R7J-Amend Citys 5-Year Consolidated Plan To Allocate HOME Funds From Prior YearCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission approving and authorizing the City Manager to recapture and reallocate
HOME funds; amend the Five-Year Consolidated Plan; issue a notice of a thirty (30) day comment period on the proposed
Substantial Amendments to the Consolidated Plan; and reallocate the funds to ensure compliance with HUD rules and
the timelv exoenditure of funds.
Sustainable initiatives. Affordable housing for the labor force.
Supporting Data (Surveys, Environmental Scan, etc.: Based on the 2012 Community Satisfaction Survey,80% of
residents believe the City's standard of living is good and improving. 34o/o of businesses rated the lack of affordable
ino in Miami Beach for their labor force as their most im
Item Summary/Recommendation:
As an entitlement community, the City receives an annual allocation of HUD funding. The HOME program has 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. 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 Consolidated Plan is monitored
throughout the year to ensure compliance with federal regulations and progress towards the National Objective, which
stipulates that HOME-funded housing activities must benefit low- and moderate-income persons who earn at or below 80% of
the Area Median lncome (AMl).
ln staffs assessment of the HOME Program, it was determined that there was a remaining balance of funds in the amount of
$271,000 that had not been previously allocated to a specific project. These funds, if not allocated to a project and expended,
would eventually become subject to recapture by HUD for not meeting the timeliness requirements.
Further analysis of the Meridian Place Apartments project (a Miami Beach Community Development Corporation rehabilitation
project) revealed that there was a remaining balance of $48,343 that had been withheld in the construction retainage account.
It was determined that the balance of retainage funds would not be paid to MBCDC. Therefore, these unexpended funds would
also eventually become noncompliant with the timeliness requirement and be subject to recapture by HUD.
The Administration recommends the allocation of $271,000 of previously unallocated HOME funds from prior years to the
London House Apartments project; approving and authorizing the City Manager to recapture $48,343 in HOME funds from the
Meridian Place Apartments project and reallocate those funds to the London House Apartments project; filing the amended
Consolidated Plan as required by HUD; issuance of a notice of a thirty (30) day comment period on the proposed Substantial
Amendments to the City's Consolidated Plan.
Financial lnformation :
Source of Funds:Amount Account
1 $48,343 151.5222.000349
2 $271,000 Account pending
3
Total
Financial lmpact Summary:
Maria Ruiz/Housing & Community Services
AGEIIBA rrrm R-15 -
DATE 1',-I'& AAIAMIBHACH 929
g MIAMI BEACH
City of Miomi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
Mayor Philip Levine and Members of the City Commission
Jimmy L. Morates, City Manag
", 4-f
September 2,2015 /
SUBJECT: A RESOLUTION OF THE MAYOR AND GITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZINGA SUBSTANTIAL AMENDMENT TO THE CITY'S FIVE.YEAR
CONSOLIDATED PLAN TO ALLOCATE $271,000 OF PREVIOUSLY
UNALLOCATED HOME INVESTMENT PARTNERSHIPS (HOME)
FUNDS FROM PRIOR YEARS TO THE LONDON HOUSE
APARTMENTS AFFORDABLE HOUSING PROJECT; AUTHORIZING
THE CITY MANAGER TO RECAPTURE AND REALLOCATE $48,343
OF HOME FUNDS FROM THE MERIDIAN PLACE APARTMENTS
AFFORDABLE HOUSING PROJECT TO THE LONDON HOUSE
APARTMENTS PROJECT; ISSUE A NOTICE OF A THIRTY (30) DAY
PUBLIC COMMENT PERIOD ON THE PROPOSED SUBSTANTIAL
AMENDMENTS TO THE CITY'S FIVE-YEAR CONSOLIDATED PLAN;
AND AUTHORIZING THE CITY MANAGER TO EXECUTE INTER.
DEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF THE FUNDS.
ADMINISTRATION RECOMMENDATION
Adopt the Resotution.
BACKGROUND
The City is an entitlement community designated by the U.S. Department of Housing and Urban
Development (HUD) and as determined by the decennial census information on population
growth lag, age of housing stock, and poverty. As an entitlement community, the City qualifies
for an annual allocation under HUD's grant programs. The HOME lnvestments Partnership
Program (HOME) was established in 1992 to provide funding specifically for affordable housing.
HUD allocates these housing funds to strengthen public/private partnerships and expand the
supply of affordable housing that is decent, safe and sanitary.
The HOME Program has 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. 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, an annual document which defines how the City will utilize its HUD funds, is monitored
throughout the year to ensure compliance with federal regulations and progress towards the
TO:
FROM:
DATE:
930
Commission Memorandum - HOME Funding Reallocation
September 2,2015
Page2 of 3
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
lncome (AMl).
From time-to-time, it is necessary for the City to process a "Substantial Amendment" to the Frve-
Year Consolidated Plan or the Annual 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 "substantial amendment", as follows:
o Addition of a new activity or project not previously described in the Consolidated or
AnnualAction Plan;o Deletion of an activity or project previously described in the Consolidated or Annual
Action Plan;o Change in the purpose, scope, location or beneficiaries of an activity or project
previously described in the Consolidated or Annual Action Plan;o Change in the use of funds from one eligible activity or project to another previously
described in Consolidated or Annual Action Plan; and/or. A cumulative change in the use of funds from an eligible activity to another eligible
activity that decreases an activity's funding by 10o/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 opportunity for the
public to review and comment 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 submitted to HUD.
ANALYSIS
Staff has been analyzing the allocation and expenditure of all of its program funds. ln its
assessment of the HOME Program it was determined that there was a remaining balance of
funds in the amount of $271,000 that had not been previously allocated to a specific project.
These funds, if not allocated to a project and expended, would eventually become subject to
recapture by HUD for not meeting the timeliness requirements.
Further analysis of the Meridian Place Apartments project (a Miami Beach Community
Development Corporation rehabilitation project) revealed that there was a remaining balance of
$48,343 that had been withheld in the construction retainage account. Due to the
mismanagement of funds and the overall lack of properly documented construction operations
and management by MBCDC, it was determined that the balance of retainage funds would not
be paid to MBCDC. Therefore, these unexpended funds would also eventually become
noncompliant with the timeliness requirement and be subject to recapture by HUD.
The Administration is recommending that the above funds, totaling $319,343, be allocated to the
London House Apartments, a City-owned affordable housing project currently being renovated.
This project is well undenruay, with the first phase (the 1965 Washington Avenue building)
having received a Temporary Certificate of Completion (TCC) on May 29,2015. This allocation
of funds would be applied to the financing gap created by the delay of surtax funds awarded to
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Commission Memorandum - HOME Funding Reallocation
September 2,2015
Page 3 of 3
the project by Miami-Dade County but not yet processed and under contract with the City.
CONCLUSION
The Administration recommends approval and authorization of a substantial amendment to the
City's Five-Year Consolidated Plan to allocate previously unallocated and recaptured HOME
funds to the London House Apartments project; issue a notice of a thirty (30) day public review
and comment period on the proposed substantial amendment; and authorizing the City Manager
to execute the interdepartmental agreements for the recipients of the funds.
JLM/KGB/MLRYARB
T_Drive\AGENDA\201S\September\Housing & Community Services\HOME Funds Reallocation MEMO Sept 2015
932
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORTZTNGA SUBSTANTIAL AMENDMENT TO THE CIry'S FIVE.YEAR
CONSOLIDATED PLAN TO ALLOCATE $271,000 OF PREVIOUSLY
UNALLOCATED HOME INVESTMENT PARTNERSHIPS (HOME)
FUNDS FROM PRIOR YEARS TO THE LONDON HOUSE
APARTMENTS AFFORDABLE HOUSING PROJECT; AUTHORIZING
THE CITY MANAGER TO RECAPTURE AND REALLOCATE $48,343
OF HOME FUNDS FROM THE MERIDIAN PLACE APARTMENTS
AFFORDABLE HOUSING PROJECT TO THE LONDON HOUSE
APARTMENTS PROJECT; ISSUE A NOTICE OF A THTRTY (30) DAy
PUBLIC COMMENT PERIOD ON THE PROPOSED SUBSTANTIAL
AMENDMENTS TO THE CITY'S FIVE-YEAR CONSOLIDATED PLAN;
AND AUTHORIZING THE CITY MANAGER TO EXECUTE INTER.
DEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF THE FUNDS.
WHEREAS, the City is an entitlement recipient of HUD formula grant programs and
therefore is the recipient of HOME lnvestment Partnership (HOME) funds; and
WHEREAS, 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 for this grant
program to operate the City's housing and community development activities; and
WHEREAS, the Five-Year Consolidated Plan for Federal funds is a requirement under
HUD's formula grant programs; and
WHEREAS, the HOME Program stipulates that funds be expended within guidelines as
delineated in 24 CFR Par192, among others; and
WHEREAS, the City finds it is necessary to recapture funds, and to reallocate funds to
another project; and
WHEREAS, the reallocation of funds is to be used for the rehabilitation of the London
House Apartments; and
WHEREAS, the resulting HOME funds recapture and reallocation recommendations will
be incorporated into the City's Consolidated Plan; and
WHEREAS, the City will provide for a thirty (30) day public comment period on the
proposed SubstantialAmendments 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 documents on behalf of
the City.
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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 a Substantial Amendment to the City's Five-Year Consolidated Plan to allocate
$271,000 of previously unallocated HOME lnvestment Partnerships (HOME) funds from prior
years to the London House Apartments affordable housing project; authorizing the City Manager
to recapture and reallocate $48,343 of HOME funds from the Meridian Place Apartments
affordable housing project to the London House Apartments project; issue a notice of a thirty
(30) day public comment period on the proposed substantial amendments to the City's Five-
Year Consolidated Plan; and authorizing the City Manager to execute inter-departmental
agreements for the recipients of the funds.
PASSED AND ADOPTED this
-dAY
Of 2015.
ATTEST:
Rafael Granado, City Clerk Philip Levine, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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