R7C-Reallocate HOME Funds And CDBG Funds Amend Action Plan And Consolidated PlanCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission approving and authorizing the City Manager to recapture and reallocate
CDBG and HOME funds; amend the FY 2008 through FY 2013 Action Plans; issue a notice of a thirty (30) day comment
period and public meeting on the proposed Substantial Amendments to the Action Plans; and reallocate the funds to ensure
with HUD rules and the timel iture of funds.
Sustainable initiatives. Affordable housing for the labor force.
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2012 Community Satisfaction Survey, 80o/o of
residents believe the City's standard of living is good and improving. 34o/o of businesses rated the lack of affordable
inq in Miami Beach for their labor force as their most im
As an entitlement community, the City receives an annual allocation of HUD funding. The CDBG and HOME programs have
timeliness requirements regarding the expenditure of funds. HOME funds must be committed to a project within two years of
City's receipt, and expended within five years. CDBG funds must be expended such that the total amount of funds in its
allocation account never exceeds 1.5 times its annual allocation. HUD further requires its entitlement jurisdictions to ensure
that funded activities are carried out in the defined project scope and within the timeframe allowed. The City's Action Plan is
monitored throughout the year to ensure compliance with federal regulations and progress towards the National Objective,
which stipulates that CDBG/HOME-funded services/housing activities must benefit low- and moderate-income persons who
earn at or below 80% of the area median income (AMl).
On September 17,2014 the City passed and adopted Resolution No. 2014-28756 for the City's proposed purchase of the
following properties: Allen Apartments; Barclay Plaza Apartments; Lottie Apartments; Madeleine Village Apartments; and
Neptune Apartments from the Miami Beach Community Development Corporation (MBCDC).
The Administration recommends the recapture of $171,179.00 of FY 201312014 HOME funds; Approving and Authorizing the
City Manager to reallocate $364,646 of FY 201412015, $39,634.95 of FY 201312014,$175,357.72 of FY 201212013, and
$73,577.24 of FY 2O11t2012 CDBG funds, filing the amended Action Plans as required by HUD; issuance of a notice of a thirty
(30) day comment period and a public meeting on the proposed Substantial Amendments to the City's Consolidated Plan and
Annual Action Plans to purchase and assume title of five (5) MBCDC properties.
Financial I nformation:
Source of Funds:Amount Account
I N/A
2
3
Total
Financial lmpact Summary:
Maria RuizJHousing & Community Services
Department Director Assistant City Manager N City Manager
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FROM:
DATE:
SUBJECT:
City of Miomi Beoch, I700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
Philip Levine and Members of the
Jimmy L. Morales, City Manager
December 17,2014
A RESOLUTION OF THE MAYOR THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA,NG AND AUTHORIZING THE CITY MANAGER
TO REALLOCATE $171,179.00 OF FY 201312014 HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME) FUNDS; APPROVING AND AUTHORIZING
THE CITY MANAGER TO REALLOCATE $364,646 OF FY 201412015, $39,634.95
oF FY 201312014, $175,357.72 OF FY 201212013, AND $73,577.24 OF FY
201112012 COMMUNTTY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS;
AMEND THE FY 201412015 ACTION PLAN; AMEND THE FY 2013 THROUGH 2017
CONSOLIDATED PLAN; ISSUE A NOTICE OF A THIRTY (30) DAY PUBLIC
COMMENT PERIOD AND SCHEDULING OF A PUBLIC MEETING ON THE
PROPOSED SUBSTANTIAL AMENDMENTS TO THE CITY'S FY 201412015
ACTION PLAN AND CONSOLIDATED PLAN; AND REALLOGATE THE
AFORESAID AMOUNT OF CDBG AND HOME FUNDS FOR THE ACQUISITION OF
THE MtAMt BEACH COMMUNTW DEVELOPMENT CORPORATTON (MBCDC)
PROPERTIES IN ACCORDNACE WITH RESOLUTION NO. 2014.28756 FOR THE
ACQUISITION OF THE FOLLOWING PROPERTIES: ALLEN APARTMENTS:
BARCLAY PLAZ.A APARTMENTS; LOTTIE APARTMENTS; MADELEINE VILLAGE
APARTMENTS; AND NEPTUNE APARTMENTS (THE ..MBCDC PROPERT!ES,,).
ADMINISTRATION RECOMM ENDATION
Adopt the Resolution.
BACKGROUND
The City is a U.S. Department of Housing and Urban Development (HUD)-designated
entitlement community, as determined by the decennial census information on population
groMh lag, age of housing stock, and poverty. The HOME lnvestment Partnership (HOME)
Program was created in 1992 providing funding specifically for affordable housing. HUD
allocates these funds to strengthen public/private partnerships and expand the supply of decent,
safe, sanitary, and affordable housing for low-income families. The City has received HOME
funds since the program's inception.
As an entitlement community, the City receives an annual allocation of HUD funding. HUD
requires entitlement jurisdictions to submit a Five-Year Consolidated Plan which establishes the
strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented
and refined by the City's annual submission of a One-Year Action Plan which delineates the
specific projects and activities funded by each year's HUD allocation. The City has historically
used HOME funds for multi-family rental housing and first-time homeownership.
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The HOME and CDBG Programs have timeliness requirements regarding the expenditure of
funds. HOME funds must be committed to a project within two years of City's receipt, and
expended within five years. CDBG funds must be expended so that the total amount of funds in
the City's allocation account never exceeds 1.5 times its annual allocation. HUD further requires
its entitlement jurisdictions to ensure that funded activities are carried out in the defined project
scope and within the timeframe allowed. The City's Action Plan is monitored throughout the year
to ensure compliance with federal regulations and progress towards the National Objective,
which stipulates that HOME-funded activities must create housing units that benefit low- and
moderate-income persons who earn at or below 80% of the area median income (AMl).
From time-to-time, it may be necessary for the City to process a "Substantial Amendment" to the
Five Year Consolidated Plan or the One Year Action Plans to allow for the funding of new
activities, modification of existing activities, or other program administrative actions. The City is
required by HUD [24 CFR 91.505 (b)] to identify the criteria to be used in determining if a
proposed action will be considered a !'SubstantialAmendment", as follows:
. Addition of a new activity or project not previously described in the Consolidated or
Action Plan:o Deletion of an activity or project previously described in the Consolidated or Action Plan;
o Change in the purpose, scope, location or beneficiaries of an activity or project
previously described in the Consolidated or Action Plan;o Change in the use of funds from one eligible activity or project to another previously
described in Consolidated or Action Plan; andlor. A cumulative change in the use of funds from an eligible activity to another eligible
activity that decreases an activity's funding by 1Oo/o or more OR increases an activity's
funding by 10o/o or more during the fiscal year.
Any proposed amendment that is considered a "Substantial Amendment" is subject to the
Citizen Participation process; requires formal action by the City Commission; and requires
approval by HUD. Furthermore, a thirty (30) day public notice is required to provide the
oppo(unity for the public to review and comment on the proposed substantial amendments to
the City's FY 2008 through 2013 Action Plans. The City will also include a notice of a public
meeting on the proposed substantial amendments. The City will consider all comments or views
received from the public concerning proposed substantial amendments in accordance with 24
CFR 91.105 (c) (3).A summary of these comments and views shall be attached to the
substantial amendment.
ANALYSIS
On September 17, 2014 the City passed and adopted Resolution No. 2014-28756 for the City's
proposed purchase of the following properties: Allen Apartments; Barclay Plaza Apartments;
Lottie Apartments; Madeleine Village Apartments; and Neptune Apartments from the Miami
Beach Community Development Corporation (MBCDC).
City staff has identified the following projects that are subject to recapture for such reasons as
failure to satisfy a national policy objective, failure to comply with contractual conditions, and/or
awarded funds that have not been expended.
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SOURCE PROJECT AMOUNT
CDBG FY 11112 Facade Proqram $150.000.00
CDBG FY 12113 Proiect Link $5.837.80
CDBG FY 12113 Uncommitted $169.519.92
CDBG FY 13114 Administration $22.631.95
CDBG FY 13114 Loq Cabin Enterprises $10,000.00
CDBG FY 13t14 RAIN Parents $7.003.00
CDBG FY 14t15 North Shore Cameras $150,000.00
CDBG FY 14115 CMB Facilities $208.646.00
CDBG FY 14115 Proiect Link $6.000.00
HOME FY 13114 London House s171.179.00
The recaptured funds will be reallocated to offset the acquisition closing costs as well as
address additional costs associated with the operational reserves of the properties.
The changes described meet the definition of Substantial Amendment. Accordingly, once funds
are recaptured, the City will amend its Annual and Consolidated Plan(s) with HUD reflecting
these changes and ensure that the required noticing and amendments will be completed.
CONCLUSION
The Administration recommends the recapture of $171,179.00 of FY 201312014 HOME funds;
Approving and Authorizing the City Manager to reallocate $364,646 of FY 201412015,
$39,634.95 of FY 201312014, $175,357 .72 of FY 201212013, and $73,577.24 of FY 201112012
CDBG funds, filing the amended Action Plans as required by HUD; issuance of a notice of a
thirty (30) day comment period and a public meeting on the proposed Substantial Amendments
to the City's Consolidated Plan and Annual Action Plans to purchase and assume title of five (5)
MBCDC properties.
JLM/KGB/MLR/ARB
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RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
CITY MANAGER TO REALLOCATE $171,179.00 OF FY 201312014 HOME
INVESTMENT PARTNERSHIPS PROGRAM (HOME) FUNDS; APPROVING
AND AUTHORIZING THE CITY MANAGER TO REALLOCATE $364,646 OF
FY 2014t2015, $39,634.95 0F Fy 2013t2014,9175,357.72 0F Fy 2012t2013,
AND $73,577.24 OF FY 201112012 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDS; AMEND THE FY 20141201s ACTTON pLAN;
AMEND THE FY 2013 THROUGH 20f 7 CONSOLTDATED pLAN; ISSUE A
NOTTCE OF A THtRTy (30) DAy PUBLIC COMMENT PERTOD AND
SGHEDULING OF A PUBLIC MEETING ON THE PROPOSED
SUBSTANTIAL AMENDMENTS TO THE CITY'S FY 201412015 ACTION
PLAN AND CONSOLIDATED PLAN; AND REALLOCATE THE AFORESAID
AMOUNT OF CDBG AND HOME FUNDS FOR THE ACQUISITION OF THE
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
PROPERTIES IN ACCORDNACE WITH RESOLUTION NO. 2014.28756 FORTHE ACQUISITION OF THE FOLLOWING PROPERTTES: ALLEN
APARTMENTS; BARCLAY PLAZA APARTMENTS; LOTTIE APARTMENTS;
MADELEINE VILLAGE APARTMENTS; AND NEPTUNE APARTMENTS
(THE',MBGDC PROPERTIES").
WHEREAS, the City is an entitlement recipient of HUD formula grant programs as
follows: Community Development Block Grant (CDBG) funds, and HOME lnvestment
Partnership (HOME) funds; and
WHEREAS, CDBG funds are used to provide vital public services, housing activities,
code enforcement, and improvements to public facilities; HOME funds are used for affordable
housing activities, including multi-family rentals and first-time homeownership; 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, the Action Plan for Federal funds is a requirement under HUD's formula
grant programs, which include the CDBG and HOME Program; and
WHEREAS, HOME and CDBG stipulate that funds be expended within guidelines as
delineated in 24 CFR Part 570 and 24 CFR Part 92, among others; and
WHEREAS, the City finds it is necessary to recapture the funds, and reallocate funds to
other projects; and
WHEREAS, the reallocation of funds to be used for the acquisition of the Allen
Apartments; Barclay Plaza Apartments; Lottie Apartments; Madeleine Village Apartments; and
Neptune Apartments from the Miami Beach Community Development Corporation (MBCDC).
WHEREAS, the resulting CDBG and HOME funds recapture recommendations will be
incorporated into the City's Action Plan; and
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WHEREAS, the City will provide for a thirty (30) day public comment period and a public
meeting on the proposed Substantial Amendments to the Consolidated Plan; and
WHEREAS, the City Manager is the designated agent for all HUD formula grants, and
executes the grant applications, grant agreements, and other applicable HUD documents on
behalf of the City.
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 approve and
authorize the City Manager to recapture and reallocate, respectively, $171,179.00 of FY
2013t2014 HOME funds; reallocate $364,646 of FY 201412015, $39,634.95 of FY 201312014,
$175,357.72 of FY 201212013, and $73,577.24 of FY 201112012 CDBG funds, filing the
amended Action Plans as required by HUD; issuance of a notice of a thirty (30) day comment
period and a public meeting on the proposed Substantial Amendments to the City's
Consolidated Plan and Annual Action Plans to purchase and assume title of five (5) MBCDC
properties.
PASSED AND ADOPTED this day ot 2014.
ATTEST:
CITY CLERK MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
.' i-tt./ Citv Attornev Date
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