2011-27597 Reso RESOLUTION NO. 2011 -27597
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A SECOND AMENDMENT TO THE
FISCAL YEAR 2009/2010 HOME PROGRAM AGREEMENT BETWEEN THE CITY
OF MIAMI BEACH AND THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION TO RE- ALLOCATE $223,786 FROM THE MERIDIAN PLACE
APARTMENTS PROJECT, LOCATED AT 530 MERIDIAN AVENUE, AND $200,000
FROM THE BARCLAY APARTMENTS PROJECT, LOCATED AT 1940 PARK
AVENUE, FOR A TOTAL OF $423,786, TO THE ALLEN HOUSE APARTMENTS
PROJECT, LOCATED AT 2001 WASHINGTON AVENUE, SUBJECT TO THE
COMPLETION OF AN UNDERWRITING REVIEW.
WHEREAS, the City is an entitlement recipient of Community Development Block Grant
(CDBG) funds, and HOME Investment Partnerships (HOME) funds; and
WHEREAS, the City expects to continue to receive entitlement funds from these grant
programs to operate the City's housing and community development activities; and
WHEREAS, the City is required to set -aside a minimum of fifteen percent (15 %) of its HOME
funds allocation to a qualified Community Housing Development Organization (CHDO), but is
allowed to set -aside more; and
WHEREAS, Fiscal Year 2009 -2010 HOME funds in the amount of $1,073,786 were
allocated to the City's certified CHDO, Miami Beach Community Development Corporation
(MBCDC), for eligible activities, such as acquisition and rehabilitation of multi -unit residential
properties for low and moderate - income persons, families, and seniors; and
WHEREAS, on March 29, 2010, the City and MBCDC entered into a HOME Program
Agreement whereby the City agreed to provide a grant in the amount of $1,073,786 for specific
affordable housing projects; and
WHEREAS, on May 20, 2010, the City and MBCDC entered into a First Amendment to said
HOME Program Agreement, identifying different project priorities and re- allocating project specific
funding; and
WHEREAS, the City and MBCDC now wish to enter into a Second Amendment to the HOME
Program Agreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
a Second Amendment to the Fiscal Year 2009/2010 HOME Program Agreement between the City of
Miami Beach and the Miami Beach Community Development Corporation to re- allocate $223,786
from the Meridian Place Apartments Project, located at 530 Meridian Avenue, and $200,000 from
the Barclay Apartments Project, located at 1940 Park Avenue, for a total of $423,786, to the Allen
House Apartments Project, located at 2001 Washington Avenue, subject to the completion of an
underwriting review.
PASSED and ADOPTED this Pit- day of F hew 2011.
ATTEST:
POUL (.6'\ —)--7fie---ivi0Z)Z
C / AYOR i14-
ROBERT PARCHER MATTI HERRERA BOWER
APPROVED AS TO
FORM :, ANGUAGE
& FO, / EXECUTION
ASh )11 IP
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving an amendment to the FY 2009/2010 HOME Program Agreement between the City and Miami Beach Community
Development Corporation to re- allocate $223,786 from the Meridian Place Apartments project, located at 530 Meridian Avenue, and
$200,000 from the Barclay Apartments project, located at 1940 Park Avenue, for a total of $423,786, to the Allen House Apartments
project, located at 2001 Washington Avenue, subject to the completion of an underwriting review.
Key Intended Outcome Supported:
Increase access to workforce or affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 Customer Satisfaction Survey, 17.5% of businesses feel
that lack of workforce housing is one of their most important challenges.
Issue:
Shall the City re allocate affordable housing funds from the Meridian Place and the Barclay projects to the Allen House project?
Item Summary/Recommendation:
On July 15, 2009, the City Commission adopted Resolution No. 2009 -27116 approving the FY 2009/2010 Annual Action Plan. FY
2009/2010 HOME /CHDO funds in the amount of $1,073,786 were allocated to MBCDC to fill existing project funding gaps in affordable
housing projects currently under development. Two (2) projects were identified as priority projects. The first was Meridian Place, located
at 530 Meridian Avenue, originally a 70 -unit transient hotel building, which has been redesigned as a 34 -unit affordable rental housing
building for formerly homeless elderly residents. The second project identified was the London House Apartments, located at 1965 -1975
Washington Avenue, a 55 -unit rental apartment building, which is being redesigned as 33 units of workforce housing, including one, two,
and three - bedroom apartments.
Prior to the execution of a contract for the funds between the City and MBCDC, a project with a funding gap that presented a higher
priority was identified. That project is the Neptune Apartments, a 16 -unit apartment project, located at 1632 Meridian Avenue purchased
with NSP1 funds and under a tight expenditure and implementation timeline. As a result a Contract Agreement with MBCDC was
executed (March 29, 2010) allocating $650,000 to the Neptune Apartments for renovations, and $423,786 to Meridian Place.
Subsequent to the execution of the original contract, a fourth priority project was identified. That project is the Barclay Apartments, a 66-
unit occupied apartment located at 1940 Park Avenue. Therefore, a first contract amendment to the Agreement was drawn up and
executed (May 20, 2010) re- allocating and reducing the funding for Meridian Place from $423,786 to $223,786; and the balance,
$200,000, to the Barclay Apartments.
While all three projects are currently under development, based on the current project status of the Allen, MBCDC is requesting re-
allocation of the entire $423,786 from Meridian Place and the Barclay Apartments to the Allen House Apartments. This will fill 100% of
the funding gap needed to complete this project and make these units available to eligible low income persons. MBCDC has identified
alternative funding sources for the Meridian and Barclay projects.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
OBPI Total
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
Anna Parekh x:7260
Sign - Offs:
Department Director A f: C AN , A M. • : Ci M. • • er
AP H F . � %� 1%� T vrierwr is
AGENDA ITEM J G , 7 �/
MIAMIBEACH DATE a-9`1/
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera -Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 9, 2011
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING A SECOND AMENDMENT TO THE FY 2009/2010 HOME
PROGRAM AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION TO RE- ALLOCATE $223,786
FROM THE MERIDIAN PLACE APARTMENTS PROJECT, LOCATED AT 530 MERIDIAN
AVENUE, AND $200,000 FROM THE BARCLAY APARTMENTS PROJECT, LOCATED AT
1940 PARK AVENUE, FOR A TOTAL OF $423,786, TO THE ALLEN HOUSE
APARTMENTS PROJECT, LOCATED AT 2001 WASHINGTON AVENUE; SUBJECT TO
THE COMPLETION OF AN UNDERWRITING REVIEW.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City of Miami Beach is a HUD - designated entitlement city and receives funding as determined
by a statutory formula based on the decennial census information. There are several objective
measures that are used in this calculation, including population growth lag, age of housing stock,
housing overcrowding, and extent of poverty. The City of Miami Beach has been a Community
Development Block Grant (CDBG) entitlement city since 1975. The HOME Program, also funded by
HUD, was started in 1992 to provide funding specifically for affordable housing. HUD allocates these
funds to strengthen public /private partnerships and to expand the supply of decent, safe, sanitary,
and affordable housing for very low- income families.
As an entitlement city, the City of Miami Beach qualifies for an annual allocation of federal funding
under these HUD programs. The uses of the annual HUD allocation of funds to the City are outlined
in the One -Year Action Plan, which is a component of the Five -Year Consolidated Plan. HOME funds
have been used for affordable rental housing activities and first time homeownership opportunities.
For FY 2009/2010, HUD allocated $1,263,276 in HOME Program funds to the City of Miami Beach.
The City is required to set aside a minimum of 15% of its HOME allocation to a qualified Community
Housing Development Organization (CHDO), but is allowed to set aside more. HOME funds are
primarily allocated to the City's only certified CHDO, Miami Beach Community Development
Corporation (MBCDC), for eligible activities such as acquisition and rehabilitation of multi -unit
residential properties for low and moderate - income individuals, families and seniors. HOME funds
also provide allowable administrative funds for the CHDO, as well as overall program administration
funding for the City's Housing and Community Development staff.
Commission Memorandum
HOME transfer to the Allen
February 9, 2011
Page 2 of 2
On July 15, 2009, the City Commission adopted Resolution No. 2009 -27116 approving the FY
2009/2010 Annual Action Plan. Fiscal Year 2009/2010 HOME /CHDO funds in the amount of
$1,073,786 were allocated to MBCDC to fill existing project funding gaps in affordable housing
projects currently under development. While the projects to receive the funding were not identified
specifically in the Action Plan filed with HUD, at the time of approval by Commission, two (2) projects
were identified as priority projects for this funding. The first was Meridian Place, located at 530
Meridian Avenue, originally a 70 -unit transient hotel building which has been redesigned as a 34 -unit
affordable rental housing building for formerly homeless elderly residents. The second project
identified was the London House Apartments, located at 1965 -1975 Washington Avenue, a 55 -unit
rental apartment building, which is being redesigned as 33 units of workforce housing, including one,
two, and three - bedroom apartments.
However, prior to the execution of a contract for the funds between the City and MBCDC, a project
with a funding gap that presented a higher priority was identified. That project was the Neptune
Apartments, a 16 -unit apartment project, located at 1632 Meridian Avenue, purchased with NSP1
funds and under a tight expenditure and implementation timeline. A Contract Agreement with
MBCDC was executed (March 29, 2010) allocating $650,000 to the Neptune Apartments for
renovations, and $423,786 to Meridian Place.
Subsequent to the execution of the original contract, a fourth priority project was identified. That
project is the Barclay Apartments, a 66 -unit occupied apartment located at 1940 Park Avenue.
Therefore, a first contract amendment to the Agreement was drawn up and executed (May 20, 2010)
re- allocating and reducing the funding for Meridian Place from $423,786 to $223,786; and the
balance, $200,000, to the Barclay Apartments.
Based on construction delays and increased project expenses, MBCDC is requesting re- allocation of
the entire $423,786 from Meridian Place and the Barclay Apartments to the Allen House Apartments.
MBCDC reports the Allen House project as having a funding gap in order to reach completion, which
can occur as early as February, 2011.
The Allen House Apartments project has been in progress for approximately three years. Per the
request of MBCDC, costs have escalated due to change orders resulting from the permitting
process. Such changes included: changes to the fire alarm system, fire sprinkler system, fire walls,
electrical system, HVAC system, plumbing systems, roofing, and certain finishes related to the
flooring and walls. Additionally, there were unanticipated costs associated with the cost of providing
payment and performance bonds, and also the administrative costs of managing the project for three
years instead of the originally estimated twelve -to- eighteen months.
Given the extended construction timeframe and the increased costs, a project underwriting review
will be updated prior to and in support of this funding request.
CONCLUSION
Administration agrees with MBCDC in its assessment of the priority of the Allen House Apartments
project. Therefore, it is recommended that the Mayor and City Commission approve the attached
resolution.
JMG /HF /AP /ARB
T:\Agenda\2011 \2 -9 -2011 \HOME transfer to the Allen Comm. Memo