2002-24748 Reso
RESOLUTION NO. 2002-24748
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A mRST AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT, DATED JUNE 6, 2001, BETWEEN THE CITY
OF MIAMI BEACH AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) PROVIDING
$614,913 FROM THE $800,000 HOME CHDO FUNDS
PREVIOUSLY ALLOCATED TO MBCDC BY THE CITY'S
ONE YEAR ACTION PLAN FOR FY 200112002, TOWARDS
THE COST OF THE ACQUISITION AND REHABILITATION
OF AN APARTMENT BUILDING LOCATED AT 532
MICHIGAN AVENUE, MIAMI BEACH, TO PROVIDE AN
ESTIMATED EIGHTEEN (18) RENTAL UNITS FOR
INCOME-ELIGIBLE ELDERLY TENANTS IN
ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
WHEREAS, the City has established a HOME Investment Partnerships Program (HOME
Program) under the roles of the U.S. Department of Housing and Urban Development (HOD), which
provides fmancial assistance for the purpose of providing affordable housing within the City; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution No.
93-20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified
Community Housing Development Organization (CRDO) under the HOME Program; and
WHEREAS, the City has determined the necessity for providing affordable housing in the
City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1, 1998, and its
One-Year Action Plan for Federal Funds for Fiscal Year 200112002, adopted by Resolution No.
2001-24517 on July 18,2001, as amended; and
WHEREAS, the City's One Year Action Plan for Federal Funds for FY 2001/2002 allocated
to MBCDC $800,000 from the City's Fiscal Year 2001/2002 HOME Program allocation for eligible
CHDO projects; and
WHEREAS, on June 6, 2001, the City adopted Resolution No. 2001-24453, authorizing a
HOME Program Agreement between the City and MBCDC to provide $328,987 of HOME Program
funds for the acquisition and rehabilitation of an apartment building located at 532 Michigan
Avenue, Miami Beach; and
WHEREAS, MBCDC has submitted a request to the City to utilize $614,913 of their
previously allocated Fiscal Year 2001/2002 HOME CHOO funds towards the acquisition and
rehabilitation costs of the building located at 532 Michigan Avenue; and
WHEREAS, the City's Loan Review Committee, at its January 25, 2002 meeting,
recommended that the Mayor and City Commission approve a request from MBCDC for the
utilization of $614,913 from their HOME CHOO allocation towards the acquisition and
rehabilitation of an apartment building located at 532 Michigan Avenue, to provide an estimated
eighteen (18) rental units for income-eligible elderly tenants.
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 a First Amendment to the HOME Investment Partnerships (HOME)
Program Agreement, dated June 6, 2001, between the City of Miami Beach and Miami Beach
Community Development Corporation (MBCDC); providing $614,913 from the $800,000 HOME
CHDO funds previously allocated to MBCDC by the City's One Year Action Plan for FY
2001/2002, towards the cost of the acquisition and rehabilitation of an apartment building located
at 532 Michigan Avenue, Miami Beach, to provide an estimated eighteen (18) rental units for
income-eligible elderly tenants in accordance with the HOME Program requirements.
PASSED AND ADOPTED THIS 20th day of February, 2002
ATTEST:
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CITY CLERK
MA
532 MlClfiGAN A VB AMEND RBS.doc
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FORM & LANGUAGE
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A resolution to provide $614,913 from funds previously allocated to MBCDC by the City's One Year Action
for FY 2001/2002, towards the cost of the acquisition and rehabilitation of an apartment building located
at 532 Michigan Avenue.
Issue:
Shall the City provide $614,913 from funds previously allocated to MBCDC by the City's One Year Action
for FY 2001/2002, towards the cost of the acquisition and rehabilitation of an apartment building located
at 532 Michigan Avenue, Miami Beach, to provide an estimated 18 rental units for income-eligible elderly
tenants in accordance with the HOME Program ReQuirements.
Item Summa IRecommendation:
On June 6, 2001 the Commission adopted a resolution which provided $328,978 of HOME Program funds
to MBCDC for the acquisition and rehabilitation of an apartment building at 532 Meridian Avenue to provide
an estimated 18 rental units for income-eligible elderly tenants. MBCDC acquired the building on August
23, 2001, and is currently securing funds to satisfy the market rate loan from Gulf Bank, and to rehabilitate
the building. Miami-Dade County has committed $500,000 of surtax funds, and they will request additional
funds from the Federal Home Loan Bank. MBCDC is requesting the City to provide $614,913 of HOME
Program funds from the $800,000 which was allocated in the One-Year Action Plan for MBCDC to utilize
to rovide rental or homeownershi 0 ortunities to residents of Miami Beach.
Advlso Board Recommendation:
On January 25, 2001, the Loan review Committee recommended that the Commission approve the request
from MBCDC for the utilization of $614,913 of their HOME CHDO allocation of funds for the apartment
building at 532 Michigan Avenue to satisfy the market rate loan from Gulf Bank and provide funds toward
the redevelo ment costs.
Financial Information:
Amount to be expended:
Source of
Funds: HOME
P(iJ
Finance Dept.
$614,913
$614,913
AGENDA ITEM
DATE
C71l
J. -.).0 -Il)...
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
~~
Date: February 20, 2002
Jorge M. Gonzalez
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT,
DATED JUNE 6, 2001, BETWEEN THE CITY OF MIAMI BEACH AND
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
PROVIDING $614,913 FROM THE $800,000 HOME CHDO FUNDS
PREVIOUSLY ALLOCATED TO MBCDC BY THE CITY'S ONE YEAR
ACTION PLAN FOR FY 2001/2002, TOWARDS THE COST OF THE
ACQUISITION AND REHABILITATION OF AN APARTMENT BUILDING
LOCATED AT 532 MICHIGAN AVENUE, MIAMI BEACH, TO PROVIDE AN
ESTIMATED EIGHTEEN (18) RENTAL UNITS FOR INCOME-ELIGIBLE
ELDERLY TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City has received an annual allocation of HOME Investment Partnerships (HOME)
Program funds from the U.S. Department of Housing and Urban Development (HUD) since
1992 for the purpose of expanding the supply of housing for persons meeting the income
criteria of the HOME Program. This Program encourages partnerships between the
government and the private sector, including for-profit and not-for-profit organizations for
the acquisition, construction and rehabilitation of housing. The HOME Program requires
the City, in its capacity as a participating jurisdiction, to set aside a minimum of 15 percent
of its annual allocation for a particular type of not-for-profit organization called a Community
Housing Development Organization (CHDO). The CHDO is required to use these funds
for housing development activities in which the CHDO is the owner, sponsor or developer
of the housing. The Miami Beach Community Development Corporation (MBCDC) was
designated as a CHDO in 1993.
IICH2IVOlIINEIGIHOUSII>lGIMIGUELLI532 MICHIGAN AVE AMEND MEMO.DOC
Commission Memorandum
February 20, 2002
MBCDC: 532 Michigan A venue Amendment to HOME Agreement
Page 2
On June 6, 2001, the City Commission adopted Resolution No. 2001-24453 authorizing the
execution of a HOME Program Agreement with MBCDC, providing $328,987 of HOME
Program funds for the acquisition and rehabilitation of an apartment building, located at 532
Michigan Avenue, to provide eighteen (18) rental units for income-eligible elderly tenants
in accordance with the HOME Program requirements.
On July 18, 2001, the City adopted the One-year Action Plan for federal funds for Fiscal
Year 2001/2002. The Plan provided a HOME CHDO set-aside allocation in the amount of
$800,000 of HOME Program funds to MBCDC for the acquisition and/or rehabilitation of
multi-family buildings or scattered sites units for the purpose of providing rental and/or
homeownership opportunities to income-eligible participants. Once MBCDC identifies an
initiative and site to utilize the allocated funds, a project and site specific HOME Agreement
is entered into.
On August 23, 2001, MBCDC acquired the two-story concrete and masonry structure with
a center hallway and an adjacent two-story structure at the rear, connected by a second
floor interior covered walkway. The structure was built in 1925 and consists of
approximately 11,122 square feet. Currently, the structure is configured into 22 apartments.
According to the report from the architects, the composition of the units is ten studio units,
seven one-bedroom units, and five two-bedroom units. MBCDC is proposing to install an
elevator and to make one or more units handicap accessible as required by the Americans
with Disabilities Act. Some of the units do not have a minimum of 400 square feet as
required by Code. Therefore, MBCDC will reconfigure the units to meet minimum unit size
requirements, or will need to comply with procedures for non-conforming buildings to obtain
appropriate permits and variances, if required. The resulting reconfiguration is estimated
to provide 18-19 apartment units. The structural engineer's report stated that no major
structural deficiencies were found.
The floor grade of the first level of the building is below the base floodplain elevation
required by the Federal Emergency Management Agency (FEMA) of 8 feet above NGVD.
MBCDC will be required to comply with the provisions of the City's Flood Plain Management
Ordinance 92-2822 to obtain appropriate permits and variances, if required.
The proposed scope of work, based on a preliminary evaluation, includes the following:
replace wall mounted A/C units with a central H.V.A.C. system, replace electrical system,
repair or replace existing windows, provide new kitchenettes, refurbish/replace bathroom
fixtures, refinish wood finishes, provide A.D.A. accessibility as required, upgrade fire alarm
and detection system, refinish/re-plaster ceiling and wall areas as needed, provide an
elevator, re-Iandscape entry, and provide security features as necessary.
The building is currently vacant and no tenants will be relocated. In accordance with the
HOME Program requirements, MBCDC will provide these rental units for income-eligible
elderly tenants for a period of a minimum of 15 years after the rehabilitation of the building
is complete.
\\CH2\VOL llNEIGlHouIlng\MlGUELLI532 MICHIGAN AVE AMEND MEMO.doc
Commission Memorandum
February 20, 2002
MBCDC: 532 Michigan A venue Amendment to HOME Agreement
Page 3
In accordance with the HOME Program regulations, on January 17, 2002, MBCDC
requested to utilize $614,913, from their HOME CHDO allocation of $800,000 from FY
2001/2002. The funds are to be utilized as follows: $500,000 to satisfy a market rate loan
from Gulf Bank that MBCDC assumed when they acquired the property, $64,913 for
acquisition closing costs, and $50,000 for predevelopment expenses. MBCDC has
successfully leveraged a $500,000 low interest rate loan from the Miami-Dade County
Surtax Program to be utilized towards the rehabilitation of the building.
On January 25, 2002, the Loan Review Committee recommended that the Mayor and City
Commission approve a request from MBCDC for the utilization of $614,913 from their
HOME CHDO set-aside allocation towards the rehabilitation of the building located at 532
Michigan Avenue and to satisfy the loan from Gulf Bank.
The Administration recommends that the Mayor and City Commission authorize the Mayor
and City Clerk to execute a First Amendment to the HOME Investment Partnerships
Program Agreement, dated June 6, 2001, between the City of Miami Beach and Miami
Beach Community Development Corporation (MBCDC) providing an additional $614,913
from the $800,000 HOME CHDO funds previously allocated to MBCDC by the City's One
Year Action Plan for FY 2001/2002, towards the cost of the acquisition and rehabilitation
of an apartment building located at 532 Michigan Avenue, Miami Beach, to provide an
estimated eighteen (18) rental units for income-eligible elderly tenants in accordance with
the HOME Pr ram requirements.
JMG/RCM
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