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98-22980 RESO RESOLUTION NO. 98-22980 A RESOLUTION OFiHE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH MIAMI BEACH COMMUNITY DEVELOPMENT CORPORA TION (MBCDC), COMMITTING FUNDS PREVIOUSLY ALLOCATED BY THE CITY TO MBCDC IN THE AMOUNT OF SEVEN HUNDRED EIGHTY-SEVEN THOUSAND EIGHT HUNDRED DOLLARS ($787,800), FROM THE CITY'S HOME PROGRAM ALLOCATION FROM FISCAL YEARS 1997/98 AND 1998/99 FOR ELIGIBLE COMMUNITY HOUSING DEVELOPMENT PROJECTS. WHEREAS, on February 18, 1992, the City was designated by the u.s. Department of Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funding through the HOME Investment Partnerships (HOME) Program; and WHEREAS, the intent of the HOME Program is to expand the supply of housing for income-eligible households and to encourage collaboration with the private sector and not-for-profit housing providers; and WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No, 93-20756, designating Miami Beach Community Development Corporation as a Community Housing Development Organization (CHDO); and WHEREAS, in accordance with the HOME Program regulations, the City must reserve a minimum of fifteen (15) percent of each fiscal year's HOME allocation for a CHDO set-aside for investment in housing to be developed, sponsored or owned by CHDOs; and WHEREAS, on July 2,1997, the Mayor and City Commission adopted Resolution No. 97- 22453 approving the One-Year Action Plan for 1997/98 Federal funds, including the fiscal year 1997/98 budget allocation for the HOME Program CHDO project set-aside; and WHEREAS, on July 1, 1998, the Mayor and City Commission adopted Resolution No. 98- 22814 approving the One- Year Action Plan for 1998/99 Federal funds, including the fiscal year 1998/99 budget allocation for the HOME Program CHDO project set-aside; and WHEREAS, the Administration recommends that the Mayor and City Commission approve and authorize the Mayor and City Clerk to execute the attached HOME Program agreement with Miami Beach Community Development Corporation. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF mE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are hereby authorized to execute the attached HOME Investment Partnerships (HOME) Program agreement with Miami Beach Community Development Corporation (MBCDC), committing funds previously allocated by the City to MBCDC in the amount of Seven Hundred Eighty-Seven Thousand Eight Hundred Dollars ($787,800) from the City's HOME Program allocation from fiscal years 1997/98 and 1998/99 for eligible Community Housing Development Organization projects. PASSED AND ADOPTED THIS 2nd DAY OF December , 1998 ATTEST: _~,~~ k CITY CLERK ~A MAYOR F BS MBDClFUNDRESV RES APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~ lJIN /q( Dot8 CITY OF MIAMI BEACH ~ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 lttp:\\ci.miami-beach. f1.us COMMISSION MEMORANDUM NO. 665-98 TO: Mayor Neisen O. Kasdin and Members of the City C DATE: December 2, 1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESO ON OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH MIAMI BEACH COMMUNITY DEVELOPMENT CORPORA TION (MBCDC), COMMITTING FUNDS PREVIOUSLY ALLOCATED BY THE CITY TO MBCDC IN THE AMOUNT OF SEVEN HUNDRED EIGHTY-SEVEN THOUSAND EIGHT HUNDRED DOLLARS ($787,800) FROM THE CITY'S HOME PROGRAM ALLOCATION FROM FISCAL YEARS 1997/98 AND 1998/99 FOR ELIGmLE COMMUNITY HOUSING DEVELOPMENT ORGANIZA TION PROJECTS. ADMINISTRA TION RECOMMENDATION Adopt the Resolution. BACKGROUND The City has received an annual allocation of HOME Investment Partnerships (HOME) Program funds from the U.S, Department of Housing and Urban Development (HUD) since fiscal year 1992/93. The HOME Program encourages collaboration between the government and the private sector, including for-profit and not-for-profit organizations, to acquire, construct, or rehabilitate housing for income-eligible persons, The HOME Program requires the City, in its capacity as a participating jurisdiction, to reserve a minimum of 15 percent of its annual allocation for a particular type of not-for-profit called a Community Housing Development Organization (CHDO). In 1993, the City designated Miami Beach Community Development Corporation (l'ABCDC) as a CHDO, The CHDO is required to utilize the HOME Program funds for the development of housing in which the CHDO is the owner, sponsor or developer of the housing. ANALYSIS The HOME Program requires the City to commit funds within 24 months after receiving the annual AGENDA ITEM DATE c..lC 12-'2--~ COMMISSION MEMORANDUM PAGE 2 allocation. In order to commit the funds to the ClIDO, the City first allocates the funds and then enters into a HOME Program agreement with the ClIDO for eligible activities. On July 2, 1997, the City adopted the One-Year Action Plan for fiscal year 1997/98 including an allocation of $187,800 to MBCDC for eligible ClIDO activities. On July 1, 1998, the City adopted the One- Year Action Plan for fiscal year 1998/99 including an allocation of $600,000 to MBCDC for eligible ClIDO activities. These two allocations are being combined into one HOME Program agreement which commits funding in the amount of$787,800, In accordance with the HOME Program regulations, under the terms of the HOME Program agreement, the ClIDO can utilize up to ten percent of the funds, or $78,780, for eligible project- specific pre-development costs, including technical assistance, site control and seed money. In this manner, MBCDC can select a building and gain site control. Once a specific building has been identified, the agreement also requires the ClIDO to submit the proposed site and transaction information to the City to be reviewed and presented to the Loan Review Committee for recommendation. The City Commission will have the final decision on site approval. CONCLUSION The Administration recommends that the Mayor and City Commission adopt a Resolution authorizing the Mayor and City Clerk to execute the attached HOME Investment Partnerships (HOME) Program agreement with Miami Beach Community Development Corporation (MBCDC), committing funds previously allocated by the City to MBCDC in the amount of Seven Hundred Eighty-Seven Thousand Eight Hundred Dollars ($787,800) from the City's HOME Program allocation from fiscal years 1997/98 and 1998/99 for eligible Community Housing Development Organization projects. SRlC~~remS F mbdc:fundresv, me2 HOME PROGRAM AGREEMENT THIS AGREEMENT, entered into this;l"'~ay of~""W998 by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, (hereinafter referred to as the City), and the MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, a not-for-profit Florida corporation, with offices located at 1205 Drexel Avenue, Miami Beach, Florida (hereinafter referred to as MBCDC). WITNESSETH: WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of Housing and Urban Development (HUD) as a Participating Jurisdiction for the receipt of funds through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and WHEREAS, the City has entered into an agreement with HUD for the purpose of conducting an affordable housing program with federal financial assistance under the HOME Program; and WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified Community Housing Development Organization (CHDO) under the HOME Program; and WHEREAS, in accordance with the HOME Program regulations, the City must commit a minimum of fifteen percent of each fiscal year's HOME allocation for a CHDO set-aside for investment in housing to be developed, sponsored or owned by CHDOs; and WHEREAS, on July 2, 1997, the Mayor and City Commission adopted Resolution No, 97-22453 approving the One-Year Action Plan for 1997/98 Federal funds which included an allocation ofCHDO set- aside funds; and WHEREAS, on July 1, 1998, the Mayor and City Commission adopted Resolution No. 98-22814 approving the One-Year Action Plan for 1998/99 Federal funds which included an allocation ofCHDO set- aside funds; and WHEREAS, MBCDC warrants and represents that it possesses the legal authority to enter into this agreement, by way of a resolution, motion, or similar action that has been duly adopted or passed as an official act of the MBCDC governing body, authorizing the execution of this agreement, including all understandings and assurances contained herein, and authorizing the person identified as the official representative of MBCDC to act in connection with this agreement and to provide such additional information as may;~~reqp:i.red; and 0' c<; WHEREAS, it is acknowledged and agreed that funds to be granted to MBCDC dedye fro~~F e~al funds appropriated to the City by HUD for the uses and purposes herein referred to and, accordiij.gly,:~~ is acknowledged and agreed that this agreement is entered into in compliance by the parties with all applicfaThle provisions of Federal, State and local laws, statutes, rules and regulations. ---J -~ "-' .') 1 NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: ARTICLE I DEFINITIONS As used in this agreement the terms listed below shall have the following meanings: (a) HOME: HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended. (b) HUD: u.s. Department of Housing and Urban Development or any successor agency. (c) CHDO: Community Housing Development Organization as defined in the HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended. (d) Funds: HOME Program funds, (e) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92, September 16, 1996, and any amendments thereto: Any term defined in the HOME Investment Partnerships Program, Final Rule, not otherwise defined in this agreement, shall have the meaning set forth in said Rule. ARTICLE II ALLOCA TION OF HOME FUNDS In accordance with the Scope of Services (Exhibit A) attached hereto, the City agrees to reserve funds for projects to be developed, sponsored or owned by MBCDC in its capacity as the city's designated community housing development organization (CHDO) under the HOME program. The City agrees to reserve funds in the amount of Seven Hundred Eighty Seven Thousand Eight Hundred ($787,800) (Funds) consisting of: (a) One Hundred Eighty Seven Thousand Eight Hundred Dollars ($187,800) from the city's fiscal year 1997/98 HOME allocation; and (b) Six Hundred Thousand Dollars ($600,000) from the city's fiscal year 1998/99 HOME allocation. ARTICLE III HOME AGREEMENT DATED SEPTEMBER 14 . 1998 That certain HOME Program CHDO Operating agreement executed September 14, 1998 between the City and MBCDC is incorporated herein by reference. ARTICLE IV SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM MBCDC expressly agrees to the following: (a) It will execute Project agreement(s) with the City in order to commit the Funds to specific eligible CHDO projects. The City, at its sole discretion, may require commitment of the Funds within a time period that is in the best interest of the City in order to avoid recapture of the Funds by HUD. 2 (b) It will maintain a financial management system that conforms to the financial accountability standards of24 CFR 84.21, "Standards for Financial Management Systems," ( c) The Funds must be provided to MBCDC, its subsidiary or a partnership of which it or its subsidiary is the managing general partner. IfMBCDC owns a project in partnership, it or its wholly owned for -profit or non-profit subsidiary must be the managing general partner. In acting in any of the capacities specified, MBCDC must have effective project control. (d) Up to 10% of the Funds reserved herein may be used for project-specific assistance in accordance with 24 CFR S 92.301 and the Scope of Services (Exhibit A), Project-specific assistance provided to MBCDC shall be repayable from construction loan proceeds or other project income, except if there are impediments to project development reasonably beyond the control ofMBCDC. ARTICLE V METHOD OF PAYMENT (a) MBCDC shall be paid for eligible costs permitted under the Scope of Services (Exhibit A), based on anticipated or actual costs, with supportive documentation for expenses that are considered reasonable and necessary and approved by MBCDC's authorized representative. (b) Any payment due under the terms of this agreement may be withheld pending the receipt 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 or any amendments thereto. (c) MBCDC understands and agrees that disbursement of funds under this agreement are only to be requested when the Funds are needed for payment of eligible activities, in accordance with 24 CFR S92,301. (d) The City desires to enter into this agreement only if in so doing it can retain the right of approval over the disbursement of HOME funds for the individual real estate transactions contemplated herein. MBCDC shall be required to submit all necessary documentation relative to the aforestated transactions to the City's CommunitylEconomic Development Department for review at a minimum of forty-five (45) days prior to the expected disbursement of HOME funds for the individual transactions. (e) The City shall be immediately notified, in writing, if a project or site transaction is terminated, whether voluntarily by MBCDC or otherwise. Except as provided in 24 CFR S92.301 (a)(3) and (b)(3), a HOME assisted project that is terminated before completion is an ineligible activity and any HOME funds invested in the project must be repaid to the City in accordance with 24 CFR S92.503(b). ARTICLE VII TERM OF AGREEMENT This agreement shall become effective upon approval of the Miami Beach City Commission and shall continue until September 30, 2000. 3 ARTICLE VIII NOTICES All notices shall be sent to the parties at the following addresses, with copies to the Office of the City Attorney: City: Christina M. Cuervo, Assistant City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 MBCDC: Denis Russ, President Miami Beach Community Development Corporation 1205 Drexel Avenue Miami Beach, FL 3313 9 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized officials on the day and date first above indicated. MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, a Florida not-for-profit corporation Secretary President ATTEST: J/Ju ATTEST: CITY OF MIAMI BEACH a Florida Municipal corporation ~rf~ City Clerk I ~ ifj't6' 11/1' Mayor f:bs:MBCDC :9798fund,res APPROVED AS TO FORM & lANGUAGE & FOR EXeCUTION ~ LVo1i%l 4 EXHIBIT A SCOPE OF SERVICES CHDO Reservation of Funds HOME program funds in the amount of $787.800 are reserved for investment in affordable housing to be developed, sponsored or owned by MBCDC, the city's designated CHDO. Upon approval of and execution of this agreement, MBCDC shall be entitled to access ten percent of the Funds, $78.780, for Project Specific Technical Assistance and Site Control Loans and Project Specific Seed Money Loans. Funds accessed will be utilized by MBCDC in a manner consistent with the city's approved Action Plans for Federal Funds for fiscal years 1997/98 and 1998/99. The remaining balance of the Funds shall be available only upon approval of the project(s) by the Miami Beach City Commission and execution of written project agreement(s). Implementation Project-specific technical assistance and site control loans and project-specific seed money loans shall be available to MBCDC upon the review and approval of the City Manager or his designee of the proposed project(s). MBCDC shall assure that all earnest money deposits shall be refundable and subject to inspection and funding contingencies, which will provide the City and its Loan Review Committee time and opportunity to review each specific project site and transaction. Upon Loan Review Committee approval, a project agreement shall be prepared and forwarded to the Miami Beach City Commission for consideration, Term of Agreement Total funds in the amount of $787,800 are reserved as follows: 1. Fiscal year 1997/98 CHDO set-aside funds in the amount of$187,800 are reserved until September 30, 1999 for investment in HOME projects to be developed, sponsored or owned by MBCDC in its capacity as a CHDO. In accordance with 24 CFR 992,301, ten percent of the funds, $18,780, may be used for pre- development loans as summarized in the table below. 2. Fiscal year 1998/99 CHDO set-aside funds in the amount of $600,000 are reserved until September 30, 2000 for investment in HOME projects to be developed, sponsored or owned by MBCDC in its capacity as a CHDO. Ten percent of the funds, $60,000, may be used for pre-development loans as summarized in the table below. Use of Funds (1) HOME funds used for project-specific pre-development must be expended in accordance with 24 CFR 992.301. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 per HOME-assisted unit. The maximum amount of HOME funds that may be invested in a project involving rental housing or homeownership may not exceed the per-unit dollar limits established under section 221 (d)(3) of the National Housing Act that apply to the area in which the housing is located (Exhibit B), and which may be amended from time to time. 5 (2) Before committing funds to a project, the City shall evaluate the project in accordance with adopted guidelines. The City shall not invest any more HOME funds, in combination with other governmental assistance, than is necessary to provide affordable housing. PROJECT SPECIFIC PRE-DEVELOPMENT LOANS Technical Assistance and Site Seed Money Loans Control Loans Purpose Establish preliminary feasibility of a Covers pre-construction cost for a specific project specific project Timing U sed prior to gaining site control Must have site control, preliminary financial commitments and capable development team Uses Limited to customary and Preconstruction costs, including but reasonable costs of: not limited to: * Initial feasibility study * Cost of construction loan * Consulting fees commitments * Costs of preliminary financial * Architectural plans and application specifications * Fees: architects, legal, * Costs of zoning approvals engineers, development team * Costs of engineering studies * Site control expenses * Legal fees * Title clearance costs Form of Loan, amortizing or non-amortizing Loan, amortizing or non-amortizing Assistance at discretion of the City at discretion of the City Repayment Repaid from construction loan or Repaid from construction loan or other project income. May be other project income. May be waived if there are impediments to waived if there are impediments to project development or if project is project development or if project is deemed infeasible deemed infeasible. Environmental Environmental clearance is not Requires environmental clearance Clearance required prior to expenditure of prior to commitment of funds. funds, 6 EXHIBIT B HOME PROGRAM MAXIMUM PER-UNIT SUBSIDY LIMITS Location OBR 1BR 2BR 3BR 4BR Dade County 60,180 68,984 83,884 108,517 119,119 source: 221(d)(3) maximum mortgage limits. elevator bs: f:mbdc:9798fnnd,agr 7