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2015-29080 Reso RESOLUTION NO. 2015-29080 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FISCAL YEAR 2015/2016,WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGAM AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM;APPROVING AND AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S FIVE-YEAR. CONSOLIDATED PLAN TO ALLOCATE $319,342.94 OF UNEXPENDED FY2008/2009 HOME FUNDS TO THE LONDON HOUSE APARTMENTS AFFORDABLE HOUSING PROJECT; AUTHORIZING THE CITY MANAGER TO ISSUE A NOTICE OF A THIRTY (30) DAY PUBLIC COMMENT PERIOD FOR BOTH PROGRAMS; AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) TO EXECUTE ALL APPLICABLE DOCUMENTS RELATING TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS;(2)TO SUBMIT THE ONE-YEAR ACTION PLAN AND THE SUBSTANTIAL AMENDMENT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); (3) TO MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLAN OR THE CONSOLIDATED FIVE YEAR PLAN, OR THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLANS);AND(4)TO EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY;AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME;AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF HOME FUNDS. WHEREAS,the City is an entitlement recipient of Federal formula HUD grant programs as follows: Community Development Block Grant (CDBG) funds, and HOME Investment Partnerships funds (HOME); 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 One-Year Action Plan for Federal funds is a requirement under the U.S. Department of Housing and Urban Development (HUD) formula grant programs, including the CDBG Program and the HOME Program; and WHEREAS, the One-Year Action Plan for FY 2015/2016 is based upon the City;s Federal entitlement of$911,562 in CDBG funds and $419,694 in HOME funds; and WHEREAS, the planning phase was initiated by the City on February 13, 2015,with the issuance of two Request for Proposals (RFP), one for CDBG and one for HOME; and WHEREAS, the Administration reviewed, evaluated, and made recommendations regarding the six (6) applications received for CDBG funds and one (1) application for HOME funds; and WHEREAS,the resulting CDBG and HOME recommendations are incorporated into the One-Year(FY 2015/2016) Action Plan; and WHEREAS,the One-Year Action Plan for FY 2015/2016 will made available to the public for comment at City Commission meeting on July 8, 2015; and for a 30-day public review and comment period, from July 10, 2015, through August 9, 2015; and WHEREAS, CDBG funds have been primarily used to provide vital public services, housing activities, youth centers, and senior centers; and HOME Program funds have been primarily used for affordable rental housing activities; and WHEREAS, the City is required to set-aside a minimum of 15% of its HOME funds allocation to a qualified Community Housing Development Organization (CHDO) project; and WHEREAS, the City Manager is the HUD-designated agent for all formula grants, and executes the grant applications, Agreements, and other applicable HUD documents on behalf of the City, and WHEREAS,the City has$319,342.94 in unexpended HOME funds from FY 2008/2009 which can be expeditiously expended by September 30, 2015 and ensure the City's compliance with HOME program rules while closing the budget gap for the London House Apartments, a City- owned residential property; and WHEREAS, the One-Year Action Plan must be submitted to HUD no later than August 15, 2015. 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 adopt the City's One-Year Action Plan for Federal funds for Fiscal Year 2015/2016,which includes the budgets for the Community Development Block Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program; approve and authorize a Substantial Amendment to the City's Five-Year Consolidated Plan to allocate $319,342.94 of unexpended FY2008/2009 HOME funds to the London House Apartments affordable housing project;authorize the City Manager to issue a notice of a thirty (30) day public comment period for both programs; and authorize the City Manager to take the following actions: (1) to execute all applicable documents relating to the appropriation and allocation of these program funds; (2)to submit the One-Year Action Plan and the Substantial Amendment to the U.S. Department of Housing and Urban Development (HUD); (3) to make minor non-substantial changes to the One-Year Action Plan or the Consolidated Five Year Plan, or the resulting agreements (which do not affect the purpose, scope, approved budget and/or intent of the plans); and (4) to extend the expiration dates of said agreements when necessary; and authorizing the Mayor and City Clerk to execute agreements for sub-recipients of CDBG and HOME; and further authorize the City Manager to execute City interdepartmental agreements for recipients of HOME funds. 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T NAD•, CIT` C%Ep P��ORp ORAT ' ILIP E.V . , A OR xi,/ ,_it '� mss' • PPROVED AS TO .••' -- `f' FORM & LANGUAGE �4,i.9i6. .�..... •�; . & FO - E UTION . 1/11 S , i ------ i (g ( City Atto ; ,1- e COMMISSION ITEM SUMMARY Condensed Title: A Resolution Adopting the One-Year Action Plan for FY 2015/2016, which includes the budgets for the Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships program (HOME); approving a substantial amendment to the Consolidated Plan to allocate unexpended HOME funds to the London House Apartments; authorizing the City Manager to issue notice of a 30-day public comment period for both; authorizing the City Manager to execute all applicable Action Plan and Substantial Amendment documents; authorizing the Mayor and City Clerk to execute agreements for sub-recipients and the City Manager to execute interdepartmental agreements; and authorizing the appropriation of all Federal funds when received. Key Intended Outcome Supported: Sustainability. 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 Summary/Recommendation: The City's HUD FY 2015/2016 allocations are$911,562 for CDBG funds and $419,694 for HOME funds. On February 13, 2015, the Administration issued Requests For Proposals (RFP) for both the CDBG and HOME funds. The submission deadline for both RFPs was April 3, 2015. . The City received applications from six (6) organizations for CDBG funds. Miami Beach Community Development Corporation was the sole applicant for HOME funding. The Administration reviewed the applications and prioritized them based on several critical factors. Recommendations for funding include: Jewish Community Services (case management services); UNIDAD Miami Beach (referral services); Teen Job Corp (youth vocational training); Little Havana Activities and Nutrition Centers (child care); Office of Community Services; and the Lottie and the London House apartments (rehabilitation of City-owned residential property). The Affordable Housing Advisory Committee made its funding recommendations on April 28, 2015. The City also has $319,342.94 in unexpended FY 2008/2009 HOME funds that must be allocated and expended by September 30, 2015 to avoid recapture by HUD. These funds will be allocated to the London House Apartments through a Substantial Amendment to the City's 5-Year Consolidated Plan. As required by HUD, the Action Plan and the Substantial Amendment are being made available to the public for a 30-day comment period commencing on July 10, 2015, and ending . August 9, 2015. The Administration recommends that the Mayor and City Commission approve the attached resolution adopting the One-Year Action Plan for FY 2015/2016 and the Substantial Amendment to the 5-Year Consolidated Plan in substantially the attached form, to allow the City to draw down entitlement funds to assist income eligible persons with services and housing, and ensure timely and compliant expenditure of HUD funds. Advisory Board Recommendation: N/A . Financial Information: Source of Funds: Amount Account 1 $911,562 CDBG FY 2015/2016 Allocation 2 $419,694 HOME FY 2015/2016 Allocation gi) 3 $319,342.94 HOME FY 2008/2009 Allocation OBPI ' Total $1,650,598.94 Financial Impact Summary: City Clerk's Office Legislative Tracking: Maria Ruiz/Housing & Community Services Sign-Offs: Department Director As4,nt City Manager t Manager _ MLR Q KGB F ,A7gp JL e AGENDA ITEM Re7 6I- 1V1IA BEACH - ?' DATE 7 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members o' the City C• mission FROM: Jimmy L. Morales, City Manager DATE: July 8, 2015 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CITY'S ONE- YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FISCAL YEAR 2015/2016, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGAM AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM; APPROVING AND AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S FIVE-YEAR CONSOLIDATED PLAN TO ALLOCATE $319,342.94 OF UNEXPENDED FY2008/2009 HOME FUNDS TO THE LONDON HOUSE APARTMENTS AFFORDABLE HOUSING PROJECT; AUTHORIZING THE CITY MANAGER TO ISSUE A NOTICE OF A THIRTY (30) DAY PUBLIC COMMENT PERIOD FOR BOTH PROGRAMS; AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) TO EXECUTE ALL APPLICABLE DOCUMENTS RELATING TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) TO SUBMIT THE ONE-YEAR ACTION PLAN AND THE SUBSTANTIAL AMENDMENT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); (3) TO MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLAN OR THE CONSOLIDATED FIVE-YEAR PLAN, OR THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLANS; AND (4) TO EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF HOME FUNDS. ADMINISTRATION RECOMMENDATION Adopt the Resolution. Commission Memorandum—FY 2014/2015 Action Plan July 8, 2015 Page 2 of 5 BACKGROUND The City of Miami Beach 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 City has been a CDBG entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. HUD allocates these funds to strengthen public/private partnerships and expand the supply of affordable housing that is decent, safe, and sanitary. As an entitlement community, the City qualifies for an annual allocation under HUD's grant programs. HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. . The City's current One-Year Action Plan follows the strategies that have been included in its 2013-2017 Five-Year Consolidated Plan. CDBG funds have been primarily used to provide vital public services, housing activities, code enforcement, and improvements to public facilities while HOME funds have been primarily used for affordable rental housing activities. The total estimated FY 2015/2016 available funds for distribution are: Community Development Block Grant Funds FY15-16 HUD Entitlement $911,562 Less administrative allowance (20%) ($171,643) Net FY 15/16 funds available for distribution $730,450 HOME Funds FY 15-16 HUD Entitlement $419,694 Less administrative allowance (10%) ($41,969) Less 15% CHDO project set-aside ($62,954) Net available for project allocation $314,770 On February 13, 2015, the Administration issued two Request For Proposals (RFP) for CDBG and HOME funds, respectively. The submission deadline for both RFPs was April 3, 2015. To ensure clarification and proactive address questions relating to the completion and submission of an application, a mandatory pre-submission meeting was held on March 5, 2015. Staff reviewed the applications and forwarded its funding recommendations to the Affordable Housing Advisory Committee (AHAC) for comment and recommendation. The AHAC subsequently forwarded its recommendations to the City Manager who finalized the recommendations as noted below. Additionally, an entitlement community is required to expend its annual CDBG and HOME allocations in a timely manner. Non-compliance with these regulations subjects the community to the recapture of funds by U.S. HUD. The City currently has $319,342.94 in unexpended FY2008/2009 HOME funds. These funds must be expended by September 30, 2015 to avoid recapture by HUD. Commission Memorandum—FY 2014/2015 Action Plan July 8, 2015 Page 3 of 5 ANALYSIS The City received CDBG applications from the following entities: ► Housing Authority of the City of Miami Beach ► Jewish Community Services ► Little Havana Activities and Nutrition Centers ► Miami Beach Community Development Corporation ► Teen Job Corp ► UNIDAD of Miami Beach The Administration reviewed the applications prioritizing the following critical factors: • Project impact as it relates to the City's Consolidated Plan; • Project description of activities; • Applicant's attainment of performance measures and program outcomes; • Applicant's organizational capacity and experience, including prior performance with federal awards; • Budget analysis of proposed project; and • Organization's ability to leverage additional non-CDBG sources of funding for project activities. This information was utilized to rank and make appropriate funding recommendations, which form the basis of the Action Plan. The recommendations are consistent with the priority needs identified by the Commission, the community, and the Consolidated Plan. The priorities include services to the elderly, youth, and the homeless; affordable housing; and child care services. More specific information is provided below. A maximum of 15 percent of the entitlement allocation may fund public service activities. Public service activities include meals programs, after school programs, etc., for income-eligible participants. The following five (5) public service activities are recommended for funding: Public Services Projects Amount Recommended CMB — Community Services (rent assistance, school uniforms for needy students) $34,000 Jewish Community Services of S. Florida (case management, referral services) $25,000 UNIDAD of Miami Beach (case management, referral services) $6,000 Teen Job Corp (youth employment) $30,000 Little Havana Activity and Nutrition Centers (child care) $10,400 Total Public Service Allocations $105,400 In addition, two (2) applications were received for CDBG-funded capital projects: ► Housing Authority of the City of Miami Beach (security upgrades at Rebecca Towers) ► Douglas Gardens Community Mental Health Center(Mayfair Residence rehabilitation) While the City has previously funded each applicant and project, the City has pressing capital needs for its own recently-acquired affordable residential properties. The Lottie Apartments, which were acquired in January 2015, require substantial rehabilitation including roof repair, window replacement to address water intrusion, accessibility upgrades to address safety, and the repair of stairs leading to the second floor. In addition, the City is seeking to fully fund the London House Apartments rehabilitation to avoid the use of Miami-Dade County Surtax funds which carry debt service. As such, the following capital projects are recommended for funding with CDBG funds: Commission Memorandum— FY 2014/2015 Action Plan July 8, 2015 Page 4 of 5 CDBG Capital Projects Amount Recommended Lottie A•artments (rehabilitation) $311,049 London House A•artments (rehabilitation) $300,000 Total CDBG Capital Allocations $611,049 In addition, the Administration is recommending the award of $14,000 to HOPE, Inc. for the provision of HUD-mandated fair housing services. HOPE, Inc. provides housing education workshops to residents and investigates allegations of Fair Housing Act violations. The City received one application for HOME Investments Partnership (HOME) funds. Miami Beach Community Development Corporation (MBCDC) submitted an application to rehabilitate The Jefferson, a 27-unit affordable housing project located at 542 Jefferson Avenue. While this project is deemed worthy, staff recommended using State Housing Initiatives Partnership Program (SHIP) funds at the June 10, 2015 Commission meeting. This recommendation was based on the building's needs, the beneficiaries being served and the timeliness of expending expiring SHIP funds. Instead, the Administration recommends providing the gap funding for the London House Apartments rehabilitation. The City acquired the London House, a 24-unit apartment development located at 1965-1975 Washington Avenue in March 2014 from its former owner/developer, MBCDC. The project has used a variety of funds including Neighborhood Stabilization Program (NSP3) and Economic Development Initiatives (EDI). The building will provide much-needed two- and three-bedroom units. The 1965 building received its Temporary Certificate of Completion on May 29, 2015 and the project is expected to be completed by March 2016. HOME Capital. Projects Amount Recommended London House A•artments (rehabilitation) $314,770 Total HOME Ca•ital Allocations $311,770 The HOME Program rules require each entitlement community to reserve a minimum of 15% of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO). A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable housing as a primary mission and has the capacity to develop affordable housing. A CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience. Carrfour Supportive Housing (Carrfour), has been certified as a CHDO and is the only such agency with this designation within the City at this time. However, Carrfour did not apply this funding cycle. Therefore, the Administration is recommending the deferral of the CHDO set aside, $62,954, for future award. The City is allowed two years to commit these funds and five years to expend. The London House is currently the most active HOME project. Allocation of the unexpended FY2008/2009 funds, which total $319,342.94, to this project will allow the City to expend the funds in a timely manner and provide the City with an additional opportunity to further reduce its reliance for County Surtax funds to complete the project and eliminate the debt service that would be imposed on the project if Surtax funds are used.. As required by HUD, the Action Plan is being made available to the public for a 30-day comment period commencing July 10, 2015, and ending August 9, 2015. Public input was also provided via the AHAC meeting of April 28, 2015 in which funding recommendations were Commission Memorandum—FY 2014/2015 Action Plan July 8, 2015 Page 5 of 5 ratified by the Committee. The Substantial Amendment will also be made available to the public for a 30-day comment period commencing and ending on the same dates as the Action Plan. CONCLUSION Most of the activities described in the One-Year Action Plan and the Substantial Amendment to the Five-Year Consolidated Plan will take place in City-designated community development target areas containing census tract/block groups that have greater than 51% of households with incomes at or below 80% of the Area Median Income (AMI) and continue to be a priority for allocation of CDBG and HOME funds. As in previous years, the City received funding requests that exceeded its entitlement allocations. The funding recommendations presented are based on the appropriateness with the Consolidated Plan, the viability of the project, and the applicant's capacity and prior performance expending HUD funds. The Administration recommends that the Mayor and City Commission approve the attached resolution adopting the One-Year Action Plan for FY 2015-2016 and the Substantial Amendment to the Five-Year Consolidated Plan in substantially the attached form, to allow the City to draw down entitlement funds to assist income eligible persons with services and housing, and to ensure the timely and compliant expenditure of HUD funds. The Administration further recommends that the City Manager be authorized to issue a notice of a thirty (30) day public comment period for both programs; and to take the following actions: (1) to execute all applicable documents relating to the appropriation and allocation of these program funds; (2) to submit the One-Year Action Plan and the Substantial Amendment to the U.S. Department of Housing and Urban Development (HUD); (3) to make minor non-substantial changes to the One-Year Action Plan or the Consolidated Five-Year Plan, or the resulting agreements (which do not affect the purpose, scope, approved budget and/or intent of the plans; (4) to extend the expiration dates of said agreements when necessary; and (5) execute city interdepartmental agreements for recipients of HOME funds. JLM/K 0/MLR T:\AGENDA\2015\July\HOUSING&COMMUNITY SERVICES\HUD FY 15 16 Action Plan Memo.docx