LTC 006-2018 CHDO funds conversion to entitlement funds in the aMIAMIBEACH
OFFICE OF THE CITY MANAGER
NO, LTC #
006-2018
LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of e City Co mission
FROM: Jimmy L. Morales, City Manager
DATE: January 8, 2018
SUBJECT: CHDO funds conversion to entitlement funds in the amount of $26,738.93
The purpose of this Letter to Commission is to advise you that the US Department of Housing and Urban
Development (HUD) has allowed the City of Miami Beach to convert expiring HOME Investment
Partnership (HOME) funds in the amount of $26,738.93 for Fiscal Years 2011-2014, enabling the City to
utilize these funds that would otherwise be forfeited.
Participating Jurisdictions (PJS) are required to commit at least fifteen (15) percent of each year's
allocation to Community Housing Development Organization (CHDO) projects. Historically, there have
only been two certified CHDO's in the City: Miami Beach Community Development (MBCDC) and
Carrfour Supportive Housing, Inc. MBCDC lost its CHDO certification in 2013 and has not demonstrated
financial capacity to undertake additional affordable housing projects. Carrfour Supportive Housing, Inc.
was certified as a CHDO for FY 16-17 and received an award of $92,885 in 2016 from CHDO Reserve
funds for the rehabilitation of Harding Village Apartments. Carrfour's agreement expired on April 30, 2017
and the City did not receive an extension request or an application to renew its CHDO certification.
On August 25, 2017, City staff reviewed the CHDO Reserve funding and found that the City exceeded its
CHDO funding requirement by $8.2 million since 1992. Because there are no agencies identified as
qualified CHDO's since 2016, the City requested HUD authorization to convert a total of $443,579.88
from available CHDO reserve funds to entitlement funds to ensure timely expenditure. At the time, there
was a deadline to expend CHDO Reserve funds in the amount of $62,954.10 by November 30, 2017.
On November 29, 2017, HUD advised the City that's effective January 31, 2017, CHDO subfunds for
fiscal year 2015 and successive grants cannot be reduced due to changes on methodology for deadline
compliance calculations from cumulative to grant specific funds. In order to prevent the expiration of the
full 2015 CHDO reservation requirement amount of $62,954.10, the City requested to uncommit the
amount of $26,738.93. This action decreased the CHDO reservation shortfall from $62,954.10 to
$36,215.17.
The City will issue Request for Letters of Interest to every Miami -Dade County agency identified as a
qualified CHDO, in hopes of identifying potential CHDO partners for future allocations.
If you have any questions please see me or Maria Ruiz, Director of Housing and Community Services.