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Home My WebLink About2002-24935 Reso RESOLUTION NO. 2002-23935 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 PARTNERSIDPS (HOME) PROGRAM AGREEMENT, DATED FEBRUARY 20, 2002, BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC) PROVIDING $170,538 IN HOME PROGRAM FUNDS FROM THE HOME PROGRAM NOTICE OF FUNDING AVAILABILITY (NOFA) FOR mSCAL 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. WHEREAS, the City has established a HOME Investment Partnerships Program (HOME Program) under the rules of the U.S. Department of Housing and Urban Development (HOD), 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; 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, on February 20, 2002, the City adopted Resolution No. 2002-224749 authorizing a HOME Program Agreement between the City and MBCDC providing $333,300 of funds from a HOME Program Notice of Funding Availability (NOFA) towards the acquisition and rehabilitation of a 20 unit apartment building at 530 Michigan Avenue, to provide rental housing for income-eligible elderly tenants in accordance with the HOME Program requirements; and WHEREAS, on May 10, 2002, the City received a second application from MBCDC requesting $170,538 from the same NOF A to complete the financing for the apartment building at 530 Michigan Avenue; and WHEREAS, on June 21, 2002, the City's Loan Review Committee recommended funding for an application from MBCDC for the requested $170,538 to be utilized towards the rehabilitation of the apartment building located at 530 Michigan Avenue, Miami Beach, to provide nine rental units for income-eligible elderly tenants in accordance with the HOME Program requirements. 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 February 20, 2002, between the City and Miami Beach Community Development Corporation (MBCDC), providing $170,538 in HOME Program funds from the HOME Program Notice of Funding Availability (NOF A) 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. PASSED AND ADOPTED THIS ATTEST: ~ CITY CLERK F:\NEIG\Houai8a\RUSSELL\RBSOLUTN\S30 Michigan_Rcsolution_lamendmcnt.doc APPROVED AS TO FORM" LANGUAGE .. FOR EXECUTION ~6-- 711Jl.- c# 2002 CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY lQ = ........ Condensed Title: A resolution providing $170,538 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 Avenue to provide 9 rental units for income-eliaible tenants in accordance with the HOME Prooram reouirements. Issue: Shall the City of Miami Beach provide $170,538 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 Avenue to provide 9 rental units for income-eligible elderly tenants in accordance with the HOME Proaram reouirements. Item Summa /Recommendation: On February 20,2002, the City committed $333,300 of HOME Program funds from a NOFA to MBCDC for the acquisition and rehabilitation of an apartment building at 530 Michigan Avenue. MBCDC is now requesting $170,538 from the same NOFA to complete the financing for this apartment building, which will rovide 9 units of rental housin to income-eli ible elderl tenants. Advisory Board Recommendation: On June 21, 2002, the City's Loan Review Committee recommended funding for an application from MBCDC for the requested $170,538 to be utilized towards the rehabilitation of the apartment building located at 530 Michioan Avenue. Financial Information: . Source of ~Ciui'lt ~UM ...... Ae~~.t1 Funds: 1 $170,538 151 .5230 HOME .2> Program 3 .. Finance Dept. Total $170,538 City Clerk's Office Legislative Tracking: I Miguell Del Campillo City Manage.. AGENDA ITEM DATE c. 77 7-3/-0;).. 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 Date: July 31, 2002 Members of the City Commission Jorge M. Gonzalez \,.v\.P'X City Manager 0' U 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 FEBRUARY 20,2002, BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC) PROVIDING $170,538 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. 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 (U.S. HUD) since 1992 for the purpose of expanding the supply of housing for persons meeting the income criteria ofthe 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. Commission Memorandum July 31, 2002 MBCDC.. First Amendment to HOME Program Agreement Page 2 In response to the NOFA, twenty application packages were picked up by interested individuals and entities. The City received two applications for funding, one from Florida Fair Housing, Corp. and another from the Miami Beach Community Development Corporation (MBCDC). Subsequently, Florida Fair Housing, Corp. withdrew its application. On February 20, 2002, the City committed $333,300 of HOME Program funds from the NOFA to MBCDC for the acquisition and rehabilitation of an apartment building at 530 Michigan Avenue. Of these HOME Program funds, $100,000 was used to reimburse MBCDC for capital funds they used to acquire the property. The balance of $233,300 was to be utilized for the rehabilitation of the building and to pay development costs. On May 10, 2002, the City received a second application from MBCDC requesting $170,538 from the same NOFA to complete the financing of the rehabilitation for the apartment building at 530 Michigan Avenue. In accordance with the terms of the NOFA, the application was reviewed by City staff for completeness and compliance with the terms of the NOFA and the HOME Program requirements. On June 21,2002, the City's Loan Review Committee (LRC) recommended funding for an application from MBCDC for the requested $170,538 to be utilized towards the 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. This $600,000 will be utilized to satisfy a market rate loan from Gulf Bank, which MBCDC assumed to acquire the property. MBCDC acquired the two-story, nine (9) unit apartment building at 530 Michigan Avenue on August 23, 2001. The property 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. MBCDC estimates the cost of the rehabilitation construction to be $280,538, which averages $47.17 per square foot. The development costs are estimated to be $123,300. MBCDC is proposing to combine the requested $170,538 with $233,300 of HOME Program funds committed on February 20, 2002 to provide the $403,838 needed to complete the financing of the rehabilitation. 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. Commission Memorandum July 31,2002 MBCDC: First Amendment to HOME Program Agreement Page 3 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 Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute a First Amendment to the HOME Investment Partnerships (HOME) Program Agreement, dated February 20,2002 between the City and Miami Beach Community Development Corporation (MBCDC) providing $170,538 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 nt in accordance with the HOME Program requirements. F:\NEIQ\HoI.IU1g\MIGELL ': " FIRST AMENDMENT TO HOME PROGRAM AGREEMENT THIS FIRST AMENDMENT TO THE AGREEMENT, entered into this3JJfday of Ju,:! 2002, by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, (City), and MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit Corporation, with offices located at 945 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to as Owner). WITNESSETH: WHEREAS, on September 28,2001, the City issued a HOME Program Notice of Funding Availability (NOFA) in the amount of$503,838 for the acquisitionandlorrehabilitationofmulti-family rental buildings or scattered site units for the purpose of providing affordable rental housing. WHEREAS, on February 20,2002, the City adopted Resolution No. 2002-24749, authorizing a HOME Program Agreement with Owner which committed $333,300 from the City's fiscal year 2000/2001 HOME Program NOFA; and WHEREAS, the City received a second application from the Owner requesting $170,538 from the same NOF A to complete the financing for the apartment building at 530 Michigan Avenue; and WHEREAS, on June 21,2002, the City's Loan Review Committee (LRC) recommended funding for an application from the Owner for the requested $170,538 to be utilized towards the rehabilitation of the apartment building at 530 Michigan Avenue to provide rental units for income- eligible elderly tenants; and WHEREAS, Owner warrants and represents that it possesses the legal authority to enter into this Agreement, by way of a resolution that has been duly adopted as an official act of the Board of Directors, authorizing the execution of this Agreement, including all understandings and assurances contained herein, and authorizing the person(s) identified as their official representative(s) to execute this Agreement and any other documents which may be necessary to implement this project; and WHEREAS, the City and the Owner now wish to amend the Agreement. NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, the parties hereto do hereby agree as follows; 1. In all references throughout the Agreement, the 10-year affordability period is replaced by the l5-year affordability period. - 1 - .. ", ?' 2. ARTICLE n, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in its entirety and amended as follows: In consideration of the performance by Owner of its role and responsibilities set forth in this Agreement, the City agrees to provide a conditional grant of HOME Program funds to Owner in the amount of Five Hundred Three Thousand Eight Hundred Thirty-Eight Dollars ($503,838) (Funds) from the HOME Program NOFA from Fiscal Year 2000/2001. 3. Except as amended by this Amendment, no term or condition of the Agreement shall be modified and the same shall remain in full force and effect; provided, however, if any revision ofthis Amendment is in conflict with, or inconsistent with, any information in the Agreement, the provision contained in this Amendment shall govern and control. 4. This Amendment shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto. IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day and date first above written. ATTEST: MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION a Florida not-for-profit corporation JJ\ '- ~ Secretary ~eSident, Authorized Signatory ATTEST: CI OF MIAMI BEACH a 10' . cipal corporation ~rp~ Mayor City Clerk F:\NEIG\Housing\RUSSELL\RESOL~30 MICIllGAN A VB AMEND AGREE.doc APPROVED J;.S TO FORM & lANGUAGE & FOR EXECUTION -2- ~ 7/~1- City Aftor ate EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT SOURCES AND USES OF FUNDS 530 MICHIGAN AVENUE ESTIMATED SOURCES OF FUNDS CITY OF MIAMI BEACH HOME PROGRAM FUNDS MIAMI-DADE COUNTY SURTAX INCENTIVE POOL FEDERAL HOME LOAN BANK $503,838 500,000 100.000 $1,103,838 USES OF FUNDS ACQUISITION OF PROPERTY PRE-DEVELOPMENT COSTS REHABILITATION CONSTRUCTION DEVELOPER'S FEE $700,000 73,300 280,538 50.000 $1,103,838 - 3 -