SHIP Agreement FY 2014-2015r' — a935.e '
SHIP AGREEMENT
SHIP Fiscal Year 2014-2015
THIS AGREEMENT, entered into this IA day of3-it 7 , 2016, 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 Florida not-for-profit
corporation (hereinafter referred to as MBCDC)and MBCDC/THE JEFFERSON, INC., a Florida
not-for-profit corporation,a/k/a MBDC/THE JEFFERSON CORPORATION(The Jefferson),each
having their principal office located at 945 Pennsylvania Avenue, Miami Beach, Florida.
WITNESSETH:
WHEREAS,the State Housing Initiatives Partnership(SHIP)Program,administered through
the Florida Housing Finance Corporation, was established by the 1992 William E. Sadowski
Affordable Housing Act to stimulate the production of housing Statewide; and
WHEREAS, the City received a total of$48,966.95 of recaptured SHIP Program funds for
Fiscal Year 2014/2015; and
WHEREAS, a minimum of 75 percent of the City's SHIP allocation must be expended in
construction-related activities; and
WHEREAS, a minimum of 30 percent of overall funds must benefit households earning up to
50 percent Area Median Income (AMI)or very low-income households; and
WHEREAS,a minimum of 30 percent of overall funds must benefit households earning up to
80 percent AMI or low-income households; and
WHEREAS, the Jefferson Apartments, a 27-unit residential apartment building located at
542 Jefferson Avenue(the Jefferson Apartments), is owned by The Jefferson, which is a wholly-
owned subsidiary of MBCDC, and serves households earning no greater than 80 percent AMI;
and
WHEREAS, The Jefferson purchased the Jefferson Apartments pursuant to that certain
Warranty Deed, dated May 7, 1997, and recorded in O.R. Book 17663, Page 4674, of the Public
Records of Miami-Dade County, Florida,which Warranty Deed contained a scrivener's error, in that,
the deed depicts The Jefferson's name as MBDC/The Jefferson Corporation, instead of
MBCDC/The Jefferson, Inc.; and
WHEREAS, the Jefferson Apartments is in need of rehabilitation including the replacement
of its roof, the replacement of an air conditioning unit located on the roof, and upgrades and
repairs to the nine units located on the building's third floor; and
WHEREAS,the rehabilitation of the Jefferson Apartments is estimated to cost$135,464 and
would enable the City to partially satisfy its obligation to serve very low- and low-income
households while also partially satisfying its obligations to ensure that 75 percent of SHIP funds
are used for construction-related costs; and
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WHEREAS, the use of SHIP funds will enable the City to extend the affordability period for
the Jefferson Apartments by 30 years, thereby ensuring its ongoing use as affordable housing for
those with the lowest income; and
WHEREAS, on June 10, 2015, the Mayor and City Commission approved Resolution No.
2015-29051, authorizing the Mayor and the City Clerk to execute SHIP program agreements
between the City and The Jefferson for the use of$43,508.85 from FY 2013/2014 SHIP funds and
$91,955.15 from FY 2014/2015 FY Ship funds; and
WHEREAS, February 12, 2016 the City was notified by the Florida Housing Finance
Corporation that the City must return the FY 2013/2014 SHIP funds to the State of Florida; and
WHEREAS, the City wishes to proceed with the funding of the project; and
WHEREAS, MBCDC and The Jefferson are requesting $17,138 in FY 2014/2015
Recaptured SHIP funds for the needed repairs to the Jefferson Apartments; and
WHEREAS, on April 13, 2016, the Mayor and City Commission adopted Resolution No.
2016-29358,approving and authorizing the allocation of$26,371 in available funds from recaptured
FY 2015/2016 SHIP funds and $17,138 from recaptured FY 2014/2015 SHIP funds from prior years'
homebuyer agreements,to be used in connection with the in connection with the replacement of the
roof and upgrades to the nine units located on the third floor of the Jefferson Apartments; and
WHEREAS, The Jefferson and MBCDC (collectively referred to herein as
MBCDC/Jefferson),jointly and severally agree to comply with all terms and conditions of this SHIP
Agreement.
NOW,THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto incorporate the above recitals as part of this Agreement and agree as follows:
ARTICLE I
BACKGROUND
The State Housing Initiatives Program (SHIP) provides funds via formula distribution to
communities within the state for the purpose of promoting home ownership and providing
accessible, affordable housing for very low-and low-income households.
ARTICLE II
BUDGET AND SCOPE OF SERVICES
MBCDC/Jefferson will utilize $17,138 of recaptured SHIP Fiscal Year 2014/2015 funds; as
set forth in the Scope of Services in Exhibit "A", attached hereto and made a part hereof by
reference (hereinafter referred to as the Funds) solely for the rehabilitation of the Jefferson
Apartments as delineated in the Scope of Services.
ARTICLE III
PROGRAM INCOME
With the exception of rental income, MBCDC/Jefferson agrees that any SHIP Program
Income generated from the use of the Funds under this Agreement, or funds repaid for any reason,
is to be returned to the City.
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ARTICLE IV
SPECIAL PROVISIONS UNDER THE SHIP PROGRAM
MBCDC/Jefferson expressly agrees to the following terms and conditions in conformity with
the SHIP Program Rule:
(a) Affordability Period. The period of time SHIP assisted units must remain affordable is for
a minimum of thirty(30)years, in accordance with the SHIP Program Rules and the City of Miami
Beach Local Housing Assistance Plan (LHAP).
(b) MBCDC/Jefferson warrants and represents to the City that they maintain a financial
management system that conforms to the financial accountability standards of the Office of
Management and Budget(OMB) Circular A-110.
(c) Records: MBCDC/Jefferson agrees to maintain all records sufficient to meet the
requirements of the SHIP Program Rule, including, but not limited to:SHIP Program records, project
records, and SHIP Program administration records. All records required herein shall be retained
and made accessible for a period of at least five (5) years after closing, as provided in the SHIP
Program Rule, and Florida Statutes Chapter 119.
(d) Property Standards. For the duration of this Agreement, and any amendments hereto,
housing that is assisted with SHIP funds, at a minimum, must meet the Housing Quality Standards
of CFR Section 882.109.
(e) Affirmative Marketing. MBCDC/Jefferson acknowledges that it is unlawful to discriminate
on the basis of race,creed, color, religion,age,sex,sexual orientation, marital status,familial status,
national origin or handicap..MBCDC/Jefferson agrees to maintain affirmative marketing procedures
and requirements, in writing, for SHIP assisted housing, as set forth in Chapter 67-37 F.A.C.
ARTICLE V
ELIGIBLE COSTS
MBCDC/Jefferson agrees that eligible costs for under this Agreement are limited to those
construction-related expenses delineated in the Scope of Services attached herein.
ARTICLE VI
METHOD OF PAYMENT
(a) The funds shall be paid to MBCDC/Jefferson on a reimbursement basis and shall be
processed within ten(10)days of receipt with required documentation as delineated in the Scope of
Services.
(b) Any payment or disbursement of Funds under this Agreement may be withheld at the
City Manager's(or his authorized designee's)sole discretion pending the receipt of,and approval by
the City, of all reports and documents which MBCDC/Jefferson are jointly required to submit to the
City pursuant to the terms of this Agreement, including, without limitation, Exhibit A hereto.
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ARTICLE VII
SUBCONTRACTS
[Intentionally Omitted]
ARTICLE VIII
CONDITIONS OF SERVICE
(a) MBCDC/Jefferson shall comply with the regulations of the SHIP.
(b) Equal Opportunity: MBCDC/Jefferson shall comply and be governed by the Equal
Opportunity and Fair Housing laws. No person in the United States shall on the grounds of race,
color, national origin, religion, disability or sex be excluded from participation in, or be denied the
benefits of or be subjected to discrimination under any program or activity funded in whole or in part
with SHIP Program funds.
(c) Housing purchased or assisted with SHIP funds shall be subject to testing and
abatement activities for lead-based paint.
(d) MBCDC/Jefferson shall comply with those other statutes, regulations and executive
orders, as same may be amended, and as set forth in Exhibit "B", attached hereto and herein
incorporated by reference.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be deemed effective following approval by the Mayor and City
Commission and execution of same by the parties hereto.
The City and MBCDC/Jefferson mutually agree that the Funds are reserved for
MBCDC/Jefferson for the designated time period as follows:
(a) The SHIP Funds allocated for recaptured Fiscal Year 2014/2015, in the amount of
$17,138, are to be used by November 30, 2016.
(b) The Funds must be expended by November 30, 2016. Upon expiration of the
Agreement, any unused portions will revert to the City.
ARTICLE X
[Intentionally omitted]
ARTICLE XI
AMENDMENTS
Any amendments, alterations, variations, modifications or waivers of any provisions to this
Agreement, including an increased allocation of Funds or extension of the Term, will only be valid
when they have been reduced to writing and duly signed the both parties hereto. Any changes
which do not substantially change the Scope of Services or increase the total amount payable under
this Agreement, shall be valid only when reduced to writing and signed by the City Manager(or his
designee)and MBCDC/Jefferson.
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ARTICLE XII
CONFLICT OF INTEREST
Program
Pro the SHIP within(a) MBCDC/Jefferson shall comply with the standards contained wi t g
Rule.
(b) MBCDC/Jefferson shall disclose any possible conflicts of interest or apparent
improprieties of any party that is covered by the above standards. MBCDC/Jefferson shall make
such disclosure, in writing, to the City Manager or his/her authorized designee immediately upon
MBCDC/Jefferson's discovery of such possible conflict. The City will then render an opinion which
shall be binding on all parties.
(c) Related Parties. MBCDC/Jefferson shall report to the City(through its City Manager or
his/her designee) the name, purpose, and any other relevant information in connection with any
related-party transaction. This includes, but is not limited to, dealing with a for-profit subsidiary or
affiliate organization, an organization with overlapping board of directors, or an organization for
which MBCDC/Jefferson is responsible for appointing members. MBCDC/Jefferson shall report this
information to the City prior to forming the relationship or, if already formed, shall report it
immediately.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
MBCDC/Jefferson shall indemnify and hold harmless the City(through its City Manager or
his/her authorized designee)from any and all claims, liabilities, losses, and causes of action which
may arise out of an act,omission, negligence or misconduct on the part of MBCDC/Jefferson or any
of its officers,directors,employees,agents, servants,contractors, subcontractors,consultants and
sub consultants, patrons,guests,clients,and/or invitees. MBCDC/Jefferson shall pay all claims and
losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the
City, when applicable, and shall pay all costs and judgments which may issue thereon. This
indemnification shall survive termination and/or expiration of this Agreement.
MBCDC/Jefferson shall maintain,during the term of this Agreement,the insurance specified below.
(1) General Liability: $1,000,000 combined single limit for bodily injury and property damage,for
each occurrence.
(2) Contractual Liability: the policy must include coverage to cover the above indemnification.
(3) Automobile and vehicle coverage, in the amount of $1,000,000 per occurrence, shall be
required when the use of automobiles and other vehicles are involved in any way in the performance
of the Agreement, including non-owned automobile coverage.
(4) Workers' Compensation Coverage as per statutory limits required by the State of Florida.
MBCDC/Jefferson shall submit to the City ORIGINAL certificates of insurance for the
above coverage, with the City of Miami Beach, Florida named as an additional insured. All
insurance coverage shall be approved by the City's Risk Manager prior to the release of any Funds
under this Agreement. Further, in the event evidence of such insurance is not forwarded to the
City's Risk Manager within thirty (30) days after the execution of this Agreement, this Agreement
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reporting requirements hereunder.
(a) Records shall be maintained for a period of five (5) years after the closeout of funds
under this Agreement except as provided herein in paragraphs (b)and (c) below.
(b) If any litigation, claim, negotiation, audit or other action has been started before the
regular expiration date, the records must be retained until completion of the action and resolution of
all issues which arise from it, or until the end of the regular period specified in paragraph (a),
whichever is later;
(c) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must be
retained for five years AFTER the required period of affordability.
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ARTICLE XXVII
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can place a limit on
the City's liability for any cause of action for money damages due to an alleged breach by the City of
this Agreement, so that its liability for any such breach never exceeds the sum of the Funds
reserved hereunder, less any amount of the Funds actually paid to MBCDC/Jefferson by the City at
the time of the alleged breach. MBCDC/Jefferson hereby expresses its willingness to enter into this
Agreement with MBCDC/Jefferson's recovery from the City for'any damage action for breach of
contract to be limited to a maximum amount of the Funds, less any amount, in whole or in part, of
the Funds actually paid to MBCDC/Jefferson by the City at the time of the alleged breach.
Accordingly, and notwithstanding any other term or condition of this Agreement, MBCDC/Jefferson
hereby agrees that the City shall not be liable to MBCDC/Jefferson for damages in an amount in
excess of the Funds, less any amount, in whole or in part, of the Funds actually paid to
MBCDC/Jefferson by the City at the time of the alleged breach, for any action or claim for breach of
contract arising out of the performance or non-performance of any obligations imposed upon the
City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in
any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida
Statutes, Section 768.28.
ARTICLE XXVIII
VENUE
This Agreement shall be governed by, and construed in accordance with, the laws of the State of
Florida, both substantive and remedial,without regard to principles of conflict of laws. The exclusive
venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state
court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING
INTO THIS AGREEMENT, MBCDC/JEFFERSON AND THE CITY EXPRESSLY WAIVE ANY
RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION
RELATED TO, OR ARISING OUT OF, THIS AGREEMENT.
ARTICLE XXIX
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies contemplated by this
Agreement to be used for the purposes described herein, originated from grants of State Housing
Incentives Partnership (SHIP) Program funds, and must be implemented with all of the applicable
rules and regulations of the Florida Housing Finance Corporation. It is expressly understood and
agreed that in the event of curtailment or non-production of said SHIP Program funds, that the
financial sources necessary to continue to pay the Funds hereunder will not be available and that
this Agreement will thereby automatically terminate effective as of the time it is determined that said
funds are no longer available. In the event of such determination, MBCDC/Jefferson agrees that it
will not look to, nor seek to hold liable, the City or any individual member of the City Commission
thereof, personally for the performance of this Agreement and all parties hereto shall be released
from further liability each to the other under the terms of this Agreement.
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ARTICLE XXX
NOTICES
All notices shall be sent to the parties at the following addresses:
City: Maria L. Ruiz, Director
Office of Housing & Community Services
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
MBCDC: Beatriz Cuenca-Barberio, Executive Director
Miami Beach Community Development Corporation and
MBCDC/The Jefferson, Inc.
945 Pennsylvania Avenue
Miami Beach, FL 33139
The above parties may change such addresses at any time upon giving the other party
written notification. All notices under this Agreement must be in writing and shall be deemed to be
served when delivered to the address of the addressee. All notices served by mail shall be
registered mail, return-receipt requested.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
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IN WITNESS WHEREOF,The parties hereto have caused this Agreement to be executed by
their duly authorized official(s), on the day and year first above written.
MIAMI BEACH COMMUNITY
ATTEST: DEVELOPMENT CORPORATION, INC.
A Florida not-for-profit corporation
=eatriz Cuenca-Barberio Cornell Cre Chairman
Executive Director
ATTEST: MBCDC/THE JEFFERSON, INC.
a Florida not-for-profit corporation
a/k/a MBDC/THE JEFFERSON
CORPORATION
Sign ign
Print Name/Title Print Name/Title €A-e( D)✓eCt'l '
CITY OF MIAMI BEAC
ATTEST:
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Rafa-I E.=ranado, City Cle Philip L i :yor
* n`'�RP ORATED:
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C . 7 APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney iy- Date
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EXHIBIT A
Scope of Services
Services to be Provided/Scope of Service:
MBCDC will conduct the following repairs at the Jefferson Apartments:
• Replace the roof
• Replace air conditioning unit located on the roof
• Rehabilitate the bathrooms and kitchens of each of the 9 units located on the third floor
Expenditure Deadline:
MBCDC acknowledges and agrees that Funds provided under this Agreement shall be expended,
documented and invoiced to the City prior to November 30, 2016.
Unexpended Funds:
If Funds which have been allocated are not expended by the term of the Agreement, the remainder
of these Funds will revert to the City.
Payment:
The City will reimburse MBCDC upon the provision of evidence of eligible expense for costs
approved within the attached project budget.
Required Documentation:
Reimbursements will be processed with the submission of the following documentation to
demonstrate the incurrence of expense:
1. Completed Monthly Progress Report form (template provided digitally by the City)
2. Completed Reimbursement Request form (template provided digitally by the City)
3. Certified A/A G702 form executed by the Project Architect and Project Contractor
4. City of Miami Beach Building Permits and related inspections for project
5. Release of Lien for the portion of work being reimbursed and properly dated and
executed by the releasing party(ies)
6. Cancelled check(s)for the value of the reimbursement request(back and front of
cancelled check)
Processing Time:
MBCDC will submit completed reimbursement packages. The City will process reimbursements
in an expedited manner to ensure that checks are processed no later than three (3)days from
receipt if the submission is complete and accurate.
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EXHIBIT B
OTHER REQUIREMENTS
As the City of Miami Beach is providing this funding through the SHIP program, MBCDC agrees to
comply with the following statutes, regulations and executive orders, as may be amended. These
requirements are incorporated herein by reference:
1. Freedom of Information and Privacy Acts
- Freedom of Information Act(5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S.C. 552a)
2. Equal Opportunity
-Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1
-Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601)
- Executive Order 11063, as amended by Executive Order 12259
- Executive Orders 11246, 11265, 12138 and 12432
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170)
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)
-The Age Discrimination Act of 1975 (42 U.S.C. 6101)
- The Fair Housing Amendments Act of 1988
3. Lead-Based Paint
- Lead Based Paint Poisoning Prevention Act(42 U.S.C. 4801, et seq)
- HUD Lead Based Paint Regulations (24 CFR Part 35)
4. Asbestos
-Asbestos Regulations (40 CFR 61, Subpart M)
- U.S. Department of Labor Occupational Health and Safety(OSHA)Asbestos
Regulations (29 CFR 191.1101)
5. Handicapped Accessibility
-Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41)
6. Additionally, all parties agree to comply with all existing federal, state and local laws and
ordinances hereto applicable, as amended.
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EXHIBIT C
SCHEDULE OF WORK
The work to be performed under this contract must be completed as demonstrated by a Final
Inspection by the Building Department and issuance of a Certificate of Completion on the
schedule as follows:
June 30, 2016: Execute funding agreement
July 5 - 8, 2016: Execute contractor agreements
July 11 —August 31 2016: Roof/Air Conditioning Replacement
July 11, 2016: Order kitchen cabinets
August 15— November 15, 2016: Kitchen Rehabilitation of Units 301, 302, 303, 304, 305,
306, 307, 308, and 309.
November 30, 2016: Project completion (CC obtained)
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• r
EXHIBIT D •
PROJECT BUDGET.
•
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Miami Beach Community Development Corportlon
MBCDC:The Jefferson Apartments,Inc.
542 Jefferson Avenue,Miami Beach,FL 33139
AMENDED BUDGET TO INCLUDE A/C
• STAND REPLACEMENT(9
ORIGINAL BUDGET KITCHENS/BATHS)
Line Item Per Unit Total Per Unit Total
Roof Replacement $ 3,977.78 1 $ 35,800.00 $ 3,977.78 $ 35,800.00
Replacement 7.5 Ton AC' $ 933.33 1 $ 8,400.00 $ 3,050.00 $ 27,450.00
Kitchen Measurement $ - $ -
Permits $ 400.00 9 5 3,600.00 5 511.11 5 4,600.00
Demolition $ - $ .
Measurements,Cabinets,hardware,countertop,sink
and fixtures and installation $ 5,050.00 9 $ 59,515.00 S 5,761.00 $ • 51,849.00
Appliances $ 1,000.00 9 5 9,000.00 $
Installation $ - $ -
Bathroom vanity,medicine cabinet and fixtures $ 800.00 9 $ ' 7,200.00 $ 600.30 $ 5,400.00 •
TOTAL Construction $ 12,161.11 $ 123,515.00 $ 13,899.89 $ 125,099.00
•
$ i
Contingency @ 3% $ 548.96 $ 4,940.60 $ 399.03 $ 3,591.29
Project Manager @ 30%of time for 3 months $ 294.67 $ 2,652.00 $ 294.67 $ 2,652.00
Administration $ 454.17 $ 4,087.50 5 454.17 $ 4,087.50
Total Other 5 1,297.79 $ 11,680.10 $ 1,147.87 $ 10,330.79
TOTAL $ 13,458.90 $ 135,195.10 $ 15,047.75 $ 135,429.79
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*Original budget did not include replacement of 26 AC stands which are needed because the existing ones are In poor condition.
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