97-22483 RESO
RESOLUTION NO 97-22483
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
AND ADOPTING REVISED GUIDELINES FOR THE CITY OF
MIAMI BEACH MULTI-FAMILY HOUSING REHABILITATION
PROGRAM.
WHEREAS, on March 18, 1981, the Mayor and City Commission approvecl
Guidelines establishing the "Multi-Unit Residential Rehabilitation Program" (predecessor
to the Multi-family Housing Rehabilitation Program) by Resolution Number 81-16603; am:1
WHEREAS, the Mayor and City Commission, on September 27, 1995, approvell
revised Guidelines for the Multi-Family Housing Rehabilitation Program by ResolutiOllI
Number 95-21728; and
WHEREAS, the City's Land Use and Development Committee, at a regular mee't:in!'1
held on June 10, 1997, reviewed the proposed Guidelines and recommended certailll
modifications which have been incorporated therein; and
WHEREAS, the City's Loan Review Committee, at a regular meeting held June 27,
1997, reviewed the revised Guidelines and recommended their adoption by the Mayor i:m<l
City Commission.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CIIT'"
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached revi::;e"l
Guidelines for the City of Miami Beach Multi-Family Housing Rehabilitation Program, ar~
hereby approved and adopted.
PASSED AND ADOPTED THIS
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ATTEST:
jl 0 ~d'" P UA- ~
CITY CLERK
APPROVED AS 10
fORM & LANGUAGE
& fOR EXECUTION
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COMMISSION MEMORANDUM NO. 6;;}.1-9J
TO:
Mayor Seymour Gelber and
Members of the City Co ission
DATE: July 16, 191 7
SUBJECT:
TWO RESOLU N OF THE MAYOR AND CITY COMMISSION OF TH IE
CITY OF MIAMI EACH, FLORIDA, AS FOLLOWS: a) A RESOLUTIIO I"
OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MI.I~nll'"
BEACH, FLORIDA, APPROVING AND ADOPTING REVISE [)
GUIDELINES FOR THE CITY OF MIAMI BEACH MUL TI-FANIIIL'f
HOUSING REHABILITATION PROGRAM; b) A RESOLUTION OF THE
MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACt'l,
FLORIDA, APPROVING A NON-SUBSTANTIAL AMENDMENT TO THiiE
CITY'S THREE-YEAR CONSOLIDATED PLAN, ADOPTED ON JUL"f 2111:.,
1995, AS AMENDED; INCREASING THE TERM OF AFFORDABILlTY
UNDER THE CITY'S MULTI-FAMILY HOUSING REHABILITATION
PROGRAM FROM THREE (3) YEARS TO FIVE (5) YEARS.
FROM:
Jose Garcia-Pedrosa
City Manager
Administration Recommendation:
Approve the Resolutions.
Background:
The Multi-Family Housing Rehabilitation Program (Program) was established by the Ci:y
in 1981 to provide financial assistance to property owners in order to encourage tt e
renovation of the existing rental housing stock and provide moderately priced rentaluni:s
for income-eligible tenants. The Program is currently funded with federal funds from W,O
sources: Community Development Block Grant (CDBG) and the HOME Investne,t
Partnerships Program.
The current Guidelines for the City of Miami Beach Multi-Family Housing Rehabilitatic n
Program (Guidelines), were last amended by the City Commission on September 27, 1~95.
Under these Guidelines, the Program offers two plans for grant assistance: 1) a matchir g
grant of up to fifty (50) percent of the cost of rehabilitation, used to reimburse constructic n
costs, or 2) an interest rate subsidy paid to a lender to reduce the effective interest cost
of a mortgage on the property down to a six percent (6%) rate. In accordance with He
City's Consolidated Plan, adopted on July 26, 1995, the term of affordability under'. tbe
Guidelines is three (3) years.
AGENDA ITEM
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DATE
COMMISSION MEMORANDU1i!J1
JULY 16, 19E?
PAGE ,2
Since its inception, the Program has successfully assisted in the rehabilitation of fortY-lire
(49) properties, containing 1,215 rental units. Forty-two (42) of these properties rena n
in rental use, containing 1,032 rehabilitated units, which represents eighty-five perce'lt
(85%) of all apartment units rehabilitated under the Program. Currently, eight (8) buildin~s
containing 234 units are subject to affordability restrictions under the Program.
In order to accommodate the changing demographics in our community, focus on tte
specific needs of the North Beach area, and ensure the continued success of this Progl'an,
the Administration initiated a process to modify the Guidelines. Accordingly, tte
Administration requested the City's Loan Review Committee (LRC) and the Communi:y
Development Advisory Committee (CDAC) to review the current Guidelines. At a meE:!tirg
held on September 17, 1996, these Committees jointly recommended revisions to tte
Guidelines.
Concurrently, funding from the federal HOME Investment Partnerships (HOME) Progra n
has been incorporated into the Multi-family Housing Rehabilitation Program for the fir;t
time. Therefore, the Guidelines need to incorporate the requirements of the HOME
Program.
During the City Commission meeting of January 8, 1997, the City Commission referred tt e
Program to the Land Use and Development Committee for a comprehensive review ar d
to specifically address extending the term of affordability of three (3) years curmnt y
required by the Guidelines.
In addition, as a result of the adoption by the City Commission of the "Agencies, BO,::lr<s
and Committees" Ordinance (ABC Ordinance), on July 2,1997, the structure of the l.ocn
Review Committee has been changed effective January 1, 1998. Since the duties ar d
responsibilities of the LRC are set out in the Guidelines of the Multi-Family Housir g
Rehabilitation Program, the provisions of the Ordinance affecting the LRC are b.eir g
incorporated into the Guidelines.
Analysis:
As requested by the City Commission, the Administration placed the Multi-Family Housir g
Rehabilitation Program on the agenda for the Land Use and Development CommittEe
meeting scheduled for February 13, 1997. Due to a lengthy agenda, the item Wc'lS
deferred, and later it was postponed again as scheduled Committee meetings vve'e
cancelled. During this period, no applications were accepted under the current Guideline:;.
Instead, a waiting list of interested parties was developed to be contacted once tt e
modified Guidelines have been adopted by the City Commission.
On June 10,1997, the Land Use and Development Committee met and reviewed the rv1uli':i-
Family Housing Rehabilitation Program. During the meeting, the Administration conductf'd
a detailed presentation on the Program, including its history and accomplishments. tt e
COMMISSION MEMORANDUII!/1
JULY 16, 19E!7
PAG E 3
current Guidelines, and recommended revisions to the Guidelines.
The Land Use and Development Committee recommended that the City continu3 '10
operate the Multi-Family Housing Rehabilitation Program adopting the modifications tc tte
Guidelines previously recommended by the Loan Review Committee and the CDAC.
Simultaneously, the Land Use and Development Committee specifically recommended
extending the term of affordability under the Program to five (5) years. The Committee .al~o
requested that the Administration develop a plan to promote the Program in the Nor!h
Beach area.
The City's Three-Year Consolidated Plan, adopted on July 26, 1995, as amended,
references a term of affordability of three (3) years under the Multi-Family Housirg
Rehabilitation Program. Therefore, revising the Guidelines of this Program necessit:ltes
a non-substantial amendment to the Consolidated Plan to keep the two documents n
conformity. Pursuant to U.S. HUD regulations at 24 CFR 91.505, a non-substa1till
amendment to the Consolidated Plan requires that upon completion, the Jurisdic:ticn
publicize the amendment and notify U.S. HUD by the end of the fiscal year that ~.u(h
amendment has been made.
A draft of the proposed revised Guidelines for the City of Miami Beach Multi-Fami y
Housing Rehabilitation Program is attached, hereto, with proposed additions to the te <t
highlighted and deletions shown with strikes.
The following is a summary of the significant modifications proposed to the Guidelim~s
. The term of affordability will be increased to five (5) years.
. The maximum amount of subsidy available for a project is recommended to t e
changed from a flat allowance of $10,000 per unit regardless of size, to a slidirg
scale based on the number of bedrooms provided as follows:
zero bedrooms(studio or efficiency)
one bedroom
two bedroom
three (or more) bedrooms
$5,000 per unit
$7,500 per unit
$10,000 per unit
$12,500 per unit.
. Those projects undertaken under the Multi-Family Housing Rehabilitation Progra n
incorporating HOME funds will be required to comply with the HOME Investrle,t
Partnerships Program Rules.
. The number of units in a building eligible for participation in the Program has been
reduced from five (5) units to four (4) units in order to make the Program moe
applicable to the North Beach area.
COMMISSION MEMORANDUllJl
JULY 16, 19~i17
PAGE 4
. Chapter V of the Program Guidelines, setting forth the role and responsibilities IJf
the Loan Review Committee, has been modified in accordance with the AS::;
Ordinance, adopted on July 2, 1997, by adding a licensed contractor to tre
Committee, by reducing the number of lenders from four (4) to three (3), and ty
changing the City's two representatives on the Committee from voting to non-vC'ltirg
Ex-Officio members. The three (3) citizen representatives are unaffected.
. A new Chapter VI has been incorporated in the Guidelines explaining the federal
requirement for multi-family rehabilitation regarding accessibility for persons wi11h
disabilities.
On June 27, 1997, the Loan Review Committee met and recommended approval of th,e
Guidelines as revised and in accordance with the recommendations of the Land Use ar d
Development Committee. The Loan Review Committee also discussed the development
of a plan to promote the Program in the North Beach area. Toward this end, the LRC w II
hold a meeting with North Beach Development Corporation to further address the specif c
needs of the North Beach area.
Conclusion:
The Administration recommends that the Mayor and City Commission adopt the tv\,o
attached Resolutions as follows:
a) A Resolution of the Mayor and City Commission of the City of Miami Beach, Florid,l,
approving and adopting revised Guidelines for the City of Miami Beach Multi-Fami y
Housing Rehabilitation Program, and
b) A Resolution of the Mayor and City Commission of the City of Miami Beach, Florid;;.,
approving a non-substantial amendment to the City's Three-Year Consolidated Flan,
adopted on July 26, 1995, as amended; increasing the term of affordability under the City s
Multi-Family Housing Rehabilitation Program from three (3) years to five (5) years.
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