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R7K-Adopt Citys One-Year Action Plan For Federal Funds For FY 2014-2015COMMISSION ITEM SUMMARY Condensed Title: A Resolution Adopting the One-Year Action Plan lot FY 201412015, which includes the nudgets for tite Commuily Development Block Grant (CDBG) Program and the HOME lnvestment Partnerships program (HOME); authorizing the City Manager to issue notice of a 30-day public comment period, authorizing the City Manager to execute all applicable Action plan documents; authorizing the Mayor and City Clerk to execute agreements for sub-recipients; and authorizing the appropriation of all Federal funds when received. lntended Outcome Su Sustainability. Provision of Workforce Housing for Key lndustry Workers (Surveys, Environmental Scan, etc.: Based on the 2012 Community the City's standard of living is good and improving. 33% of businesses housinq in Miami Beach for their labor force as their most important cha Supporting Data residents believe Satisfaction Survey, 80% of rated the lack of affordable Item Summary/Recommendation : WhiletheCitywillnotknowtheexactamountofitsallocationuntilJuly,theeStimatedHUDFYffi distribution are $858,218 for CDBG and $422,572 for HOME, On March 15, 2014, the Administration issued an RFp for CDBG funds and an RFP for HOME funds. The submission deadline for both RFPs was April 18, 2014. A mandatory pre-submission meeting was held on March 26,2014. The City received CDBG Public Services applications from six (6) organizations and CDBG Capital Projects applications from two (2) organizations. Two (2) organizations submrtted applications for HOME funding with both requesting the full amount of avatlable project funding. The Administration reviewed the applications and prioritized them based on several critical factors. ln addition, the City has identified unfunded internal capital projects and an unfunded gap for an affordable housing project that are critlcal to achieving Key lntended Outcomes. Recommendations for funding include: Jewish Community Services (senior center renovations and case management services) , UNIDAD Miami Beach (referral services), Teen Job Corp (youth vocational training), Get Credit Healthy (credit counseling), Office of Community Services (rent, utility, and school uniform assistance) and several City capital (playground for Tatum Park, classroom space for Suspension Diversion Program security cameras for North Shore Open Space Park) and affordable housing projects (London House Apartments). As required by HUD, the Action Plan is being made available to the public for a 30-day comment period commencing on June 19,2014, and ending July 18, 2014. Additionally, public comments can be provided during this City Commission meeting. The Administration recommends that the Mayor and City Commission approve the attached resolution adopting the One-Year Action Plan for FY 2Q1412015 in substantially the attached form, to allow the City to draw down entitlement iunds to assist income eligible persons with services and housing, and to complete public facility capital projects. Recommendation: Financial lnformation: Source of Funds:Amount Account 1 $858,218 CDBG FY 201412015 Allocation 2 $179,577 CDBG Prior Year 3 $422,572 HOME FY 201412015 Allocation Total $1 j68,724 Financial lmpact Summary: Maria Rui/Housing & Community Services Department Director Assistant City Manager City Manager MLR €=KGB JLMTYY\ Si n-Offs rnw AGENDA ITEM R1K oorE- 611- lL!MIAMIBEACH 750 g MIAMIBEACH City of Miomi Beoch, I200 Conveniron Cenier Drive, Miomi Beoch, Floridq 33139, www. miomibeochfl.gov COMMISSION MEMORANDUM To: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: June 11,2014 f the City SUB]ECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CITY'S ONE- YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FISCAL YEAR 201412015, WHICH INCLUDES THE BUDGETS FOR THE coMMUNtTY DEVELOPMENT BLOCK GRANT (CDBG) PROGAMAND THE HOME TNVESTMENT PARTNERSHtpS (HOME) PROGRAM; AUTHORIZING THE CITY MANAGER TO ]SSUE A NOTTCE OF A THtRTy (30) DAy PUBLIC COMMENT pERIOD; AUTHORIZING THE CITY MANAGER TO MAKE MINOR NON. SUBSTANTIVE CHANGES TO THE ONE.YEAR ACTION PLAN OR RESULTING AGREEMENTS BEFORE EXECUTION (WHICH MAY BE IDENTIFIED DURING THE FINALIZATION AND/OR REVIEW PROCESS, AND WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLAN); AUTHORIZING THE CITY MANAGER TO EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AUTHORIZING THE CITY MANAGER TO EXECUTE ALL APPLICABLE DOCUMENTS AND SUBMIT THE ONE-YEAR ACTION PLAN TO THE U,S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-REGIPIENTS OF CDBG AND HOME;AND AUTHORIZING THE APPROPRIATION OF ALL FEDERAL FUNDS WHEN RECEIVED. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The City of Miami Beach is a U.S, Department of Housing and Urban Development (HUD)- designated entitlement community, as determined by the decennial census information on population grovuth lag, age of housing stock, and poverty. The City has been a CDBG entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. HUD allocates these funds to strengthen public/private partnerships and expand the supply of affordable housing that is decent, safe, and sanitary. 751 FY14-15 HUD Entitlement (est.) Less administrative allowan ce (20%) Less Fagade lmprovement Program FY 14-15 HUD Entitlement (est.) Less administrative allowance (1 0%) Less 15% CHDO project set-aside Commission Memorandum - FY 201412015 Action Plan June 11,2014 Page 2 of 5 As an entitlement community, the City qualifies for an annual allocation under HUD's grant programs. HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the community's Consolidated Plan. The One-Year Action Plan is a component of the Five- Year Consolidated Plan filed with HUD. The City's current One-Year Action Plan follows the strategies that have been included in its 2013-2017 Five-Year Consolidated Plan. CDBG funds have been primarily used to provide vital public services, housing activities, code enforcement, and improvements to public facilities while HOME funds have been primarily used for affordable rental housing activities. While the City will not know the exact amount of its allocation until July, the total estimated FY 201412015 available funds for distribution are: Community Development Block Grant - Proiected Funds $8s8,218 ($171,643) ($120,000) ($2e1,643) Net FY 14115 funds available for distribution $566,575 Add Prior year recaptured funds $179,572 Total available for allocation $746,152 HOME - Proiected Funds $422,572 ($42,257) ($63,386) ($105,643) Net available for project allocation $316,929 On March 19,2014, the Administration issued an RFP for CDBG funds and an RFP for HOME funds. The submission deadline for both RFPs was April 18, 2014. To ensure that any RFP requirements could be clarified and any questions relating to the completion and submission of an application could be addressed, a mandatory pre-submission meeting was held on March 26, 2014. ANALYSIS The City received CDBG applications from: Teen Job Corp, UNIDAD, Get Credit Healthy, Carrfour Supportive Housing, Jewish Community Services, and the Housing Authority of the City of Miami Beach. The Administration reviewed the applications prioritizing the following critical factors: o Project impact as it relates to the City's Consolidated Plan; o Project description of activities; o Applicant's attainment of performance measures and program outcomes; o Applicant's organizational capacity and experience; o Budget analysis of proposed project; and oOrganization's ability to leverage additional non-CDBG sources of funding for project activities. 752 Commission Memorandum -FY 201412015 Action Plan June 11,2014 Page 3 of 5 This information was utilized to rank and make appropriate funding recommendations, which form the basls of the Action Plan. The recommendations are consistent with the priority needs identified by the Commission, the community, and the Consolidated Plan. The priorities include services to the elderly and youth, homelessness, affordable housing, and public facilities. More specific information is provided below. A maximum of fifteen percent (15oh) of the entitlement allocation, $128,732, may fund public service activities. Public service activities include meals programs, after school programs, etc., for income-eligible participants. The following five (5) activities are recommended for funding: ln addition, three (3) applications were received for CDBG-funded capital projects: two from the Housing Authority of the City of Miami Beach to fund rehabilitation at Rebecca Towers and one from Jewish Community Services of South Florida. While the City has previously funded each applicant, the installation of impact windows at the Miami Beach Senior Center is being recommended for funding as this activity was dropped from the prolect scope when the construction schedule was amended by the state regulatory authority overseeing elder services. ln addition, the City has identified several capital public projects benefiting City facilities including: ' Rehabilitation and equipping of a classroom for the Suspension Diversion Program (pending a site) which would open for lhe 2014115 school year. lnstallation of a playground at Tatum Park in North Beacho lnstallation of security cameras at North Shore Open Space Park to be monitored by the Police Departmento Rehabilitation of non-governmental use space at the Byron Carlyle Theater (Federal entitlement funds cannot be used to construct or rehabilitate properties intended solely for governmental use such as a City Hall or municipal office space.) These capital projects have yet to be procured. Therefore, cost estimates cannot be provided at this time. The Administration proposes authorizing these projects pending the availability of funds which will be determined upon procurement. The total amount of funds to be distributed among these projects is $503,342. The balance of the CDBG allocation, $171,643 (20% of the HUD entitlement), is allocated for administrative and operational expenses including the subsidy of five full{ime positions in the Office of Housing and Community Services as well as fulfill the HUD+equired Fair Housing activities. CMB - Community Services school uniforms for needy students lewish Community Services of S. Florida (case manasement, referrat services UNIDAD of Miami Beach (case referral services Teen Job Co ent Get Credit Healthv (credit counseli Total Public Service Allocations 753 Commission Memorandum - FY 201412015 Action Plan June 11,2014 Page 4 of 5 The available HOME project allocation is $316,929. A po(ion of the allocation (942,257) is allocated to subsidize one fulltime Housing and Community Services staff member for program administration and ensure HUD-required Fair Housing activities. Two (2) applications for HOME funding were submitted. Both requested the full amount of available project funding. However, since the City has an unfunded gap for its London House Apartments, the Administration is recommended that the net available project funds of $316,929 be allocated to this project to ensure its full funding. As a reminder, the City acquired the London House Apartments (London House), a 24-unil apartment development located at 1965 and 1975 Washington Avenue, March 2014 from its former owner/developer, Miami Beach Community Development Corporation (MBCDC). Previously, MBCDC had been awarded HOME funds for the purposes of rehabilitating the property as affordable housing, but had been unable to complete the project. Now that the City has ownership of the property, it is expected to be completed by December 2015. The HOME Program rules require each entitlement community to reserve a minimum ol 15o/o of its annual allocation for activities undertaken by qualified Community Housing Development Organizations. A Community Housing Development Organization (CHDO) is a private nonprofit, community-based service organization that has identified the development of affordable housing as a primary mission, and has the capacity to develop affordable housing in the community it serves. A CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience. Carrfour Supportive Housing (Carrfour), has been certified as a CHDO and is the only such agency with this designation within the City at this time. Carrfour requested funding for its 94-unit Harding Village affordable rental housing project located at 8540 Harding Avenue. This property, which is currently occupied, provides affordable housing for formerly homeless and low-income individuals (including veterans) but has fallen into disrepair and is in need of rehabilitation. Carrfour was previously awarded HOME funding for this apartment development, but applied for additional funds to expand the scope of rehabilitation. As the City's only qualifying CHDO, the Administration recommends allocating the CHDO set-aside funds of $63,386 to this project. As required by HUD, the Action Plan is being made available to the public for a 30-day comment period commencing on June 19, 2014, and ending July 18, 2014. Additionally, public comments can be provided during this City Commission meeting. Historically, staff recommendations are presented to the Community Development Advisory Committee (CDAC) for its review, comment, and recommendation. Recently, the CDAC was dissolved and its duties were assigned to the Affordable Housing Advisory Committee (AHAC). However, AHAC failed to achieve a quorum of appointments preventing a meeting prior to taking the issue to Commission in time to meet HUD's schedule for the completion of the Annual Plan. CONCLUSION Most of the activities described in the One-Year Action Plan will take place in City-designated community development target areas which contain census tracUblock groups that have greater than 51olo of households with incomes at or below 80% of the median income and continue to be a priority for allocation of CDBG and HOME funds. As in previous years, the City received funding requests that exceeded its entitlement allocations. The funding recommendations presented are based on the appropriateness with the Consolidated Plan, as well as the viability 754 Commission Memorandum - FY 201412015 Action Plan June 11,2014 Page 5 of 5 of the project projected and the applicant's capacity. The Administration recommends that the Mayor and City Commission approve the attached resolution adopting the One-Year Action Plan for FY 2014-2015 in substantially lhe attached form, to allow the City to draw down entitlement funds to assist income eligible persons with services and housing, and to complete public facility capital prolects. JLMiKGB/MLR/ARB T:\AGENDA\2014uune 1I\HUD FY 14'15Action Plan Memo 755 RESOLUTION TO BE SUBMITTED 756 THIS PAGE INTENTIONALLY LEFT BLANK 757