C4A-Ref- NCAC - Use Of The Barclay Plaza Apartments As Possible Workforce Housing MIAMIBEACH
TO:
FROM:
DATE:
SUBJECT: REFERRAL TO THE NEIG
COMMITTEE A DISCUSSION
BARCLAY PLAZA APARTMENTS
WORKFORCE HOUSING
ADMI NISTRATION RECOMM ENDATION
Refer the matter to the Neighborhoods/Community Affairs Committee for discussion.
Backqround
At its September 24, 2014 meeting, the Neighborhoods/Community Affairs Committee
directed the Administration to identify a property for potential development as workforce
housing as part of its broader direction to pursue the development of affordable housing
serving those residents earning 120 to 140 percent of Area Median lncome (AMI) and
employed in the public safety, education and municipal sectors. The Mayor and Commission
accepted this recommendation defining workforce housing via Resolution 2014-28794.
For the past year, the City has been working diligently to proactively address a variety of
operational concerns involving Miami Beach Community Development Corporation
(MBCDC). As part of a broader solution, the City acquired several properties previously
owned by MBCDC but fiscally supported by the City. These properties were:. Barclay Plaza Apartmentso Lottie Apartments. Madeleine Village Apartments. Neptune Apartments
All of the properties, except for the Barclay Plaza Apartments, were acquired fully leased.
These properties are now owned and managed for the City as affordable housing
developments in compliance with the terms of the federal funding utilized to acquire and/or
rehabilitate the properties. The following US Department of Housing and Urban
Development (HUD) funds were used in these properties:. Community Development Block Grant (CDBG)o HOME lnvestment Partnership Program (HOME). Neighborhood Stabilization Program (NSP1)
Unfortunately, the Barclay Plaza Apartments, which were acquired January 30, 2015, have
significant capital needs and ongoing building violations. These violations include the failure
to complete its 4O-year certification which has been in arrears since 2011. ln addition, the
building was the victim of an intentional fire on February 2,2015 which is under investigation
by Miami Beach Police. While the fire damage was contained by the sprinkler system,
Agenda ltem
Date
COMMISSION MEMORANDUM
Mayor Philip Levine and Members the City
Jimmy L. Morales, City Manager
March 11,2015
AND COMMUNITY AFFAIRS
REGARDING THE USE OF THE
AS A POSSIBLE LOCATION FOR
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Mayor & City Commission
March 11,2015
Refenal to D,bcuss Barclay Apartmenfs as Posslb/e Site for Workforce Housing
Page 2 of 2
vandals had destroyed the electrical box and elevator controls which had been replaced
using HUD funds.
While the City had initially intended to maintain this property as affordable housing, the
extensive and necessary renovations are expected to cost millions of dollars and the City's
affordable housing funds are insufficient to complete the task as it would take multiple years'
allocations and timeliness deadlines make the project unviable. However, the Barclay
Plaza's central location (located across the street from the Convention Center) offers
potential as a possible location for workforce housing that can be developed in conjunction
with private developers in support of Resolution 2014-28794. The property's close proximity
to shopping, dining, recreational and cultural centers, and access to mass transportation
routes makes this location ideal for a workforce wishing to live, work and play in our
community.
Because the property was the recipient of federal funds and the affordability period was not
achieved, the City would have to refund its invested funds to HUD as a condition of
subsequent development as non-affordable housing. The amount subject to repayment to
HUD is $413,152.56. These funds would be returned to the City's line of credit for
subsequent use to develop or rehabilitate affordable housing for households earning up to
80 percent of AMI ($38,880).
The City can issue a Request For Proposals (RFP) to seek a private partner who can
collaborate with the City to rehabilitate the Barclay Plaza Apartments as workforce housing.
The Committee's direction to market workforce housing to people earning 120 to 140
percent AMI ($57,840 to $67,480 in household income) provides significant latitude in
potential rental rates to attract a broader range of developers than would be expected for an
affordable housing project.
Conclusion
While HUD would need to be repaid for its funds used at the Barclay Plaza Apartments, its
location and potential to attract private developers offers a unique opportunity for the City to
embark on the Committee's direction to develop workforce housing for those residents
earning 120to 140 percent AMI and employed in the public safety, education and municipal
sectors.
JMUKGB/MLR
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