96-22196 RESO
\
RESOLUTION NO. 96 -22196
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED
AMENDMENT TO THAT CERTAIN HOME INVESTMENT
PARTNERSHIPS PROGRAM PROJECT AGREEMENT, DATED
DECEMBER 6, 1995, FOR THE MADISON APARTMENTS AT 259
WASHINGTON AVENUE, BETWEEN THE CITY AND M. B.
APARTMENTS ASSOCIATES, LTD., A FLORIDA LIMITED
PARTNERSHIP, PROVIDING ONE HUNDRED-FIFTY THOUSAND
($150,000) DOLLARS IN ADDITIONAL HOME PROGRAM FUNDS
FOR COSTS RELATING TO THE DEVELOPMENT OF THE
PROJECT.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of
Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funding through
the HOME Investment Partnerships (HOME) Program; and
WHEREAS, the HOME Program encourages partnerships with the private sector and not-for-
profit housing providers in order to expand the supply of affordable housing; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No. 93-
20756, designating the Miami Beach Development Corporation (MBDC) as a Community Housing
Development Organization (CHDO); and
WHEREAS, in accordance with the HOME Regulations, the City must reserve a minimum
of fifteen percent (15%) of each fiscal year HOME allocation for a CHDO set-aside for investment
in housing to be developed, sponsored, or owned by CHDO's; and
WHEREAS, on June 29, 1994, the City entered into an Agreement (Initial Agreement) with
MBDC, providing for the acquisition of the Madison Apartments, 259 Washington Avenue, Miami
Beach, Florida, for the purpose of rehabilitating the building in order to provide affordable housing
under the HOME Program; and
WHEREAS, on December 6, 1995, the Mayor and City Commission approved an amendment
to the Initial Agreement, assigning all of MBDC's rights, duties and obligations under the Initial
Agreement to M,B. Apartments Associates, Ltd" a Florida Limited Partnership, (Partnership), and
providing for increased funding (Project Agreement); and
WHEREAS, the Partnership and the City now wish to amend that certain Project Agreement,
dated December 6, 1995, between the City and the Partnership, for the Madison Apartments, to
increase the funding by One Hundred-Fifty Thousand Dollars ($150,000), for a total project
commitment of Five-Hundred Thousand Dollars ($500,000) (Amendment) ; and
WHEREAS, concurrent with the execution of the attached Amendment, the Partnership shall
also execute a Restrictive Covenant specifically outlining the revised restrictions on affordability and
resale; and
WHEREAS, on October 18, 1996, the City's Loan Review Committee reviewed and
recommended approval of the Partnership's request for additional funds in the amount of $150,000,
for costs relating to the development of the Madison Apartments.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA that the Mayor and City Clerk are hereby authorized to execute the
attached Amendment to that certain HOME Investment Partnerships Program Project Agreement,
dated December 6, 1995, for the Madison Apartments, at 259 Washington Avenue, between the City
and M.B. Apartments Associates, Ltd" a Florida Limited partnership, providing One Hundred-Fifty
Thousand ($150,000) dollars in additional HOME funds for costs relating to the development of the
project.
PASSED AND ADOPTED THIS 20th DAY OF November, 1996.
j2oLw~ e~
CITY CLERK
ATTEST:
f:\bs\mbdc\madison3,res
I \.h\ I'll f\?F 1"..( u ':} · .1..)
By L1J/a
r ..J!ity7 b--,,_. .
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAf'v11 BEACH
COMMISSION MEMORANDUM NO. ~ q?rl1~
TO:
Mayor Seymour Gelber and
Memben of the City Commission
DATE: -November 20, 1996
FROM:
Jose Garcia_pedrosa~
City Manager
A RESOLUTION F THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE ATTACHED AMENDMENT TO THAT
CERTAIN HOME INVESTMENT PARTNERSHIPS PROGRAM P.ROJECT
AGREEMENT, DATED DECEMBER 6, 1995, FOR THE MADISON
APARTMENTS AT 259 WASHINGTON AVENUE, BETWEEN THE CITY
AND M.B. APARTMENTS ASSOCIATES, LTD., A FLORIDA LIMITED
PARTNERSHIP, PROVIDING $150,000 IN ADDITIONAL HOME PROGRAM
FUNDS FOR COSTS RELATING TO THE DEVELOPMENT OF THE
PROJECT.
SUBJECT:
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution, authorizing the Mayor and City Clerk to execute an amendment to a HOME
Program Agreement between the City and M.B. Apartments Associates, Ltd., (the
Partnership) dated December 6, 1995, for the Madison Apartments at 259 Washington
Avenue, providing $150,000 in additional HOME funds for costs relating to the
development of the project.
BACKGROUND:
The HOME Investment Partnerships (HOME) Program encourages partnerships between
the govemment and the private sector, including for-profit and not-for-profit organizations
to acquire, construct, rehabilitate or manage affordable housing. The City is required to
allocate a minimum of fifteen percent (15%) of each fiscal year's annual allocation of
HOME funds to designated Community Housing Development Organizations (CHDO's) to
be used for eligible projects developed, sponsored, or owned by the CHDO. The Miami
Beach Development Corporation (MBDC) is the City's designated 'CHDO.
AGENDA ITEM
r1B
1 \ -20-'11.-.
DATE
COMMISSION MEMORANDUM
NOVEMBER 20, 1996
PAGE 2
ANALYSIS:
The City executed an Agreement with MBDC on June 29, 1994, (Initial Agreement), which
provided $200,000 to MBDC towards the acquisition costs of the Madison Apartments, 259
Washington Avenue, a proposed 17 -unit HOME Program rehabilitation project. On
December 6, 1995, the Mayor and City Commission adopted Resolution 95-21839, approving
an amendment to the Initial Agreement, assigning all of MBDC's obligations under the Initial
Agreement to M.B. Apartments Associates, Ltd., a Florida Limited Partnership, and providing
$150,000 in HOME funds for acquisition-related costs of the Madison Apartments. MBDC,
through its wholly-owned affiliate M.B. Apartments, Inc., a Florida corporation, is the sole
general partner of the Partnership,
On December 20, 1995, the Mayor and City Commission authorized the execution of a CHDO
agreement with MBDC providing a reservation of funds in the amount of $695,194. These
funds had originally been allocated to MBDC for the acquisition of the Madison Apartments.
However, MBDC was successful in obtaining other public and private funds, including State
Tax Credits, Metro Dade HOME funds, Metro Dade Hurricane Trust Funds, and State of
Florida HOME funds, therefore the total City HOME funds needed until now for the Madison
project remained at $350,000, for a project with a total cost of $2,351,205.
On October 11, 1996, M. B. Apartments Associates, Ltd., (the Partnership) submitted a
request to utilize $150,000 of the fund reservation to provide additional funding for costs
relating to the development of the Madison Apartments, As of September 30, 1996, the
project was reported to be 53% complete, and the contractor's projected completion date is
January, 1997. The Partnership has experienced cost increases due primarily to structural
deficiencies found in the building after demolition took place, the cost of elevator expansion
required to bring the elevator up to code, the cost of appliances, loan carrying costs, and
water and sewer impact fees.
On October 18, 1996, the City's Loan Review Committee reviewed the Partnership's request
for $150,000 additional funds for the Madison Apartments, and recommended approval of the
funding request. The additional $150,000 brings the City HOME funds cost to $500,000. The
total HOME funds invested in the project from all sources, City, County, and State, is
$1,050,000. This figure remains below $1,328,408, which is the maximum HOME funding
limit from all sources allowed by U.S. HUD for this project, based on the proposed unit
configuration.
COMMISSION MEMORANDUM
NOVEMBER 20, 1996
PAGE 3
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution, authorizing the Mayor and City Clerk to execute an amendment to a HOME
Program agreement between the City and M.B. Apartments Associates, Ltd., dated December
6, 1995, for the Madison Apartments at 259 Washington Avenue, providing $150,000 in
additiol HOME funds for costs relating to the development of the project.
JGP/HWM~MDC/BS
F :\bs\MBDC\madson96.mem
AMENDMENT TO PROJECT AGREEMENT
This Amendment to the Project Agreement, dated as of December 6, 1995, 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 M.B. Apartments Associat~, Ltd., a Florida limited partnership, (the Partnership),
is entered into this..2::ff!. day of }uvc___~,v , 1996.
WITNESSETH:
WHEREAS, on June 29, 1994, the City entered into an Agreement (Initial
Agreement) with the Miami Beach Development Corporation (MBDC), a Florida Not-For-
Profit Corporation, providing for the acquisition of the Madison Apartments, 259
Washington Avenue, Miami Beach, Florida, for the purpose of rehabilitating the building
in order to provide affordable housing under the HOME Investment Partnerships Act
(HOME) Program; and
WHEREAS, on December 6, 1995, the Mayor and City Clerk approved an
amendment to the Initial Agreement, assigning all of MBDC's rights, duties and obligations
under the Initial Agreement to the Partnership and providing for increased funding (Project
Agreement); and
WHEREAS, on October 18, 1996, the City's Loan Review Committee reviewed and
recommended approval of the Partnership's request for additional funds in the amount of
One Hundred-Fifty Thousand Dollars ($150,000) for costs relating to the development of
the Madison Apartments; and
WHEREAS, the Partnership will execute the attached Restrictive Covenant
providing for certain resale affordability covenants and restrictions on the Madison
Apartments.
NOW THEREFORE, the Project Agreement is hereby amended as follows:
1. Article VI, Method of Payment, subsection (4), page 5, is amended as follows:
M,8, Apartments Associates, Ltd., understands and agrees that disbursement of
funds under this Agreement are only to be requested when the funds are needed
for payment of eligible costs, The amount of each request must be limited to the
amount needed, not to exceed a total of $500,000.
2. The existing Exhibit B (BUDGET) is deleted in its entirety, and the new Exhibit B,
reflecting increased funding by $150,000, for a total of $500,000, is attached hereto and
made a part of the Agreement.
3. All other terms and conditions of the Project Agreement between the City and the
Partnership shall remain in full force and effect.
By: e~<f p~
City Clerk
ATTEST:
ATTEST:
OWNER:
M.B.APARTMENTSASSOCIATES, L TO.,
A Florida limited partnership
By: ~ f1v~.
Witness (
CaJ- ><4f-?-=
Witness
By:
" ~.", F',.~ "", .~,-, -, -'.'
I U I, 1\; H i.i r t\ U',j ~:. u
LEGA~
By j)(
"-\; M;/ft--...
f:bs:win: mbdc/madamend .96
. ,',
(J)
w
(J)
::>
o
z
<
(J)
w
u
a::
::>
o
(J)
.....
u
w
""")
o
a::
a.
...J
~
o
t-
O
t-
...J
(J)
W
t-
<
U
o
(J)
(J)
<
(J)
t-
Z
W
~
t-
a::
<
a.
<
al
~
~
It) 0 ~IO 0 0 0 0 It)
0 0 00 0 0 0 0 0
N 0 010 0 0 0 0 C"!.
cD 0 0/0 0 0 ,...- cO ....
0) 0 1t)1~ U) 0 0 "Ilt' 0
CO N .... It) C") U)
I I , I N
I I
I I I I I I I
I I I
I I
I I i
j I
I I I I
/1i I
I
cu CD
CD
aJ CD
U) U.
"0 C E ~ ...
CD cu 0 CD ~ 8-
CD 0 cu cu "0 !
e ~ ~ CD cu 0
aJ 0 "0 CD
a.. CD "- C > U)
en W 0 'E ,g < CD
c .a ::E I~ CD e
0 cu CD "0 0
B 1:: 0 (,) ~ :i c ~ :::J
0 :z: :::J 0
:i w "- w u. en
:0 Lt :i 0 :i ...
~ ~ U) ~ 1i
.~ :z: 0 0 2 CD ~
en u: u. :J: (,) :J: I- 0
EXHIBIT
B
co
~
!:?
o
~
"C
e
to
Q.
~
Q.
t.
en
w
en
:::>
o
z
<C
en
w
o
c:::
:::>
o
en
....
o
w
..,
o
c:::
Cl.
..J
~
o
....
e
....
..J
en
w
~
C3
o
en
en
<C
~
Z
w
:E
l-
n:::
~
<C
CD
::E
2 2 2/;/8/8 2 :8 ~ ~ ~ ~ 2 2 ~1~181~81~ gJ/:e ~ 8 ~ :::/8"~ ~ 0
~~~~~~~.OMM""'~~MN~=~m""'=M~~=_M~
~dd~~~~~~~d~dd~~ ~~dri~ri~~~I~~~
al ~ N M -, M. ..... ..... ~...... . N IN N ~ N M _ _
i Ii, I I I I ' Ii: , ii' I I: I I ;
I I I I
I II
I
I' I I
I I
I I
I
B
c:
III
..
;:,
lIJ
.E
'ii
Z .E .5
t;:U.IIIZi
8. .~ Lf ~ III
1II-c:,,'C
a::J:gc:c:
III .!!! B Jg ~
i~=a~i
~ ~ ~8 u
,g~~~~
c:~:z::z::z::z:
Wwu.u.u.u.
III
;g Il
III
U.
Il
;g
II
en II
1lU.
Il~S~
1IIc:.EO
u. II c: c:
C:c: C) III III
:fiE.9.9
g II 0 c: c:
e 2(,).2.2
;:'0-13(3
lIJ(,)~22
1l.E (,)-_
o~.!!=c::~~
n:~i=5~88
~
-
CO)
C5
.....
~
e
cu
Q.
e
Q.
8~ ~I~U ~
0
N
~ o. Noom -
N_ o~m 0
- ~ ~
I N
Il
;g