2016-29421 Reso RESOLUTION NO. 2016-29421
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO RECAPTURE AND REALLOCATE $81,080 OF HOME
INVESTMENT PARTNERSHIP (HOME) FUNDS TO THE CITY'S LONDON
HOUSE APARTMENTS PROJECT TO ENSURE COMPLIANCE WITH
UNITED STATES HOUSING AND URBAN DEVELOPMENT DEPARTMENT
(HUD) RULES AND REGULATIONS REGARDING THE TIMELY
EXPENDITURE OF FUNDS.
WHEREAS, the City is an entitlement recipient of HUD formula grant programs as
follows: Community Development Block Grant (CDBG) funds, and HOME Investment
Partnership (HOME) funds; and
WHEREAS, CDBG funds are used to provide vital public services, housing activities,
code enforcement, and improvements to public facilities; HOME funds are used for affordable
housing activities, including multi-family rentals; 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 Action Plan for Federal funds is a requirement under HUD's formula
grant programs, which include the CDBG and HOME Program; and
WHEREAS, HOME and CDBG stipulate that funds be expended within timeliness
guidelines as delineated in 24 CFR Part 570 and 24 CFR Part 92, among others; and
WHEREAS, the rehabilitation of the Barclay Apartments Project (Barclay Project) by
Miami Beach Community Development Corporation (MBCDC) was terminated and the City
acquired title to the property; and
WHEREAS, HOME funds, in the amount of $81,080, were committed to the Barclay
Project for MBCDC to rehabilitate the Barclay Apartments and have not been expended; and
WHEREAS, those HOME funds remain committed to MBCDC in the HUD Integrated
Disbursement and Information System (IDIS) and could jeopardize the City's ability to meet the
HUD expenditure deadlines; and
WHEREAS, the City wishes to recapture the HOME funds and award the funds to the
London House Apartments Project; and
WHEREAS, the London House Apartments project, for which the City has taken
ownership, has a shortfall in available funds to complete the rehabilitation; and
WHEREAS, the City Manager is the designated agent for all HUD formula grants, and
executes the grant applications, grant agreements, and other applicable HUD documents on
behalf of the City.
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 City Manager to recapture and reallocate
$81,080 of HOME Investment Partnership (HOME) funds to the City's London House
Apartments Project to ensure compliance with United States Housing and Urban Development
Department (HUD) rules and regulations regarding the timely expenditure of funds.
PASSED AND ADOPTED this 8 day of game— , 2016.
ATTEST:
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida,approving and authorizing the City
Manager to recapture and reallocate$81,080 of HOME Investment Partnerships(HOME)funds to the London House
Apartments project to ensure compliance with the United States Housing and Urban Development Department(HUD)
rules and regulations regarding the timely expenditure of funds.
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 recapture and reallocation of HOME Program funds for the rehabilitation of the London
House Apartments
Item Summary/Recommendation:
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.
The City previously awarded $500,000 of FY 2010/2011 HOME funds to Miami Beach Community Development
Corporation's(MBCDC)Barclay Apartments project.Currently$299,722 has been drawn and expended by MBCDC in
the project, leaving a balance of$200,278. At the April 9, 2014 City Commission meeting, through Resolution No.
2014-28536,$119,198 of that balance was recaptured.At that time, MBCDC still controlled ownership of the property
and the future of the property was unclear, so the remaining $81,080 remained committed to the project.
Since the City has now taken ownership of the Barclay Apartments,the MBCDC project terminated,and the City does
not intend to develop the property for individuals/families with household income at or below 80% of Area Median
Income(AMI),the funds must be recaptured from the MBCDC project and recommitted in the IDIS system to a HOME-
eligible housing project. The Commission approved the use of the Barclay Apartments as workforce housing serving
households earning up to 140%AMI at its May 6,2015 meeting.The London House project meets the eligibility criteria
and has additional funding needs that were anticipated.
The Administration recommends approval of the recapture of funds and reallocating the funds to the London House
project to ensure compliance with HUD's timeliness standards and sufficient funding to complete the project.
Advisory Board Recommendation:
NA
Financial Information:
Source of Amount Account Approved
Funds: / 1 $81,080 151.5222.000349
2
t_PE I Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Maria Ruiz
Sign-Offs:
Department Director Assistan City Manager ity Manager
MLR e KGB JLM
T:WGENDA\2016Uune Mousing and Community Services1Barclay HOME Funds Recapture Summary
/A AGENDA ITEM G
���„/ MIAMIBEACH DATE 6' (o
P- MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of he City Co ission
FROM: Jimmy L. Morales, City Manager
DATE: June 8, 2016
SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO RECAPTURE AND REALLOCATE $81,080 OF HOME
INVESTMENT PARTNERSHIP (HOME) FUNDS TO THE LONDON HOUSE
APARTMENTS PROJECT TO ENSURE COMPLIANCE WITH UNITED
STATES HOUSING AND URBAN DEVELOPMENT DEPARTMENT (HUD)
RULES AND REGULATIONS REGARDING THE TIMELY EXPENDITURE OF
FUNDS.
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.
The HOME Program has timeliness requirements regarding the expenditure of funds. 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 Recapture and Reallocation
June 8, 2016
Page 2
From time-to-time if the City recaptures and reallocates funds it may be necessary for the City to
process a "Substantial Amendment" to the Five Year Consolidated Plan or the One Year Action
Plans to allow for the funding of new activities, modification of existing activities, or other
program administrative actions. This reallocation does not constitute a substantial amendment
based on the following criteria:
• It does not add an additional activity that has not already been defined in the
Consolidated Plan or Action Plan;
• The deletion of the Barclay Apartments Project has already occurred in the Consolidated
Plan or Action Plan;
• There is no change in the purpose, scope, location or beneficiaries previously described
in the Consolidated or Action Plan;
• The change in the use of funds does not increase the funding of the London House
Apartments by 10% or more during the fiscal year.
ANALYSIS
The City previously awarded $500,000 of FY 2010/2011 HOME funds to Miami Beach Community
Development Corporation's (MBCDC) Barclay Apartments. The funds were to be utilized to
modernize the elevator and upgrade the electrical systems to meet the requirements of the 40-Year
Building Re-Certification. Currently $299,722 has been drawn and expended by MBCDC in the
project, leaving a balance of $200,278. At the April 9, 2014 City Commission meeting, through
Resolution No. 2014-28536, $119,198 of that balance was recaptured. At that time, MBCDC still
controlled ownership of the property and the future of the property was unclear, so the remaining
$81,080 remained committed to the project for the following purposes:
$ 6,408 Elevator Machine Room Contractor Retainage
$ 6,300 Elevator Modernization Contractor Retainage
$68,372 Electrical Contractor Remaining Contract Costs
$81,080
Since the City has now taken ownership of the Barclay; the MBCDC project terminated; and the
City does not intend to develop the property for individuals/families with household income at or
below 80% of Area Median Income (AMI); the funds must be recaptured from the MBCDC
project and recommitted in the IDIS system to a HOME-eligible housing project. The London
House Apartments project meets the eligibility criteria and has additional funding needs that
were anticipated.
CONCLUSION
The Administration recommends approval of the recapture of funds and reallocating the funds to
the London House Apartments to ensure compliance with HUD's timeliness standards and
sufficient funding to complete the project.
JLM/KGB/MLR/ARB
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