97-22484 RESO
RESOLUTION NO. 97-22484
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
NON-SUBSTANTIAL AMENDMENT TO THE CITY'S THREE-
YEAR CONSOLIDATED PLAN, ADOPTED ON JULY 26, 1995,
AS AMENDED; SAID AMENDMENT INCREASING THE TERM
OF AFFORDABILlTY UNDER THE CITY'S MULTI-FAMILY
HOUSING REHABILITATION PROGRAM FROM THREE (3)
YEARS TO FIVE (5) YEARS.
WHEREAS, on March 18, 1981, the Mayor and City Commission approved
Guidelines establishing the "Multi-Unit Residential Rehabilitation Program" (predece5s,,>r
to the Multi-family Housing Rehabilitation Program) by Resolution Number 81-16603; ard
WHEREAS, the Mayor and City Commission approved and adopted the Three-Yeir
Consolidated Plan on July 26, 1995; and
WHEREAS, the Mayor and City Commission, on September 27, 1995, approved
revised Guidelines for the Multi-Family Housing Rehabilitation Program by Resolutic n
Number 95-21728; and
WHEREAS, the City's Land Use and Development Committee, at a regular meE!tir g
held on June 10, 1997, reviewed the proposed Guidelines and recommended ceria n
modifications, including increasing the term of affordability from three (3) years to five (5)
years; and
WHEREAS, the City's Loan Review Committee, at a regular meeting held JunE! 2l,
1997, reviewed the revised Guidelines and recommended their adoption by the Mayor ard
City Commission; and
WHEREAS, the City's Three-Year Consolidated Plan, adopted on July 26, 199~), as
amended, references the term of affordability of the Multi-Family Housing Rehabilitati(n
Program; and
WHEREAS, revising the Guidelines of the Multi-Family Housing Rehabilitaticln
Program necessitates a non-substantial amendment to the Consolidated Plan to keep tte
two documents in conformity; and
WHEREAS, pursuant to U.S. HUD regulations at 24 CFR 91.505, a non-substcmt al
amendment to the Consolidated Plan requires that upon completion, the City publicizE! ttle
amendment and notify U.S. HUD by the end of the fiscal year that such amendment has
been made.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a non-substaltial
amendment to the City's Three-Year Consolidated Plan, as adopted on July 26, 1995 and
as amended, is hereby approved, said proposed amendment pertaining to increasing tre
term of affordability under the City's Multi-Family Housing Rehabilitation Program from
three (3) years to five (5) years. The Three-Year Consolidated Plan for federal funds for
fiscal years 1995/96, 1996/97 and 1997/98 as amended, is therefore amended as follow:;:
All references throughout the Consolidated Plan to a term of affordability of three (3) yeas
under the Multi-Family Housing Rehabilitation Program are replaced by a term of
affordability of five (5) years.
Approved and Adopted, this 16 th day of July ,1997.
~L
Attest:
Zo~6 rOv\-~
Robert Parcher, City Clerk
F:IDDHPI$ALLICARLIRESOICP-AMDMF. RES
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
A1L~ ~
CITY OF MIAMI
BEACH
lO
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLbRIDA 33139
http://ci.miami-beach,fJ,us
TO:
FROM:
SUBJECT:
-
~.
COMMISSION MEMORANDUM NO.
6~1-9J
Mayor Seymour Gelber and
Members of the City Co ission
DATE: July 16, 199'
Jose Garcia-Pedrosa
City Manager
TWO RESOLU NS OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI EACH, FLORIDA, AS FOLLOWS: a) A RESOLUTHJ~,
OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM
BEACH, FLORIDA, APPROVING AND ADOPTING REVIS lED
GUIDELINES FOR THE CITY OF MIAMI BEACH MUL TI-FAMIL 't,
HOUSING REHABILITATION PROGRAM; b) A RESOLUTION OF THE
MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH
FLORIDA, APPROVING A NON-SUBSTANTIAL AMENDMENT TO TIHE
CITY'S THREE-YEAR CONSOLIDATED PLAN, ADOPTED ON JULY 26
1995, AS AMENDED; INCREASING THE TERM OF AFFORDABILln
UNDER THE CITY'S MULTI-FAMILY HOUSING REHABILlTATIO~,.
PROGRAM FROM THREE (3) YEARS TO FIVE (5) YEARS.
Administration Recommendation:
Approve the Resolutions.
Background:
The Multi-Family Housing Rehabilitation Program (Program) was established by the (it}
in 1981 to provide financial assistance to property owners in order to encourage thE
renovation of the existing rental housing stock and provide moderately priced rental ur its
for income-eligible tenants. The Program is currently funded with federal funds from twc
sources: Community Development Block Grant (CDBG) and the HOME InvestmEm1
Partnerships Program.
The current Guidelines for the City of Miami Beach Multi-Family Housing Rehabilitation
Program (Guidelines), were last amended by the City Commission on September 27,1905,
Under these Guidelines, the Program offers two plans for grant assistance: 1) a matching
grant of up to fifty (50) percent of the cost of rehabilitation, used to reimburse construction
costs, or 2) an interest rate subsidy paid to a lender to reduce the effective interest cos1
of a mortgage on the property down to a six percent (6%) rate. In accordance with the
City's Consolidated Plan, adopted on July 26, 1995, the term of affordability under the
Guidelines is three (3) years.
AGENDA ITEM~_
DATE '1- \ 1.,-9 r
COMMISSION MEMORANDUI\i
JULY 16, Hi9i
PAGE 2'
Since its inception, the Program has successfully assisted in the rehabilitation of forty-nine
(49) properties, containing 1,215 rental units. Forty-two (42) of these properties remair
in rental use, containing 1,032 rehabilitated units, which represents eighty-five perom
(85%) of all apartment units rehabilitated under the Program. Currently, eight (8) buildirig~
containing 234 units are subject to affordability restrictions under the Program.
In order to accommodate the changing demographics in our community, focus on 1he
specific needs of the North Beach area, and ensure the continued success of this Program
the Administration initiated a process to modify the Guidelines. Accordingly, 1he
Administration requested the City's Loan Review Committee (LRC) and the Commur ity
Development Advisory Committee (CDAC) to review the current Guidelines, At a meeting
held on September 17, 1996, these Committees jointly recommended revisions to thE
Guidelines.
Concurrently, funding from the federal HOME Investment Partnerships (HOME) Progmm
has been incorporated into the Multi-family Housing Rehabilitation Program for the firs1
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 the
Program to the Land Use and Development Committee for a comprehensive review ald
to specifically address extending the term of affordability of three (3) years currently
required by the Guidelines.
In addition, as a result of the adoption by the City Commission of the "Agencies, Boar:Js
and Committees" Ordinance (ABC Ordinance), on July 2, 1997, the structure of the Loan
Review Committee has been changed effective January 1, 1998. Since the duties and
responsibilities of the LRC are set out in the Guidelines of the Multi-Family Housillg
Rehabilitation Program, the provisions of the Ordinance affecting the LRC are being
incorporated into the Guidelines.
Analysis:
As requested by the City Commission, the Administration placed the Multi-Family Housing
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 was
deferred, and later it was postponed again as scheduled Committee meetings were
cancelled. During this period, no applications were accepte,d under the current GuidelinEs.
Instead, a waiting list of interested parties was developed to be contacted once ttJe
modified Guidelines have been adopted by the City Commission.
On June 10,1997, the Land Use and Development Committee met and reviewed the Multi-
Family Housing Rehabilitation Program. During the meeting, the Administration conducted
a detailed presentation on the Program, including its history and accomplishments, the
COMMISSION MEMORANDUI\II
JULY 16, 1E19~'
PAGE ~.
current Guidelines, and recommended revisions to the Guidelines.
The Land Use and Development Committee recommended that the City continue t(
operate the Multi-Family Housing Rehabilitation Program adopting the modifications to:hE
Guidelines previously recommended by the Loan Review Committee and the COlIC
Simultaneously, the Land Use and Development Committee specifically recommencec
extending the term of affordability under the Program to five (5) years. The Committee alsc
requested that the Administration develop a plan to promote the Program in the Nartt
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 Housin~
Rehabilitation Program. Therefore, revising the Guidelines of this Program necessita1e~
a non-substantial amendment to the Consolidated Plan to keep the two documents ir
conformity. Pursuant to U.S. HUD regulations at 24 CFR 91.505, a non-substantia
amendment to the Consolidated Plan requires that upon completibn, the Jurisdiction
publicize the amendment and notify U.S. HUO by the end of the fiscal year that such
amendment has been made.
A draft of the proposed revised Guidelines for the City of Miami Beach Multi-Farrily
Housing Rehabilitation Program is attached, hereto, with proposed additions to the text
highlighted and deletions shown with strikes.
The following is a summary of the significant modifications proposed to the Guideline~:
. The term of affordability will be increased to five (5) years.
. The maximum amount of subsidy available for a project is recommended to be
changed from a flat allowance of $10,000 per unit regardless of size, to a sliding
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 Program
incorporating HOME funds will be required to comply with the HOME Investment
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 more
applicable to the North Beach area.
COMMISSION MEMORANDUr~
JULY 16, 1~9?'
PAGI= "i~
. Chapter V of the Program Guidelines, setting forth the role and responsibilitie5 cf
the Loan Review Committee, has been modified in accordance with the PiSC;
Ordinance, adopted on July 2, 1997, by adding a licensed contractor to th~
Committee, by reducing the number of lenders from four (4) to three (3), ana b l
changing the City's two representatives on the Committee from voting to non-vo-:inl
Ex-Officio members. The three (3) citizen representatives are unaffected.
. A new Chapter VI has been incorporated in the Guidelines explaining the fed Em: I
requirement for multi-family rehabilitation regarding accessibility for persons viliUI
disabilities.
On June 27, 1997, the Loan Review Committee met and recommended approval of the!
Guidelines as revised and in accordance with the recommendations of the Land Use CIn< 'I
Development Committee. The Loan Review Committee also discussed the developmen:
of a plan to promote the Program in the North Beach area. Toward this end, the LRC ..vii I
hold a meeting with North Beach Development Corporation to further address the spec ifil :
needs of the North Beach area.
Conclusion:
The Administration recommends that the Mayor and City Commission adopt the twe
attached Resolutions as follows:
a) 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-Famil)
Housing Rehabilitation Program, and
b) A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida
approving a non-substantial amendment to the City's Three-Year Consolidated Plan.
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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