99-23209 RESO
RESOLUTION NO. 99-23209
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
P ARTNERSIDPS (HOME) PROGRAM AGREEMENT WITH
THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), PROVIDING NINE HUNDRED
SEVENTY THOUSAND DOLLARS ($970,000) OF HOME
PROGRAM FUNDS FOR THE ACQUISITION AND
REHABILITATION OF THE CRESPI PARK APARTMENTS,
LOCATED AT 7900-7920 CRESPI BOULEVARD AND 1011
AND 1023 79TH STREET, MIAMI BEACH, TO PROVIDE
SIXTEEN (16) RENTAL UNITS FOR INCOME-ELIGIBLE
TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS; APPROVING AN AMENDMENT TO THE
CITY'S 1998/1999 ONE YEAR ACTION PLAN FOR FEDERAL
FUNDS REALLOCATING $224,397 OF FISCAL YEAR 1997/98
HOME FUNDS FROM A NOTICE OF FUNDING
AVAILABILITY AND $502,803 FROM FISCAL YEARS
1996/97 AND 1998/99 HOME PROGRAM FUNDS FROM THE
CITY'S MULTI-FAMILY HOUSING REHABILITATION
PROGRAM TO FUND TIDS INITIATIVE IN NORTH BEACH;
FURTHER, APPROVING A ONE-TIME ONLY ASSIGNMENT
OF THIS AGREEMENT TO MBCDC: CRESPI PARK
APARTMENTS, INC., A NOT-FOR-PROFIT ENTITY TO BE
CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN
TITLE TO THE CRESPI PARK APARTMENTS, AND UNDER
THIS AGREEMENT.
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 (BUD), which
provides financial 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 (CHDO) under the HOME Program; and
WHEREAS, in accordance with the HOME Program regulations, the City must reserve a
minimum of fifteen (15) percent of each fiscal year's HOME allocation for a CHDO set-aside for
investment in housing to be developed, sponsored or owned by CHDOs; and
WHEREAS, on December 2, 1998, the City adopted Resolution No. 98-22980, authorizing
a HOME Program Agreement with MBCDC which committed $787,800 from the City's HOME
Program allocation from fiscal years 1997/98 ($187,800) and 1998/99 ($600,000) for eligible CHDO
projects; and
WHEREAS, MBCDC has submitted a request to the City to utilize $242,800 of the
previously allocated fiscal year 1998 CHDO funds in conjunction with $727,200 of reallocated
HOME Program funds toward the acquisition and rehabilitation cost of the Crespi Park Apartments,
located at 7900-7920 Crespi Boulevard, and 1011 and 1023 - 79th Street, Miami Beach, for the
provision of 16 rental units for income-eligible tenants under the rules of the HOME Program; and
WHEREAS, the City wishes to amend the One Year Action Plan for Fiscal Year 1998/99
by reallocating HOME Program funds in the amount of $224,397 from the fiscal year 1997/98
Notice of Funding Availability and $502,803 from fiscal years 1996/97 and 1998/99 from the Multi-
Family Housing Rehabilitation Program to provide $727,200 as a CHDO allocation of funds for the
acquisition and rehabilitation of the Crespi Park Apartments; and
WHEREAS, on April 23, 1999, the City's Loan Review Committee reviewed and
recommended approval by the City Commission of MBCDC's funding request for the acquisition
and rehabilitation of the Crespi Park Apartments and recommended approval of the proposed
amendment to the City's 1998/99 One Year Action Plan for federal funds.
WHEREAS, Owner intends to create a not-for-profit entity which will assume all interest
and title to the Crespi Park Apartments and be a successor in interest to MBCDC pursuant to this
Agreement; and
WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment
of this Agreement to MBCDC: Crespi Park Apartments, Inc.
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 the Miami Beach Community Development Corporation (MBCDC), providing Nine
Hundred Seventy Thousand Dollars ($970,000) of HOME program funds for the acquisition and
rehabilitation of the Crespi Park Apartments, located at 7900-7920 Crespi Boulevard and 1011 and
1023 79th Street, Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in
accordance with the HOME Program requirements; approving an amendmeI!t to the City's
1998/1999 One Year Action Plan for federal funds reallocating $224,397 of fiscal year 1997/98
HOME funds from a Notice of Funding Availability and $502,803 from fiscal years 1996/97 and
1998/99 HOME Program funds from the City's Multi-Family Housing Rehabilitation Program to
fund this initiative in North Beach; further, approving a one-time only assignment of this Agreement
to MBCDC: Crespi Park Apartments, Inc., a not-for-profit entity to be created by MBCDC as a
successor in interest in title to the Crespi Park Apartments, and under this Agreement.
PASSED AND ADOPTED THIS 9th DAY OF June ,1999
ATTEST:
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CITY CLERK
~
MAYOR
F:\DDIIP\SALLIBE1lI\CRESPI\79CRESPI.RES
APPROVED AS TO
FORM & LANGUAGE
& fOR EXECUT:ON
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\cl.mlaml-beach.f1.us
COMMISSION MEMORANDUM No.!:J..3 \ -~4
TO:
Mayor Neisen O. Kasdin and
Members of the City C mission
DATE: June 9, 1999
FROM: Sergio Rodriguez
City Manager
SUBJECT: OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT
P ARTNERSIDPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
PROVIDING NINE HUNDRED SEVENTY THOUSAND DOLLARS
($970,000) OF HOME PROGRAM FUNDS FOR THE ACQUISITION AND
REHABILITATION OF THE CRESPI PARK APARTMENTS, LOCATED
AT 7900-7920 CRESPI BOULEVARD AND 1011 AND 1023 79TH STREET,
MIAMI BEACH, TO PROVIDE SIXTEEN (16) RENTAL UNITS FOR
INCOME-ELIGmLE TENANTS IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS; APPROVING AN AMENDMENT TO THE
CITY'S 1998/1999 ONE YEAR ACTION PLAN FOR FEDERAL FUNDS
REALLOCATING $224,397 OF FISCAL YEAR 1997/98 HOME FUNDS
FROM A NOTICE OF FUNDING AVAILABILITY AND $502,803 FROM
FISCAL YEARS 1996/97 AND 1998/99 HOME PROGRAM FUNDS FROM
THE CITY'S MULTI-FAMILY HOUSING REHABILITATION PROGRAM
TO FUND TIllS INITIATIVE IN NORTII BEACH; FURTHER, APPROVING
A ONE-TIME ONLY ASSIGNMENT OF TIllS AGREEMENT TO MBCDC:
CRESPI P ARK APARTMENTS, INC., A NOT-FOR-PROFIT ENTITY TO BE
CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO
THE CRESPI PARK APARTMENTS, AND UNDER TIDS AGREEMENT.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution
BACKGROUND:
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
AGENDA ITEM ~, D
DATE G:, - 9 - 99
COMMISSION MEMORANDUM
Page 2
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 minimwn 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 either
the owner, sponsor or developer of the housing. The Miami Beach Community Development
Organization (MBCDC) was designated as a CHDO in 1993.
In an effort to address the need to rehabilitate the existing housing stock in the North Beach area,
MBCDC has proposed the acquisition and rehabilitation of the Crespi Park Apartments located on
three adjacent parcels at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street, to provide
sixteen (16) rental units for income-eligible tenants. For this initiative, MBCDC has requested
$727,200 in HOME Program CHDO funds to be utilized in conjunction with $242,800 of HOME
Program CHDO funds previously committed to MBCDC for a total of$970,000 of HOME Program
funds. The proposed amendment of the City's One-Year Action Plan for federal funds reallocates
HOME Program funds from citywide activities to this specific initiative in North Beach.
MBCDC has entered into three contracts for sale and purchase in the total amount of $730,500 for
the acquisition of the Crespi Courts Apartments, 7900-7920 Crespi Boulevard, the Israbian
Apartments, 1023 79th Street along with an adjacent lot located at 1011 79th Street. The properties
were recently appraised at $730,000. The total cost of this initiative, including rehabilitation of the
building, is estimated at $1,282,825. MBCDC has a commitment from the Florida Department of
Community Affairs for a zero (0) percent loan in the amount of $238,000 and a bank loan for the
balance. In addition, MBCDC is making the commitment to pursue other funds from Miami-Dade
County. If MBCDC receives funding from the County for this project, then the City's HOME
Program contribution would be reduced proportionately.
Since federal funds would be provided for this project, the provisions of the Uniform Relocation Act
(URA) apply. Currently, nine of the 16 apartments are occupied. As required by the URA, MBCDC
has conducted initial tenant surveys. Based on these surveys, it appears that none of the tenants will
be permanently displaced as a result of the project. Temporary relocation of some tenants within
the buildings may be needed in order to complete the rehabilitation. In the event that there are
relocation expenses, MBCDC would use bank loan proceeds to cover the costs.
ANALYSIS:
The Crespi Park Apartments is composed of three buildings and a parking lot on two adjacent
properties. The buildings are currently named the Crespi Court Apartments and the Israbian
Apartments. When the project is completed, the three buildings will be collectively named the
Crespi Park Apartments.
The Crespi Courts Apartments, 7900 and 7920 Crespi Boulevard are two Post-War Modem
buildings built in 1954, each with four units, located in the North Beach District. The two buildings
COMMISSION MEMORANDUM
Page 3
currently contain 8 two-bedroom apartment units, with a total of approximately 8,268 square feet.
MBCDC is proposing to rehabilitate the buildings without changing the room layout On November
20, 1998, MBCDC entered into a contract for sale and purchase in the amount of $320,000 for the
purchase of the Crespi Courts Apartments. Since then, in order to retain site control, the purchase
price was increased by $5,000.
The Israbian Apartments, 1023 -79th Street is a two-story Post War Modem building built in 1949
located adjacent to the Crespi Courts Apartments. The building contains 6 one-bedroom apartments,
and 2 two-bedroom apartments. The building has a total of 5,205 square feet MBCDC is
proposing to rehabilitate the building without changing the room layout. On December 8, 1998,
MBCDC entered into contracts for sale and purchase in the amount of $400,000 for the purchase of
the Israbian Apartments, along with an adjacent lot located at 1011 79th Street used for off-street
parking. Since then, in order to retain site control, the purchase price was increased by $5,500.
MBCDC is proposing to rehabilitate the buildings to provide sixteen (16) units of rental housing,
consisting often (10) two-bedroom units and six (6) one-bedroom units. In accordance with the
HOME Program regulations, the units will be provided to families and individuals meeting the
income requirements of the program for a minimum of 15 years. An architect has been
commissioned to develop the renditions and exterior improvements which will result in a cohesive
appearance of the three adjacent properties. The proposed scope of work iIicludes the following:
installation of upgraded air conditioning systems, upgI'adingof electriCal and plumbing systems, new
appliances, cabinets, doors, bathroom fiXtures, lighting fixtures, new windows, hurricane shutters,
interior and exterior modifications including ramps to meet ADA requirements, upgraded laundry
facilities, improvement of trash enclosure, new roof for two of the buildings and roof repairs on the
third building, improvements to the parking lot, landscaping, and site fencing.
The floor grade of the first level of the buildings 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, as required, and to maintain acceptable flood insurance
coverage for the life of the project.
On April 23, 1999, the Loan Review Committee reviewed and recommended approval by the City
Commission of MBCDC's funding request for the Crespi Park Apartments. In order to fund this
initiative, the Loan Review Committee approved a motion to amend the City's fiscal year 1998/99
One Year Action Plan for federal funds in order to reallocate $502,803 HOME Program funds from
fiscal years 1996/97 and 1998/99 from the City's Multi-Family Housing Rehabilitation Program and
$224,397 from fiscal year 1997/98 HOME Program funds from a Notice of Funding Availability
issued in September 1998 and no responsive applications were received by the City. In accordance
with HUD regulations and the adopted Citizen Participation Plan, the Administration advertised on
April 29, 1999 a 30-day citizen comment period on the proposed amendment. No comments were
received.
COMMISSION MEMORANDUM
Page 4
CONCLUSION:
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 the
Miami Beach Community Development Corporation (MBCDC), providing Nine Hundred Seventy
Thousand Dollars ($970,000) of HOME program funds for the acquisition and rehabilitation of the
Crespi Park Apartments, located at 7900-7920 Crespi Boulevard and 1011 and 1023 79th Street,
Miami Beach, to provide sixteen (16) rental units for income-eligible tenants in accordance with the
HOME Program requirements; approving an amendment to the City's 1998/1999 One Year Action
Plan for federal funds reallocating $224,397 offisca1 year 1997/98 HOME funds from a Notice of
Funding Availability and $502,803 from fiscal years 1996/97 and 1998/99 HOME Program funds
from the City's Multi-Family Housing Rehabilitation Program to fund this initiative in North Beach;
further, approving a one-time only assignment of this Agreement to MBCDC: Crespi Park
Apartments, Inc., a not-for-profit entity to be created by MBCDC as a successor in interest in title
to the Crespi Park Apartments, and under this Agreement.
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HOME PROGRAM AGREEMENT
THIS AGREEMENT, entered into this~ day ofvUAlt. 1999, 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 1205 Drexel
Avenue, Miami Beach, Florida (hereinafter referred to as Owner).
WITNESSETH:
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department of
Housing and Urban Development (HUD) as a Participating Jurisdiction for the receipt of funds
through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and
WHEREAS, the City has entered into an agreement with HUD for the purpose of conducting
an affordable housing program with federal financial assistance under the HOME Program; and
WHEREAS, on April 8, 1993, the Mayor and City Commission, approved Resolution No.
93-20756, designating Owner as a qualified Community Housing Development Organization
(CHDO) under the HOME Program; and
WHEREAS, on December 2, 1998, the Mayor and City Commission approved Resolution
No. 98-22980, authorizing a HOME Program Agreement with MBCDC which committed $787,800
from the City's HOME Program allocation, $187,800 from fiscal year 1997/98, and $600,000 from
fiscal year 1998/99 for eligible CHDO projects; and
WHEREAS, Owner shall utilize $242,800 of previously committed fiscal year 1998 CHDO
funds and $727,200 of reallocated HOME Program funds toward the acquisition and rehabilitation
cost of Crespi Park Apartments, located at 7900-7920 Crespi Boulevard, and Israbian Apartments,
1011 and 1023 - 79th Street, Miami Beach, for the provision of sixteen (16) rental units for families
and individuals qualified under the HOME Program (Project); and
WHEREAS, on April 23, 1999, the City's Loan Review Committee reviewed and
recommended approval by the City Commission of MBCDC's funding request for the acquisition
and rehabilitation of this CHDO Project; 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, Owner intends to create a not-for-profit entity which will assume all interest and
title to the Crespi Park Apartments and be a successor in interest to MBCDC pursuant to this
Agreement; and
1
WHEREAS, accordingly, the City herein agrees and consents to a one-time only
assignment of this Agreement to MBCDC: Crespi Park Apartments, Inc.
NOW, THEREFORE. in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement the terms listed below shall have the following meanings:
(a) HOME Program: HOME Investment Partnerships Program, as set forth in 24 CFR Part 92,
as amended.
(b) HUD: United States Department of Housing & Urban Development or any successor
agency.
(c) Funds: HOME Program funds.
(d) CHDO: Community Housing Development Organization as defined in the HOME Investment
Partnerships Program. 24 CFR, Part 92, as amended, and CPD Notice 94-02.
(e) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92.
and any amendments thereto, not otherwise defined in this Agreement, shall have the meaning set
forth in said Rule.
(e) HOME Assisted Units: A term that refers to the number of units in a project assisted with
HOME Program funds for which rent, occupancy. and resale/recapture restrictions apply.
ARTICLE"
ALLOCATION OF HOME FUNDS
In consideration of the performance by Owner of its role and responsibilities set forth in this
Agreement, the City agrees to provide a Grant of HOME funds to Owner in the amount of Nine
Hundred Seventy Thousand Dollars ($970,000) (Funds) consisting of CHDO set-aside funds of
$242.800 from fiscal year 1998/99. and $727,200 in funds reallocated to the CHDO by an
amendment to the City's 1998/99 One-Year Action Plan for federal funds.
The Funds will be utilized by Owner for a CHDO project that provides for the acquisition and
rehabilitation of adjacent properties located at 7900 - 7920 Crespi Boulevard, and 1011 and 1023 -
79th Street, that will provide 16 rental units for income qualified families and individuals. Owner
will acquire and rehabilitate the Project as more fully described in the Scope of Services (Exhibit
A) and Budget (Exhibit B). Owner will maintain required HOME Program rent and occupancy
limitations for a minimum period of 15 years (the Affordability Period) commencing with the
issuance of the final approved Certificate of Completion by the City's Building Department following
the planned rehabilitation.
2
ARTICLE III
PROCEEDS FROM HOME INVESTMENT
In accordance with the 24 CFR Part 92.300 (a)(2), Owner may retain the proceeds from the
investment of its CHDO set aside funds for use in other housing activities which benefit low.;income
families.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM
Owner expressly agrees to the following terms and conditions in conformity with the HOME
Program Final Rule.
(a) Repayment of Funds. The Funds (which definition shall include the allocation of any
additional funds that may be provided by the City in the future as a result of an amendment or
modification of this Agreement) shall be repaid in their entirety if the HOME units do not meet the
affordability requirements for the required time period in accordance with the terms of this
Agreement and the HOME Program Regulations. Any violation of these requirements may, at the
City's option, result in the entire amount of the Funds, as indicated in Article II or as subsequently
amended or modified, being returned and/or otherwise repaid by Owner to the City, and same shall
be considered and treated as an event of default resulting in the City's termination for cause of the
Agreement, pursuant to Article XXVI herein. The City reserves the right to review the affordability
requirements, as set forth herein. Concurrent with its execution of this Agreement and/or any
projects pursuant to this Agreement, Owner shall execute a Mortgage and Note in the format
provided by the City, incorporating the terms of this section, which shall be recorded in the Official
Records of Miami-Dade County Florida.
(b) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR
92.252, as published from time-to-time by HUD. The City shall provide a HOME Program rent
schedule annually to Owner.
(c) Rent schedule and utility allowances. In accordance with 24 CFR 92.252(b)(c) and
(d), the City must review and approve rents and the monthly utility allowances proposed by the
owner prior to initial occupancy. Owner must re-examine and document the income of each tenant
living in the HOME assisted units annually. The maximum monthly rent must be recalculated by
Owner and reviewed and approved by the City annually. Any increase in rents for HOME-assisted
units is subject to the provisions of outstanding leases and, in any event, the owner must provide
the tenant with not less than 30 days written notice before implementing any rent increase.
(d) Owner shall comply with all applicable federal regulations as they may apply to
restrictions and limitations regarding real property under Owner's control acquired or improved in
whole or in part with HOME funds.
(e) The Project must provide safe, sanitary, and decent residential housing for income
eligible tenants (Le., persons whose income is within specific income levels set forth by HUD).
(f) Income Targeting. Owner shall maintain written documentation that conclusively
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demonstrates that the project assisted in whole or in part with HOME funds provides benefit to
very-low income households (annual income does not exceed 50 percent of the median family
income for the area) and low-income households ( annual income does not exceed 80 percent of
the median income for the area) as required.
(9) Records: Owner shall maintain all records sufficient to meet the requirements of 24
CFR 92.508(a)(2) program records, 92.508(a)(3) project records, 92.508(a)(5) other Federal
requirements records, 92.508(a)(6) program administration records. All records required herein
shall be retained and made accessible as provided in 24 CFR 92.508 (c) and (d) and Florida
Statutes Chapter 119.
(i) Property Standards. For the duration of this Agreement and any amendments hereto,
housing that is assisted with HOME funds, must meet all applicable local codes, rehabilitation
standards, ordinances and zoning ordinances at the time of project completion. The City shall
conduct annual or bi-annual, as required, on-site inspections of the project to assure compliance
with housing codes. The City may select a sample of the units in the project to satisfy the
inspection requirements.
G) Environmental Review. For the Project described in the Scope of Services (Exhibit A),
attached hereto, Owner shall obtain a Phase I, Environmental Assessment, and agree to mitigate
any hazardous conditions identified therein.
(k) Affirmative Marketing. In order to provide persons in the housing market area with
a range of housing choice, regardless of race, color, religion, sex, handicap, familial status, or
national origin, Owner agrees to administer the HOME Program in a manner that will affirmatively
further the purposes of Title VI of the Civil Rights Act of 1964 at 24 CFR 1, the Fair Housing Act
at 24 CFR 100 and Executive Order 11063 at 24 CFR 107. Owner will submit its written
procedures that implement these requirements for review and approval by the City.
(I) Tenant and Participant Protection. Owner agrees that the lease to be executed with
the tenants of rental housing will be in accordance with 24 CFR Part 92.253. Furthermore, if
HOME assistance is provided to a CHOO, the CHOO must adhere to a fair lease and grievance
procedure approved by the City and provide a plan for and follow a program of tenant participation
in management decisions (24 CFR Part 92.303).
(m) CHDO Capabilities. Owner, as a CHOO, agrees that it will function as an owner of
the Project and that it shall have effective management control.
(n) Change in Status. Owner agrees to advise the City in writing within thirty (30) days
of any organizational, operational or legal status changes made by Owner that affect documents
that were submitted by Owner to obtain CHOO status.
ARTICLE V
ELIGIBLE COSTS
Owner agrees that eligible costs for the Project under this Agreement are limited to those
eligible costs as outlined in 24 CFR Part 92.206 of the HOME Program regulations.
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ARTICLE VI
DISBURSEMENT OF FUNDS
(1) The Funds shall be used by Owner for acquisition of real property, rehabilitation and related
soft costs.
(2) The portion of the Funds to be used towards the cost of rehabilitation shall be disbursed by
the City to Owner as follows: During the construction phase, and not more often than once a
month, a payment may be requested equivalent to ninety percent (90%) of the value of the work
completed in the previous period, as certified by Owner's Architect or Engineer, and confirmed by
the City's Community/Economic Development Department. The final ten percent (10%) of the
rehabilitation payment shall be paid following the completion, approval and acceptance of the
rehabilitation work and related documentation by all the governmental agencies and authorities
having jurisdiction over the Project.
(3) Any payment due under the terms of this Agreement may be withheld pending the receipt
and approval by the City of all reports and documents which Owner is required to submit to the City
pursuant to the terms of this Agreement or any amendments thereto.
(4) No payments will be made without evidence of appropriate insurance required by this
Agreement. Such evidence must be on file with the City.
(5) Owner understands and agrees that disbursement requests for funds under this Agreement
are only to be requested when the funds are needed for payment of eligible costs. The amount of
each request must be limited to the amount needed.
ARTICLE VII
SUBCONTRACTS
(a) Owner shall use its best efforts to include a statement in all subcontracts that it executes
that the subcontractor shall hold the City harmless against all claims of whatever nature arising out
of the subcontractor's performance of work under this Agreement to the extent allowed by law.
(b) If Owner subcontracts, a copy of the executed subcontract must be forwarded to the City
within ten (10) days after execution.
ARTICLE VIII
CONDITIONS OF SERVICE
(a) As a condition of these services, Owner agrees to comply with the HOME Program Final
Rule, 24 CFR Part 92, and any Amendments or Notices issued pursuant thereto.
(b) Owner agrees to comply with the requirements of Executive Orders 11625 and 12432
concerning Minority Business Enterprise and 12138 Women's Business Enterprise which
encourage the use of minority and women's business enterprises, to the maximum extent possible,
in connection with HOME-funded activities.
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(c) Owner agrees to comply with the requirements of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR Part
24. The Owner acknowledges having received the HUD Manual entitled "All the Right Moves:
Relocation and Assistance In HUD Programs" and HUD Handbook 1378 and will comply with all
requirements contained therein.
(d) Owner agrees to comply with all of the following federal laws, executive orders, and
regulations pertaining to fair housing and equal opportunity.
(1) Title VI of the Civil Rights Act of 1964, As Amended (42 U.S.C. 2000d) - pertaining
to discrimination under any program or activity receiving federal financial assistance on the basis
of race, color, or national origin. Its implementing regulations may be found in 28 CFR Part 1.
(2) Title VIII ofthe Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42
U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115 - Prohibiting discrimination
in the sale or rental of units in the private housing market.
(3) Equal Opportunity in Housing (Executive Order 11063, as amended by Executive
Order 12259) and implementing regulations at 24 CFR Part 107 -- Prohibiting discrimination in
housing or residential property financing related to any federally assisted activity.
(4) Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101) and its implementing
regulations at 24 CFR Part 146 -- Prohibiting age discrimination in programs receiving federal
financial assistance.
5) Equal Employment Opportunity, Executive Order 11246, As Amended and its
implementing regulations at 41 CFR Part 60 - Prohibiting discrimination against any employee or
applicant for employment. Provisions to effectuate this prohibition must be included in all
construction contracts exceeding $10,000.
(e) Owner agrees to comply with the requirements of Section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u) -- Requires that, to the greatest extent feasible,
opportunities for training and employment arising from HOME funded projects will be provided to
low-income persons residing in the program service area; and, to the greatest extent feasible,
contracts for work to be performed in connection with HOME funded projects will be awarded to
business concerns that are located in, or owned by persons residing in the program service area.
(f) Owner will ensure that all units in a project assisted with HOME funds comply with the
Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et) and its implementing
regulations at 24 CFR 35.
(g) Owner agrees to comply with the Federal Labor Standards Provisions, as described in
HUD Handbook 1344-1 (Federal Labor Standards Compliance in Housing and Community
Development Programs).
(h) Owner agrees to comply with the requirements of 24 CFR part 24 regarding debarment
and suspension.
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ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be effective upon execution by both parties and shall terminate at the
conclusion of the 15 year period of affordability as specified in 24 CFR 92.252 (affordable rental
housing).
ARTICLE X
TERMINA TION
The City and Owner agree that this Agreement may be terminated by the City, in whole or
in part, for cause (as defined in Article XXVI herein and in accordance with the provisions of 24
CFR Part 85.43) or for convenience (as defined in Article XXVII and in accordance with the
provisions of 24 CFR, Part 85.44). A written notification shall be required at least thirty (30) days
prior to the effective date of such termination, and shall include the reason for the termination (if
for cause), the effective date, and in the case of a partial termination, the actual portiones) to be
terminated.
ARTICLE XI
AMENDMENTS
Any alterations, variations, modifications or waivers of any provisions of this Agreement,
including an increased allocation of funds, shall only be valid when they have been reduced to
writing and signed by the City and Owner.
ARTICLE XII
CONFLICT OF INTEREST
(a) Owner shall comply with the standards contained within 24 CFR Part 92.356 which states
that no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee,
agent or consultant of the owner, developer or sponsor) whether private-for-profit or non-profit, may
occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to an
employee or agent of the owner or developer of a rental housing project who occupies a HOME-
assisted unit as the project manager or maintenance worker. Exceptions may be granted by the
City in accordance with 24 CFR Part 92.356(f)(2).
(b) Owner shall disclose any possible conflicts of interest or apparent improprieties of any party
that is covered by the above standards. Owner shall make such disclosure in writing to the City
immediately upon Owner's discovery of such possible conflict. The City will then render an opinion
which shall be binding on all parties.
(c) Related Parties. Owner shall report to the City the name, purpose, and any other relevant
information in connection with any related-party transaction. This includes, but is not limited to, a
for-profit subsidiary or affiliate organization, an organization with overlapping boards of directors,
or an organization for which an officer of the Owner is responsible for appointing memberships.
Owner shall report this information to the City upon forming the relationship or, if already formed,
shall report it immediately. Any supplemental information shall be reported to the City in the
required Annual Report.
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ARTICLE XIII
INDEMNIFICATION AND INSURANCE
Owner, through an insurance carrier, shall indemnify and hold harmless the City from any
and all claims, liabilities, losses, and causes of action which may arise out of an act, omission,
negligence or misconduct on the part of Owner or any of its agents, servants, employees,
contractors, patrons, guests, clients, or invitees. Owner, through its insurance carrier, shall pay
all claims and losses of any nature whatsoever in connection therewith and shall defend all suits
in the name of the City, when applicable, and shall pay all costs and judgements which may issue
thereon.
Owner shall maintain during the term of this Agreement, the insurance specified below.
(1) General Liability: $500,000 combined single limit for bodily injury and property damage, for
each occurrence.
(2) Contractual Liability: the policy must include coverage to cover the above indemnification.
(3) Automobile and vehicle coverage in the amount of $500,000 per occurrence shall be
required when the use of automobiles and other vehicles are involved in any way in the
performance of the Agreement, including non-owned automobile coverage.
(4) Workers' Compensation Coverage as per statutory limits of the State of Florida.
(5) Builders Risk/Comprehensive Fire and Hazard Insurance: Owner shall deliver to the City
the original policy of Builder's Risk and Comprehensive Fire and Hazard Insurance in completed
value form with extended coverage in the amount of the full insurable value of the Project upon
completion of construction, issued by a company satisfactory to the City.
(6) Flood Insurance: Owner shall deliver to the City evidence satisfactory to the City that the
premises are covered by flood insurance supplied by the Federal Insurance Administration to the
maximum amount available, all as provided in the Flood Disaster Protection Act of 1973, as
amended, together with appropriate endorsement. Owner agrees that the City shall have the right
to take any action necessary to continue said insurance in full force.
Owner shall submit to the City an ORIGINAL Certificate of Insurance for the above
coverage with the City named as an additional insured, to the extent of its insurable interest on all
policies required herein. All insurance coverage shall be approved by the City's Risk Manager
prior to the release of any funds under this Agreement. Further, in the event evidence of such
insurance is not forwarded to the City's Risk Manager within thirty (30) days after the execution of
this Agreement, this Agreement shall become null and void, and the City shall have no obligation
under the terms thereof unless a written extension of this thirty (30) day requirement is secured
from the Risk Manager.
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ARTICLE XIV
REPORTS
(1) Progress Reoorts. Owner agrees to submit monthly progress reports to the City, describing
the status of the Project and achievement of objectives as provided herein and in the Scope of
Services (Exhibit A) and Budget (Exhibit B), attached hereto. The progress reports shall be
submitted no later than 10 days after the end of each month until such time as all funds are
expended or, for rental projects, until the project is fully occupied.
It will be the responsibility of Owner to notify the City in writing, of any actions, law, or event,
that will impede or hinder the completion projects and activities as provided in this Agreement.
After such notification, the City will take whatever actions it deems appropriate to ensure the
success of the program.
(2) Tenant and Rent Schedule Certification.
a. Owner shall submit to the City for approval the proposed rents for the HOME units and, if
applicable, the monthly allowances for utilities and services to be paid by the tenant. The City shall
approve submitted rents if such rents comply with applicable Federal standards, or if HUD has
approved same.
b. Owner shall provide the City with the initial tenant list, and any and all subsequent updates,
amendments and modifications thereto, with documentation for all tenants in the HOME units
confirming family size, income, financial classification, ethnicity, HOME rents charged and other
information the City may require to fulfill its reporting requirements to HUD. This report will
continue to be required for the full period of affordability hereunder beginning on the date of
issuance of a Final Certification of Completion for the Project. The initial report shall be due within
thirty (30) days of project lease-up.
c. Annually, Owner shall deliver to the City's Housing and Community Development Division,
by October 31st of each calendar year, its signed report in form and substance acceptable to the
City, to include names of tenants, unit type, family size and income, rents charged, and
occupancy/vacancy factor of each unit for the prior fiscal year (October 1 st through September
30th). The report will continued to be required for the full 15-vear period of affordability hereunder
beginning on the date of issuance of a Final Certificate of Completion for the project.
(3) Other reports as may be required by the City to demonstrate compliance with any of the
terms of this Agreement.
If the required reports described above are not submitted to the City or are not completed
in the manner acceptable to the City, the City may withhold further payments until they are
completed or may take any other action as the City may deem appropriate.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City administration and/or the
9
Comptroller of the Currency of the United States may deem necessary, there shall be made
available to the City administration and/or representatives of the Comptroller to audit, examine and
make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of
employment and other data relating to all matters covered by this Agreement. If during the course
of a monitoring visit, the City determines that any payments made to Owner do not constitute an
allowable expenditure, the City will have the right to deduct those amounts from their related
invoices. Owner must maintain records necessary to document compliance with the provisions of
this Agreement.
ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS
Owner agrees to comply with all applicable Federal regulations as they may apply to
program administration. Additionally, Owner will comply with all State and local laws and
ordinances hereto applicable.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
(b) In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached document, the terms in this Agreement shall rule.
(c) No waiver or breach of any provision of this Agreement shall constitute a waiver of any
subsequent breach of the same or any other provision hereof, and no waiver shall be effective
unless made in writing.
ARTICLE XVIII
ACCESS TO RECORDS
Owner, agrees to allow access during normal business hours to all financial records to
authorized Federal, State or City representatives and agrees to provide such assistance as may
be necessary to facilitate financial audit by any of these representatives when deemed necessary
to insure compliance with applicable accounting and financial standards. Owner shall allow access
during normal business hours to all other records, forms, files, and documents which have been
generated in performance of this Agreement and to those personnel as may be designated by the
City.
ARTICLE XIX
SEVERABILITY OF PROVISIONS
If any provision of this Agreement is held invalid, the remainder of this Agreement shall not
be affected thereby if such remainder would then continue to conform to the terms and
requirements of applicable law.
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ARTICLE XX
PROJECT PUBLICITY
Owner agrees that any news release or other type of publicity pertaining to the project as
stated herein must recognize the City as the recipient funded by the United States Department of
Housing and Urban Development, and that the Program is administered by the City's Community
and Economic Development Department, which is the entity providing funds for the Project.
ARTICLE XXI
DRUG-FREE WORKPLACE
Owner agrees to administer in good faith, a policy to ensure that it complies with the Drug-
Free Workplace Act requirements under 24 CFR Part 24, SUbpart F, and will ensure that the
workplace is free from the unlawful manufacture, distribution, dispensing, possession or use of
drugs or alcohol.
ARTICLE XXII
NONDELEGABLE
Owner agrees that the obligations undertaken pursuant to this Agreement shall not be
delegated or assigned to any other person or firm unless the City shall first consent in writing to the
performance or assignment of such service or any part thereof by another person or firm.
ARTICLE XXIII
SUCCESSORS AND ASSIGNS
Owner agrees that this Agreement shall be binding upon the parties herein, their heirs,
executors, legal representatives, successors, and assigns.
ARTICLE XXIV
INDEPENDENT CONTRACTOR
Owner and its employees and agents shall be deemed to be independent contractors and
not agents or employees of the City, and shall not attain any rights or benefits under the Civil
Service or Pension Ordinances of the City, or any rights generally afforded classified or unclassified
employees; further he/she shall not be deemed entitled to the Florida Workers' Compensation
benefits as an employee of the City.
ARTICLE XXV
ASSIGNMENT
This Agreement may not be assigned or transferred by Owner without the prior written
consent of the City thereto, which consent shall not be unreasonably withheld. It shall be deemed
a default of this Agreement in the event that Owner does not strictly comply with the procedures
established herein for obtaining City consent to assignment or transfer as defined by this
Paragraph. In the event such consent is not obtained, in the manner prescribed herein, the City
shall be entitled to declare a default, cancel this Agreement, and resort to its rights and remedies
against the defaulting party. In the event the Provider transfers an interest of more than one (1 %)
percent ownership in its stock by pledge, sale, or otherwise; or if Owner makes an assignment for
11
the benefit of its creditors, or uses this Agreement as security or collateral for any loan; or if the
Provider is involved in any bulk transfer of its business or assets, then in that event each of the
foregoing actions shall also be deemed an assignment of this Agreement and shall require the
City's prior written consent. A merger, dissolution, consolidation, conversion, liquidation or
appointment of a receivership for Owner, shall be deemed an assignment of this Agreement and
will require the prior written consent of the City thereto.
ARTICLE XXVI
TERMINATION FOR CAUSE
The City may place Owner in default of this Agreement and may suspend or terminate this
Agreement, in whole or in part, for cause, as prescribed in Article X herein. "Cause" shall include,
but not be limited to, the following:
(a) Owner's failure to (i) diligently pursue additional Project financing and to close on the
acquisition of the Project within 60 days from the date of execution of this Agreement; or (ii)
commence work within thirty (30) days from the date of issuance of the Notice to Proceed; or (iii)
diligently pursue construction and timely complete the project by securing a Final Certificate of
Completion within twelve (12) months from the date of execution of this Agreement.
Work shall be considered to have commenced and be in active progress when, in the sole
opinion of the City, a full complement of workers and equipment is present at the site to diligently
incorporate materials and equipment into the structure throughout the day on each full working day,
weather permitting.
(b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning laws,
rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan
document executed by Owner in favor of a Lender.
(d) Owner's failure to maintain the insurance required by the City and/or Lender.
(e) Failure to comply and/or perform in accordance with any of the terms and conditions of this
Agreement, or any Federal, State or local regulation.
(f) Submitting any required report to the City which is late, incorrect, or incomplete in any
material respect after notice and reasonable opportunity to cure, as set forth in subparagraph (h)
hereof, has been given by the City to Owner.
(g) Implementation of this Agreement, for any reason is rendered impossible or infeasible.
(h) Failure to respond in writing within thirty (30) days of notice of same from City to any
concerns raised by the City, including providing substantiating documentation when requested by
the City.
(i) Any evidence of fraud, waste or mismanagement as determined by the City's monitoring
of project(s) under this Agreement, or any violation of applicable HUD rules and regulations.
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G) Owner's insolvency or bankruptcy.
(k) An assignment or transfer of this Agreement or any interest therein which does not comply
with the procedures set forth in Article XXV herein.
(I) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within 60
days from the date of filing of any such lien.
(m) Failure to comply and/or perform in accordance with the affordability requirements, and/or
an unauthorized transfer of title of its HOME projects.
If the default complained of is not fully and satisfactorily cured within thirty (30) days of
receipt of such notice of default to Owner, at the expiration of said thirty (30) day period (or such
additional period of time, as permitted by the City, in its sole discretion, as required to cure such
default, in the event Owner is diligently pursuing curative efforts) this Agreement may, at the City's
sole option and discretion, be deemed automatically canceled and terminated, and the City fully
discharged from any and all liabilities, duties and terms arising out of, or accruing by virtue of this
Agreement. In the event of a default for cause, the City may, at its option, avail itself of any and
all remedies pursuant to 24 CFR Part 85.43, as amended from time to time, including suspension,
in whole or in part, of Owner's grant award(s); recapture of the Funds, as set forth herein; and any
other remedies that may be legally available.
ARTICLE XXVII
TERMINATION FOR CONVENIENCE
Notwithstanding Article XXVI above, Owner herein consents that the City may terminate this
Agreement, in whole or in part, for convenience, as set forth in 24 CFR Part 85.44.
ARTICLE XXVIII
ADDITIONAL REMEDIES
In the event of a default and termination for cause, the City shall be entitled to bring any and
all legal and/or equitable actions which it deems to be in its best interest, in Dade County, Florida,
in order to enforce the City's rights and remedies against the defaulting party. The City shall be
entitled to recover all costs of such actions, including reasonable attorney's fees. To the extent
allowed by law, the defaulting party waives its right to jury trial and its right to bring permissive
counterclaims against the City in any such action.
ARTICLE XXIX
MAINTENANCE AND RETENTION OF RECORDS
Owner agrees that it will maintain all records required pursuant to 24 CFR Part 92.508, in
an orderly fashion in a readily accessible, permanent and secure location, and that it will prepare
and submit all reports necessary to assist the City in meeting record keeping and reporting
requirements thereunder.
(1) Records shall be maintained for a period of five years after the closeout of funds under this
Agreement except as provided herein (2), (3) and (4).
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(2) If any litigation, claim, negotiation, audit or other action has been started before the regular
expiration date, the records must be retained until completion of the action and resolution of all
issues which arise from it, or until the end of the regular period specified in paragraph (1),
whichever is later;
(3) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must
be retained for five years after the affordability period terminates;
(4) Records covering displacements and acquisition must be retained for at least five years
after the date by which the persons displaced from the property and all persons whose property
is acquired for the project have received the final payment to which they are entitled in accordance
with 24 CFR Part 92.353.
ARTICLE XXX
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can place a limit
on the City's liability for any cause of action for money damages due to an alleged breach by the
City of this Agreement, so that its liability for any such breach never exceeds the sum of $970,000.
Owner hereby expresses its willingness to enter into this Agreement with Owner's recovery from
the City for any damage action for breach of contract to be limited to a maximum amount of
$970,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Owner
hereby agrees that the City shall not be liable to Owner for damages in an amount in excess of
$970,000, for any action or claim for breach of contract arising out of the performance or non-
performance of any obligations imposed upon the City by this Agreement. Nothing contained in
this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the
limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28.
ARTICLE XXXI
VENUE
This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is
necessary by either party with respect to the enforcement of any or all terms or conditions herein,
exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida.
ARTICLE XXXII
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies contemplated by
this Agreement to be used for the Funds, originated from grants of federal HOME Investment
Partnerships Program funds, and must be implemented with all of the applicable rules and
regulation of the U.S. Department of Housing and Urban Development. It is expressly understood
and agreed that in the event of curtailment or non-production of said Federal grant funds, that the
financial sources necessary to continue to pay the Owner the Funds will not be available and that
this Agreement will thereby terminate effective as of the time it is determined that said funds are
no longer available. In the event of such determination, Owner agrees that it will not look to, nor
seek to hold liable, the City or any individual member of the City Commission thereof, personally
for the performance of this Agreement and all parties hereto shall be released from further liability
14
each to the other under the terms of this Agreement.
ARTICLE XXXIII
ACCESSIBILITY LAWS COMPLIANCE
Owner agrees to adhere to and be governed by the following accessibility requirements:
(a) Architectural Barriers Act of 1968, As Amended (42 U.S.C. 4151) and its implementing
regulations at 35 CFR Part 107 -- Public buildings and conveyances financed with federal funds
must be designed, constructed, or altered to provide accessibility to the physically handicapped.
(b) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR Part 8 -- Prohibits discrimination in federally assisted programs on the basis
of handicap and imposes requirements to ensure that "qualified individuals with handicaps" have
access to programs and activities that receive federal funds.
(c) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42
U.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115.
Owner must complete and submit the City's Disability Non-Discrimination Affidavit
(Affidavit), a copy of which is attached hereto and incorporated herein as Exhibit C. In the event
Owner fails to execute the City's Affidavit, or is found to be in non-compliance with the provisions
of the Affidavit, the City may impose such sanctions as it may determine to be appropriate,
including but not limited to, withholding of payments to Owner under the Agreement until
compliance and/or cancellation, termination or suspension of the Agreement in whole or in part.
In the event the City cancels or terminates the Agreement pursuant to this Article, Owner shall not
be relieved of liability to the City for damages sustained by the City by virtue of Owner's breach of
the Agreement.
ARTICLE XXXIV
NOTICES
All notices shall be sent to the parties at the following addresses:
If to the City:
City of Miami Beach
1700 Convention Center Drive, 3rd Floor
Miami Beach, FL 33139
Attn: (1) City Attorney's Office
and (2) Housing Coordinator
If to Owner:
Denis A. Russ
MBCDC
1205 Drexel Ave., 2nd floor
Miami Beach, FL 33139
or to such address and to the attention of such other person as the City or Owner may
from time to time designate by written notice to the other.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized official(s) on the day and date first above indicated.
MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION
a Florida t-for-profit corporation
Authorized Signatory
ATTEST:
J1t- -
Denis A. Russ, President
Printed Name and Title
of Authorized Signatory
Secretary
ATTEST:
~J' PtlA~
CITY OF MIAMI BEACH
a Florida il corporation
City Clerk
Mayor
F:\DDHP\$ALL\BETH\CRESPI\79CRESPI.AGR
APPROVED p.s TO
FORM & LANGUAGE
& FOR EXECUTION
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16
EXHIBIT A
SCOPE OF SERVICES
SCOPE OF SERVICES
1. Name/Address of Project:
The Crespi Park Apartments
7900 & 7920 Crespi Boulevard
1011 & 1023 79th Street
Miami Beach, FI33141
2. Legal Description:
Crespi Courts:
LOT 10 BLOCK 2 OF BISCA YNE BEACH SUBDIVISION AS RECORDED
IN PLA TBOOK 44, PAGE 67 OF THE PUBLIC RECORDS OF MIAMI-
DADE COUNTY, FLORIDA.
AND
Israbian Apts.:
LOTS 11 AND 12, BLOCK 2 OF BISCA YNE BEACH SUBDIVISION AS
RECORDED IN PLATBOOK 44, PAGE 67 OF THE PUBLIC RECORDS
OF MIAMI-DADE COUNTY, FLORIDA.
3. Building and Site Characteristics
The Crespi Courts site consists of 2 - two story concrete block (CBS) buildings, containing
four units each. The size of the lot is approximately 10,540 square feet. The buildings were built
in 1954, and have a total square footage of approximately 8,268 square feet. The buildings are
Post War Modern style. The zoning for the property is currently listed as RM 1. The building is
currently operated as an apartment building with 8 two-bedroom units.
The Israbian Apartments site consists of one two story concrete block (CBS) building, containing
6 one-bedroom units and 2 two-bedroom units. The site consists of two 50 x 113' lots, one of which
is used for tenant parking. The size of the lots is approximately 11,300 square feet. The building
was built in 1949, and has a total of 5,205 square feet. The building is Post War Modern style. The
zoning for the property is currently listed as RM 1. The building is currently operated as an
apartment building.
The Crespi Courts site and the Israbian Apartments sites will be renamed by the Owner to
"Crespi Park Apartments."
4. Upon completion of the Project, all 16 units in the Project, consisting of 1 0 two-bedroom
units and 6 one-bedroom units, will be HOME-assisted and carry restricted rent and tenant income
restrictions for the duration of the 15 year affordability period.
5. Proposed Elements of Construction
· Installation of upgraded air conditioning system (currently wall units are present)
· Upgraded electrical and plumbing systems
· New roof for corner buildings, repair of roof on Israbian
Interior and exterior modifications, including ramp(s) to meet ADA requirements
Interior improvements to include new flooring, cabinets, appliances, paint, doors, some
bathroom fixtures, some light fixtures, and smoke detectors
· New windows as needed, including hurricane shutters
· Landscaping and site fencing
Installation of mailboxes
· Improvements to parking lot
· Improved and upgraded laundry facilities to be shared between buildings
Improved trash enclosure
6. The following procedures must be followed, prior to the commencement of work on the
project:
(a) Each contractor and/or subcontractor must be found to be eligible to work on a federally
funded project. The names submitted will be checked against the monthly listing
"Consolidated List of Debarred, Suspended & Ineligible Contractors and Grantees"
published by the Federal Government.
(b) If the Building is more than 50 years old, (1) Owner's Architect or Engineer must obtain
and submit to the City a letter indicating that the plans for the project have been reviewed
by the State Historic Preservation Officer (SHPO) and that the proposed rehabilitation is
acceptable to that office, and (2) must submit a copy of the 50 year re-certification for the
building.
(c) A set of final approved plans and specifications for the project approved by the City's
Building Department must be submitted to the Housing Section of the City's
Community/Economic Development Division.
(d) Building permits must be obtained as required by applicable City Ordinance. Also, any
other necessary permits and applicable approvals from any other governmental authorities
must be obtained, if required.
(e) A copy of the contract between Owner and a licensed General Contractor must be
submitted to the City which includes commencement and completion dates, contract
amount, scope of work, Federal Labor Standards Provisions (HUD Form 4010, if
applicable), and applicable federal regulations and standards.
(f) The General Contractor selected must submit evidence prior to the commencement of
work, satisfactory to the City's Insurance Manager, of the following insurance coverage: 1)
Liability insurance against claims arising out of accident or occurrence on the property, in
a minimum amount of $1,000,000. The City of Miami Beach must be named as additional
insured in the policy; and 2) Proof of worker's compensation coverage; and such other
forms of insurance as the City's Risk Manager may reasonably require.
(g) A revised cost breakdown, to include direct and indirect costs of the proposed work,
based on the actual contract price.
When the above requirements have been met, the Community/Economic Development Division
and the Building Services Division will jointly issue a "Notice to Proceed" on the project. If Owner
or contractor does not fully comply, or if any work commences prior to the issuance of the Notice
to Proceed, then such work may, at the discretion of the City, constitute a default under this
Agreement.
Exception: Subject to the prior approval of the Community/Economic Development Division
and the Building Services Division, emergency repairs can be undertaken on the Project.
7. Owner's General Contractor shall be responsible for compliance with all pollution and
asbestos control standards of the concerned governmental agencies. It shall be the Contractor's
responsibility to obtain required inspections from these agencies.
8. Federal regulations require that all tenants in housing rehabilitated with federal funds, be
provided with information on the following: that the property may contain lead-based paint; of the
hazards, symptoms and treatment for ingestion of lead-based paint; of the precautions to be taken;
of the availability of blood level screening for children under seven years of age; and that in the
event lead-based paint is found in the property, appropriate abatement procedures must be
undertaken by owners. Copies of a brochure will be provided to Owner by the City. This
information must be provided by Owner to each tenant, and Owner must retain evidence of having
provided this notification to the tenant in a file for the life of this Agreement.
9. After the property has been rehabilitated, it must conform to the applicable codes,
ordinances and statutes of the City and of Miami-Dade County, including, but not limited to, the
South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards.
10. Consistent with the other goals and objectives of the HOME Program, all reasonable steps
shall be taken to minimize displacement as a result of the Project. If the property is occupied at
the time the application is submitted, Owner must submit a tenant roll. Additionally, Owner must
submit for each unit: tenant names, lease terms, duration of occupancy, rent currently paid, with
an indication as to whether utilities are included, family size, family income, and any other
information determined necessary by the City to assess the need for temporary relocation or
permanent displacement. "Eligible" expenses will be determined in accordance with the provisions
of Handbook 1378: Tenant Assistance. Relocation and Real Procerty Acquisition, issued by HUD,
as amended.
a. Owner must pay these expenses directly, or reimburse the tenants for their
payments, and document all such expenditures carefully. Note: In the event it is
found necessary to permanently relocate any tenant, the full cost of such
permanent displacement shall be borne by Owner.
b. Owner agrees to send, or to permit the City or its agent to send, federally required
notices to tenants in a timely manner. These notices include, but are not limited to:
General Information Notice, Notice of Non-displacement and a Notice of Eligibility.
Owner shall make every effort to assure that temporary accommodations provided
for tenants is decent, safe and sanitary, and that other living conditions are
generally acceptable. Owner will ensure that there is no increase in out-of-pocket
housing expenses to the tenant. Those tenants who were in residence prior to
rehabilitation, and who received a "Notice of Non-Displacement", who elect to return
to the property upon completion of the rehabilitation work are referred to herein as
"Returning Tenants". Owner must agree to offer a unit to the Returning Tenants on
the following terms, independent of the rent restrictions detailed herein.
1) Returning Tenants must be offered the same apartment previously occupied, or
a unit comparable in terms of size and amenities to the unit occupied prior to the
rehabilitation.
2) Returning tenants must be offered a standard lease for at least a 12 month
period at the greater of (a) the same rent being charged before the rehabilitation,
or (b) 30 percent of the returning tenants average monthly gross household income,
or (c) the allowable rent pursuant to governmental regulations.
3) Upon expiration of the initial lease, and annually thereafter, for a period of 42
months following the completion of the rehabilitation work, rent charged the
Returning Tenant may be increased in an amount deemed reasonable by the City,
and only if the amount of such proposed increase can be justified, based on
documented increases in the operating costs of the property.
(4) Upon expiration of the 42 month period, the rent charged to the Returning
Tenant may be adjusted to the applicable HOME Program Rent.
11. Owner agrees that it will develop an affirmative marketing plan, with concurrence from the
City, that will comply with the City's adopted affirmative marketing procedures and
requirements for projects containing 5 or more HOME-assisted housing units. Owner shall
implement an affirmative marketing program that provides information to, and attracts
eligible persons in the housing market area to the available housing receiving assistance
from HOME funds, without regard to race, color, national origin, religion, sex, sexual
orientation, handicap, marital status, familial status, or age. The affirmative marketing
requirements and procedures adopted by Owner shall include, but not necessarily be
limited to, the following:
a. Methods to promote greater choice of housing opportunities;
b. Practices for marketing vacant units that will affirmatively further fair housing (e.g., use
of commercial media, use of community contacts, use of the Equal Housing Opportunity
logotype or slogan, and display of fair housing poster);
c. Special outreach efforts to inform and solicit applications from persons in the housing
market area who are not likely to apply for the housing without special outreach and
advertising efforts (e.g., use of community organizations including, but not limited to: places
of worship, employment centers, community centers, fair housing groups, housing
counseling agencies, community development corporations, and the Housing Authority of
the City of Miami Beach). The City shall provide a list of potential outreach sources to
Owner;
d. Maintenance of records describing actions taken to affirmatively market units and
records to assess the results of these actions, including newspaper clippings of all vacant
units advertised, copies of brochures, pamphlets, and articles used in advertising units, lists
of community organizations used in disseminating information, records of referrals and the
results of these referrals, and documentation of any other special outreach activities
conducted.
e. A certification that states that the Owner agrees to adhere to any corrective actions the
City requires if affirmative marketing requirements are not met.
12. Project Development Schedule
Closing Date - July 15, 1999
Construction Commences - August 1999
Construction Complete - February 2000
Lease-up complete - April 2000
EXHIBIT B
BUDGET
Crespi Park Apartments
Project Budget
Sources and Uses of Funds
Grant -- CMB HOME Grant
DCA Loan Commited
Bank Loan
Total Sources of Funds
Acquisition
Total Acquisition Cost
Closing Costs
Legal Costs
Loan Orig. Fee/Closing Costs
Surveys
Appraisals
Property Tax
Construction Interest
Permits, Impact Fees
Environmental, Abatement
Engineering
Architectural
Insurance
Consultant/Inspection Svcs.
Site Work / Maint. / Utilities
Administrative
Title Insurance
Developer Overhead
Project Contingency
Total PreDevelopment Costs
General Conditions
Site
Concrete, (Masonry)
Metals
Wood and Plastics
Themal, Moisture Protection
Doors and Windows
Hardware
Finishes
Specialties
Equipment (Appliances)
Furnishings
Special Construction
Conveying Systems
Mechanical (AlC, Plumbing)
Electrical
Overhead
Profit
Bond
Construction Contingency
Total Rehabilitation Cost
Total Project Costs
Project Funding Gap
crespi pari< apts sand u
5/24/99
970,000
238,000
-74,825
1,282,825
730,500
730,500
6,000
2,000
5,000
1,250
3,800
7,000
3,600
5,500
4,800
4,500
4,500
9,000
3,000
2,600
4,550
3,500
50,000
28,235
148,835
31,500
40,000
12,000
19,500
11,600
24,500
22,000
2,000
35,600
o
18,500
o
o
o
47,000
35,000
29,920
29,920
4,450
40,000
403,490
1,282,825
o
EXHIBIT C
DISABILITY DISCRIMINA rlON AFFIDA vir
DISABILITY NONDISCRIMINATION AFFIDAVIT
CONTRACT REFERENCE
NAME OF FIRM, CORPORATION, OR ORGANIZATION
AUTHORIZED AGENT COMPLETING AFFIDAVIT
POSITION PHONE NUMBER (
I, , being duly first sworn state:
That the above named firm, corporation or organization is in compliance with and agrees to continue to
comply with, and assure that any subcontractor, or third party contractor under this project complies with all
applicable requirements of the laws listed below including, but not limited to, those provisions pertaining to
employment, provision of programs and services, transportation, communications, access to facilities,
renovations, and new construction.
The Americans with Disabilities Act of 1990 (ADA): Pub. L. 101-336, 104 Stat 327,42 U.S.C. 12101-12213
and 547 U.S.C. Sections 225 and 611 including Title I, Employment; Tittle II, Public Services; Title III,
Public Accommodations and Services Operated by Private Entities; Title IV, Telecommunications; and Title
V, Miscellaneous Provisions.
The Rehabilitation Act of 1973: 29 U.S.C. Section 794.
The Federal Transit Act, as amended: 49 U.S.C. Section 1612.
The Fair Housing Act as amended: 42 U.S.C. Section 3601-3631.
Signature
Date
SUBSCRIBED AND SWORN TO (or affirmed) before me on
(Date)
by
He/She is personally known to me or has presented
(Affiant)
as identification.
(Type of identification)
(Signature of Notary) (Serial Number)
(Print or Stamp Name of Notary) (Expiration Date)
Notary Public (State) Notary Seal
The City of Miami Beach will not award a contract to any firm, corporation or organization that fails to
complete and submit this Affidavit with the firm, corporation or organization's bid or proposal or fails to have
this Affidavit on file with the City of Miami Beach.
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