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99-23190 RESO RESOLUTION NUMBER 99-23190 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY HOUSING REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH JOSEPH S. BARELLA IN THE AMOUNT OF $37,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH THE MULTI-FAMILY HOUSING REHABILITATION PROGRAM FOR THE REHABILIT A TION OF THE PROPERTY LOCATED AT 117 SOUTH SHORE DRIVE, MIAMI BEACH, TO PROVIDE FIVE (5) RENT AL DWELLING UNITS FOR INCOME-ELIGIBLE TENANTS. WHEREAS, the City has established a program to encourage the rehabilitation of existing substandard multi-family buildings using funds from the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the Multi-Family Housing Rehabilitation Program (Program) is administered by the Housing Division of the City's Community/Economic Development Department; and WHEREAS, on July 16, 1997, the Mayor and City Commission approved and adopted revised Guidelines for the Multi-Family Housing Rehabilitation Program; and WHEREAS, the City has received an application under the Program Guidelines for funding the rehabilitation of an existing building located at 117 South Shore Drive, which contains nine (9) apartment units, consisting of: six (6) one-bedroom units and three (3) two-bedroom units; and WHEREAS, the Owner of this property, Joseph S. Barella (Owner) has agreed to offer a minimum of five (5) of the nine (9) residential units at reduced rental rates for a minimum of five (5) years as available rental housing; and WHEREAS, the City's Loan Review Committee, at its March 26, 1999 meeting, reviewed the application for assistance and recommended funding for the proposed rehabilitation project in the amount of $37,000 for approval by the Mayor and City Commission; and WHEREAS, the Administration now requests that the attached Matching Grant Agreement be approved by the Mayor and City Commission and executed by the Mayor and City Clerk. 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 authorized to execute the attached Multi-Family Housing Rehabilitation Program Matching Grant Agreement with Joseph S. Barella in the amount of $37,000 in Community Development Block Grant (CDBG) Program Funds through the Multi-Family Housing Rehabilitation Program for the rehabilitation of the property located at 117 South Shore Drive, Miami Beach, to provide five (5) rental dwelling units for income-eligible tenants. PASSED AND ADOPTED THIS 9th DAY OF June , 1999. ~ MAYOR ATTEST: ~} rev-clv-- ROBERT PARCHER, CITY CLERK 117 _saSH. RES APPROVED ~ TO FOR1,A & LANGUAGE & FOR EXECUTION 1iL~ City Attorney b /2-ly Date CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.fJ.us COMMISSION MEMORANDUM NO. ~ 0 I - '1Q TO: Mayor Neisen O. Kasdin and Members of the City C mission DATE: June 9,1999 FROM: Sergio Rodriguez City Manager ,. SUBJECT: A RESOL ION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY HOUSING REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH JOSEPH S. BARELLA IN THE AMOUNT OF $37,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH THE MULTI-FAMILY HOUSING REHABILITATION PROGRAM FOR THE REHABILITATION OF THE PROPERTY LOCATED AT 117 SOUTH SHORE DRIVE, MIAMI BEACH, TO PROVIDE FIVE (5) RENTAL DWELLING UNITS FOR INCOME-ELIGIBLE TENANTS. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: The City administers the Multi-Family Housing Rehabilitation Program through the Housing Division of the Community and Economic Development Department. Since 1981, the City has provided financial assistance to property owners through this Program resulting in the successful renovation of over 1,250 units of rental housing. The Multi-Family Housing Rehabilitation Program operates with federal funds from the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program, and the HOME Investment Partnerships Program. The Program Guidelines, adopted by the Mayor and City Commission on July 16, 1997, require that buildings rehabilitated thereunder be maintained in rental use for at least five (5) years. The proposed Matching Grant Agreement with the property owner includes stipulations requiring repayment to the City of the full amount of the Grant in case the Owner fails to perform the requirements of the Agreement. AGENDA ITEM c-IG DATE~ COMMISSION MEMORANDUM Page 2 ANALYSIS: 117 South Shore Drive - Funding Recommended: $37,000 The property consists of a two-story, nine (9) unit apartment building at 117 South Shore Drive, containing six (6) one-bedroom units, and three (3) two-bedroom units. The building was built in 1949 as an apartment building, and was done in Post-War Modem style. The building is not included in the City's register of historic buildings, and is not considered architecturally significant. The building is a concrete block structure with a total of approximately 5,862 square feet of enclosed space. The site consists of Lot 14 of Block 56, of NORMANDY SHORES GOLF COURSE SUBDIVISION, according to the plat thereof recorded in Plat Book 44 at Page 62, of the Public Records of Miami-Dade County, Florida. The lot is 63.17' x 120' and contains 7,580 square feet, or 0.17 acres, more or less. The Owner proposes to rehabilitate the building maintaining the current layout which provides an average of 651 square feet per unit. The Owner has estimated the cost of rehabilitation to be $74,000, including labor, material, contingency, architectural and related fees. The scope of work proposed includes the following: new tile roof, new electrical wiring, hurricane shutters, new appliances, the installation of new central Air Conditioning units, interior and exterior painting, fumigation (tent for termites), and exterior landscaping. According to the Miami-Dade County Tax Assessor, in 1998 the assessed value of the building was approximately $120,246. The rehabilitation cost is estimated at $74,000, which represents 62 percent of the assessed value of the building. Under the rules of the Multi-Family Housing Rehabilitation Program, the rents for five (5) of the nine (9) apartments (56%) are to be provided for tenants earning 80% or less of the Area Median Income for a minimum period of five (5) years. The rents for these units are to be established in accordance with the Fair Market Rent schedule issued by HUD for apartments. Currently, the approved rents under this schedule are: one bedroom units - $525 per month and two-bedroom units - $657 per month. These rents exclude any utility allowance. The remaining four (4) apartments may be leased at market rents without restriction. The Owner is estimating that the market rate one- bedroom units will rent for $700 per month, and the two-bedroom units will rent for $800 per month. On March 26, 1999, the City's Loan Review Committee (LRC) met and reviewed the application for funding for this property and voted to recommend approval by the Mayor and City Commission. The LRC recommended a Matching Grant of $37,000 towards the rehabilitation costs for this property. Under the Program Guidelines, the maximum matching grant that this property can qualify for is $75,000 (based on: 6 units x $7,500 per unit for one-bedrooms = $45,000, plus 3 units x $10,000 per unit for two-bedrooms = $30,000). COMMISSION MEMORANDUM Page 3 A review of City and County records for the property indicates that there are no unpaid water or sanitation bills and taxes are paid for the current year. In accordance with the Program Guidelines, the rehabilitation proposed will bring the property into compliance with the City's Property Maintenance Standards. Currently, there are nine (9) tenants in the building. Owner has estimated that these tenants may be required to vacate their units for approximately four (4) days during the construction activities. A budget of $1 ,800 has been allocated for the purpose of reimbursing the tenants for their lodging costs during this period. The Owner The Owner, Joseph S. Barella, purchased the property at 117 South Shore Drive in October of 1998. In addition to this property, Mr. Barella currently owns and manages four (4) other buildings in the Normandy Isle area: 165 South Shore Drive - 4 units, 133 South Shore Drive - 4 units, 125 South Shore Drive - 4 units, and 95 South Shore Drive - 4 units. The Administration appraised the Loan Review Committee that Mr. Barella is an employee of the City of Miami Beach, and has served the City for 26 years. His current position is Streetlight Operations Supervisor with the Department of Public Works. The Loan Review Committee made its recommendation for funding contingent on the Administration requesting and obtaining a Legal Opinion on conflict of interest from the Office of the City Attorney. On May 14, 1999, the Office of the City Attorney rendered Legal Opinion CAO# 99-7: Conflict of Interest: City Employee Seeking Use ofCDBG Funds. The Legal Opinion indicates that no conflict of interest exists under the federal conflict provision nor under local law. Mr. Barella is not a staff member of the Community and Economic Development Department, which administers CDBG Program funds, and as an employee of the Department of Public Works has no decision-making power or access to inside information of the CDBG Program. CONCLUSION: The Administration recommends adoption of the attached Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, authorizing the Mayor and City Clerk to execute the attached Multi-Family Housing Rehabilitation Program Matching Grant Agreement with Joseph S. Barella in the amount of $37,000 in Community Development Block Grant (CDBG) Program Funds through the Multi-Family Housing Rehabilitation Program for the rehabilitation of the property located at 117 South Shore Drive, Miami Beach, to provide five (5) rental dwelling units for income-eligible tenants. SR/C~~7s-KC/C.r lI7_SOSHMEM This instrument prepared by: Raul Aguila, First Asst. City Atty. 1700 Convention Center Dr. Miami Beach, FL 33139 MULTI-FAMILY HOUSING REHABILITATION PROGRAM MATCHING GRANT AGREEMENT THIS AGREEMENT entered into this~ day of~99, by and between: JOSEPH S. BARELLA, whose address is 133 SOUTH SHORE DRIVE, MIAMI BEACH, FLORIDA, 33141, hereinafter referred to as "Owner" who is the legal owner of the property at 117 South Shore Drive, Miami Beach, Florida, 33141 more particularly described as: Lot 14 of Block 56, of NORMANDY SHORES GOLF COURSE SUBDIVISION, according to the plat thereof recorded in Plat Book 44 at Page 62, of the Public Records of Miami.Dade County, Florida, also known as 117 South Shore Drive, hereinafter referred to as "Project", and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter called "City": WITNESSETH: WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter referred to as "Program", designed to provide financial assistance to property owners of deteriorated and substandard multi-family residential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on July 16, 1997, which are deemed incorporated by reference and made a part of this Agreement; and WHEREAS, Owner as the legal Owner of the Project described above, has agreed to rehabilitate said Project in accordance with the Guidelines of the Program; and WHEREAS, the City's Loan Review Committee on March 26, 1999 recommended approval of assistance to the Project under the Program, and the provision of assistance has been approved by the Mayor and City Commission, subject to certain conditions, including the requirement that the Owner and the City enter into this Agreement; and WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided hereunder derive from federal Community Development Block Grant funds appropriated to the City by the U.S. Department of Housing and Urban Development, for the uses and purposes herein referred to, and accordingly it is acknowledged and agreed that this Agreement is entered into after compliance by the parties with all applicable provisions of Federal, State and local laws, statutes, rules and regulations as they may apply to this Agreement, which certain of said regulations are incorporated herein as more fully set forth in Attachment "A". NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration of the matching grant monies which are to be paid by City to the Owner, which consideration is hereby acknowledged by the parties, the parties do agree as follows: 1 (1) Any amendments, alterations, or variations to this Agreement will only be valid when they have been reduced to writing and duly signed by the parties. (2) It is understood and agreed by and between the parties that the Guidelines, as they may be amended from time to time, represent the scope of services and responsibilities of the parties under the Program and the parties agree to abide by and comply with their roles and responsibilities under the Guidelines as set forth therein. (3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of the Program and contract documents. (4) Rehabilitation of the Project shall be done in accordance with the applicable codes, ordinances and statutes of the State of Florida, Miami-Dade County, and of the City. (5) The maximum Matching Grant amount to be provided under this Agreement is Thirty-Seven Thousand Dollars ($37,000.). This amount is to be used only to cover the cost of rehabilitating the buildings, as a match for funds paid by the Owner on at least a dollar-for- dollar basis. The work is to be done in accordance with the application filed by the Owner with the City, reviewed and recommended by the City's Loan Review Committee on March 26, 1999, and subsequently approved by the Mayor and City Commission. (6) It is understood and agreed by and between the parties that none of the obligations of the City assumed or created hereunder shall be general obligations of the City and none of the same shall be enforceable against the City generally. Any and all obligations, liabilities and commitments of the City hereunder, shall be limited to the payment of a matching grant amount of Thirty-Seven Thousand Dollars ($37,000) as specified herein. No other fiscal, legal, equitable or contractual duty or obligation is assumed by the City, and the Owner by executing this Agreement so agrees. The City desires to enter into this agreement only if in so doing the City can place a limit on the 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 $37,000. Owner hereby expresses its willingness to enter into this Agreement with Owner's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $37,000, less the amount of all funds actually paid by the City to Owners pursuant to this agreement. Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in an amount in excess of $70,000 which amount shall be reduced by the amount of the funding actually paid by the City to Owner pursuant to this agreement, for any action or claim for breach of contract arising out of the performance or non-performance 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 on the City's liability as set forth in Florida Statutes, Section 768.28. (7) The matching grant amount shall be paid to the Owner and shall be disbursed during the rehabilitation of the property. After this matching grant payment is made by the City to the Owner and applied by the Owner according to the procedures set forth herein, the City shall be automatically discharged from any and all obligations, liabilities and commitments hereunder to Owner or any third person or entity provided, however, that this Section shall not excuse the continued compliance by Owner with the terms of this Agreement and the federal program requirements. Owner, for consideration of One Dollar ($1.00) and other 2 good, valuable, separate and distinct consideration, receipt of which is hereby acknowledged, hereby saves and holds harmless, indemnifies and protects the City, its officers and employees from any and all obligations, liabilities, commitments, actions, claims, causes of action, suits or demands arising or accruing by virtue of this Agreement or the Project contemplated hereunder. (8) The following procedures must be followed, prior to the commencement of work on this project: a) Owner must submit a written request to the City's Housing Section of the Community/Economic Development Department ("CEDD") for a Pre-Construction Conference, which must be attended by all contractors and subcontractors. This request must include the names and addresses of the proposed contractors and sub-contractors, including the names of the principal owners of corporate entities, and an indication whether each of the contractor's portion of the total project value will exceed $10,000. This process requires at least ten (10) days advance notification. b) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded project. The names submitted will be checked against the "Consolidated List of Debarred, Suspended & Ineligible Contractors and Grantees" monthly listing published by the Federal Government. c) If the Building is more than 50 years old, Owner's Architect or Engineer must obtain and submit to the City a letter indicating that the plans for the project have been reviewed by the State Historic Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable to that office. d) A set of final approved plans and specifications for the project approved by the City's Building Department must be submitted to the Housing Section of the CEDD. e) Building permits must be obtained as required by applicable City Ordinance. Also, any other necessary permits and applicable approvals from any other governmental authorities must be obtained, if required. f) A copy of the contract between the Owner and a licensed General Contractor must be submitted to the City which includes commencement and completion dates, contract amount, scope of work, Federal Labor Standards Provisions (HUD Form 4010), and applicable federal regulations and standards. g) The contractor selected must submit evidence prior to the commencement of work, satisfactory to the City's Insurance Manager, of the following insurance coverage: 1) Liability insurance against claims arising out of accident or occurrence on the property, in a minimum amount of $1,000,000. The City of Miami Beach must be named as additional insured in the policy. and 2) Proof of worker's compensation coverage; and such other forms of insurance as the City's Risk Manager may reasonably require. h) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the actual contract price. i) The Owner must provide a Lien Statement from the City's Finance Department demonstrating that it is current with the legal and financial obligations and/or payments on the property, with the City. 3 When the above requirements have been met, the Housing Section of the CEDD and the Building Services Division will jointly issue a "Notice to Proceed" on the project. If the Owner or contractor does not fully comply, or if any work commences prior to the issuance of the Notice to Proceed, then such work may, at the discretion of the City, not be reimbursed under the Program, and could constitute a default under this Agreement. Exception: Subject to the prior approval of the Housing Section of the CEDD and the Building Services Division, emergency repairs can be undertaken on the Project. (9) In consideration for the performance of Owner of its role and responsibilities set forth in this Agreement, the City agrees to pay to Owners, the sum of Thirty-seven Thousand Dollars ($37,000), as the total of the matching grant described herein. Said total shall be disbursed by the City to the Owner during construction as follows: During the construction phase, and not more often than once a month, a payment may be requested equivalent to ninety percent (90%) of the pro-rata portion of the value of the work completed in the previous period, as certified by the Owner's Architect or Engineer, and confirmed by the Housing Section of the City's Community and Economic Development Division. The City's payments hereunder will be computed based on the ratio of the matching grant amount to the total estimated construction cost. In the event the actual cost is less than the estimate, the amount of the City's Matching Grant will be reduced proportionately, so that the City's portion of the total cost is never higher than 50% of the total cost. The final ten percent (10%) of the matching grant payment shall be paid following the completion, approval and acceptance of the rehabilitation work and related documentation by all the governmental agencies and authorities having jurisdiction over the Project, including compliance with the requirements of the Davis Bacon Act, if applicable, and as set forth in the Guidelines. (10) Owner agrees to comply with the following requirements during and after construction begins: a) The Owner must announce and publicize the source of the public funds provided for the project. A construction sign must be displayed on the site during the construction phase, with the design and location to be approved by the City. The sign, to be provided and paid for by the Owner, must be maintained for the duration of the construction work. The City will provide detailed information on the dimensions and appearance of the sign. b) The Owner's General Contractor shall be responsible for compliance with all pollution and asbestos control standards of the concerned governmental agencies. It shall be the Contractor's responsibility to obtain required inspections from these agencies. c) Federal regulations require that all tenants in housing rehabilitated with federal funds, be provided with information on the following: that the property may contain lead-based paint; of the hazards, symptoms and treatment for ingestion of lead-based paint; of the precautions to be taken; of the availability of blood level screening for children under seven years of age; and that in the event lead-based paint is found in the property, appropriate abatement procedures must be undertaken by owners. Copies of a brochure will be provided to Owner by the City. This information must be provided by the Owner to each tenant, and the Owner must retain evidence of having provided this notification to the tenant in a file for the life of this Agreement. d) After the property has been rehabilitated, it must conform to the applicable codes, ordinances and statutes of the City and of Miami-Dade County, including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance 4 Standards. (11) It is understood and agreed by Owner that for at least five (5) years beginning on the date of issuance of a final Certificate of Completion, a minimum of five (5) apartment units (56%) will be occupied by low and moderate income households at affordable rents. Low and moderate income households means the combined income of all members of the household does not exceed 80% of the Area Median Income, as published by HUD. All tenants must be offered a written lease. A "Household Income Certification Report" will have to be completed for every rental unit claimed as meeting the above requirements at least annually. This report must be submitted to the Housing Section of the CEDD within ten (10) days after the commencement of each lease, and an updated form must be submitted at least annually thereafter during the month of October, for the fiscal year ended September 30. The following income limits apply as of this date, but may be revised annually: 1 person $25,000 2 persons $28,550 3 persons $32,100 4 persons $35,700 Monthly rents for units occupied by low and moderate income households are considered affordable if they do not exceed the "40th Percentile Fair Market Rents for Existing Housing", published by HUD, as of this date, but subject to revision annually. Currently the rent for a one bedroom apartment is $563, including a utility allowance of $38 per month, for a net rent of $525 per month excluding utilities; the rent for a two-bedroom apartment is $702 per month, which includes a $45 per month utility allowance, for a net of $657 per month. (12) It is understood by Owner that if the property is converted to condominiums, sold, or withdrawn from rental use within five (5) years after the Final Certificate of Completion is issued, the full amount of the matching grant payment will become due and payable to the City. (13) Owner shall deliver to the Housing Section of the CEDD, by October 30th of each calendar year, its signed notarized report in form and substance acceptable to the City, which includes the names of tenants, unit type, family income, rents charged, and occupancy factor of each unit for the prior year. This report will continue to be required through the September 30th following the expiration of the five (5) year period after the date of issuance of a Final Certificate of Completion. (14) It shall be deemed a default of this Agreement if Owner does not strictly comply with the terms, conditions, duties and procedures established herein for obtaining City consent to assignment or transfer as defined by this Section. In the event such consent is not obtained in the manner prescribed herein, the City shall be entitled to declare a default, cancel this Agreement and resort to its rights and remedies against the defaulting party. Owner shall not assign any interest in this Agreement and will not transfer any interest in the same without the prior written consent of the City, upon approval by the Loan Review Committee. In the event Owner is a corporation, limited partnership or other incorporated or artificial business entity, a transfer of more than ten percent (10%) Ownership interest of its stock by pledge, sale or otherwise (except a transfer of partnership interests in connection with the syndication of limited partner interests in the Ownership, which shall not require any consent hereunder); or if Owner makes an assignment for the benefit of its creditors or uses this Agreement as security or collateral for any loan; or if Owner is voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if Owner has a receiver appointed over any of its 5 properties; or if Owner does not satisfy in full or appeal any judgment for the sum of $5,000 (or more) within thirty (30) days from its' rendition; or if Owner is involved in a bulk transfer of its business, then, in that event, each of the foregoing actions will be deemed an assignment of this Agreement and require the prior written consent of the City, upon approval by the Loan Review Committee. In the event Owner is a trust, which includes, without limitation, a land trust and a trust company, any change in the person or entity who is the trustee or any change in the heirs or beneficiaries of such trust shall be deemed an assignment under this Section and require the prior written consent of the City, upon approval by the Loan Review Committee. Regardless of the type of entity Owner is defined to be, a merger, insolvency, bankruptcy, dissolution, consolidation, conversion, liquidation, or appointment of a receiver for such Owner shall each be deemed an assignment of this Agreement and will require the prior written consent of the City upon approval by the Loan Review Committee. (15) Upon a default of a written indebtedness, including without limitation: a note, mortgage, guarantee, and this Agreement, Owner waives notice, presentment and/or demand of default. (16) For purposes of this Agreement and the documents referenced or incorporated within it, a default shall include without limitation, the following acts or events of Owner, or its agents, servants, employees, or contractors: (a) Owner's failure to (i) commence work within thirty (30) days from the date of issuance of the Notice to Proceed by the City, or (ii) diligently pursue construction and timely complete the project by securing a Final Certificate of Completion within twelve (12) months from the date of this Agreement, or (iii) provide the documentation required to make the final payment of the matching grant, as indicated in the Guidelines, within thirty (30) days from the date of issuance of a Final Certificate of Completion. Work shall be considered to have commenced and be in active progress when, in the opinion of the City, a full complement of workmen and equipment is present at the site to diligently incorporate materials and equipment into the structure throughout the day on each full working day, weather permitting. (b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning laws, rules, regulations and codes. (c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan document executed by Owner in favor of a Lender. (d) Owner's insolvency or bankruptcy. (e) Owner's failure to maintain the insurance required by the City and/or Lender. (f) Owner's failure to correct defects within a reasonable time as defined herein. (g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines or applicable laws, rules and regulations pertaining hereto which are referenced by this Agreement. (h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within 60 days from the date of filing of any such lien. 6 (i) An assignment or transfer of this Agreement or any interest therein by Owner which does not comply with the procedures set forth herein. (17) In the event of a default, the City may, thirty (30) days after mailing to Owner a notice of such default as set forth herein, automatically cancel and terminate this Agreement without liability to any party to this Agreement. If the default is not fully and satisfactorily cured within thirty (30) days of the City mailing notice of such default to Owner, to the full satisfaction of the City, at the expiration of said thirty (30) day period, this Agreement may, at the City's sole option and discretion, be deemed automatically canceled and terminated and the City fully discharged from any and all liabilities, duties and terms arising out of or accruing by virtue of this Agreement and the Project, all funds paid to the Owner hereunder shall be immediately due and payable to the City. (18) In the event of a default, the City shall additionally be entitled to bring any and all legal and/or equitable actions which it deems to be in its best interest in Miami-Dade County, Florida, in order to enforce the City's rights and remedies against the defaulting party. The City shall be entitled to recover all costs of such actions including reasonable attorney's fees to the extent allowed by law. The Owner waives its right to jury trial and its right to bring permissive counterclaims against the City in any such action to the extent allowed by law. (19) If the property is occupied at the time the application is submitted the Owner must submit a tenant roll. Additionally, the Owner must submit for each unit tenant names, lease terms, duration of occupancy, rent currently paid, with an indication as to whether utilities are included, family size, family income, and any other information determined necessary by the CEDD to assess the need for temporary relocation. If a property is occupied and temporary relocation of the tenants is required during the rehabilitation or construction, the City will reimburse up to fifty percent (50%) of "eligible" temporary relocation expenses incurred by the property owner in accordance with the budget and plan submitted as part of the application and approved by the City. "Eligible" expenses will be determined in accordance with the provisions of Handbook 1378: Tenant Assistance. Relocation and Real Property Acquisition, issued by HUD, as amended. (20) The Owner must pay these expenses directly, or reimburse the tenants for their payments, and document all such expenditures carefully. Upon submittal of a detailed accounting, to the satisfaction of the City, of all such payments or reimbursements made each month for the duration of the project, the City will reimburse the owner up to 50% of those eligible expenses incurred for this purpose. Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such permanent relocation shall be borne by the Owner. (21) The Owner agrees to send, or to permit the City or its agent to send, federally required notices to tenants in a timely manner. These notices include, but are not limited to: General Information Notice, Notice of Non-displacement and a Notice of Eligibility. Owner shall make every effort to assure that temporary accommodations provided for tenants is decent, safe and sanitary, and that other living conditions are generally acceptable. The Owner will ensure that there is no increase in out-of-pocket housing expenses to the tenant. Those tenants who were in residence prior rehabilitation, and who received a "Notice of Non-Displacement", who elect to return to the property upon completion of the rehabilitation work are referred to herein as "Returning Tenants". Owner must agree to offer a unit to the Returning Tenants on the following terms, independently of the rent restrictions detailed herein a. Returning Tenants must be offered the same apartment previously occupied, or a unit 7 comparable in terms of size and amenities to the unit occupied prior to the rehabilitation. b. Returning tenants must be offered a standard lease for at least a 12 month period at the same rent being charged before the rehabilitation. c. Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following the completion of the rehabilitation work, rent charged the Returning Tenant may be increased in an amount deemed reasonable by the City, and only if the amount of such proposed increase can be justified, based on documented increases in the operating costs of the property. d. Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted to the HUD Fair Market Rent, as specified in Chapter I, Section iv (h), if applicable, or to market rental rate if the Tenant's income is greater than 80% of the Area Median Income. (22) Notices and demands: All notices, demands, correspondence and communications between the City and the Owner shall be deemed sufficiently given under the terms of this Agreement if dispatched by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: If to the City: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: City Manager with copies to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: (1) City Attorney's Office and: (2) Housing Coordinator, CEDD If to the Owner: Joseph S. Barella 133 South Shore Drive Miami Beach, FL 33139 or to such address and to the attention of such other person as the City or the Owner may from time to time designate by written notice to the other. (23) It is understood and agreed that the City shall record this Agreement, with the Clerk of the County Court, Miami-Dade County, Florida and shall furnish the Owner with conformed copies of the recorded instrument within sixty (60) days of the recordation of this Agreement. (24) The Owner agrees that upon completion of the rehabilitation hereunder, it will undertake an affirmative marketing program in accordance with 24 CFR Part 570.601-2. At a minimum, the Owner must implement an affirmative marketing program that provides information to, and attracts eligible persons in the housing market area to the available housing receiving assistance from CDBG funds, without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital status, familial status, or age. The affirmative marketing requirements and procedures adopted by the Owner shall include, but not necessarily be limited to, the following: (a) Methods for informing the public and potential tenants about Federal Fair Housing Laws 8 and the applicable affirmative marketing policy; (b) Requirements and practices for carrying out the affirmative marketing plan; (c) Procedures to be used to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach (e.g., use of community organizations including, but not limited to: churches, employment centers, community centers, fair housing groups, housing counseling agencies, community development corporations, and the Housing Authority of the City of Miami Beach) (d) Records to be kept describing actions taken to affirmatively market units and records to assess the results of these actions, including newspaper clippings of all vacant units advertised, copies of brochures, pamphlets, and articles used in advertising units, lists of community organizations used in disseminating information, records of referrals, and the results of Owners and referrals, and documentation of any other special outreach activities conducted. (e) A description of how the City can assess the success of affirmative marketing actions; and (f) A certification that states that the Owner agrees to adhere to whatever corrective actions the City requires to be taken where affirmative marketing requirements are not met. (g) Owner agrees to post in a visible location within the building a poster provided by the City advising the tenants of the City's participation in the project. IN WITNESS WHEREOF, the Owner, and the City have caused this Agreement to be executed by their respective duly authorized officers, the day and year first above written. THE PARTIES HERETO STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING AGREEMENT AND THE CITY OF MIAMI BEACH MULTI-FAMILY REHABILITATION PROGRAM GUIDELINES, AND KNOWTHE CONTENTS THEREOF AND FULLY REALIZE THEIR MEANING AND SIGN THIS AGREEMENT AS THEIR OWN FREE ACT. WITNESS: Owner: C-.' "') tame. CITY OF MIAMI BEACH By: 111 Neisen O. Kasdin, Mayor ATTEST: _~cf raA(~ ROBERT PARCHER, CITY CLERK APPROVED AS T... FORM & lANGUAC ' & FOR EXECl.lT;G>\ 9 /vIt~ r;J#~J . STATE OF FLORIDA ) ) SS: COUNTY OF MIAMI-DADE) TheforegOi~S~..b. efore me, thi~ay of::JvI4P, 1999, by Joseph S. Barella who provide ~ s entification an~id not take an oath. ~~~;V;,~~ Name: NOTARY PUBLIC, State of Florida Commission NO C C S-3:::3:?~ My Commission Expires: ,~<.~~<.~~~.~<.w:.!...,<.<.<.<.,<.\<.<.<.<.<.<.<.<.<.<.~<.~<.<.<.<.<.<.<.<.<.<.<.<.<.<.<.~I ': /<~.'.~~~.. Arlllne PatriCia Cash. ) , ( ! J',.&" \ Notary Public State ofFlonda ) , . fl' '.' , ) . : \.~.~ !~.! Commission No. CC 533029 ) '.: ...'!.~!:"'?- My Commission Exp.03/3 1/2000 ~ : ( Bonded Throuib Fl.. Notary Service &; Bondiull Co. ) ~!Il!/l mill I N II (t ItNtt/lNNtltlt1t tltltltltltd STATE OF FLORIDA ) ) SS: COUNTY OF MIAMI-DADE) 'r Js m' The foregoing instrument was acknowledged before me, this _ day of ll. , 1999, by Neisen O. Kasdin, as Mayor of the City of Miami Beach, who is personally known to m nd d' not take an oath. OFFICIAL NOTARY SEAL LILLIAN BEAUCHAMP NarARY PUBLIC STATE OF FI.OI\fD^ COMMISSION NO. CC7]g172 L MY COMMISSIO~ !::'<I' Af'R.:..?~~::'!J(~/q: My Commission Expires: 10 4#W-A- !3.<,u{/ JuZt'7[i Name: L//I//fII/ 'AeQuel. 9/l1LJ NOTARY PUBLIC, state of Florida I Commission NO F:IDDHPI$ALLISTEVEIMUL T-FAMI117 _SOSHI117S0SH.AGM ATTACHMENT "A" OTHER FEDERAL REQUIREMENTS As the City of Miami Beach is providing this funding through federal funds, all parties agree to comply with the following statutes, regulations and executive orders, as they apply. These requirements are incorporated herein by reference. 1. Freedom of Information and Privacy Acts _ Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S.C. 552a). 2. Equal Opportunity - Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1; - Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended; - Executive Order 11063, as amended by Executive Order 12259; - Executive Orders 11246,11265, 12138 and 12432; _ Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170), as amended; - Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended; - The Age Discrimination Act of 1975 (42 U.S.C. 6101); - The Fair Housing Amendments Act of 1988. 3. Environmental Review - The National Environmental Policy Act (42 U.S.C. 4321, et seq); - The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508); - Environmental Review Procedures (24 CFR Part 58); - National Historic Preservation Act of 1966. _ National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973. 4. Lead Based Paint - Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq) as amended through H.C.D. Act of 1992; - HUD Lead Based Paint Regulations (24 CFR Part 35). 5. Asbestos - Asbestos Regulations (40 CFR 61, Subpart M); - U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos Regulations (29 CFR 191.1101). 6. Handicapped Accessibility - Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41). 7. Labor Standards - The Davis-Bacon Act (40 U.S.C. 276a) as amended; - The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); - Federal Labor Standards Provisions (29 CFR Part 5.5). 8. Community Development Block Grant Regulations (24 CFR Part 570). ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED. 11