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RESOLUTION 92-20557 tI • RESOLUTION N° 92-20557 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE REVISED GUIDELINES FOR THE SINGLE—FAMILY REHABILITATION PROGRAM AND AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE GRANT AGREEMENTS AND OTHER DOCUMENTS RELATING TO THE PROGRAM. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: WHEREAS, the City Commission on April 10, 1991, approved the Guidelines for the Single-Family Rehabilitation Program; and WHEREAS, the City Commission on March 18, 1992 adopted a Program Description under the new HOME Investment Partnership Program, which included rehabilitation assistance to existing homeowners; and WHEREAS, the U. S. Department of Housing and Urban Development has now approved such Program Description submitted by the City; and WHEREAS, a need exists to revise these Guidelines, in order to identify that additional funding is available under the HOME Program, and to make those required revisions; and WHEREAS, the City Administration has revised the Guidelines and recommends their approval and adoption. NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Guidelines for the City of Miami Beach Single-Family Rehabilitation Program, as revised, are hereby approved and adopted. BE IT ALSO DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Clerk of the City of Miami Beach are hereby authorized and directed to execute Grant Agreements and other documents related to the Program, on behalf of the City of Miami Beach, for those applications approved by the City' s Loan Review Committee. PASSED AND ADOPTED THIS 22ND D, OF JULY, 111) A / 0 ........____ MAYOR ATTEST: FORD APPROVED ,, 55__p_i;T. _f. '----kto.ket, . e 4-k,i614 Ath &t,_,Lc., Z CITY CL K 0."'4410. (,6feir--___ By Date • GUIDELINES FOR THE CITY OF MIAMI BEACH SINGLE-FAMILY REHABILITATION PROGRAM SECTION I - DEFINITIONS City - The City of Miami Beach. Obligations of an Applicant are obligations owed to the City of Miami Beach; however, dealings will be with the City representatives as indicated in these Guidelines. p Economic and Community Development Department - The Department of the City designated to administer federal funds received from HUD, and to administer these Guidelines. Eligible Costs - Those rehabilitation costs, building permit or related fees as required by the work write-up to carry out the intended rehabilitation of the property, and as further defined in Section II . Family - An individual or two or more persons related by blood, marriage, operation of law, who occupy the same dwelling unit. or GeneralProperty Improvements Pro ert Im rovements (G. P. I . ) - Rehabilitation work to improve the condition of the property beyond what is required by the Minimum Rehabilitation Standards. Grant - Provision of public funds requiring no repayment. Hazardous Condition - A code violation that is an immediate, serious threat to the health and/or safety of the occupant of a dwelling unit. Housing QualityStandards - HUD' s Housing Quality Standards (see Section III) . HUD - The U. S. Department of Housing and Urban Development. Income - Theg ross amount received from all sources byevery person residing in the house including: wages, pension, Social Security, interest, rent, dividends, etc. Loan Review Committee - A five member committee appointed by the City, responsible for the review and approval of applications which will receive funding under the Program. ' 1 - A family whose gross income does not exceed 50 Low Income Family p ercent of the median income for Dade County, as determined by HUD. dditions Page 1 Words underlined are a Standards - The Rehabilitation minimum living standardswellin receiving that must be achieved for a single-family dwelling assistance under this Program, consisting of the City' s Property Maintenance Standards and the HUD' s Housing Quality Standards. (Emphasis mustgiven be to exterior improvements) . ' - A family whose gross income is between 51 Moderate Income Family percent and 80 percent of the median income for Dade County, as determined by HUD. The titleresidential property holder to a Owner-Occupant - ntainin one dwelling unit, in which the owner resides on a full co g time basis. Property Maintenance Standards - The City of Miami Beach Property Maintenance Standards. Rehabilitation - The repair of a structure or facilities in connection with a structure, and may include the provision of her facilities that are required by the Minimum sanitary or of Rehabilitation Standards. • propertyused only for dwelling purposes. No Residential - A , . allowed on the property. commercial or office activities are • - detached or attached residential unit Single Family Dwelling A designed for and occupied exclusively as a place of permanent habitation for one family, and contains a living room, kitchen area, bathroom(s) and bedroom(s) . administratively designated geographic part of the Target Area An admin Y Cit in which Community Development Block Grant activities are being carried out y and which contain slums and/or blighting conditions (see Target Area Map) . Work write-up - The itemization of all rehabilitation work to be s done on a property, including such directions and specifications for workmanship and materials as may be necessary for the job to be bid and constructed properly. Words underlined are additions Page 2 • SECTION II -DESCRIPTION OF PROGRAM 1. Purpose of the Program - To provide financial assistance to improve the physical appearance and the quality of housing in the North Shore Area of the City of Miami Beach (see target area map) , by enabling low and moderate income owner occupants, to rehabilitate their single-family homes. The property must be in need of rehabilitation in order to meet the Minimum Rehabilitation Standards as defined herein. The Applicant must be an individual or family who owns and occupies a single family dwelling. The Applicant must be either a low or moderate income family as defined herein. 2 . Type of Assistance - Approved Applicants will receive assistance in the form YPof direct grants. The assistance will be based on income of all family members residing in the house, and the extent of rehabilitation required: a. A Low Income Family will be eligible to receive a grant equal to one hundred percent (100%) of the total of the eligible costs of rehabilitation. b. A Moderate Income Family will be eligible to receive a grant equal to eighty percent (80%) of the total of the eligible costs of rehabilitation. c. In no case will the grant exceed $10, 000 per Applicant, except that if a roof or major structural work is required, the City may, subject to availability of funds, increase such limit up to $17 , 500. 3 . Source of Funds - Funds for the Program will be made available from either the Community Development Block Grant Program ( CDBG) , or the Home Investment Partnership Program (HOME) , and according to the appropriations made by the City Commission. Conditions of Assistance - As security for these obligations, 4 . the Applicant will be required to execute a Promissory Note a Mortgage, and a Truth in Lending Disclosure Statement, in form and substance satisfactory to the City. In case where the Applicant is married but only one spouse holds title to the property, the Applicant' s spouse will also be required to , execute the Mortgage. Applicants must maintain the property as their principal place of residence, and retain title to the same, for a period of not less than three (3) years from the date of the execution of the Promissory Note and the Mortgage. Words underlined are additions Page 3 three • (3) year period, the property must be Also during the kept ingood ood condition and repair, and no part of it should be removed or demolished. Any damage should be completed or restored promptly and in good and workmanlike manner. Any claims for labor performed and materials furnished to the property, should be paid when due. • changes will be made to Additionally, no cha the exterior of the q propertyduring that period, unless said changes are approved, in writing, by the Economic and Community Development Department. An Applicant who does notcomply with these provisions, during p y the conditional three (3) year period, will be required to repay the Citythe full amount of the assistance. 5. Eligibilityof an Applicant and the Property a. An Applicant must be the owner occupant of a single- family residential property , • which should be located in g the North Shore Target Area. The City reserves theright to accept applications from properties located in the vicinity of the target area. income must be no more The Applicant' s than 80 percent ( 8 0%) County. the median income for Dade y- c. The Applicant shall have evidence of title to the property to be rehabilitated. d. The Applicant shall have paid all due city, county, federal, and school taxes. theproperty, after rehabilitation, will not e. The value of family the mort_ e 1 imit f___or a single f y house under HUD' s insuring authority, as directed by the National Housing Act. To estimate the current value of the property, the assessed value, as determined by the Dade County Property_ Appraiser, will be considered. property must not have received assistance for f. The prop Y housing rehabilitation from the City, Dade County or HUD, during the previous five (5) years. g. The City must find the property to be in need of repairs to meet the Minimum Rehabilitation Standards. h. The property shall have no rental units. he ro ert must not be a waterfront property t which is,. defined as .a property built on lot s w. th oxo or m9 e Words underlined are additions Page 4 sides bounding a natural or artificial body of water, including any creek` canal, bay, or ocean. property j . ro The erty must conform to the requirements of the City Zoning Ordinance. 6 . Eligible Costs a. The cost of rehabilitation necessary to bring the property up to meet the Minimum Rehabilitation Standards. b. The cost of rehabilitation to correct or remove incipient violations including all physical conditions of the property which, if not repaired, would deteriorate into actual violation of the Minimum Rehabilitation Standards or the South Florida Building Code within two years. c. The cost of general property improvements (G.P. I . ) . Such work shall not be the major focus of the grant, and shall be less than 40% of the cost of rehabilitation. G.P. I . ' s may be included only if the minimum improvements required under a) and b) are satisfied first. d. The cost of rehabilitation to convert a property, if allowed by the City Zoning Ordinance, by increasing the number of rooms on the property. e. The cost of building permits and related fees required to carry out the proposed rehabilitation work, including but not limited to architectural and engineering fees. 7 . Ineligible Costs a. Any items not meeting the eligible cost requirements, as defined herein. b. Work so extensive as to be equivalent to new construction or reconstruction of the property. c. Excessive G.P. I. ' s which are inconsistent with the G.P. I. requirements stated above. (However, the owner may provide the difference with own funds) . d. The repair or construction of swimming pools. e. Materials, fixtures, equipment, or landscaping of a type or quality which substantially exceeds that customarily used in the City for properties of the same general type as the property to be rehabilitated. (However, the owner may provide the difference between the cost of such materials, fixtures, etc. , as he/she desires and as the Program will allow, with own funds) . Words underlined are additions Page 5 . work done prior to the approval of f. Anyreimbursement for verbally or in or contracted for, either v y the grant, oval of the grant by the City. writing, prior to the appy g judgement against the property payment of any lien or including back taxes. - the Applicant' s income requires Disbursement of the Grant If pP cost, the 8 . provides a portion of the total project . that he/she disbursed first. The City will applicant' s funds must be based Pp grant funds during the construction phase, disburse the and expenditures the percentage of work completed incurred,� s Building • is in compliance with the City provided it requirements and upon receipt proof of no t of Department outstanding liens. • - The Applicant icant must agree to carry out 9 . Accomplishment of Work Pp contract with a all rehabilitation work through written actor and let by him/her with the prior licensed contractor ' The Applicant may enter into such concurrence of the City. pP contract by negotiation without advertising g or competitive bidding. • - Representatives of HUD or the City shall 10. Inspection of Work . the work, and all have the right to examine and inspect • g ' equipment, and conditions of contracts, materials, payrolls,. relevant data pertaining to the work, including all employment and records. - All rehabilitation contracts must carry a 11. Warranty Repairs warranty repair from the contractor for one year, to correct such defects due to faulty materials, equipment or workmanship. 12 . Ineligible Contractors - The Applicant must not award any contract to any contractor or subcontractor, whom the Applicant has been advised is unacceptable for federally assisted contracts by HUD, or the City. Personnel - No member of the City 13 . Interest of City Administration, City Boards or City Committees, shall have any interest in the proceeds of this Program. 14 . ApplicableRegulations Laws and Re ulations - The Applicant must agree to by applicable all a licable City, State and Federal laws and regulations, including, but not limited to, the South Florida Building , Code the Zoning Ordinance, and the Property Maintenance Standards. Words underlined are additions Page 6 • SECTION III - HOUSING QUALITY STANDARDS Housing rehabilitated in this Program shall meet both the Performance Requirements and the Acceptability Criteria, set forth in this Section. 1. Sanitary Facilities a. Performance Requirement. The dwelling unit shall include its own sanitary facilities which are in proper operating condition, can be used in privacy, and are adequate for personal cleanliness and the disposal of human waste. b. Acceptability Criteria. A flush toilet in a separate, private room, a fixed basin with hot and cold running water, and a shower or tub with hot and cold running water shall be present in the dwelling unit, all in proper operating condition. These facilities shall utilize an approved public or private disposal system. 2 . Food Preparation and Refuse Disposal a. Performance Requirement. The dwelling unit shall contain suitable space and equipment to store, prepare, and serve foods in a sanitary manner. There shall be adequate facilities and services for the sanitary disposal of food wastes and refuse, including facilities for temporary storage where necessary (e.g. garbage cans) . b. Acceptability Criteria. The unit shall contain the following equipment in proper operating condition: cooking stove or range and a refrigerator of appropriate size for the unit and a kitchen with hot and cold running water. The sink shall drain into an approved public or private system. Adequate space for the storage, preparation and serving of food shall be provided. 3 . Space and Security a. Performance Requirement. The dwelling unit shall afford the family adequate space and security. b. Acceptability Criteria. A living room, kitchen area, and bathroom shall be present; and the dwelling unit shall contain at least one sleeping or living/sleeping room of appropriate size for each two persons. Exterior doors and windows accessible from outside the unit shall be lockable. Words underlined are additions Page 7 4 . Thermal Environment The dwelling unit shall have and a. Performance Requirement. T be capable of maintaining a thermal environment healthy for the human body. b. Acceptability Criteria. The dwelling unit shall contain n safe heating and/or cooling to each room in the dwelling assure a healthy appropriate for the climate to unit . • t. Unvented room heaters which burn gas, living environment. oil or kerosene are unacceptable. 5 . Illumination and Electricity • Each room shall have adequate a. Performance Requirement. ermit normal natural or artificial illumination to p indoor support the health and safety of activities and to PP shall be Sufficient electrical sourcess occupants. use of essential electrical appliance provided to permit while assuring safety from fire. • Criteria. Livingand sleeping rooms shall b. Acceptability , wall type light include at least one window. A ceiling or yp fixture shall be present and working in the bathroom and kitchen area. At least two electrical outlets, one of light, shall which may be an overhead be present and g operable in the living area, kitchen area, and each bedroom area. 6. Structure and Materials The dwelling a. Performance Requirement. unit shall be structurally sound as not to pose any threat to the health and safety e of the occupants and so as to protect the occupants from the environment. Criteria. Ceilings, walls, and floorsshall not have any serious defects such as Acceptability s severe bulging or g leaning, large holes, loose surface materials, severe buckling or noticeable movement under walking stress, • other serious damage. The roof structure missing parts or shall be firm and the roof shall be weathertight. The exterior or wall structure and exterior wall surface shall not have serious defects such as serious leaning, 'n sagging, cracks or holes, loose siding, or buckling, gg g, other serious damage. The condition and equipment of interior and exterior stairways, halls, porches, • walkwaY s etc. shall be such as not to present adanger of tripping or falling. Elevators shall be maintained in g safe and operating condition. Words underlined are additions Page 8 7 . Interior Air Quality a. Performance Requirement. The dwelling unit shall be free of pollutants in the air at levels which threaten the health of the occupants. b. Acceptability Criteria. The dwelling unit shall be free from dangerous levels of air pollution from carbon monoxide, sewer gas, fuel gas, dust, and other harmful air pollutants. Air circulation shall be adequate throughout the unit. Bathroom areas shall have at least one openable window or other adequate exhaust ventilation. 8 . Water Supply a. Performance Requirement. The water supply shall be free from contamination. b. Acceptability Criteria. The unit shall be served by an approved public or private sanitary water supply. 9 . Lead Based Paint a. Performance Requirement. The dwelling unit shall be in compliance with HUD Lead Based Paint regulations, 24 CFR Part 35, issued pursuant to the Lead Based Poisoning Prevention Act, 42 U. S.C. 4801. b. Acceptability Criteria. Same as Performance Requirement. 10. Access a. Performance Requirement. The dwelling unit shall be usable and capable of being maintained without unauthorized use of other private properties, and the building shall provide an alternate means of egress in case of fire. b. Acceptability Criteria. The dwelling unit shall be usable and capable of being maintained without unauthorized use of other private properties. The building shall provide an alternate means of egress in case of fire (such as fire stairs or egress through windows) . 11. Site and Neighborhood a. Performance Requirement. The site and neighborhood shall be reasonably free from disturbing noises and reverberations and other hazards to the health, safety, and general welfare of the occupants. Words underlined are additions Page 9 b. Acceptability Criteria. The site and neighborhood shall not be subject to serious adverse environmental conditions, natural or manmade, such as dangerous walks, steps, instability, flooding, poor drainage, septic tank back-ups, sewage hazards or mudslides; abnormal air pollution, smoke or dust; excessive noise, vibration, or vehicular traffic; excessive accumulations of trash, vermin or rodent infestation; or fire hazards. 12 . Sanitary Condition a. Performance Requirement. The unit and its equipment shall be in sanitary condition. b. Acceptability Criteria. The unit and its equipment shall be free of vermin and rodent infestation. 13 . Energy Efficient Performance Requirement. Caulking and weatherstripping are required as energy conserving improvements. Other appropriate energy conserving improvements such as insulation and storm windows must be accomplished as part of the rehabilitation under this Program, to the extent that the Program determines these improvements to be practicable, cost effective and financially feasible. Words underlined are additions Page 10 SECTION IV - LOAN REVIEW COMMITTEE 1. The Loan Review Committee shall consist of five (5) members as follows: a. City Manager or a designated representative of the City Manager' s Office; and b. City' s Finance Department Director; and c. Three members from different private Lending Institutions (federal or state regulated banking institution) with offices located in the City, appointed by the City Commission to serve for a one (1) year term. The members will elect a chairperson, who will serve at the will of the Committee. All meetings shall be called and set by the chairperson as needed, and shall be open to the public. Three (3) voting members shall constitute a quorum necessary to hold a meeting or take any action. The Community Development Director or a designated representative from the Economic and Community Development Department shall act as a direct liaison between the Applicant, the committee, and representatives of the City. 2 . The Loan Review Committee shall: a. Study applications and review the property qualifications and eligibility of the Applicant. b. If necessary, interview the Applicant to obtain additional information about the application. c. Evaluate applications and determine which ones shall receive approval (reservation of funds) and specify time frames and conditions for such commitment. d. Estimate the amount of public funding needed to assist selected applications. e. Periodically review these Guidelines and make recommendations to the City Commission for action. 3 . All resolutions, rules, and regulations, enacted by the City regarding membership, attendance, removal of members, voting and quorums, as amended from time to time, shall apply to the Loan Review Committee. Words underlined are additions Page 11 SECTION V - PROCESSING AN APPLICATION interested property owner must first request an interview 1. Any P P with the Economic and Community Development Department, and bring the documentation listed below. A copy of the documents will be made and held in confidence in a file. The information needed will be used to determine the eligibilityof the PP A licant and the property, and the type/level of assistance. a. Deed to the property. b. Most recent property tax bill, general tax and school tax and indication of payment. c. For all working members of the family: - the two (2) most recent payroll stub which indicates gross salary and deductions; - last two (2) years of tax returns, including all schedules and attachments. d. Year end mortgage statement, if property is mortgaged. e. Homeowners Insurance or Fire Hazard Insurance Policy. In addition, Flood Insurance, if required. f. Three (3) most recent Florida Power & Light bills. 2 . If a determination of eligibility is made, then the City will assist the Applicant, who must provide the following: a. Completed application form. b. Abstract of title or title report. c. Work write-up, describing the proposed rehabilitation. d. Itemized cost estimate for the proposed rehabilitation. e. Plans to scale, if required. 3 . The Economic and Community Development Department will review the application documents, inspect the property, and provide a recommendation for review by the Loan Review Committee. If the application is approved by the Loan Review Committee, the amount of grant assistance will then be determined and committed by the City. The rehabilitation work must be carried out by a licensed contractor through a written contract let by the Applicant Words underlined are additions Page 12 with thep rior concurrence of the City. The Applicant may enter into such contract by negotiation without advertising or competitive bidding. The Economic and Community Development Department will coordinate the execution of the grant documents. The Mayor and the City Clerk will execute the Grant Agreement on behalf of the City. The Applicant must also execute: a Mortgage, a Promissory Note and a Truth in Lending Disclosure Statement. 4 . The rehabilitation phase and disbursement of grant funds will then follow. Words underlined are additions Page 13 SECTION VI - TARGET AREA 87TH 85TH 77TH oefo- y� 67TH TRQNILLE ESr'LFN9DE RUE NOTRE CAME Words underlined are additions Page 14 GRANT AGREEMENT THIS AGREEMENT entered into this th day of _ 199 , byand between hereinafter referred to as "Owner" , who resides and is the legal at Miami of the property located Beach, Florida, hereinafter, "Property" , and the Cityof Miami Beach, a Florida municipal referred to as corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter referred to as "City" : WITNESSETH: mily Rehabilitation established a Single-Fa WHEREAS, the City has to rovide Program, hereinafter ref erred to as "Program" , designed p financial assistance to property owners of substandard single-family resid • ential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and of said program are set forth in the Guidelines WHEREAS, the policies P g for the Cityof Miami Beach Single-Family Rehabilitation Program hereinafter referred to as "Guidelines" , adopted by the City Commission on April 10, 1991, are deemedincorporated incor orated by reference and made a part of this Agreement; and properly WHEREAS, Owner hassubmitted an application for grant funds and agreed to rehabilitate said Property in accordance with the Program, and such application was approved by the City' s Loan Review Committee on 199 ; and WHEREAS, it 1g s acknowledged and agreed that funds utilized for payment to Owner derive from federal 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 Owner will be in compliance with all applicable provisions of Federal, State and local laws, statutes and regulations as they may apply to this Agreement. NOW, THEREFORE, the parties agree as follows: (1) Any amendments, alterations, or variations, will only be valid when theyhave been reduced to writing and duly signed by the parties. 2 The Cityshall have the sole responsibility and obligation of � of the Program and the Grant interpreting the intent and purpose g documents. (3) Rehabilitation of Property shall be done in accordance with the Guidelines and the applicable codes, ordinances and statutes of the City and Metropolitan Dade County. (4) In consideration for the performance of Owner of its duties and responsibilities set forth in this Agreement, the City agrees to reimburse Owner, in the form of joint checks to the Owner and Contractor, for rehabilitation expenditures not to exceed the sum of Dollars ($ ) , as the total of Grant and as further provided for herein. - 1 - is Owner that none of the obligations 5 It understood and agreed by be general ( ) assumed or created hereunder shall of the City Citynone of the same shall be enforceable obligations of the and City Any and a l l obligations, liabilities against the • hereunder, shall be limited to the and commitments of the City duty or Grant. No other fiscal, legal, equitable or contractualthis Gran y and Owner by executing is assumed by the City,obligation Agreement so agrees. indicated herein will be disbursed by the 6 The amount of the Grant as follows: Not ( ) issues a Notice to Proceed, and City, after Owner more often than twice a month, a payment equal to ninety percent (90%) of work completed and expenditures incurred in the previous period, provided the work is in compliance with the City' s Building Department requirements and upon receipt of proof of no ma in in (final) ten percent (10%) shall outstanding liens. The re g the com letion, approval and acceptance of the be paid upon P • all the governmental agencies and rehabilitation work by d receipt of s havingpauthoritie over the Property, an proof of no outstanding liens. (7) The City will require at the time of closing that a Promissory "Note) a Mortgage be executed and filed on the Note (the andNote and Mortgage ert for the amount of the Grant. Such Property, will be released at the end of three (3) years provided there are no violations of the conditions set forth therein. in the event that a default of this Agreement (8) It shall be deemed Owner, within three (3) years of the date of the execution of the the following:lowin : (1) transfers title of Property, Note, does any of g except to a which title is currently vested in . Owner jointly; p • • Owner, the surviving spouse retaining title surviving spouse of for the remainder or (2)of the three year period, fails to as his/her principal place of residence or (3) maintain Property / a surviving spouse his/her fails to maintain Property as principal place of residence for the remainder of the three years. "Transfer of title" shall mean the sale or other transfer of any kind or nature of Property. A transfer by operation of the death of the Owner and/or the surviving law, such as by spouse, "transfer of title", shall nottr be considered to be a that anyheir must retain title for the provided however, remainder of the three year period. (9) If Owner does not comply with any of the requirements of Paragraph 8 above, the City will declare the Grant to be a loan and Owner will pay interest on the unpaid principal amount of the Note from the date thereof, at the rate of Three percent (3 . 00%) per annum until paid. In the event a loan is declared, both the principal al of and interest on the Note will be payable on the first day of each month, in the number of equal installments, including the amortization of both principal and interest calculated as follows: 180 less the number of months which had expired from the date of the Note to the date of written notice from the City that the repayment is required. - 2 - declared,In the event a loan is it shall be the responsibility CityOwner of the monthly payment and the date o f the to notify ofpayment.the first ayment. Such payment shall be made in lawful money • at theprincipal office of the City or at of the United States such other place as shall be designated by the City. The City will also notify Owner of the amount of subsequent monthly payments, including the last payment. Owner may prepay at anytime all or any part of the principal without thepayment of penalties of the Note nalties or premiums. All payments on the Note shall be applied first to the interest then to the principal due on the Note, and due on the Note, and e remainin balance shall be applied to late charges, g , if any. th g in Paragraph 11 below, Except as provided all monthly installment paymentsthe due date thereof on the Note shall be credited as of t of interest because paid either before or without add ustmen after such due date. is declared, (11) In the event a loanif Owner fails to pay the due, and i f such interest on or principal amount of the Note whenin on the date the nextinstallment payment failure is existing under the Note becomes due and payable, the unpaid principal amount of the together to ether with accrued interest and late charges, shall become due and payable, at the option of the City without notice to the Owner. Failure of the City to exercise such option shall not constitute a waiver of such default. No default reason of nonpayment of any shall exist by required installment po of principal rinci al and interest so long as the amount of optional prepayments already madepursuant thereto equals or exceeds the amount of the required installments. If the interest on, and principal of, the Note are not paid during the first fifteen days of the calendar month which includes the due date, Owner shall a late charge of 4% per calendar month, or fraction pay the City g thereof, on the amount past due and remaining unpaid. If the Note is reduced judgment,to such judgment shall bear the statutory interest rate on judgments. (12) If suit is instituted by the City to recover on the Note, Owner agrees to pay all costs of such collection including reasonable attorney's fees and court costs. (13) For purposes of this Agreement and the documents referenced or incorporated within it, a default shall include without limitation, the following acts or events of Owner, or its agents, servants, employees, or contractors: (a) Owner's failure to (i) commence rehabilitation work within thirtY ( ) Y30 da s from the date of the Note, or (ii) diligently pursue and timely complete the rehabilitation of Propertywithin four (4) months from the date of the Note. Rehabilitation work shall be considered to have commenced and be in active progress when, in the opinion of the City's Economic and Community Development Department, a full complement of workmen and equipment is present at the site - 3 - materials and equipment into the to diligently incorporateworkingday, rou structure throughout the day on each full g weather permitting. • with applicable building, fire, (b) Owner' s failure to comply P and codes. housinglaws, rules, regulations life safety and (c) Owner' s default on any of the terms and conditions of the Note or Mortgage. (d) Owner's failure to maintain the required property insurance. Agreement or of the terms and e) Owner' s breach of this g laws, rules and ( the Guidelines or applicable conditions of regulations pertaining hereto which are referenced by this Agreement. satisfied (f) Claims of lien notor bonded-off, in accordance with Florida Statutes, within 60 days from the date of filing of any such lien. default as set forth in Paragraph 13 above, (14) In the event of a provide written notice of such default to Owner. I f City shall p isand satisfactorily cured within thirty the default not fully to Owner, to of the City mailing notice of such default• • (30) days it Manager or his/her authorized the full satisfaction of the City g period, this designee, at the expiration of said thirty (30) day p . be rmthe City's sole option and discretion, Agreement may, at y deemed automatically canceled and terminated and the City fully discharged , from anyand all liabilities, duties and terms arising including, but virtue of this Agreement, out of or accruing by not limited to the obligation to fund any unfunded portion of the Grant. default and termination as provided I n the event o f a above, the City shall additionally be entitled to bring any and all legal and/or equitable its which it deems to be in best interestCounty, Florida, in order to enforce the City's in Dade rig hts and remedies against the defaulting party. The shall City be entitled to recover all costs of such actions including a fee. To the extent allowed by law, the reasonable attorney' s defaulting party waives its right to jury trial and its right ht to bring permissive counterclaims against the City in any such action to the extent allowed by law. (16) Notices and demands: All notices, demands, correspondence and communications between the City and Owner shall be deemed sufficiently given iven under the terms of this Agreement if dispatched byregistered 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 - 4 - with a copy to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention:: Economic and Community Deve l. Dir. If to the Owner: Miami Beach, Florida 331 to the attention of such other person as or to such address and i or the Owner may from time to time designate nate by written the City notice to the others. willterminate upon disbursement of the final (17) This Agreement p 6 above, and the Grant, as set forth in Paragraph amount of the discharged from any and all Citywill then be automatically , g Owner, or liabilities and commitments hereunder to obligations, but Owner shall continue to be bound any other person or entity Note and Mortgage until the terms thereof are satisfied. by the g of One Dollar Owner for consideration ($1. 00) and other good, receipt separate and distinct consideration, of which valuable, p is herebyagrees to save and hold harmless, hereby acknowledged, g , indemnifythe City, its officers and employees from and protect any and all obligations, liabilities, commitments, actions, claims, causesaccruing b of action, suits or demand arising or accr g y virtue of this Agreement. City caused this Agreement to and the have IN WITNESS WHEREOF, Owner be duly executed the day and year first above written. OWNER WITNESS: CITY OF MIAMI BEACH BY: MAYOR ATTEST: CITY CLERK - 5 - • CITY OF MIAMI REACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 44,0S- Z, TO: Mayor Seymour Gelber and DATE: July 22 , 1992 Members of the City Commission FROM: Roger M. Cay City Manager l ' �L SUBJECT: REVISION OF THE GUIDELINES FOR THE CITY'S SINGLE-FAMILY REHABILITATION PROGRAM Administration Recommendation: To adopt the attached Resolution which approves the revised guidelines for the Single-Family Rehabilitation Program. Background: On April 10, 1991, the City Commission approved the Guidelines for the CDBG funded Single-Family Rehabilitation Program. The Economic and Community Development Department developed the program to provide grants to low and moderate income owners of properties located in Normandy Isle and North Shore. Since this program was initiated by the Economic and Community Development Department, the following has been accomplished: three (3) single-family homes have been rehabilitated, two (2) applicants have received a commitment for funding, and the staff is in the process of evaluating the needs of another 35 potential applicants. After the U. S. Department of Housing and Urban Development (HUD) announced the availability of funds under the new HOME Investment Partnership Program, the City Commission on March 18, 1992 adopted a HOME Program Description. The submission of the HOME application, which included rehabilitation assistance to existing homeowners, was also approved. HUD has now approved the Program Description submitted by the City. There is, however, a need to revise the Guidelines in order to incorporate the new funding and requirements under the HOME Program. In addition, minor revisions have been made to the Loan Review Committee (LRC) section of the guidelines, including the appointment of the City's Finance Director to fill the committee position previously designated for the Economic and Community Development Director. The LRC is the five member City-appointed body responsible for the review and approval of applications. AGENDA -77b' ITEM DATE J COMMISSION MEMO JULY 22 , 1992 PAGE 2 Analysis: In April of this year, the Department of Economic and Community Development, in anticipation of the funding to be received under the HOME Program, mailed approximately 180 letters to residents in the 1200 - 1600 blocks of Bay Drive, Biarritz Drive and 71st Street. As a response to our initiative, 35 homeowners from these blocks have requested assistance. Conclusion: Revising the Single-Family Rehabilitation Guidelines to incorporate the regulatory requirements of the HOME program will enable the City to address the requests for rehabilitation assistance received from the North Shore homeowners. Therefore, the Administration has revised these Guidelines to incorporate the necessary changes to accommodate the HOME program. This effort from the City will aid in reversing the decline in the North Shore neighborhoods. RMC/hsm UK I G I NAL RESOLUTION NO. 92-20557 ing and adopting the revised guidelines for the single-family ri,labilitation program and authorizing _... he Mayor and the City Clerk to execute grant agreements and other documents relating to the program.