HomeMy WebLinkAbout2003-25321 Reso
RESOLUTION NO. 2003-25321
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A FOURTH AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT,
DATED JUNE 6, 2001, BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING
$364,331 IN HOME PROGRAM FUNDS FROM A HOME PROGRAM
NOTICE OF FUNDING AVAILABILITY (NOFA) UTILIZING FUNDS FROM
FISCAL YEAR 2001/02, TOWARDS THE COST OF THE REHABILITATION
OF A BUILDING, LOCATED AT 532 MICHIGAN AVENUE, MIAMI BEACH,
TO PROVIDE EIGHTEEN RENTAL UNITS FOR INCOME-ELIGIBLE
ELDERLY RESIDENTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
WHEREAS, the City has established a HOME Investment Partnerships Program
(HOME Program) under the rules of the U.S. Department of Housing and Urban
Development (HUD), which provides financial assistance for the purpose of providing
affordable housing within the City; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution
No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC)
as a qualified Community Housing Development Organization (CHDO) under the HOME
Program; and
WHEREAS, the City has determined the necessity for providing affordable housing
in the City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1,
1998, and its One-Year Action Plan for Federal Funds for Fiscal Year 2001/2002, adopted
by Resolution No. 2001-24517 on July 18, 2001, as amended; and
WHEREAS, on June 6, 2001, the City adopted Resolution No. 2001-24453,
authorizing a HOME Program Agreement between the City and MBCDC to provide
$328,987 of HOME Program funds for the acquisition and rehabilitation of an apartment
building located at 532 Michigan Avenue, Miami Beach; and
WHEREAS, on February 20,2002, the City adopted Resolution No. 2002-24748,
authorizing a First Amendment to a HOME Program Agreement with the with Owner to
utilize $614,913 of the previously committed fiscal year 2001/02 CHDO funds for a CHDO
project to acquire and rehabilitate an apartment building located at 532 Michigan Avenue;
and
WHEREAS, on May 29, 2002, the City adopted Resolution No. 2002-24863,
replacing the previously committed $614,913 HOME Program funds from Fiscal Year
2001/02 with $614,913 in HOME Program funds from fiscal years 1992/1993 and fiscal
years 1993/1994; and
WHEREAS, on November 13, 2002, the City adopted Resolution No. 2002-25058
authorizing a Third Amendment to the HOME Program Agreement, dated June 6, 2001,
between the City and MBCDC to provide $208,777 of HOME Program funds for the
acquisition and rehabilitation of the property; and
WHEREAS, on February 3, 2003, the City issued a HOME Program Notice of
Funding Availability (NOFA) in the amount of $673,800 from fiscal year 2002/03 for the
acquisition and/or rehabilitation of multi-family rental buildings or scattered sites for the
purpose of providing affordable rental housing and MBCDC submitted an application for
HOME Program funds to be used towards the rehabilitation of the property located at 532
Michigan Avenue, Miami Beach; and
WHEREAS, on May 30,2003, the Loan Review Committee recommended $364,331
HOME Program funds from the HOME Program NOFA for fiscal year 2002/2003 for the
rehabilitation of the apartment building, located at 532 Michigan Avenue, Miami Beach, to
provide eighteen (18) rental units for income-eligible elderly residents in accordance with
the HOME Program requirements; and
WHEREAS, on August 1, 2003, the Loan Review Committee recommended that the
Mayor and City Commission approve exchanging the $760,000 HOME Program funds from
fiscal year 2001/02, that were previously reserved for Housing Authority of the City of
Miami Beach for the Single Parent Family Housing and Resource; such that, the HOME
Program funds from fiscal year 2001/02 will be utilized to substitute funding for the fiscal
year 2002/03 HOME Program NOFA and other eligible housing activities; 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 hereby authorized to execute a fourth amendment to the HOME Investment
Partnerships (HOME) Program Agreement, dated June 6, 2001, between the City and
Miami Beach Community Development Corporation (MBCDC), providing $364,331 in
HOME Program funds from a HOME Program Notice Of Funding Availability (NOFA)
utilizing funds from fiscal year 2001/02, towards the cost of the rehabilitation of a building
located at 532 Michigan Avenue, Miami Beach, to provide eighteen rental units for income-
eligible elderly residents in accordance with the HOME Program requirements.
PASSED AND ADOPTED THIS 10th day of September ,2003
ATTEST:
);:l!IIt..' /I ,6WL??-
V,!p~MA I /
F:\NEIG\HSG-CD\SUSAN\MBCDC\MBCDC Renlal_ Current\532MICH\Commission\532 Michigan Ave '~~~d_r~solution.dOC
APPROVED ASTO
FORM'" LANGUAGl!
... FOREXECUTlOM
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A resolution providing $364,331 in HOME Program funds to MBCDC from a HOME Program Notice of
Funding Availability (NOFA) utilizing funds from fiscal year 2001/02 towards the cost of rehabilitation of an
apartment buildina located at 532 Michiaan Avenue.
Issue:
Shall the City provide to MBCDC $364,331 in HOME Program funds from a HOME Program NOFA utilizing
funds from fiscal year 2001/02 towards the cost of rehabilitation of an apartment building located at 532
Michigan Avenue to provide eighteen rental units for income-eligible elderly residents in accordance with
the HOME Program requirements.
Item Summa IRecommendation:
Execution of a Fourth Amendment to the HOME Investment Partnerships (HOME) Program Agreement,
dated June 6, 2001, between the City and Miami Beach Community Development Corporation (MBCDC),
providing $364,331 in HOME Program funds from a HOME Program NOFA utilizing funds from fiscal year
2001/02, towards the cost of the rehabilitation of a building, located at 532 Michigan Avenue, Miami Beach,
to provide eighteen rental units for income-eligible elderly residents in accordance with the HOME Program
requirements. Subsequent additional City funding was provided for the rehabilitation of the property and in
order for MBCDC to initiate the rocess of levera in additional funds from other sources.
Advisory Board Recommendation:
On May 30, 2003, the Loan Review Committed (LRC) recommended that the City approve $364,331
HOME Program funds to MBCDC from the 2002/2003 HOME Program NO FA for the rehabilitation of the
apartment building at 532 Michigan Avenue. On August 1, 2003, the LRC recommended that the City
approve utilizing HOME Program funds from fiscal year 2001/02 to substitute funding for the fiscal year
2002/03 HOME Program NOF A in order to formally commit all fiscal year 2001/02 HOME Program funds by
Seotember 30, 2003.
Financial Information:
Source of Amount Account Approved
Funds: 1 $364,331 151.5231
2
HOME 3
Program 4
Finance Dept. Total $364,331
Ci Clerk's Office Le islative Trackin
Vivian P. Guzman
Si n-Offs:
DepartrnentDirector
City Manager
City Manager
AGENDA ITEM
DATE
C1D
1-10-0'3
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
WNW.mlamibeachfi.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Date: September 10, 2003
Jorge M. Gonzalez ~
City Manager Ot)/l~
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A FOURTH AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT,
DATED JUNE 6, 2001, BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING
$364,331 IN HOME PROGRAM FUNDS FROM A HOME PROGRAM
NOTICE OF FUNDING AVAILABILITY (NOFA) UTILIZING FUNDS FROM
FISCAL YEAR 2001/02, TOWARDS THE COST OF THE REHABILITATION
OF A BUILDING, LOCATED AT 532 MICHIGAN AVENUE, MIAMI BEACH,
TO PROVIDE EIGHTEEN RENTAL UNITS FOR INCOME-ELIGIBLE
ELDERLY RESIDENTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On June 6. 2001, the City Commission adopted Resolution No. 2001-24453 authorizing the
execution of a HOME Program Agreement with MBCDC, providing $328,987 of HOME
Program funds for the acquisition and rehabilitation of an apartment building, located at
532 Michigan Avenue, to provide eighteen rental units for income-eligible elderly residents
in accordance with the HOME Program requirements. On August 23, 2001, MBCDC
purchased the two-story concrete and masonry structure located at 532 Michigan Avenue,
Miami Beach. Subsequent additional City funding was provided for the rehabilitation of the
property and in order for MBCDC to initiate the process of leveraging additional funds from
other sources for the rehabilitation of the building.
On February 3, 2003, the City issued a HOME Program Notice of Funding Availability
(NOFA) in the amount of $673,800 from fiscal year 2002/03 for the acquisition and/or
rehabilitation of multi-family rental buildings or scattered sites for the purpose of providing
affordable rental housing. In response to the HOME Program NOFA, MBCDC submitted
an application for $364,331 in HOME Program funds to complete the process of securing
the funds needed for the rehabilitation of the property located at 532 Michigan Avenue. In
addition to the HOME funds provided by the City, MBCDC has successfully secured
$500,000 from the Miami-Dade County Documentary Surtax Program, $200,000 from the
Commission Memorandum
532 Michigan A venue Fourth Amendment
Page 2 of 3
Federal Home Loan Bank, and private financing for the rehabilitation of the building. The
total cost of the project is estimated to be $2,372,821, or $213 per square foot.
The structure was built in 1925, consists of approximately 11,122 square feet and is
configured into 22 apartments. MBCDC is proposing to make two units handicap
accessible as required by the Americans with Disabilities Act. The resulting reconfiguration
will provide 14 one-bedroom units and 4 efficiency units. The structural engineer's report
stated that no major structural deficiencies were found. The floor grade ofthe first level of
the building is below the base floodplain elevation required by the Federal Emergency
Management Agency (FEMA) of 8 feet above NGVD. MBCDC will be required to comply
with the provisions of the City's Flood Plain Management Ordinance 92-2822 to obtain
appropriate permits and variances, if required. MBCDC is required to provide these rental
units to income-eligible elderly residents for a minimum period of fifteen years after the
rehabilitation of the building is complete and has offered to extend the affordability period
for an additional five years making the units available to income-eligible elderly participants
for a total of twenty years.
The proposed scope of work, based on a preliminary evaluation, includes the following:
replace wall mounted NC units with a central HV.A.C. system, replace electrical system,
repair or replace existing windows, provide new kitchenettes, refurbish/replace bathroom
fixtures, refinish wood finishes, provide A.D.A. accessibility as required, upgrade fire alarm
and detection system, refinish/re-plaster ceiling and wall areas as needed, provide an
elevator, re-Iandscape entry, and provide security features as necessary. The building is
currently vacant and no residents will be relocated.
In accordance with the terms ofthe HOME Program NOFA, applications were reviewed by
City staff for completeness and compliance with the terms of the HOME Program NOFA
and the HOME Program requirements. On May 30, 2003, the Loan Review Committee
(LRC) recommended $364,331 HOME Program funds from the HOME Program NOFA for
the rehabilitation of the apartment building at 532 Michigan Avenue.
The funding for this project is an exchange of a previous reservation of HOME Program
funds from fiscal year 2001/2002 (Resolution No. 2002-24863, adopted by the City on May
29, 2002) in the amount of $760,000 for the Housing Authority of the City of Miami Beach
(HACOMB) for the proposed Single Parent Family Housing and Resource Center to be
located at 321-327 Michigan Avenue. On July 29, 2003, the HACOMB Board of
Commissioners decided to move forward with this project by resubmitting the plans to the
Design Review Board in October 2003 and to continue pursuing the permitting process that
is now expected to be completed by December 2003. On August 1, 2003, the LRC
recommended that the Mayor and City Commission approve exchanging the $760,000 in
HOME Program funds from fiscal year 2001/02, that were previously reserved for
HACOMB, for newer HOME Program funds. Therefore, in order to formally commit all
fiscal year 2001/02 HOME Program funds by September 30,2003, in accordance with the
HOME Program regulations, the HOME Program funds previously reserved for HACOMB
will be utilized to substitute funding for the fiscal year 2002/03 HOME Program NOFA and
other housing activities. Simultaneously, a reservation of HOME Program funds in the
amount of $760,000 will be made for HACOMB from fiscal year 2002/03 and future fiscal
years.
. .
Commission Memorandum
532 Michigan A venue Fourth Amendment
Page 3 of 3
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida, authorize the Mayor and City Clerk to execute a Fourth Amendment to the
HOME Investment Partnerships (HOME) Program Agreement, dated June 6, 2001,
between the City and Miami Beach Community Development Corporation (MBCDC),
providing $364,331 in HOME Program funds from a HOME Program Notice of Funding
Availability (NOFA) utilizing funds from fiscal year 2001/02, towards the cost of the
rehabilitation of a building, located at 532 Michigan Avenue, Miami Beach, to provide
eighteen rental units for income-eligible elderly residents in accordance with the HOME
Pro ram requirements.
/JRlMDC/SSL
, .
FOURTH AMENDMENT TO HOME PROGRAM AGREEMENT
THIS FOURTH AMENDMENT TO THE AGREEMENT, entered into this /l"day of S~~
2003, by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having
its principal office at 1700 Convention Center Drive, Miami Beach, Florida, (City), and MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit
Corporation, with offices located at 945 Pennsylvania Avenue, Miami Beach, Florida
(hereinafter referred to as Owner).
WITNESSETH:
WHEREAS, on June 6, 2001, the City adopted Resolution No. 2001-24453, authorizing
a HOME Program Agreement with Owner which committed $328,987 from the City's fiscal
year 2000/2001 HOME Program allocation for eligible CHDO projects; and
WHEREAS, on February 20, 2002, the City adopted Resolution No. 2002-24748,
authorizing a First Amendment to a HOME Program Agreement with the with Owner to utilize
$614,913 of the previously committed fiscal year 2001/02 CHDO funds for a CHDO project to
acquire and rehabilitate an apartment building located at 532 Michigan Avenue; and
WHEREAS, on May 29, 2002, the City adopted Resolution No. 2002-24863,
authorizing a Second Amendment to a HOME Program Agreement amending the City's One-
Year Action Plan for Federal Funds for Fiscal Year 2001/02 by reallocating $760,000 of
HOME Investment Partnerships (HOME) Program Funds from Fiscal Years 1992/93 and
1993/94 previously committed to the Housing Authority of the City of Miami Beach (HACOMB)
for the development of a Single Parent Family Housing And Resource Center that was to be
built at 1231-1251 17th Street; and
WHEREAS, on May 29, 2002, the City adopted Resolution No. 2002-24863,
authorizing the same Second Amendment to the HOME Program Agreement, dated June 6,
2001, between the City and Owner, replacing the previously committed $614,913 of HOME
Program funds from Fiscal Year 2001/02 CHDO Funds with $614,913 in HOME Program
Funds from Fiscal Years 1992/93 and 1993/94 previously committed to the Housing Authority
of the City of Miami Beach (HACOMB) toward the costs of acquisition and rehabilitation an
apartment building located at 532 Michigan Avenue; and
WHEREAS, on February 3, 2003, the City issued a HOME Program Notice of Funding
Availability (NOFA) in the amount of $673,800 from fiscal year 2002/03 for the acquisition
and/or rehabilitation of multi-family rental buildings or scattered sites for the purpose of
providing affordable rental housing and MBCDC submitted an application for HOME Program
funds to be used towards the rehabilitation of the property located at 532 Michigan Avenue,
Miami Beach.
WHEREAS, on May 30,2003, the Loan Review Committee recommended $364,331
HOME Program funds from the HOME Program NOFA for fiscal year 2002/2003 for the
rehabilitation of the apartment building, located at 532 Michigan Avenue, Miami Beach, to
- 1 -
~
. .
provide eighteen (18) rental units for income-eligible elderly residents in accordance with the
HOME Program requirements; and
WHEREAS, on August 1, 2003, the Loan Review Committee recommended that the
Mayor and City Commission approve exchanging the $760,000 HOME Program funds from
fiscal year 2001/02, that were previously reserved for Housing Authority of the City of Miami
Beach for the Single Parent Family Housing and Resource; such that, the HOME Program
funds from fiscal year 2001/02 will be utilized to substitute funding for the fiscal year 2002/03
HOME Program NOFA and other eligible housing activities; and
WHEREAS, Owner warrants and represents that it possesses the legal authority to
enter into this Agreement, by way of a resolution that has been duly adopted as an official act
of the Board of Directors, authorizing the execution of this Agreement, including all
understandings and assurances contained herein, and authorizing the person(s) identified as
their official representative(s) to execute this Agreement and any other documents which may
be necessary to implement this project; and
WHEREAS, the City and the Owner now wish to amend the Agreement.
NOW, THEREFORE, in consideration of the promises and of the mutual covenants
and agreements hereinafter set forth, the parties hereto do hereby agree as follows;
1. In all references throughout the Agreement, the 15-year affordability period is replaced
by the 20-yearaffordability period.
2. In all references throughout the Agreement, the minimum of 18 rental units is replaced
with 18 rental units.
3. ARTICLE II, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in
its entirety and amended as follows:
In consideration of the performance by Owner of its role and responsibilities set
forth in this Agreement, the City agrees to provide a conditional grant of HOME
Program funds to Owner in the amount of One Million One Hundred Fifty-Two
Thousand Six Hundred Seventy-Seven Dollars ($1,517,008) (Funds) which consists of
$208,777 of HOME Program Funds from the Fiscal Year 2001/02 HOME Program
NOFA, $614,913 of HOME Investment Partnerships (HOME) Program Funds from
Fiscal Years 1992/93 and 1993/94 previously committed to the Housing Authority of
the City of Miami Beach (HACOMB), $328,987 of previously allocated Fiscal Year
2000/01 CHDO set-aside funds, and $364,331 of HOME Investment Partnerships
(HOME) Program funds from Fiscal Year 2001/02.
4. ARTICLE VI, DISBURSEMENT OF FUNDS, page 5, sentence (1) is deleted and
replaced by the following sentence:
The Funds shall be used by Owner for acquisition and rehabilitation of real property,
and related soft costs.
- 2 -
. .
5. ARTICLE XXX, LIMITATION OF LIABILITY, page 15, is hereby deleted in its entirety
and amended as follows:
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 sum of $1 ,517,008. 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 maximum amount of $1,517,008. Accordingly, and
notwithstanding any other term or condition of this Agreement, Owner hereby agrees
that the City shall not be liable to Owner for damages in an amount in excess of
$1,517,008 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 paragraph or elsewhere in this Agreement is in any way
intended to be a waiver of the limitation placed upon the City's liability as set forth in
Florida Statutes, Section 768.28.
6. ARTICLE XXXIV, NOTICES, page 16, the address of the Owner is hereby changed to
read as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive, 3rd Floor
Miami Beach, FL 33139
Attn: (1) City Attorney's Office
and (2) Housing and Community Development Division Director
If to Owner:
Roberto Datorre, President
Miami Beach Community Development Corporation
945 Pennsylvania Avenue
Miami Beach, FL 33139
or to such address and to the attention of such other person as the City or Owner may
from time to time designate by the written notice to the other.
7. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the
revised EXHIBIT B TO FOURTH AMENDMENT TO HOME PROGRAM AGREEMENT,
BUDGET, reflecting the adjustments in the HOME Program funds from the City of
Miami Beach.
8. Except as amended by this Amendment, no term or condition of the Agreement shall
be modified and the same shall remain in full force and effect; provided, however, if
any revision of this Amendment is in conflict with, or inconsistent with, any information
in the Agreement, the provision contained in this Amendment shall govern and control.
9. This Amendment shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto.
-3-
IN WITNESS WHEREOF, the parties hereto executed this Amendment as ofthe day
and date first above written.
ATTEST:
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
t!L dr
/") -'1
,/,~h t< / /4// .
Secretary .
~~, i?r-esident
Authorized Signatory
ATTEST:
CITY OF MIAMI BEACH
a F ida M nicipal corporation
~k P~tk
F:\NEIG\HSG-CD\SUSAN\MBCDC\MBCDC Rental_Current\532MICH\Corrmission\532 MICHIGAN AVE AMEND AGREE 4.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~
~/)/tIJ
Date
IVETTE CHAVAARIA
MY COMMISSION # CC 908695
EXPIRES: February 8 2004
Bonded Thru Notaf'j Public U!1Cle~~'/rl"~'~,
-4-
. .
.
EXHIBIT B TO FOURTH AMENDMENT TO HOME PROGRAM AGREEMENT
SOURCES AND USES OF FUNDS
532 MICHIGAN AVENUE
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH HOME PROGRAM FUNDS $1,152,677
FIRST MORTGAGE FINANCING 155,813
MIAMI-DADE COUNTY SURTAX INCENTIVE POOL 500,000
FEDERAL HOME LOAN BANK 200,000
REQUESTED FROM CITY OF MIAMI BEACH HOME PROGRAM FUNDS 364,331
$2,372,821
USES OF FUNDS
ACQUISITION OF PROPERTY $850,000
PRE-DEVELOPMENT COSTS 233,633
REHABILITATION CONSTRUCTION 1,089,188
DEVELOPER'S FEE 150,000
CONSTRUCTION CONTINGENCIES 50,000
$2,372,821
- 5-