Resolution 2020-31157R E S O L U T IO N N O . 2 0 2 0 -3 1 1 5 7
A R E S O L U T IO N O F TH E M A Y O R A N D C IT Y C O M M IS S IO N O F T H E C IT Y O F
M IA M I B E A C H , FLO R ID A , A U T H O R IZ IN G TH E C IT Y M A N A G E R TO D IS S O LV E
TH E C O N D O M IN IU M FO R M O F O W N E R S H IP FO R T H E C IT Y O W N E D
P R O P E R T Y , LO C A T E D A T 795 81S T S T R E E T, A/K I A "TH E C O RA L S
C O N D O M IN IU M ", W H IC H PR O P E R T Y IS C O M P R IS E D O F FIV E (5 )
C O N D O M IN IU M U N IT S , A L L O F W H IC H W E R E A C Q U IR E D B Y T H E C IT Y O N
JU L Y 26, 2019 FO R U S E A S A FF O R D A B L E H O U S IN G R E N T A L U N IT S ; A N D
FU R T H E R A U T H O R IZ IN G T H E C IT Y M A N A G E R TO EX E C U T E A L L
NE C E S S A R Y DO C U M E N T S TO A C C O M P LI S H TH E D IS S O L U T IO N P R O C E S S .
W H E R EA S , the City's Comprehensive Plan, amended via Ordinance 2017-4147,
established the goal of creating and maintaining 6,300 affordable housing units to serve low
income, moderate-income and special needs households within its boundaries; and
WHEREAS, the strengthening of the City's real estate market, coupled with the sharp
reduction in housing funds from the state and federal governments, have severely curtailed the
development growth the City experienced in 2000 - 2011; and
WHEREAS, on July 2, 2018, the Mayor and City Commission adopted Resolution No. 2018-
30374, appropriating $1,079,000 (the Appropriated Funds) from the General Fund for the
repayment of HUD funds, to comply with the decision of the Office of the Inspector General
Audit and as recommended by Letter to Commission (580-2017) of December 5, 2017; and
WHEREAS, on October 17, 2018, the Mayor and City Commission adopted Resolution No.
2018-30551, authorizing the City Manager to identify, negotiate, and if successful, execute a
purchase agreement and other related purchase documents for the property which is or will be
purchased, including payment of an initial deposit, in the amount of $1,000, provided that the
purchase agreement is approved by the City Commission; and
WHEREAS, on June 26, 2019, the Mayor and City Commission adopted Resolution No.
2019-30868, approving the purchase agreement with 81st Street Investment, LLC, a Florida
limited liability company ("Seller"), for five (5) condominium residential units, located at 795 81 st
St, Miami Beach, FL 33141 (the "Property"), for the purchase price of $1,050,000; and
WHEREAS, the Property is subject to a condominium form of ownership, under the name of
"The Corals Condominium" (the "Condominium"), pursuant to that certain Declaration of
Condominium, recorded in O.R. Book 25120, at Page 1921, of the Public Records of Miami-
Dade County, Florida; and
WHEREAS, the City will utilize the entire Property for affordable housing rental units,
following HOME Investment Partnership guidelines, for the affordability period of thirty (30)
years; and
WHEREAS, the condominium structure would require the Administration to comply with the
formalities of the Condominium Act, as codified in Chapter 718 of Florida Statutes, which will
unduly burden the management and operation of the Property by the City Administration; and
WHEREAS, based upon the foregoing, the City Manager recommends dissolving the
Condominium, in order to operate the Property as a single parcel, under one folio number,
instead of five (5) separate condominium units.
N O W , T H E R E F O R E , B E IT R E S O L V E D B Y T H E M A Y O R A N D C IT Y C O M M IS S IO N O F
T H E C IT Y O F M IA M I B E A C H , F L O R ID A , that the Mayor and City Commission hereby
authorize the City Manager to dissolve the condominium form of ownership for the City owned
property, located at 795 81° street, a/ka "The Corals Condominium", which property is
comprised of five (5) condominium units, all of which were acquired by the City on July 26, 2019
for use as affordable housing rental units; and further authorize the City Manager to execute all
necessary documents to accomplish the dissolution process.
PASSED AND ADOPTED this '? day of February , 2020.
ATTEST:
Dan Gelber, Mayor
ty Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EX(. ECUTION &»le-! +-as
City Attorney~ Date
Resolutions-C7 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO:
FROM:
DATE:
Honorable Mayor and Members of the City Commission
Jimmy L. Morales, City Manager
February 12, 2020
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO
DISSOLVE THE CONDOMINIUM FORM OF OWNERSHIP FOR THE CITY
OWNED PROPERTY, LOCATED AT 795 81ST STREET, A/K/A "THE
CORALS CONDOMINIUM," WHICH PROPERTY IS COMPRISED OF FIVE
(5) CONDOMINIUM UNITS, ALL OF WHICH WERE ACQUIRED BY THE
CITY ON JULY 26, 2019 FOR USE AS AFFORDABLE HOUSING RENTAL
UNITS; AND FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL NECESSARY DOCUMENTS TO ACCOMPLISH THE
DISSOLUTION PROCESS.
RECOMMENDATION
Approve the resolution.
BACKGROUND/HISTORY
The City's Comprehensive Plan, amended via Ordinance 2017-4147, established the goal of
creating and maintaining 6,300 affordable housing units to serve low- and moderate-income and
special needs households within its boundaries. While the City added 363 units to its affordable
housing stock from 2000 - 2011, the strengthening of the City's real estate market coupled with
the sharp reduction in housing funds from the state and fed eral government curtailed this growth
and no new City-sponsored units have been added since 2011.
An opportunity to add to the City's affordable housing stock materialized as a result of the City's
resolution of past compliance issues with the U. S. Department of Housing and Urban
Development (HUD). On July 2, 2018, the City Commission approved Resolution No. 2018-
30374. This action appropriated $1,079,000 from the General Fund to be used for the
repayment of HUD grant funds from the Community Development Block Grant (CDBG) and
HOME Investment Partnership (HOME) to comply with the decision of the Office of the
Inspector General Audit and as recommended by Letter to Commission (580-2017) on
December 5, 2017.
On June 26, 2019, the City Commission approved Resolution No. 2019-30868, authorizing the
purchase agreement of a five (5) unit multifamily property known as "The Corals Condominium,"
located at 795 81°street, Miami Beach, FL 33141, for the purchase price of $1,050,000, from
the seller 81°' Street Investment, LLC (the "Seller").
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ANALYSIS
The Corals Condominium Association, Inc. was created August 7, 2006 and, as of 2019, the
Board of Directors were comprised of a sole owner. The City inquired with the State and the title
company associated with this transaction to verify the purchase was compliant with Florida
Statute. A buyer approval and estoppel letter were provided by the Seller on July 19, 2019
during the closing.
The City subsequently allocated FY 18/19 HOME funds in the amount of $271,000 and CDBG
funds in the amount of $379,881.89 for the capital repairs and relocation of tenants in
connection with the rehabilitation of the property. The repairs identified in the property include
but are not limited to: roof replacement, landscaping, installing central HVAC units, replacement
of windows, new appliances, restoring flooring as needed, bathroom renovations and kitchen
renovations, to harden the infrastructure and enhance the resiliency of the property. The City
would also like to rename the property Biscayne Beach House.
Because the property is intended for affordable housing rental for the affordability period of
thirty (30) years and federal funds are intended for the restoration and repair of the common
areas, the condominium structure is not applicable to this City asset. The City would like to
dissolve the association structure and condominium ownership in order to maintain the property
as affordable rental housing in compliance with the Consolidated Plan.
FINANCIAL INFORMATION
Expenditures are tied to federal CDBG and HOME funds and will not impact General Fund.
CON CLUSI ON
The Administration recommends the dissolution of Corals Condominium Association, I ne. and
the dissolution of the condominium form of ownership for the City-owned property located at
795 81 st street.
Applica ble Area
Not Applicable
ls this a Re sident Right to
Kn ow item ?
No
Legislative Tracking
Housing and Community Services
Does this item utilize G.O,
Bond Fun ds?
No
ATTACHMENTS:
Description
Resolution
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