Resolution 2021-31929RESOLUTION NO. 2021-31929
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSENT AGREEMENT FOR MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC), A COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION, IN CONNECTION WITH MBCDC'S
REQUEST FOR A LOAN EXTENSION FROM THE NATIONAL HOUSING
TRUST COMMUNITY DEVELOPMENT FUND FOR THE MERIDIAN PLACE
APARTMENTS, LOCATED AT 530 MERIDIAN AVENUE, SUBJECT TO
APPROVAL BY THE CITY ATTORNEY.
WHEREAS, the City is an entitlement recipient of HUD formula grant programs as
follows: Community Development Block Grant (CDBG) fund, and HOME Investments
Partnership (HOME) funds; and
WHEREAS, CDBG funds are used to provide vital public services, housing activities and
improvement to public facilities and HOME funds are used for affordable housing activities
including multi -family rentals; and
WHEREAS, on March 14, 2007, the Mayor and City Commission approved Resolution
No. 2007-26481, awarding FY 02/03 HOME Program funds in the amount of $309,469 to Miami
Beach Community Development Corporation (MBCDC) for the acquisition and rehabilitation of
the Meridian Place Apartments (the "Property"), a 34 -unit multi -family housing property, located
at 530 Meridian Avenue, Miami Beach, FL 33139; and
WHEREAS, MBCDC Meridian Place, LLC (Meridian), is the owner of the Property, as
successor in interest to MBCDC; and
WHEREAS, the City of Miami Beach subsequently awarded funds for the rehabilitation
of the Property for a total amount of $2,864,642 in HOME funds and $1,500,000 in Miami Beach
Redevelopment Agency funds; and
WHEREAS, the affordability period for the Property expires on September 26, 2043; and
WHEREAS, MBCDC was certified as a Community Housing Development Organization
(CHDO) in 2021 for the duration of one year; and
WHEREAS, On June 4, 2021, MBCDC submitted its 2021-2033 Business Strategy Plan
(the "Plan"), which describes the agency's current financial position and delineates different
strategies to preserve the portfolio; and one of the strategies included negotiating loan terms
with existing lenders; and
WHEREAS, National Housing Trust Community Development Fund (NHTCDF)
executed a loan in the original principal amount of $635,012 on February 20, 2014 (the
"NHTCDF Laon") and MBCDC intends to enter into a loan modification with NHTCDF; and
WHEREAS, the Administration is collaborating with MBCDC to preserve the affordable
housing portfolio and ensure compliance with local, state and federal regulations; and
WHEREAS, the Administration recommends that the City execute a Consent Agreement,
extending the maturity date of the NHTCDF loan to December 2023, which maturity date may be
extended further to a date not to exceed December 2024, at NHTCDF's option, and which will
not change the priority of the City's mortgage lien on the Meridian Place Apartments.
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 execute ,a Consent Agreement for Miami Beach Community
Development Corporation (MBCDC), a Community Housing Development Organization, in
connection with MBCDC's request for a loan extension from the National Housing Trust
Community Development Fund for the Meridian Place Apartments, located at 530 Meridian
Avenue; and further authorize the City Manager to execute the Consent Agreement, subject to
approval by the City Attorney.
PASSED and ADOPTED this
ATTEST:
AEL E. GRANADO,
PIA 0RATED
ERK
? day of be«"'b-r , 2021.
DAN GELBER, MAYOR
DEC 1 3 202
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
fg.% City AttorneyD®
IN
Agenda Item 6712
Date
COMMISSION MEMORANDUM -
TO: Dan Gelber and Members of the City ommission
FROM: Alina T. Hudak, City Manag r
DATE: December 8, 2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, IN THE FORM ATTACHED TO THE CITY
COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION, A MORTGAGE
SUBORDINATION AGREEMENT FOR MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION, IN CONNECTION WITH THEIR REQUEST FOR A LOAN EXTENSION FROM
THE NATIONAL HOUSING TRUST, FOR THE MERIDIAN PLACE APARTMENTS; AND
FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE SUBORDINATION
AGREEMENTS.
ADMINISTRATION RECOMMENDATION
The Administration recommends approving the Resolution.
BACKGROUND
The City is an entitlement community designated by the U.S. Department of Housing and Urban
Development (HUD) and as determined by the decennial census information on population growth
lag, age of housing stock and poverty. As an entitlement community, the City qualifies for an
annual allocation under HUD's grant programs. The HOME Investment Partnership Program
(HOME) was established in 1992 to provide funding specifically for affordable housing. HUD
allocates these housing funds to strengthen public/private partnerships and expand the supply of
affordable housing that is decent, safe and sanitary.
Miami Beach Community Development Corporation (MBCDC), a non-profit housing provider, has
received approximately $12M for the acquisition and rehabilitation of their affordable housing
portfolio in Miami Beach. In 2007, MBCDC requested funding for the acquisition and rehabilitation
of the Meridian Place Apartments, a 34 -unit multi -family property located in 530 Meridian Avenue.
Subsequently, the City awarded the Meridian LLC, a subsidiary of MBCDC, a total of $2,864,642
in HOME Program funds and $1,500,000 in Redevelopment Agency funding; both programs'
affordability period end in 2043. Currently, the housing property is designated for elderly homeless
or homeless persons at or below 60% AMI.
On June 4, 2021, MBCDC submitted its 2021- 2033 Business Strategy Plan ("the Plan"), which
describes MBCDC's current financial position and delineates different strategies to preserve their
portfolio. MBCDC reported their performing debt as $5,580,080.00 as of July 30, 2021, which
includes $2,273,312 in private loans. In order for MBCDC to obtain loan modifications that will
result in reduced finance rates, they are requesting that the City subordinate for various
properties, including the Meridian Place Apartments.
ANALYSIS
The chart below lists the funding Meridian Place Apartments has received from various public
and private lenders in the order of lender position.
Mortgage Holder
Amount
Loan Structure
Florida Housing Finance
$201,278
Non-interest bearing loan;
Corporation
management is working with lender to
$1,000,000
secure a 5 -year extension.
National Housing Trust
$635,012
Payable loan; management is working
Community Development Fund
with lender to secure a 2 -year
extension.
Miami -Dade County Surtax Loan
1. $1,000,000
Non-interest bearing loan expiring
2. $775,000
January 29, 2043.
Miami Beach Redevelopment
$1,500,000
Non-interest bearing loan expiring
Agency
December 21, 2041.
City of Miami Beach
$2,864,642
Non-interest bearing loan expiring
December 21, 2041.
National Housing Trust Community Development Fund Loan
In 2013, the Meridian, LLC entered into a construction loan payable with the National Housing
Trust Community Development Fund in the amount of $335,012 with an interest rate of 6.5%
per annum with a 10 -year amortization schedule. An additional loan in the amount of $300,000
with interest at a rate of 6.0% per annum and a 30 -year amortization schedule was secured.
The combined loans require monthly payments of approximately $5,600 that were due on June
29, 2020. The maturity date was extended to October 22, 2021, while MBCDC requests a 2 -
year extension from the lender. MBCDC provided the City with the necessary documents for the
loan modification on November 15, 2021.
Although the City's position is inferior to the other lenders, any loan modification documents
must be approved by City Commission. Administration continues to work with MBCDC to
evaluate strategies that focus on preserving the units in their housing portfolio and ensuring
compliance with local, state and federal regulations.
CONCLUSION
The Administration recommends the Mayor and City Commission authorize the City Manager to
sign the subordination agreements required by MBCDC for the Meridian Place Apartments loan
modification.
Resolutions - C7 D
MIAMI B
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: December 8, 2021
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, IN THE FORM ATTACHED TO
THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS
RESOLUTION, A CONSENT AGREEMENT FOR MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), A COMMUNITY
HOUSING DEVELOPMENT ORGANIZATION, IN CONNECTION WITH
MBCDC'S REQUEST FOR A LOAN EXTENSION FROM THE NATIONAL
HOUSING TRUST COMMUNITY DEVELOPMENT FUND FOR THE
MERIDIAN PLACE APARTMENTS, LOCATED AT 530 MERIDIAN AVENUE;
AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE
CONSENT AGREEMENT.
(ITEM TO BE SUBMITTED IN SUPPLEMENTAL)
RECOMMENDATION
BACKGROUND/HISTORY
ANALYSIS
SUPPORTING SURVEY DATA
Not applicable.
FINANCIAL INFORMATION
Not Applicable.
CONCLUSION
Page 378 of 1357
Applicable Area
Not Applicable
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
No
Does this item utilize G.O.
Bond Funds?
No
Strategic Connection
Mobility - Support affordable, compatible workforce housing.
Legislative Tracking
Housing and Community Services
Page 379 of 1357