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2018-30280 ResolutionRESOLUTION NO. 2018-30280 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING, AMENDMENT NO. 1 TO LEASE BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT COUNCIL TOWERS SOUTH, LOCATED AT 533 COLLINS AVENUE, MIAMI BEACH, FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9, 2026 AND ENDING JULY 8, 2076; FURTHER, WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS OF SECTION 82-39 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 BETWEEN THE CITY AND LESSEE. WHEREAS, on or about July 8, 1976, the City Commission of the City of Miami Beach adopted Resolution No. No. 1976-15085, approving a Lease Agreement between the City and Senior Citizens Housing Development Corporation of Miami Beach ("Lease"), for certain air rights and easements to City -owned property located at 533 Collins Avenue, for the construction and operation of a residential building for elderly housing ("Council Towers South" or the "Building"), and with the City retaining the rights to the management and operation of the municipal parking lot on the ground floor below the demised premises; and WHEREAS, the Lease had an initial term of fifty (50) years, expiring on July 8, 2026; and WHEREAS, the Building was completed in 1979, and includes 125 residential dwelling units, providing quality affordable rental housing for low-income seniors; and WHEREAS, on or about March 8, 1978, and in accordance with Section 34 of the Lease, the original lessee, Senior Citizens Housing Development Corporation of Miami Beach, assigned the Lease to Lessee, and such assignment was duly recorded in O.R. Book 9967, Page 230 of the public records of Miami -Dade County; and WHEREAS, Lessee desires to obtain financing, either through a leasehold mortgage, low income housing tax credit equity providers, or other financing vehicles eligible for affordable/elderly housing projects such as the Building, for the purpose of constructing certain capital improvements or other renovations to the Building, including building systems, individual dwelling units, and common areas, with the intent for such improvements, as defined more fully in Section 11 of this Amendment No. 1, to improve security, safety, and the quality of living conditions for the Building's residents; and WHEREAS, in order to obtain Tong -term financing for the Lessee's proposed renovations, Lessee requests an extension of the Term, for a period of fifty (50) years, following the expiration of the initial term on July 8, 2026; and WHEREAS, in view of the City Commission's desire to support and incentivize affordable housing projects within the City of Miami Beach, including affordable elderly housing, the City Commission desires to extend the term of the Lease, and waives the competitive bidding and appraisal requirements of Chapter 82-37 and 82-39 of the City Code, finding it in the best interests of the City to do so; and WHEREAS, a lease of ten years or more of the 533 Collins Avenue property is governed by the provisions of Section 1.03(b)(4) of the City Charter, and requires approval of a majority 4/7ths vote of all members of the Planning Board, and a 6/7ths vote of the City Commission; and WHEREAS, on December 19, 2017, following consideration of the Planning Department analysis required pursuant to Section 82-38 of the City Code, the proposed lease extension was unanimously approved by the Planning Board; and WHEREAS, on February 23, 2018, as required by Section 82-37 of the City Code, the Finance and Citywide Projects Committee reviewed the proposed lease, and unanimously recommended that the Mayor and City Commission approve the foregoing Amendment No. 1., a copy of which is attached to the Commission Memorandum accompanying this Resolution; and WHEREAS, on March 7, 2018, the Mayor and City Commission approved the proposed lease on first reading, and set a second reading/public hearing for April 11, 2018. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve, following second reading/public hearing, Amendment No. 1 to Lease between the City and Miami Beach Senior Citizens Housing Development Corporation, Inc, (Lessee), in connection with the City's lease of air rights for affordable elderly housing at Council Towers South, located at 633 Collins Avenue, Miami Beach, Florida, for a period of fifty years, commencing July 9, 2026 and ending July 8, 2076; further, waiving, by 5/7ths vote, the competitive bidding and appraisal requirements of Section 82-39 of the City Code, finding such waiver to be in the best interest of the City; and further authorizing the Mayor and City Clerk to execute Amendment No, 1 between the City and Lessee. PASSED AND ADOPTED this /1 day of ../91:71, 2018. Dan Gelber, Mayor APPROVED AS TO row & LANGUAGE & FOR EXECUTION MIAMIEEACH Resolutions - R7 D COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: April 11, 2018 2:20 p.m. Second Reading Public Hearings SUBJECT: 1. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING, AMENDMENT NO. 1 TO LEASE BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT COUNCIL TOWERS SOUTH, LOCATED AT 533 COLLINS AVENUE, MIAMI BEACH, FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9, 2026 AND ENDING JULY 8, 2076; FURTHER, WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS OF SECTION 82-39 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 BETWEEN THE CITYAND LESSEE. 2. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING, AMENDMENT NO. 1 TO LEASE BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT COUNCIL TOWERS NORTH, LOCATED AT 1040 COLLINS AVENUE, MIAMI BEACH, FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9, 2026 AND ENDING JULY 8, 2076; FURTHER, WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS OF SECTION 82-39 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 BETWEEN THE CITYAND LESSEE, RECOMMENDATION Adopt the Resolutions. BACKGROUND The City of Miami Beach ("Lessor") and Miami Beach Senior Citizens Housing Development Corporation, Inc., as assignee of Senior Citizens Housing Development Corporation of Miami Beach ("Lessee"), are parties to two separate, but similar, lease agreements, bot dated July 9, 1976 (collectively "Leases"). The Leases are for the air rights located above the City -owned properties located at 533 Collins Avenue ("Council Towers South") and 1040 Collins Avenue ("Council Towers 1072 North"). Council Towers South is a 12 story building consisting of 125 units and approximately 115,231 square feet. Council Towers North is a 12 story building consisting of 125 units and approximately 115,036 square feet. Both properties were completed in 1979 and offer quality affordable housing for low-income senior citizens. Basic Lease Terms Lessee: Miami Beach Senior Citizens Housing Development Corporation, Inc., as assignee of Senior Citizens Housing Development Corporation of Miami Beach Demised Premises: Air rights for properties located at 533 Collins Avenue and 1040 Collins Avenue, Miami Beach, Florida Use: The Demised Premises shall be limited in use to the construction and operation of housing for the elderly under Section 202 of the Housing Act of 1959, as amended. Execution Date: July 9, 1976 Initial Term: Fifty (50) years, commencing July 9, 1976 and ending July 8, 2026. Renewal Options: In the event Lessee is granted an extension on the original mortgage, the lease shall be renewed for the period of the extension beyond the original fifty (50) year term. (Does not apply to this extension request because lessee is seeking a new mortgage). Rent Amount: Council Towers South - $21, 500 annually; Council Towers North - $19,125 annually Maintenance/Operation: Lessee is responsible for all real estate taxes, insurance, maintenance costs, and utilities for the Demised Premises. Surrender: On the last day of the term, or on the earlier termination thereof, Lessee shall deliver the Demised Premises, together with the building or any new building, and all alterations, changes, additions and improvements which may have been made upon the premises, in thorough repair, good order and safe condition. ANALYSIS On August 31, 2017, representatives from Lessee met with the Administration to discuss a request for an extension of the Leases, for a period of fifty (50) years, in order to facilitate the refinancing of both properties. Lessee submitted a formal request for an extension of the air rights leases, dated August 16, 2017, attached hereto as Exhibit A (Request for Extension of Air Rights Leases). The lease extension will reaffirm, and will have no effect on, the municipal parking spaces located at both sites. As stated in the request letter, Lessee intends to use the proceeds of the refinancing for capital renovations to the properties. The renovations would include, but not be limited to, site work, exterior facade work, new windows, interior common areas and office renovations, apartment renovations, and building systems (e.g., elevators, roof, electric, plumbing, water pumps, generators, fire alarm systems, etc.). The Administration has worked with Lessee to provide modifications to the lease extension agreement, including, but not limited to, the items below. 1. include enhancements to generator capacity to ensure continued operation of HVAC, elevators, life safety systems, etc. after a tropical storm or hurricane for a period up to 96 hours after loss of power; 2. criteria for condition of building/units at the end of the extended term; 3. comply with Miami Dade County 40 year recertification requirements, and subsequent 10 year 1073 recertification requirements; 4 . proactively manage and comply with the required Miami -Dade County annual registration of eligible tenants for the County's Emergency Evacuation Assistance Program (EEAP) for the elderly and/or disabled individuals who: a) are unable to evacuate on their own due to a specialized transportation need b) are homebound residents and unable to walk to a bus pickup point and do not have anyone that can provide transportation c) have medical needs that prevent them from evacuating on their own d) are bedbound patients e) are on life-sustaining medical equipment that requires electricity f) require assistance with daily living activities 5. comply with required Miami Beach registration of other residents who need some type of daily assistance to live on their own, including completion of annual assessment form. In accordance with Section 1.03(b)4 of Article I of the charter of the City of Miami Beach, a lease of ten (10) years or longer of City -owned property (other than public beach rights-of-way and those properties addressed specifically in Section 1.03 of the Charter) shall, as provided by Ordinance, require approval by a majority 4/7 vote of all members of the Panning Board and 6/7 vote of the City Commission. On October 18, 2017, at the request of Commissioner Arriola, the City Commission referred the extension of the lease agreements to the Finance and Citywide Projects Committee and Planning Board for discussion, Planning Board Pursuant to Section 1.03(b)(4), of the City Charter, the Planning Board met on December 19, 2017, and unanimously recommended in favor of the proposed lease extensions. The Planning Analysis is attached hereto as Exhibit B (Planning Board Analysis). Finance and Citywide Projects Committee At the November 8, 2017 Finance and Citywide Projects Committee (FCWPC) meeting, the Administration presented the terms and conditions set forth above. The FCWPC considered this matter and recommended approving the lease extensions subject to the modifications set forth above and further recommended including additional requirements to the lease extension to provide for accommodating residents during the renovation, implementing a resident satisfaction survey and providing for City inspection rights to ensure the building is adequately maintained. These additional requirements were subsequently included in the lease extension amendments, attached hereto as Exhibit C (Amendment No. 1 to Lease Agreement — Council Towers South) and Exhibit D (Amendment No. 1 to Lease Agreement — Council Towers North). This matter was again discussed at the February 23, 2018 FCWPC meeting. The FCWPC recommended in favor of approving the lease extensions subject to the modifications set forth in this memorandum. CONCLUSION The Administration recommends in favor of executing an Amendment No. 1 to Lease Agreements for Council Towers South and Council Towers North, with Miami Beach Senior Citizens Housing Development Corporation, Inc., in accordance with the above stipulated terms and conditions. Legislative Tracking Tourism, Culture and Economic Development Sponsor 1074 Commissioner Ricky Arriola ATTACHMENTS: Description o ExhibitA-RequestforExtensionofAirRightsLoaoe m Exhibit B ' Planning Board Analysis o Exhibit C - Amendment - Council Towers South o Exhibit D - Amendment - Council Towers North o Resolution - Council Tbwers North CI Resolution - Council Towers South 1075 Steve Protulis President and CEO Christopher M. Shelton Chairman of the Board Morton Bahr Chairman Emeritus Edward L. Romero 1s1 Vice President Leo W. Gerard 20 Vice President Maria C. Cordone Secretary Erica SchmeIzer Treasurer Maxine Carter Director Eric Dean Director Ellen Feingold Director Tony Fransetta Director Robert Martinez Director John Olsen Director Cecil Roberts Director Roger Smith Director Thomas P. Villanova Director Elderly Housing Development & Operations Corporation The Premier Provider of Quality Affordable Housing for Senior Citizens Across the United States August 16, 2017 Honorable Mayor Philip Levine City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Commissioner Ricky Aniola City of Miami Beach — Group 5 1700 Convention Center Drive Miami Beach, FL 33139 Re: Air Rights Extension Request/ Council Towers Senior Apartments / 533 & 1040 Collins Avenue, Miami Beach, FL 33139 Dear Mayor Levine and Commissioner Arr-iola: The City of Miami Beach and EHDOC, via our predecessor Senior Citizens Housing Development Corporation, entered into a 50 -year air rights agreement on July 9, 1976 for the two Council Towers apartment buildings on Collins Avenue. Pursuant to Section 25 EHDOC has the right to extend the term of the Air Rights Agreement for the term of any extension or refinance of the existing HUD 202 financing. EHDOC wishes to refinance two Council Tower properties in order to preserve and improve the living conditions, health, and safety of our elderly residents, EHDOC: Housing With A Heart 1580 Sawgrass Corporate Parkway • Suite 100 • Fort Lauderdale, FL 33323-2869 • Tel: 954.835,0200 • Fax: 954.835.0888 • TTY: 800.545.1833, ext. 248 wwmehdocsit edocaehdoc.orq EHDOC, as a not-for-profit owner and operator of affordable housing for the elderly since 1978, intends to utilize the proceeds of the refinance for capital improvements to the property. EHDOC believes an opportunity exists for a favorable interest rate on permanent debt financing [4% range, new 40 -year HUD insured FHA mortgage], Presently, the existing debt is 6,875% and matures in 2020. EHDOC hereby requests the following support from the City of Miami Beach: , Approve extension/renewal of the Lease Agreement for a 50 -year term, The extension of the air rights/land lease will benefit both the City of Miami Beach and elderly residents of the community for a long time to come, We appreciate your continued support to our Mission and hope we can count on your support in securing the Air Rights Agreement extension, We also look forward to helping you and the City of Miami Beach in any way we can. Steve Protul is President and CEO Attachments; 1680 Sawgrass Corporate Parkway • Suite 210 • Fort Lauderdale, FL 333232869 Tel: 954.835.9200 Fax: 954.835,0888 TTY: 800.545.1833, ext, 248' www.ehdoc.com 1077 MIAMI BEACH PLAN NG DEPARTMET Staff Report & 'ecommenc ation Planning Boarc TO: Chairperson and Members DATE: December 19, 2017 Planning Board FROM: Thomas R. Mooney, AICP Planning Director SUBJECT: Resolution PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue REQUEST PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue. A RESOLUTION OF THE PLANNING BOARD, IN ACCORDANCE WITH SECTION 1.03(B)4 OF THE CITY CHARTER, THE LEASE OF TEN YEARS OR LONGER OF CITY -OWNED PROPERTY (OTHER THAN PUBLIC BEACH RIGHTS-OF-WAY AND THOSE PROPERTIES ADDRESSED MORE SPECIFICALLY IN SECTION 1.03 OF THE CHARTER) SHALL, AS PROVIDED BY ORDINANCE, REQUIRE APPROVAL BY A MAJORITY 4/7 VOTE OF ALL MEMBERS OF THE PLANNING BOARD AND 6/7 VOTE OF THE CITY COMMISSION; RECOMMENDS APPROVAL OF LEASE AGREEMENTS BETWEEN THE CITY OF MIAMI BEACH (LESSOR) AND ELDERLY HOUSING DEVELOPMENT AND OPERATIONS CORPORATION (EHDOC), AS SUCCESSOR IN INTEREST TO SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION OF MIAMI BEACH (LESSEE), FOR A FIFTY (50) YEAR EXTENSION, COMMENCING JULY 9, 2026 AND ENDING JULY 8, 2076, TO THE CITY'S LEASE AGREEMENTS FOR AFFORDABLE ELDERLY HOUSING AT COUNCIL TOWERS SOUTH, LOCATED AT 533 COLLINS AVENUE, AND COUNCIL TOWERS NORTH, LOCATED AT 1040 COLLINS AVENUE. In accordance with Section 1.03(b)4 of the City Charter, the lease of ten years or longer of City - owned property (other than public beach rights-of-way and those properties addressed more specifically in Sectiion 1.03 of the Charter) shall, as provided by Ordinance, require approval by a maiority 4/7 vote of all members of the Planning Board and 6/7 vote of the City Commission. RECOMMENDATION Adopt the Resolution. HISTORY On October 18, 2017, at the request of Commission Arriola, the City Commission referred the extension of the lease agreement to the Finance and Citywide Projects Committee and Planning Board for discussion (Item C4 H). On November 8, 2017, the Finance and Citywide Projects Committee recommended that lease agreement be extended subect to modifications, 1078 Planning Board PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue December 19, 2017 Page 2 of 6 BACKGROUND The City of Miami Beach ("Lessor") and Elderly Housing Development and Operations Corporation, as successor in interest to Senior Citizens Housing Development Corporation of Miami Beach ("EHDOC" or "Lessee"), are parties to two separate, but similar, lease agreements, both dated July 9, 1976 (collectively "Leases"). The Leases are for the air rights located above the City -owned properties located at 533 Collins Avenue ("Council Towers South") and 1040 Collins Avenue ("Council Towers North"). Council Towers South is a 12 story building consisting of 125 units and approximately 115,231 square feet. Council Towers North is a 12 story building consisting of 125 units and approximately 115,036 square feet. Both properties were completed in 1979 and offer quality affordable housing for low-income senior citizens. Basic Lease Terms Lessee: Elderly Housing Development and Operations Corporation (EHDOC), as successor in interest to Senior Citizens Housing Development Corporation of Miami Beach Demised Premises: Air rights for properties located at 533 Collins Avenue and 1040 Collins Avenue, Miami Beach, Florida Use: The Demised Premises shall be limited in use to the construction and operation of housing for the elderly under Section 202 of the Housing Act of 1959, as amended. Execution Date: July 9, 1976 Initial Term: Fifty (50) years, commencing July 9, 1976 and ending July 8, 2026. Renewal Options: In the event Lessee is granted an extension on the original mortgage, the lease shall be renewed for the period of the extension beyond the original fifty (50) year term. [Does not apply to this extension request because lessee is seeking a new mortgage]. Rent Amount: Council Towers South - $21, 500 annually Council Towers North - $19,125 annually Maintenance/Operation: Lessee is responsible for all real estate taxes, insurance, maintenance costs, and utilities for the Demised Premises. Surrender: On the last day of the term, or on the earlier termination thereof, Lessee shall deliver the Demised Premises, together with the building . or any new building, and all 1079 Planning Board PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue December 19, 2017 Page 3 of 6 alterations, changes, additions and improvements which may have been made upon the premises, in thorough repair, good order and safe condition. ANALYSIS On August 31, 2017, representatives from EHDOC met with the Administration to discuss a request for an extension of the Leases, for a period of fifty (50) years, in order to facilitate the refinancing of both properties. EHDOC submitted a formai request for an extension of the air rights leases, with supporting documentation, dated August 16, 2017, attached hereto as Exhibit A (Request for Extension of Air Rights Leases). As stated in the request letter, EHDOC intends to use the proceeds of the refinancing for capital renovations to the properties. The renovations would include, but not be limited to, site work, exterior facade work, new windows, interior common areas and office renovations, apartment renovations, and building systems (e.g., elevators, roof, electric, plumbing, water pumps, generators, fire alarm systems, etc.). Upon initial review, the Administration recommends the following modifications in conjunction with consideration for a lease extension: 1) include enhancements to generator capacity to ensure continued operation of HVAC, elevators, life safety systems, etc. after a storm; 2) establish criteria for condition of building/units at the end of the extended term; 3) comply with Miami Dade County 40 year recertification requirements, and subsequent 10 year recertification requirements; 4) proactively manage and comply with the required Miami -Dade County annual registration of eligible tenants for the County's Emergency Evacuation Assistance Program (EEAP), utilizing the forms attached hereto as Exhibit B (EEAP Application) and Exhibit C -- (Emergency Evacuation Pickup Sites) for the elderly and/or disabled individuals who: a. are unable to evacuate on their own due to a specialized transportation need b. are homebound residents and unable to walk to a bus pickup point and do not have anyone that can provide transportation c. have medical needs that prevent them from evacuating on their own d. are bedbound patients e. are on life-sustaining medical equipment that requires electricity f. require assistance with daily living activities 5) comply with required Miami Beach registration of other residents who need some type of daily assistance to live on their own, including completion of annual assessment form. 1080 Planning Board PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue December 19, 2017 Page 4 of 6 The Lease extension will reaffirm, and will have no effect on, the municipal parking spaces located at both sites, PLANNING ANALYSIS Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City -owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease, The proposal is to extend a lease agreement between the City of Miami Beach (lessor) and Elderly Housing Development and Operations Corporation (lessee), for the air rights of two City -owned properties, located at 533 and 1040 Collins Avenue. The sites are, and will continue to be, used for affordable elderly housing. The following is an analysis based on the criteria delineated in the Code. 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Partially Consistent The future land use designation of the site located at 1040 Collins Avenue is Parking (P). The current use is inconsistent with the Parking designation which permits the following: Parking (P) Purpose: to provide development opportunities for existing and new parking facilities. Uses which may be permitted; Parking facilities and commercial uses when located on frontage opposite a land use category that permits commercial use. The future land use designation of the site located at 533 Collins Avenue is Pubic Facility: Governmental Uses (PF). The current use is inconsistent with the Parking designation which permits the following: Public Facility: Governmental Uses (PF) Purpose: To provide development opportunities for existing and new government uses. Uses which may be permitted: Government uses. The existing residential uses are inconsent with their future land use designations; however, the uses predate the adoption of the Comprehensive Plan and are therefore legally non -conforming. An amendment to the Future Land Use Map designation should be considered in the near future. The proposed lease requires the maintenance of affordable housing for 50 years and is consistent with Obective 1 of the Housing Element of the Comprehensive Plan which states the following: 1081 Planning Board PB 17-0178. 533 Collins Avenue & 1040 Collins Avenue December 19, 2017 OBJECTIVE 1: CREATION AND/OR PRESERVATION OF AFFORDABLE HOUSING Page 5 of 6 Have available a minimum of 6,800 housing units of workforce, affordable low and moderate income households and special need populations during the period through 2030, 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent — No negative impacts are anticipated by the proposal, as the use of the property will not change. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent -- This proposed use does keep with the public purpose and community needs as the lease agreement ensures that affordable housing will be maintained for a long period of time. 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent -- The surrounding neighborhood will not be negatively affected, as no additional structures will be constructed as a result of this lease agreement. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent — The impact on adjacent properties be negligible as the use of the site is not changing. Additionally, ederly housing has a minimal parking impact, since the majority of residents tend to not drive single occupancy vehicles. 6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. 1082 Planning Board PB 17-0178, 533 Collins Avenue & 1040 Collins Avenue December 19, 2017 Page 6 of 6 Not applicable — The Planning Department has no other issues it deems appropriate to analyze for this proposal. FINANCE AND CITYWIDE PROJECTS COMMITTEE At the November 8, 2017 Finance and Citywide Projects Committee (FCWPC) meeting, the Administration presented the terms, conditions, and recommended modifications set forth above, The FCWPC considered this matter and recommended extending the Lease Agreement with Elderly Housing Development and Operations Corporation, for a period of fifty (50) years, subject to the modifications contained above. RECOMMENDATION In view of the foregoing analysis, staff recommends that the Planning Board adopt the Resolution recommending approval of the subject lease extention. TRM/MAB/RAM P:\PLAN\$PLB\2017\12-19-17\PB17-0178 - 533 Collins Avenue & 1040 Collins Avenue\PB 17-0178 - 533 Collins Avenue and 1040 Collins Avenue - PB Staff Report 6-23-2015.docx 1083 AMENDMENT NO. 1 TO LEASE AGREEMENT (COUNCIL TOWERS SOUTH) This Amendment No. 1 to the Lease Agreement dated July 9, 1976, is entered into this day of , 2018 ("Amendment No. 1") between the CITY OF MIAMI BEACH, a Florida municipal corporation ("City" or "Lessor"), and MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC., a non-profit Florida corporation ("Lessee"). WITNESSETH: WHEREAS, on or about July 8, 1976, the City Commission of the City of Miami Beach adopted Resolution No. No. 1976-15085, approving a Lease Agreement between the City and Senior Citizens Housing Development Corporation of Miami Beach ("Lease"), for certain air rights and easements to City -owned property located at 533 Collins Avenue, for the construction and operation of a residential building for elderly housing ("Council Towers South" or the "Building"), and with the City retaining the rights to the management and operation of the municipal parking lot on the ground floor below the demised premises; and WHEREAS, the Lease had an initial term of fifty (50) years, expiring on July 8, 2026; and WHEREAS, the Building was completed in 1979, and includes 125 residential dwelling units, providing quality affordable rental housing for low-income seniors; and WHEREAS, on or about March 8, 1978, and in accordance with Section 34 of the Lease, the original lessee, Senior Citizens Housing Development Corporation of Miami Beach, assigned the Lease to Lessee, and such assignment was duly recorded in O.R. Book 9967, Page 230 of the public records of Miami -Dade County; and WHEREAS, Lessee desires to obtain financing, either through a leasehold mortgage, low income housing tax credit equity providers, or other financing vehicles eligible for affordable/elderly housing projects such as the Building, for the purpose of constructing certain capital improvements or other renovations to the Building, including building systems, individual dwelling units, and common areas, with the intent for such improvements, as defined more fully in Section II of this Amendment No. 1, to improve security, safety, and the quality of living conditions for the Building's residents; and WHEREAS, in order to obtain Tong -term financing for the Lessee's proposed renovations, Lessee requests an extension of the Term, for a period of fifty (50) years, following the expiration of the initial term on July 8, 2026; and WHEREAS, in view of the City Commission's desire to support and incentivize affordable housing projects within the City of Miami Beach, including affordable elderly housing, the City Commission desires to extend the term of the Lease, and waives the competitive bidding and appraisal requirements of Chapter 82-37 and 82-39 of the City Code, finding it in the best interests of the City to do so. NOW THEREFORE, the Lessor and Lessee for and in consideration of the mutual covenants, agreements and undertakings herein contained, do by these present mutually covenant and agree to amend the Lease Agreement, as follows: 10i1i4 I. Recitals. The recitals to this Amendment No. 1 are incorporated by reference as if fully set forth herein. Lessee warrants and represents that the recitals to this Amendment No. 1 are true and correct 11. Lessee's Construction of Additional Im • rovements at the Buildin A. Lessee shall, at its sole cost and expense, be solely responsible for the design, development and construction of renovation improvements at the Building, including renovations to individual dwelling units thereof, as generally described in the scope of work set forth in Exhibit "A" attached hereto, and in accordance with the requirements set forth herein (the "Additional Improvements"). B. The Additional Improvements shall include all work that may be required for the Building to be in compliance with all applicable laws (including, without limitation, the Florida Building Code), and Miami -Dade County's forty (40) year re -certification requirements. C. The Additional Improvements shall also include enhancements to generator capacity to ensure the continued operation of HVAC, elevators, life safety systems, and other Building systems after a tropical storm, hurricane, or other acts of God that may impact the Building and the safety of residents in the Building. Specifically, Lessee shall acquire sufficient generators to maintain ambient temperatures at 80 degrees or Tess for a period of up to ninety- six (96) hours In the event of a loss of electrical power or other emergency situation. D. If necessary, Lessee shall obtain the requisite financing, in accordance with the provisions of this Lease (as amended herein), to complete the Additional Improvements, with the proceeds of such financing used for the design, development and construction of the Additional Improvements. E. Prior to commencing with the construction of the Additional Improvements, Lessee shall submit its proposed final plans for the Additional Improvements to the Lessor, to permit the Lessor (in its proprietary capacity as Lessor pursuant to this Lease, and without limiting Lessor's regulatory right of review or approval of the Additional Improvements in its capacity as an Agency Having Jurisdiction), to verify that the Lessee's final plans for the Additional Improvements satisfy the requirements set forth in this Amendment No. 1. F. With respect to the portion of the Additional Improvements that consist of renovations to individual dwelling units, Lessee shall phase the construction in such a manner as to minimize the disruptions associated with the relocation of residents in the Building. To the extent possible, Lessee shall relocate residents to other dwelling units that may be available in the Building, so as to maintain the continuity of social services and other on-site programming for residents in the Building as their individual dwelling units are being renovated. In furtherance thereof, Lessee agrees to maintain at least one dwelling unit in the Building as a temporary dwelling unit, to house resident(s) of the Building while their dwelling unit is being renovated. 111. Registration of Residents for Emergency Evacuation Purposes. A. Lessee shall comply with and implement the Miami -Dade County's annual registration of eligible tenants for the County's Emergency Evacuation Assistance Program (EEAP), utilizing the forms attached hereto as Exhibit "B" (EEAP Application) and Exhibit "C" (Emergency Evacuation Pickup Sites) (or any successor forms as may be established by Miami - Dade County from time to time), for elderly and/or disabled residents of the Building who (1) are unable to evacuate on their own due to a specialized transportation need; (2) are homebound, unable to walk to a bus pickup point, and/or may otherwise not have access to transportation 105 options; or (3) have medical needs that prevent them from evacuating on their own, such as bed bound residents, or residents on life-sustaining medical equipment requiring electricity, or residents requiring assistance with daily life activities. In the event an evacuation order is issued for the area where the demised premises are located (whether such evacuation order is mandatory or voluntary), Lessee shall exercise diligent, good -faith efforts to encourage residents of the Building to evacuate the Building as soon as possible. IV. Leasehold Mortgage or other Financing. A. Notwithstanding any provision to the contrary in the Lease, including Section 7 thereof, Lessee may encumber the demised premises with a leasehold mortgage or other financing relating to the demised premises or the Lease ("Leasehold Financing") as follows: Lessor agrees to execute a non -disturbance agreement (containing language reasonably acceptable to the Lessor) for the benefit of Lessee and the holder of any leasehold mortgage or other financing encumbering the demised premises ("Lender") and to cooperate with Lessee's efforts to obtain financing, including the execution of any necessary documents, so long as such documents are subject to the reasonable approval of the Lessor's attorney. No Leasehold Financing shall be valid or of any force or effect unless and until Lessor has consented thereto in writing (which consent shall be conditioned upon Lessee's compliance with the terms set forth herein, and which consent shall not otherwise be unreasonably withheld) and a true copy of the original of each instrument creating and effecting such Leasehold Financing, together with written notice containing the name and post office address of the Lender has been delivered to the Lessor, to the attention of its Asset Management/Real Estate Department. Further, the Leasehold Financing shall specifically provide: 1. That the Leasehold Financing is subject to all of the terms, covenants and conditions of this Lease; 2. That the Leasehold Financing encumbers only the Lessee's interest created by this Lease in the demised premises and the Building; 3. That the rights of the Lessor pursuant to this Lease will not be affected by the terms of the Leasehold Financing; 4. That the Lender shall waive all right and option to obtain and apply proceeds of any insurance or the proceeds of any condemnation award toward payment of the sums secured by the Leasehold Financing to the extent such proceeds are required by the terms of this Lease for the demolition, repair or restoration of the demised premises; 5. That the Lender shall agree to send Lessor copies of all notices to Lessee in which such mortgagee claims that there exists one or more uncured defaults under the terms and provisions of the Leasehold Financing, such notices to be sent simultaneously to Lessor and Lessee; 6. That the Lender has obtained no interest whatsoever in the underlying fee of the demised premises as a result of the execution of the Leasehold Financing by Lessee; Only the Lender may acquire any right, title or interest in or to this Lease, by acceptance of a deed or other instrument of conveyance thereof, by purchase at a foreclosure sale or by transfer in lieu of foreclosure, and will conclusively be deemed to have accepted such right, title or interest subject to all of the terms, covenants and conditions of this Lease; it being the specific intent of Lessee and the Lender that the Leasehold Financing encumber only Lessee's leasehold interest created by this Lease in the Property, and that except as 106 specifically set forth in this Lease, the rights of Lessor shall not be affected by the terms of the Leasehold Financing; and 7. That the Leasehold Financing, and all rights thereunder, shall be subject and subordinate to Lessor's interest in the Property. The Lender shall upon demand, at any time, execute, acknowledge and deliver to Lessor, without expense to Lessor, any instrument that may be necessary or proper to confirm the subordination of the Leasehold Financing to the Lessor's interests in the Property. V. Physical Condition Standards/Compliance with HUD Standards. A. As part of Lessee's maintenance obligations under Section 10 of the Lease, and without limitation of Lessee's maintenance obligations as otherwise specified in the Lease, Lessee shall, at its expense, comply with the requirements of the Facility Condition Index attached hereto as Exhibit "D," so as to maintain the Building in a Fair condition or better, as set forth in Exhibit "D." B. As part of Lessee's maintenance obligations under Section 10 of the Lease, and without limitation of Lessee's maintenance obligations as otherwise specified in the Lease, Lessee further agrees to maintain the Building in a decent, safe and sanitary condition, and in good repair, in a manner that meets the Housing Quality Standards (HQS) of the U.S. Department of Housing and Urban Development with respect to multi -family dwelling units, including the Uniform Physical Condition Standards (UPCS) set forth in 24 CFR, Part 5, Subpart G, and 24 C.F.R. Part 200, Subpart P, and 24 C.F.R. Part 982, with respect to the Building, Building exterior, Building systems, individual dwelling units, Building common areas, and health and safety considerations affecting the Building and residents thereof. Lessee shall, upon thirty (30) day notice from the Lessor, promptly correct any individual deficiencies that may be identified from time to time with respect to any of the foregoing HQS or Uniform Physical Condition Standards, or otherwise with respect to Lessor's maintenance obligations as set forth in Section 10 of the Lease. 1. Lessee agrees to promptly provide the Lessor with a copy of any HUD physical condition assessment report relating to the Building or any portion thereof, including the HUD's Real Estate Assessment Center ("REAC") inspection report within thirty (30) days following Lessee's receipt of same from HUD. In addition, Lessee shall provide Lessor with Lessee's final HUD REAC score for the Building (or any successor uniform physical inspection protocol or scoring system that may be developed by HUD from time to time) within thirty (30) days following receipt of its final HUD REAC score. 2. Without limiting the Lessee's obligation to maintain the Building in a decent, safe and sanitary condition and in good repair, including Lessee's obligation to correct any individual deficiencies that may be identified from time to time with respect to any of the foregoing HQS or Uniform Physical Condition Standards, or otherwise with respect to the maintenance obligations set Section 10 of the Lease, Lessee specifically agrees to maintain, throughout the Term of this Lease (including any renewal Term provided for in this Amendment No. 1), an overall final REAC score of no less than 80 points. Lessee specifically agrees that an overall final REAC score of less than 80 points shall constitute a default of this Lease, entitling Lessor to terminate this Lease if such default(s) items is/are not cured no later than nine (9) months following HUD's release to Lessee of the final HUD REAC inspection report. If deficiencies remain unresolved after the nine (9) month cure period, the Lease shall be subject to immediate termination at Lessor's sole discretion. Should the federal government establish any successor inspection protocol scoring system to replace the REAC scoring system, Lessee agrees to maintain, throughout the Term (and any renewal Term herein), an overall final score that is equivalent to an overall REAC score 10'7 of 80 points or greater, with an overall physical condition assessment score indicating that the Building is being maintained in a good condition). C. As part of Lessee's maintenance obligations under this Lease, as amended herein, Lessee shall be solely responsible for obtaining the forty (40) year re -certification for the Building, as required by the Miami -Dade County Code, and for recertifying the Building every ten (10) years thereafter, as required by the Miami -Dade County Code. D. At Year 40 of the renewal term of this Lease (as provided in Section X of this Amendment No. 1), Lessee shall engage a third -party licensed engineering firm, selected and approved by both parties, to complete a Capital Needs Assessment (CNA) inspection as attached hereto as Exhibit "E" to ensure that the Building, its improvements and systems are structurally sound and in good working order and conform to the requirements of any Governmental Authority at the expiration of this Lease. Related costs of the CNA shall be paid by a reduction of Lessee's annual Lease payment for that given year only; unless the year of inspection coincides with already scheduled HUD required CNA inspection, in which case the Lessee shall pay for the inspection. The resulting CNA shall specify the remaining useful life of all building systems and assist the Lessor and Lessee's decision to develop a recapitalization plan for the property for the remainder of the Term, or for any extension thereof, if any is approved by the City Commission at its sole discretion. Notwithstanding the foregoing, all periodic or annual HQS or UPCS inspections required and performed by HUD, as outlined in Section V.B of this Amendment No. 1, shall continue until the expiration of the Lease . E. With respect to the generator (as set forth in Section II of this Amendment No. 1), Lessee shall acquire and provide for the safe maintenance of sufficient fuel to ensure that in an emergency situation the generators can function to maintain ambient temperatures at 80 degrees or Tess for a period of up to ninety-six (96) hours in the event of a loss of electrical power. Lessee shall implement policies and procedures to ensure that the staff at the Building can effectively and immediately activate and maintain the generators and fuel required for the operation thereof. VI. Inspection and Audit. A. As part of Lessor's right of inspection pursuant to Section 16 of the Lease, and without limitation of any rights of inspection otherwise specified therein, Lessee agrees that Lessor may inspect the Building any time upon reasonable notice by authorized representatives of the Lessor, or by any other State, County, Federal and/or municipal officer or agency having responsibilities for inspections of such operations and/or Building provided, however, that such right shall be exercised in such manner so as not to interfere with Lessee in the conduct of Lessee's activities ion the Building. In conducting any Building inspections, Lessor may, but shall not be required to use, the HUD inspection checklist form attached as Exhibit F hereto (or any successor form as may be established by HUD from time to time). Lessee agrees to within 24 hours of a written notice from the Lessor to undertake corrective actions to cure any deficiency cited by such inspectors. Throughout the term of this Lease, Lessee shall retain its financial and other records pertaining to its operation of the Building for the immediately preceding three (3) years, and such records shall be open and available to the City Manager or his designee, as deemed necessary by the City Manager or his designee, upon ten (10) business days' written notice from the City Manager or his designee that the Lessor desires to review said records. VII. Municipal Parking on Ground Floor of Demised Premises. Nothing in this Amendment No. 1 shall apply to, or otherwise have any effect on,the municipal parking spaces (metered or otherwise) managed and operated by the City on th ground floor of the Building 108 below the demised premises, nor shall this Amendment No. 1 apply to, or have any effect on, any use agreements between Lessor and Lessee or other agreements related thereto. VIII. Assignment/Transfer of Interests. A. Lessee shall not assign sublease or encumber its interest in this Lease, as amended, or in the Building, without Lessor's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, provided, however, that the foregoing shall not apply to (1) sub- leases or rentals of individual dwelling units in accordance with the terms and conditions of this Lease, (2) an assignment or sublease of the whole of the Lease to Lessee's parent entity, subsidiary, or entity that is controlled by or under common control with Lessee, or (3) an entity upon which Lessee is merged or consolidated. Lessor's consent to assignment shall be deemed • to be "unreasonably withheld" if the proposed assignee is of such financial standing and responsibility at the time of such assignment as to give reasonable assurance of the payment of all rent and other amounts reserved in this Agreement and compliance with all the terms, covenants, provisions and conditions of this Lease, as amended. Any assignment in violation of this subsection shall be void. IX. HUD/Related Federal Approvals. Pursuant to Sections 20 and 34 of the Lease, this Amendment No. 1, shall be subject to and contingent upon Lessee obtaining the consent of any regulatory agency with any interest in or jurisdiction over the Lessee or the Building, including the U.S. Department of Housing and Urban Development, the Federal Housing Commissioner, or any other agency or regulatory body, as applicable. X. Renewal of Lease Term. Section 25 of the Lease is hereby deleted and replaced in its entirety with the following: Subject to and contingent upon Lessee's compliance with the terms and conditions of this Lease, as amended by this Amendment No. 1, and provided that Lessee is in good standing and not otherwise in default of any of its obligations hereunder, at the conclusion of the initial term of this Lease on July 8, 2026, this Lease shall be extended for an additional term of fifty (50) years, commencing on July 9, 2026, and expiring on July 8, 2076. XI. Annual Survey. Lessee agrees to conduct an annual satisfaction survey of residents, in a form comparable to Exhibit "G" and shall provide Lessor with a copy of the survey results upon request (including, at Lessor's option, a copy of the individual surveys completed by residents). XII. Ratification of Lease. Except as specifically amended herein, all other terms and conditions of the Lease shall remain in full force and effect. In the event there is a conflict between the provisions provided herein and the Lease, the provisions of this Amendment No. 1 to Lease shall govern. Remainder of Page Intentionally Left Blank 1A 9 IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto as of the day and year first written above. BY LESSOR: Attest: CITY OF MIAMI BEACH, FLORIDA Rafael Granado, CITY CLERK Dan Gelber, MAYOR STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2018, by Mayor Dan Gelber and Rafael Granado, City Clerk, or their designees respectively, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this day of , 2018. My Commission Expires: Notary Public, State of Florida at Large Commission No.: 106o APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Ctv Attomey c4y BY LESSEE: Attest: Signature Print Name STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. Morton Bahr, PRESIDENT The foregoing instrument was acknowledged before me this day of , 2018, by Morton Bahr, President, on behalf of the Miami Beach Senior Citizens Housing Development Corporation, Inc., who has produced identification or is known to me to be the person described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this day of , 2018. My Commission Expires: Notary Public, State of Florida at Large Commission No.: 101 EXHIBIT "A" Additional Improvements 102 Council Tower8. North r South /533 & 1040 Collies Avenue, NCiami Beach, FL 33139' Professionally Operated By: Elderly Housing Development & Operatians1c093ion Council Towers N/S Refinance Prospect (August 16, 2017) Overview Council Towers consist of two, 12 -story towers with a combined 252 -units located on 533 & 1040 Collins Avenue (Council Towers S & N). The property was built in 1976 and has always offered quality, dean and safe affordable housing for low-income senior citizens. The property is owned by Miami Beach Senior Citizens Housing Development Corporation, Inc. with a 50 year Air Rights Agreement (Land Lease) dated July 9, 1976 to EHDOC/Dade County Council for Seniors, Inc. The Land Lease expires on July 9, 2026. As part of our ongoing mission and commitment to existing and future senior residents, and due to the need for a capital renovation of the buildings after years of exposure to saltpeter and normal wear and tear, it is time to perform capital improvements to the property for the health and safety of its residents and for its Tong -term preservation. This planned renovation would include but not be limited to; site work, exterior facade work, new windows, interior common areas and office renovations, apartment renovations, and building systems (e.g. elevators, roof, electric, plumbing, water pumps, generators, fire alarm systems, etc.). Funding of the project would involve a first mortgage using HUD 223(f) affordable housing loan program. It is in the best interest of the project to take advantage of existing low interest rates. As mentioned above, this project will benefit the 252 senior households now living in the property, The property averages Tess than 10% annual turnover and currently has approximately 234 prospects on the wait list. Existing Bldg. Size: 1040 Collins: 12 story building (125 units) Approx. 115,036 S.F. 533 Collins: 12 story building (125 units) Approx. 115,231 S.F. HUD REAC Score: 93 (October 2015) Zoning: GU Geographic Location: • 2 Blocks West of Ocean Drive • 2.0 Miles East of MacArthur Causeway • 11.2 Miles East of MIA (Airport) * 5.6 Miles East of 1-95 1094 Scope of Work Site Work: Parking lot seal coating and re -striping, replace exterior signage and upgrade garage lighting. Exterior Facade Work: Replace all windows and balcony slider doors, replace Community Room and Foyer Lobby windows with storefront, and clean, repaint and provide waterproofing as necessary. Roof Replacement: Replace roof with energy star rated wind warranty material. Interior Renovations: Install Lever door hardware to public bathrooms, trash rooms, common stairs and apartment entry doors, flooring for first floor and elevator lobbies "wood look" plank tile, replace corridor VCT on floors 2-12, replace ceiling tiles, replace lighting, and new window treatment throughout. Second Floor Common Areas and Offices: Administration, Service Coordinator, and Property Management offices, refurbish mailbox area, improve Community Room and Accessible Kitchen, replace ceiling and lighting, remove gutter trim and add pairs of doors from corridor, and upgrade public bathrooms to ADA accessibility. Apartment Renovations: Refurbish entry door and new door knocker, viewer and lever hardware, replace interior doors as needed, make 5% or 6 residential units in each Tower UFAS handicap accessible, renovations to accommodate hearing impaired in 3 units in each Tower, and new lever hardware for all interior doors, Replace kitchen cabinetry with door/drawer pulls, new Formica countertops, full size energy -star rate electric range with smart -burners and ventilation hood, single bowl sink, faucet and refrigerator. New light fixtures, new VCT flooring throughout with tile in bathroom and kitchen, and paint walls, trim, doors and ceiling, The bathroom will include the replacement of the toilet with 17" high low flow, replace sink with vanity, countertop with integral bowl sink and low flow faucet, replace mirror medicine cabinet, replace tubs with walk-in showers and roll -in showers in all ADA units, and replace shower control trim ring with single lever, Building Systems: Evaluate chiller and corresponding black iron pipes, chiller replacement, coil replacement, trash chute and trash compactor, elevator systems upgrade, inspect and video sanitary drains, replace domestic water pumpand all main and branch valves, diesel fire pump, generator, electrical, new exhaust fans in kitchens (hood) and baths (fan light), and complete emergency pull -cord station and fire alarm panel replacement. 1095 Proposed Financing Source & Uses (Refinance HUD 223(f)) SOURCES Permanent Financing Sources $ Per Unit HUD 223(f) Mortgage 10,962,030 98,57% 43,500 Capital Contribution Tax Credit 0 0.00% 0 Replacement Reserves Purchased with Prop. 74,100 0.67% 294 Deferred Developer Fee 84,972 0.76% 337 TOTAL 11,121,102 100.00% 44,131 USES Land Acquisition & Demolition 0 0,00% 0 Payoff of Existing Debt 1,023,066 9.20% 4,060 Hard Construction 6,115,915 54.99% 24,270 Hard Cost Contingency (10%) 611,592 5,50% 2,427 Developer Fee 1,131,918 10,18% 4,492 Reserves (Est. 4 Months) 1,015,428 9,13% 4,029 Resident Relocation 250,000 2.25% 992 FF&E (Furniture, Fixtures & Equipment) 75,000 0.67% 298 Architectural & Engineering Fees 150,000 15,000 1.35% 0.13% 595 60 Survey ($7,500 Each Bldg.) Construction Insurance 50,000 0.45% 198 Construction Interest 200,000 1.80% 794 HUD Inspection Fee (1% Repairs) 67,275 0.60% 267 HUD Mortgage Insurance Premium (0,25%) 27,405 0.25% 109 HUD Exam Fee (0.30%) 32,886 0.30% 131 Financing Fee (1%) 109,620 0.99% 435 Bond Financing Fee (5.06%) 0 0.00% 0 Lender Inspection Fee 8,500 0,08% 34 Appraisal 15,000 0.13% 60 Market Study 0 0.00% 0 Environmental (ESA, Radon) 12,000 0.11% 48 PCNA 13,950 0.13% 55 Independent A&E Cost Review 18,000 0,16% 71 Cost Certification 12,000 0.11% 48 Title & Recording 0 0.00% 0 FHA Lender Legal 17,500 0.16% 69 Mortgagor Legal 50,000 0.45% 198 Organizational Expense 99,047 0.89% 393 TOTAL DEVELOPMENT COSTS 11,121,102 100.00% 44,131 SUPLUS/(GAP) (0) 0.00% 1096 Debt Service Coverage Ratio -15Year Projection YEAR 1 2 9 4 0 7 8 9 10 Income $3,237,548 $3,302,298 $3,368,344 3,435,711 $3,504,426 $3,574,514 $3,646,004 $3,718,924 $3,793,303 $3,869,169 En0n se NOI ($2,451,945) ($4523,885) $778,413 ($2,597,950) $770,394 $683,474 ($2 674,205) $761,507 $683,474 ($2,7s2,713) (p,833,542) ($2;916,761) ($3,002,441) $716 423 ($3,090,655) 03,181,4781 $785,602 $751,713 $683,474 lig $68,239 $740,972 $729,243 $702,648 $687,691 $683,474 „Of $4,217 65 $683,474 $683,474 $683,474 57,498 $683,474 1, 7 $45,769 $683 474 , 1,05 fi38 010 ,, , $683,474 , 3 $19 174 , 19SCR, 1,13 114 LB. 1,11, Cash FIow $102,128 $94,940 $86,920 $78,033 Management/ Experience The property will continue to be managed and operated by EHDOC management and whose years of experience qualifies them as the best suited for the task. An EHDOC Senior Analyst in collaboration with a licensed general contractor, architect, engineers, and members of EHDOC's management team will be assigned to oversee the refinance and rehab of the property. KlOs will be measured as follows: Number of tenants served/accommodations +250 Number of residential units renovated/rehabilitated = 250 REAC scores for the property after project completion = 95% score or better Turnover rates = sustained at or below 1% vacancy Energy Efficiency and Utility Cost reduction for the towers = tracked reduction of energy footprint costs by 15% Objective Project renovations will benefit all current residents that occupy the 250 residential units at the property, including handicap and visual/hearing impaired. The renovations will also provide current employees and service providers with a safer and more efficient work environment. The office renovations will offer an inviting, comfortable and aesthetically suited place of work, and the upgraded building systems will significantly reduce inconveniences to residents and workload of existing staff, Additionally, the development work will create construction related jobs in excess of 230 tradesmen and 8 Administrative & Architectural and Engineering staff. Residents will not be relocated through the renovation phase. EHDOC has a long history of successful and efficient rehabilitation of high-rise residential communities with the residents remaining "in place". EHDOC's primary objective is to complete the renovation on-time and within budget with minimadisruption to the residents lives and daily management of the property. Residents will be required to leave &left unit (selected group of residents each week) by 8:OOAM each weekday (no weekends) and may return to their unit by 6:OOPM each night. Specifically, blocks of 3 units to start for the first 2 weeks; 6 units per week for le next 4-6 weeks; 9 units per week for the next 6-8 weeks; and 12 units per week for the duration of the rehab. Resident personal property will be packed in secured, storage tubs ari1ik97ates for only the rooms of their apartment under renovation. Repairs will commence in the kitchen (residents will lose their kitchen use for one night - meal service will be arranged in the community room for their convenience) and bathroom fixtures, which takes two days to complete, The flooring replacement, lighting and door replacements will take 1-2 days to complete, and window replacements and drywall repair and painting will take 1-2 days. Last, the bedroom will take one full day. Multiple trades work on individual 30 minute blocks of time in an integrated and strategic fashion to ensure that plumbing, electrical, mechanical, structural/windows, painting, and flooring are coordinated, The Council Towers renovation with resident's in-place will be the 14th project EHDOC has undertaken since 2009. EHDOC understands and is fully prepared with qualified professional staff to assist senior residents who may become disoriented, confused, or impatient during the rehabilitation process. Projected Timeline September 2017 City of Miami Beach Approval of Air Rights Extension October 2017 Notify Residents of Planned Renovation (Resident Meetings) Air Rights Agreement Executed and Recorded November 2017 Apply for Refinance/Rehab Funds April 2018 Closing May 2018 Rehab Commences June 2019 Substantial Rehab Completion 1098 North & South Cf) CJ (1) 4:1 cia 533 & 1040 Colli ,44 1099 s as necessary 0 t4f) ax code and en c") CL O4)0 c bb 6 c.) a) 0 ci-i '-zzi a) a) a• 0 —0 0 .,, t.. o 6 gal 4,) 49 , Cli PbO4) • Vi a) - -, 0 "p • "' 0 bt) •-4 crl t'.4) cf) 0 g 1 ci °1:14 ,+' 0. • bi) tg r-' ?2' o H ( '" . o v.) 0 p., a) a) a) o tio 0 0 -d -ti A 8, -,,,, 4 4 V 0 P4 P., d cd ae4 P4 re - C6 J.( 00 • 0 0 • (1) 0 6 0 g as necess • * 0 • • Trash Chute and HVAC Systems 5 cr. 6 • • • 0 • ill 0 0 • • * • • r all two (2) new generators 0 0 • 0 0 • 0 N P 01 O�ori 0 N I''' y1 oh bQi d O '-d g.c 4) et;,r�° p o o1 4d-0 b a�o 0 aen r2g 0 • r.6 :4 i a ) 0 a � E 0 0 • 1— a> k� ° z. a> a> a> g W Ii ' O • •'n 0 • • • • U • • • • • CO W 11t1 v j a> E o c*, N • • • • • • • U o0 Q) N Q 'cch gq un • N W cc• i cd6 0 H • CA c) 77) v Z a • • . • in the last three years. . N 8 0 0 0 rt rd 0 iii Zti Z . . . . • • Total Improvements GC Overhead/ Profit 1102 A National Leader Providing la ih Quality, Affordable Housing for Senior Citizens Mission Elderly Housing Development & Operations Corporation (EHDOC) develops and manages safe, secure, and affordable housing for senior citizens across the United States. EHDOC advocates for the highest quality of life for the seniors of today and tomorrow. Overview EH DOC builds and manages affordable housing for seniors. EHDOC currently manages 54 multi -family communities a nd has several projects under construction/development, comprising morethan 5,000 apartments, which house roughly 6,000 residents in 14 states, Washington, D.C. and Puerto Rico. EHDOC is a not-for-profit 501(c)(3) organization, which was formed in 1978 by the National Council of Senior Citizens, the advocacy organization responsible for strong support of Medicare and the Older Americans Act. EHDOC is a national leader and advocate at all levels of government in promoting independent living and life enrichment for seniors, EH DOC has a fully trained staff to manage and develop Low -Income Tax Credit (LIHTC) properties, Staff is Licensed and certified in Housing, Tax Credits and Property Management. EHDOC properties have averaged scores greater than 90 from HUD's Real Estate Assessment Center (REAC), Passing score is 60 and industry average is in the mid-70s. EH DOC's properties have less than 4% turnover rate due to our belief of "Aging in Place" and our commitment to provide supportive services from our service coordinators. Less than 2% of our residents move to an assisted living facility or nursing home. Services • Property Development (as Sponsor, Developer, Co -Developer, Managing General Partner) • Acquisition and Financing; Re -Financing using Low -Income Tax Credits Community Management (as Non-profit Managing General Partner, Non-profit Management Agent) • Social and Health Services Coordination (Service Coordinator within Management Agent) • Establishing the system to support "Aging in Place" through partnering with in-house care medical services Tax Credit Development (Acquisition -Rehabilitation Refinancing and New Development) EHDOC is a multi -faceted company accomplished in completing all aspects of affordable housing development including feasibility studies, land/building acquisitions, site planning and design, entitlements, sourcing of equity and debt, construction management, leasing, debt conversion, and asset management, EH DOC has refinanced and refreshed a substantial portion of its portfolio, while adding new developments using a range of financing tools in which Low income Housing Tax Credits (LIHTC) have played a major role, Currently there are several developments in the pipeline with LIHTC financing. Present pipeline of project financing, utilizing LIHTC 9% and 4% (with Tax Exempt Bonds), approaches $100M in total development cost. Projects are located in California, Illinois, Connecticut, Ohio and Florida, 1103 Tax Credit Investment Benefits Significant benefits from tax credit investment in new property development and in acquisition -rehabilitation accrue to municipalities, property owners and developers, property management agents, and most importantly, current and prospective project residents. EHDOC is deeply experienced in low income housing tax credit funding and aligned with strong investment partners to bring these benefits to fruition: • Existing Project Refinancing — greater $ proceeds for rehabilitation of older buildings and reduced debt obligation via substantial equity investment • New Construction of Affordable Housing — large, available investment pool of capital and favorable tax credit benefits to investors to help fund new projects « Local construction purchasing and jobs creation • Viable replacement project investment source as replacement to lost HUD 202 funding + Reliable funding source to spur new housing development, filling a huge need for many communities (affordable independent and assisted living for the elderly and workforce including firemen, police, teachers, medical technicians, and many other community service employees) Planned Developments with Cities EHDOC actively partners as community project co -developer in new planned developments with cities and communities that share EHDOC's mission for good quality, safe and affordable housing forthe elderly; and which face a shortage of current housing for their lower income residents, EHDOC has experience working with many cities including City of Chicago, City of Miami, City of Miami Beach, City of Canton, OH and City of Waterbury, CT. HUD Experience Of the properties in the EHDOC portfolio and construction pipeline, 47 came under the Section 202 program with Section 8 rental assistance. The remaining 7 are Hugh Carcella Apartments (Section 236) Reading, PA; Stanley Axlrod Towers (Section 202/without Section 8) Miami, FL; Jack Kenny Memorial (Section 236) Rochester, NY; Robert Sharp Towers II (Section 221(d)(4)) Miami Gardens, FL; North Park Village Apartments (developed through the CDBG Program in the City of Chicago) Chicago, IL;J, Michael Fitzgerald Apartments (Section 202/8 with 4% LIHTC and City Chicago Donation Tax Credit) Chicago, IL; and Minerva Manor (Housing Authority Loan and 4% LIHTC with tax-exempt bonds) Fontana, CA. Industry Affiliations EFIDOC is affiliated with the U.S. Department of Housing and Urban Development (HUD), the Alliance for Retired Americans (ARA), Leading Age, National Council on Aging (NCOA), Southeastern Affordable Housing Management Association (SAN MA), National Leased Housing Association (NLHA), and the National Affordable Housing Management Association (NAHMA), Financial and Legal Partnerships EHDOC partners with, among many, the following financial institutions for debt financing, equity investment, insurance, and representation, Debt Financing: Wells Fargo; TD Bank; US Bank; Lancaster Pollard Mortgage Co.; California Statewide Communities Development Authority; AGM Financial Services; Draper and Kramer; and Housing Investment Trust of the AFL-CIO Equity Investment: Stratford Capital Group, US Bank; City Real Estate Investors; TD Bank; and Wells Fargo Insurance Services: Wells Fargo Legal Representation; Bernstein -Shur (EHDOC Corporate General Counsel), Nixon Peabody; Krooth Altman; and numerous firms with strong affiliations with law -income housing development in their respective communities, 580 Sawgrass Corporate Parkway, Ste 100 1 Fort Lauderdale, FI.. 33323 2f3t 9 P: 954,835.9200 1 F: 954,835.0f3 -B 1 www.ehdoc.or•c7 1104 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 CONTENTS Independent Auditor's Report 1-2 Financial Statements: Statements of Financial Position 3-4 Statements of Activities 5 Statements of Cash Flows 6-7 Notes to the Financial Statements 8-14 Supplementary Information; Supplementary Information Required by HUD 17-26 Schedule of Expenditures of Federal Awards 27-28 Summary Schedule of Prior Year Findings 29-30 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 31-32 Independent Auditor's Report on Compliance Far Each Major Program and On Internal Control Over Compliance Required by the Uniform Guidance 33-34 Schedule of Findings and Questioned Costs 36-37 Corrective Action Plan 38 Certification of Officers 39 Certification of Management Agent 40 Independent Accountant's Report on Applying Agreed -Upon Procedures 41-42 1106 ' bellows associates p.a, r,:lifiTIFI:r) PIJIILLC ACeOUN 'Y A N T & A 1:1 V I. A Cl N 5 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Miami Beaoh Senior Citizens Housing Development Corporation, Inc, Miami Beach, Florida. 33139 Report on the Financial Statements We have audited the accompanying financial statements of Miarnl Beach Senior Citizens Housing Development Corporation, Inc,, operating as Council Towers, HUD Project No. 066-EH005, which comprise the statements of financial position as of June 30, 2016 and 2015, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements, Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from rnateriai misstatement, whether due to fraud or error, Auditor's Responsibility Our responsibility Is to express an opinion on these financial statements based on our audit, We conducted our audit In accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, An audit Involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers Internal control relevant to the entity's preparation and fair presentation of the financial statements In order to design audit procedures that are appropriate In the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control, Accordingly, we express no such opinion, An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. .We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion, Opinion In our opinion, the financial statements referred to above present fairly, In all materiel respects., the financial position of Miami Beach Senior Citizens Housing Development Corporation, Inc, as of June 30, 2016 end 2015, and the changes in Its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. 1107 954,838.7000 8roward 305.553,1310 Miami•Uade 954,838,7888 Fax 7890 Peters Rod, Suite G•102 Plantation, FI 33324 www,bellowscpa,com Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information shown on pages 17 to 26 Is presented for purposes of additional analysis as required by the Consolidated Audit Guide for Audits of HUD Programs Issued by the U.S. Department of Housing and Urban Development, Office of the Inspector General, and Is not a required part of the financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements, The information has been subjected to the auditing procedures applied in the audit of the finandal statements and certain additional procedures, including comparing and reconciling such information directiy to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole, Other Reporting Required by Government Auditing .Standards In accordance with Goverment Auditing Standards, we have also issued our report dated September 19, 2016, on our consideration of Miami Beach Senior Citizens Housing Development Corporation, Ino's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance, That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Miami Beach Senior Citizens Housing Development Corporation, Int.'s internal control over financial reporting and compliance. /kuipx,e, P Bellows Associates, P.A. Plantation, Florida September 19, 2016 -2- 1108 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 STATEMENTS OF FINANCIAL POSITION JUNE 30, 2016 AND 2015 ASSETS Cash - operations Tenant accounts receivable Accounts receivable - HUD Accounts receivable - Other Prepaid expenses PROPERTY AND EQUIPMENT Land improvements 39,976 39,976 Buildings 11,043,026 10,730,626 Building equipment - portable 705,413 700,874 Furnishings 1,301,835 1,266,413 Office furniture and equipment 173,309 173,309 Maintenance equipment 36,051 36,051 13,299,610 12,947,249 Accumulated depreciation ....._111,2811421 (10,909,738) 1,913,461 2,037,511 Land _._._ 251,780 251,780 2,165,241 2,289,291 2016 2015 $ 313,956 $ 90,784 28 151 10,540 8,616 1,398 83,084 105,288 409,006 204,838 DEPOSITS Escrow deposits Replacement reserve Tenant deposits held in trust Total Deposits OTHER ASSETS Deferred financing costs Miscellaneous other assets Total Other Assets TOTAL ASSETS 43,739 443,976 780,143 555,624 67,635 64,200 891,517 1,063,800 1,817 2,312 150,049 161,876 151,866 154,188 $ 3,617,630 $ 3,712,117 See accompanying notes to the financial statements -3- 1109 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO, 066-EH005 STATEMENTS OF FINANCIAL POSITION (CONTINUED) JUNE 30, 2016 AND 2015 2016 2015 LIABILITIES Mortgage payable $ 1,8$3,678 $ 2,343,488 Accounts payable - operations 255,466 86,389 Accounts payable - other 7,971 11,049 Accrued wages payable 40,362 52,346 Accrued payroll taxes payable 609 Accrued management fee payable 11,925 13,357 Accrued interest payable - mortgage 10,791 26,666 Miscellaneous current liabilities 29,399 113,203 Tenant deposits held in trust 62,430 61,489 Prepaid revenue 2,191 2,536 TOTAL LIABILITIES 2,304,712 2,710,512 NET ASSETS Unrestricted net assets 1,312,918 1,001,606 Temporarily restricted net assets Permanently restricted net assets TOTAL NET ASSETS 1,312,918 TOTAL LIABILITIES AND NET ASSETS 3,617,630 See accompanying notes to the financial statements -4- 1110 1,001,605 3,712117 REVENUES MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 2016 2015 Rent $ 3,322,643 $ 3,252,270 Financial 12,172 8,268 Other 2,772 14,944 TOTAL REVENUES 3,337,587 3,275,482 EXPENSES Administrative 499,045 399,721 Utilities 472,726 508,199 Operating and maintenance 837,440 906,835 Taxes and insurance 419,443 413,423 Depreciation 476,411 440,649 Amortization 495 495 Financial 143,077 171,446 Multifamily housing service coordinators 177,637 163,407 TOTAL EXPENSES 3,026,274 3,004,175 CHANGE IN NET ASSETS 311,313 271,307 NET ASSETS AT BEGINNING OF YEAR 1,001,605 730,298 NET ASSETS AT END OF YEAR $ 1,312,918 $ 1,001,605 See accompanying notes to the financial statements -5- MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT N0, 066•EH005 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 2016 CASH FLOWS FROM OPERATING ACTIVITIES Rental receipts $ 3,316,021 $ 3,258,187 Interest received 1,457 1,665 Other cash received 2,772 14,944 Total receipts 3,320,250 3,274,796 2015 Administrative (141,809) (145,751) Management fee (144,994) (141,360) Utilities (479,715) (471,448) Salaries and wages (546,557) (440,661) Operating and maintenance (662,785) (700,976) Property insurance (106,121) (139,774) Miscellaneous taxes and insurance (314,664) (288,454) Tenant deposits held In trust (2,494) (1,197) Interest on mortgage (158,942 (160,298) Total disbursements (2,558,0811. ___ (2,489,919) Net cash provided by operating activities 762,169 784,877 CASH FLOWS FROM INVESTING ACTIVITIES Deposits to mortgage escrow and interest retained in account (79,159) (331,155) Withdrawals from the escrow account 479,396 163,032 Deposits to reserve for replacement and interest retained In account (213,804) (211,314) Withdrawals from reserve for replacement - 145,849 Purchase of fixed assets (156,309) (139,971) Other Investing activities - construction In progress (109,211) (64,367) Net cash (used in) investing activities (79,087) (437,926) CASH FLOWS FROM FINANCING ACTIVITIES Mortgage principal payments (459,910) (363,347) Net cash (used in) financing activities (459,910) (363,347) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 223,172 (16,306) BEGINNING OF YEAR CASH 90,764 107,180 END OF YEAR CASH $ 313,956 90.784 SUPPLEMENTAL DISCLOSURES: Noncash Investing activities Purchase of fixed assets $ 196,062 $ 10,789 Construction in Progress (111,038) 87.509 Accounts fay (85,014) {9$,298) Interest paid See accompanying notes to the financial statements -6- 1112 $ 158,942 ,$ _ 160,298 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066EH005 STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 311,313 $ 271,307 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation expenses 476,411 440,649 Amortization expense 495 495 Net realized and unrealized gain on investments (10,715) (6,603) Increase or decrease in: Tenant accounts receivable 123 2,161 Accounts receivable - other (3,323) 358 Prepaid expenses 22,204 22,623 Cash restricted for tenant security deposits (3,435) (3,034) Accounts payable (6,634) 18,771 Accrued liabilities (9,102) 23,359 Accrued interest payable (15,865) 11,148 Tenant deposits held in trust 941 1,837 Prepaid revenue (344) 1,806 Net cash provided by operating activities $ 762,169 $ 784,877 See accompanying notes to the financial statements -7- 1113 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EH005 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Miami Beach Senior Citizens Housing Development Corporation, Inc., operating as Council Towers, (the Project) was organized as a non-profit corporation in the State of Florida, to acquire an interest in real property located in Miami Beach, Florida, The corporation has constructed and operates an apartment complex of 252 units, under Section 202 of the National Housing Act of 1959 and Section 8 of the National Housing Act of 1937. Such projects are regulated by the U,S, Department of Housing and Urban Development (HUD) with respect to rent charges and operating methods, The Regulatory Agreement prohibits any distribution of surplus cash available at the end of each year. The Project's major program is its Section 202 Supportive Housing for the Elderly — Direct Loan. The Project's Section 8 Housing Assistance Payment (HAP) Program provides for a significant portion of the Project's rental income through rental assistance from HUD. The Project's Section 8 program is nonrnajor. The following significant accounting policies have been followed in the preparation of the financial statements: Fixed Assets Fixed assets and organization costs are stated at cost, The Project Currently capitalizes fixed assets over $1,000 and all lesser items are expensed. Depreciation of fixed assets is provided using the straight-line method over the estimated useful lives of the assets, as follows: Years Land improvements 5 Building and equipment -fixed 5-40 Furniture and equipment 5-20 Depreciation expense for the years ended June 30, 2016 and 2015 was $476,411 and $440,649, respectively. Amortization Deferred financing costs are being amortized over the life of the mortgage (40 years) on a straight-line basis. Financial Statement Presentation The accompanying financial statements were prepared in conformity with accounting principles generally accepted In the United States of America. The Project reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Accordingly, none of the Project's net assets are subject to donor -imposed restrictions and are therefore accounted for as unrestricted net assets. 1114 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES jCONTINUEDJ Income Taxes The Project is currently exempt from federal income taxes under Section 501(0(3) of the Internal Revenue Code, The Project's Forms 990, Return of Organization Exempt from Income Tax, for the years ending 2012, 2013, 2014, and 2015 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. Currently no year is under examination, Cash and Cash Equivalents For the statement of cash flows, all unrestricted investment instruments with original maturities of three months or less are cash equivalents. The Project has no cash equivalents at June 30, 2016 and 2015. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, Date of Management's Review Management has evaluated subsequent events through the time of issuance of these financial statements on September 19, 2016. NOTE 2 - RELATED PARTIES The Project is sponsored by Elderly Housing Development and Operations Corporation (EHDOC). The bylaws of the Project require that the Board of Directors be composed of eight members. The President and Executive Director of EHDOC shall, by virtue of their offices, be members of the Board of Directors and the remaining directors shall be selected by EHDOC. EHDOC manages the complex and provides accounting services, for which EHDOC receives fees. The total amount charged by EHDOC for management fees for the years ended June 30, 2016 and 2015 was $143,662 and $142,790, respectively, which is approximately 4.42% of gross receipts, The total amount charged by EHDOC for accounting services for the years ended June 30, 2016 and 2015 was $19,656 for both years. The total amount charged by EHDOC for quality assurance services for the years ended June 30, 2016 and 2016 was $8,190 and $7,898, respectively, For the years ended June 30, 2016 and 2015 the Project incurred other costs to EHDOC in the amount of $374,616 and $410,674, respectively, which may include reimbursements for insurance, pension, and other project expenses. The total due to EHDOC as of June 30, 2016 and 2015 was $30,471 and $13,995, respectively. _g. 1115 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 3 — HUD RESTRICTED DEPOSITS Reserve for Replacement Under the regulatory agreement, the Project is required to set aside amounts for the replacement of property and other project expenditures approved by HUD. Replacement reserve deposits, which approximate $780,143 and $555,624 at June 30, 2016 and 2015, respectively, are held in separate accounts and generally are not available for operating purposes. As of June 30, 2016 the required monthly deposits to the replacement reserve accounts were fully met. As of June 30, 2015, the required deposits to the replacement reserve were not fully met and a finding was issued. NOTE 4 — MORTGAGE PAYABLE The mortgage payable to and insured by HUD was approved for $7,773,700. The mortgage is payable In 480 monthly installments of principal and interest, beginning January 1983. The annual Interest rate Is 6.875%. The mortgage note is secured by the apartment complex. Maturities of the mortgage note for the Project, in each of the next five years are as follows: June 304 2017 $ 455,942 2018 488,294 2019 522,943 2020 416,399 2021 - For the years ending June 30, 2016 and 2015 interest expense on the mortgage was $143,077 and $171,446, respectively, NOTE 5 RENT INCREASES Under the regulatory agreement, the Project may not increase rents charged to tenants without HUD approval. NOTE 6— FUNCTIONAL ALLOCATION OF EXPENSES Expenditures incurred in connection with project operations and expenditures made for corporate purposes have been summarized by natural expense classification basis in the statements of activities. -10- 1116 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EH005 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 6 -- FUNCTIONAL ALLOCATION OF EXPENSES (CONTINUEDI For the years ended June 30, 2016 and 2015, the Project expended $3,026,274 and $3,004,175, respectively. They have estimated that on a functional classification basis these expenses would be allocated as follows: Program services General and administrative Fundraising Total 2016 2015_ 2,527,229 $ 2,604,454 499,045 399,721 3,026,274 3,004,175 NOTE 7 — INTANGIBLE ASSETS Intangible assets consist of deferred financing costs associated with the HUD Section 202 Direct Loan program. As of June 30, 2016 and 2015, deferred financing costs were $19,806 for both years. The total deferred financing costs are being amortized over the life of the mortgage (40 years) on a straight-line basis. Accumulated amortization as of June 30, 2016 and 2015 was $17,989 and $17,494, respectively, Amortization expense in each of the next five years is estimated as follows: June 30: 2017 $ 495 2018 495 2019 496 2020 332 2021 Amortization expense for the years ended June 30, 2016 and 2015 was $495 for both years. NOTE 8 — FAIR VALUE MEASUREMENTS Accounting standards provide a framework for measuring fair value based on a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1, which refers to securities valued using unadjusted quoted prices from active markets for identical assets; Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to securities valued based on significant unobservable inputs. Assets and liabilities are classified in their entirety on the lowest level of Input that is significant to the fair value measurement. -11- 1117 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 NOTES TO THE FINANCIAL_ STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 8 - FAIR VALUE MEASUREMENTS (CONTINUED) Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities In active markets that the Project has the ability to access. Level 2 Inputs to the valuation methodology include • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substanttafy the full terra of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement, Changes In valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Asset Valuation Techniques Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets at fair value, There have been no changes in the methodologies used at June 30, 2016 and 2015. • U.S. government securities; Valued using pricing models maximizing the use of observable inputs for similar securities. The following tables set forth by level within the fair value hierarchy a summary of the Project's Investments measured at fair value on a recurring basis at June 30, 2016 and 2015; Fair Value Measurements as of June 30.2016 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Lovell) (Level 1 (Level 3) Total Cash management accounts $ 50,594 $ $ $ • 50,694 U.S. government securities 292,596 292,596 Total $ , 343,190. $ $ $ 343,190 .12- 1118 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 8- FAIR VALUE MEASUREMENTS PiNTINUED) Fair Value Measurements as of June 30, 2015 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Cash management accounts $ 43,908 $ $ $ 43,908 U.S. government securities 288,667 2 N ,587 Total $ 332,476 $ $ $ 332,476 The Project's policy is to recognize all transfers between levels at the beginning of the reporting period. For the years ended June 30, 2016 and 2015, there were no significant transfers in or out of Level 1, 2 or 3, NOTE 9- INVESTMENTS For the years ended June 30, 2016 and 2015, the Project's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $10,715 and $6,603, respectively, as presented in the statements of activities as follows: Net change in appreciation in fair value of investments whose fair value was determined based upon market prices: U.S. government securities 2016 2015 $ 10,715 $ 6,603 Net change in appreciation in fair value of investments $ 10,716 $ 6.603 NOTE 10 - EMPLOYEE BENEFIT PENSION PLAN The employees of the Project are covered under a defined benefit pension plan, The collectively bargained plan is sponsored by the Service Employees International Union, Pension expense for the years ended June 30, 2016 and 2015 was $97,338 and $79,984 respectively. The Project also provides a 401k plan for its employees through Franklin Templeton Investments. The Project matches employee contributions up to a limit of 3% of employee compensation for the year. 401k contribution expense for the years ended June 30, 2016 and 2016 was $5,338 and $5,001, respectively. -13- 1 1 1 9 MIAMI E=ACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 NOTE 11- CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS The Project's sole asset is a 252 -unit apartment building, The Project's operations are concentrated in the multifamily real estate market, In addition, the Project operates in a heavily regulated environment. The operations of the Project are subject to the administrative directives, rules and regulations of federal, state and Local regulatory agencies, including, but not limited to, HUD. Such administrative directives, rules and regulations are subject to change by an act of congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, to comply with a change. The Project maintains its cash balances at two financial institutions, one of which balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Account balances at the other financial institution are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000, which includes a $250,000 limit for cash. At June 30, 2016 and 2015, cash balances exceeded the federaliy insured limit by $684,963 and $506,645, respectively, at the FDIC insured financial institution. At June 30, 2016 and 2015, cash balances exceeded the SIPC insured limit by $91,178 and 0,463, respectively. The Project has not experienced any Toss in such accounts and believes it is not exposed to any significant credit risk on its cash balances. NOTE 12 - RECLASSIFICATIONS Certain items in the June 30, 2015 report have been reclassified to conform to current year classification, Such reclassifications had no effect on previously reported net income, -14- 1120 SUPPLEMENTARY INFORMATION 1121 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 INDEX TO SUPPLEMENTARY INFORMATION REQUIRED BY HUD FOR THE YEAR ENDED JUNE 30, 2016 Statement of Financial Position Data 17-18 Statement of Activities Data 19-20 Statement of Equity Data 21 Statement of Cash Flows Data 22-23 Computation of Surplus Cash 24 Schedule of Changes in Fixed Asset Accounts 25 Schedule of Reserve for Replacement 26 Schedule of Expenditures of Federal Awards 27-28 1122 { MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 STATEMENT OF FINANCIAL POSITION DATA JUNE 30, 2016 ASSETS CURRENT ASSETS 1120 Cash - operations $ 313,956 1130 Tenant accounts receivable 28 1135 Accounts receivable - HUD 10,540 1140 Accounts receivable - commercial rent 1,398 1200 Prepaid expenses 83,084 1100T Total Current Assets 409,006 1191 TENANT DEPOSITS HELD 1N TRUST 67,635 DEPOSITS 1310 Escrow deposits 43,739 1320 Replacement reserve 780,143 1300T Total Deposits 823,882 PROPERTY AND EQUIPMENT 1410 Land 1420 Buildings ' 1440 Building equipment - portable 1460 Furnishings 1465 Office furniture and equipment 1470 Maintenance equipment 1400T Total Fixed Assets 1495 Accumulated Depreciation 1400N Net Fixed Assets OTHER ASSETS 1520 Deferred financing costs 1590 Miscellaneous other assets 291,766 11,043,026 705,413 1,301,835 173,309 36,051 13,551,390 11,386,149 2,165,241 1,817 1590-010 Construction in progress 150,049 1500T Total Other Assets 151,866 1000T TOTAL ASSETS $ 3,617,630 See Auditor's Report -17- 1123 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO, 066-EHQ05 STATEMENT OF FINANCIAL POSITION DATA (CONTINUED} JUNE 30, 2016 LIABILITIES AND NET ASSETS CURRENT LIABILITIES 2110 Accounts payable - operations 2116 Accounts payable - section 8 2120 Accrued wages payable 2121 Accrued payroll taxes payable 2123 Accrued management fee payable 2131 Accrued interest payable • first mortgage 2170 Mortgage payable - first mortgage 2190 Miscellaneous current liabilities 2190-010 Accrued audit fees 2190-010 Accrued accounting fees 2190-010 Accrued health and pension 2210 Prepaid revenue 2122T Total Current Liabilities 2191 TENANT DEPOSITS HELD IN TRUST 255,456 7,971 40,362 609 11,925 1Q791 455,942 9,985 1,700 17,714 2,191 814,646 62,430 LONG TERM LIABILITIES 2320 Mortgage payable - first mortgage 1,427,636 2300T Total Long Term Liabilities 1,427,636 2000T Total Liabilities 2,304,712. NET ASSETS 3131 Unrestricted net assets 3132 Temporarily restricted net assets 3133 Permanently restricted net assets 3130 Total Net Assets 2033T TOTAL LIABILITIES AND NET ASSETS See Auditor's Report -18- 1124 1,312,918 1,312,918 3,617630 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 STATEMENT OF ACTIVITIES DATA FOR THE YEAR ENDED JUNE 30, 2016 REVENUES 5120 Rent revenue - gross potential $ 808,412 5121 Tenant assistance payments 2,470,422 5140 Rent revenue - stores and commercial 46,124 51007 Total Rent Revenue 3,324 958 5220 Vacancies - apartments 5200T Total Vacancies 5152N Net Rental Revenue 5440 Revenue from investments - replacement reserve 5490 Revenue from investments - miscellaneous 5490-010 Escrow deposits 5400T Total Financial Revenue 5910 Laundry and vending revenue 5920 Tenant charges 5990 Miscellaneous revenue 5990-010 Refunds and settlements 5900T Total Other Revenue 5000T Total Revenue 2,315 2,315 3,322,6443 11,513 659 12,172 356 1,646 770 2,772 3,337,587 EXPENSES 6203 Conventions and meetings 1,148 6204 Management consultants 3,000 6210 Advertising and marketing 1,060 6310 Office salaries 181,888 6311 Office expenses 85,147 6320 Management fee 143,562 6330 Manager or superintendent salaries 46,493 6340 Legal expense - project 809 6350 Audit expense 9,985 6351 Bookkeeping fees/accounting services 21,356 6390 Miscellaneous administrative expenses 4,597 62637 Total Administrative Expenses 499,045 6450. Electricity 6451 Water 6452 Gas 6453 Sewer 6400T Total Utilities Expense See Auditor's Report ,.19- 1125 260,981 49,711 25,381 136,653 472,726 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066•EH005 STATEMENT OF ACTIVITIES DATA (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 6510 Payroll $ 223,327 6515 Supplies 181,167 6620 Contracts 44,952 6525 Garbage and trash removal 34,092 6530 Security Payroll Contract 226,361 6546 Heating/cooling repairs and maintenance 65,953 6590 Miscellaneous operating and maintenance 61,588 6500T Total Operating and Maintenance Expenses 837,440 6711 Payroll taxes 41,893 6720 Property & liability insurance 131,967 6722 Workmen's compensation 13,227 6723 Health insurance and other employee benefits 227,464 6790 Miscellaneous taxes, licenses, permits, and insurance 4,892 6700T Total Taxes and Insurance 419,443 6820 Interest on first mortgage payable 143,077 6800T Total Financial Expenses 143,077 6900 Multifamily housing service coordinators 177,637 6000T Total Cost of Operations Before Depreciation 2,549,368 5060T Profit before Depreciation 788,219 6660 Depreciation expenses 476,411 6610 Amortization expense 495 5060N Operating Profit311,313 3247 Change in Unrestricted Net Assets from Operations 311,313 3248 Change in Temporarily Restricted Net Assets from Operations 3249 Change in Permanently Restricted Net Assets from Operations 3250 Change in Total Net Assets from Operations $ 311,313 81000-010 Total first mortgage principal payments required during the audit period. $ 459,910 S1000.020 The total of all monthly reserve for replacement deposits required during the audit period even if deposits have been temporarily waived or suspended. $ 212,394 51000-030 Replacement Reserves or Residual Receipts and releases which are included as expense items on this Profit and Loss statement, $ 51000-040 Project Improvement Reserve Releases under the Flexible Subsidy Program that are included as expense items on this Profit and Loss statement See Auditor's Report -20- 1126 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL. TOWERS PROJECT NO.066-EH005 STATEMENT OF EQUITY DATA FOR THE YEAR ENDED JUNE 30, 2016 S1100-060 Previous Year Unrestricted Net Assets 3247 Change In Unrestricted Net Assets from Operations 51100-065 Other Changes in Unrestricted Net Assets $ 1,001,605 311,313 3131 Unrestricted Net Assets 1,312,918 51100-070 Previous Year Temporarily Restricted Net Assets 3248 Change In Temporarily Restricted Net Assets from Operations 51100-075 Other Changes in Temporarily Restricted Net Assets 3132 Temporarily Restricted Nei Assets S1100-080 Previous Year Permanently Restricted Net Assets 3249 Change in Permanently Restricted Net Assets from Operations S1100-085 Other Changes in Permanently Restricted Net Assets 3133 Permanently Restricted Net Assets • 81100-050 Previous Year Total Net Assets 1,001,605 3250 Change in Total Net Assets from Operations 311,313 51100-055 Other Changes in Total Net Assets 3130 Total Net Assets $ 1,312,918 See Auditor's Report .21- 1127 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO, 066-EHOO5 STATEMENT OF CASH FLOWS DATA FOR THE YEAR ENDED JUNE 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES 81200-010 Rental receipts 81200-020 Interest receipts 81200-030 Other operating receipts 81200-040 Total receipts 81200-050 Administrative 51200-070 Management fee 81200-090 Utilities 81200-100 Salaries and wages 51200-110 Operating and maintenance S1200-140 Property insurance 81200-150 Miscellaneous taxes and insurance 81200-160 Tenant security deposits 81200-180 Interest on first mortgage 81200-230 Total disbursements 81200-240 Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES :g4200-245 Net deposits to the Mortgage escrow account 81200-250 Net deposits to•the reserve for replacement account 81200-330 Net purchase of fixed assets S1200-340 Other investing activities - construction in progress 81200-350 Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES 81200-360 Principal payments - first mortgage 81200-460 Net cash (used in) financing activities S1200-470 NET INCREASE IN CASH AND CASH EQUIVALENTS 51200-480 BEGINNING OF PERIOD CASH 81200T END OF PERIOD CASH See Auditor's Report -22- 1128 $ 3,316,021 1,457 2,772 3,320,250 (141,809) (144,994) (479,715) (546,557) (662,785) (106,121) (314,664) (2,494) (158 942 (2,558,081 1. 762,169 400,237 (213,804) (156,309) (109,211) (79,087) {459,910) 459,910 223,172 90,784 313,956 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 STATEMENT OF CASH FLOWS DATA (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 RECONCILIATION OF NET PROFIT TO NET CASH PROVIDED BY OPERATING ACTIVITIES 3250 Change in total net assets from operations $ 311,313 Adjustments to reconcile net profit to net cash provided by operating activities 6600 Depreciation expenses 476,411 6610 Amortization expense 495 Increase or decrease in: S1200-490 Tenant accounts receivable 123 51200-500 Accounts receivable other (3,323) 81200-520 Prepaid expenses 22,204 81200-530 Cash restricted for tenant security deposits (3,435) 81200-540 Accounts payable (6,534) 81200-560 Accrued liabilities (9,102) S1200-570 Accrued interest payable (15,865) S1200-580 Tenant security deposits held in trust 941 S1200-590 Prepaid revenue (344) 81200-600 Other adjustments - unrealized gain on Investments (10,715) S1200-610 Net cash provided by operating activities $ 762,169 See Auditor's Report -23- 1129 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO, 066-EH005 COMPUTATION OF SURPLUS CASH FOR THE YEAR ENDED JUNE 30, 2016 Surplus Cash, Distributions, and Residual Receipts (Annual) 61300-010 Cash $ 381,691 1135 Accounts receivable - HUD 10,540 S1300-040 Total Cash 392,131 Current Obligations 61300-050 Accrued mortgage interest payable 10,791 S1300-075 Accounts payable - 30 days 255,456 51300-100 Accrued expenses 82,295 2210 Prepaid revenue 2,191 2191 Tenant deposits held in trust 62,430 61300-110 Other current obligations - accounts payable - section 8 7,971 $1300-140 Total Current Obligations 421,134 81300-150 Cash (Deficiency) $ (29,003) 61300-210 Deposit Due Residual Receipts See Auditor's Report -24- 1130 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO, 066.EH005 SCHEDULE OF CHANGES IN FIXED ASSET ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2016 1410P Beginning Balance Land $ 291,756 1410AT Additions 1410DT Deductions 1410 Ending Balance Land 291,756 1420P Beginning Balance Budding 10,730,626 1420AT Additions 312,400 1420A-010/030 A/C unit $ 2,850 1420A-010/030 Automatic doors (2) 13,752 1420A-010/030 Boilers (2), boiler pump, boiler heat exchanger 19,450 1420A-010/030 Cabinets 12,000 1420A-010/030 Elevator generator and motor 9,789 1420A-010/030 Elevator cable and sheave 8,713 1420A-010/030 Fire alarm system and wires 162,624 1420A-010/030 Fire invest doors (11) 20,031 1420A-010/030 Fire pump controllers (2) and fire alarm controller 36,281 1420A-010/030 Fife pump piping 17,910 1420A -010X030 Flow switch and pump 1,060 1420A-0101030 Laundry room ducts (2) 6,000 1420A-010/030 Sliding door 9,250 1420A-010/030 Roof exhaust fan 1,580 1420A-0101030 Water flow and generator switch 2,220 1420t)T Deductions 1420 Ending Balance Buildings 1r�- 1_043026 1440P Beginning Balance Budding Equipment - Portable 700,874 1440AT Additions 4,539 1440A-010/030 Refrigerator 3,049 1440A-010/030 Surveillance system 1,490 14400T Deductions 1440 Ending Batenee Building Equipment • Portable 705,413 1460P Beginning Balance Fumishlrsgs 1,266,413 1460AT Additions 35,422 1460A-010/030 Bathtub 1,200 1460A-010/030 Floating (18) 34,222 14600T Deductions 1460 Ending Balance Furnishings 1,301,835 1465P Beginning Balance Office Furniture and Equipment 1465AT Additions 1465DT Deductions 1466 Ending Balance Office Furniture and Equipment 173,309 1470P Beginning Balance Maintenance Equipment 36,051 1470AT Additions 1470DT Deductions 1470 Ending Balance Maintenance Equipment 36,051 1400PT Total Beginning Balance for Fixed Assets 13,199,029 1400AT Total Asset Additions 352,361 14000T Total Asset Deductions 1400T Total Fixed Assets 13,651,390 1495P Beginning Balance for Accumulated Depreciation 10,909,738 6600 Total Provisions 476,411 1400ADT Total Accumulated Depreciation from Disposed Assets 1496 Ending Balance for Accumulated Depredation 11,386,149 1400N Total Net Book Value , 2405.241 < 173,309 See Auditor's Report -25- 1131 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066. EH005 SCHEDULE OF RESERVE FOR REPLACEMENT FOR THE YEAR ENDED JUNE. 30, 2016 Reserve for Replacement: 1320P Balance at beginning of year $ 555,624 1320DT Total monthly deposits 212,394 13200DT Other deposits 13200D-010 to correct prior year underfunding 612 13201NT Interest on replacement reserve accounts 798 132OUGL Unrealized gain 10,715 1320 Balance at end of the year, confirmed by mortgagee 780.143 13208 Deposits suspended or waived indicator N See Auditor's Report -26- 1132 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO, 066-EHOO5 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2016 Federal Grantor/Pass through Grantor/Program Title U. S, Department of Housing and Urban Development, Section 202 Supportive Housing for the Elderly— Direct Loan Section 8 Housing Assistance Payments Program Total NOTE A — BASIS OF PRESENTATION CFDA Number 14.157 14.195 Expenditures $ 2,343,488 2,470,422 $ 4,813,91Q The accompanying schedule of expenditures of federal awards includes the federal award activity of Miami Beach Senior Citizens Housing Development Corporation, Inc., operating as Council Towers, HUD Project No. 066-EH005, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U,S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Because the Schedule presents only a selected portion of the operations of Miami Beach Senior Citizens Housing Development Corporation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Miami Beach Senior Citizens Housing Development Corporation, Inc, NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting, Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Miami Beach Senior Citizens Housing Development Corporation, Inc, has elected not to use the 10 -percent de minimis indirect cost rate allowed under the Uniform Guidance. See Auditor's Report -27- 1133 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066..EH005 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 NOTE C — U,S, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DIRECT LOAN PROGRAM Miami Beach Senior Citizens Housing Development Corporation, Inc, has received a U.S. Department of Housing and Urban Development direct loan under section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year Is included in the federal expenditures presented in the schedule. Miami Beach Senior Citizens Housing Development Corporation, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2016 consists of: CFDA Number Outstanding Balance at Program Name June 30, 2016 14.157 Section 202 Supportive Housing for the Elderly — Direct Loan $1,883,578 -28- 1134 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2016 FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT FINDING No. 2015-001; Section 8 Housing Assistance Payments Program, CFDA 14.195 Current Status: Cleared. Statement of Condition for Previous Finding: Previous Response For Finding: Narrative: The Project's required monthly Replacement Reserve was increased in October 2014, The Project failed to implement the increase in the monthly deposit during the audit period, Management and the bank have been informed of the increase in the amount to be funded monthly. Corrective action has been taken and the required monthly deposits are being properly funded, FINDING No. 2015-002: Section 202 Supportive Housing for the Elderly, CFDA 14,157 Current Status: Cleared. Statement of Condition for Previous Finding: Previous Response For Finding: Narrative: The Project failed to make a timely payment on June 2015's mortgage, as required by the Regulatory Agreement. Two payments were made on 7/8/2015 in order to be current with the monthly mortgage, To ensure timely monthly payments, property accountants will be made aware that payments recorded, should be verified monthly with the bank statements. Corrective action has been taken and the required monthly mortgage payments are being made on a timely basis, -29- 1135 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO.066-EH005 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 FINDING No. 2015-003: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Current Status: Statement of Condition for Previous Finding: Previous Response For Finding:. Narrative: Cleared. The Project has overfunded the insurance escrow account. Management has made the bank aware of the excessive amount being escrowed and have reduced the monthly insurance escrow to a more accurate amount. Corrective action has been taken and the Project has ensured that the insurance escrow account is not excessively overfunded by reducing the monthly funding, FINDING No. 2015-004: Section 8 Housing Assistance Payments Program, CFDA 14.195 Current Status: Statement of Condition for Previous Finding: Previous Response For Finding: Narrative: Cleared. The Project did not refund a security deposit plus accrued interest to a tenant within the state and HUD requirement of 30 days. The security deposit and accrued interest have been refunded to the moved out tenant, in addition, training has been set up for managers and staff to ensure that going forward all moved out tenants are refunded their security deposits plus accrued interest and/or provided with an itemized list of any unpaid rent, damages, and an estimated cost for repair within the period required by the state law and HUD. The Project refunded the tenant the amount owed for the security deposit and accrued interest. However, In the current year, the Project has a repeat security deposit finding on four tenants, -30- 1136 bellows associates p.a. LRr{TII"IF I7 I,l1rJ I. c; A C 0 IJ NTANTS & A r. l y r C i it ". INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS iPERFORMED IN ACCORDANCE WITH GOV8'l NMENTAUDITING STANDARDS To the Board of Directors of Miami Beach Senior Citizens Housing Development Corporation, Inc. Miami Beach, Florida 33139 We have audited, In accordance with the auditing standards generally accepted In the United States of America and the standards applicable to financial audits contained In Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Miami Beach Senior Citizens Housing Development Corporation, Inc., operating as Council Towers, which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated September 10, 2016, Internal Control over Financial Reporting in planning and performing our audit of the financial statements, we considered Miami Beach Senior Citizens Housing Development Corporation, Int.'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Miami Beach Senior Citizens Housing Development Corporation, lnc,'s internal control, Accordingly, we do not express an opinion on the effectiveness of Miami Beach Senior Citizens Housing Development Corporation, Inc,'s internal control. A deficiency In internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis, A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is fess severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies In internal control that we consider to be material weaknesses, However, material weaknesses may exist that have not been identified, .31- 1137 954.83/1,7000 8roward 305.5531310 Miami -Dade 954.838,7888 Fax 7890 peters Road,Sulte G•102 Plantation, FI 33324 www,beilowscpa,com Compliance and Other Matters As part of obtaining reasonable assurance about whether Miami Beach .Senior Citizens Housing Development Corporation, Inc,'s financial statements are free from materiae misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance, Accordingly, this communication is not suitable for any other purpose. 4..etkpue, /4510-cLdko /' Bellows Associates, P,A, Plantation, Florida September 19, 2016 -32- 1138 bellows associates p,a. C. Llfdl'IPIVLT P]JHI..1c ACCOUNTANTS tt A 0 V I V 0 n 5 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors of Miami Beach Senior Citizens Housing Development Corporation, Inc. Miami Beach, Florida 33139 Report on Compliance for Each Major Federal Program We have audited Miami Beach Senior Citizens Housing Development Corporation, ino,'s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect en each of Miami Beach Senior Citizens Housing Development Corporation, inc,'s major federal programs for the year ended June 30, 2010, Miami Beach Senior Citizens Housing Development Corporation, ino,'s major federal programs are identified In the summary of auditor's results section of the accompanying schedule of findings and questioned costs, Management's Responsibility Management is responsible for compliance with the federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs, Auditor's Responsibility Our responsibility is to express an opinion an compliance for each of Miami Beach Senior Citizens Housing Development Corporation, Inc.'s major federal programs based, on our audit of the types of connplianoe requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; thee standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred, An audit includes examining, on a test basis, evidence about Miami Beach Senior Citizens Housing Development Corporation, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Miami Beach Senior Citizens Housing Development Corporation,. Inc,'s compliance, Opinion ori Each Major Federal Program In our opinion, Miami Beach Senior Citizens Housing Development Corporation, Inc. complied, In all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of Its major federal programs for the year ended June 30, 2016. -33- 1139 954.838,7000 Broward 305,553,1310 Miami -Dade 954,838,7888 Fax 7890 Peters Road, Suite G-102 Plantation, FI 33324 www,beilowscpa,com 4.1.4010. 4332.2 Other Matters The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2016-001. Our opinion on the major federal program is not modified with respect to this matter. Miami Beach Senior Citizens Housing Development Corporation, Inc.'s response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs, Miami Beach Senior Citizens Housing Development Corporation, Inc.'s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response, Report on Internal Control over Compliance Management of Miami Beach Senior Citizens Housing Development Corporation, 'Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above, In planning and performing our audit of compliance, we considered Miami Beach Senior Citizens Housing Development Corporation, Inc.'s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Miami Beach Senior Citizens Housing Development Corporation, Inc.'s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis, A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency In internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies In internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance, Accordingly, this report is not suitable for any other purpose. 41104,e.. )415,6-c:utia, Bellows Associates, P.A. Plantation, Florida September 19, 2016 -34- 1140 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-511005 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2016 SUMMARY OF AUDITOR'S RESULTS 1, The auditor's report expresses an unmodified opinion on whether the financial statements of the Project were prepared In accordance with GAAP. 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of the Project were disclosed during the audit. 4. No material weaknesses were identified during the audit of the major federal award programs. 5. The auditor's report on compliance for the major federal award programs for the Project expresses an unmodified opinion. 6. Audit findings that are required to be reported in accordance with 2 CFR section 200.516(a) are reported in this Schedule, 7. The Project's program tested as major was: Name of Federal Program or Cluster U.S. Department of Housing & Urban Development Section 202 Supportive Housing for the Elderly Direct Loan 8. The threshold for distinguishing Types A and B programs was $750,000. 9. The Project was not determined to be a low-risk auditee. FINDINGS — FINANCIAL STATEMENT AUDIT No matters are reportable. .35. 1141 CFDA Number 14.157 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 FINDINGS — MAJOR FEDERAL AWARD "ROGRAM AUDIT FINDING No. 2016-001: Finding Resolution Status: Information on Universe Population Size: Sample Size Information: Identification of Repeat Finding and Finding Reference Number: Criteria: Statement of Condition: Cause: Effect or Potential Effect: Auditor Non -Compliance Code: Section 202 Direct Loan, CFDA 14.157 Resolved, Nineteen tenants. Nineteen tenants that moved out during the year were reviewed to determine if security deposits plus accrued interest was refunded in accordance with the Florida state requirement of 15 days. Yes, 2015-004, As required by HUD regulations, the owner must either: (1) refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease within 15 days; or (2) provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws within 30 days. The Project did not refund security deposits plus accrued interest to four tenants within the state required 15 days from tenant move out. The Project did not follow the state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits to four tenants, The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded with 15 days of a tenant move out if no assessments are made against that tenant. M — Security Deposits 1142 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 FINDINGS — MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) FINDING No. 2016-001: Section 202 Direct Loan, CFDA 14.157 Reporting Views of Responsible Officials: Recommendation; Response Indicator: Completion Date: Response: The Project agrees with the finding and the auditor's recommendations will be adopted. The Project should comply with state law and HUD regulations for refunding security deposits and ensure all refunds are made lo the move -out tenants within the required period. Agree. 06/20/2016 All tenant security refunds have since been issued. The property manager was unaware of the 15 -day policy. Management has set up training for managers and staff to ensure that all moved out tenants are refunded their security deposit plus accrued Interest and/or provided with an itemized list of any unpaid rent, damages, and an estimated cost for repair within the period required by the state law and HUD. -37- 1143 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2016 Oversight Agency for Audit, Miami Beach Senior Citizens Housing Development Corporation, Inc., respectfully submits the following corrective action plan for the year ended June 30, 2016. Name and address of independent public accounting firm: Bellows Associates, P.A., 7890 Peters Rd, Suite G-102, Plantation, Florida 33324 Audit period Julv 1, 2015 through June 30, 2016 The finding from the June 30, 2016 schedule of findings and questioned costs is discussed below, FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT FINDING NO. 2016-001: Section 202 Direct Loan, CFDA 14,157 Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits and ensure all refunds are made to the move -out tenants within the required period. Action Taken: All tenant security refunds have since been issued. The property manager was unaware of the 15.day policy. Management has set up training for managers and staff to ensure that ail moved out tenants are refunded their security deposit plus accrued interest andtor provided vvilh an itemized list of any unpaid rent, damages, and an estimated cost for repair within the period required by the state law and HUD. If the audit Oversight Agency has questions regarding these plans, please call Hubert Reuter at 054-835- 9200, Sincerely yours, H R er Vice President of rinence & Accounting -38- 1144 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC, OPERATING AS COUNCIL TOWERS PROJECT NO. 066•EN005 CERTIFICATION OF OFFICERS FOR THE YEAR ENDED JUNE 30, 2016 We hereby certify that we have examined the accompanying financial statements and supplemental data of Miami Beach Senior Citizens Housing Development Corporation, Inc,, operating as Council Towers, and, to the best of our knowledge and belief, the same is complete and accurate, we(' Title 95V13,11-96900 Telephone Number Signature Se.Cre, r Title 90k 9a a C) Telephone Number 59-1894621 'Federal Employer Identification Number -39- 1145 MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EHOO5 CERTIFICATION OF MANAGEMENT AGENT FOR THE YEAR ENDED JUNE 30, 2016 We hereby certify that we have examined the accompanying financial statements and supplemental data of Miami Beach Senior Citizens Housing Development Corporation, Inc., operating as Council Towers, and, to the best of our knowledge and belief, the same is complete and accurate. Management '• Signature - Ag is Representative 65-0665009 Federal Employer Identification Number -40- 1146 bel tonus associates p,a, c:�flY l��Ifi Cl I,1J(II.1C A c; Cis LI NTANtS $ A C V I I: f? 11 5 INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURE To the Board of Directors of Miami Beach Senior Citizens Housing Development Corporation, Inc, Miami Beach, Florida 33139 We have performed the procedure described in the second paragraph of this report, which was agreed to by Miami Beach Senior Citizens Housing Development Corporation, inc., operating as Council Towers, and the U.S. Department of Housing and Urban Development, Public Indian Housing -Real Estate Assessment Center (PIH-REAC), solely to assist them in determining whether the electronic submission or certain information agrees with the related hard copy documents Included within the OMB Uniform Guidance reporting package, Miami Beach Senior Citizens Housing Development Corporation, Inc. is responsible for the accuracy and completeness of the electronic submission, This agreed-upon procedure engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained In Government Auditing Standards issued by the Comptroller General of the United States. The suffioienoy of the procedure Is solely the responsibility of those parties specified in this report, Consequently, we make no representation regarding the sufficiency of the procedure described below either for the purpose for which this report has been requested or for any other purpose, We compared the electronic submission of the Items listed in the "UFRS Mule Information" column with the corresponding printed documents listed in the "Hard Copy Documents" column, The results of the performance of our agreed-upon procedure indicate agreement or non -agreement of the eleotronically submitted information and hard copy documents as shown in the attached chart, We were engaged to perform an audit in accordance with the audit requirements of Title 2 U,S, Code of the. Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), by Miami Beach Senior Citizens Housing Development Corporation, Ino. as of and for the year ended June 30, 2016, and have issued our reports thereon dated September 10, 2018, The Inforrnation in the "Hard Copy Documents" column was included within the scope, or was a by-product of that audit, Further, our opinion on the fair presentation of the supplementary information dated September 19, 2016, was expressed in relation to the basic financial statements of Miami Beach Senior Citizens Housing Development Corporation, Inc, taken as a whole, A copy of the reporting package required by the Uniform Guidance, which includes the auditor's reports, is available In its entirety from Miami Beach Senior Citizens Housing Development Corporation, Inc, We have not performed any additional auditing procedures since the date of the aforementioned audit reports, Further, we take no responsibility for the security of the information transmitted electronicaily to the U,S, Department of Housing and Urban Development, PiH»REAL, This report is intended solely for the Information and use of Miami Beach Senior Citizens Housing Development Corporation, Inc, and the U,S, Department of Housing and Urban Development, PIH -REAL, and is not Intended to be and should not be used by anyone other than these specified parties, A5,66-t.c.a,-� Seltows Associates, P,A, Plantation, Florida Septdrnber 19, 2016 -41- 1147 954;838,7000 Broward 304,553,1310 Miami -Dade 954,838,7888 Fax 7890 Peters Road, ulte G•102 Piantatin, FI 33324 www,bellovscpa,com u • MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. OPERATING AS COUNCIL TOWERS PROJECT NO. 066-EH005 ATTACHMENT TO INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURE FOR THE YEAR ENDED JUNE 30, 2016 UFRS Rule Information Hard Copy Document(s) Findings Balance Sheet, Revenue and Expense and Cash Flow Data (account numbers 1120 to 7900T and the 81200 series Supplementary Information with Financial Statement Data Agrees Surplus Cash (81300 series of accounts) Computation of Surplus Cash, Distributions and Residual Receipts Annual Agrees Footnotes 53100 series of accounts) Notes to the audited Financial Statements Agrees Agrees Type of Opinion on the Financial Statements and Auditor Reports (83400, 83500, and 83600 series of accounts Auditor's Reports on the Financial Statements, Compliance, and Internal Control Type_ of Opinion on Supplemental Data (account S3400-100) Auditor's Report on Supplementary Information Agrees Audit Findings Narrative (83800 series of accountsl, Schedule of Findings and Questioned Costs Agrees General Information (83300, S3700, and 83800 series of accounts) Schedule of Findings and Questioned Costs and OMB Data Collection Form Agrees -42- 1148 EXHIBIT "B" EEAP Application 11x9 MIAM I•DADE: COUNTY Miami -Dade County Emergency and Evacuation Assistance Program Applicant Instructions and Information The Emergency and Evacuation Assistance Program (EEAP) is designed for individuals living at home that need assistance with evacuation and sheltering. Additionally, the program may also be utilized post disaster to provide other assistance such as wellness checks. Residents of assisted living facilities (ALF) or nursing homes do not qualify for this program, because these business entities must have their own emergency plans for their clients. Please note that all Miami -Dade County residents are expected to make their own plans to evacuate their families and pets. It is important that everyone be responsible for their own safety and make a plan that includes where to go, who to contact, what to bring, and how to get there. However, the County realizes that some individuals may need assistance. Individuals meeting one of the following categories are eligible for assistance from the County: • Those who require specialized transportation and/or have no transportation. • Those whose medical needs prevent them from evacuating on their own. P/ease note that upon processing your application, a representative from the Miami -Dade County Office of Emergency Management (OEM) will contact you if further clarification is necessary. What You Should Know To Be Evacuation Ready: • The EEAP registry is used for any emergency requiring evacuation. • Do not wait until an evacuation order is given to request being added to the Registry. • Resources are limited and pre -registered clients will have priority when an emergency arises. • Evacuation centers do not offer the same level of care equipment available as health care facilities. • Only basic medical care and assistance are available. • Special needs enhanced beds and cots are provided on a limited basis. • Individuals requiring a higher level of medical care will be placed in participating local hospitals. • Due to a limited number of staff, we recommend that a caregiver accompany you and remain with you during your stay at the evacuation center to ensure your needs are met in a timely manners. • If you have a special diet, bring those dietary items with you so as you to ensure the highest level of comfort. • Remember to bring a disaster kit that includes: bedding, medications, and personal supplies (food, water, and medical equipment), • Ensure that you eat a meal prior to leaving your home. • All Miami -Dade County evacuation centers accept individuals with service animals. — If you have a service animal, please include their food and supplies in your disaster kit. All sections of this application must be completed. If you require a higher level of medical care, your primary care physician (PCP) should complete and sign this application prior to submitting it to our office. If more than one person in your household requires medical assistance during evacuations, each person must complete a separate application. Special instructions will be mailed to you once your application has been processed. You will be contacted on an semi-annual basis to re -certify your need for this program. You do not need to complete an application every year. Should you have any questions, please call the EEAP Support Line at (305) 513-7700. Please keep a copy of the complete application for your records and mail the original to: Miami -Dade County Office of Emergency Management Emergency and Evacuation Assistance Program 9300 NW 41 Street, Doral, FL 33178 This application is available in English, Spanish, and Haitian Creole. To request this material in alternate format such as Braille, Large Print or electronically, please call (305) 468-5900. If you need disaster preparedness tips, contact the Miami -Dade County 3-1-1 Answer Center by dialing 3-1-1 or calling (305) 468-5900 (TTY/TDD users call (305) 468-5402). For more information or to complete on line visit: www.miamidade.gov/fire/eeap.asp. 1150 Application for the Emergency and Evacuation Assistance Prograim' PLEASE PRINT CLEARLY Please read the instructions on page one and complete this application in full or it will be returned to you. Which type of assistance are you interested in? ❑ Evacuation Assistance (doctor's signature may be necessary based on medical needs.) ❑ Wellness Check (to have someone contact you post -disaster) Date of Application / / Are you a veteran of the US Armed Forces? ❑ Yes ❑ No Last Name First Name Middle Initial Sex ❑ M ❑ F Date of Birth / / Primary Language Type of Residence ❑ House/Duplex ❑ Apt/Condo (What floor? ) ❑ Mobile Home/Trailer Address Apt # Building # Name of Complex or Sub -division City Zip Code Mailing Address (if different from above) Home Telephone ( ) (TTY/TDD line ❑ Yes) Alternate Phone ( Living Situation ❑ Alone ❑ Relative ❑ Caregiver ❑ Other Emergency Contacts: Local Relationship Phone( Non -Local Relationship Phone ( ) ***People who are only requesting a Wellness Check are encouraged but not required to continue completing the rest of the application.*** Will you have a companion/caretaker accompanying you to the evacuation center? ❑ Yes ❑ No Companion's name Phone( Transportation requirements Do you require that transportation to an evacuation center be provided for you? ❑ Yes ❑ No If yes, please state why. How many people need to be evacuated? ❑ I do not have a car. ❑ I do not have anyone that can drive me. ❑ I am unable to walk to a bus pickup point. ❑ My medical needs prevent me from evacuating on my own. What type of assistance do you require on a daily basis? (Check all that apply) LI Personal care (dressing/toileting) ❑ Feeding ❑ Administering medication ❑ Airway suctioning ❑ Wound care If yes, what type of wound: use: ❑ Wheelchair (/ can transfer myself ❑ Yes ❑ Mobility (walking/transferring) ❑ Visual guidance ( ❑ blind ❑ visual impairment) ❑ Communicating ( ❑ deaf ❑ nonverbal) ❑ Skilled medical care (❑ intermittent ❑ continuous) ❑ Mental health care (❑ intermittent ❑ continuous) ❑ Other (please explain): ❑ No) LI Walker ❑ Cane ❑ Crutches ❑ Other Durable Medical Equipment (specify) ❑ Service animal Do you require oxygen? ❑ Intermittent LI Continuous ❑ No Oxygen Provider Phone ( ) Do you use medical equipment requiring electricity? ❑ Yes LI No (❑ intermittent ❑ continuous) Specify equipment requiring electricity Are you receiving hospice or home health care? E Yes ❑ No If yes, how many hours a day? Agency am bed bound: ❑ Yes ❑ No Phone ( wei9li Ner 300 pounds: ❑ Yes 0 No M have the following Conditions (Check all that apply) ❑ Alzheimer's Disease ❑ early ❑ moderate ❑ advanced ❑ Dementia ❑ Cerebral Palsy ❑ Psychosis ❑ controlled ❑ uncontrolled Parkinson's Disease ❑ early ❑ moderate ❑ advanced ❑ Neuro -muscular disorders ❑ early ❑ moderate ❑ advanced ❑ Chronic Obstructive Pulmonary Disease (COPD) (Chronic Bronchitis / Emphysema) ❑ intermittent oxygen ❑ continuous oxygen ❑ Cardiac ❑ stable ❑ unstable ❑ Dialysis ❑ Knee replacement ❑ ambulatory ❑ non-ambulatory Other ❑ Hip replacement ❑ ambulatory ❑ non-ambulatory ▪ Cerebrovascular Accident (CVA) ❑ Cystic Fibrosis ❑ Diabetes ❑ Insulin dependent ❑ Non-insulin dependent D Seizures ❑ controlled ❑ uncontrolled ❑ None For evacuees requiring enhanced medical care, this section should be completed by the patient's primary care physician (PCP) or home health care nurse. PLEASE PRINT CLEARLY Physician/Nurse's Name Phone( ) Primary Diagnosis Secondary Diagnosis To the best of my knowledge, the information provided on this form is correct and complete. Signature Date License Number Applicant Signature & Health Insurance Portability and Accountability Act (HIPAA) I certify that this information is correct. I understand that based on this application and the data I have provided, Miami -Dade County will determine which emergency and evacuation assistance, if any, this program may be able to provide. I understand that there is no cost associated with using any of the County's disaster evacuation centers or disaster transportation services. However, should my medical condition deteriorate and I should need emergency medical treatment while being evacuated or at an evacuation center, then I will be responsible for the applicable charges incurred once I am "admitted as a patient" of a hospital. I grant permission to medical providers, transportation agencies and other individuals providing me with medical care and disclose any information required to respond to my needs. HIPAA Privacy Rule: As defined in the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule of 1996, by signing this Authorization, I hereby allow the use or disclosure of my medical information by Miami -Dade County, in order to provide me assistance during emergency evacuations. I understand that information used or disclosed pursuant to this Authorization, may be subject to disclosure by the recipient for the purposes of evacuation, sheltering, transportation and any medical care pursuant to these services. I understand that I have the right to revoke this Authorization at any time except to the extent that Miami -Dade County has already acted in reliance on the Authorization. To revoke this Authorization, I understand that l must do so by written request to Miami -Dade County Office of Emergency Management, 9300 NW 41 St, Miami, FL 33178. Attention: EEAP. I understand that if I choose to revoke this Authorization, I will not receive evacuation assistance. Signature of Applica ;t: Date: Name of person completing this application (if not the patient's primary physician or home health care nurse): Name 115 Phone( ) M IAM I•DADE COUNTY Emergency Management Emergency and Evacuation Assistance Program 9300 NW 41st Street Miami Florida 33178-2312 125_01-220 7/15 1153 Exhibit "C" Emergency Evacuation Pickup Sites 2017 HURRICANE SEASON - EMERGENCY EVACUATION PICK-UP SITES 2017 HURRICANE SEASON - EMERGENCY EVACUATION PICK-UP SITES Miami -Dade County encourages individuals living in storm surge planning zones and mobile homes to have arrangements in place to stay outside of the areas called for evacuations during a tropical storm or hurricane. These arrangements should be in place prior to the start of hurricane season (Junelst). For those unable to make such arrangements, the American Red Cross opens Evacuation Centers as shelters of last resort. Individuals that are unable to provide their own transportation to an Evacuation Center can use public evacuation transportation. Miami -Dade Transit will activate specific Emergency Evacuation Bus Pick -Up Sites by zone (pages 2-4) as directed by the Miami -Dade County Office of Emergency Management. In addition to the zones, mobile home parks are vulnerable to high winds and have designated Evacuation Bus Pick -Up Sites (pages 5-6). If a designated Emergency Evacuation Bus Pick -Up site is not located near you, regular Miami -Dade Transit bus service will continue and residents can utilize regular routes to get to an evacuation bus pick-up site. Evacuees should advise the bus operator of their intention to go to an emergency evacuation pick-up site. Residents can use the trip planner at: http://www.iamidade.+rov/transit/netrobus,as Emergency Evacuation Bus Pick -Up Sites are identified by a sign that reads "EMERGENCY EVACUATION BUS PICK-UP SITE." The buses placed into service for the evacuation will have displays that read "EMERGENCY EVACUATION" and these buses will only travel between Emergency Evacuation Bus Pick -Up Sites and Evacuation Centers. Please note that the evacuation areas will be determined individually for each storm. To learn which Emergency Evacuation Bus Pick -Up Sites are active during a particular storm you should listen to the local media, monitor the County's website at htt+://miamidade..ov/, or contact Miami -Dade 311 Contact Center. EM ENCY EVACUATION US PICK -Ur SITE PARADA DE PARA A CEDE EMERGC I EtBIP . AIWA i Rev. 4/26/2017 1155 Page 1of6 M IAM WADE 2017 HURRICANE SEASON — EMERGENCY EVACUATION PICK-UP SITES ZONE A PICK-UP SITES (sorted by City) EAST RIDGE RETIREMENT VILLAGE SW 193 TERR & SW 87 AVE CUTLER BAY 33157 THE COVE CONDIMINIUM COMMUNITY 21163 SW 85 AVE CUTLER BAY 33189 VILLAGE OF KEY BISCAYNE FIRE STATION CRANDON BD & E ENID DR KEY BISCAYNE 33149 DORSET HOUSE 2500 NE 135 ST NORTH MIAMI 33181 STRATFORD CONDOMINIUMS NE 163 ST&NE28AVE NORTH MIAMI BEACH 33160 EASTERN SHORE SHOPPING CENTER NE 163 ST & NE 35 AVE NORTH MIAMI BEACH 33160 TARGET SHOPPING CENTER NE 140 ST & BISCAYNE BLVD NORTH MIAMI BEACH 33181 WESTMINSTER CHRISTIAN SCHOOL 6855 SW 152 ST ZONE B PICK-UP SITES PALMETTO BAY 33157 ZONE B EVACUATION BUS PICK-UP SIT CORPORATE CENTER OF AVENTURA ADDRESS NE 209 ST & BISCAYNE BLVD CITY AVENTURA ZIP 33180 BAL HARBOUR VILLAGE HALL 655 96 ST BAL HARBOR VILLAGE 33154 HARBOR HOUSE CONDOS 10285 COLLINS AVE BAL HARBOR VILLAGE 33154 BAY HARBOR TOWN HALL 9665 BAY HARBOR TERR BAY HARBOR ISLANDS 33154 CUTLER RIDGE PARK 10100 SW 200 ST CUTLER BAY 33157 FRANJO PARK 20175 FRANJO RD CUTLER BAY 33189 SOUTHLAND MALL (SOUTHSIDE) 10850 SW 211 ST CUTLER BAY 33189 FLORIDA CITY - CITY HALL 404 W PALM DR FLORIDA CITY 33034 SOUTH DADE CAMP 13600 SW 312 ST HOMESTEAD 33033 STANLEY AXLROD UTD TOWERS 1809 BRICKELL AVE MIAMI 33129 REBECCA TOWERS SOUTH 150 ALTON RD MIAMI BEACH 33139 COUNCIL TOWERS SOUTH 533 COLLINS AVE MIAMI BEACH 33139 SOUTH BAY CLUB 800 WEST AVE MIAMI BEACH 33139 SOUTH SHORE COMMUNITY CENTER 833 6 ST MIAMI BEACH 33139 STREET LOCATION 920 ALTON RD MIAMI BEACH 33139 OCEAN FRONT AUDITORIUM 1001 OCEAN DR MIAMI BEACH 33139 CVS PHARMACY (EAST SIDE) 14 ST & ALTON RD MIAMI BEACH 33139 IDA FISHER COMMUNITY SCHOOL 1424 DREXEL AVE MIAMI BEACH 33139 EUCLID GARDENS CONDOMINIUM 1575 EUCLID AVE MIAMI BEACH 33139 MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DR MIAMI BEACH 33139 Rev, 4/26/2017 1156 Page 2 of 6 2017 HURRICANE SEASON - EMERGENCY EVACUATION PICK-UP SITES ZONE B PICKUP SITES Continued ZONE BEVACUATIONBUS PICK-UP SITE ADDRESS CITY ZIP ALTON POINTE 1965 ALTON RD MIAMI BEACH 33139 MIAMI BEACH GOLF CLUB 2301 ALTON RD MIAMI BEACH 33140 SCOTT RAI<OW YOUTH CENTER 2700 SHERIDAN AVE MIAMI BEACH 33140 EDITION HOTEL (EAST SIDE) 29 ST & COLLINS AVE MIAMI BEACH 33140 CROWN HOTEL 4041 COLLINS AVE MIAMI BEACH 33140 TEMPLE BETH SHALOM 4144 CHASE AVE MIAMI BEACH 33140 SHERRY FRONTENAC HOTEL 6565 COLLINS AVE MIAMI BEACH 33141 STREET INTERSECTION NORMANDY DR & RUE VERSAILLES MIAMI BEACH 33141 NORMANDY POOL 71 ST & TROUVILLE ESPLANADE (Normandy Dr.) MIAMI BEACH 33141 NORTH SHORE PARI< 72 ST & BYRON AVE MIAMI BEACH 33141 NORTH SHORE LIBRARY 75 ST & COLLINS AVE MIAMI BEACH 33141 BISCAYNE ELEMENTARY 800 77 ST MIAMI BEACH 33141 STREET INTERSECTION 79 ST & HAWTHORNE AVE MIAMI BEACH 33141 STREET INTERSECTION 81 ST & COLLINS AVE MIAMI BEACH 33141 ST. JOSEPH'S SCHOOL 8625 BYRON AVE MIAMI BEACH 33141 I<LA SCHOOL 7800 HISPANIOLA AVE NORTH BAY VILLAGE 33141 ARLEN HOUSE CONDOMINIUMS BAYVIEW DR. & COLLINS AVE SUNNY ISLES BEACH 33160 WINSTON TOWERS BLDG 300 230 174 ST SUNNY ISLES BEACH 33160 WINSTON TOWERS BLDG 100 250 174 ST SUNNY ISLES BEACH 33160 STREET INTERSECTION 189 ST & COLLINS AVE SUNNY ISLES BEACH 33160 OCEAN VIEW 193 ST & COLLINS AVE SUNNY ISLES BEACH 33160 SURFSIDE TOWN CITY HALL 9293 HARDING AVE SURFSIDE 33154 HUD - PINE ISLAND SW 272 ST & SW 127 AVE UNINCORPORATED 33032 Rev, 4/26/2017 1157 Page 3 of 6 M IAM IDADE 2017 HURRICANE SEASON - EMERGENCY EVACUATION PICK-UP SITES ZONE C PICK-UP SITES ZONE C - EVACUATION BUS PICK-UP SITE ADDRESS CITY ZIP OFFICE DEPOT SHOPPING CENTER NE 179 ST & BISCAYNE BLVD AVENTURA 33160 LAURA SAUNDERS ELEMENTARY 505 SW 8 ST HOMESTEAD 33030 HARRIS FIELD 1034 NE 8 ST HOMESTEAD 33030 STREET INTERSECTION 9050 BISCAYNE BLVD MIAMI SHORES 33138 BAY VIEW TOWERS 2100 SANS SOUCI BLVD NORTH MIAMI 33181 CHRIST FELLOWSHIP CHURCH 8900 SW 168 ST PALMETTO BAY 33157 MAYS MIDDLE SCHOOL 11700 SW 216 ST UNINCORPORATED 33170 LARRY/PENNY THOMPSON 12451 SW 184 ST UNINCORPORATED 33177 DADELAND NORTH METRORAIL STATION 8300 SOUTH DIXIE HIGHWAY UNINCORPORATED 33143 ZONE D PICK-UP SITES CUA POLICE ATHLETIC LEAGUE GYM A 600 SW 14 AVE DRES HOMESTEAD .1P 33030 WILLIAM B. DICKINSON COMMUNITY CENTER 1601 N. KROME AVE HOMESTEAD 33030 WEST PERRINE COMMUNITY ACTION AGENCY 17801 HOMESTEAD AVE UNINCORPORATED 33157 8-1/2 SQUARE MILE SW 168 ST & SW 197 AVE UNINCORPORATED 33187 WEST KENDALL TRANSIT TERMINAL 9155 SW 162 AVE UNINCORPORATED 33196 MIAMI DADE COLLEGE - KENDALL CAMPUS 11011 SW 104 ST UNINCORPORATED 33176 CORAL REEF PARK AND RIDE LOT SW 152 ST & 117 AVE UNINCORPORATED 33177 STREET LOCATION 950 SW 68 AVE UNINCORPORATED 33144 STREET LOCATION NE 120 ST & NE 16 AVE UNINCORPORATED 33161 STREET LOCATION 19800 W DIXIE HWY UNINCORPORATED 33180 ZONE E PICK-UP SITES 8-1/2 SQUARE MILE SW 136 ST & SW 202 AVE UNINCORPORATED 33196 Rev. 4/26/2017 1158 Page 4 of 6 2017 HURRICANE SEASON - EMERGENCY EVACUATION PICK-UP SITES HURRICANE EVACUATION - MOBILE HOME PARKS MOBILE HOME - EVACUATION BUS PICK-UP SITE (SORTED BY ZIPCODE) ADDRESS CITY ZIP PALM LAKE & WYNI<EN BLYNI<EN & NOD W 28 ST & W 14 AVE HIALEAH 33010 PALMETTO TRAILER ESTATES 3205 W 16 AVE HIALEAH 33012 HIBISCUS & SUNNY GARDENS TRAILER PARKS 3000 W 16 AVE HIALEAH 33012 HOLIDAY ACRES MOBILE HOME PARI< 1401 W 29 ST HIALEAH 33012 STRAWBERRY VILLAGE TRAILER PARK 1451 W 29 ST HIALEAH 33012 HIALEAH TRAILER PARI< 425 E 33 ST HIALEAH 33013 COURTLY MANOR 12401 W OI<EECHOBEE RD HIALEAH GARDENS 33018 JONES FISHING CAMP TRAILER PARK 14601 NW 185 ST UNINCORPORATED 33018 AQUARIUS MOBILE HOME PARK 451 E LUCYST HOMESTEAD 33030 BOARDWALK MOBILE HOME PARK 100 NE 6 AVE HOMESTEAD 33030 COCOWALI< ESTATES 220 NE 12 AVE HOMESTEAD 33030 HOMESTEAD TRAILER PARK E MOWRY DR & SE 2 RD HOMESTEAD 33030 PRINCETONIAN MOBILE HOME PARI< 12900 SW 253 TERR UNINCORPORATED 33032 LEISURE EAST (PALM GARDENS RV PARK) 28300 SW 147 AVE UNINCORPORATED 33033 PALM GARDENS MOBILE HOME PARI< 28501 SW 152 AVE UNINCORPORATED 33033 PINE ISLE MOBILE HOME PARI< 28600 SW 132 AVE UNINCORPORATED 33033 ANDREW CENTER 19308 SW 380 ST UNINCORPORATED 33034 FLORIDA CITY CAMP SITE & RV PARI< 601 NW 3 AVE FLORIDA CITY 33034 GATEWAY ESTATES MOBILE HOME PARI< 35250 SW 177 CT UNINCORPORATED 33034 GOLDCOASTER TRAILER PARK SW 348 ST & SW 187 AVE UNINCORPORATED 33034 SOUTHERN COMFORT TRAILER PARI< 345 E PALM DR FLORIDA CITY 33034 HONEY HILL 4955 NW 199 ST UNINCORPORATED 33055 ROYAL COUNTRY 5555 NW 202 TERR OPALOCI<A 33055 RIVIERA PARK NW 199 ST & NW 37 AVE MIAMI GARDENS 33056 FLAGAMI PARADISE TRAILER PARK 2750 NW SOUTH RIVER DR MIAMI 33125 GABLES TRAILER PARK SW 8 ST & SW 44 AVE UNINCORPORATED 33134 SILVER COURT TRAILER PARK SW 8 ST & SW 32 AVE MIAMI 33135 LITTLE FARM MOBILE COURT NE 85 ST & BISCAYNE BLVD MIAMI 33138 ALL STAR 36 STREET NW 35 ST & NW 30 AVE UNINCORPORATED 33142 CARELY'S & BLUE BELL TRAILER PARK NW 41 ST & NW 37 AVE UNINCORPORATED 33142 FRONTON TRAILER PARK 3617 NW 36 ST UNINCORPORATED 33142 RIVER PARI< TRAILER 2260 NW 27 AVE UNINCORPORATED 33142 ROYAL DUKE 3620 NW 30 AVE UNINCORPORATED 33142 LION MIAMI TERRACE TRAILER PARK 1040 SW 70 AVE UNINCORPORATED 33144 Rev. 4/26/2017 1159 Page 5of6 2017 HURRICANE SEASON — EMERGENCY EVACUATION PICK-UP SITES HURRICANE EVACUATION — MOBILE HOME PARKS (Part 2 MOBILE HOME - EVACUATION BUS PICK-UP SITE (SORTED BY ZIPCODE) ADDRESS CITY ZIP SUNNYSIDE TRAILER PARI< 6024 SW 8 ST WEST MIAMI 33144 WESTHAVEN TRAILER PARI< 6020 SW 8 ST WEST MIAMI 33144 J BAR J MOBILE HOME PARK 2980 NW 79 ST UNINCORPORATED 33147 MIAMI HEIGHTS TRAILER PARI< 3520 NW 79 ST UNINCORPORATED 33147 PALM LAKE MOBILE HOME PARI< 7600 NW 27 AVE UNINCORPORATED 33147 TROPICAL VILLAGE 1398 NW 79 ST UNINCORPORATED 33147 COLONIAL ACRES MOBILE HOME PARI< 9674 NW 10 AVE UNINCORPORATED 33150 LITTLE RIVER MOBILE HOME PARK 215 NW 79 ST UNINCORPORATED 33150 NEW AVOCADO TRAILER PARK 1170 NW 79 ST UNINCORPORATED 33150 ROVELLTRAILER PARK 939 NW 81 ST UNINCORPORATED 33150 SUNNYLAND TRAILER PARK NW 79 ST & NW MIAMI CT UNINCORPORATED 33150 TRINIDAD COURT 7930 NW MIAMI CT UNINCORPORATED 33150 WESTLAND MOBILE HOME PI< 1175 NW 79 ST UNINCORPORATED 33150 SIXTH AVE TRAILER PARK 14752 NE 6 AVE UNINCORPORATED 33161 SHADY OAK 14701 NE 6TH AVE UNINCORPORATED 33161 MEDLEY MOBILE HOME PARK 8181 NW SOUTH RIVER DR MEDLEY 33166 REDLAND MOBILE HOME PARK 17360 SW 232 ST UNINCORPORATED 33170 SILVER PALM MOBILE HOME PARK 17350 SW 232 ST UNINCORPORATED 33170 LIL' ABNER MOBILE HOME PARI< 11239 NW 4 TERR UNINCORPORATED 33172 LARRY/PENNY THOMPSON 12451 SW 184 ST UNINCORPORATED 33177 MEDLEY LAKESIDE RETIREMENT PARK 10601 NW 105 WAY MEDLEY 33178 DIXIE MOBILE COURT 19640 W DIXIE HWY UNINCORPORATED 33180 HIGHLAND VILLAGE MOBILE HOME PARI< 13565 NE 21 AVE NORTH MIAMI BEACH 33181 BISCAYNE BREEZE PARK 11380 BISCAYNE BLVD UNINCORPORATED 33181 UNIVERSITY LAKES TRAILER PARI< 12850 SW 14 ST UNINCORPORATED 33184 AMERICANA VILLAGE CONDO 19800 SW 180 AVE UNINCORPORATED 33187 MIAMI -EVERGLADES KAMPGROUND 20675 SW 162 AVE UNINCORPORATED 33187 GATOR PARK MOBILE HOME PARK 24050 SW 8 ST UNINCORPORATED 33194 Rev. 4/26/2017 1160 Page 6 of 6 Exhibit "D" Facility Condition Index The following table provides an example of a condition grading scheme for facilities using the FacilityCondition Index (FCI). ID Grade Excellent Good Fair Poor !Maintenance backlog is 1-2% of CRN Maintenance backlog is 3-5% of CRN 'Maintenance backlog is 6-10% of CRN Maintenance backlog is 11-49% of CRN ;Maintenance backlog is 50%+ pf CRN The following table provide another version of a table for facilities. Grade 1 jVery Good 2 Good Description FCI 1-2% Showpiece facility Orderly spotlessness All Components operate and well maintained. Sound of function and appearance. Clean. True to Line. No evidence of deterioration or discoloration. Customer: no concerns FCI 3-5% All Components operate. Operational and functional, minor wear and tear. Increased maintenance inspection required. and well maintained. Sound of function. Showing minor wear and tear and minor deterioration of surfaces. Customer: deterioration causes minimal influence on occupational uses FCI 6-10% Appearance affected by minor cracking, staining or minor leakage. Minor damage to coatings. Some dampness/ mildew. Minor damage to wall/ ceiling finishes. Minor breakdowns. Regular programmed maintenance inspections essential. Customer: minor restrictions on operational use during minor repairs Customer FCI 11-49% Fabric damaged. Weakened or displaced. Appearance affected by cracking, staining or breakdowns. Finishes of poor quality and appearance often damaged. Customer: regular complaints FCI 50%+ Fabric/ Finishes badly damaged. Weakened or displaced. Appearance affected by cracking, staining or breakdowns. Finishes badly damaged, marked. Plumbing, Electrical, Mechanical components inoperable or unsafe or safety issues that cannot be mitigated. Customer: not suitable for use by customer 1162 E as Z 0 cti L 0 0 N L 0 4 J O 0 Ct L a) 0 0 C) N 0) E O C 0) O .Q U 0 co 0) O 0 0 0) C U c 4- -o a) O) (0 0 (0 (0 E a (0 O_ O C O O 0 a) a a c (0 O U 0 0) U C (0 N U 0 U a C O 0) (0 E (0 0 0 4- O 0) 0 0 0. a C U C N 0 w 0_ 0 0 0 .5 E O U (0 a a) E Ico E E 0 U u L I- O) 0 0 co a C J a) O 0_ N O) (0 C 0) 5- O 0 N 4- 0 C O a C O 0 t— U5' m 0 s a) '5 O 4- 0) C '7 N E O) C 4) Q U (a%) L 4--� 0 L. E LO E O O o = (0 N 0 0O N Na) 4-- (0 E 0 a)"0 ) a 0) L L•Q7 O N o u c/) a O a a) a) U N O 0 ..O N 2 U ro 2 (0 N C C 0 O) C C 0 Y N J 0 a) a) 0. 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'8MMMM Ru�g@'"u9M"u�wmwwMMO"�9ww55` "uN��w 555u` w"�9 u5"�w" mhww 55fi5555l "u�" w"u9 u�9 .5555 m"u�u�,�w"w .(9 .22 m ,mo n a ry NF„ nrv.- 6 EEE mm m.. nm Ga Ga a 'E.. a= 1. .'29,R/ �i�.-.-.-np'N :,,FIN.., m rvNN��-� ry 'mmn ..��m .-ten Nr rvry mmmmm mw ry Nn .. .-' -gy mw .-Nin -g nrary n V.- .- V .-.- FIV T.- mm Wim.-.- m .- .-�. 444 I ry P.M.7mmmm�nry YhNNmmmmJy W NNN Nry N'0mm .-N � T228222E2222 E:22c8:92N1 E2 °� Ea �h a� n �ti a _a Ec4 m. 8 n EmQE sS a4t v a o v 2C�N oY �...�V g 3 o n m (Painting. Exterior Concrete Balcony/Patio Slab Balcony/Elevated Deck Guard Ratings -Metal Common Area Hollow Metal Door -Single (Conditioned Space) 1 yego a o$Vl H e E oa a & 5 3N10 SE a9C >E EEc 99gg ��F �, d...U,.,v 001W Membrane Fally- Ballasted o2 0 Gallon Boil Water ,27.5rTank-Up to 240 Gallon Ch er-.Gas rmah mbtu/br Cbillerrecmrnabnn now oto Z'Z'��c adss u'iW n° E_ E 5 �.i E EmFi �c AIC Unit (Cede l2nimum) (3-. Ten). A/C Una (Cale Minimum) (4Ton) Hytlronic Fan -Coil Chilled 02O Only 2-T66 �-g' a J E -E f��li dd rmiM �o anmF� C{��te _$ S° m R S' 4a E scv g Intercom System- Central System Ceramic -rile (Common Area) VCT -212 tile (Common Area) Durable Sheet Flooring (Common Area) a EEcma E8 EEa 6 '3' c4 fEh E umi E m3 - v r € $n iioE ym 5 gQ6 as ry a Acoustigl toh5o Tile (Apartment) Standard Kitchen Cabinets and Countertops (Unit) Standard Bath Vanity Cabinets Breit) Traditional Refrigerator (unto Electric Ranee (Unit) HDCP Front Controlled Range (Unit) TmdMonal ExtenorVermng Range Hoctl (Unit) g1 83 22 2 YN m m vm m oxa r-U ry 'r9m �M Ci aaa ry ernm .- too ''°m ",� am n.-�fa mm gtS" Mm248' yam r^ mwyw„�rY,G Ge��ry vr��N oo mm m. ✓. mx,'nw FaS m o2��moo NNaG%�S+vmi�G.mn oa Wig. �'"' ���m �n a..�yAA" ''.9,mw -�`'�5 uR .5 A HA w.5'hw.5"".9w'ww".5"".3u9wui.."45""Elw"u5""2 .5"w w"w.5 .3 .5 w AEv n - m a 8302, N4 VI MI m. - mm 8,2 8,2 m W 0.-.- K y .284aNN2nNnp mmn ,ry 838am 8m.Na mmn m mm NN nnN n'maF&emmmmm mmm ma gym 844.-N rvry 44 V" ' .-_ .8' 8.'8 0..433.8 ' 2 m .- .0 2.0 00 m.amammmN 284mmm8848rvNN888884 2Nmmm.-NNmNNN.rvmmN.4,4N..NrvN4 0. �6 u3-Ej; m Aluminum Framed Skiing Glass Doo ,pare' AUL storefrontShding Automatic Entrance ruay 0alusteo (High -Rise) Hot Water Storage Tank -Up to 240 Gallon Boiler- Gas 1.2]5 mbtul0r CW ler reciprocating 0.53 dme2l0 Ton Boiler- Gas 1.530 mb[Whr Cernial Vent & E3haust (0.10Story)_ o E IAIC Unit (Code Minimum) (4-ron) Hydmn¢ Fan -Coil 21402 520 Only. 2 -Ton eta VCT12,02 (Common Area) Durable Sheet Flooring (Common Area) Durable Sheet Flooring (Common Area) �E Double -Fire Door (Common Area) Kitchen Countertops (laminates/Wood) (Common Area) Traditional Washing Machine- Residential Size (Common Area) anry ln-ueomoml (Apemen 500ot) Carpet -Average Quality 2 -bedroom) (Apartment) Acoustical Ceiling Te (Apartment) Stange. Kitchen Cabinets and Countertops (Unit) Exhibit "F" Uniform Physical Condition Standards Inspection Checklist 1169 Uniform Physical Condition Standards - Comprehensive Listing Page: of Inspectable Area: Site Property ID / Name: Inspection Date: Level Inspectable Item Fencing and Gates Observable Deficiency NOD 2 3 NA H&S Damaged/Falling/Leaning NLT Holes NLT Missing Sections NLT Grounds Erosion/Rutting Areas NLT Overgrown/Penetrating Vegetation Ponding/Site Drainage Health & Safety Air Quality - Sewer Odor Detected NLT Air Quality - Propane/Natural Gas/Methane Gas Detected LT Electrical Hazards - Exposed Wires/Open Panels LT Electrical Hazards - Water Leaks on/near Electrical Equipment LT Flammable Materials Improperly Stored NLT Mailboxes/Project Signs Garbarge and Debris - Outdoors Hazards - Other Hazards - Sharp Edges Hazards - Tripping Infestation - Insects Infestation - Rats/Mice/Vermin Mailbox Missing/Damaged NLT NLT NLT NLT NLT NLT Market Appeal Signs Damaged Graffiti Parking Lots/Driveways/Roads Litter Cracks Ponding Potholes/Loose Material Settlement/Heaving Play Areas and Equipment Damaged/Broken Equipment NLT Refuse Disposal Retaining Walls Storm Drainage Walkways/Steps Deteriorated Play Area Surface Broken/Damaged Enclosure -Inadequate Outside Storage Space Damaged/Falling/Leaning Damaged/Obstructed Broken/Missing Hand Railing Cracks/Settlement/Heaving Spalling NLT NLT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000. This document can be found at "http;//www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1170 Uniform Physical Condition Standards - Comprehensive Listing Inspectable Area: Building Exterior Property ID / Name: Building Number: Inspectable item Page: of Inspection Date: Level Doors Fire Escapes Foundations Observable,Deficiency Damaged Frames/Threshold/Lintels/Trim Damaged Hardware/Locks Damaged Surface (Holes/Paint/Rusting/Glass) Damaged/Missing Screen/Storm/Security Door Deteriorated/Missing Caulking/Seals Missing Door Blocked Egress/Ladders Visibly Missing Components .......... ...... .. . Cracks/Gaps Spalling/Exposed Rebar NOD 3 NA H&S NLT NLT LT LT Health and Safety Electrical Hazards - Exposed Wires/Open Panels LT Lighting Electrical Hazards - Water Leaks on/near Electrical Equipment Emergency Fire Exits - Emergency/Fire Exits Blocked/Unusable Emergency Fire Exits - Missing Exit Signs Flammable/Combustible Materials - Improperly Stored Garbage and Debris - Outdoors Hazards - Other Hazards - Sharp Edges Hazards - Tripping Infestation - Insects Infestation - Rats/Mice/Vermin Broken Fixtures/Bulbs LT LT NLT NLT NLT NLT NLT NLT NLT NLT Roofs Walls Windows Damaged Soffits/Fascia Damaged Vents Damaged/Clogged Drains Damaged/Torn Membrane/Missing Ballast Missing/Damaged Components from Downspout/Gutter Missing/Damaged Shingles Ponding Cracks/Gaps Damaged Chimneys Missing/Damaged Caulking/Mortar Missing Pieces/Holes/Spalling Stained/Peeling/Needs Paint Broken/Missing/Cracked Panes Damaged Sills/Frames/Lintels/Trim Damaged/Missing Screens Missing/Deteriorated Caulking/Seals/Glazing Compound Peeling/Needs Paint Security Bars Prevent Egress NLT NLT LT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2,3, dated 03/08/2000. This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1171 Uniform Physical Condition Standards - Comprehensive Listing Inspectable Area: Building Systems Property ID / Name: Building Number: Page: of Inspection Date: Inspectable Item Domestic Water Electrical System Elevators Emergency Power Fire Protection Health & Safety HVAC Roof Exhaust System Observable Deficiency Leaking Central Water Supply Misaligned Chimney/Ventilation System Missing Pressure Relief Valve Rust/Corrosion on Heater Chimney Water Supply Inoperable Blocked Access/Improper Storage Burnt Breakers Evidence of Leaks/Corrosion Frayed Wiring Missing Breakers/Fuses Missing Covers Not Operable Level NOD 1 2 3 NA H&S LT NLT NLT NLT NLT NLT NLT LT LT NLT Auxiliary Lighting Inoperable Run -Up Records/Documentation Not Available Missing Sprinkler Head Missing/Damaged/Expired Extinguishers Air Quality - Mold and/or Mildew Observed Air Quality - Propane/Natural Gas/Methane Gas Detected Air Quality Sewer Odor Detected Electrical Hazards - Exposed Wires/Open Panels Electrical Hazards - Water Leaks on/near Electrical Equipment Elevator - Tripping Emergency Fire Exits - Emergency/Fire Exits Blocked/Unusable Emergency Fire Exits - Missing Exit Signs Flammable Materials - Improperly Stored Garbage and Debris - Indoors Hazards - Other Hazards - Sharp Edges Hazards - Tripping Infestation - Insects Infestation - Rats/Mice/Vermin Boiler/Pump Leaks Fuel Supply Leaks General Rust/Corrosion Misaligned Chimney/Ventilation System oof Exhaust Fan(s) Inoperable Sanitary System Broken/Leaking/Clogged Pipes or Drains Missing Drain/Cleanout/Manhole Covers NLT LT NLT LT LT NLT LT NLT NLT NLT NLT NLT NLT NLT NLT NLT NLT LT NLT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000. This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which - calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1172 Uniform Physical Condition Standards - Comprehensive Listing Inspectable Area: Common Areas Property IDI Name: Building Number: Page: Inspection Date: Level X Inspectable Item Location Observable Deficiency NOD 1 2 3 NA I-I&S Basement/Garage/Carport Baluster/Side Railings - Damaged Closet/Utility/Mechanical Cabinets - Missing/Damaged Community Room Call for Aid - Inoperable NLT Day Care Ceiling - Bulging/Buckling Halls/Corridors/Stairs Ceiling - Holes/Missing Tiles/Panels/Cracks Kitchen Ceiling - Peeling/Needs Paint Laundry Room Ceiling - Water Stains/Water Damage/Mold/Mildew Lobby Countertops - Missing/Damaged Office Dishwasher/Garbage Disposal - Inoperable Other Community Spaces Doors - Damaged Frames/Threshold/Lintels/Trim NLT Patio/Porch/Balcony Doors - Damaged Hardware/Locks Restrooms/Pool Structures Doors - Damaged Surface (Holes/Paint/Rust/Glass) Storage Doors - Damaged/Missing Screen/Storm/Security Door NLT Doors - Deteriorated/Missing Seals (Entry Only) Doors - Missing Door Dryer Vent -Missing/Damaged/Inoperable Electrical - Blocked Access to Electrical Panel NLT Electrical - Burnt Breakers NLT Electrical - Evidence of Leaks/Corrosion NLT Electrical - Frayed Wiring Electrical - Missing Breakers LT Electrical - Missing Covers LT Floors - Bulging/Buckling Floors - Floor Covering Damaged Floors - Missing Floor/Tiles Floors- Peeling/Needs Paint Floors - Rot/Deteriorated Subfloor Floors - Water Stains/Water Damage/Mold/Mildew GFI - Inoperable NLT Graffiti HVAC - Convection/Radiant Heat System Covers Missing/Damaged HVAC - General Rust/Corrosion HVAC - Inoperable HVAC - Misaligned Chimney/Ventilation System LT HVAC - NoisyNibrating/Leaking Lavatory Sink - Damaged/Missing NLT Lighting - Missing/Damaged/Inoperable Fixture Mailbox - Missing/Damaged Outlets/Switches/Cover Plates - Missing/Broken LT Pedestrian/Wheelchair Ramp Plumbing - Clogged Drains NLT Plumbing - Leaking Faucet/Pipes NLT Range Hood /Exhaust Fans - Excessive Grease/Inoperable Range/Stove - Missing/Damaged/Inoperable Refrigerator - Damaged/Inoperable Restroom Cabinet - Damaged/Missing Shower/Tub - Damaged/Missing Sink - Missing/Damaged NLT Smoke Detector- Missing/Inoperable LT Stairs - Broken/Damaged/Missing Steps =- NLT Stairs - Broken/Missing Hand Railing NLT Ventilation/Exhaust System - Inoperable Walls - Bulging/Buckling Walls - Damaged Walls - Damaged/Deteriorated Trim Walls - Peeling/Needs Paint Walls - Water Stains/Water Damage/Mold/Mildew Water Closet/Toilet - Damaged/Clogged/Missing Windows - Cracked/Broken/Missing Panes NLT Windows - Damaged Window Sill 73 Windows - Inoperable/Not Lockable = NLT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000. This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1174 Windows - Missing/Deteriorated Caulking/Seals/Glazing Compound Windows - Peeling/Needs Paint Windows - Security Bars Prevent Egress LT Health & Safety Air Quality - Mold and/or Mildew Observed -- NLT Air Quality - Propane/Natural Gas/Methane Gas Detected LT Air Quality - Sewer Odor Detected NLT Electrical Hazards - Exposed Wires/Open Panels LT Electrical Hazards - Water Leaks on/near Electrical Equipment LT Emergency Fire Exits - Emergency/Fire Exits Blocked/Unusable LT Emergency Fire Exits - Missing Exit Signs NLT Flammable/Combustible Materials - Improperly Stored NLT Garbage and Debris - Indoors NLT Garbage and Debris - Outdoors NLT Hazards - Other NLT Hazards - Sharp Edges NLT Hazards - Tripping NLT Infestation - Insects NLT Infestation - Rats/Mice/Vermin NLT Pools and Related Structures Fencing - Damaged/Not Intact Pool - Not Operational Trash Collection Areas Chutes - Damaged/Missing Components - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000. This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1174 Uniform Physical Condition Standards - Comprehensive Listing Inspectable Area: Unit Property ID / Name: Building/Unit Nmbr: Page: of Inspection Date: Level Inspectable Item Bathroom Observable Deficiency Bathroom Cabinets - Damaged/Missing Lavatory Sink - Damaged/Missing NOD 2 NA H&S Plumbing - Clogged Drains Plumbing - Leaking Faucet/Pipes Shower/Tub - Damaged/Missing NLT NLT NLT NLT Ventilation/Exhaust System - Inoperable Call -for -Aid Ceiling Doors Electrical System Floors Health & Safety Hot Water Heater HVAC System Water Closet/Toilet - Damaged/Clogged/Missing Inoperable Bulging/Buckling Holes/Missing Tiles/Panels/Cracks Peeling/Needs Paint Water Stains/Water Damage/Mold/Mildew Damaged Frames/Threshold/Lintels/Trim Damaged Hardware/Locks Damaged/Missing Screen/Storm/Security Door Damaged Surface - Holes/Paint/Rusting/Glass Deteriorated/Missing Seals (Entry Only) Missing Door Blocked Access to Electrical Panel Burnt Breakers Evidence of Leaks/Corrosion Frayed Wiring GFI - Inoperable Missing Breakers/Fuses Missing Covers Bulging/Buckling Floor Covering Damage Missing Flooring Tiles Peeling/Needs Paint Rot/Deteriorated Subfloor NLT Water Stains/Water Damage/Mold/Mildew Air Quality - Mold and/or Mildew Observed Air Quality - Sewer Odor Detected Air Quality - Propane/Natural Gas/Methane Gas Detected Electrical Hazards - Exposed Wires/Open Panels Electrical Hazards - Water Leaks on/near Electrical Equipment Emergency Fire Exits - Emergency/Fire Exits Blocked/Unusable Emergency Fire Exits - Missing Exit Signs Flammable Materials - Improperly Stored Garbage and Debris - Indoors Garbage and Debris - Outdoors Hazards - Other Hazards - Sharp Edges Hazards - Tripping Infestation - Insects Infestation - Rats/Mice/Vermin Misaligned Chimney/Ventilation System Inoperable Unit/Components Leaking Valves/Tanks/Pipes Pressure Relief Valve Missing Rust/Corrosion Convection/Radiant Heat System Covers Missing/Damaged Inoperable Misaligned Chimney/Ventilation System 9 75 NLT NLT NLT NLT LT LT NLT NLT LT LT LT LT N LT NLT N LT NLT NLT NLT NLT NLT NLT LT NLT NLT NLT LT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000, This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1176 Noisy/Vibrating/Leaking Rust/Corrosion NLT Kitchen Cabinets - Missing/Damaged Countertops - Missing/Damaged NLT Dishwasher/Garbage Disposal - Inoperable Plumbing - Clogged Drains NLT Plumbing - Leaking Faucet/Pipes NLT Range Hood/Exhaust Fans - Excessive Grease/Inoperable Range/Stove - Missing/Damaged/Inoperable Refrigerator-Missing/Damaged/Inoperable NLT Laundry Area (Room) Li htin g Sink - Damaged/Missing NLT Dryer Vent - Missing/Damaged/Inoperable9 �" Missing/Inoperable /Ino g perable Fixture NLT Outlets/Switches Missing LT Missing/Broken Cover Plates Baluster/Side Railings Damaged LT Patio/Porch/Balcony Smoke Detector Missing/Inoperable LT Stairs Broken/Damaged/Missing Steps NLT Broken/Missing Hand Railing NLT Walls Bulging/Buckling Damaged Damaged/Deteriorated Trim Peeling/Needs Paint Windows Water Stains/Water Damage/Mold/Mildew Cracked/Broken/Missing Panes NLT Damaged Window Sill Missing/Deteriorated Caulking/Seals/Glazing Compound Inoperable/Not Lockable NLT Peeling/Needs Paint Security Bars Prevent Egress LT - In order to accurately categorize a deficiency as a "Level 1", "Level 2" or "Level 3" (including independent Health & Safety items), you must refer to the Final Dictionary of Deficiency Definitions (PASS) Version 2.3, dated 03/08/2000, This document can be found at "http://www.hud.gov/offices/reac/pdf/pass_dict2.3.pdf" (325 Pages, 343 KB) - Additional clarification to these definitions is contained in the REAC PASS Compilation Bulletin which can be found at "http://www.hud.gov/offices/reac/pdf/pass_bulletin.pdf" (24 Pages, 275 KB) - Only level 3 is applied to independent Health & Safety deficiencies. - In the H&S column, NLT is a "Non -Life Threatening" Health & Safety concern whereas LT is a "Life Threatening" concern which calls for immediate attention or remedy and will show up on the Exigent Health and Safety Report at the end of an inspection. 1176 Exhibit "G" Annual Resident Survey 1*7 Elderly Housing Development & Operations Corporation 1580 Sawgrass Corporate Parkway, Suite 210, Ft, Lauderdale, FL 33323 Phone 954.835.9200 Fax: 954-835-0888 www.ehdoc,org The PrerrUer Provider of Quality Affordable Housing for Senior Citizens Across the United Stales Thank you for taking the time to respond to this survey. Your answers will not be seen by any property staff, but will be reviewed by Headquarters to make sure your needs are being served the best we can. We appreciate your honest opinion. I. GENERAL QUESTIONS I. I know what my Service Coordinator does in my building. Yes No 2. My Service Coordinator is available when I need him/her. Always Most Times Sometimes Never 3. I would recommend the Service Coordinator to other residents in the building. Yes No 4. My Service Coordinator responds to my requests for help. Yes No Sometimes Most Times Never 5. I feel that I can trust my Service Coordinator with my information. Yes No 6. My Service Coordinator contacts me at least once a year. Yes No 7. I see my Service Coordinator Daily Weekly Monthly Once a Year Never 8. I understand that my Service Coordinator is my advocate and can help me with issues on-site as well as off -sight. Yes No Page 1 1178 II. ASSISTANCE What assistance has your Service Coordinator provided for you this year? Please check the boxes which indicate your usage of the services. Not all Services are available in all areas. Possible Services List of Local Resources Newsletter aa. ._.._ Flu Shot Clinics Health Services brought onto the property • Blood Pressure • Podiatrist (Foot Doctor) General Physician Wouldn't �.� Not Use Available Eye Doctor,��..M_ Outside Doctor Appointments__ Prescription Insurance Assistance Assistance with Medicare/Medicaid Assistance with Bills Discount Program Assistance Emotional Su w amrt_ Of the following services provided by outside companies or organizations, please check the box which indicates if you would want your Service Coordinator to help you apply to a pr nor gain information about the service. �_w�aeµ�w _.. Have Used Wouldn't Use Tax Assistance or information Home Health Services Legal Service • Health Care Power of Attorn ..._.�,..�,�.www. • Living Will/5 Wishes • DNR Order Any End of Life Care Decision, Translation Assistance Transportation pAssistance Page'cii93 III. GENERAL QUESTIONS 1. Would you say that your Service Coordinator saves you money? Yes No 2. Do you feel that your building has enough Social/Educational opportunities/presentations? Yes No If no, please tell us what you would like to see more of at your building? 3. Please check which of the following concern you. Greatly Concerns Me Concerns M a Little High Blood Pressure .............A�_ . �� _..���..�__...._..� Diabetes Heart Problems Memory Loss Fall n Getting mixed up with in Havino family support Havingno friends to support me pp Not being. ableto do my own lawn Not being able to clean m arartment Not being able to cook for mysel Not being able to grocery shy_ s. Not bein able to handle rn mone Not beim to take a bus Not understanding nderstandin m mail Theft,�..._._....�. oa....�'�.....�,..o._..m���. Little to No Concern v„ dications osini independence Being Lonely Being Depressed Affording my pressri_tions Affording mj utilities Affording my rent Affording my groceries Other Comments: *Optional* Name Page131 3 EHDOC would like you to take this opportunity to use this comment card and let us know how much you enjoy living or working at your community and who is doing a great job to meet your needs. OR To help you resolve any problems that have not been answered by following the EHDOC procedure. That procedure is to first meet with your Community Manager. If you feel the issue has not been resolved, your next step is to contact the Senior Community Manager for your property. If your concern is not addressed to your satisfaction then that is the time for you to please complete the section below. Your comments will remain confidential. Dear Steve, El I am a Resident at 0 I am an Employee at 0 Comments 5WI-1 dN'.LS 37`eld 5Sterd ECCC rid cappaapnul -TA OT Z OlIns keivopud @ip..TodioD ssui2mus og9I aopaila anprioaxa synipaaci aaals ..1141 Elderly Housing Development & Operations Corporation 1580 Sawgrass Corporate Parkway Suite 210 Ft. Lauderdale FL 33323 Phone: 954835-9200 Fax: 954,835.0888 EHDOC@ehdoc.org 1182 AMENDMENT NO. 1 TO LEASE AGREEMENT (COUNCIL TOWERS NORTH) This Amendment No. 1 to the Lease Agreement dated July 9, 1976, is entered into this day of , 2018 ("Amendment No. 1") between the CITY OF MIAMI BEACH, a Florida municipal corporation ("City" or "Lessor"), and MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC., a non-profit Florida corporation ("Lessee"). WITNESSETH: WHEREAS, on or about July 8, 1976, the City Commission of the City of Miami Beach adopted Resolution No. No. 1976-15085, approving a Lease Agreement between the City and Senior Citizens Housing Development Corporation of Miami Beach ("Lease"), for certain air rights and easements to City -owned property located at 1040 Collins Avenue, for the construction and operation of a residential building for elderly housing ("Council Towers North" or the "Building"), and with the City retaining the rights to the management and operation of the municipal parking lot on the ground floor below the demised premises; and WHEREAS, the Lease had an initial term of fifty (50) years, expiring on July 8, 2026; and WHEREAS, the Building was completed in 1979, and includes 125 residential dwelling units, providing quality affordable rental housing for low-income seniors; and WHEREAS, on or about March 8, 1978, and in accordance with Section 34 of the Lease, the original lessee, Senior Citizens. Housing Development Corporation of Miami Beach, assigned the Lease to Lessee, and such assignment was duly recorded in O.R. Book 9967, Page 271 of the public records of Miami -Dade County; and WHEREAS, Lessee desires to obtain financing, either through a leasehold mortgage, low income housing tax credit equity providers, or other financing vehicles eligible for affordable/elderly housing projects such as the Building, for the purpose of constructing certain capital improvements or other renovations to the Building, including building systems, individual dwelling units, and common areas, with the intent for such improvements, as defined more fully in Section II of this Amendment No. 1, to improve security, safety, and the quality of living conditions for the Building's residents; and WHEREAS, in order to obtain Tong -term financing for the Lessee's proposed renovations, Lessee requests an extension of the Term, for a period of fifty (50) years, following the expiration of the initial term on July 8, 2026; and WHEREAS, in view of the City Commission's desire to support and incentivize affordable housing projects within the City of Miami Beach, including affordable elderly housing, the City Commission desires to extend the term of the Lease, and waives the competitive bidding and appraisal requirements of Chapter 82-37 and 82-39 of the City Code, finding it in the best interests of the City to do so. NOW THEREFORE, the Lessor and Lessee for and in consideration of the mutual covenants, agreements and undertakings herein contained, do by these present mutually covenant and agree to amend the Lease Agreement, as follows: 113 I. Recitals. The recitals to this Amendment No. 1 are incorporated by reference as if fully set forth herein. Lessee warrants and represents that the recitals to this Amendment No. 1 are true and correct II. Lessee's Construction of Additional Improvements at the Building A. Lessee shall, at its sole cost and expense, be solely responsible for the design, development and construction of renovation improvements at the Building, including renovations to individual dwelling units thereof, as generally described in the scope of work set forth in Exhibit "A" attached hereto, and in accordance with the requirements set forth herein (the "Additional Improvements"). B. The Additional Improvements shall include all work that may be required for the Building to be in compliance with all applicable laws (including, without limitation, the Florida Building Code), and Miami -Dade County's forty (40) year re -certification requirements. C. The Additional Improvements shall also include enhancements to generator capacity to ensure the continued operation of HVAC, elevators, life safety systems, and other Building systems after a tropical storm, hurricane, or other acts of God that may impact the Building and the safety of residents in the Building. Specifically, Lessee shall acquire sufficient generators to maintain ambient temperatures at 80 degrees or less for a period of up to ninety- six (96) hours in the event of a loss of electrical power or other emergency situation. D. If necessary, Lessee shall obtain the requisite financing, in accordance with the provisions of this Lease (as amended herein), to complete the Additional Improvements, with the proceeds of such financing used for the design, development and construction of the Additional Improvements. E. Prior to commencing with the construction of the Additional Improvements, Lessee shall submit its proposed final plans for the Additional Improvements to the Lessor, to permit the Lessor (in its proprietary capacity as Lessor pursuant to this Lease, and without limiting Lessor's regulatory right of review or approval of the Additional Improvements in its capacity as an Agency Having Jurisdiction), to verify that the Lessee's final plans for the Additional Improvements satisfy the requirements set forth in this Amendment No. 1. F. With respect to the portion of the Additional Improvements that consist of renovations to individual dwelling units, Lessee shall phase the construction in such a manner as to minimize the disruptions associated with the relocation of residents in the Building. To the extent possible, Lessee shall relocate residents to other dwelling units that may be available in the Building, so as to maintain the continuity of social services and other on-site programming for residents in the Building as their individual dwelling units are being renovated, In furtherance thereof, Lessee agrees to maintain at least one dwelling unit in the Building as a temporary dwelling unit, to house resident(s) of the Building while their dwelling unit is being renovated. III. Registration of Residents for Emergency Evacuation Purposes. A. Lessee shall comply with and implement the Miami -Dade County's annual registration of eligible tenants for the County's Emergency Evacuation Assistance Program (EEAP), utilizing the forms attached hereto as Exhibit "B" (EEAP Application) and Exhibit "C" (Emergency Evacuation Pickup Sites) (or any successor forms as may be established by Miami - Dade County from time to time), for elderly and/or disabled residents of the Building who (1) are unable to evacuate on their own due to a specialized transportation need; (2) are homebound, unable to walk to a bus pickup point, and/or may otherwise not have access to transportation 1134 options; or (3) have medical needs that prevent them from evacuating on their own, such as bed bound residents, or residents on life-sustaining medical equipment requiring electricity, or residents requiring assistance with daily life activities. In the event an evacuation order is issued for the area where the demised premises are located (whether such evacuation order is mandatory or voluntary), Lessee shall exercise diligent, good -faith efforts to encourage residents of the Building to evacuate the Building as soon as possible. IV. Leasehold Mortgage or other Financing. A. Notwithstanding any provision to the contrary in the Lease, including Section 7 thereof, Lessee may encumber the demised premises with a leasehold mortgage or other financing relating to the demised premises or the Lease ("Leasehold Financing") as follows: Lessor agrees to execute a non -disturbance agreement (containing language reasonably acceptable to the Lessor) for the benefit of Lessee and the holder of any leasehold mortgage or other financing encumbering the demised premises ("Lender") and to cooperate with Lessee's efforts to obtain financing, including the execution of any necessary documents, so long as such documents are subject to the reasonable approval of the Lessor's attorney. No Leasehold Financing shall be valid or of any force or effect unless and until Lessor has consented thereto in writing (which consent shall be conditioned upon Lessee's compliance with the terms set forth herein, and which consent shall not otherwise be unreasonably withheld) and a true copy of the original of each instrument creating and effecting such Leasehold Financing, together with written notice containing the name and post office address of the Lender has been delivered to the Lessor, to the attention of its Asset Management/Real Estate Department. Further, the Leasehold Financing shall specifically provide: 1. That the Leasehold Financing is subject to all of the terms, covenants and conditions of this Lease; 2. That the Leasehold Financing encumbers only the Lessee's interest created by this Lease in the demised premises and the Building; 3. That the rights of the Lessor pursuant to this Lease will not be affected by the terms of the Leasehold Financing; 4. That the Lender shall waive all right and option to obtain and apply proceeds of any insurance or the proceeds of any condemnation award toward payment of the sums secured by the Leasehold Financing to the extent such proceeds are required by the terms of this Lease for the demolition, repair or restoration of the demised premises; 5. That the Lender shall agree to send Lessor copies of all notices to Lessee in which such mortgagee claims that there exists one or more uncured defaults under the terms and provisions of the Leasehold Financing, such notices to be sent simultaneously to Lessor and Lessee; 6. That the Lender has obtained no interest whatsoever in the underlying fee of the demised premises as a result of the execution of the Leasehold Financing by Lessee; Only the Lender may acquire any right, title or interest in or to this Lease, by acceptance of a deed or other instrument of conveyance thereof, by purchase at a foreclosure sale or by transfer in lieu of foreclosure, and will conclusively be deemed to have accepted such right, title or interest subject to all of the terms, covenants and conditions of this Lease; it being the specific intent of Lessee and the Lender that the Leasehold Financing encumber only Lessee's leasehold interest created by this Lease in the Property, and that except as 11A5 specifically set forth in this Lease, the rights of Lessor shall not be affected by the terms of the Leasehold Financing; and 7. That the Leasehold Financing, and all rights thereunder, shall be subject and subordinate to Lessor's interest in the Property. The Lender shall upon demand, at any time, execute, acknowledge and deliver to Lessor, without expense to Lessor, any instrument that may be necessary or proper to confirm the subordination of the Leasehold Financing to the Lessor's interests in the Property. V. Isical Condition Standards/Com • liance with HUD Standards. A. As part of Lessee's maintenance obligations under Section 10 of the Lease, and without limitation of Lessee's maintenance obligations as otherwise specified in the Lease, Lessee shall, at its expense, comply with the requirements of the Facility Condition Index attached hereto as Exhibit "D," so as to maintain the Building in a Fair condition or better, as set forth in Exhibit "D." B. As part of Lessee's maintenance obligations under Section 10 of the Lease, and without limitation of Lessee's maintenance obligations as otherwise specified in the Lease, Lessee further agrees to maintain the Building in a decent, safe and sanitary condition, and in good repair, in a manner that meets the Housing Quality Standards (HQS) of the U.S. Department of Housing and Urban Development with respect to multi -family dwelling units, including the Uniform Physical Condition Standards (UPCS) set forth in 24 CFR, Part 5, Subpart G, and 24 C.F.R. Part 200, Subpart P, and 24 C.F.R. Part 982, with respect to the Building, Building exterior, Building systems, individual dwelling units, Building common areas, and health and safety considerations affecting the Building and residents thereof. Lessee shall, upon thirty (30) day notice from the Lessor, promptly correct any individual deficiencies that may be identified from time to time with respect to any of the foregoing HQS or Uniform Physical Condition Standards, or otherwise with respect to Lessor's maintenance obligations as set forth in Section 10 of the Lease. 1. Lessee agrees to promptly provide the Lessor with a copy of any HUD physical condition assessment report relating to the Building or any portion thereof, including the HUD's Real Estate Assessment Center ("REAC") inspection report within thirty (30) days following Lessee's receipt of same from HUD. In addition, Lessee shall provide Lessor with Lessee's final HUD REAC score for the Building (or any successor uniform physical inspection protocol or scoring system that may be developed by HUD from time to time) within thirty (30) days following receipt of its final HUD REAC score. 2. Without limiting the Lessee's obligation to maintain the Building in a decent, safe and sanitary condition and in good repair, including Lessee's obligation to correct any individual deficiencies that may be identified from time to time with respect to any of the foregoing HQS or Uniform Physical Condition Standards, or otherwise with respect to the maintenance obligations set Section 10 of the Lease, Lessee specifically agrees to maintain, throughout the Term of this Lease (including any renewal Term provided for in this Amendment No. 1), an overall final REAC score of no less than 80 points. Lessee specifically agrees that an overall final REAC score of less than 80 points shall constitute a default of this Lease, entitling Lessor to terminate this Lease if such default(s) items is/are not cured no later than nine (9) months following HUD's release to Lessee of the final HUD REAC inspection report. If deficiencies remain unresolved after the nine (9) month cure period, the Lease shall be subject to, immediate termination at Lessor's sole discretion. Should the federal governtent establish any successor inspection protocol scoring system to replace the REAC scoring ystem, Lessee agrees to maintain, throughout the Term (and any renewal Term herein), an oveiail final score that is equivalent to an overall REAC score of 80 points or greater, with an overall physical condition assessment score indicating that the Building is being maintained in a good condition). C. As part of Lessee's maintenance obligations under this Lease, as amended herein, Lessee shall be solely responsible for obtaining the forty (40) year re -certification for the Building, as required by the Miami -Dade County Code, and for recertifying the Building every ten (10) years thereafter, as required by the Miami -Dade County Code. D. At Year 40 of the renewal term of this Lease (as provided in Section X of this Amendment No. 1), Lessee shall engage a third -party licensed engineering firm, selected and approved by both parties, to complete a Capital Needs Assessment (CNA) inspection as attached hereto as Exhibit "E" to ensure that the Building, its improvements and systems are structurally sound and in good working order and conform to the requirements of any Governmental Authority at the expiration of this Lease. Related costs of the CNA shall be paid by a reduction of Lessee's annual Lease payment for that given year only; unless the year of inspection coincides with already scheduled HUD required CNA inspection, in which case the Lessee shall pay for the inspection. The resulting CNA shall specify the remaining useful life of all building systems and assist the Lessor and Lessee's decision to develop a recapitalization plan for the property for the remainder of the Term, or for any extension thereof, if any is approved by the City Commission at its sole discretion. Notwithstanding the foregoing, all periodic or annual HQS or UPCS inspections required and performed by HUD, as outlined in Section V.B of this Amendment No. 1, shall continue until the expiration of the Lease . E. With respect to the generator (as set forth in Section II of this Amendment No. 1), Lessee shall acquire and provide for the safe maintenance of sufficient fuel to ensure that in an emergency situation the generators can function to maintain ambient temperatures at 80 degrees or less for a period of up to ninety-six (96) hours in the event of a loss of electrical power. Lessee shall implement policies and procedures to ensure that the staff at the Building can effectively and immediately activate and maintain the generators and fuel required for the operation thereof. VI. Inspection and Audit. A. As part of Lessor's right of inspection pursuant to Section 16 of the Lease, and without limitation of any rights of inspection otherwise specified therein, Lessee agrees that Lessor may inspect the Building any time upon reasonable notice by authorized representatives of the Lessor, or by any other State, County, Federal and/or municipal officer or agency having responsibilities for inspections of such operations and/or Building provided, however, that such right shall be exercised in such manner so as not to interfere with Lessee in the conduct of Lessee's activities ion the Building. In conducting any Building inspections, Lessor may, but shall not be required to use, the HUD inspection checklist form attached as Exhibit F hereto (or any successor form as may be established by HUD from time to time). Lessee agrees to within 24 hours of a written notice from the Lessor to undertake corrective actions to cure any deficiency cited by such inspectors. Throughout the term of this Lease, Lessee shall retain its financial and other records pertaining to its operation of the Building for the immediately preceding three (3) years, and such records shall be open and available to the City Manager or his designee, as deemed necessary by the City Manager or his designee, upon ten (10) business days' written notice from the City Manager or his designee that the Lessor desires to review said records. VII. Municipal Parking on Ground Floor of Demised Premises. Nothing in this Amendment No. 1 shall apply to, or otherwise have any effect on, the municipal parking spaces (metered or otherwise) managed and operated by the City on the ground floor of the Building 11§7 below the demised premises, nor shall this Amendment No. 1 apply to, or have any effect on, any use agreements between Lessor and Lessee or other agreements related thereto. VIII. Assignment/Transfer of Interests. A. Lessee shall not assign sublease or encumber its interest in this Lease, as amended, or in the Building, without Lessor's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, provided, however, that the foregoing shall not apply to (1) sub- leases or rentals of individual dwelling units in accordance with the terms and conditions of this Lease, (2) an assignment or sublease of the whole of the Lease to Lessee's parent entity, subsidiary, or entity that is controlled by or under common control with Lessee, or (3) an entity upon which Lessee is merged or consolidated. Lessor's consent to assignment shall be deemed to be "unreasonably withheld" if the proposed assignee is of such financial standing and responsibility at the time of such assignment as to give reasonable assurance of the payment of all rent and other amounts reserved in this Agreement and compliance with all the terms, covenants, provisions and conditions of this Lease, as amended. Any assignment in violation of this subsection shall be void. IX. HUD/Related Federal Approvals. Pursuant to Sections 20 and 34 of the Lease, this Amendment No. 1, shall be subject to and contingent upon Lessee obtaining the consent of any regulatory agency with any interest in or jurisdiction over the Lessee or the Building, including the U.S. Department of Housing and Urban Development, the Federal Housing Commissioner, or any other agency or regulatory body, as applicable. X. Renewal of Lease Term. Section 25 of the Lease is hereby deleted and replaced in its entirety with the following: Subject to and contingent upon Lessee's compliance with the terms and conditions of this Lease, as amended by this Amendment No. 1, and provided that Lessee is in good standing and not otherwise in default of any of its obligations hereunder, at the conclusion of the initial term of this Lease on July 8, 2026, this Lease shall be extended for an additional term of fifty (50) years, commencing on July 9, 2026, and expiring on July 8, 2076. XI. Annual Survey. Lessee agrees to conduct an annual satisfaction survey of residents, in a form comparable to Exhibit "G" and shall provide Lessor with a copy of the survey results upon request (including, at Lessor's option, a copy of the individual surveys completed by residents). XII. Ratification of Lease. Except as specifically amended herein, all other terms and conditions of the Lease shall remain in full force and effect. In the event there is a conflict between the provisions provided herein and the Lease, the provisions of this Amendment No. 1 to Lease shall govern. Remainder of Page Intentionally Left Blank 1188 IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto as of the day and year first written above. BY LESSOR: Attest: CITY OF MIAMI BEACH, FLORIDA Rafael Grana o, CITY CLERK Dan Gelber, MAYOR STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2018, by Mayor Dan Gelber and Rafael Grand°, City Clerk, or their designees respectively, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed, WITNESS my hand and official seal, this day of , 2018, My Commission Expires: Notary Public, State of Florida at Large Commission No.: 11.9 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION BY LESSEE: Attest: MIAMI BEACH SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION, INC. Signature Morton Bahr, PRESIDENT Print Name STATE OF FLORIDA SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2018, by Morton Bahr, President, on behalf of the Miami Beach Senior Citizens Housing Development Corporation, Inc., who has produced identification or is known to me to be the person described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this day of , 2018. My Commission Expires: Notary Public, State of Florida at Large Commission No.: 1180 For purposes of this Commission Memorandum, the Exhibits to Amendment No. 1 to Lease Agreement for Council Towers North are intentionally omitted. They are identical to those contained in the Amendment No.1 to Lease Agreement for Council Towers South. 1191