2002-24749 Reso
RESOLUTION NO. 2002-24749
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
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT WITH MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) PROVIDING A TOTAL
OF $333,300 IN HOME PROGRAM FUNDS FROM THE HOME
PROGRAM NOTICE OF FUNDING AVAILABILITY (NOFA) FOR
FISCAL YEAR 2000/2001, TOWARDS THE COST OF THE
ACQUISITION AND REHABILITATION OF THE APARTMENT
BUILDING LOCATED AT 530 MICIDGAN AVENUE, MIAMI
BEACH, TO PROVIDE NINE (9) RENTAL UNITS FOR INCOME-
ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH THE
HOME PROGRAM REQUIREMENTS; FURTHER, APPROVING A
ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO
MBCDC: 532 MICHIGAN AVENUE, LLC., A NOT-FOR-PROFIT
ENTITY CREATED BY MBCDC AS A SUCCESSOR IN INTEREST
IN TITLE TO THE PROPERTY LOCATED AT 530 MICHIGAN
AVENUE AND UNDER THIS AGREEMENT.
WHEREAS, the City has established a HOME Investment Partnerships (HOME) Program
under the rules of the U.S. Department of Housing and Urban Development (HUD), which provides
financial assistance for the purpose of providing affordable housing within the City; 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 2000/2001, adopted by Resolution No. 2000-
23997 on July 12, 1999, as amended; and
WHEREAS, on September 28,2001, the City issued a HOME Program Notice of Funding
Availability (NOFA), in the amount of $503,838, for the acquisition and/or rehabilitation of multi-
family rental buildings or scattered sites for the purpose of providing affordable rental housing; and
WHEREAS, the City's Loan Review Committee, at its January 25, 2002 meeting, reviewed
applications submitted and recommended HOME Program funding, in the amount of $333,300, from
the HOME Program NOFA issued on September 28, 2001, for Miami Beach Community
Development COIpOration (MBCDC) for the acquisition and rehabilitation of an apartment building
located at 530 Michigan Avenue, Miami Beach, to provide 9 rental units to income-eligible elderly
tenants, in accordance with the rules of the HOME Program; and
WHEREAS, in order to avoid displacement, current income-eligible tenants will be
grandfathered-in, and subsequently, when units become vacant, only elderly tenants will be permitted
to lease.
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 HOME Investment Partnerships (HOME) Program
Agreement with Miami Beach Community Development Corporation (MBCDC), providing a total
of $333,300 in HOME Program funds from the HOME Program Notice of Funding Availability
(NOFA) for Fiscal Year 2000/2001, towards the cost of the acquisition and rehabilitation of the
apartment building located at 530 Michigan Avenue, Miami Beach, to provide nine (9) rental units
for income-eligible elderly tenants in accordance with the HOME Program requirements; further,
approving a one-time only assignment of this Agreement to MBCDC: 532 Michigan Avenue, LLC.,
a not-for-profit entity created by MBCDC as a successor in interest in title to the property located
at 530 Michigan Avenue and under this Agreement.
PASSED AND ADOPTED TIDS 20th DAY 0
-
. 2002
ATTEST:
~~. f fM.cluA
CITY CLERK
530 MICHIGAN A VB RES.doc
APPROVED AlTO
FORM a LANGUAGE
& FOR EXECUTION
1J!~ 2-/~
y... Date
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A resolution to execute a HOME Investment Partnerships (HOME) Program Agreement with the Miami
Beach Community Development Corporation (MBCDC), to provide $333,300 in HOME Program funds from
the HOME Program NOFA for FY 2000/2001 towards the cost of the acquisition and rehabilitation of the
apartment building located at 530 Michigan to provide 9 rental units for income-eligible elderly tenants in
accordance with the HOME Program reQuirements.
Issue:
Shall the City provide $333,300 in HOME Program funds from the HOME Program NOFA for FY
2000/2001 towards the cost of the acquisition and rehabilitation of the apartment building located at 530
Michigan to provide 9 rental units for income-eligible elderly tenants in accordance with the HOME Program
reauirements.
Item Summa /Recommendation:
On September 28, 2001, the City issued a HOME Program NOFA for the amount of $503,838. MBCDC
responded to the NOFA with an application to utilize $333,300 towards the acquisition and rehabilitation
of an apartment building located at 530 Michigan Avenue to provide 9 units for income-eligible elderly
tenants. Miami-Dade County has committed $500,000 of surtax funds, which MBCDC will utilize to satisfy
a market rate loan from Gulf Bank, and MBCDC will request an additional $100,000 from the Federal
Home Loan Bank. MBCDC is requesting a one-time assignment of the agreement to MBCDC: 532
Michigan Avenue, LLC., a not-for- profit Limited Liability Corporation whjch owns the property at 530 and
532 Michigan Avenue. Both of these buildings will be operated by MBCDC to provide rental housing for
income-eli ible elderl tenants.
Adviso Board Recommendation:
On January 25, 2002, the Loan Review Committee recommended that the Commission approve the
request from MBCDC for the utilization of $333,300 of HOME Program funds to provide nine rental units
for income-eligible tenants in the apartment building at 530 Michigan Avenue to be utilized towards the
ac uisition and rehabilitation of the ro e .
Financial Information:
Amount to be expended:
Source of
Funds: HOME
p~
Finance Dept.
$333,300
AGENDA ITEM
DATE
G70
;2 -~-O;;""
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
To:
From:
Subject:
j
I
1
COMMISSION MEMORANDUM
Date: February 20, 2002
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez , . A~
City Manager U"''' 0
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
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT WITH MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) PROVIDING A
TOTAL OF $333,300 IN HOME PROGRAM FUNDS FROM THE
HOME PROGRAM NOTICE OF FUNDING A VAILABIUTY (NOFA)
FOR FISCAL YEAR 2000/2001, TOWARDS THE COST OF THE
ACQUISITION AND REHABILITATION OF THE APARTMENT
BUILDING LOCATED AT 530 MICHIGAN AVENUE, MIAMI
BEACH, TO PROVIDE NINE (9) RENTAL UNITS FOR INCOME-
ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH THE
HOME PROGRAM REQUIREMENTS; FURTHER, APPROVING
A ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO
MBCDC: 532 MICHIGAN AVENUE, LLC., A NOT -FOR-PROFIT
ENTITY CREATED BY MBCDC AS A SUCCESSOR IN
INTEREST IN TITLE TO THE PROPERTY LOCATED AT 530
MICHIGAN AVENUE AND UNDER THIS AGREEMENT.
ADMINISTRATION RECOMMENDATION
I
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 (U.S. 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.
On September 28, 2001, the City issued a HOME Program Notice of Funding Availability
(NOFA) in the amount of $503,838 for the acquisition and/or rehabilitation of multi-family
rental buildings or scattered site units for the purpose of providing affordable rental housing.
Under the terms of the NOFA, applications were accepted beginning October 31, 2001.
\\CH2IVOL1\NEIGIHOUSINGIMIGUElLI53O MICHIGAN AVE MEMO.DOC
Commission Memorandum
February 20,2002
MBCDC: 530 Michigan Avenue HOME Program Agreement
Page 2
In response to the NOFA, the City received two applications from two different applicants.
In accordance with the terms of the NOFA, applications were reviewed by City staff for
completeness and compliance with the terms of the NOFA and the HOME Program
requirements.
On January 25, 2002, the City's Loan Review Committee (LRC) recommended funding for
an application from the Miami Beach Community Development Corporation (MBCDC) for
the requested amount of $333,300 to be utilized toward the acquisition and rehabilitation
of the apartment building located at 530 Michigan Avenue, Miami Beach, to provide nine
rental units for income-eligible elderly tenants. In addition, MBCDC has successfully
leveraged a $500,000 low interest rate loan from the Miami-Dade County Surtax funds and
is applying to the Federal Home Loan Bank for a $100,000 grant to satisfy a market rate
loan from Gulf Bank.
MBCDC acquired the two-story, nine (9) unit apartment building at 530 Michigan Avenue
on August 23, 2001. At that time, MBCDC also acquired the building at 532 Michigan
Avenue from the same owner. The eighteen (18) unit apartment building at 532 Michigan
Avenue was approved as a HOME project by the Commission on June 6, 2001 and
$328,987 of HOME Program funds was utilized for the acquisition of the building. MBCDC
intends to operate both buildings to provide housing for the elderly.
The property at 530 Michigan Avenue is a two-story concrete and masonry structure
consisting of three studio apartments and six one-bedroom apartments. The structure was
built in 1972 and contains approximately 5,948 square feet. All units have or exceed the
minimum 400 square feet as required by Code.
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 includes the following: install new roof, replace wall mounted
A1C units with a central H.V.A.C. system, replace all plumbing fixtures and replace all
damaged pipes and drains, pressure wash and paint exterior of the building, make
necessary repairs to electrical system to assure that the buildings comply with the City's
adopted code, install new cabinets in kitchens and install new vanity tops in the bathrooms,
replace the kitchen appliances, re-Iandscape entry, and provide security features as
necessary .
When MBCDC acquired the building, eight of the nine units were occupied. In order to
avoid displacement, all current income-eligible tenants will be grandfathered in.
Subsequently, when units become vacant, only elderly tenants will be permitted to lease.
In accordance with the HOME Program requirements, MBCDC will provide these rental
units for income-eligible tenants for a minimum of 10 years after the rehabilitation of the
\\CH2IVOI.1INEIGIHOUSINGIMIGUELLI5:!O MICHIGAN AVE MEMO. DOC
Commission Memorandum
February 20,2002
MBCDC: 530 Michigan A venue HOME Program Agreement
Page 3
building is completed.
MBCDC's application requested to utilize $333,300 from the funds available from the NOFA
from FY 2000/2001. The funds are to be utilized as follows: $100,000 to be applied to the
acquisition of the building, and $233,300 for the costs of development and rehabilitation.
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The Administration recommends that the Mayor and City Commission authorize the Mayor
and City Clerk to execute the attached HOME Investment Partnerships (HOME) Program
Agreement with Miami Beach Community Development Corporation (MBCDC) providing a
total of $333,300 in HOME Program funds from the HOME Program Notice of Funding
Availability (NOFA) for fiscal year 2000/2001, towards the cost of the acquisition and
rehabilitation of the apartment building located at 530 Michigan Avenue, Miami Beach, to
provide nine (9) rental units for income-eligible elderly tenants in accordance with the
HOME Program requirements; further, approving a one-time only assignment of this
agreement to MBCDC: 532 Michigan Avenue, LLC., a not-for-profit entity created by
MBCDC as a successor in interest in title to the property located at 530 Michigan Avenue
and u/!~ agreement.
JM~~~RS
\\cH2WOL lINEIG\HouUlg\MIGUELL\530 MICHIGAN AVE MEMO.doc