Resolution 2018-30328RESOLUTION NO.
2018 -30328
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE RECAPTURE OF $52,094 OF
STATEWIDE HOUSING INITIATIVES PARTNERSHIP (SHIP) FUNDS,
PREVIOUSLY ALLOCATED TO MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION, FOR THE REHABILITATION OF THE JEFFERSON
APARTMENTS, AND REALLOCATING THESE SHIP FUNDS TO ANOTHER
ELIGIBLE HOMEOWNER ACTIVITY PURSUANT TO THE LOCAL HOUSING
ASSISTANCE PLAN.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act,
Chapter 92 -317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on
deeds to local governments for the development and maintenance of affordable housing; and
WHEREAS, the State Housing Initiatives Partnership (SHIP) Act, ss. 420.907- 420.9079,
Florida Statutes (1992), and Rule Chapter 67 -37, Florida Administrative Code, requires local
governments to develop a one -to three -year Local Housing Assistance Plan (LHAP) outlining
how funds will be used; and
WHEREAS, the LHAP for FY 2013 -2016 was approved via Resolution No. 2013 -28178 and
the LHAP for FY 2017 -2019 was approved via Resolution No. 2016 - 29364; and
WHEREAS, a minimum of 75 percent of the City's SHIP allocation must be expended in
construction - related activities; a minimum of 30 percent of overall funds must benefit
households earning up to 50 percent Area Median Income (AMI) or very low- income
households; and a minimum of 30 percent of overall funds must benefit households earning up
to 80 percent AMI or low- income households; and
WHEREAS, SHIP communities must submit an expenditure report by September 30 of
every year; and
WHEREAS, pursuant to Resolution No. 2015 - 29051, Miami Beach Community
Development Corporation (MBCDC) was awarded $135,464 for the rehabilitation of Jefferson
Apartments for the replacement of its roof, the replacement of an air conditioning unit located on
the roof, and upgrades and repairs to the nine units located on the building's third floor; and
WHEREAS, on July 11, 2016, MBCDC Jefferson Apartments executed two SHIP
agreements: 1) an Agreement in the amount of $109,093, utilizing FY 14/15 funds, with an
expiration date of May 31, 2017; and 2) an Agreement in the amount of $26,371, utilizing FY
15/16, with an expiration date of May 31, 2018; and
WHEREAS, on January 18, 2017, MBCDC Jefferson Apartments executed two (2)
documents entitled Amendment No. 1: extending the expenditure deadline for the FY 2014/2015
funds, in the amount of $109,093.15, to May 31, 2017; and one extending the expenditure
deadline for FY 2015/2016, in the amount of $26,371, to May 31, 2018; and
WHEREAS, MBCDC expended $83,370 of FY 2014/2015 funds with an expenditure
deadline of May 31, 2017 and completed part of the work scope; and
WHEREAS, the remaining FY14/15 funds, in the amount of $25,723.15, were meant to be
transferred to FY 2015/2016 for the remaining scope which included the rehabilitation of kitchen
cabinets in nine (9) units, in order to comply with State expenditure reporting guidelines; and
WHEREAS, on May 4, 2018, the City contacted MBCDC to execute two documents entitled
Amendment No. 2: one transferring $25,723.15 of FY 2014/2015 funds to FY 2015/2016; and
one extending the expenditure deadline for FY 15/16 from May 2018 to June 30, 2018; and
WHEREAS, MBCDC advised it was unable to expend funds with such short notice, and
upon the City offering an extension of time, MBCDC advised that they did not have the financial
capacity to advance payments towards additional capital projects at this time; and
WHEREAS, the Administration recommends the recapture of the balance of unexpended
funds, in the amount of $52,094, and the reallocation of these SHIP funds to an eligible
homeowner activity, such as first -time homebuyer assistance or homeowner rehabilitation,
pursuant to the Local Housing Assistance Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
the recapture of $52,094 of Statewide Housing Initiatives Partnership (SHIP) Funds, previously
allocated to Miami Beach Community Development Corporation for the rehabilitation of the
Jefferson Apartments, and reallocating these SHIP funds to another eligible homeowner activity
pursuant to the Local Housing Assistance Plan.
PASSED AND ADOPTED this day of 1;0/2
ATTEST:
, 2018.
Dan Gelber, a
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Rafael E. Granado, City Clerk
ORATED!
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City Attorney
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BEACH
Resolutions - C7 K
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 6, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND /OR AUTHORIZING THE
FOLLOWING ACTIONS: 1) RECAPTURING $52,094 OF STATEWIDE HOUSING
INITIATIVES PARTNERSHIP (SHIP) FUNDS PREVIOUSLY ALLOCATED TO MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION FOR THE
REHABILITATION OF THE JEFFERSON APARTMENTS AND 2) REALLOCATING
TO ANOTHER ELIGIBLE HOMEOWNER ACTIVITY.
RECOMMENDATION
Approve the resolution.
ANALYSIS
Background
The State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92 -317 of
Florida Sessions Laws, allocating a portion of documentary stamp taxes on deeds to local
governments for the development and maintenance of affordable housing. The State Housing
Initiatives Partnership (SHIP) Act, §420.907- 420.9079, Florida Statutes (1992), and Rule Chapter
67 -37, Florida Administrative Code, requires local governments to develop a one -to three -year Local
Housing Assistance Plan (LHAP) outlining how funds will be used. The LHAP also establishes the
maximum SHIP funds allowable for each programmatic strategy.
The City's LHAP's for FY 13 -16 and FY 17 -19 was approved via Resolution No. 2013 -28178 and
Resolution No. 2016- 29364, respectively. Approved strategies include: 1) Owner- Occupied
Rehabilitation; 2) Disaster Mitigation Recovery; 3) New Construction; 4) Purchase Assistance; 5)
Rental Housing Development; and 6) Acquisition /Rehabilitation.
The City must comply with the following SHIP statutory regulations on an annual basis: a minimum of
75 percent of the City's SHIP allocation must be expended in construction- related activities; a
minimum of 30 percent of overall funds must benefit households earning up to 50 percent Area
Median Income (AMI) or very low- income households; and a minimum of 30 percent of overall funds
must benefit households earning up to 80 percent AMI or low - income households. SHIP grantees
must submit an expenditure report to Florida Housing Finance Corporation by September 30th of
each year.
Analysis
Miami Beach Community Development (MBCDC) was awarded $135,464 in SHIP funds for the
rehabilitation of the Jefferson Apartments, an affordable housing property designated for low -, very-
low and extremely -low income elderly residents, via Resolution No. 2015 -29051 on June 10, 2015.
The scope of the work included: the replacement of its roof, the replacement of an air conditioning
unit located on the roof, and upgrades and repairs to the nine (9) units located on the building's third
Page 504 of 1103
floor.
On July 11, 2016, MBCDC executed two SHIP funding agreements: 1) an agreement for
$109,093.15 utilizing FY 14/15 funds with an expiration date of May 31, 2017; and 2) an agreement
for $26,371 utilizing FY 15/16 funds, with an expiration date of May 31, 2018. Expenditure deadlines
are aligned with State reporting guidelines to ensure compliance with program rules.
MBCDC expended $83,370 completing a portion of the project's scope of work, including the
replacement of the roof and HVAC units for nine (9) units, as delineated in the agreement for FY
14/15 funds. Unexpended funds in the amount of $25,723 were designated to complete the
rehabilitation of the kitchens in the nine (9) units on the third floor and were anticipated to be
transferred to FY 15/16 in order to comply with State reporting guidelines as well as to extend the
expenditure deadline from May 31, 2018 to June 30, 2018. The City subsequently prepared
amendments to the funding agreements in June 2017 for review and form approval by the Office of
the City Attorney.
On May 4, 2018, the City received the revised agreements from the Office of City Attorney and
contacted MBCDC to schedule the execution of both amendments. The City advised MBCDC that,
while the timeline was not practical because of the delay in approving the amendment, the City would
request an extension of the expenditure deadline to September 30, 2018. MBCDC staff responded
that they were unable to meet any expenditure deadlines for this fiscal year because they did not
have the financial capacity to advance payment towards additional capital projects at this time. The
City will amend all mortgages and necessary documents to reflect the actual amount expended by
MBCDC to ensure that the property remains affordable until 2048, the end of the affordability period.
In addition to the $25,723 in unexpended FY 14/15 funds, the City is recapturing $26,371 that
MBCDC is unable to expend for the rehabilitation of the kitchen cabinets in the nine (9) apartments in
the third floor. Please note that the Jefferson Apartments will not be eligible for additional SHIP funds
until the expiration of the affordability period in 2048.
In order to secure the ongoing use of the unexpended funds, the City would like to recapture the
unexpended funds and reallocate them to an eligible homeowner activity such as first time homebuyer
assistance and homeowner rehabilitation assistance. Both of these programs have waiting lists
comprised of income - eligible applicants.
CONCLUSION
The Administration recommends approval and authorization of the actions proposed above,
authorizing the City Manager to execute all required documents as delineated herein.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations
Amount 1 152 -0530- Account 1 $17,138
000343 -00
404 - 534 -00-
00 -00 -57210
Amount 2 152 -0530- Account 2 $34,956
000349 -00-
404- 534 -00-
00-00 -57210
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Legislative Tracking
Housing and Community Services
Page 506 of 1103