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RESOLUTION 93-20860 •RESOLUTION NUMBER 9 3-2 0 8 6 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI BEACH DEVELOPMENT CORPORATION, (MBDC), A NOT-FOR-PROFIT FLORIDA CORPORATION, IN THE TOTAL FUNDING AMOUNT OF FOUR-HUNDRED FIFTY EIGHT THOUSAND THREE HUNDRED AND FIFTY DOLLARS ($458,350) IN HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS; OF WHICH TWO HUNDRED SEVENTY SEVEN THOUSAND ($277,000) SHALL BE PROVIDED FROM FISCAL YEAR(FY) 1992 HOME FUNDS, AND ONE HUNDRED EIGHTY ONE THOUSAND THREE HUNDRED AND FIFTY DOLLARS ($181,350) SHALL BE PROVIDED FROM FY 1993; FOR A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)-ELIGIBLE FAMILY RENTAL HOUSING PROGRAM AND/OR A HOUSING FOR PERSONS WITH SPECIAL NEEDS PROGRAM. WHEREAS, the City of Miami Beach received notification from the U.S. Department of Housing and Urban Development (HUD) that Miami Beach has been designated as a participating jurisdiction to receive $1,846,000 in FY 1992 funding through the HOME Investment Partnership Program; and WHEREAS, as a participating jurisdiction, the City of Miami Beach is also eligible to receive $1,209,000 in FY 1993 HOME funding; and WHEREAS, the HOME program is designed to expand the supply of decent and affordable housing and encourages partnerships with the private sector and nonprofit housing providers; and WHEREAS, in accordance with the HOME regulations, the City must reserve 15 percent of its FY 1992 and 15 percent of its FY 1993 allocation for investment in housing to be developed, sponsored or owned by Community Housing Development Organizations (CHDO); and WHEREAS, the regulations require that the City identify CHDO's within its area that are capable, or can reasonably be expected to become capable, of carrying out elements of the City's approved housing strategy; and WHEREAS,the Miami Beach Development Corporation, hereinafter referred to as the "Provider", represented that its current legal status, capacity, organizational structure and relationship with for-profit entities was such that as an organization it was eligible to be certified as a CHDO in accordance with HUD requirements and was so designated; and WHEREAS, the Mayor and City Commission deems it to be in the best interest of the residents and citizens of the City to enter into the attached Agreement with the Provider for provision of a family rental housing program and/or a housing program for persons with special needs; and WHEREAS, pursuant to such Agreement, the Provider will receive a total amount of Four-Hundred Fifty Eight Thousand Three Hundred Fifty Dollars ($458,350) in HOME funds of which Two Hundred Seventy Seven Thousand ($277,000) shall be provided from FY 1992 HOME funds, and One Hundred Eighty One Thousand Three Hundred and Fifty Dollars ($181,350) shall be provided from FY 1993; and WHEREAS, the aforestated HOME funds are conditional upon the approval for release of funds from HUD; and WHEREAS, the City Manager has recommended to the Mayor and City Commission that the attached Agreement be entered into and the City Attorney has reviewed same as to form and legal sufficiency. 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 the attached Agreement between the City of Miami Beach and the Miami Beach Development Corporation, a not-for-profit Florida corporation, in the total amount of Four-Hundred Fifty Eight Thousand Three Hundred Fifty Dollars ($458,350) in HOME funds of which Two Hundred Seventy Seven Thousand ($277,000) shall be provided from FY 1992 HOME funds, and One Hundred Eighty One Thousand Three Hundred and Fifty Dollars ($181,350) shall be provided from FY 1993 funds, for a CHDO-eligible family rental housing program and/or a housing program for persons with special needs. PASSED AND ADOPTED THIS 28th DAY OF July , 1993. RMC/AA/cmc ,ovir 10 "ATTEST: CITY CLERK FORM APPRO ED LEA I 'PT. Date —a.-1-1 1 3 • • CITY OF MIAMI BEACH 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. TO: Mayor Seymour Gelber and DATE: July 28, 1993 Members of the City Commission FROM: Roger M. C City Manager SUBJECT: FOUR(4)RESOLUTIONS AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE FOUR (4) INDIVIDUAL AGREEMENTS UNDER THE CITY'S HOME INVESTMENT PARTNERSHIP PROGRAM WITH FUNDS RECEIVED FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). ADMINISTRATION RECOMMENDATION: The Administration recommends that the Mayor and City Commission approve the attached four Resolutions and the related agreements necessary to undertake and implement HOME funded affordable housing activities: * Affordable Landmarks, Inc. - $1,250,000 for a new construction, affordable condominium homeownership program. * Miami Beach Development Corporation - $458,350 for family rental housing and/or housing for persons with special needs. * Miami Beach Development Corporation - $250,000 for a scattered site, first- time homebuyer program. * Miami Beach Development Corporation - $90,000 for operating expenses relative to Community Housing Development Organization (CHDO)-eligible activities. BACKGROUND: The HOME Program is designed to expand the supply of decent and affordable housing for low and moderate income residents. This program encourages the creation of partnerships between government and the private sector, including for-profit and non-profit corporations to construct, rehabilitate or manage affordable housing. As an entitlement recipient of these funds, the City has received a total of $3,055,000; of which $1,846,000 is from FY '92, and $1,209,000 from FY'93. On May 7, 1993, the City notified the public of the availability of HOME funds. The Administration has examined the five responses received and is now recommending that HOME funds be allotted for four (4) affordable housing activities at this time. An overview of the four proposals is contained in the Analysis section of this memorandum. With respect to the fifth proposal, a tenant-based rental assistance program, the Administration has identified and applied for a more appropriate source of funding. The applicant, Legal Services of Greater Miami, Inc., requested $500,000 in HOME funds to provide rental assistance payments to low- and very low-income persons for a period of up to 24 months. AGENDA ITEM DATE -2S- ?3 • COMMISSION MEMO JULY 28, 1993 PAGE 2 This project was reviewed by the City's Loan Review Committee (LRC). The LRC, a five member committee appointed by the City Commission which includes private lenders, did not recommend funding for this proposal under the HOME program. While both the Administration and the LRC recognized that tenant-based rental assistance is needed, an alternate source of funding was identified by the City. As a result, the City prepared and submitted a proposal to the John S. and James L. Knight Foundation for consideration on the December funding agenda. The grant request specifically addresses those needs cited in the tenant-based rental assistance proposal submitted by Legal Services, and offers an opportunity to assist low and very low income persons who are adversely affected by gentrification. The Administration will diligently pursue all avenues necessary to encourage funding of this grant request by the Knight Foundation. The City has been advised by HUD that all agreements for HOME funded projects must stipulate the date that the project will become operational, be substantially complete, and funds totally expended. As a general rule, fiscal prudence dictates that the term of agreement not normally exceed a two year period. This time frame is dictated on the premise that HOME funds must, by statute, be committed by the City within 24 months of grant award, and must be expended within five (5)years. Since all HOME funds are subject to recapture by HUD if not totally expended within the five year period, the agreements are designed to ensure project completion well in advance of this deadline. As a result, the City can monitor and evaluate the progress of each activity to ensure that performance standards are met,and funds expended within the HUD-prescribed time frame. Therefore, in the event that a provider is unable to carry out an activity, the City can use those funds for another affordable housing project. ANALYSIS: AFFORDABLE LANDMARKS, INC. New Construction-Homeownership $1,250,000 Affordable Landmarks, Inc. ("Affordable") is a Miami Beach based firm specializing in the development, acquisition, rehabilitation, construction and management of multi-family properties. Affordable is a Florida corporation which is 100% owned by Robert F. Saland. (Mr. Saland's resume is attached.) Affordable has acquired, developed, sponsored, and/or managed over 500 dwelling units valued in excess of $25 million, and has undertaken significant commercial and land development. The company presently focuses on development, and specializes in rehabilitation of historic structures, as well as condominium conversions. Affordable has extensive experience in such federal, state and local funding programs as the City's Interest Subsidy Program; CDBG Matching Grant Program; Florida State Apartment Incentive Loan Program (SAIL); State of Florida Tax Exempt Bond Program; and the Federal Low Income Housing Tax Credit Program. To date, Affordable has invested over $23 Million in Miami Beach properties, $8 Million of which were received from these programs. This combination of private and public dollars represents a significant investment in the construction or rehabilitation of affordable housing for Miami Beach residents. The proposed $7.5 million project, Bayview Plaza Condominiums, will be located two blocks west of Alton Road, at 14th Street. The building will be new construction containing approximately 100 units. The first three levels will provide the parking required for the condominium units. This building will offer one and two bedroom units, and will include a pool and fitness center as well as standard amenities. • COMMISSION MEMO JULY 28, 1993 PAGE 3 Affordable will provide $6,250,000 in private funds to match the public HOME monies totalling $1,250,000. Once completed, this public/private partnership between the City and the developer will increase the City's tax base and provide much needed newly constructed units in the heart of South Beach. Affordable will set aside twenty-five to thirty of the units for buyers earning 80% or less of the median area income. These units can only be set aside and made affordable in this new building through the infusion of HOME funds. The total $1,250,000 will eventually be returned to the City for use in other affordable housing activities, since buyers will be required to execute deed restrictions which stipulate that at the time of resale, the initial HOME investment will be repaid in accordance with all applicable federal regulations. This project has been reviewed by, and recommended for funding by the City's Loan Review Committee. MIAMI BEACH DEVELOPMENT CORPORATION CHDO Set-aside (FY '92 and '93) $458,350 Under HOME rules, not less than 15% of the total annual allocation of funds must be reserved for investment in housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDO). The Mayor and City Commission recently designated MBDC as a CHDO. As a result, MBDC is eligible to receive a total of $458,350; of which $277,000 is from the FY '92 HOME program allocation, and $181,350 is from FY '93. These funds must now be reserved for investment by MBDC in CHDO-eligible acquisition, construction, and rehabilitation activities which promote affordable rental or ownership housing. MBDC is proposing to undertake the following activities with its CHDO set-asides: Family Rental Housing: MBDC will acquire, rehabilitate and/or re-configure existing buildings to make them suitable for rental family housing. Through this activity, MBDC will continue to work in cooperation with the FIU Institute on Children and Families at Risk and with the RAIN Mothers at Fisher-Feinberg Elementary School in order to provide affordable housing opportunities for 12 families otherwise threatened by gentrification of this South Beach neighborhood. Housing for Special Needs Populations: MBDC has identified the need for increased housing opportunities for persons with special needs. Rental projects will be developed in concert with other community-based health and social service organizations to provide housing for persons living with AIDS, persons with physical and mental disabilities, and elderly persons. As a current Community Development Block Grant (CDBG) funded sub-recipient, MBDC has demonstrated the capacity to undertake affordable housing programs, more specifically the very successful scattered site condominium homeownership program which has leveraged substantial Dade County Surtax funds. Additionally, MBDC, in conjunction with the People With Aids Coalition, was awarded $1,275,000 in Section 811 funds to acquire and rehabilitate housing for persons with disabilities. • • i COMMISSION MEMO JULY 28, 1993 PAGE 4 MIAMI BEACH DEVELOPMENT CORPORATION Scattered Site First-time Homebuyers Program $250,000 As a sub-recipient, MBDC will use HOME funds to provide incentives for affordable homeownership to first-time homebuyers for the purchase of housing which may also include necessary rehabilitation. These incentives may be in the form of grants or loans. Implementation of this HOME-assisted first-time homebuyers program is intended to complement and extend the existing scattered site condominium program administered by MBDC through CDBG and Metro-Dade County Documentary Surtax Program funds. MBDC is proposing to utilize HOME funds in one of the following two ways: 1. Provide advantageous second mortgages to enable participants currently qualified by MBDC to purchase units during the fiscal year in which Documentary Surtax funds have been fully expended. 2. Provide grants or third mortgages to cover closing costs, rehabilitation costs, or purchase buydowns, thus allowing a wider range of residents to qualify. The program enables low and moderate income persons who can demonstrate stable employment and who have adequate credit history to acquire one, two or three bedroom homes, townhouses or condominium units. This project has been reviewed by, and recommended for funding by the City's Loan Review Committee. MBDC will also provide homeownership counseling, which may include the following services: - counseling before and after the purchase of the property; - assisting first-time homebuyers in identifying suitable and affordable properties; - providing homebuyers with financial management assistance; - assisting homebuyers in understanding mortgage transactions and home sales contracts; and - assisting homebuyers with eliminating credit problems that may prevent them from qualifying for financing.. MBDC will administer the first-time homebuyer program in accordance with all HOME legislative and regulatory requirements, including affordability requirements, investment limits and targeted income of recipients. The Administration will review and approve each individual real estate transaction prior to disbursement of funds to insure compliance with applicable HOME regulations. Additionally, the Metro-Dade County Office of Special Housing Services will provide technical assistance to MBDC in loan underwriting, and will service loans generated hereunder. As previously indicated, MBDC is a City of Miami Beach CDBG sub-recipient and in that capacity, currently operates a scattered site condominium project. MIAMI BEACH DEVELOPMENT CORPORATION Operating Expenses for CHDO Eligible Activities $90,000 Up to 5% of the City's allocation of HOME funds may be utilized to provide operating support for a qualified CHDO. MBDC is requesting funds in the amount of$90,000 to offset the following CHDO-related operating expenses: • r COMMISSION MEMO JULY 28, 1993 PAGE 5 - maintaining its eligibility as a qualifying CHDO; - eliciting input from the community, particularly from low-incomero ram P g beneficiaries, in decisions regarding design, siting, development, and management P of affordable housing projects; - undertaking the development of appropriate affordable housing strategies ies and programs; - developing project-specific plans to implement such programs; - identifying additional fundingresources available to implement housinginitiatives, including p initiatives, including grant resources, mortgages and other funding; and - planning and developing affordable housing projects for such P people with special P needs as large families and persons with disabilities. The Administration received the budget from MBDC on July 20th after the close of business and is still in the process of reviewing it for conformity with HUD guidelines. The Administration is therefore requesting that the Mayor and City Commission approve the attached agreement with the budget that was received by the City and approve same subject to further review. In the event that any item in the attached budget is not in conformity with HUD guidelines, a revised budget will be brought to the City Manager or his designee for approval as an amendment to the attached agreement. CONCLUSION: We recommend adoption of the attached four Resolutions and the related agreements. Funds for each of the projects are available from the grants received under the HOME Investment Partnership Program. It is essential that these agreements be approved at this Commission meeting so that construction will not be delayed and so that the scattered site home ownership program can continue with minimal interruption. C01t1Cw0.0 7 l i AGREEMENT This Agreement is entered into this 28th day of July, 1993, by and between the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter referred to as the "City", and the Miami Beach Development Corporation, hereinafter referred to as the "Provider." WITNESSETH: WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and Urban Development for the purpose of conducting an Affordable Housing Program with federal financial assistance under Title II of the Cranston-Gonzalez National Affordable Housing Act, hereinafter called "Act"; and the HOME Investment Partnership Program; and WHEREAS, the City has determined through its Comprehensive Housing Affordability Strategy, which was adopted by City of Miami Beach Resolution Number 91- 20392, December 4, 1991, the necessity for providing affordable housing in Miami Beach; and WHEREAS, the City desires to engage the Provider to render certain services in connection therewith: NOW, THEREFORE, the parties hereto agree as follows: SECTION I: SCOPE OF SERVICES The Provider agrees to implement a family rental housing and/or a housing program for persons with special needs in accordance with the scope of services described in Appendix 1, attached hereto. . SECTION II: CONDITION OF SERVICE The Provider hereby agrees to the following: A. The Program shall serve eligible low and moderate income persons living primarily within Miami Beach, but principally in those areas containing a high concentration of such persons. B. The Provider shall maintain in its file the documentation on which basis it determines that the project benefits low and moderate income persons, minorities and residents of Miami Beach. Such records shall include, but not be limited to, the following: 1. Profiles identifying financial classification, head of household, ethnicity, race and gender, or area benefit data, as required. 2. An outreach plan which insures equitable participation by all eligible Miami Beach residents, and delineates steps taken to solicit increased participation of minority groups. C. The Provider shall maintain a citizen participation mechanism, which will include, but not be limited to the following: 1. Logging citizen comments or complaints when received. 2. Copies of comments and/or complaints received in writing. 3. Copies of responses to complaints and/or explanations of resolutions to complaints. 2 D. No expenditures or obligations shall be incurred for the program prior to approval and release of funds from the U.S. Department of Housing and Urban Development. Further, it is expressly understood that in the event no funds are released from the U.S. Department of Housing and Urban Development in connection with this Program, then the City is not liable for any claims under this Agreement. E. The Provider shall certify, pursuant to Section 109 of the Act, as well as any applicable state and local laws and ordinances, that no person shall be denied the benefits of the program on the ground of race, color, national origin or sex. F. To the extent that it staffs the Program with personnel not presently employed by it, the Provider will take affirmative action in attempting to employ low income persons residing in the City of Miami Beach, particularly minority group members. G. The Provider shall comply with First Amendment Church/State principles,as follows: 1. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. 2. It will not discriminate against any person applying for public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. 3. It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services. 3 4. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations. 5. The funds received under this Agreement shall not be used to construct, rehabilitate, or restore any facility which is owned by the Provider and in which the public services are to be provided. However, minor repairs may be made if such repairs are directly related to the public services; are located in a structure used exclusively for non-religious purposes; and constitute, in dollar terms, only a minor portion of the HOME expenditure for the public services. H. The Provider shall transfer to the City upon expiration of this Agreement, any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds. I. The Provider agrees to comply with all applicable federal regulations as they may apply to restrictions and limitations regarding real property under the Provider's control acquired or improved in whole or in part with HOME funds. Additionally, the Provider will comply with all applicable state and local laws and ordinances. J. The City desires to enter into this Agreement only if in so doing it can retain the right of approval over the disbursement of HOME funds for the individual transactions contemplated herein. The Provider shall be required to submit all necessary documentation relative to the aforestated transactions to the City's Housing and Community Development Division for review and approval fifteen (15) working days prior to the disbursement of HOME funds for the individual transactions. 4 K. The Provider agrees that when sponsoring a project financed in whole or in part under this Agreement, all notices, informational pamphlets, press releases, advertisements, descriptions of the sponsorship of the project, research reports, and similar public notices prepared and released by the Provider shall include the statement: "FUNDED BY THE CITY OF MIAMI BEACH HOME INVESTMENT PARTNERSHIP PROGRAM" In written materials, the words "CITY OF MIAMI BEACH HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS ADMINISTERED BY THE DEVELOPMENT, DESIGN AND HISTORIC PRESERVATION SERVICES DEPARTMENT" shall appear in the same size letters or type as the name of the Provider. L. The Provider shall ensure the following when entering into a sub-contract agreement: 1. The full correct legal name of the party shall be identified. 2. The "Scope of Services" shall describe the activities to be performed. 3. The amount of the sub-contract agreement, price components, method of payment, and funding sources shall be detailed. 4. A provision requiring compliance with all regulatory requirements of this Agreement shall be incorporated. 5. Written approval from the City shall be received prior to any expenditures being incurred under the sub-contract agreement. Failure to obtain prior approval will release the City of any obligation to reimburse the Provider for any costs incurred. 5 r M. The Provider shall maintain sufficient records to determine compliance with the requirements of this Agreement, the HOME Investment Partnership Program and all applicable laws and regulations. This documentation shall include, but not be limited to, the following: 1. Books, records and documents in accordance with generally accepted accounting principles,procedures and practices which sufficiently and properly reflect all revenues and expenditures of funds provided directly or indirectly by this Agreement, including matching funds and program income. 2. A system of allocation that will assure reliable cost measurements and reasonable and customary service delivery costs for each program. 3. Time sheets for split-funded employees, which work on more than one activity, in order to record the HOME activity delivery cost by project and the non-HOME related charges. 4. How the eligibility requirements under which funding has been received, have been met. These also include special requirements such as income certifications and written agreements with beneficiaries, where applicable. N. The Provider is responsible for maintaining and storing all records pertinent to this Agreement in an orderly fashion in a readily accessible, permanent and secured location for a period of three (3) years after expiration of this Agreement, with the following exception: if any litigation, claim or audit is started before the expiration date of the three year period, the records will be maintained until all litigation, claims or audit findings involving these records are resolved. The City shall be informed in writing after close-out of this Agreement, of the address where the records are to be kept. 6 SECTION III: TERM OF AGREEMENT This Agreement shall be deemed effective upon approval and release of funds by the U.S. Department of Housing and Urban Development and being duly executed by both parties, whichever is later. This project shall become operational upon approval of this Agreement by the Mayor and City Commission and execution of same by the Mayor and City Clerk. The FY 1992 monies in the amount of $277,000 until March 31, 1997. The FY 1993 monies in the amount of $181,350 shall continue until March 31, 1998. The term specified herein may be subject to any applicable term restrictions and limitations prescribed by HUD. SECTION IV: TERMINATION The City and the Provider agree: A. This Agreement may be terminated by either party hereto by written notice t0 the other party of such intent to terminate at least thirty (30) days prior to the effective date of such termination. B. This Agreement may be terminated in whole or in part, for convenience, when both parties agree upon the termination conditions. A written notification shall be required and shall include the following: reason for the termination, the effective date, and in the case of a partial termination, the actual portion to be terminated. However, if, in the case of a partial termination, the City determines that the remaining portion of the Agreement will not accomplish the purposes of such Agreement, the City may terminate such in its entirety. 7 C. The City may place the Provider in default of this Agreement, and may suspend or terminate this Agreement in whole, or in part, for cause. 1. Cause shall include, but not be limited to, the following: a. Failure to comply and/or perform in accordance with this Agreement, or any federal statute or regulation. b. Submitting reports to the City which are late, incorrect or incomplete in any material respect. c. Implementation of this Agreement, for any reason, is rendered impossible or infeasible. d. Failure to respond in writing to any concerns raised by the City, including substantiating documents when required/requested by the City. e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's monitoring of the Provider, and applicable HUD rules and regulations. 2. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include actions taken by the City, such as withholding of payments, actions to be taken by the Provider as a condition precedent to clearing the deficiency and a reasonable date for compliance, which shall be no more than fifteen (15) days from notification date. 8 3. The City shall notify the Provider in writing when sufficient cause is found for termination of this Agreement. The Provider shall be given no more than fifteen (15) days in which to reply in writing, appealing the termination prior to final action being taken by the City. D. Let it be further understood that upon curtailment of, or regulatory constraints placed on, the funds by the U.S. Department of Housing and Urban Development, this Agreement will terminate effective as of the time that it is determined such funds are no longer available. E. Costs of the Provider resulting from obligations incurred during a suspension or after termination, are not allowable unless the City expressly authorizes them in writing in the notice of suspension or termination, or subsequently thereto. Other costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: 1. The costs result from obligations which were properly incurred before the effective date of suspension or termination, are not in anticipation of it, and in the case of termination, are noncancelable, and 2. The costs would be allowable if the award were not suspended or expired normally at the end of the Agreement in which the termination takes effect. F. Upon termination of the Agreement, the Provider and the City shall meet to discuss the City's determination if any amounts are to be repaid to the City or if additional amounts are due the Provider. 9 w • SECTION V: AMENDMENTS Any alterations, variations, modifications or waivers of this Agreement shall only be valid when they have been reduced to writing and duly signed by both parties. Any changes which do not substantially change the scope of the project or increase the total amount payable under this Agreement, shall be valid only when reduced to writing and signed by the City Administration and the Provider. The City shall not reimburse the Provider for outlays in excess of the funded amount of the Agreement unless and until the City officially, in writing, approves such expenditure by executing a written modification to the original Agreement. SECTION VI: METHOD OF PAYMENT A. It is expressly understood and agreed that the total compensation to be paid hereunder for actual expenditures incurred shall not exceed Four-Hundred Fifty Eight Thousand Three Hundred Fifty Dollars ($458,350) in HOME funds. Two Hundred Seventy Seven Thousand Dollars ($277,000) shall be provided from FY 1992 HOME funds. One Hundred Eighty One Thousand Three Hundred Fifty Dollars ($181,350) shall be provided from FY 1993 HOME funds. B. Such funds must be expended during the term of the Agreement, and any remaining balance of funds shall revert to the City. Such compensation shall be paid in accordance with the scope of services and budget descriptions attached hereto and made a part hereof as Appendix 1. C. Notwithstanding Section II, Subsection J, the Provider shall submit, for each individual real estate transaction contemplated by this Agreement, requests for payment for actual and/or anticipated expenditures, including applicable back-up 10 documentation, no later than the tenth (10th) day of the succeeding month and the City will provide payment, upon approval, within ten (10) working days after receipt of the same, if submitted by the deadline date for inclusion on the drawdown request and funds are received from HUD. D. The City agrees to pay the Provider for expenditures incurred under this Agreement in accordance with the Budget attached hereto and made a part hereof as Appendix 1. SECTION VII: CONFLICT OF INTEREST The Provider covenants that no person, under its employ who presently exercises any functions or responsibilities in connection with HOME funded activities, has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and the State Statutes governing conflicts of interest. The Provider shall disclose, in writing, to the City any possible conflicting interest or apparent impropriety that is covered by the above provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The City will then render an opinion which shall be binding on both parties. SECTION VIII: INDEMNIFICATION AND INSURANCE The Provider, through an insurance carrier, shall indemnify and hold harmless the City from any and all claims, liability, losses and causes of action which may arise out of an act, omission, negligence or misconduct on the part of the Provider or any of its agents, servants, employees, contractors, patrons, guests, clients, licenses or interests or of any other person entering upon the Provider's place of business. The Provider, through its insurance carrier, 11 shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the City, when applicable, and shall pay all costs and judgments which may issue thereon. The Provider, through an insurance carrier, shall provide a General Liability Policy with coverage for Bodily Injury and Property Damage, in the amount of$500,000 single limit (the policy must include coverage for contractual liability to cover the above indemnification); and the City of Miami Beach shall be named as an additional insured followed by the statement: "This coverage is primary to all other coverage carried by the City covering this specific agreement only." The Provider shall hold proof of Workers' Compensation Coverage as per statutory limits of the State of Florida. Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement. The Provider shall submit to the City an ORIGINAL Certificate of Insurance. All insurance coverage shall be approved by the City's Insurance Manager prior to the release of any funds under this Agreement. Further, in the event evidence of such insurance is not forwarded to the Insurance Manager within thirty (30) days after the execution of this Agreement, this Agreement shall become null and void and the City shall have no obligation under the terms thereof unless a written extension of this thirty (30) day requirement is secured from the Insurance Manager. SECTION IX: REPORTING AND EVALUATION REQUIREMENTS Maintaining credibility for the affordable housing effort rests heavily on the ability to produce an impact in low/moderate income areas, through progress in accomplishing 12 scheduled activities. An effective method for maintaining project progress against a previously established schedule is through project evaluation and reporting, which will consist of both written reports and staff discussions on a regular basis including quarterly meetings with all parties of interest attending for the purpose of insuring effective contract execution. The Provider also assures prompt and efficient submission of the following: A. Monthly Reports are due no later than the tenth (10th) day of the succeeding month and shall include the request for payment when applicable. Contents of the Monthly Report, attached hereto and made a part hereof as Appendix 3, shall include but not necessarily be limited to the following: 1. The Narrative Report. 2. The Financial Status Report, including Program Income, for each housing project, which shall include the request for payment and documentation, as applicable. 3. The Client Profile Report. B. Final Evaluation. Within twenty (20) days of contract completion, a final report documenting how the eligibility requirements were met, must be submitted by the Provider to the City's Housing and Community Development Division for review and approval. The contents of same shall include a cumulative total of the data submitted during the program's operation. Further, such report shall include statistical findings which depict program efficiency; i.e., the number of dollars spent, including non-HOME funding sources,to render actual service to program recipients, and an overall evaluation of the program's effectiveness, and quantitative results. The final report will be evaluated and the Provider will be notified if additional data is necessary or that the project/activity is considered "closed-out". 13 Other Reporting Requirements may be required by the City in the event of program changes, need for additional information or documentation and/or legislation amendments. The Provider shall be informed, in writing, if any changes become necessary. Reports and/or requested documentation not received by the due date, shall be considered delinquent, and may be considered by the City as sufficient cause to suspend HOME payments to the Provider. SECTION X: AUDIT AND INSPECTIONS At any time during normal business hours and as often as City and/or Federal Government representatives may deem necessary, there shall be made available to representatives of the City and/or the Federal Government to review, inspect or audit all records, documentation, and any other data relating to all matters covered by the Agreement. An annual organization audit shall be submitted to the City 120 days after the end of the Provider's fiscal year. The audit shall be performed in accordance with OMB Circular A- 110 Attachment F, OMB Circular A-133 or OMB Circular A-128, as applicable. If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the right to recover any disallowed costs identified in an audit after such close-out. SECTION XI: COMPLIANCE WITH LOCAL,STATE&FEDERAL REGULATIONS The Provider agrees to comply with all applicable federal regulations as they may apply to program administration. Additionally, the Provider will comply with all state and local laws and ordinances hereto applicable. 14 SECTION XII: ADDITIONAL CONDITIONS AND COMPENSATION It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement to be used for the compensation, originated from grants of federal HOME Investment Partnership Program funds, and must be implemented in full compliance with all of HUD's rules and regulations. It is expressly understood and agreed that in the event of curtailment or non-production of said federal grant funds, that the financial sources necessary to continue to pay the Provider compensation will not be available and that this Agreement will thereby terminate effective as of the time that it is determined that said funds are no longer available. In the event of such determination, the Provider agrees that it will not look to, nor seek to hold liable, the City or any individual member of the City Commission thereof personally for the performance of this Agreement and all of the parties hereto shall be released from further liability each to the other under the terms of this Agreement. SECTION XIII: LIMITATION OF LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on 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 $458,350. Provider hereby expresses its willingness to enter into this Agreement with Provider's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $458,350, less the amount of all funds actually paid by the City to Provider pursuant to this Agreement. 15 • Accordingly,Provider hereby agrees that the City shall not be liable to Provider for damages in an amount in excess of $458,350 which amount shall be reduced by the amount of the funding actually paid by the City to Provider pursuant to this agreement, for any action or claim for breach of contract arising out of the performance or nonperformance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Florida Statutes, Section 768.28. SECTION XIV: ARBITRATION Any controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and the arbitration award shall be final and binding upon the parties hereto and subject to no appeal, and shall deal with the question of the costs of arbitration and all matters related thereto. In that regard, the parties shall mutually select one arbitrator, but to the extent the parties cannot agree upon the arbitrator,then the American Arbitration Association shall appoint one. Judgment upon the award rendered may be entered into any court having jurisdiction, or application may be made to such court for an order of enforcement. Any controversy or claim other than a controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, including any controversy or claim relating to the right to specific performance, shall be settled by litigation and not arbitration. SECTION XV: WAIVER No waiver by City at any time of any of the terms or conditions of this Agreement shall be deemed at any time thereafter a waiver of the same of any other terms or conditions herein. 16 SECTION XVI: NOTICES All notices required under this Agreement shall be sent to the parties at the following addresses: City: Housing and Community Development Division City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Provider: Miami Beach Development Corporation 1205 Drexel Avenue Miami Beach, Florida 33139 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officials on the day and date first above indicated. ATTEST: 1, CITY OF MIAMI B P• CH,FLORIDA / f CITY CLERK /JA ' OR \ MIAMI BEACH DEVELOPMENT CORPORATION, A FLORIDA WITNESSES: CORPORATION - ,(!w Triy,„...,,,,j / p/ , . • P:4 SIDENT - Aii, / ' APO e?fit_r /Kr...! OR TYPE NAM , il zi ,ifiAil,, ft, ? A______ ...„,c---„,„„„,r.. _mem V.,,r2eNi—r-c2 bicro/k.,4,c- /,‘,21 - 9.....„___, PRINT OR TYPE NAME FORM APPROVED MBDC-CHD.CNT LEGALJ4T. • . 17 f--,,,,te -j,- (41 By Date —7/• 76i 5 APPENDIX 1 BUDGET SUMMARY SHEET Project Name: MBDC CHDO OPERATING EXPENSES Funding Year 93/94 Project Operator: MIAMI BEACH DEVELOPMENT CORPORATION Date Submitted: - o�n�f o1n0::(f70:0ak00T�aN Number Category Breakdown Funds funds I " Sources Funds 1 Salaries & Benefits 2 Consultants & Contract Services 3 Space Rental 4 Equipment Lease or Purchase 5 Travel 6 Other Operating Expenses 7 Materials 8 Rehabilitation 9 Real Property Acquisition Total HOME Funds ** $458,350 ,: Total Other Funds Grand Total ** Category to be determined at time of site selection and project specification. Category requires review and approval by the City. APPENDIX 1 SCOPE OF SERVICES CHDO SET-ASIDE Funds shall be used for investment in affordable housing to be developed, sponsored or owned by MBDC. Such funds shall be used for acquisition, construction, reconstruction, and/or moderate or substantial rehabilitation activities which promote affordable rental and ownership housing. Site, project and transaction approvals are subject to review and approval by the City Manager of the City of Miami Beach or his designee. Funds shall be invested by MBDC in compliance with all applicable HOME legislative and regulatory requirements, including specifically: a) Affordability requirements, b) Investment Limits, and c) Targeted income of recipients. MBDC is proposing to undertake the following activities with its CHDO set-asides: Family Rental Housing: MBDC will acquire, rehabilitate and/or re-configure existing buildings to make them suitable for rental family housing. Through this activity, MBDC will continue to work in cooperation with the FIU Institute on Children and Families at Risk and with the RAIN Mothers at Fisher-Fienberg Elementary School in order to provide affordable housing opportunities for 12 families otherwise threatened by gentrification of this South Beach neighborhood. Housing for Special Needs Populations: MBDC has identified the need for increased housing opportunities for persons with special needs. Rental projects will be developed in concert with other community-based health and social service organizations to provide housing for persons living with AIDS, persons with physical and mental disabilities, and elderly persons. Technical Assistance and Site Control Loans Monies may be used in the early stages of site development for an eligible project. These costs must be related to a specific eligible project or projects and must not exceed reasonable and customary costs levels. Such loans may be provided to cover project expenses necessary to determine project feasibility,consulting fees,costs of preliminary financial applications,legal fees,architectural fees, engineering fees, engagement of a development team, site control and title clearance. Such loans must be repaid from construction loan proceeds or other project income. Loan repayment may be waived if there are impediments to project development reasonably beyond the control of the borrower. Project approval and transaction approval shall be exercised by the City Manager or his designee. Seed Money Loans Funds may be used to provide loans to cover preconstruction project costs that the City determines to be customary and reasonable, including, but not limited to' the costs of obtaining firm construction loan commitments, architecturallans and specifications, zoning P approvals, engineering studies, and legal fees. Eligibility for such loans shall require that the CHDO have site control, arelimina P ry financial commitment, and a capable development team. Such loans must be repaid from construction loan proceeds or otherJro'ect income. Loan P repayment may be waived if there are impediments to project development reasonably beyond the control of the borrower. ORIGINAL RESOLUTION NO. 93-20860 A re:ioi tion of the Mayor and City Commiss on of the City of Miami Beach • Florida, authorizing the Mayor and City Clerk to execute an agreement between the Cit:.� of Miami Beach and the Miami Beach Development Corporation, (MBDC) . .