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Resolution 2021-31772R E S O L U T IO N N O . 2021-31772 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO PERFORM THE FOLLOWING ACTIONS: (1) TO RECAPTURE $220,000 OF FY 20 HOME INVESTMENT PARTNERSHIP (HOME) FUNDS PREVIOUSLY ALLOCATED TO TENANT BASED RENTAL ASSISTANCE, AND TO REALLOCATE SAID FUNDS TO THE HOMEOWNERSHIP ASSISTANCE PROGRAM IN ORDER TO ENSURE COMPLIANCE WITH HUD EXPENDITURE DEADLINES; (2) TO ALLOCATE THE FY 21 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) FUNDS IN THE AMOUNT OF $394,363, AS FOLLOWS: (A) TO THE NEPTUNE APARTMENTS REHABILITATION PROJECT IN THE AMOUNT OF $200,000; (B) TO THE FIRST TIME HOMEBUYER PROGRAM AND HOMEOWNER REHABILITATION PROGRAM IN THE AMOUNT OF $154,927; AND (C) FOR ADMINISTRATIVE COSTS, IN THE AMOUNT OF $39,436; AND (3) TO SUBMIT THE REVISED ACTION PLANS TO US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE ANY AGREEMENTS OR RELATED DOCUMENTS WITH RESPECT TO THE FOREGOING, INCLUDING AGREEMENTS TO BE SIGNED BY SUB-RECIPIENTS. WHEREAS, the City is an entitlement recipient of HUD formula grant programs such as HOME Investments Partnership (HOME) funds; and WHEREAS, HOME funds are used for affordable housing activities including multi-family rentals and tenant-based rental assistance; and WHEREAS, pursuant to Resolution No. 2020-31257, the Mayor and City Commission approved the FY 20 One-Year Action Plan, allocating $220,000 for Tenant-Based Rental Assistance for households earning up to 60% AM I and $274,166 for Homebuyer and Homeowner Rehabilitation Assistance for households earning up to 80% AMI; and WHEREAS, pursuant to Resolution No. 2021-31665, the Mayor and City Commission approved the allocation of $200,000 from the remaining general fund set aside to address COVID-19 related matters, such as rent, mortgage and utility assistance; and WHEREAS, City Administration recommends the recapture of FY 20 $220,000 HOME Tenant-Based Rental Assistance funds and reallocate said funds to Homebuyer and Homeowner Rehabilitation Assistance in order to assist income-eligible households currently on a waitlist; and WHEREAS, the City receives funding from the Florida Housing Finance Corporation (FHFC) for the State Housing Initiatives Program (SHIP); and WHEREAS, on June 10, 2021, FHFC notified the City of the FY 21 allocation in the amount of $394,363 that will become available after October and will be disbursed in multiple payments over the course of several months; and WHEREAS, the Administration recommends allocating funds to the following approved activities: 1) utilizing $200,000 for the Neptune Apartments rehabilitation project; 2) $154,927 towards Purchase Assistance with Rehabilitation and Homeowner Rehabilitation; and 3) $39,436 towards administration; and W H E R EA S , State Housing Initiatives Partnership (SHIP) Act, § 420.907-420.9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local governments to develop a one- to three-year Local Housing Assistance Plan (LHAP) outlining how funds will be used; and WHEREAS, the City advertised a Notice of Funding Availability for FY 21 SHIP funds and Notice of Public Hearing and Public 30-day Comment Period (July 5 - August 3, 2021 ); and the City advertised the substantial amendment to the FY 20 Annual Action Plan for the with a Notice of Public Hearing to be held on July 20, 2021 and Public 30-day comment period (July 5- August 3, 2021; and WHEREAS, the Administration seeks the authorization of the City Manager as signatory to all documents related to the disbursement of funds to sub-recipients; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the City Manager to perform the following actions: (1) to recapture $220,000 of FY 20 Home Investment Partnership Program (HOME) funds previously allocated to Tenant-Based Rental Assistance, and to reallocate said funds to FY 20 Homeowner Assistance Program in order to ensure compliance with HUD expenditure deadlines; (2) to allocate the FY 21 SH IP funding allocation in the amount of $394,363 to the following activities as follows: (A) to the Neptune Apartments rehabilitation project in the amount of $200,000; (B) to the First Time Homebuyer Program and Homeowner Rehabilitation Program in the amount of $154,927; (C) to administrative costs in the amount of $39,436; (3) to submit the revised Action Plans to US Department of Housing and Urban Development (HUD); and further authorize the City Manager and City Clerk to execute City interdepartmental agreements and other agreements to be signed by sub-recipients. PASSED and ADOPTED this „ fl day of /,2021. I ATTEST: DAN GELBER, MA VOR APPROVED AS TO FORM & LAN GUAGE & FOR EXE CUTION O 1i- 6wir @os» ET Wwo Resolutions - C7 L MIAMI BE A CH COMMISSION MEMORANDUM TO: FROM: DATE: Honorable Mayor and Members of the City Commission Alina T. Hudak, City Manager July 28, 2021 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO PERFORM THE FOLLOWING ACTIONS: (1) TO RECAPTURE $220,000 OF FY 20 HOME INVESTMENT PARTNERSHIP (HOME) FUNDS PREVIOUSLY ALLOCATED TO TENANT BASED RENTAL ASSISTANCE, AND TO REALLOCATE SAID FUNDS TO THE HOME OWNERSHIP ASSISTANCE PROGRAM IN ORDER TO ENSURE COMPLIANCE WITH HUD EXPENDITURE DEADLINES; (2) TO ALLOCATE THE FY 21 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) FUNDS IN THE AMOUNT OF $394,363, AS FOLLOWS: (A) TO THE NEPTUNE APARTMENTS REHABILITATION PROJECT IN THE AMOUNT OF $200,000; (B) TO THE FIRST TIME HOMEBUYER PROGRAM AND HOMEOWNER REHABILITATION PROGRAM IN THE AMOUNT OF $154,927; AND (C) FOR ADMINISTRATIVE COSTS, IN THE AMOUNT OF $39,436; AND (3) TO SUBMIT THE REVISED ACTION PLANS TO U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE ANY AGREEMENTS OR RELATED DOCUMENTS WITH RESPECT TO THE FOREGOING, INCLUDING AGREEMENTS TO BE SIGNED BY SUB- RECIPIENTS. RECOM MENDATI ON The Administration recommends approving the Resolution. BACK GROUND/HISTORY HOME Funds As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under US Department of Housing and Urban Development (HUD) grant programs. HUD requires each entitlement community to submit an annual One- Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. The Administration reviews allocations on an ongoing basis and recommends recapture and reallocation of funds to meet expenditure deadlines. Page 406 of 2012 On May 13, 2020, the Mayor and City Commi ssion approved the FY 20 Action Plan via Resolution No. 2020-31257, which authorize d the alloca tion of: $220,000 for Tenant-Based Rental Assistance T he funding allocation was designated to help ame liorate financial hardship expe rienced by low- income residents affected by COVID-19. This action was ma de possible in part because HUD extended several waivers to Septembe r 30, 2021for HOME programs imp lemented as a response to the COVID-19 pandemic As of June 30, 2021, many of the households applying to the City for rent and utility assistance do not fulfill the federal requireme nts for US residency and/or 60% Area Median Income, whi ch has impe ded the City's ability to expen d funds in a timel y manner. As such, the Administration is reco mme nding the reallocation of these funds to the First-time Homebuyer Program as there are currently 37 households on the City's waitlist enabling the City to add additional units to its affordable housing stock while ensuring the time ly expe nditure of funds in compliance with HUD regulations. On April 8, 2021, HUD announced the Ame rican Rescue Plan (ARP), which will provide $5 billion to Participating Jurisdictions- including the City - through the HOME-ARP Program. The estima ted alloca tion for the City is $2,245,387 and can be utilized for the following four eligible activities: • Production or Preservation of Affordable Housing • Tenant-Based Rental Ass istance (TBRA) • Supportive Services, Homeless Prevention Services, and Housing Counseling • Purchase and Development of Non-Congregate Shelter The release date of ARP funds has yet to be determined by HUD. Funds must be expended by 2030. These funds, which are the equivalent to mo re than four annual HOME allocations, can allow the City to continue its rent assistance efforts for those imp acted by COVID while also allowing expanded assistance under the City's First-time Home buyer Program. SHIP Funds The State Housing Initiatives Partnership Program (SHIP), administered through the Florida Housing Finance Corporation (Florida Housing), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP Program funds are derived from docu men tary stamp levies on real estate transactions and held in the SHIP Program Trust Fund. Annually, Florida Housing allocates SHIP program funds amo ng participating jurisdictions on a formu la basis by June 30. Since 2016, the City has allocated SHIP funds to Homeo wner and Homebuyer assistance. Assistance is provided in the form of a forgivable loan with deferred payme nts as long as the recipient comp lies with program requireme nts. The loan is forgiven if recipients do not rent, sell or refinance the purchased unit during the 15-year affordability period. ANALYSIS On June 30, 2020, Florida Housing announced that annual SHIP funding allocations would not be dispersed as the Florida Legislature has programme d Sadowski Act funds in other areas. Instead, the state, wh ich was awarded Coronavirus Relief Funds through the U.S. Treasury Departme nt, would utilize federal funds to distribute to entitleme nt commu nities. From March 1 to Decembe r 30, 2020, the City assisted eight (8) households with down payme nt and mandated rehabilitation assistance. The loss of the annual SHIP alloca tion in 2020 resulted in the creation of a waitlist for the first time since the comme nceme nt of the First-time Homebuyer and Home owner Programs in 2016. Page 407 of 2012 On June 10, 2021, Florida Housing announced the City's projected SHIP allocation as $394,363. Funds will become available after October 2021 and will be disbursed in multiple payments over the course of several months. The Administration has identified a City-owned property with a funding gap in its rehabilitation which is also an eligible property for SHIP funds. N e pt une Ap ar tm e nts The Neptune Apartments, located at 1632 Meridian Avenue, provides a total of 35 efficiency units in a single, 3-story historic building. In 2015, HOME Program funds were used to fund the acquisition of the property then owned by Miam Beach Community Development Corporation. As such, no additional HOME funds can be used at this property until the affordability period is met in 2045. The Neptune Apartments were acquired with significant deficiencies that were the product of poor workmanship and materials by the prior owner. The City has undertaken a variety of repairs to this property including the installations of shower pans in each unit and the completion of Phase 1 of renovations that included a new roof, stucco repair and floor repairs. The property's needs were divided into two phases in order to maxim ize available funds and undertake repairs as quickly as possible. Phase 2 of the renovation will weatherproof the façade and envelope, eliminate water and moisture intrusion, as well as other structural enhancements that will imp rove the building's resiliency. Ultimately, the historic rehabilitation project ensures decent, safe and sanitary conditions for at least an additional 30 years. The City has applied for and rece ived a grant from the Federal Emergency Management Agency (FEMA) for $140,596,04 for the rehabilitation of the Neptune Apartments. The City is leveraging the federal funds used in Phase 1 to comp ly with match requirements. However, a $200,000 funding gap remains for Phase 2 that cannot be met with federal fund funds. As such, the Administration recommen ds using SHIP funds to close this gap and ensure compliance with SHIP regulations: Phase 2 Project CDBG allocation FEMA Hazard Mitigation SHIP FY 22-pending Budget (Es tima te, pending Grant-pending approval disburseme nt in up to four Ph ase 1 closeout) of ali ame ndme nt to the payments after October 1, scope of work 2021 $1,052,029 $735,921.61 $140,596.04 $200,000 The FEMA and SHIP funding alloca tions outlined are contingent upon funding availability and disbursement. As such, the City is prepared to utilize Residential Replacement Reserves to fund the project until FEMA funds are available as the City must mee t the CDBG expenditure deadline of July 2022. In order to do this, an Invitation to Bid mu st be submitted to the Procu rement Departmen t within the next thirty (30) days and construction would need to begin in November 2021We cannot proceed with Phase 2 until all need ed project funds have been identified and allocated. Firs t-Ti m e Ho m eb uyer and H om eow ner A ssistance Program s The City has been providing emergency rent, mo rtgage and utility assistance for eligible residents financially impacted by COVID-19. The City has used a variety of federal, state and local funds to assist 526 households with $1,398,577.21 in as of June 30, 2021. The households assisted through these funds must be earning no more than 80 percent Area Median Income (A M I) for Commu nity Development Block Gran t (CDBG-CV3) progr ams, 60 percent AMI for the HOME Investment Partnership programs and 120 percent AMI for General Fund assistance. The City continues to use Page 408 of 2012 an online portal to schedule appointme nts. The pace of requests has been consistently declining- from 153 households in January to only 54 households in June. The following funds remain available for rent, mo rtgage and utility assistance: Program Name Funding Source Funding Amount Available Expenditure Funding Deadline Emergency Food hited Way of Miami- $33,075 $15,770.38 October 31, 2021 and Shelter Dade Program- Phase 37 and CARES General Funds City of Miami Beach $200,000 $101,823.81 September 30, 2021 Tranche 2 CDBG-CV3 CARES Act funding $342,903 $105,118.60 December 31, 2021 HOME Investment FY 20 Allocation $220,000 September 30, 2021 and recommended to Partnership be reallocated While rent and utility assistance dema nd has decreased significantly, the dema nd for the City's home buyer and home owner assistance programs have increased significantly during the pandemic. The Office of Housing and Commun ity Services (HCS) was recreated to create a waitlist for its First Time Home buyer Program to ensure compliance with SHIP statute 3420.9075 as several eligible households were pending assistance funds. Furthermo re, the waitlist has enabled the City to identify eligible households to comply with the 20% Special Need s set-aside requireme nt, as defined in 420.0004 Florida Statutes. Below is a snapshot of the current applicant waitlist: Waitlist Data First Time Home buyer Homeowner Rehabilitation Number of Waitlist Applicants 39 3 Average Number of People in Household 1.7 1 Extremely- Low-Income 3 2 Very-Low-Income 16 o Low-Income 10 1 Moderate Income 7 o 140% Income 4 o City Employees 3 o Special Needs 5 1 Page 409 of 2012 I Essential Needs Personnel R' The Office of Housing and Commu nity Services is working collaboratively with the Huma n Resources Departme nt on a campaign to inform employees about available resources for home ownership. These efforts seek to increase the numb er of emp loyees who live, work and play in our commun ity. The 2019 Analysis of Impediments to Fair Housing Choice (Al) identifies the City's challenges in promo ting affordable and fair housing, and highlights opportunities that can set goals and priorities to address said challenges. The Al states the home ownership rate in Miam Beach is 37.4% lower than the national average of 63.9%. One of the goals and objectives listed in the City's 2017-2022 Consolidated Plan is: to increase and ma intain homeo wnership assistance to promote commun ity investment and stable housing for all. Given that the City has had difficulty identifying households eligible within the federal guidelines and the upcom ing expen diture deadline for these funds, the Administration recom men ds reca pturing HOME funds originally appropriated for rent assistance and realloca te these funds to serve households enrolled in the waitlist for first time home buyer and homeowner rehabilitation assistance programs. Below is a summar y of funds being hamessed for this purpose and the net impact of each: Funding Source Amount Funding Availability Expenditure Deadline Estimated House holds to be Served SHIP FY 21/22 $154,927 after October 1 Aune 30, 2024 3 (can also be combined with HOME) HOME FY 19/20 $85,169.03 Pending HOME program September 30, 2026 2 HOME FY 20/21 $274,081 agreements September 30, 2027 7 HOME FY 21/22 $526,784 After October 1 September 30, 2028 13 Total Funds $1,040,961.03 Total Estimated Number of 25 25 Households to be served: Below is recomme ndation of the FY 21 SHIP funds that will be alloca ted to the City: FY21 SHIP Allocation ACTIVITY /PROJECT AMOUNT Rental Development- Phase 2 of the Neptune Apartments Rehabilitation Project $200,000 Purchase Assistance with Rehabilitation and Homeowner Rehabilitation $154,927 Administration (10% of allocation) $39,436 $394,363 Page 41 O of 2012 SUPPORTING SURVEY DATA N/A Amount(s)/Account(s): 180-0530-000346-23-404-534-00-00-00-53419 152-0530-000349-00-404-534-00-00-00-57210 CONCLUSION The Administration recommends the following actions: 1) recapture of $220,000 FY 20 HOME Investment Partnership (HOME) Program funds previously allocated to Tenant-Based Rental Assistance and reallocation to the Homeownership Assistance Program; 2) to allocate the FY 21 State Housing Initiative Partnership (SHIP) Program Funds in the amount of $394,363: (i) to the Neptune Apartments rehabilitation project in the amount of $200,000; (ii) to the Homebuyer and Homeowner Rehabilitation Programs in the amounts of $154 ,927; (iii) and administrative costs in the amount of $39,4 36; and (3) submit the revised FY 20 Action Plan to HUD and further authorize the City Manager and City Clerk to execute City Interdepartmental Agreements and other agreements to be signed by Sub-recipients. Appl icable Are a Not Applicable ls this a "R esi d e nts Right to Kn o w" ite m, pursuant to City C ode S e cti on 2-142 No Does this item utilize G.O. Bond Funds? No Legislative Tracking Office of Housing and Community Services Spon sor Commissioner Michael Gongora ATTACHMENTS; Description Advertisement Resolution Page 411 of 2012 C ITY O F M IA M I B E A C H N O T IC E O F A PU B LI C H E A R IN G A N D T H IR TY -D AY PU B L IC C O M M E N T PE R IO D F O R A S U B S TA N T IA L A M E N D M E N T T O T H E FY 20 A N N U A L A C T IO N PLA N FO R H O M E IN V E S T M E N T PA R T N E R S H IP (H O M E ) F U N D S PUBLIC HEARING: To receive comments and obtain input regarding a substantial amendment to the FY 20 Annual Action Plan for the reallocation of HOME funds. Interested residents and other parties are encouraged to provide comments at the public hearing. DATE & TIME: July 20, 2021 5.00 PM PLACE: The hearing will take place during the Affordable Housing Advisory Committee meeting. To participate or provide comment virtually, the public may join the meeting at https://zoom.us/j/ 96965494538?pwd=bnRBWW EwKzFLTHJmMys3SGJISFEzQT09 or via telephone 1-312-626-6799 Meeting ID: 969 6549 4538 Passcode: 831602 COMMENT PERIOD: July 5, 2021 to August 3, 2021 Below is a summary of the proposed amendment. Written comments may be malled to the City of Miami Beach, Office of Housing and Community Services, 1700 Convention Center Drive, Miami Beach, FL 33139 or via e-m ail to: marcelarubio@miamibeachfl.gov. Homebuyer Assistance and Homeowner Rehabilitation CORRECTED PROGRAM ACTIVITY Tenant-Based Rental Assistance $0.00 Homebuyer Assistance and Homeowner Rehabilitation $494,166 INFORMATION: For further information, contact the City of Miami Beach Office of Housing and Community Services at 305- 673-7260."Pursuant to Fa. Stat. 286.015, the City hereby advises the public that: if a person decides to appeal any decision made by this Board, Agency or Commission, with respect to any matter considered at its meeting or hearing, he will need a record of the proceedings, and that for such purpose, the affected person may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. This notice does not constitute consent by the City for the introduction or admission or otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law." In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodation to obtain materials in an accessible format to provide comment should contact the City Clerk's Office at 305673-7411 for assistance; if hearing impaired, call the Florida Relay Service number 800-955 8771 (TDD) or 800-955-8770 (voice) for assistance. Para obtener información en español, por favor contacte a Cristina Cabrera al 305673-7260. CITY OF MIAMI BEACH NOTICE OF FUNDING AVAILABILITY FOR THE STATE OF FLORIDA HOUSING INITIATIVES PARTNERSHIP (SHIP) FUNDING FOR FISCAL YEAR 21-22 The Florida Housing Finance Corporation announced its projected allocation of $394,363 for the City of Miami Beach SHIP eligible program activities such as Rental Development. Funds for Rental Development will be utilized tor the rehabilitation of multi-family buildings owned and operated by the City. The program funding will be available from October 1, 2021 to June 30, 2024, contingent upon funding availability. The City projects its allocation for the Rental Development category will be $200,000, to fund Phase 2 of the Neptune Apartments rehabilitation project. Rental Development- Phase 2 of the Neptune Apartments Rehabilitation Project $200,000 Waitlist for Purchase Assistance with Rehabilitation and Homeowner Rehabilitation $154,927 Administration (10% of allocation) $39,436 The City of Miami Beach projects its allocation for the First Tlme Homebuyer Program to be $154,927 and it will distribute funds to the income eligible participants currently on the waitlist. F -1- 1- . t· 'th « Page,412,9f 2012 or a waitlist application or questions on eit er program, please contact fl Marcela Rübiö, HOME/SHIP Program Coordinator with the City's Office of Housing and Community Services at 305.673. 7260, visit www.miamibeachfl.gov or email ship@miamlbeachfl.gov.