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Resolution 2024-32948 RESOLUTION NO. 2024-32948 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR APPLICATIONS (RFA) FOR FY 2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, FY 2024 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,WHICH WILL BE FUNDED FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ENTITLEMENT ALLOCATIONS. WHEREAS, the City is an entitlement recipient of the U.S. Department of Housing and Urban Development("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 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 2021; and WHEREAS, the Administration recommends that the Mayor and City Commission authorize the issuance of a Request for Applications(RFA)for the FY 2024 CDBG funds, FY 2024 HOME funds and HOME-ARP funds, in order to identify 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 have not been determined; and WHEREAS,therefore, the funding included in the RFA is based upon estimates and will be adjusted once HUD releases actual award amounts: CDBG - $925,829.00; HOME - $665,238.00; and WHEREAS, the CDBG program supports programming that benefits low-to moderate- income persons through direct public services and capital improvements; and WHEREAS, the CDBG program has the following expenditure limitations: • Administration and Planning cap: 20% of the award; and • 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.); and WHEREAS, $40,000.00 of the CDBG Public Services funding will be set aside for the City's elderly grocery program; and WHEREAS, the HOME Program supports the creation and retention of affordable housing to benefit low-income persons; and WHEREAS, the HOME program has the following expenditure limitations: • Administration Cap — 10% of the award; • Community Housing Development Organization (CHDO) Cap — 15% of the award; and WHEREAS, 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 serve households earning up to 80% of Area Median Income (AM I),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, 2025; therefore, the City Administration seeks to allocate the FY 2023 reservation to the proposed RFA award, for use by an agency with a viable project aligned with the City's Consolidated Plan; and WHEREAS, 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; and WHEREAS,the City has allocated and awarded $2,017,475.05 of$2,245,387 in HOME- ARP funds; and WHEREAS, the period of performance for the HOME-ARP funding is through 2030; and WHEREAS, there remains $115,642.60 for Supportive Services and $112,269.35 for Non-Profit Capacity Building in HOME-ARP funds; and WHEREAS, the City is currently in the planning phase for the 2024 Action Plan period; and WHEREAS, the Administration is seeking authorization to issue a Request for Applications (RFA) to solicit affordable housing, public service, and other eligible projects within the City; and • WHEREAS, the City will review RFA submissions to evaluate project eligibility and compliance with HUD rules and regulations, in addition to project feasibility; and WHEREAS, the 2024 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, 2023; and WHEREAS, it is necessary to begin the screening process for proposed activities,which includes the following: • release of the RFA; • review by staff to determine complete/eligible RFA submissions; • review of staff recommendations by the Affordable Housing Advisory Committee (AHAC); • _30-day Comment Period to receive public input; • City Commission approval; and • finally, submission to HUD; and WHEREAS,the Administration recommends approving the issuance of the RFA, a copy of which is incorporated herein by reference and attached to the City Commission Memorandum that accompanies this Resolution, to identify eligible public services, affordable housing activities, supportive services and capital improvement projects, which will be funded from the City's FY 2024 HUD entitlement allocations. 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 Applications (RFA) for FY 2024 Community Development Block Grant (CDBG) funds, FY 2024 Home Investment Partnerships (HOME)funds, and HOME American Rescue Plan Act funds, to identify eligible public services, affordable housing activities, supportive services and capital improvement projects, which will be funded from the U.S. Department of Housing and Urban Development (HUD) entitlement allocations. PASSED and ADOPTED /.3 day of MQrek , 2024. ATTEST: Steven Meiner, Mayor 214f MAR 1 5 2024 B �c,, Rafael E. Granado, City Clerk .14,V '‘ INtDAP QRATED ' APPROVED AS TO Ohl FORM & LANGUAGE %,9R••.;; .::;N°j-= & FOR EXECUTION nrD 3 -s _3.4 City Attorney '\ Date Resolutions-C7 G MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: March 13, 2024 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR APPLICATIONS (RFA) FOR FY 2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, FY 2024 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. WHICH WILL BE FUNDED FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT(HUD) ENTITLEMENT ALLOCATIONS. RECOMMENDATION The Administration recommends approving the Resolution. BACKGROUND/HISTORY The City of Miami Beach (the "City') is a U.S. Department of Housing and Urban Development (HUD) designated entitlement city as determined by the decennial census information on population growth lag, age of housing stock, and poverty. The City has been an entitlement community since 1975. As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD's grant programs including Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME)programs. HUD requires each entitlement community to submit its One-Year Action Plan, on an annual basis, describing how it will utilize funding and resources to address priority needs identified in the city's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan required to be filed with HUD. The City's current Consolidated Plan was adopted June 28, 2023. This Five-Year Plan encompasses housing and non-housing community development activities, resources and projects to be undertaken to address the identified community needs for the fiscal years of 2023 through 2027. Historically, the City's CDBG funds have been used for public services, housing, and public facility improvements, while HOME funds have been used for affordable rental housing and first- time homeownership. Page 251 of 1070 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 COVI D-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 HUD local field office regarding the City's HOME-ARP allocation of $2,245,387. The HOME-ARP allocation must be expended by September 30, 2030,on eligible activities to address homelessness and provide supportive services, as described in the One- YearAction Plan for Fiscal Year(FY)2021. The following projects have been awarded.HOME-ARP funds: • The Heron — new construction affordable housing project (Housing Authority of the City of Miami Beach) ' • North Beach Homeless Prevention (Legal Services of Greater Miami) • Tenant Defense Project(Legal Services of Greater Miami) • Universal Rental Application Fee Reimbursement Program(City of Miami Beach Housing and Community Services) ANALYSIS The City's annual HUD allocations fluctuate from year to year. HUD has not yet released award amounts for the FY 2024-2025 CDBG and HOME programs. Therefore, as in prior years, the City will base projections on the amount received for FY 2022-2023 and can adjust once HUD releases actual award amounts: FY 2023 HUD Allocation CDBG $925,829.00 HOME $665,238.00 The City must submit its 2024 Action Plan for HUD's approval by August 15, 2024.As such, it is necessary to begin the screening process for proposed activities. The process includes the following: • Release of the RFA; • Review by staff to determine complete/eligible RFA submissions; • Review of staff recommendations by the Affordable Housing Advisory Committee (AHAC); • Thirty(30)-day Comment.Period to receive public input; • City Commission approval;and • Submission to HUD. 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: Twenty percent(20%)of the award • Public Services cap: Fifteen percent (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: Page 252 of 1070 • Elder services and community referral information(UNI DAD of Miami Beach) • Grocery delivery for the elderly (City of Miami Beach Housing and Community Services) • Rent/utility assistance as a homelessness prevention strategy (City of Miami Beach Housing and Community Services) • After-school and summer camp youth programming (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 several years, the City has prioritized CDBG and HOME funds to address significant capital needs in its residential portfolio acquired from Miami Beach Community Development Corporation (MBCDC). The City has also awarded the Housing Authority of the City of Miami Beach (HACMB) rehabilitation funds beginning in FY 2019. The City is currently funding the following affordable housing capital projects: • Lottie Apartments Rehabilitation(City of Miami Beach) • Neptune Apartments Rehabilitation(City of Miami Beach) • Madeleine Village Apartments (including the seawall) rehabilitation (City of Miami Beach) • Corals Apartments Rehabilitation (City of Miami Beach) • The Egret Seawall Replacement(HACMB) • 841 80th St. Rehabilitation (HACMB) • Vista Breeze Seawall (HACMB &Atlantic Pacific Communities) The HOME Program has funded the First-time Homebuyer. and Homeowner Assistance Programs for the past four (4) years. The City's First-time Homebuyer Program provides very- low and moderate-income residents with down payment and rehabilitation assistance to purchase their first home. The Homeowner Rehabilitation Program provides very-low and moderate-income homeowners with financial assistance to make necessary and appropriate repairs to their homes to ensure the retention of affordable homeownership. 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—Ten percent(10%)of the award • Community Housing Development Organization (CHDO) cap — Fifteen percent (15%) of the 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 serve households earning up to 80 percent of Area Median Income (AM!).At least 15 percent of HOME funds must be set aside for specific activities to be undertaken by a CHDO. However, HUD issued a temporary suspension of the CHDO reservation through December 31, 2025. Therefore, the set-aside CHDO funds for FY 2024 will be allocated to the RFA 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 (4) 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. Page 253 of 1070 The City is currently in the planning phase for the 2024 Action Plan period. The Administration is seeking authorization to issue a Request for Applications (RFA)to solicit affordable housing, public service, and other eligible projects within the City. The City will review RFA submissions to evaluate project eligibility and compliance with HUD rules and regulations, in addition to project feasibility. The table below delineates the estimated funding for this RFA 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, leveraged with additional funding provided through the City's General Fund. The program assisted 106 elderly Miami Beach residents with monthl •rocery delive services during the 2022/23 program year. 2024 CDBG Funds (estimated) CDBG Entitlement $925,829 City Administration (20%) $185,165 Public Services Cap (15%) $138,874 PS Set-Aside for Elderly Grocery Program $40,000 Public Services Funds Available $98,874 Funding Available for other projects $601,790 The table below delineates the estimated funding available for this RFA from the HOME Program. 2024 HOME Funds (estimated) HOME Entitlement $665,238 City Administration(10%) $66,523 Funding Available $598,715 The City has allocated and awarded $2,017,475 of $2,245,387 in HOME-ARP funds. The period of performance for the HOME-ARP funding is through 2030. The following funding remains available for eligible projects. HOME-ARP Remaining Funds Supportive Services $115,643 Non-Profit Capacity Building $112,269 The attached RFA will be submitted electronically via Neighborly Software to reduce paper waste and facilitate proposal submissions. SUPPORTING SURVEY DATA Results from the 2022 Community Satisfaction Survey show that 67.4 percent 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 by supporting local programs and development, thus contributing to a positive perception of the City as a great place to live. FINANCIAL INFORMATION CDBG, HOME and HOME-ARP program funds will be used for awarded proposals. CONCLUSION Although HUD has not provided notification of the amount of FY 2024 funding allocations, based on the HUD-imposed timeline for preparation and submission, the Administration recommends authorizing the City Manager to issue the attached RFA for eligible activities to be funded from the City's FY 2023 entitlement allocations from HUD. The RFA will be issued with a qualification that the award of funds is subject to the City's actual HUD funding award. The release of this RFA is a critical piece to the planning process for the 2024 Action Plan. The Page 254 of 1070 Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFA responses to ensure compliance with HUD deadlines. Applicable Area Not Applicable Is this a"Residents Right Does this item utilize G.O. 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 255 of 1070