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Resolution 2022-31980RESOLUTION NO., 2022-31980 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR FY 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND FOR FY. 2022 HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS, AND HOME AMERICAN RESCUE PLAN FUNDS (HOME -ARP) TO FUND ELIGIBLE PUBLIC SERVICES, AFFORDABLE HOUSING ACTIVITIES, SUPPORTIVE SERVICES AND CAPITAL IMPROVEMENT PROJECTS FROM THESE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ENTITLEMENT ALLOCATIONS, IN ACCORDANCE WITH THE PRIORITIES DELINEATED IN THE 2018-2022 CONSOLIDATED PLAN. WHEREAS, the City is an entitlement recipient of HUD formula grant programs as follows: Community Development Block Grant (CDBG) funds and HOME Investment Partnerships (HOME) funds; and WHEREAS, CDBG funds are used to provide vital public services, housing activities and improvements to public facilities, that benefit low -to moderate -income persons; and HOME funds are used for affordable housing activities, including multi -family rentals that benefit low-income persons; and WHEREAS, the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, on March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 for the HOME Investment Partnerships Program ("HOME -ARP") into law, which provides funding to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses; and WHEREAS, on September 22, 2021, the local US HUD field office notified the City of its HOME -ARP allocation of $2,245,387, which must be expended by September 30, 2030 on eligible activities, to address the need for homelessness and supportive services, as described in the One -Year Action Plan for FY 21; and WHEREAS, the Administration recommends that the Mayor and City Commission authorize the issuance of a Request for Proposals (RFP) for the FY 2022 CDBG funds, FY 2022 HOME funds and HOME -ARP funds, in order to identify and fund eligible organizations who provide eligible public services, affordable housing, supportive services and capital improvement projects; and WHEREAS, HUD's allocation for CDBG funds and HOME funds has not been determined; and WHEREAS, CHDOs are affordable housing development organizations that request certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that serve households earning up to 80% of Area Median Income (AMI), which funding requires that at least fifteen percent (15%) of HOME funds must be reserved for specific activities to be undertaken by the CHDO; and WHEREAS, HUD has issued a temporary suspension of the CHDO reservation requirement through December 31, 2023; therefore, the City Administration seeks to allocate the FY 2021 reservation to the proposed RFP award, for use by an agency with a viable project aligned with the City's Consolidated Plan; and WHEREAS, the 2018-2022 Consolidated Plan has identified the following needs: • affordable housing; • economic support activities (for very low -and moderate -income families); • youth programs; • elder programs; • public services; and WHEREAS, the CDBG funding allocation will set aside $40,000 for the City's elderly grocery program; and WHEREAS, the City Administration will review RFP submissions to ensure that projects align with the needs identified in the 2018-2022 Consolidated Plan and will evaluate project feasibility; and WHEREAS, the 2022 Annual Action Plan for federal funds is a requirement under the HUD formula grant programs, which include the CDBG and HOME Programs and must be submitted by August 15, 2022; and WHEREAS, the City will also use the results of the RFP to prepare and submit to HUD the 2022 Annual Action Plan, to be approved by the City Commission, based on activities that the City wishes to fund from the FY 2022 entitlement allocations; and WHEREAS, the Administration recommends approving the issuance of the RFP, a copy of which is incorporated herein by reference and attached to the City Commission Memorandum that accompanies this Resolution. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the issuance of a Request for Proposals (RFP) for FY 2022 Community Development Block Grant (CDBG) funds, FY 2022 Home Investment Partnerships (HOME) funds and HOME American Rescue Plan Act funds to fund eligible public services, affordable housing activities, supportive services and capital improvement projects from these U.S. Department of Housing and Urban Development (HUD) entitlement allocations, in accordance with the priorities delineated in the 2018-2022 Consolidated Plan. PASSED and ADOPTED e2d ATTEST: C`r Rafael E. Granado, City Clerk JAN 2 5 2022 day of �G u4 �y , 2022. Dan Gelber, Mayor APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney a�,� Date C7 -Resolutions N MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: January 20, 2022 SUBJECT.A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR FY 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND FOR FY2022 HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS, AND HOME AMERICAN RESCUE PLAN FUNDS (HOME -ARP) TO FUND ELIGIBLE PUBLIC SERVICES, AFFORDABLE HOUSING ACTIVITIES, SUPPORTIVE SERVICES AND CAPITAL IMPROVEMENT PROJECTS FROM THESE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ENTITLEMENT ALLOCATIONS, IN ACCORDANCE WITH THE PRIORITIES DELINEATED IN THE 2018-2022 CONSOLIDATED PLAN. RECOMMENDATION The Administration recommends approving the Resolution. M. 0 I(c3;T61tP,17l,��1C�I� 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 receives an annual allocation of HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five - Year -Consolidated Plan, which establishes the strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented and refined by the City's annual submission of a One - Year Action Plan, which delineates the specific projects and activities funded by each year's HUD allocation. Historically, the City's CDBG funds have been used for public services, housing, and public facilities improvements, while HOME funds have been used for affordable rental housing and first-time homeownership. On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 for the HOME Investment Partnerships Program ("HOME -ARP") into law, which provides funding to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses. On September 22, 2021, the City received a transmittal from the local field office of the HOME -ARP allocation of $2,245,387, which must be a)pended by September 30, 2030, on eligible activities to address the need for homelessness and supportive Page 340 of 1313 services, as described in the One-YearAction Plan for FY 21. ANALYSIS The City's annual HUD allocations fluctuate from year to year. HUD has not yet released award amounts for the FY 2022 (October 1, 2022 -September 30, 2023) CDBG and HOME programs. Therefore, as in prior years, the City will base projections on the amount received for FY 2021 (October 1, 2021 - September 30, 2022) and can adjust once HUD releases actual award amounts: FY 2020 CDBG $991,531 HOME $619,533 HOME -ARP $2,245,387 The CDBG program supports programming that benefits low to moderate- income persons through direct public services and capital improvements. The program has the following expenditure limitations: • Administration and Planning cap: 20% of award • Public Services Cap: 15% of award (public services programming assisting low- to moderate - income residents such as groceries for the elderly, youth services, rent assistance, homeless services, etc.) The City has funded a variety of Public Services with CDBG funding in the past including: • Elder services and community referral information (UNIDAD of Miami Beach) • Grocery delivery for the elderly (Housing and Community Services) • Rent/utility assistance as a homelessness prevention strategy (Housing and Community Services) • After school and summer camp youth prograrnming (Boys and Girls Club of Miami — Flamingo Park) • Youth Leadership Program (Police Athletic League- Flamingo Park) • Childcare services (Little Havana Activities & Nutrition Center and Raindrop Child Care) For the past several years, the City has prioritized CDBG and HOME funds to address significant capital needs in its residential portfolio that were acquired from Miami Beach Community Development Corporation (MBCDC) with extensive repair needs. The City has also awarded the Housing Authority of the City of Miami Beach (HACMB) with rehabilitation funds beginning in FY 2019. The City is currently funding the following affordable capital projects: • Lottie Apartments Rehabilitation • Neptune Apartments Rehabilitation • Madeleine Village Apartments (including the seawall) rehabilitation • Corals Apartment Rehabilitation The HOME Program supports the creation and retention of affordable housing to benefit low-income persons. The program has the following expenditure limitations: • Administration Cap —10% of award • Community Housing Development Organization (CHDO) Cap —15% of award CHDO's are affordable housing development organizations that request certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that Page 341 of 1313 serve households eaming up to 80 percent of Area Median Income (AMI). At least fifteen (15) percent of HOME funds mast be set aside for specific activities to be undertaken by a CHDO. In addition, up to five (5) percent of HOME CHDO funds may be used for operating assistance, which can be utilized for costs such as salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; and equipment, materials and supplies. The City certified Miami Beach Community Development Corporation as a CHDO on April 23, 2021 and allocated FY 21 funds in the amount of $30,796 for operating expenses. However, HUD issued a temporary suspension of the CHDO reservation through December 31, 2023. The set-aside CHDO funds for FY 2022 will be allocated to the RFP award to an agency with a viable project aligned with the City's Consolidated Plan. HOME -ARP funds must be used to primarily benefit qualifying populations through four eligible activities: (1) development and support of affordable housing; (2) tenant -based rental assistance (TBRA); (3) provision of supportive services; and (4) acquisition and development of non -congregate shelter units. The following needs have been identified in the 2018-2022 Consolidated Plan: • Affordable housing • Economic support activities (assisting very low-, low- and moderate -income families) • Youth programs • Elder programs • Public services The Administration is seeking authorization to issue a Request for Proposals (RFP) to solicit eligible affordable housing, capital, and public service projects within the City. The City will review RFP submissions to ensure that projects align with the identified needs and evaluate project feasibility and compliance with HUD rules and regulations. The issuance of an RFP is one of the approved methods for funds distribution for these funds. The table below delineates the estimated funding available for this RFP from the CDBG program. Funds will be set-aside for the Elderly, Grocery Program administered by the Office of Housing and Community Services. This program has been funded by CDBG since 2015 with additional leverage funding provided through the City's General Funds. The program assisted 137 elderly Miami Beach residents with monthly grocery delivery services in the 2020/21 program year. This is a program in high demand, particularly during the coronavirus pandemic, helping the elderly practice social distancing. The tables below delineates the estimated funding available for this RFP. CDBG Funds (estimated) CDBG Entitlement $991,531.00 City Administration (20%) Public Services Cap (15%) $198,306.00 $148,729.00 PS Set -Aside for Elderly Grocery Program $40,000.00 Public Services Funds Available $108,729 Funding Available for other projects $644,496.00 The table below delineates the estimated funding available for this RFP from the HOME program. H O M E E ntitlement $619,533.00 City Administration (10%) $61,953.00 Page 342 of 1313 Funding Available $SS7,580.00 HOME-ARP00 Program Administration (15%) $ 336,808.05 Rental Housing (acquisition, construction and $1,400,000 rehabilitation) Supportive Services $ 396,309.60 Non -Profit Capacity Building $112,269.35 The attached draft RFP will be submitted electronically via Neighborly Software to reduce paper and facilitate submission. The City must submit its FY 2022 One -Year Action Plan for HUD's approval by August 15, 2022. As such, it is necessary to begin the screening process for proposed activities. The process includes: • release of the RFP; • review by staff to determine complete/eligible RF P submissions; • evaluation/scodng/recommendations by the Affordable Housing Advisory Committee (AHAC); • review of AHAC recommendations with the Administration; • 30 -day Comment Period to receive public input; • City Commission approval; and, • finally, submission to HUD. HUD has not provided notification of the amount of FY 2022 funding allocations. However, based on the HUD -imposed timeline for preparation and submission of the Action Plan, the Administration recommends authoriang the City Manager to issue the attached Requests for Proposals (RFPs) for eligible activities to be funded from the City's FY 2022 entitlement allocations from HUD. The RFP will be issued with a qualification that the award of funds is subject to the City's actual HUD funding award. SUPPORTING SURVEY DATA Results from the 2019 Resident Survey show that 79.3% of residents reported that they are satisfied with the City as a place to live. The CDBG and HOME programs provide investment in the community supporting local programs and development, thus contributing to a positive perception of the City as a great place to live. FINANCIAL INFORMATION CDBG and HOME program funds will be used for awarded proposals. CONCLUSION The release of this RFP is a critical piece to the planning process for the FY2022Action Plan. The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP responses to ensure compliance with HUD deadlines. Applicable Area Citywide Is this a "Residents Right Does this item utilize G.O. Page 343 of 1313 to Know" item, pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Mobility - Support affordable, compatible workforce housing. Legislative Tracking Housing and Community Services ATTACHMENTS: Description ❑ Resolution Page 344 of 1313