95-21567 Reso
.
RESOwnON NO. 95-21567
A RESOLUnON OF THE MAYOR AND cm COMMISSION OF THE
CITY OF MIAMI BEACH APPOINnNG A NINE-MEMBER AFFORDABLE
HOUSING ADVISORY COMMlnEE TO CONDUCT A STUDY OF THE
COSTS OF PROVIDING AFFORDABLE HOUSING FOR THE FLORIDA
STATE HOUSING INmAnvES PARTNERSHIP (SHIP) PROGRAM AND
DEFINING AFFORDABLE HOUSING AS APPUCABLE TO THE CITY'S
SHIP PROGRAM AND CONSISTENT WITH THE ADOPTED LOCAL
COMPREHENSIVE PLAN, AND PROVIDING AN EFFECnvE DATE.
WHEREAS. the State of florida enacted the Wlllam E. Sadowski Affordable Housing Ad (the Act)
on July 7. 1992. that allocates a portion of new and existing documentary stamp taxes on deeds to local
govemments for development and maintenance of affordable housing; and
WHEREAS. the Act specifies that an Affordable Housing Advisory Committee be appointed by the
Mayor and City Commission; and
WHEREAS. pursuant to said Id. It Is necessary to define .affordable housing" consistent with the
local adopted Comprehensive P\an.
NOW THEREFORE. be It resolved by the Mayor and CIty Commission of Miami Beach. florida. as
follows:
1. An Affordable Housing Advisory Committee shall be appointed to recommend to the Mayor and CIty
Commission monetary and non-monetary incentives for Inclusion In an "Affordable Housing Incentive Plan".
This plan which wll be prepared by the City's Housing and Community Development Division of the
Development, Design and Historic Preservation Services Department, must be adopted by the Mayor and
City Commission within twelve (12) months after establishing, by ordinance. the City's participation In the
SHIP Program.
The Affordable Housing Advisory Committee shall hold public meetings In which It reviews the established
policies and procedures, ordinances. land development regulations. and adopted local comprehensive plans
of the CIty. The Committee sha1I recommend specific incentives to encourage or facnitate affordable housing
whle protecting the abllty of the property to appreciate In value. Such recommendations may Include the
modification or repeal of existing policies. procedures. ordinances. regulations. or Plan provisions; the
creation of exceptions applicable to affordable housing; or the adoption of new policies. procedures,
regulations. ordinances. or Plan provisions.
The Affordable Housing AdvIsory Committee must make recommendations on affordable housing Incentives
In the following areas:
Affordable housing definition In the appointing resolution.
Expedited processing of permits Issued by the City of Miami Beach for affordable hOUSing proJects.
Provisions for prioritizing affordable housing projects must be identified.
Modification of Impact.fee requirements. Including reduction or waiver of fees and alternative
methods of fee payment.
Allowance of Increased density levels.
Reservation of Infrastructure capacity for housing for very low- and low-lncome persons.
Transfer 01 development rights as a financing mechanism for housing for very low- Income and low-
Incom8 persons.
Reduction of parking and setback requirements.
Allowance of zero 10t-lJne configurations.
ModlfJcatlon 01 street requirements.
Establishment of a process by which the City considers, before adoption. the Impact of proposed
policies, procedures, ordinances. regulations, or plan provisions have upon the cost of housing.
Preparation of a prIntecIlnventory of locally owned lands suitable for public housing.
Other affordable housing Jncent\Ves identified by the committee.
All the committee's recommendations must quantify the affordable housing cost reduction anticipated from
Implementing the specific recommendations, to the extent feasible.
NotwithstandIng the Committee's recommendations, the following specific incentives, at a minimum, must
be adopted by the Mayor and CIty CommIssIon:
A schedule for implementation of expedited permit processing for affordable housing proJects. and
A process for review of City policies, ordinances, regulations, and incentive plan provisions that
slgnlfJcantly Impact the cost of housing prior to their adoption.
2. The City Clerk Is herein authorized and directed to advertise the proposed appointment of the
following committee, and that applications from Interested Individuals be solicited from the community, and
upon receipt of expressions of Interest from sufficient numbers of individuals, the Mayor and City
Commission wDI appoint nine 01 such individuals to form the Affordable Housing AdvIsory Convnittee as
required by the SHIP Program. The committee must Include:
One (1) resident who Is actively engaged In the residential home buldlng JncIustry.
One (1) resident who Is actively engaged In the banking or mortgage banking Industry.
One (1) resident who Is a representative of those areas of labor engaged In home buDding.
One (1) resident who Is designated as an advocate for low Income persons.
One (1) resldentwho Is a provider of affordable housing.
One (1) resident who Is a real estate professional
Three (3) cltlzens-at-Jarge appointed by the Mayor and Commission.
3. This committee shaD cease to exist at the end of one year from the date of establishment.
4. The definition of "affordable housing" for the Clty's SHIP Program Is: housing where the occupants
pay no more than thirty (30) percent of gross Income for gross sing costs, Includln utDIty costs.
5. This Resolution shaD take effect Immediately upon Its ado
PASSED and ADOPTED this 3rd day of May, 1995.
Attest
~vl...J L.~
. City Clerk
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVe MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. ~
TO:
MeyorSe~ourG.lberand
Members of the City Commission
DATE:
May 3, 1995
FROM:
Roger M. Cartton
City Manager
AN ORDINANCE AND THREE IMPLEMEN11NG RESOlunONS AUTHORIZING THE
CITY OF MIAMI BEACH TO SUBMIT AN APPLICAnoN FOR FISCAL YEAR 1995
FUNDING IN THE AMOUNT OF $353.372 TO THE STATE DEPARTMENT OF
COMMUNITY AFFAIRS, FLORIDA HOUSING FINANCE AGENCY, FOR THE STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM.
f.OMINISTRAnON RECOMMENDAnON:
SUBJECT:
The Administration recommends that the Mayor and City CommisSiOn concurrently approve the attached
Ordinance on second reading (passed first reading on Apri 19, 1995) and three related ResolutionS which
will permit the City's Development Design and Historic Preservation ServiceS Department, Housing and
Community Deveiopment Division to apply for and administer $353,372 in FY 1995 funds available from
the Florida Department of Community Affairs under the State Housing Initiatives Partnership (SHIP)
program.
BACKGROUND:
Prior to the City Commission meeting of April 19, 1995 the following groups were fumished with a C>>f1f
of the proposed SHIP Program, Ordinance and related ResolutionS for review: the Miami Beach Ct1amber
of Commerce, the North Beach Development Corporation (NBDC), the Miami Beach Housing Authority
(MBHA), and the Miami Beach Development Corporation (MBOC) the Cly's designated Community
Development Housing Organization (CHDO) and whose Director also Chairs the Affordable Housing
Coalition.
Several persons present at the City Commission meeting, including thoSe Isted above, spoke on this
Issue, and suggested certain modifICations to the SHIP program Plan. The CIty ComI1'\iSSIOll approved
the Ordinance on first reading, contingent upon certain modifications to the SHIP Housing Assistance Plan,
and directed the City Administration to meet with the concerned organizationS.
On Monday April 24th at 10:00 am the aboVe referenced organizations and other interested parties met
in the Mayors Conference room, in order to further refine the SHIP Program P1anfApplication in accordance
with the City Commission's direction. The City is committed to working with the aboye referenced groups,
as well as other interested parties, as the SHIP Program evolves in Miami Beach.
Prior to the meeting a reYised copy of the SHIP Housing Assistance Plan had been prepared for
discussion. The following persons attended this meeting that was conducted by the City's Housing and
Community Development Director, and proYided input on the SHIP Plan revisions:
.
Bruce Singer, Miami Beach Chamber of Commerce
Ronnie Singer, North Beach Development Corporation
AGENDA ITEM ~ - ~ -t>
DATE 5-3-'t5-
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COMMISSION MEMORANDUM
MAY 3, 1995
PAGE 2
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Charles Burkett. North Beach Development Corporation
Jonathan Fryd, North Beach Development Corporation (member of the Community Development
Advisory Committee)
.
.
Denis Russ, Miami Beach Development Corporation and Chair of the Affordable Housing Coalition
Shawn Wilson. Miami Beach Development Corporation
Bob Saland. Affordable Landmar1<s
.
.
ANALYSIS:
Following the April 24th meeting, the SHIP Program Plan was once again revised and sent to aD of the
aboye listed parties. A copy of the newly revised SHIP Housing AssistanCe Plan is attached, with the
revisions noted in shaded text to ease review.
The SpecifIC changes focused on the City Commissions directiOn to address scattered sites. Thus, Section
1\1 entitled Proaram Strateaies (page 3) was reyised as followS:
-Strateav - Home OwnershiD Proaram
The City of Miami Beach will implement a single multi-year strategy for State FY 95-96, FY 96-97,
and FY 97-98, to further the City's goals relative to home ownershiP opportunities. The City's
SHIP Homeownership Program will help very low. low, and moderate income buyers. and persons
with special needs purchase affordable housing in the City of Miami Beach, as followS: 30% of the
units wiD be for very low income persons eaming at or below 50% of the median income. 30% of
the units will be for low income persons whose income is at or below 80% of the median income,
and the remaining units for persons at the moderate income level earning between 80% and 120%
of the median income level. These units will then be sold to eligible persons under this program.
To implement this strategy. scattered sites e.g. condominium units wiD be acquired and
rehabnitated. thus providing affordable homeownership opportunities as weD as improVIng the
City's existing housing stock. The City wishes to exercise fIexiblTIty in determining if this WIll be
individual sites or would allow seyeral condominium purchaseS in one bullcfmg. The City does
however stress the need for the spatial deconcentration of assisted housing units throughout the
City .-
Later in the text, Section III also states (on page 4):
-The City estimates that ten (10) units can be acquired and rehablTltated for ownership as followS:
30% of the units, will be for very low income persons eaming at or below 50% of the median
income. 30% of the units wiD be for low income persons whose income is at or below 80% of the
median income. and the remaining units for persons at the moderate income level eaming
between 800k and 120% of the median income level.
The RecaDture Provisions under Section III (page 5) were revised to mirror the HOME Program. The
participants at the April 24th meeting felt that the SHIP Program homebuyer should reanze the equity in
COMMISSION MEMORANDUM
MAY 3, 1995
PAGE 3
the property. It is the City's intent to allow the homeowner to realize the equity from their home. There
are two options that will be used to structure the resale of a unit under the HOME program, as follows:
.
.
Create another affordable housing unit by .recapturing" the City's financial inyestmenl
The City may permit sale of the property with fuR repayment of the SHIP Program
assistance. Funds subject to recapture, include any deyelopment subsidy or direct
assistance to the homebuyer that reduced the purchase price from Fair Market Value to
an a~ordable price.
Sell the existing property to as subsequent qualified purchaser. The subsequent
purchaser of the property must be eligible and occupy the property as the principal
residence. The sale of the property to the new qualified buyer must be at a price which
alloWS for a "fair retum of inyestment, Inclucfmg any improvemenf to the seller (the former
homebuyer), and also, the property must be "affordable" to a "reasonable range of
low/moderate income purchasers".
The Public InDut and Plan OeyeloDment Process in Section I and SectiOn II of the Local Housina
PartnershiDs section (pages 1 and 2) were revised to more accurately reftect the process for refining the
SHIP program Plan, and to document the recent meetings wherein input was obtained for the revisions
to the SHIP Plan.
The Affordabilitv Considerations (page 6) and the l-IomeownershlD Proaram Strateav (page 3) were
clarified to include the speciflc number of units per incOme range, in order to ensure that program
requirements were met, and that moderate income persons whose incOme is between 80% and 120% of
median income are speciflC8lly eligible.
AJ. Commissioner Dayid Pearlson's request, the Plan has been modified to include certain points raised
In the Imoact of NIMBYISm on Affordable Housina". (See Page 4).
In order to qualify for these funds the City must:
1. Adopt the attached "SHIP Ordinance" containing the following provisionS:
.
Create a Housing Assistance Trust Fund (essentially, a special bank account to hold the
SHIP funds).
.
Designate the implementation and administration responsibility to an entity. (Such as the
existing Housing and Community Development Division of the Development, Design and
Historic Preservation Services Department).
Create a nine (9) member "Affordable Housing Advisory Committee". whose main function
will be to produce a recommended "Affordable Housing Incentives Plan" for consideration
by the City, within twelve (12) months of passage of the SHIP Ordinance.
.
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COMMISSION MEMORANDUM
MAY 3. 1995
PAGE 4
2. Adopt the attached Resolution authorizing the submission of the -SHIP Program Plan-.
3. Adopt the attached Resolution creating a nine (9) member -Affordable Housing AdYisory
Committee., whose main function will be to produce an -Affordable Housing Incentives Plan- within
twelve (12) months of passage of the SHIP Ordinance.
4. Adopt the attached Resolution approYing the administrative cost amount for the SHIP Program
operated by the City not to exceed 10% of the allocated funds.
5. Submit a certification, signed by the Mayor and City Cieri(, indicating the City's Approval of the
Plan.
In keeping with the City Commission's direction on April 19th. the Housing and Community DeveJopment
Division staff finalized the SHIP Housing Assistance Program Plan (application), which will be received by
the State of Florida no later than the May 2nd deadline.
CONCLUSION:
The Administration recommends that the Mayor and City Commission concurrenUy approve the attached
Ordinance on second reading (passed first reading on Apri 19. 1995) and related ResolutionS which wiD
permit the City's Housing and Community Development Division to apply for and administer $353,372 in
FY 1995 funds available under the State Housing Initiatives Partnership (SHIP) Program.
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