2016-29358 Reso•
RESOLUTION NO. 2016-29358
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
ALLOCATION OF STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM
(SHIP) FUNDS FROM FY 2014-2015 AND FY 2015-2016 IN THE AMOUNTS
OF $17,138, AND $26,371, RESPECTIVELY, TO MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION/MBCDC: THE JEFFERSON, INC. (MBCDC)
FOR THE REHABILITATION OF THE AFFORDABLE HOUSING PROPERTY
LOCATED AT 542 JEFFERSON AVENUE; TO INCLUDE THE
REPLACEMENT OF THE ROOF AND UPGRADES TO THE NINE UNITS
LOCATED ON THE THIRD FLOOR OF THE PROPERTY; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SHIP
PROGRAM AGREEMENT BETWEEN MBCDC AND THE CITY.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing
Act on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds
to local governments to stimulate the production of affordable housing through the State
Housing Initiatives Partnership (SHIP) Program; and
WHEREAS, the Act requires that, in order to qualify for funding, local governments
develop a Local Housing Assistance Plan outlining how the funds will be used; and
WHEREAS, the City developed its Local Housing Assistance Plan to include rental
housing development as an approved strategy and as approved via Resolution 2014-28824;
and
WHEREAS, MBCDC/The Jefferson, Inc. (MBCDC/Jefferson) is the owner of the
affordable residential property located at 542 Jefferson Avenue (Jefferson Apartments); and
WHEREAS, MBCDC/Jefferson is a wholly owned subsidiary of Miami Beach Community
Development Corporation (MBCDC); and
WHEREAS, the property is in need of repairs to ensure its continued use as affordable
housing including replacement of the roof and air conditioning unit as well as upgrades to the
nine units located on the third floor; and
WHEREAS, on June 10, 2015 the Mayor and City Commission approved Resolution No.
2015-29051, awarding FY 2013-2014 funds in the amount of $43,508.85 for repairs to the
Jefferson Apartments; and
WHEREAS, the City will ensure strict compliance of SHIP rules by MBCDC/Jefferson by
conducting weekly progress inspections and ensuring that all expenditures are eligible for
reimbursement; and
WHEREAS, February 12, 2016 the City was notified by the Florida Housing Finance
Corporation that the FY 2013-2014 funds were no longer available and must be returned to the
State of Florida; and
WHEREAS, the Administration recommends funding the needed repairs to the Jefferson
Apartments from SHIP funds, by allocating $17,138 from the 2014-2015 fiscal year and $26,371
from the 2015-2016 fiscal year.
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 and authorize the allocation of State Housing Initiatives
Partnership (SHIP) Program funds from FY 2014-2015 and FY 2015-2016 in the amounts of
$17,138 and $26,371, respectively, to MBCDC/The Jefferson, Inc. (MBCDC/Jefferson) for the
rehabilitation of the affordable housing property located at 542 Jefferson Avenue; to include the
replacement of the roof and upgrades to the nine units located on the third floor; and further
authorize the Mayor and City Clerk to execute the SHIP Program Agreement between
MBCDC/Jefferson and the City.
PASSED AND ADOPTED this /3 day of r, 1 2016.
ATTEST:
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RAFAEL E. GRA! ADS, CITY CLER• ; ,�� .. C 'HILIP L -VI r;MAYOR
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APPROVED AS TO
FORM & LANGUAGE
& Fib EXECUTION
■
City Attorney I Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving the allocation of State
Housing Initiatives Partnership Program (SHIP) funds from FY 2014-2015 and FY 2015-2016 in the amounts of
$17,138,and$26,371, respectively,to Miami Beach Community Development Corporation/MBCDC:The Jefferson, Inc.
(MBCDC)for the rehabilitation of this affordable housing property located at 542 Jefferson Avenue.
Key Intended Outcome Supported:
Increase access to workforce or affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the Community Satisfaction Survey, 33%of
businesses rated the lack of affordable housing in Miami Beach, as their most important challenge.
Issue:
Shall the City approve the allocation of SHIP Program funds for the rehabilitation of the Jefferson Apartments.
Item Summary/Recommendation:
The City is a recipient of State Housing Initiatives Partnership(SHIP)Program funds. SHIP funds were created via the
William E. Sadowski Affordable Housing Act on July 7, 1992 as a means of stimulating the production of affordable
housing. Funds are derived from documentary stamp taxes on deeds and then allocated to local governments.
MBCDC approached the City regarding The Jefferson, its 27-unit affordable housing building serving elder residents.
The building is in need of a roof replacement, the replacement of an air conditioning unit, and the upgrade of the
kitchens and bathrooms of the nine units located on the third floor.When the roof is replaced,the electrical conduits will
also need to be properly secured as this was a finding of the property's 40-year certification. These repairs are
estimated at$135,464, the amount of SHIP funds being requested
At the June 10, 2015 City Commission Meeting, Resolution No. 2015-29051 was approved and adopted, awarding
$135,464 to MBCDC for the rehabilitation of the Jefferson.This award provided funding from SHIP Program FY 2013-
2014 and FY 2014-2015 in the amounts of$43,508 and$91,955,respectively. However,on February 12,2016,the City
was notified that the FY 2013-2014 funds were no longer available and would be recaptured. Therefore, in order to
complete the funding for the project it was necessary to identify alternative funding sources.These alternate funds are
being awarded from FY 2014-2015 and FY 2015-2016.
While there have been previous concerns with MBCDC, City staff has evaluated the proposed project, timeline, and
working conditions to ensure that the project is completed as planned. Current affordable housing restrictions are
expiring, or have already expired, which means the property could become market-rate housing if not secured as
affordable housing going forward.The rehabilitation of the building will ensure its ongoing use as an affordable housing
property for 30 years and will improve the living conditions of its elderly tenants.As such,the project is recommended
for funding.
Advisory Board Recommendation:
NA
Financial Information:
Source of Amount Account Approved
Funds: 1 $43,509.00 152.XXXX.000349
041 if 2
OBPI Total $43,509.00
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Maria Ruiz
Sign-Offs:
Department Director Assistant City Manager City Manager
MLR KGB JLM -
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AGENDA ITEM C—1
IMF MIAMIBEACH - 0
DATE � !3 1
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSIO MEMORANDUM
TO: Mayor Philip Levine and Members o the City Co (mission
FROM: Jimmy L. Morales, City Manager
DATE: April 13, 2016
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING THE ALLOCATION OF STATE HOUSING INITIATIVES
PARTNERSHIP PROGRAM (SHIP) FUNDS FROM FY 2014-2015 AND FY 2015-2016 IN
THE AMOUNTS OF $17,138, AND $26,371, RESPECTIVELY, TO MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION/MBCDC: THE JEFFERSON, INC.
(MBCDC) FOR THE REHABILITATION OF THIS AFFORDABLE HOUSING PROPERTY
LOCATED AT 542 JEFFERSON AVENUE; TO INCLUDE THE REPLACEMENT OF THE
ROOF AND UPGRADES TO THE NINE UNITS LOCATED ON THE THIRD FLOOR OF
THE PROPERTY; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE SHIP PROGRAM AGREEMENT BETWEEN MBCDC AND THE CITY.
ADMINISTRATION RECOMMENDATION
Approve the resolution.
BACKGROUND
The City is a recipient of State Housing Initiatives Partnership (SHIP) Program funds. SHIP funds were
created via the William E. Sadowski Affordable Housing Act on July 7, 1992 as a means of stimulating
the production of affordable housing. Funds are derived from documentary stamp taxes on deeds and
then allocated to local governments.
SHIP funds have very specific expenditure rules including:
• At least 75 percent of the funds made available to each municipality must be reserved for
construction, rehabilitation, or emergency repair of affordable, eligible housing.
• At least 30 percent of the funds must be reserved to benefit very low-income households.
• At least 65 percent of funds made available to each municipality must be reserved for home
ownership for eligible persons residing in very low- and low-income households.
Please note that the percentage thresholds are overlapping and equal greater than 100 percent.
At the June 10, 2015 City Commission Meeting, Resolution No. 2015-29051 was approved and
adopted, awarding $135,464 to MBCDC for the rehabilitation of the Jefferson. This award provided the
funding from SHIP Program FY 2013-2014 and FY 2014-2015 in the following amounts:
FY 2013/14 $43,508.85
FY 2014/15 $ 91,955.15
City Commissioner Memorandum—SHIP Award to MBCDC for the Rehabilitation of The Jefferson
April 13,2016
2 pages
However, on February 12, 2016, the City was notified that the FY 2013-2014 funds were no longer
available and would be recaptured. Therefore, in order to complete the funding for the project it was
necessary to identify alternative funding sources.
ANALYSIS
Miami Beach Community Development Corporation approached the City regarding its affordable
housing property located at 542 Jefferson Avenue. The Jefferson is a 27-unit affordable housing
building serving elder residents. The building is in need of a roof replacement (to address pooling and
trusses that are rotting), the replacement of an air conditioning unit (which has reached its life span
and is currently buckling under its weight), and the upgrade of the kitchens (which require counter and
cabinet replacement because of deterioration of the particle board material) and bathrooms (replacing
the cabinets and sinks because of material deterioration) of the nine units located on the third floor.
When the roof is replaced, the electrical conduits will also need to be properly secured as this was a
finding of the property's 40-year certification. These repairs are estimated at $135,464, the amount of
SHIP funds being requested.
Based on the SHIP Program rule that requires that sixty-five percent (65%) of an annual fiscal year
allocation be used for homeownership activities, the original rental award available from the FY 2014-
2015 had been accounted for in the $91,955 award for this project. However, staff has pursued the
recapture of program funds from previous recipients of assistance that violated the covenants of their
agreements and required the repayment of the funds. These recaptured funds, which became part of
FY 2014-2015, provided $17,138 of funding that could be utilized for rental related projects. The
balance of the funds required to complete the project, $26,371, are being awarded from FY 2015-2016
available funds.
The City has reviewed MBCDC's prior performance concerns and the agency's overall fiscal and
operational health. MBCDC has completed a 100 percent turnover of staff that had been present
during the period of prior performance concerns and has agreed to strict performance timelines as a
condition of receiving rehabilitation funds. All reimbursement packages will require evidence of
expenditure as well as staff inspections to verify submissions.
CONCLUSION
While there have been previous concerns with MBCDC, City staff has evaluated the proposed project,
timeline, and working conditions to ensure that the project is completed as planned. Current affordable
housing restrictions are expiring, or have already expired, which means the property could become
market-rate housing if not secured as affordable housing going forward. The rehabilitation of the
building will ensure its ongoing use as an affordable housing property for 30 years and will improve the
living conditions of its elderly tenants. As such, the project is recommended for funding.
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