HomeMy WebLinkAbout2003-25098 Reso
RESOLUTION NUMBER 2003-25098
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE
ATTACHED MULTI.FAMILY HOUSING REHABILITATION
PROGRAM MATCHING GRANT AGREEMENT WITH THE
M.B. APARTMENTS ASSOCIATES, LTD., A FLORIDA
LIMITED PARTNERSHIP, ESTABLISHED AS A WHOLLY-
OWNED AFFILIATE OF THE MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC), IN THE
AMOUNT OF $80,000 IN COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH
THE MULTI-FAMILY HOUSING REHABILITATION
PROGRAM FOR THE REHABILITATION OF THE MADISON
APARTMENTS LOCATED AT 259 WASHINGTON AVENUE,
MIAMI BEACH, TO PROVIDE NINE (9) RENTAL UNITS FOR
INCOME.ELlGIBLE TENANTS FOR A MINIMUM PERIOD OF
FIVE (5) YEARS.
WHEREAS, on February 18,1992, the City was designated by the U.S. Department
of Housing and Urban Development (HUD) as a Participating Jurisdiction to receive
funding through the HOME Investment Partnerships (HOME) Program; and
WHEREAS, on June 29, 1994, the City entered into an HOME Investment
Partnerships Program Agreement (Initial Agreement) with MBCDC, providing Two Hundred
Thousand ($200,000) dollars in HOME Program funds for the acquisition of the Madison
Apartments, 259 Washington Avenue, Miami Beach, Florida, for the purpose of
rehabilitating the building in orderto provide affordable housing under the HOME Program;
and
WHEREAS, on December 6, 1995, the Mayor and City Commission approved an
amendment to the Initial Agreement, assigning all of MBCDC's rights, duties and
obligations under the Initial Agreement to M.B. Apartments Associates, Ltd., a Florida
Limited Partnership, (Partnership), and providing for increased funding (Project
Agreement); and
WHEREAS, on December 27,1995, the City approved an amendment to the Initial
Agreement to provide an additional One Hundred Fifty Thousand ($150,000) dollars in
HOME Program funds towards the cost of renovation, developing, and the operation ofthe
project; and
WHEREAS, on November 20, 1996, the Mayor and City Commission approved an
amendment to the HOME Investment Partnerships Program Project Agreement, dated
December 6, 1995, for the Madison Apartments at 259 Washington Avenue, between the
City and M.B. Apartments Associates, LTD., a Florida Limited Partnership, providing One
Hundred-Fifty Thousand ($150,000) dollars in additional HOME Program funds for costs
relating to the development of the project; and
WHEREAS, the City has established a program to encourage the rehabilitation of
existing multi-family buildings using funds from the U.S. Department of Housing and Urban
Development (HUD); and
WHEREAS, the Multi-Family Housing Rehabilitation Program (Program) is
administered by the Neighborhood Services Department; and
WHEREAS, on July 16, 1997, the Mayor and City Commission approved and
adopted revised Guidelines for the Multi-Family Housing Rehabilitation Program; and
WHEREAS, the City has received an application under the Program Guidelines for
funding the rehabilitation of an existing building located at 259 Washington Avenue which
contains seventeen (17) apartment units, consisting offour (4) efficiency units, three (3)
one-bedroom units, seven (7) two-bedroom units, and three (3) three-bedroom units; and
WHEREAS, the owner of this property, M.B. Apartments Associates, LTD. (Owner),
a Florida Limited Partnership, has agreed to offer a minimum of nine (9) of the seventeen
(17) residential units at reduced rental rates for a minimum of five (5) additional five years
of affordability starting at the time of satisfaction of the HOME Program Agreement; and
WHEREAS, the City's Loan Review Committee, at its October 11, 2002 meeting,
recommended that the Mayor and City Commission fund the proposed rehabilitation of
966-974 Biarritz Drive with a Multi-Family Housing Rehabilitation Matching Grant in the
amount of $80,000 in CDBG funds; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are authorized to execute the attached Mayor and City Clerk to execute the attached Multi-
Family Housing Rehabilitation Program Matching Grant Agreement with the M.B.
Apartments Associates, Ltd., a Florida Limited Partnership, established as a wholly-owned
affiliate of the Miami Beach Community Development Corporation (MBCDC), in the amount
of $80,000 in Community Development Block Grant (CDBG) Program funds through the
Multi-Family Housing Rehabilitation Program for the rehabilitation of the Madison
Apartments located at 259 Washington Avenue, Miami Beach, to provide nine (9) rental
units for income-eligible tenants for a minimum period of five (5) years.
PASSED,AND ADOPTED THIS 8th
DAY OF January
,2003.
ATTEST:
~~ ~lM.~
CITY CLERK
(f~
MAYOR
F:\NEIG\Housing\STEVE\Mult-Fam\259 Washington Avenue\259 Washington Avenue - Rese.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
" J').o;~~
tr ..
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution to execute a Multi-Family Housing Rehabilitation Program Matching Grant Agreement with
M.B. Apartments Associates, Ltd., a Florida Limited Partnership, a wholly-owned affiliate of the Miami
Beach Community Development Corporation, in the amount of $80,000 in Community Development Block
Grant (CDBG) Program funds through the Multi-Family Housing Rehabilitation Program for the
rehabilitation of the Madison Apartments located at 259 Washington Avenue, Miami Beach, to provide nine
(9) rental units for income-eligible tenants for a minimum period of five (5) years,
Issue:
Shall the City of Miami Beach execute a Multi-Family Housing Rehabilitation Program Matching Grant
Agreement with M.B. Apartments Associates, Ltd., a Florida Limited Partnership (a wholly-owned affiliate of
the Miami Beach Community Development Corporation), in the amount of $80,000 in Community
Development Block Grant (CDBG) Program funds through the Multi-Family Housing Rehabilitation Program
for the rehabilitation of 259 Washington Avenue, Miami Beach, to provide nine (9) rental units for income-
eligible tenants for five years.
Item Summary/Recommendation:
The Madison Apartments at 259 Washington Avenue is a two-story building, with four (4) efficiency units,
three (3) one-bedroom units, seven (7) two-bedroom units, and three (3) three-bedroom units. The Owner
proposes to rehabilitate the building, maintaining the same basic layout. The Owner has estimated the cost
of rehabilitation to be $160,000 and is requesting a Multi-Family Housing Rehabilitation Program Matching
Grant in the amount of $80,000 CDBG funds. Under the Program Guidelines, nine (9) of the 17 apartments
will be rented to income-eligible tenants earning 80 percent or less of the Area Median Income ($30,850 for
a family of two) for a period of five (5) years.
Advisory Board Recommendation:
On October 11, 2002, the City's Loan Review Committee met and reviewed the application for funding for
this property and voted to recommend approval by the Mayor and City Commission. The LRC
recommended a Matching Grant of $80,000 towards the rehabilitation costs for this property.
Financial Information:
Amount to be expended:
CDBG
Funds
$80,000
Source of
Funds:
Finance Dept.
City Clerk's Office Legislative Tracking:
I Vivian P. Guzman
AGENDA ITEM
DATE
C7C
/-Bt-03
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: January 8, 2003
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez _, ~
City Manager () . ()
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY HOUSING
REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH
THE M.B. APARTMENTS ASSOCIATES, LTD., A FLORIDA LIMITED
PARTNERSHIP, ESTABLISHED AS A WHOLL Y-OWNED, AFFILIATE OF
THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), IN THE AMOUNT OF $80,000 IN COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH THE MUL TI-
FAMILY HOUSING REHABILITATION PROGRAM FOR THE
REHABILITATION OF THE MADISON APARTMENTS LOCATED AT 259
WASHINGTON AVENUE, MIAMI BEACH, TO PROVIDE NINE (9) RENTAL
UNITS FOR INCOME-ELIGIBLE TENANTS FOR A MINIMUM PERIOD OF
FIVE (5) YEARS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City administers the Multi-Family Housing Rehabilitation Program through the Housing
and Community Development Division of the Neighborhood Services Department. Since
1981, the City has provided financial assistance to property owners through this Program
resulting in the successful renovation of over 1,250 units of rental housing. The Multi-
Family Housing Rehabilitation Program operates with federal funds from the U.S.
Department of Housing and Urban Development (HUD) through the Community
Development Block Grant (CDBG) Program.
The Program Guidelines, adopted by the Mayor and City Commission on July 16, 1997,
require that buildings rehabilitated thereunder be maintained in rental use for at least five
(5) years, and that 51 percent of the units be offered at affordable rental rates for that
period. The proposed Matching Grant Agreement with the property owner includes
stipulations requiring repayment to the City of the full amount of the Grant in case the
owner fails to perform the requirements of the Agreement. .
d
t\
,
\1
January 8, 2003
Commission Memorandum
259 Washington Avenue
Page 2
Under the terms of a HOME Program Agreement, last amended on November 20, 1996, M.
B. Apartments Associates, Ltd., a Florida Limited Partnership, established as a wholly-
owned affiliate of the Miami Beach Community Development Corporation (MBCDC),
received a total of $500,000, in HOME Program funds from the City for the development of
the Madison Apartments, a 17-unit HOME Program rehabilitation project. MBCDC
successfully obtained other public and private funds, including State Tax Credits, Miami-
Dade HOME funds, Miami-Dade Hurricane Trust Funds, and State of Florida HOME funds,
for a total project cost of $2,351,205. At the time of the initial rehabilitation, a limited
sealing of the building was undertaken to stabilize the deterioration of the building until
additional funding could be secured to perform a thorough rehabilitation of the facade of
the structure. The Neighborhood Services Department, Code Compliance Division, notified
the owner of the building that water leakage has developed and that the sealing of the
facade is necessary before water intrusion causes further structural damage.
259 Washington Avenue - Funding Recommended: $80,000
The Madison Apartments at 259 Washington Avenue is a two-story building, with four (4)
efficiency units, three (3) one-bedroom units, seven (7) two-bedroom units, and three (3)
three-bedroom units. The building at 259 Washington Avenue was built in 1922 as an
apartment building. The architecture of the structure is Post War Modern. The building is
not considered architecturally significant and is not included in the City's register of historic
buildings. The building is over 50 years of age and has been reviewed by the State
Historic Preservation Officer (SHPO). The applicant purchased the subject property in
December of 1995. The appraised value of the building, according to the Miami-Dade
Department of Property Appraisal, is $1,155,382. Accepting this price as market value, the
construction cost estimate of $160,000 is 14 percent of the market value of the land and
building before the rehabilitation.
The proposed improvements are estimated to cost $160,000. The scope of work on the
apartment building will primarily focus on the sealing, painting, and repairs associated with
the sealing of the building. MBCDC will provide a match of $80,000 toward the
rehabilitation of the property through a line of credit with the SunTrust Bank and a
construction Loan through a Surtax Future Advance Loan.
Since the property is currently under the terms of a HOME Program Agreement with the
City to provide affordable units for a period of fifteen (15) years, the Owner has agreed to
provide an additional five years of affordability for nine (9) of the apartments in accordance
with the Program Guidelines starting at the time of satisfaction of the HOME Program
Agreement. These nine (9) units will be reserved for occupancy by tenants earning 80
percent or less of the Area Median Income as determined by HUD.
January 8, 2003
Commission Memorandum
259 Washington Avenue
Page 3
On October 11, 2002, the City's Loan Review Committee (LRC) met and reviewed the
application for funding for this property and voted to recommend approval by the Mayor
and City Commission. The LRC recommended a Grant of $80,000 towards the
rehabilitation costs for the property. The project qualifies for a maximum of $150,000 of
CDBG Program funds as a grant under the current Program Guidelines, based on four (4)
efficiency apartments at $5,000 per unit, three (3) one-bedroom apartments at $7,500 per
unit, seven (7) two-bedroom apartments at $10,000 per unit, and three (3) three-bedroom
apartments at $12,500 per unit.
A review of City and County records for the property indicates that there are no unpaid
water or sanitation bills, and taxes are paid for the current year. In accordance with the
Program Guidelines, the rehabilitation proposed will bring the property into compliance with
the City's Property Maintenance Standards.
This building currently has 17 existing tenants. The applicant estimates that no relocation
will be required. If temporary relocation is necessary, the owner intends to provide the
tenant with comparable hotel accommodations.
The Administration recommends that the Mayor and City Commission adopt the attached
resolution authorizing the Mayor and City Clerk to execute the attached Multi-Family
Housing Rehabilitation Program Matching Grant Agreement with the M.B. Apartments
Associates, LTD., a Florida Limited Partnership, in the amount of $80,000 in Community
Development Block Grant (CDBG) Program funds through the Multi-Family Housing
Rehabilitation Program for the rehabilitation of the Madison Apartments located at 259
Washington Avenue, Miami Beach, to provide nine (9) rental units for income-eligible
tenants for a mini~~ ~riod of five (5) years.
JMG/RCMN\G/~KC
F:\NEIG\Houslng\MIGUELl\Memorandum\259 Washington Avenue - Memo.doc
. t
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
MULTI-FAMILY HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT
THIS AGREEMENT entered into this ~ day of ~4l' ,2003, by and between:
M,B. APARTMENTS ASSOCIATES, LTD., whose business address is 945 Pennsylvania Avenue, 2nd Floor, Miami
Beach, Florida 33139, hereinafter referred to as "Owner", who is the legal owner of the property at 259 Washington
Avenue, Miami Beach, Florida, 33139 more particularly described as:
Lot 16 of Block 8, OCEAN BEACH FLORIDA, according to the plat thereof recorded in Plat Book 2 at
Page 38, of the Public Records of Miami- Dade County, Florida, also known as 259 Washington Avenue,
hereinafter referred to as the "Project",
and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention Center
Drive, Miami Beach, Florida, hereinafter referred to as the "City".
WITNESSETH:
WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter referred to as
"Program", designed to provide financial assistance to property owners of deteriorated and substandard multi-family
residential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and
WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing
Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on July 16, 1997, which are deemed
incorporated by reference and made a part of this Agreement; and
WHEREAS, Owner, as the legal Owner of the Project described above, has agreed to rehabilitate said Project
in accordance with the Guidelines of the Program; and
WHEREAS, the City's Loan Review Committee on October II, 2002, recommended approval of assistance to
the Project under the Program, and the provision of assistance has been approved by the Mayor and City Commission,
subj ect to certain conditions, including the requirement that the Owner and the City enter into this Agreement; and
WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided hereunder
derive from federal Community Development Block Grant funds appropriated to the City by the U.S. Department of
Housing and Urban Development, for the uses and purposes herein referred to, and accordingly it is acknowledged and
agreed that this Agreement is entered into after compliance by the parties with all applicable provisions of Federal, State
and local laws, statutes, rules and regulations as they may apply to this Agreement, which certain of said regulations are
incorporated herein as more fully set forth in Attachment "A".
NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration of the
matching grant monies which are to be paid by City to the Owner, which consideration is hereby acknowledged by the
parties, the parties do agree as follows:
(1) Any amendments, alterations, or variations to this Agreement will only be valid when they have been
reduced to writing and duly signed by the parties.
(2) It is understood and agreed by and between the parties that the Guidelines, as they may be amended
from time to time, represent the scope of services and responsibilities of the parties under the Program
"
.'
and the parties agree to abide by and comply with their roles and responsibilities under the Guidelines
as set forth therein.
(3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of the
Program and contract docwnents,
(4) Rehabilitation of the Project shall be done in accordance with the applicable codes, ordinances and
statutes of the State of Florida, Miami-Dade County, and of the City.
(5) The maximwn Matching Grant amount to be provided under this Agreement is Eighty Thousand
Dollars ($80,000). This amount is to be used only to cover the cost of rehabilitating the building, as a
match for funds paid by the Owner on at least a dollar-for-dollar basis. The structural repairs are to be
completed first and any left over money can be used to work on the list of remaining items. The work
is to be done in accordance with the application and addendwn filed by the Owner with the City,
reviewed and recommended by the City's Loan Review Committee on October II, 2002, and
subsequently approved and amended by the Mayor and City Commission,
(6) It is understood and agreed by and between the parties that none of the obligations of the City asswned
or created hereunder shall be general obligations of the City and none of the same shall be enforceable
against the City generally. Any and all obligations, liabilities and commitments of the City hereunder,
shall be limited to the payment of a Matching Grant amount of Eighty Thousand Dollars ($80,000), as
specified herein. No other fiscal, legal, equitable or contractual duty or obligation is asswned by the
City, and the Owner by executing this Agreement so agrees.
The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's
liability for any cause of action for money damages due to an alleged breach by the City of this
Agreement, so that its liability for any such breach never exceeds the swn of$80,OOO. Owner hereby
expresses its willingness to enter into this Agreement with Owner's recovery from the City for any
damage action for breach of contract to be limited to a maximwn amount of$80,OOO, less the amount
of all funds actually paid by the City to Owner pursuant to this Agreement.
Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in an amount
in excess of$80,OOO, which amount shall be reduced by the amount of the funding actually paid by the
City to Owner pursuant to this Agreement, for any action or claim for breach of contract arising out of
the performance or non-performance of any obligations imposed upon the City by this Agreement.
Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a
waiver of the limitation placed on the City's liability as set forth in Florida Statutes, Section 768.28,
(7) The Matching Grant amount shall be paid to the Owner and shall be disbursed during the rehabilitation
of the Project. After this Matching Grant payment is made by the City to the Owner and applied by the
Owner according to the procedures set forth herein, the City shall be automatically discharged from
any and all obligations, liabilities and commitments hereunder to Owner or any third person or entity
provided, however, that this Section shall not excuse the continued compliance by Owner with the
tenns of this Agreement and the federal Program requirements, Owner, for consideration of One
Dollar ($1.00) and other good, valuable, separate and distinct consideration, receipt of which is hereby
acknowledged, hereby saves and holds harm1ess, inderrmifies and protects the City, its officers and
employees from any and all obligations, liabilities, commitments, actions, claims, causes of action,
suits or demands arising or accruing by virtue of this Agreement or the Project contemplated
hereunder.
(8) The following procedures must be followed, prior to the commencement of work on this Project:
a) Owner must submit a written request to the City's Housing and Community Development Division
of the Neighborhood Services Department ("NSD") for a Pre-Construction Conference, which must be
2
"
attended by all contractors and subcontractors. This request must include the names and addresses of
the proposed contractors and sub-contractors, including the names of the principal owners of corporate
entities, and an indication whether each of the contractor's portion of the total project value will exceed
$10,000. This process requires at least ten (10) days advance notification.
b) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded
project. The names submitted will be checked against the "Consolidated List of Debarred, Suspended
& Ineligible Contractors and Grantees" monthly listing published by the Federal Government.
c) If the building is more than 50 years old, Owner's Architect or Engineer must obtain and submit to
the City a letter indicating that the plans for the Project have been reviewed by the State Historic
Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable to that Office.
d) A set of fmal approved plans and specifications for the Project, approved by the City's Building
Department, must be submitted to the Housing and Community Development Division of the NSD.
e) Building pennits must be obtained as required by applicable City Ordinance. Also, any other
necessary pennits and applicable approvals from any other governmental authorities must be obtained,
if required.
f) A copy of the contract between the Owner and a licensed General Contractor must be submitted to
the City, which includes commencement and completion dates, contract amount, scope of work,
Federal Labor Standards Provisions (HUD Form 4010), and applicable federal regulations and
standards.
g) The contractor selected must submit evidence prior to the commencement of work, satisfactory to
the City's Insurance Manager, of the following insurance coverage: I) Liability insurance against
claims arising out of accident or occurrence on the property, in a minimum amount of$1 ,000,000, with
the City of Miami Beach named as additional insured in the policy; and 2) Proof of worker's
compensation coverage; and 3) such other fonns of insurance as the City's Risk Manager may
reasonably require.
h) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the
actual contract price.
i) The Owner must provide a Lien Statement from the City's Finance Department demonstrating that it
is current with the legal and financial obligations and/or payments on the Project, and the property
herein, with the City.
When the above requirements have been met, the Housing and Community Development Division of
the NSD and the Building Services Division will jointly issue a "Notice to Proceed" on the Project. If
the Owner or contractor does not fully comply, or if any work commences prior to the issuance of the
Notice to Proceed, then such work may, at the discretion of the City, not be reimbursed under the
Program, and could constitute a default under this Agreement.
Exception: Subject to the prior approval of the Housing and Corrnnunity Development Division of the
NSD and the Building Services Division, emergency repairs can be undertaken on the Project.
(9) In consideration for the performance of Owner of its role and responsibilities set forth in this
Agreement, the City agrees to pay to Owner, the sum of Eighty Thousand Dollars ($80,000), as the
total of the Matching Grant described herein. Said total shall be disbursed by the City to the Owner
during construction as follows: During the construction phase, and not more often than once a month, a
payment may be requested equivalent to ninety percent (90%) of the pro-rata portion of the value of
the work completed in the previous period, as certified by the Owner's Architect or Engineer, and
3
"
confirmed by the Housing and Community Development Division of the City's Neighborhood Services
Department. The City's payments hereunder will be computed based on the ratio of the matching grant
amount to the total estimated construction cost. In the event the actual cost is less than the estimate,
the amount of the City's Matching Grant will be reduced proportionately, so that the City's portion of
the total cost is never higher than 50% of the total cost. The final ten percent (10%) of the matching
grant payment shall be paid following the completion, approval and acceptance of the rehabilitation
work and related documentation by all the governmental agencies and authorities having jurisdiction
over the Project, including compliance with the requirements of the Davis Bacon Act, if applicable,
and as set forth in the Guidelines.
(10) Owner agrees to comply with the following requirements during and after construction begins:
a) The Owner must announce and publicize the source of the public funds provided for the Project. A
construction sign must be displayed on the site during the construction phase, with the design and
location to be approved by the City. The sign, to be provided and paid for by the Owner, must be
maintained for the duration of the construction work. The City will provide detailed information on
the dimensions and appearance of the sign,
b) The Owner's General Contractor shall be responsible for compliance with all pollution and asbestos
control standards of the concerned governmental agencies. It shall be the Contractor's responsibility to
obtain required inspections from these agencies.
c) On September 15,1999, the "Requirements for Notification, Evaluation and Reduction of Lead-
Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal
Assistance; Final Rule" was published within title 24 of the Code of Federal Regulations as part 35 (24
CFR 35). The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based
Paint Hazard Reduction Act of 1992, which is Title X (ten) of the Housing and Community
Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead-Based Paint
Poisoning Prevention Act of 1971, which is the basic law covering lead-based paint in federally
associated housing.
The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead in
house dust. Scientific research has found that exposure to lead in dust is the most common way young
children become lead poisoned. Therefore, the new regulation requires dust testing after paint is
disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing is
being disposed of or assisted by the federal government, and also on the type and amount of [mancial
assistance, the age of the structure, and whether the dwelling is rental or owner occupied.
PROPERTY EXEMPT FROM LEAD-BASED PAINT REGULATION.
. Housing built since January 1, 1978, when lead paint was banned forresidential use
. Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is
expected to reside there
. Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing,
dormitories or military barracks
. Property that has been found to be free of lead-based paint by a certified lead-based paint
inspector
. Property where all lead-based paint has been removed
. Unoccupied housing that will remain vacant until demolished
. Non-Residential property
. Any rehabilitation or housing improvement that does not disturb a painted surface
TYPES OF HOUSING SUBJECT TO 24 CFR 35
. Federally-Owned housing being sold
4
. Housing receiving a federal subsidy that is associated with the property, rather than with the
occupants (project-based assistance)
. Public housing
. Housing occupied by a family (with a child) receiving tenant-based subsidy (such as a
voucher or certificate)
. Multifamily housing for which mortgage insurance is being sought
. Housing receiving federal assistance for rehabilitation, reducing homelessness, and other
special needs
If you want copies of the regulation or have general questions, you can call the National Lead
Information Center at (800) 424-LEAD, or TDD (800) 526-5456 for the hearing impaired. You can
also download the regulation and other educational materials at www,hud,gov/lea. For further
information, you may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at
lead regulations(<ilhud. gov.
d) After the Project, and the property herein, has been rehabilitated, it must conform to the applicable
codes, ordinances and statutes of the City and of Miami-Dade County, including, but not limited to, the
South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards.
(11) It is understood and agreed by Owner that for at least five (5) years beginning at the time of
satisfaction of the HOME Program Agreement (HOME Investment Partnerships Program Agreement,
June 29, 1994), a minimum of nine (9) apartment units (53%) will be occupied by low and moderate
income households at affordable rents. Low and moderate income households means the combined
income of all members of the household does not exceed 80% of the Area Median Income, as
published by HUD. All tenants must be offered a written lease. A "Household Income Certification
Report" will have to be completed for every rental unit claimed as meeting the above requirements at
least annually. This report must be submitted to the Housing and Community Development Division
of the NSD within ten (10) days after the commencement of each lease, and an updated form must be
submitted at least annually thereafter during the month of August, for the fiscal year ended September
30.
The following income limits apply as of this date, but may be revised annually:
I person
2 persons
3 persons
4 persons
$27,000
$30,850
$34,700
$38,550
Monthly rents for units occupied by low and moderate income households are considered affordable if
they do not exceed the "40th Percentile Fair Market Rents for Existing Housing", published by HUD,
as of this date, but subject to revision annually. Currently the rent for an efficiency apartment is $498,
including a utility allowance of$53 per month, for a net rent of $445 per month excluding utilities; a
one bedroom apartment is $626, including a utility allowance of$60 per month, for a net rent of$566
per month excluding utilities; and the rent for a two-bedroom apartment is $781 per month, which
includes a $72 per month utility allowance, for a net of $709 per month.
(12) It is understood by Owner that if the Project is converted to condominiums, sold, or withdrawn from
rental use within five (5) years after the Final Certificate of Completion is issued, the full amount of
the Matching Grant payment will become immediately due and payable to the City.
(13) Owner shall deliver to the Housing and Community Development Division of the NSD, by August
30th of each calendar year, its signed notarized report in form and substance acceptable to the City,
which includes the names oftenants, unit type, family income, rents charged, and occupancy factor of
5
each unit for the prior year. This report will continue to be required through the August 30th following
the expiration ofthe five (5) year period after the date of issuance of a Final Certificate of Completion.
(14) It shall be deemed a default of this Agreement if Owner does not strictly comply with the tenns,
conditions, duties and procedures established herein for obtaining City consent to assignment or
transfer as defined by this Section. In the event such consent is not obtained in the manner prescribed
herein, the City shall be entitled to declare a default, cancel this Agreement and resort to its rights and
remedies against the defaulting party. Owner shall not assign any interest in this Agreement and will
not transfer any interest in the same without the prior written consent of the City, which shall take into
consideration any recommendation(s) regarding same by its Loan Review Committee. In the event
Owner is a corporation, limited partnership or other incorporated or artificial business entity, a transfer
of more than ten percent (10%) Ownership interest of its stock by pledge, sale or otherwise (except a
transfer of partnership interests in connection with the syndication of limited partner interests in the
Ownership, which shall not require any consent hereunder); or if Owner makes an assignment for the
benefit of its creditors or uses this Agreement as security or collateral for any loan; or if Owner is
voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if Owner has a
receiver appointed over any of its properties; or if Owner does not satisfy in full or appeal any
judgment for the sum of $5,000 (or more) within thirty (30) days from its' rendition; or if Owner is
involved in a bulk transfer of its business, then, in that event, each of the foregoing actions will be
deemed an assignment of this Agreement and require the prior written consent of the City, which shall
take into consideration any recommendation(s) regarding same by its Loan Review Committee.
In the event Owner is a trust, which includes, without limitation, a land trust and a trust company, any
change in the person or entity who is the trustee or any change in the heirs or beneficiaries of such trust
shall be deemed an assignment under this Section and require the prior written consent of the City,
which shall take into consideration any recommendation(s) regarding same by its Loan Review
Committee. Regardless of the type of entity Owner is defmed to be, a merger, insolvency, bankruptcy,
dissolution, consolidation, conversion, liquidation, or appointment of a receiver for such Owner shall
each be deemed an assignment of this Agreement and will require the prior written consent of the City
upon approval by the Loan Review Committee.
(15) For purposes of this Agreement, a default shall include, without limitation, the following acts or events
of the Owner, or its agents, servants, employees, or contractors:
(a) Owner's failure to (I) commence work within thirty (30) days from the date of issuance of the
Notice to Proceed by the City; or (ii) diligently pursue construction and timely complete the Project by
securing a Final Certificate of Completion within twelve (12) months from the date of this Agreement;
or (iii) provide the documentation required to make the fmal payment of the matching grant, as
indicated in the Guidelines, within thirty (30) days from the date of issuance ofa Final Certificate of
Completion.
Work shall be considered to have commenced and be in active progress when, in the sole opinion and
discretion of the City, a full complement of workmen and equipment is present at the site to diligently
incorporate materials and equipment into the structure throughout the day on each full working day,
weather permitting.
(b) Owner's failure to comply with applicable building, fue, life safety, housing and zoning laws,
rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan document
executed by Owner in favor of a Lender. Notwithstanding the provisions of Paragraphs 17 and 18,
upon a default of a written indebtedness, including without limitation, a note, mortgage, guarantee, and
this Agreement, Owner waives notice, presentment and/or demand of default, and the full amount of
the Matching Grant payment will become due and payable to the City.
6
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or Lender.
(f) Owner's failure to correct defects within a reasonable time as defmed herein.
(g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines or applicable
laws, rules and regulations pertaining hereto which are referenced by this Agreement.
(h) Claims oflien not satisfied or bonded-off, in accordance with Florida Statutes, within sixty (60)
days from the date of filing of any such lien.
(i) An assignment or transfer of this Agreement or any interest therein by Owner which does not
comply with the procedures set forth herein.
(16) In the event ofa default, the City may, thirty (30) days after mailing to Owner a notice of such default
as set forth herein, automatically cancel and tenninate this Agreement without liability to any party to
this Agreement. If the default is not fully and satisfactorily cured within thirty (30) days of the City
mailing notice of such default to Owner, to the full satisfaction of the City, at the expiration of said
thirty (30) day period, this Agreement may, at the City's sole option and discretion, be deemed
automatically canceled and tenninated and the City fully discharged from any and all liabilities, duties
and terms arising out of or accruing by virtue of this Agreement and the Project, and all funds paid to
the Owner hereunder shall be immediately due and payable to the City.
(17) In the event of a default, the City shall additionally be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest in Miami-Dade County, Florida, in order to
enforce the City's rights and remedies against the defaulting party. The City shall be entitled to
recover all costs of such actions including reasonable attorney's fees to the extent allowed by law. The
Owner waives its right to jury trial and its right to bring pennissive counterclaims against the City in
any such action to the extent allowed by law.
(18) If the property is occupied at the time the application is submitted the Owner must submit a tenant roll.
Additionally, the Owner must submit for each unit: tenant names, lease terms, duration of occupancy,
rent currently paid, with an indication as to whether utilities are included, family size, family income,
and any other infonnation detennined necessary by the NSD to assess the need for temporary
relocation. If a property is occupied and temporary relocation of the tenants is required during the
rehabilitation or construction, the City will reimburse up to fifty percent (50%) of "eligible" temporary
relocation expenses incurred by the property owner in accordance with the budget and plan submitted
as part of the application and approved by the City. "Eligible" expenses will be detennined in
accordance with the provisions of Handbook 1378: Tenant Assistance, Relocation and Real Property
ACQuisition, issued by HUD, as amended.
(19) The Owner must pay these expenses directly, or reimburse the tenants for their payments, and
document all such expenditures carefully. Upon submittal of a detailed accounting, to the satisfaction
of the City, of all such payments or reimbursements made each month for the duration of the project,
the City will reimburse the owner up to 50% of those eligible expenses incurred for this purpose.
Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such
permanent relocation shall be borne by the Owner.
(20) The Owner agrees to send, or to pennit the City or its agent to send, federally required notices to
tenants in a timely manner. These notices include, but are not limited to: General Infonnation Notice,
Notice of Non-displacement and a Notice of Eligibility. Owner shall make every effort to assure that
temporary accommodations provided for tenants are decent, safe and sanitary, and that other living
7
conditions are generally acceptable. The Owner will ensure that there is no increase in out-of-pocket
housing expenses to the tenant. Those tenants who were in residence prior rehabilitation, and who
received a "Notice ofN on-Displacement", who elect to return to the property upon completion of the
rehabilitation work are referred to herein as "Returning Tenants". Owner must agree to offer a unitto
the Returning Tenants on the following tenns, independently of the rent restrictions detailed herein:
a. Returning Tenants must be offered the same apartment previously occupied, or a unit comparable in
tenns of size and amenities to the unit occupied prior to the rehabilitation.
b. Returning Tenants must be offered a standard lease for at least a 12 month period at the same rent
being charged before the rehabilitation.
c. Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following the
completion of the rehabilitation work, rent charged the Returning Tenant may be increased in an
amount deemed reasonable by the City, and only if the amount of such proposed increase can be
justified, based on documented increases in the operating costs of the property.
d. Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted
to the HUD Fair Market Rent, as specified in Chapter I, Section iv (h), if applicable, or to market
rental rate if the Tenant's income is greater than 80% of the Area Median Income.
(21) Notices and demands: All notices, demands, correspondence and communications between the City
and the Owner shall be deemed sufficiently given under the tenns of this Agreement if dispatched by
registered or certified mail, postage prepaid, return receipt requested, addressed as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with copies to:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: (1) City Attorney's Office
and: (2) Housing Manager, NSD
If to the Owner:
Roberto Datorre, President
M.B. Apartments Associates, Ltd.
945Pennsylviania Avenue
Miami Beach, Florida 33139
or to such address and to the attention of such other person as the City or the Owner may from time to
time designate by written notice to the other.
(22) It is understood and agreed that the City shall record this Agreement, with the Clerk of the County
Court, Miami-Dade County, Florida and shall furnish the Owner with conformed copies of the
recorded instrument within sixty (60) days of the recordation of this Agreement.
(23) The Owner agrees that upon completion of the rehabilitation hereunder, it will undertake an
affirmative marketing program in accordance with 24 CFR Part 570.601-2. At a minimum, the Owner
must implement an affirmative marketing program that provides information to, and attracts eligible
persons in the housing market area to the available housing receiving assistance from CDBG funds,
without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital status,
8
familial status, or age. The affirmative marketing requirements and procedures adopted by the Owner
shall include, but not necessarily be limited to, the following:
(a) Methods for informing the public and potential tenants about Federal Fair Housing Laws and the
applicable affIrmative marketing policy;
(b) Requirements and practices for carrying out the affirmative marketing plan;
(c) Procedures to be used to inform and solicit applications from persons in the housing market area
who are not likely to apply for the housing without special outreach (e.g., use of community
organizations including, but not limited to: churches, employment centers, community centers, fair
housing groups, housing counseling agencies, community development corporations, and the Housing
Authority of the City of Miami Beach)
(d) Records to be kept describing actions taken to affirmatively market units and records to assess the
results of these actions, including newspaper clippings of all vacant units advertised, copies of
brochures, pamphlets, and articles used in advertising units, lists of community organizations used in
disseminating information, records of referrals, and the results of Owners and referrals, and
documentation of any other special outreach activities conducted.
(e) A description of how the City can assess the success of afTmnative marketing actions; and
(f) A certification that states that the Owner agrees to adhere to whatever corrective actions the City
requires to be taken where affirmative marketing requirements are not met.
(g) Owner agrees to post in a visible location within the building a poster provided by the City
advising the tenants of the City's participation in the project.
9
IN WITNESS WHEREOF, the Owner, and the City have caused this Agreement to be executed by their respective
duly authorized officers, the day and year first above written, THE PARTIES HERETO STATE THAT THEY HAVE
CAREFULLY READ THE FOREGOING AGREEMENT AND THE CITY OF MIAMI BEACH MUL TI-F AMIL Y
REHABILITATION PROGRAM GUIDELINES, AND KNOW THE CONTENTS THEREOF AND FULLY REALIZE
THEIR MEANING AND SIGN THIS AGREEMENT AS THEIR OWN FREE ACT.
WITNESS:
Owner: M.B. Apartments Associates, Ltd.
~".,,~, PRESIDENT
CITY OF MIAMI BEACH
By:
cC~
DAVID DERM, OR
VfCe -M~Y~ tL S/M oM (It!Yz...
AITE~ p~
ROBERT PARCHER, CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
AJJ4.A1lh~// ~ .n..-~- ~
.,,~ Date
10
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, this -6 ~day of
, of966-974 Biarritz, who provided
oath. ~Y5";1?(;f11'J r.
IVffiECHAVARRIA
MY COMMISSION # CC 908695
EXPIRES: February 8. 2004
Bonded Thru Notary P~bl1c Underwl'ilers
My Commission Expires:
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
, 2003, by Roberto Datorre, as
as identification and did/did not take an
,) ov F7
Name:
NOTARY PUBLIC, State of Florida
Commission Nl
The foregoing instrument was acknowledged before me, this~day ofT ~bY David Dermer, as Mayor of
the City of Miami Beach, who is personally known to me, and did not take an oath,
My Commission Expires:
F:\NEIG\Housing\STEVE\Muh-Fam\2S9 Washington Avenue\259 Washington Avenue - Agreement.doc
11
4ftti~
e: t;/Iia e.o,uchq~
NOTARY PUBLIC, State of Florida
Commission Nl DD fO'} 7_81
,-
L1LUAN BEAUCHAMP
NOTARY PUBLIC srATE OF FLORIDA
COMMISSION NO. 00109289
MY COMMISSION EXP. APR, 29.1'.)('6
, .
'. .
ATTACHMENT "A"
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through federal funds, all parties agree to comply with the
following statutes, regulations and executive orders, as they apply. These requirements are incorporated herein by
reference.
1. Freedom of Information and Privacy Acts
- Freedom of Information Act (5 V.S.C. 552), and the Privacy Act of 1974 (5 U.S.C, 552a).
2. Equal Opportunity
- Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1;
- Title VIII ofthe Civil Rights Act of 1968 (42 U.S.C. 3601), as amended;
- Executive Order 11063, as amended by Executive Order 12259;
- Executive Orders 11246, 11265, 12138 and 12432;
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S,C. 170), as amended;
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended;
- The Age Discrimination Act of 1975 (42 U,S,C. 6101);
- The Fair Housing Amendments Act of 1988.
3. Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq);
- The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508);
- Environmental Review Procedures (24 CFR Part 58);
- National Historic Preservation Act of 1966.
- National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973.
4, Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U,S.C. 4801, et seq) as amended through H.C.D.
Act of 1992;
- HUD Lead Based Paint Regulations (24 CFR Part 35).
5. Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M);
- U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos Regulations
(29 CFR 19L1101).
6. Handicapped Accessibility
- Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41),
7, Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended;
. - The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333);
- Federal Labor Standards Provisions (29 CFR Part 5.5).
8. Community Development Block Grant Regulations (24 CFR Part 570).
ADDITIONALLY, ALL PARTIES AGREE TO COMPL Y WITH ALL EXISTING FEDERAL, STATE AND LOCAL
LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
12