Resolution 2018-30551 RESOLUTION NO. 2018-30551
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO IDENTIFY A
MULTIFAMILY PROPERTY WITHIN THE CITY OF MIAMI BEACH BOUNDARIES
FOR USE AS AFFORDABLE HOUSING; AND AUTHORIZING THE CITY MANAGER
TO NEGOTIATE AND EXECUTE A PURCHASE AGREEMENT AND OTHER
PURCHASE CONTRACT DOCUMENTS FOR THE PROPERTY, FOR A TOTAL SUM
NOT TO EXCEED $1,079,000 (INCLUSIVE OF CLOSING COSTS), TO BE FUNDED
FROM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND HOME
INVESTMENT PARTNERSHIP (HOME) FUNDS, PROVIDED THAT SAID PURCHASE
AGREEMENT IS CONTINGENT UPON APPROVAL BY THE CITY COMMISSION;
AND FURTHER AUTHORIZING THE CITY MANAGER TO MAKE AN INITIAL
REFUNDABLE DEPOSIT, IN THE AMOUNT OF $1,000, TO SECURE THE
PROPERTY PENDING APPROVAL BY THE CITY COMMISSION.
WHEREAS, ensuring the availability of affordable housing has been identified as a priority
by the City; and
WHEREAS, while the City is moving forward on City-led projects that will create new
workforce housing units, the City's efforts are insufficient to meet the demand; and
WHEREAS, on July 2, 2018, the City Commission adopted Resolution No. 2018-30374,
approving, in part, the Third Amendment to the General Fund budget for fiscal year 2017-2018;
and
WHEREAS, this amendment appropriated $1,079,000 in the General Fund to be used for
the repayment of U.S. Department of Housing and Urban Development (HUD) Community
Development Block Grant (CDBG) funds and HOME Investment Partnership (HOME) funds, to
comply with the completed Office of the Inspector General Audit as recommended by the Letter
to Commission (580-2017) dated December 5, 2017; and
WHEREAS, in a letter dated August 6, 2018, the HUD Community Planning and
Development Division (CPD) provided wiring instructions for the reimbursement of these federal
funds; and
WHEREAS, the instructions explained that these federal funds will be returned to the City's
Line of Credit Control System (LOCOS); and
WHEREAS, these federal funds must be expended in compliance with HUD regulations;
and
WHEREAS, HUD requires its entitlement jurisdictions to ensure that funded activities are
carried out in the defined project scope and within the timeframe allowed; and
WHEREAS, the federal funds that will be returned to the City's line of credit may be used to
acquire, develop or rehabilitate affordable housing for households earning up to 80 percent of
Area Median Income (AMI); and
WHEREAS, in an effort to increase the supply of affordable housing and ensure timely
expenditure of these HUD funds, the Administration recommends that these federal funds be
used to purchase a multifamily property; and
WHEREAS, as the first step in the purchase process, the Administration recommends
authorizing the City Manager to identify and negotiate, and, if successful, execute a purchase
agreement and other related purchase documents for the property, including payment of an
initial deposit, in the amount of $1,000, provided that the purchase agreement is contingent
upon the approval, by the City Commission, of the transaction.
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
authorize the City Manager to identify a multifamily property within the City of Miami Beach
boundaries for use as affordable housing; and authorize the City Manager to negotiate and
execute a purchase agreement and other purchase contract documents for the property, for a
total sum not to exceed $1,079,000 (inclusive of closing costs), to be funded from Community
Development Block Grant (CDBG) funds and Home Investment Partnership (HOME) funds,
provided that said purchase agreement is contingent upon approval by the City Commission;
and further authorize the City Manager to make an initial refundable deposit, in the amount of
$1,000, to secure the property pending approval by the
City Commission.
Passed and adopted this /7 day of QGN/e�r , 2018.
ATTEST: A<C;L
Dan Gelber, Mayor
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Rafael E. Granado, Cit Clerk
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APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 17, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO IDENTIFY A
MULTIFAMILY PROPERTY WITHIN THE CITY OF MIAMI BEACH BOUNDARIES
FOR USE AS AFFORDABLE HOUSING; AND AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND EXECUTE A PURCHASE AGREEMENT AND
OTHER PURCHASE CONTRACT DOCUMENTS FOR THE PROPERTY. FOR A
TOTAL SUM NOT TO EXCEED $1,079,000 (INCLUSIVE OF CLOSING COSTS), TO
BE FUNDED FROM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDS AND HOME INVESTMENT PARTNERSHIP (HOME) FUNDS, PROVIDED
THAT SAID PURCHASE AGREEMENT IS CONTINGENT UPON APPROVAL BY
THE CITY COMMISSION; AND FURTHER AUTHORIZING THE CITY MANAGER
TO MAKE AN INITIAL REFUNDABLE DEPOSIT, IN THE AMOUNT OF $1,000, TO
SECURE THE PROPERTY PENDING APPROVAL BY THE CITY COMMISSION.
RECOMMENDATION
The Administration recommends approving the Resolution.
ANALYSIS
The availability of affordable housing has been a priority for the City and is critical to its economic
growth. The City's Comprehensive Plan, amended via Ordinance 2017-4147, established the goal of
creating and maintaining 6,300 affordable housing units to serve low- and moderate-income and
special needs households within its boundaries. While the City has been steadily, though slowly,
adding to its affordable housing stock from 2000 - 2011, the strengthening of the City's real estate
market coupled with the sharp reduction in housing funds from the state and federal government
curtailed this growth and no new City-sponsored units have been added since.
However, an opportunity to add to the City's affordable housing stock has materialized as a result of
the City's resolution of past compliance issues with the U. S. Department of Housing and Urban
Development (HUD). On July 2, 2018, the City Commission approved the Resolution No. 2018-
30374. This action appropriated $1,079,000 from the General Fund to be used for the repayment of
HUD grant funds to comply with the decision of the Office of the Inspector General Audit and
as recommended by Letter to Commission (580-2017)on December 5, 2017.
In its letter to the City of August 6, 2018, HUD's Community Planning and Development Division
(CPD) provided wiring instructions for the repayment of the federal funds. The instructions further
explained that these funds would return to the City's Line of Credit Control System(LOCCS) and be
available for expenditure by the City in compliance with expenditure rules and deadlines prescribed
Page 624 of 1637
by the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME)
programs.
HUD requires its entitlement jurisdictions to ensure that funded activities are carried out in the
defined project scope and within the timeframe allowed by each program and the fiscal year of funds
issuance.
Ensuring the availability of affordable housing has been identified as a priority by the City. While the
City is moving forward on City-led projects that will create new workforce housing units, the City's
efforts are insufficient to meet the demand or goal established in the City's Comprehensive Plan.
The funds that will be returned to the City's line of credit may be used to acquire, develop or
rehabilitate affordable housing for households earning up to 80 percent of area median income (AMI).
In an effort to increase the supply of affordable housing and ensure timely expenditure of these HUD
funds, the Administration recommends these funds be used to purchase a qualifying multifamily
property that can be acquired and made ready for tenancy solely with the available HUD funds. This
property, once acquired, would subsequently house income-eligible households drawn from the City's
affordable housing wait list.
CONCLUSION
The Administration recommends approval and authorization of the actions proposed above and
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
Legislative Tracking
Housing and Community Services
ATTACHMENTS:
Description
❑ Building Purchase Resolution
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