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Resolution 2019-30812 RESOLUTION NO, 2019-30812 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FY 2019, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM; APPROVING AND AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2013-2017 CONSOLIDATED PLAN TO: REALLOCATE $152,840.27 OF HOME FUNDS PREVIOUSLY ALLOCATED AS ENTITLEMENT FUNDS, PURSUANT TO THE ACTION PLAN FOR FY 2014 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017, TO THE HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH (HACMB); REALLOCATING $26,952.82 OF HOME FUNDS PREVIOUSLY ALLOCATED AS COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)SET-ASIDE, PURSUANT TO THE ACTION PLAN FOR FY 2016 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017, TO THE HACMB; REALLOCATING $120,206.91 OF HOME FUNDS PREVIOUSLY ALLOCATED TO THE PURCHASE OF THE ALLEN APARTMENTS PURSUANT TO THE ACTION PLAN FOR FY 2015 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013- 2017, TO THE HACMB; REALLOCATING $16,155.76 OF CDBG FUNDS PREVIOUSLY ALLOCATED TO PUBLIC SERVICES FOR FY 2017 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017,TO THE OFFICE OF HOUSING AND COMMUNITY SERVICES GROCERY PROGRAM; AND AUTHORIZING THE CITY MANAGER TO ISSUE A NOTICE OF A THIRTY(30)DAY PUBLIC COMMENT PERIOD FOR THESE PROGRAM FUNDS, AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATING TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS;(2)SUBMIT THE FOREGOING ONE- YEAR ACTION PLAN FOR FY 2019, THE REVISIONS TO THE 2014-2017 ONE- YEAR ACTION PLANS AND THE REVISION TO THE 2013-2017 CONSOLIDATED PLAN TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); (3) MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLANS AND THE CONSOLIDATED FIVE-YEAR PLAN, AND THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLANS); AND (4) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS. WHEREAS, the City is an entitlement recipient of Federal formula HUD grant programs as follows: Community Development Block Grant(CDBG)funds, and HOME Investment Partnerships (HOME) funds; and WHEREAS,the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, the One-Year Action Plan for Federal funds is a requirement under the U.S. Department of Housing and Urban Development (HUD) formula grant programs, including the CDBG and HOME Programs; and WHEREAS,the One-Year Action Plan for FY 2019 is based upon the City's Federal entitlement of$916,981 in CDBG funds and $587,853 in HOME funds; and WHEREAS, the planning phase was initiated by the City on February 27, 2019, with the issuance of two Requests for Proposals (RFP)for CDBG and HOME program funds, respectively; and WHEREAS, of six submissions received, one project is ineligible, and five projects are being recommended for full funding; and WHEREAS,the resulting CDBG recommendations are incorporated into the FY 2019 One-Year Action Plan as follows: $72,057.97 to the Office of Community Services for grocery assistance; $30,000 to the Police Athletic League for youth leadership program; $28,391.34 to the Boys and Girls Club of Miami-Dade for youth aftercare and summer programs;$7,097.84 to UNIDAD of Miami Beach for information and referral services to Miami Beach seniors; $200,000 to the Housing Authority of Miami Beach (HACMB) for emergency generator enhancements at Rebecca Towers North; $338,240.95 for an eligible project to be determined; and $183,396.20 for administrative allowance; and WHEREAS,the Administration believes that rehabilitation costs for the building that is currently being sought for acquisition with the$1,079,000 repayment to HUD will exceed this amount,and the unallocated CDBG funds in the amount of$338,240.95 may be needed to ensure that the acquired building can be properly rehabilitated; and WHEREAS, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.) for the provision of HUD fair housing services requirements; and WHEREAS,the resulting estimated HOME recommendations are incorporated into the FY 2019 One-Year Action Plan as follows:$58,785.30 for administrative allowance; and$529,067.70 for an eligible project to be determined; and WHEREAS,the HOME applications received for Capital Projects were not sufficient to expend all of the available funds and the Administration is evaluating the potential rehabilitation needs of the building yet to be acquired and may, if HOME subsidy limits allow, submit a request for the use of these funds after acquisition and if allowed; and WHEREAS, the Administration recommends the reallocation of the following funds to the Housing Authority of the City of Miami Beach for the rehabilitation of 841 80th St.: 1)$152,840.27 in HOME FY 2014 previously uncommitted entitlement funds; and 2)$120,206.91 in HOME FY 2015 funds previously committed to the acquisition of the Allen Apartments; and 3)$26,952.82 in HOME FY 2014 CHDO allocation; and WHEREAS,the Administration recommends the reallocation$16,155.76 in unspent CDBG FY 2017 Public Service funds to the City's grocery program; and WHEREAS, HUD has the right to change its CDBG or HOME award prior to final issuance, altering the recommendations, made above; therefore, the City will increase or decrease these recommendations, as necessary, in order to meet the percentage requirements for each program; and WHEREAS, the One-Year Action Plan for FY 2019 is being made available to the public for comment at a public meeting on May 23, 2019;and for a 30-day public review and comment period, from May 8, 2019 through June 7, 2019; and WHEREAS, CDBG funds have been primarily used to provide vital public services, housing activities, youth centers, and senior centers; and WHEREAS, HOME Program funds have been primarily used for affordable rental housing activities; and WHEREAS, the City is normally required to set-aside a minimum of 15% of its HOME funds allocation to a qualified Community Housing Development Organization (CHDO) project; however, on March 7, 2019, HUD sent notice that the Consolidated Appropriations Act of 2019 includes a provision suspending the 24-month commitment requirement for the CHDO set-aside funds through December 31, 2021; and WHEREAS,the City Manager is the HUD-designated agent for all formula grants, and executes the grant applications, agreements, and other applicable HUD documents on behalf of the City. 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 adopt the City's One-Year Action Plan for federal funds for Fiscal Year 2019, which includes the budgets for the Community Development Block Grant(CDBG)program and the Home Investment Partnerships (HOME) program; approve and authorize a Substantial Amendment to the City's 2013-2017 Consolidated Plan to: reallocate $152,840.27 of Home Investment Partnership (HOME) Funds previously allocated as entitlement funds, pursuant to the Action Plan for FY 2014 and the Five Year Consolidated Plan for FY 2013-2017,to the Housing Authority of the City of Miami Beach(HACMB); reallocate $26,952.82 of HOME funds previously allocated as Community Housing Development Organization (CHDO) set-aside, pursuant to the Action Plan for FY 2016 and the Five Year Consolidated Plan for FY 2013-2017, to the HACMB; reallocate $120,206.91 of HOME funds previously allocated to the purchase of the Allen Apartments pursuant to the Action Plan for FY 2015 and the Five Year Consolidated plan for FY 2013-2017,to the HACMB; reallocate$16,155.76 of CDBG funds previously allocated to public services for FY 2017 and the Five Year Consolidated Plan for FY 2013-2017, to the Office Of Housing And Community Services grocery program; and authorizing the City Manager to issue a thirty (30) day public comment period for these program funds, and authorize the City Manager to take the following actions: (1) execute all applicable documents related to the appropriation and allocation of these program funds; (2) submit the One- Year Action Plan for FY 2019, the revisions to the 2014-2017 One-Year Action Plans, and the revision to the 2013-2017 Consolidated Plan to the U.S. Department Of Housing And Urban Development (HUD); (3) make minor non-substantial changes to the foregoing One-Year Action Plans and the Five Year Consolidated Plan, and the resulting agreements (which do not affect the purpose, scope, approved budget and/or intent of the plans); and (4)extend the expiration dates of said agreements when necessary; and authorize the Mayor and City Clerk to execute agreements for sub-recipients of CDBG and HOME program funds; and further authorize the City Manager to execute city interdepartmental agreements for recipients of CDBG and HOME program funds. PASSED and ADOPTED this day of �j , 2019. � � .1, irr Air 0 b..rr� 7ayor ATTEST: ,�c�.'. .... a / � ; '`' * PPROV p., ED AS TO .INCORP ORATED: F,�RM & LANGUAGE Rafael E. Granado, City Clerk G ...-,z,,.! FO EXE UTION 7;v`-' 1' 4 \71 ) 1 1 �� �1 �;:>' City Attorney . ���M� sy �' Date Resolutions - C7 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 8, 2019 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FY 2019, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM; APPROVING AND AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2013-2017 CONSOLIDATED PLAN TO: REALLOCATE $152,840.27 OF HOME FUNDS PREVIOUSLY ALLOCATED AS ENTITLEMENT FUNDS, PURSUANT TO THE ACTION PLAN FOR FY 2014 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017, TO THE HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH (HACMB); REALLOCATING $26,952.82 OF HOME FUNDS PREVIOUSLY ALLOCATED AS COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) SET- ASIDE, PURSUANT TO THE ACTION PLAN FOR FY 2016 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017, TO THE HACMB; REALLOCATING $120,206.91 OF HOME FUNDS PREVIOUSLY ALLOCATED TO THE PURCHASE OF THE ALLEN APARTMENTS PURSUANT TO THE ACTION PLAN FOR FY 2015 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013- 2017, TO THE HACMB; REALLOCATING $16,155.76 OF CDBG FUNDS PREVIOUSLY ALLOCATED TO PUBLIC SERVICES FOR FY 2017 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY2013-2017, TO THE OFFICE OF HOUSING AND COMMUNITY SERVICES GROCERY PROGRAM; AND AUTHORIZING THE CITY MANAGER TO ISSUE A NOTICE OFA THIRTY (30) DAY PUBLIC COMMENT PERIOD FOR THESE PROGRAM FUNDS, AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATING TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE FOREGOING ONE- YEAR ACTION PLAN FOR FY 2019, THE REVISIONS TO THE 2014-2017 ONE- YEAR ACTION PLANS AND THE REVISION TO THE 2013-2017 CONSOLIDATED PLAN TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); (3) MAKE MINOR NON- SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLANS AND THE CONSOLIDATED FIVE-YEAR PLAN,AND THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET Page 309 of 1102 AND/OR INTENT OF THE PLANS); AND (4) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB- RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS. RECOMMENDATION Adopt the Resolution. ANALYSIS The Five-Year Consolidated Plan is a federal requirement for all U.S. Department of Housing and Urban Development (HUD) entitlement cities. The City of Miami Beach is a HUD-designated entitlement city as determined by the decennial census information on population growth lag, over- crowding, age of housing stock, and poverty. The City has been a Community Development Block Grant (CDBG) entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. HUD allocates these funds to strengthen public/private partnerships and expand the supply of affordable housing that is decent, safe and sanitary. As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD's grant programs. HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. CDBG funds have been primarily used to provide vital public services, housing activities and improvements to public facilities while HOME funds are primarily used for affordable rental housing activities. Fiscal Year 2019 Annual Allocation Community Development Block Grant Funds FY 2019 HUD Entitlement $916,981 Less administrative allowance (20%) ($183,396.20) Less Public Services allowance (15%) ($137,547.15) Net FY 2019 funds $596,037.65 HOME Funds FY2019 HUD Entitlement $587,853 Less administrative allowance (10%) ($58,785.30) Less 15% CHDO project set-aside ($88,177.95) Net available for project allocation $440,889.75 Page 310 of 1102 On January 28, 2019, the Administration issued two Request For Proposals (RFP) for CDBG and HOME funds, respectively. The submission deadline for both RFPs was February 27, 2019. To ensure clarification and proactively address questions relating to the completion and submission of the application, a mandatory pre-submission meeting was held on February 4, 2019 to review the RFP with prospective applicants. Staff reviewed the applications and forwarded its funding recommendations to the Affordable Housing Advisory Committee (AHAC) for comment and recommendation on March 19, 2019. The AHAC subsequently forwarded its recommendations to the City Manager who finalized the recommendations as noted below. In accordance with the Citizen Participation Plan: • The City advertised a Notice of Public hearing and Public 30-day Comment Period (April 8, 2019 — May 7, 2019)for community development needs. The public meeting was held on April 23, 2019. • The City advertised a Notice of Public hearing and 30-day Public Comment Period (May 8, 2019 — June 7, 2019)for the draft Action Plan and Substantial Amendment. The public meeting will be held on May 23, 2019. The City received six applications from the following entities: • Ayuda, Inc. • Boys and Girls Clubs of Miami-Dade, Inc. • Housing Authority of the City of Miami Beach • Miami Beach Police Athletic League • UNIDAD of Miami Beach, Inc. Of the six submissions, five projects are being recommended for full funding as illustrated below. The ineligible project, submitted by AYUDA, Inc., requested funding for a visitor's center, an activity not eligible for CDBG or HOME funding. The City is recommending full funding of the remaining eligible projects in addition to the City's grocery program serving elderly and low-income households. A maximum of 15 percent of the City's allocation, or $137,547.15, may fund public service activities. Public service activities include meals programs, rent assistance, child care programs, etc., for income-eligible participants. The following four (4) public service activities are recommended for full funding: Public Services Projects Amount Recommended CMB—Office of Community Services- Grocery Assistance Program $72,057.97 Police Athletic League—Youth Leaders Program $30,000.00 Boys and Girls Club of Miami-Dade-youth aftercare and summer programs $28,391.34 UNIDAD of Miami Beach - Project LINK $7,097.84 Total Public Service Allocations $137,547.15 CDBG FY 2019 funds were set aside for the City's grocery assistance program via Resolution 2019- 30700. The following unspent CDBG FY 2017 Public Service funds will be reallocated to the grocery program: Original Activity Amount Little Havana Activity and Nutritional Centers of Dade County- $15,533.00 Page 311 of 1102 Rainbow Intergenerational Child Care City of Miami Beach Community Services- Grocery Assistance $459.26 Program City of Miami Beach Community Services- Homeless Outreach Team $163.50 Total $16,155.76 In addition, two (2) applications were received for CDBG-funded capital projects from the Housing Authority of the City of Miami Beach (HACMB). Although the HACMB requested CDBG funds, we are recommending funding its rehabilitation project with HOME funds as the project more closely aligns to the City's Consolidated Plan and housing goals. CDBG will fund the generator replacement project proposed by HACMB. The applications received for Capital Projects are not sufficient to expend all of the available funds; $338,240.95 in CDBG will be pending allocation to eligible project(s). Please note that the Administration believes that rehabilitation costs for the building that is currently being sought for acquisition wit the $1,079,000 repayment to HUD will exceed currently available funds earmarked for this project. Therefore, the Administration believes that currently unallocated CDBG funds in the amount of $338,240.95 may be needed to ensure that the acquired building can be properly rehabilitated. FY 2019 CDBG Capital Project Amount Recommended Housing Authority of Miami Beach (Emergency Generator Enhancements $200,000 at Rebecca Towers North) Eligible Capital Project-To be determined upon building acquisition $338,240.95 In addition, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.) for the provision of HUD-mandated fair housing services. HOPE, Inc. would continue providing housing education workshops to residents and participate in outreach events citywide. HOPE, Inc. will also provide services to assist the City in complying with HUD-mandated Affirmatively Furthering Fair Housing (AFFH) and Analysis of Impediments (Al) requirements. Administration funds will fund this mandated service. Although not currently funded by the City for investigatory services, HOPE, Inc. also investigates allegations of Fair Housing Act violations on behalf of residents who believe they are victims of discrimination. The HACMB project to rehabilitate 841 80th St. in teh amount of$300,000 will be funded from prior year HOME funds recaptured via Resolution 2019-30700 as listed below: Original Activity Funding Source Recaptured Amount Previously uncommitted funds HOME Entitlement Funds FY 2014 $152,840.27 Acquisition of Allen Apartments HOME Entitlement Funds FY 2015 $120,206.91 CHDO allocation HOME CHDO funds FY 2016 $26,952.82 (Reprogrammed to Entitlement) $300,000.00 The HOME applications received for Capital Projects were not sufficient to expend all of the available funds. The City is evaluating the potential rehabilitation needs of the building yet to be acquired and may, if HOME subsidy limits allow, submit a request for the use of these funds after acquisition and if allowed. Page 312 of 1102 FY 2019 HOME Capital Projects Amount Eligible Project—To be determined $529,067.70 The HOME Program rules require each entitlement community reserve a minimum of 15% of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO). A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable•housing as its primary mission and has the capacity to develop affordable housing. A CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience. At this time, there is no such agency with this designation within the City. The City released a Request for Letters of Intent (RFLI) for CHDO services on June 21, 2018. No responses were received. However, on March 7, 2019, HUD sent notice that the Consolidated Appropriations Act of 2019 includes a provision suspending the 24- month commitment requirement for the CHDO set-aside funds through December 31, 2021. CONCLUSION The Administration recommends approval of the One-YearAction Plan for FY 2019 to allow the City to draw down entitlement funds to assist income-eligible persons with services and housing, and ensure the timely and compliant expenditure of HUD funds. The Administration further recommends approval of the proposed reallocation of funds, and the subsequent submission to HUD of the amended multiple year Action Plans and Consolidated Plan as amended herein, and authorizing the City Manager to execute all required documents herein. KEY INTENDED OUTCOMES SUPPORTED Build And Maintain Priority Infrastructure With Full Accountability Legislative Tracking Housing and Community Services ATTACHMENTS: Description o Resolution • Page 313 of 1102