2014-28550 Reso RESOLUTION N
O 201428550
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, CANCELLING THE REQUEST FOR
PROPOSALS (RFP) FOR $195919363 OF AVAILABLE RECAPTURED
HOME PROGRAM FUNDS, AS APPROVED AT THE JANUARY 15,
2014 CITY COMMISSION MEETING PURSUANT TO RESOLUTION
NO. 2014-28476; AND ALLOCATING SAID FUNDS TOWARD THE
REHABILITATION COSTS OF THE CITY'S LONDON HOUSE
APARTMENTS PROJECT.
WHEREAS, on January 15, 2014, the City Commission approved Resolution No. 2014-
28476, authorizing the City Manager to issue an RFP for recaptured HOME Investment
Partnership (HOME) funds (the RFP); and
WHEREAS, on February 5, 2014, the RFP was issued, with a submittal deadline of
March 6, 2014; and
WHEREAS, two (2) proposals were received, but no evaluation, recommendation, or
award of funds has yet been made; and
WHEREAS, on February 12,.2014, the City Commission approved and authorized the
City Manager to purchase the London House Apartments from Miami Beach Community
Development Corporation (MBCDC); and
WHEREAS, on March 13, 2014, the City closed on the purchase of the London House
Apartments; and
WHEREAS, after a City consultant's evaluation of the construction required to complete
the rehabilitation of the London House, it was estimated that the cost could reach $4.1 million;
and
WHEREAS, $1,256,708 of the recaptured HOME funds had originally been awarded to
MBCDC for rehabilitation of the London House Apartments; and
WHEREAS, the City must complete the rehabilitation and will need to apply the aforestated HOME funds toward the construction costs and
d
WHEREAS, cancelling the RFP and allocating the funds toward the London House
Apartments project is in the best interest of the City, and is in compliance with HOME Program
requirements.
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 cancel the Request for Proposals (RFP) for $1,591,363 of available
recaptured HOME Program funds, as approved at the January 15, 2014 City Commission
meeting pursuant to Resolution No. 2014-28476; and allocating said funds toward the
rehabilitation costs of the City's London House Apartments project.
PASSED AND ADOPTED this o93 day of Aprl' , 2014.
ATTEST:
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CITY CL RK ` F MAY R %
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APPROVED AS TO
FORM &LANGUAGE
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0 rne Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission cancelling the Request for Proposals (RFP) for $1,591,363 of available
recaptured HOME Program funds, as approved at the January 15, 2014 City Commission meeting pursuant to Resolution No.
2014-28476; and allocating said funds toward the rehabilitation costs of the City's London House Apartments project._
Key Intended Outcome Supported:
Select Suitable Areas For Provision of Workforce Housing for Key Industry Workers
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2012 Community Satisfaction Survey, 80% of
residents believe the City's standard of living is good and improving. 33% of businesses rated the lack of affordable
housing in Miami Beach for their labor force as their most important challenge.
Item Summa /Recommendation:
At its January 15, 2014 meeting, the City Commission approved and adopted Resolution No. 2014-28476 to ensure the City's
compliance with HUD timeliness requirements. This resolution approved the recapture of$1,591,363 of HOME funds that had
been allocated to projects/activities that were not being carried out in a timely manner and, therefore, were unable to meet a
HUD-required National Objective. The resolution further authorized the issuance of a Request for Proposals (RFP) to identify
viable projects that could be funded. On February 5, 2014, staff issued an RFP for the HOME funds with a submission
deadline of March 6, 2014. Two project proposals were submitted. They have not yet been reviewed and evaluated for award
recommendation.
At the February 12, 2014 City Commission meeting, Resolution No. 2014-28506 was adopted which provided the City
Manager with the authority to purchase the London House Apartments, a two-building property, from Miami Beach Community
Development Corporation (MBCDC) to ensure the full rehabilitation of the project and the timely expenditure of the
Neighborhood Stabilization Program 3 (NSP3) funds that had been awarded to the project. On March 13, 2014, the City closed
on the purchase of the property.
City staff has contracted with several consultants to assess the condition of the project. Among the findings was a report that
assessed the project completion at 41% while MBCDC had reported and billed at 69% completion; and a structural analysis
that found several deficiencies that included the need for significant remediation of framing that had already been completed.
The estimate for completion of construction on the 1965 building is $901 K - $946K and $2.8M - $3.1 M for the 1975 building,
for a total of up to nearly$4.1 M in rehabilitation costs.
The recaptured HOME funds include $1,256,708 that had been awarded to MBCDC for rehabilitation of the 1975 building.
These funds will be required for the City to complete rehabilitation. Therefore, awarding the funds to other projects
identified/ ro posed by the RFP submittals would not be in the City's best interest.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Funds: Amount Account
1
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Maria Ruiz/Housing & Community Services
Sign-Offs:
Department Director Assistant City Manager City Manager
MLR KGB JLM
AGENDA ITEM C��
M I AM EAC 1/- -
DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMIS ION MEMORANDUM
TO: Philip Levine and Members of the ty Com ssion
FROM: Jimmy L. Morales, City Manager
DATE: April 23, 2014
SUBJECT: A RESOLUTION OF THE MA OR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FL RIDA, CANCELLING THE REQUEST
FOR PROPOSALS (RFP) FOR $19591,363 OF AVAILABLE
RECAPTURED HOME INVESTMENT PARTNERSHIP PROGRAM
FUNDS, AS APPROVED AT THE JANUARY 15, 2014 CITY
COMMISSION MEETING PURSUANT TO RESOLUTION NO. 2014-
28476; AND ALLOCATING SAID FUNDS TOWARD THE
REHABILITATION COSTS OF THE CITY'S LONDON HOUSE
APARTMENTS PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City is a U.S. Department of Housing and Urban Development (HUD)-designated
entitlement community, as determined by the decennial census information on population
growth lag, age of housing stock, and poverty. The HOME Investment Partnership (HOME)
Program was created in 1992 providing funding specifically for affordable housing. HUD
allocates these funds to strengthen public/private partnerships and expand the supply of decent,
safe, sanitary, and affordable housing for low-income families. The City has received HOME
funds since the program's inception.
As an entitlement community, the City receives an annual allocation of HUD funding. HUD
requires entitlement jurisdictions to submit a Five-Year Consolidated Plan which establishes the
strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented
and refined by the City's annual submission of a One-Year Action Plan which delineates the
specific projects and activities funded by each year's HUD allocation. The City has historically
used HOME funds for multi-family rental housing and first-time homeownership.
The HOME Program has timeliness requirements regarding the expenditure of funds. The funds
must be committed to a project within two years of City's receipt, and expended within five
years. HUD further requires its entitlement jurisdictions to ensure that funded activities are
carried out in the defined project scope and within the timeframe allowed. The City's Action Plan
is monitored throughout the year to ensure compliance with federal regulations and progress
towards the National Objective, which stipulates that HOME-funded activities must create
housing units that benefit low- and moderate-income persons who earn at or below 80% of the
area median income (AMI).
HOME RFP Cancellation
April 23, 2014
Page 2
To ensure that the City remained in compliance with HUD requirements, the City Commission,
at its meeting on January 15, 2014, approved and adopted Resolution No. 2014-28476. This
resolution approved the recapture of $1,591,363 of HOME funds that had been allocated to
projects/activities that were not being carried out in a timely manner and, therefore, were unable
to meet a HUD-required National Objective. The resolution further authorized the issuance of a
Request for Proposals (RFP) to identify more viable projects that could be funded.
ANALYSIS
On February 5, 2014, staff issued an RFP for the HOME funds with a submission deadline of
March 6, 2014. There were two project proposals submitted. They have not yet been reviewed
and evaluated for award recommendation.
At the February 12, 2014 City Commission meeting, Resolution No. 2014-28506 was adopted
which provided the City Manager with the authority to purchase the London House Apartments
from Miami Beach Community Development Corporation (MBCDC), ensure the full rehabilitation
of the project and the timely expenditure of the Neighborhood Stabilization Program 3 (NSP3)
funds that had been awarded to the project. On March 13, 2014, the City closed on the
purchase of the property, which includes two buildings, 1965 Washington Avenue and 1975
Washington Avenue.
City staff has contracted with several consultants to assess the condition of the project. Among
the findings was a report that assessed the project completion at 41% while MBCDC had
reported and billed at 69% completion; and a structural analysis that found several deficiencies
that included the need for significant remediation of framing that had already been completed.
The estimate for completion of construction on the 1965 building is $901 K - $946K and $2.8M -
$3.1 M for the 1975 building, for a total of up to nearly $4.1 M in rehabilitation costs.
The recaptured HOME funds include $1,256,708 that had been awarded to MBCDC for
rehabilitation of the 1975 building. Clearly, these funds will be required for the City to complete
the rehabilitation of the London House Apartments and achieve the National Objective.
Therefore, awarding the funds to other projects identified/proposed by the RFP submittals would
not be in the City's best interest.
CONCLUSION
The Administration recommends approval of the cancellation of the HOME Recaptured Funds
RFP and the allocation of the funds to the City's London House Apartments Rehabilitation
project.
JLM/K /MLR/ARB