reflectthe aforestated transfer; an increase in the Affordability Period from fifteen (15) years to thirty {30}years; and further adding a reverter clause in favor of the City; authorizing the Administration and City Attorney's office to prepare the aforestated NSP1 amendment and modifications to'the mortgage {and any other Loan Documents}, in accordance with the aforestated terms. Ke Intended Outcome Su orted: - Increase access to workforce or affordable housing • Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 Customer Satisfaction Survey, ffordable housing was a concern for 52.5% of those surveyed.. Issuer Shall the January 27, 2010, NSP1 Agreement with MBCDC be assigned to MBCDC Madeleine Village, LLC, a not for profit ownership-entity created by MBCDC as successor in interests? Should the mortgage and any other Loan Documents be amended tv reflect an increase in the Affordability Period from fifteen (15) years to thirty (30) years, and should a reverter clause be added assuring that if the property is not used'as affordable housing during the Affordability Period, ownership wil! revert to the Citv? mmendation: On March.18, 2009, the City Commission approved Resolution 2009-27039, approving the City's planned use of and related application for Neighborhood Stabilization. Program 1 {NSP1) funds, in the amount of $2,549,551, to purchase and rehabilitate, as necessary, one or more foreclosed or abandoned multi-family buildings in the City of Miami Beach. The NSP1 application included an allocation of $2,376,181.53 to the Miami Beach Community Development Corporation (MBCDC) to purchase and renovate the Madeleine Apartments; MBCDC entered into an NSP1 Agreement with the City, on January 27, 2010, in the amount of $2,376,181.53 to secure the funding allocation. On January 29, 201.0, the Madeleine Apartments,located at 7871 -7861 Crespi Boulevard, was purchased by MBCDC to provide 16 units of affordable housing to very low income persons. As is customary for every development project by MBCDC,. and. similarly typical for many affordable housing projects, a separate ownership entity is created. In the case of The Madeleine Apartments, MBCDC Madeleine Village, LLC,. a Florida not-for-profit limited liabilitycompany, whose sole member (agent) is MBCDC, was created to own the property.. However, as funding allocations were awarded to MBCDC, a not for profit Florida corporation, prior to the acquisition and creation of the LLC, an assignment of the January 27, 2010, NSP1 Agreement from MBCDC, to MBCDC Madeleine Village, LLC, is necessary to ensure the City is contracting directly with the legal owner of the property in question. Furthermore, subsequent to the closing, MBCDC and the Administration - agreed to extend the Affordability Period from 15 years to 30 years and to add a reverter clause to ensure the property •remains as affordable housing during the Affordability Period. It is recommended that the Commission approve the resolution. Advisory Board Recommendation: F financial Information: Source of Amount.. Account Funds:. 1 N/A 2 3 OBPI Total Financial Impact Summary: Ci Clerk's Office -Anna Parekh, Direct Sian-Offs: Estate and Housing Development :Department Director As stant ity Manager City Manager AP JMG ~ _J ~r Y 1 I~ ~~~ 1 1 AGENQA IT ~ 7 ~~ DATE .3 /O lU