20161214 SM1MIAMIBEACH
Commission Meeting
SUPPLEMENTAL MATERTAL 1 (121e12016)
City Hall, Commission Chambers, 3'o Floor, 1700 Convention Center Drive
December 14,2016
Mayor Philip Levine
Commissioner John Elizabeth Alem6n
Commissioner Ricky Arriola
Commissioner Michael Grieco
Commissioner Joy Malakoff
Commissioner Kristen Rosen Gonzalez
Com missioner Micky Steinberg
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Visrt us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Ghapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
SUPPLEMENTAL AGENDA
C7 - Resolutions
C7 K A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING AND ADOPTING THE TECHNICAL REVISIONS TO THE STATE
HOUSTNG tNtTtATtVES PARTNERSHTP (SHtP) PROGRAM LOCAL HOUSTNG ASSTSTANCE PLAN
(LHAP) THAT TNCREASE THE AMOUNT OF ASSTSTANCE PROV|DED TO ELtctBLE
PARTICIPANTS, AND THE AMENDMENT TO THE LHAP THAT ADDS A NEW ASSISTANCE
STRATEGY WHICH ALLOWS THE CITY TO PURCHASE, REHABILITATE, AND RESELL
PROPERTIES TO ELIGIBLE HOUSEHOLDS TO BECOME HOMEOWNERS; AUTHORIZING
EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE MAYOR AND THE CITY CLERK;
AND FURTHER AUTHORIZING THE CITYADMINISTRATION TO SUBMIT THE AMENDED LHAP
TO THE FLORTDA HOUSTNG FTNANCE CORPORATTON (FHFC) FOR tTS REVTEW ANDAPPRoVAL'
Housing and community services
Supplemental updated on 121912016
(Resolution, Local Housing Assistance Plan & Exhibits)
1
Supplemental 1, December 14,2016
R7 - Resolutions
R7T A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING AND AUTHORIZING THE APPROPRIATION OF $1,201,000 FROM FY
2016117 GENERAL FUND ACCOUNT NO. 011.0930, CULTURALARTS COUNCILACCOUNT NO.
140.6080, AND RESORT TAX ACCOUNT NO. 160.4300; SAID APPROPRIATION TO BE
PROVTDED TO AND UTTLTZED BY THE FRTENDS OF THE BASS MUSEUM, lNC. (THE FRTENDS)
FOR THE PURPOSE OF CONTINUING TO FUND AND PROVIDE CERTAIN OPERATING
EXPENSES FOR THE BASS MUSEUM OF ART (MUSEUM); AND AUTHORIZING THE CITY
MANAGER TO EXECUTE A LETTER AGREEMENT WITH THE FRIENDS, MEMORIALIZING THE
PARTIES' RESPECTIVE OBLIGATIONS WITH REGARD TO CERTAIN MANAGEMENT AND
OPERATION RESPONSIBILITIES OF THE MUSEUM THROUGH SEPTEMBER 30, 2017,
Tourism, Culture and Economic Development
Supplemental updated on 121912016
(Resolution, Agreement & Exhibits)
2
.Agenda ttern C7 Koate tz-ttttF
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE
TECHNICAL REVISIONS TO THE STATE HOUS!NG INITTATIVES
PARTNERSHTp (SHrp) PROGRAM LOCAL HOUSTNG ASSTSTANCE pLAN
(LHAP)THAT TNCREASE THE AMOUNT OF ASSTSTANCE PROVIDED TO
ELIGIBLE PARTICIPANTS, AND THE AMENDMENT TO THE LHAP THAT
ADDS A NEW ASSISTANCE STRATEGY WHICH ALLOWS THE CITY TO
PURCHASE, REHABILITATE, AND RESELL PROPERTIES TO ELIGIBLE
HOUSEHOLDS TO BECOME HOMEOWNERS; AUTHORIZING
EXECUTION OF ANY NECESSARY CERTIFICATIONS BY THE MAYOR
AND THE CITY GLERK; AND FURTHER AUTHORIZING THE CITY
ADMINISTRATION TO SUBMIT THE AMENDED LHAP TO THE FLORIDA
HOUSTNG FTNANCE CORPORATTON (FHFC) FOR ITS REVTEW AND
APPROVAL.
WHEREAS, the State of Florida enacted the William E, Sadowski Affordable Housing Act,
Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on
deeds to local governments for the development and maintenance of affordable housing; and
WHEREAS, the State Housing lnitiatives Partnership (SHIP) Act, ss. 420.907-420.9079,
Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local
governments to develop a one to three-year Local Housing Assistance Plan (LHAP) outlining
how funds will be used; and
WHEREAS, the SHIP Act requires local governments to establish strategies for the use of
SHIP funds and the maximum funds allowable for each strategy therein; and
WHEREAS, housing market conditions have caused home purchase prices to increase to a
level that precludes extremely to very low and low-income individuals and families from
purchasing properties; and
WHEREAS, the SHIP Program requires the City to provide at least 30% of its program funds
allocation to assist very low-income participants; and an additional 30% of Program funds to
assist low-income participants to remain compliant; and
WHEREAS, the City of Miami Beach LHAP strategy for providing homebuyer down payment
assistance is limited to a maximum of $40,000 per moderate-income household, $60,000 per
low-income and very low-income household, and $100,000 per extremely low-income
household; and
WHEREAS, the City's LHAP strategy for providing homeowner rehabilitation assistance is
limited to a maximum of $40,000 per household, regardless of income level, and
WHEREAS, the City wishes to raise the maximum amount of homebuyer down payment
assistance to $50,000 per moderate-income household, $100,000 per low-income and very low-
income household, and $150,000 per extremely- low-income household; and
3
WHEREAS, the City wishes to raise the maximum amount of homeowner rehabilitation
assistance to $70,000 per household, regardless of income level; and
WHEREAS, the City wishes to add an additional strategy to the LHAP that allows the City to
purchase, rehabilitate and resell properties to further increase the opportunities to assist eligible
households to become homeowners; and
WHEREAS, the increased levels of financial assistance, and the new strategy for the use of
SHIP funds, require technical revisions and an amendment to the City's LHAP.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
and adopt the technical revisions to the State Housing lnitiatives Partnership (SHIP) Program
Local Housing Assistance Plan (LHAP)that increase the amount of assistance provided to
eligible participants, and the amendment to the LHAP that adds a new assistance strategy
which allows the City to purchase, rehabilitate and resell properties to eligible households to
become homeowners; authorizing execution of any necessary certifications by the Mayor and
the City Clerk; and further authorizing the City Administration to submit the amended LHAP to
the Florida Housing Finance corporation (FHFC) for its review and approval.
PASSED AND ADOPTED this _ day of 2016.
PHILIP LEVINE, MAYOR
ATTEST:
RAFAEL E. GRANADO, CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
4
City of Miami Beach
sHrP LOCAL HOUSTNG ASSTSTANCE PLAN (LHAP)
FISCAL YEARS
2016-2017, 2017 -2018 and 2018-2019
(Amended 1211412016)
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Description Page #
Section l, Program Details 3
Section ll, Housing Strategies 9
A. Owner-Occupied Rehabilitation:9
B. Disaster Mitigation Recovery 10
C. New Construction 12
D. Purchase Assistance 13
E. Rental Housing Development 15
F. Acquisition/Rehabilitation 16
Section lll, lncentive Strategies 4619
A. Expedited Permitting 1619
B. Ongoing Review Process 1€1r
Exhibits 1+19
A. Administrative Budget for each fiscal year covered in the Plan
B. Timeline for Estimated Encumbrance and Expenditure
C. Housing Delivery Goals Chart (HDGC) For Each FiscalYear
Covered in the plan
D. Signed LHAP Certification
E. Signed, dated, witnessed or attested adopting resolution
Table of Contents
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l. Program Details:
A. Name of the participating local government:
Citv of Miami Beach
ls there an lnterlocalAgreement: Yes No X
B. Purpose of the program:
1. To meet the housing needs of the very low, low and moderate-income
households; and
2. To expand production of and preserve affordable housing; and
3. To further the housing element of the local government comprehensive
plan specific to affordable housing.
C. Fiscal years covered by the Plan:
FY 2016-2017, FY 2017-2018, and FY 2018-2019
D. Governance:
The SHIP Program is established in accordance with Section 420.907-9079,
of the Florida Statutes, and Chapter 67-37of the Florida Administrative Code.
Cities and Counties must be in compliance with these applicable statutes,
rules and any additional requirements as established through the Legislative
process.
E. Local Housing Partnership:
The SHIP Program encourages building active partnerships between
government, lenders, builders and developers, real estate professionals,
advocates for low-income persons and community groups.
ln its efforts to expand affordable housing opportunities, the City of Miami
Beach works to establish and build a relationship with a designated
Comm u n ity Housi ng Development Organ ization (C H DO).
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F.Leveraging:
The Plan is intended to increase the availability of affordable residential units
by combining local resources and cost-saving measures into a local housing
partnership and using public and private funds to reduce the cost of housing.
SHIP funds may be leveraged with, or used to supplement, other Florida
Housing Finance Corporation programs and to provide local match to obtain
federal housing grants or programs.
The City of Miami Beach is an Entitlement Community that receives HOME
and CDBG funds from the U.S. Department of Housing and Urban
Development (HUD), which are used in combination with other local funds, to
leverage SHIP funds to increase affordable housing opportunities and reduce
the cost of housing in the City.
Public lnput:
Public input is solicited through face to face meetings with housing providers,
social service providers, local lenders, and neighborhood associations.
Public input was solicited through the local newspaper in the advertising of
the Local Housing Assistance Plan and the Notice of Funding Availability.
Advertising and Outreach:
SHIP funding availability shall be advertised in a newspaper of general
circulation and periodicals serving ethnic and diverse neighborhoods, at least
30 days before the beginning of the application period. lf no funding is
available due to a waiting list, no notice of funding availability is required.
Additionally, the City's outreach efforts will include public workshops, special
meetings with various social service agencies, the City website, and
meetings with various City departments.
Waiting LisUPriorities:
A waiting list will be established when there are eligible applicants for
strategies that no longer have funding available. Those households on the
waiting list will be notified of their status. Applicants will be maintained in an
order that is consistent with the time applications were submitted as well as
any established funding priorities as described in this plan. Priorities for
funding described/listed here apply to all strategies unless othenruise stated
in the strategy: Special Needs and Essential Services Personnel applicants.
G.
H.
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J. Discrimination:
ln accordance with the provisions of ss.760.20-760.37, it is unlawful to
discriminate on the basis of race, color, religion, sex, national origin, age,
handicap, or marital status in the award application process for eligible
housing.
K. Support Services and Counseling:
Support services are available from various sources. Available support
services may include but are not limited to: Homeownership Counseling,
Credit Counseling, Tenant Counseling, Legal Counseling and Fair Housing
Counseling. All counseling will be provided through qualified HUD approved
agencies.
L. Purchase Price Limits:
The sales price or value of new or existing eligible housing may not exceed
90% of the average area purchase price in the statistical area in which the
eligible housing is located. Such average area purchase price may be that
calculated for any 12-month period beginning not earlier than the fourth
calendar year prior to the year in which the award occurs. The sales price of
new and existing units, which can be lower but may not exceed 90% of the
median area purchase price established by the U.S. Treasury Department or
as described above.
The methodology used is:
X U.S. Treasury Department
Local HFA Numbers
lncome Limits, Rent Limits and Affordability:
The Income and Rent Limits used in the SHIP Program are updated annually
by the Department of Housing and Urban Development and posted at
www. flo rid a h ousi nq. orq.
"Affordable" means that monthly rents or mortgage payments including taxes
M.
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o.
and insurance do not exceed 30 percent of that amount which represents the
percentage of the median annual gross income for the households as
indicated in Sections 420.9071, F.S. However, it is not the intent to limit an
individual household's ability to devote more than 30% of its income for
housing, and housing for which a household devotes more than 30% of its
income shall be deemed Affordable if the first institutional mortgage lender is
satisfied that the household can afford mortgage payments in excess of the
30% benchmark and in the case of rental housing does not exceed those
rental limits adjusted for bedroom size.
N. Welfare Transition Program:
Should an eligible sponsor be used, a qualification system and selection
criteria for applications for Awards to eligible sponsors shall be developed,
which includes a description that demonstrates how eligible sponsors that
employ personnel from the Welfare Transition Program will be given
preference in the selection process.
Monitoring and First Right of Refusal:
ln the case of rental housing, the staff and any entity that has administrative
authority for implementing the local housing assistance plan assisting rental
developments shall annually monitor and determine tenant eligibility or, to the
extent another governmental entity provides the same monitoring and
determination, a municipality, county or local housing financing authority may
rely on such monitoring and determination of tenant eligibility. However, any
loan or grant in the original amount of $3,000 or less shall not be subject to
these annual monitoring and determination of tenant eligibility requirements.
Tenant eligibility will be monitored annually for no less than 15 years or the
term of assistance whichever is longer unless as specified above.
Eligible sponsors that offer rental housing for sale before 15 years or that
have remaining mortgages funded under this program must give a first right
of refusal to eligible nonprofit organizations for purchase at the current
market value for continued occupancy by eligible persons.
Adm inistrative Budget:
A line-item budget of proposed Administrative Expenditures is attached as
Exhibit A. The moneys deposited in the local housing assistance trust fund
shall be used to administer and implement the local housing assistance plan.
Section 420.9075. Florida Statutes and Chapter 67-37, Florida Administrative
Code, states: "A county or an eligible municipality may not exceed the 5
P.
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o.
percent limitation on administrative costs, unless its governing body finds, by
resolution, that 5 percent of the local housing distribution plus 5 percent of
program income is insufficient to adequately pay the necessary costs of
administering the local housing assistance plan."
Section 420.9075, Florida Statutes and Chapter 67-37, Florida Administrative
Code. further states: "The cost of administering the program may not exceed
10 percent of the local housing distribution plus 5 percent of program income
deposited into the trust fund, except that small counties, as defined in s.
120.52(17), and eligible municipalities receiving a local housing distribution of
up to $350,000 may use up to 10 percent of program income for
administrative costs." The City of Miami Beach has adopted the above
findings in the resolution attached as Exhibit E.
Program Administration :
Administration of the local housing assistance plan will be wholly performed and
maintained by the City of Miami Beach. The Office Housing & Community
Services is the department responsible for carrying out the strategies under the
SHIP LHAP.
Project Delivery Costs:
ln addition to the administrative costs listed above, the City of Miami Beach will
charge reasonable project delivery costs to cover project estimates/construction
estimates and project inspections, which will be performed by independent
contractors for construction projects. The fee will not exceed $3,500 and will be
included in the amount of the recorded mortgage and promissory note that
secures the property.
S. Essential Service Personnel Definition:
"Essential Service Personnel" are defined as income-eligible employees of
Miami Beach businesses and organizations in the following industries:
1. Accommodations and Food Services (including arts, entertainment, and
recreation); and
2. Retail Trade; and
3. Public Administration (including City of Miami Beach employees); and
4. Healthcare; and
5. Emergency First Responders
R.
11
T.lncorporation of Green Building and Energy Saving products and
processes:
The City of Miami Beach is committed to making the housing stock more energy
efficient. Therefore, the City will require the use of the following features when
economically feasible in the construction/rehabilitation of homes:
1. Water-conserving appliances and fixtures (toilets, showerheads, and
faucets); and
2. Energy star appliances; and
3. Efficient lighting on both the interior and exterior of homes; and
4. Upgrading of insulation materials (attics, walls, roofing); and
5. Tankless water heaters; and
6. Air conditioning with a higher SEER rating.
Describe efforts to meet the 20o/o Special Needs set-aside:
The City will add Special Needs qualification questions to its program eligibility
application and utilize the City's various communications resources (including
the website, Facebook, Twitter, and an e-newsletter) to advise the community of
this resources. ln addition, the Office of Housing and Community Services (City
department responsible for SHIP Program administration) operates the Success
University Program. This program is a comprehensive family support program
that assists low-income families with various needs, including housing and food.
Through this program, which partners with more than 30 community-based
human services and support agencies, there is an increased opportunity for
identification and referral of eligible households.
V. Describe efforts to reduce homelessness:
The Office of Housing and Community Services is the City department
responsible for the Homeless Outreach Division. As such, it has direct contact
with individuals that are homeless and living in the streets, as well as
individuals/families that are facing the threat of homelessness. Working in
conjunction with other agencies providing certain support services, there is an
opportunity to identify households that may be assisted through participation in
the SHIP Program. Especially those households being provided with
employment and credit repair assistance. The City purchases emergency shelter
beds and sets aside General Funds in order to provide downpayment and
security deposits for eligible households transitioning from homelessness.
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ll. LHAP Strategies:
A.
Owner-Occupied Rehabilitation :Code 3
a. Summary of the Strategy: Rehabilitation/Repair of single-family
(including condominiums), owner-occupied housing. "Rehabilitation" will
be defined as repairs or improvements that are needed for safe or
sanitary habitation, correction of substantial code violations, structural or
systems faults, or the creation of additional living space. Cosmetic items
may be included on projects if funds are available after completing all
required repairs.
b. Fiscal Years Covered: 2016-2017,2017-2018 and 2018-2019
c. lncome Categories to be served: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40pOO $70.000
e. Terms:
1.Loan/deferred loan/grant: Deferred Loan, secured by a
recorded note and mortgage
lnterest Rate: 0%
Term: 15 years
Forgiveness/Repayment: Forgivable at the end of the term.
DefaulURecapture: The outstanding balance is immediately
due if the property is sold, rented, refinanced or the property
fails to be the owner's primary residence during the fifteen year
term. ln the event that title to the property is transferred, as the
result of death, to a rightful heir that is income-eligible, and that
heir occupies the property as his/her principal residence, then
the original terms shall continue in effect. Notwithstanding the
previous restrictions, the owner shall be allowed to refinance
without being subject to the provisions set forth therein, as long
2.
3.
4.
5.
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as the amount of the refinancing does not exceed the then
outstanding balance of the first mortgage. No additional cash
out will be allowed. Subordination will only be approved if the
refinancing will lower the current mortgage payment and/or
interest rate. The City's interests will be secured through the
execution of a mortgage and promissory note, as well as a
Restrictive Covenant delineating the recapture period and
terms.
f. Recipient Selection Criteria: All recipients of assistance must meet the
applicable eligibility requirements as stipulated in the Florida Statutes,
SHIP Rule, and this Plan. Applicants will be selected from a waiting list
on a first-qualified, first-served basis. Special Needs households will be
given priority funding until the City fulfills the minimum SHIP Program
requirements for assistance to this target population.
g. Sponsor Selection Criteria: NA
h. Additional Information: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of Miami
Beach corporate limits.
B.
Disaster Mitigation Code 5
a. Summary of Strategy: Emergency Assistance to eligible households
after the occurrence of a disaster declared by Executive Order
(President of the United States or Governor of the State of Florida). ln
the event of a disaster, the City will commit available unencumbered
SHIP funds, as well as other disaster funds that may become available
through the Florida Housing Finance Corporation or any other
emergency funding sources. Disaster funds may be used for, but not
limited to, the following:
1) Purchase of emergency supplies; weatherproofing a damaged
home;
2) lnterim repairs to prevent further damage; tree and debris removal
to make the housing unit habitable;
3) Payment of insurance deductibles for rehabilitation of homes
covered under homeowners' insurance policies; and
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4) Other activities as proposed by the Federal Government, counties
and eligible municipalities and approved by Florida Housing Finance
Corporation.
b. Fiscal Years Covered: 2016-2017,2017-2018 and 2018-2019
c. lncome Gategories to be served: Extremely low, very low, low,
moderate-income.
d. Maximum award: $40,000
e. Terms:
Loan/deferred loan/grant: Deferred Loan, secured by a
recorded note and mortgage
lnterest Rate: 070
Term: 15 years
Forgiveness/Repayment: Forgivable at the end of the term.
DefaulURecapture: The outstanding balance is due if the
property is sold, rented, refinanced or the property fails to be the
owner's primary residence during the fifteen year term. ln the
event that title to the property is transferred, as the result of death,
to a rightful heir that is income-eligible, and that heir occupies the
property as his/her principal residence, then the original terms
shall continue in effect. Notwithstanding the previous restrictions,
the owner shall be allowed to refinance without being subject to
the provisions set forth therein, as long as the amount of the
refinancing does not exceed the then outstanding balance of the
first mortgage. No additional cash out will be allowed.
Subordination will only be approved if the refinancing will lower
the current mortgage payment and/or interest rate. The City's
interests will be secured through the execution of a mortgage and
promissory note, as well as a Restrictive Covenant delineating the
recapture period and terms.
Recipient Selection Criteria: All recipients of assistance must meet
the applicable eligibility requirements as stipulated in the Florida
Statutes, SHIP Rule, and this Plan. Applicants will be selected from a
waiting list on a first-qualified, first-served basis.
Sponsor Selection Criteria: NA
1.
2.
3.
4.
5.
f.
g.
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h. Additional lnformation: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of
Miami Beach corporate limits.
c.
New Construction Code 10
a. Summary of Strategy: To develop homeownership opportunities to
assist eligible buyers to purchase affordable housing in Miami Beach.
Funds will be provided to developers to be used to finance the costs
associated with site acquisition/development, and hard and soft
construction costs. The developer will deliver at least one housing unit for
each maximum award that is allocated for the property construction. The
property must be sold to an income-eligible homebuyer. Upon sale, the
SHIP funding obligations will be passed to the homebuyer and secured by
a note and mortgage.
b. Fiscal Years Covered: 2016-2017,2017-2018 and 2018-2019
c. lncome Categories to be served: Extremely low, very low, low,
moderate-income.
d. Maximum award: $40,000
e. Terms:
1.
2.
3.
4.
5.
Loan/deferred loan/grant: Deferred Loan, secured by a
recorded note and mortgage.
lnterest Rate: 0%
Term: 15 years
Forgiveness/Repayment: Forgivable at the end of the term.
DefaulURecapture: No payments will be required during the
construction phase. The maximum amount of time allowed for
the construction of the property will coincide with the SHIP
Program expenditure requirements based on the fiscal year
funds that are provided. lf the home is not completed within the
stated timeframe the developer will be required to repay the
SHIP funds.
Once construction is completed the unit will be sold at an
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agreed sales price to an eligible homebuyer. The SHIP subsidy
will be passed on to the homebuyer with the homebuyer only
required to provide financing that represents the property sales
price minus the amount of the SHIP subsidy. The outstanding
balance of the subsidy is due if the property is sold, rented,
refinanced or the property fails to be the owner's primary
residence during the fifteen year term. ln the event that title to
the property is transferred, as the result of death, to a rightful
heir that is income-eligible, and that heir occupies the property
as his/her principal residence, then the original terms shall
continue in effect. Notwithstanding the previous restrictions, the
owner shall be allowed to refinance without being subject to the
provisions set forth therein, as long as the amount of the
refinancing does not exceed the then outstanding balance of
the first mortgage. No additional cash out will be allowed.
Subordination will only be approved if the refinancing will lower
the current mortgage payment and/or interest rate. The City's
interests will be secured through the execution of a mortgage
and promissory note, as well as a Restrictive Covenant
delineating the recapture period and terms.
Recipient Selection Criteria: All recipients of assistance must meet the
applicable eligibility requirements as stipulated in the Florida Statutes,
SHIP Rule, and this Plan. Applicants will be selected from a waiting list
on a first-qualified, first-served basis.
Sponsor Selection Criteria: Developers will respond to an RFP process
which will require confirmation of the developer's experience, financial
capacity, site control, and ability to secure all necessary funds to proceed.
g. Additional lnformation: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of Miami
Beach corporate limits.
f.
f.
D.
Purchase Assistance Codes 1, 2
Summary of Strategy: Down payment, closing cost and rehabilitation
assistance for the purchase of new or existing housing, and the
rehabilitation of those properties, for first-time homebuyers. A first-time
homebuyer is defined as a purchaser that has not owned a home in at
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b.
c.
d.
least the last three years.
Fiscal Years Govered: 2016-2017,2017-2018 and 2018-2019
lncome Categories to be served: Extremely low, very low, low, or
moderate-income.
Maximum award:
1 . $4O$OO $50, 000 (Moderate-lncome)
2. $60$00 $100,000 (Low and Very Low-lncome)
3. ${€O$OO $150,000 (Extremely Low-lncome)
Terms:
1. Loan/deferred Ioan/grant: Deferred Loan, secured by a
recorded note and mortgage.
2. lnterest Rate: 0%
3. Term: 15 years
4. Forgiveness/Repayment: Forgivable at the end of the
term.
5. DefaulURecapture: The outstanding balance is due if the
property is sold, rented, refinanced or the property fails to
be the owner's primary residence during the fifteen year
term. ln the event that title to the property is transferred, as
the result of death, to a rightful heir that is income-eligible,
and that heir occupies the property as his/her principal
residence, then the original terms shall continue in effect.
Notwithstanding the previous restrictions, the owner shall be
allowed to refinance without being subject to the provisions
set forth therein, as long as the amount of the refinancing
does not exceed the then outstanding balance of the first
mortgage. No additional cash out will be allowed.
Subordination will only be approved if the refinancing will
lower the current mortgage payment and/or interest rate.
Additionally, if the unit is sold prior to the completion of the
affordability period, part of the equity produced by the sale
shall be reimbursed to the City as follows: lf the unit is sold
between the first and the tenth year, 50o/o of the profit shall
be paid to the City; if the unit is sold between the eleventh
and fifteen year, 25o/o of the profit shall be paid to the City.
The profit is defined as the sales price at the time of default
minus the sales price of the property at the time the
homeowner acquired it with the assistance of the SHIP
e.
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g.
h.
subsidy.
The City's interests will be secured through the execution of
a mortgage and promissory note, as well as a Restrictive
Covenant delineating the recapture period and terms.
Recipient Selection Criteria: All recipients of assistance must meet
the applicable eligibility requirements as stipulated in the Florida
Statutes, SHIP Rule, and this Plan. Applicants will be selected from a
waiting list on a first-qualified, first-served basis.
Sponsor Selection Criteria: NA :
Additional lnformation: Mobile homes and trailers are not eligible for
this strategy. Assisted properties must be located within the City of
Miami Beach corporate limits.
E.
Rental Development Code 14
a. Summary of Strategy: Funds will be provided to for-profit and non-profit
developers to be used to finance the costs of acquisition and/or the hard
and soft costs of rehabilitating multi-family buildings. Funds will also be
utilized for the acquisition and/or rehabilitation of multi-family buildings
owned and operated by the City.
b. Fiscal Years Covered: 2016-2017,2017-2018 and 2018-2019
c. lncome Categories to be serued: Extremely low, very low, low, or
moderate-income.
d. Maximum award: $40,000/Unit
e. Terms:
1.Loan/deferred loan/grant: Deferred Loan, secured by a
recorded note and mortgage.
lnterest Rate: 0%
Term: 30 years
Forgiveness/Repayment: Forgivable at the end of the term.
2.
3.
4.
-15-
19
g.
h.
5. DefaulURecapture: Outstanding balance of the SHIP subsidy
will be due if the property is sold or transferred, or the property
fails to be used for affordable housing during the thirty year
term. For properties owned by developers, where funding was
provided for acquisition, the City may impose a reverter
provision at the end of the term, when the property is not
subject to any limitations by superior lienholders, if it is found to
be in the best interest of City to maintain the affordable housing
beyond the affordability period when the developer is
converting the project to market rate development. The reverter
clause will not be used if the recipient volunteers to keep a
negotiated percentage of the units affordable to very low, low
and moderate-income households. The City's interests will be
secured through the execution of a mortgage and promissory
note, as well as a Restrictive Covenant delineating the
recapture period and terms.
Recipient Selection Criteria: All tenants of properties assisted with
SHIP funds must meet the eligibility requirements as stipulated in the
applicable Florida Statutes, SHIP Rule, and this Plan.
Sponsor/Developer Selection Criteria: Developers will respond to an
RFP process which will require confirmation of the developer's
experience, financial capacity, site control, and ability to secure all
necessary funds to proceed.
Additional lnformation: Assisted properties must be located within the
City of Miami Beach corporate limits.
F.
Acq uisition/Rehabi I itation Code 9
a. Summarv of Strateqv: To develop homeownership opportunities to
assist eligible buyers to purchase affordable housinq in Miami Beach.
Funds will be utilized bv the Citv of Miami Beach to finance the costs
associated with acquisition/rehabilitation of available properties for sale to
income-eliqible homebuyers. The City will deliver at least one housinq
unit for each maximum award that is allocated for the propertv acquisition
and rehabilitation. Upon sale, the SHIP fundinq obliqations will be passed
to the homebuver and secured by a note and mortqaqe.
-16-
20
c.
d.
b. Fiscal Years Govered: 2016-2017 2017 -2018 and 201 8-2019
lncome Categories to be served: Extremelv low, very low, low. or
moderate-income.
Maximum award:
1. $50,000 (Moderate-lncome)
2. $100,000 (Low and Very Low-lncome)
3. $1 50.000 (Extremelv Low-lncome)
e. Terms:
6. Loan/deferred loan/qrant: Deferred Loan. secured bv a
recorded note and mortqaqe.
7. lnterest Rate: 0%
8. Term: 15 vears
9. Forgiveness/Repavment: Forqivable at the end of the term.
l0.DefaulURecapture: Once construction is completed, the unit
will be sold at an aqreed sales price to an eligible homebuyer.
The SHIP subsidv will be passed on to the homebuver with the
homebuver onlv required to provide financinq that represents
the propertv sales price minus the amount of the SHIP subsidv.
The outstandinq balance of the subsidv is due if the property is
sold, rented, refinanced. or the property fails to be the owner's
primary residence durino the fifteen vear term. ln the event that
title to the propertv is transferred. as the result of death, to a
riqhtful heir that is income-eliqible. and that heir occupies the
propertv as his/her principal residence, then the oriqinal terms
shall continue in effect. Notwithstandinq the previous
restrictions, the owner shall be allowed to refinance without
beinq subiect to the provisions set forth therein, as lonq as the
amount of the refinancinq does not exceed the then
outstandinq balance of the first mortqaqe. No additional cash-
out will be allowed. Subordination will only be approved if the
refinancinq will lower the current mortqaqe pavment and/or
interest rate. The Citv's interests will be secured throuqh the
execution of a mortqage and promissory note, as well as a
Restrictive Covenant delineatinq the recapture period and
terms.
-17 -
21
Recipient Selection Criteria: All recipients of assistance must meet the
applicable eliqibility requirements as stipulated in the Florida Statutes.
SHIP Rule. and this Plan. Applicants will be selected from a waitinq list
on a first-qualified. first-served basis.
Sponsor Selection Criteria: NA
Additional lnformation: Mobile homes and trailers are not eliqible for
this strateqy. Assisted properties must be located within the Citv of Miami
Beach corporate limits.
il.LHAP lncentive Strategies
Name of the Strategy: Expedited Permitting
Permits, as defined in s. 163.3177 (6) (0 (3) for affordable housing projects,
are expedited to a greater degree than other projects.
This incentive gives priority to designated affordable housing projects when
scheduling pre-design conferences with relevant City agencies including, but
not limited to: Fire, Planning and Zoning, Building, Historic Preservation, and
the Office of Housing and Community Services (HCS). Also, when the plans
are ready for permitting, first priority is given. The City will develop a form to
identify the projects reviewed by the HCS.
The incentive was enacted by administrative action in February, 1997.
Name of the Strategy: Ongoing Review Process
This incentive provides for an ongoing process for review of local policies,
ordinances, regulations and plan provisions that increase the cost of housing
prior to their adoption.
Prior to the adoption of any proposed policy, procedure, ordinance,
development plan, regulation, or Comprehensive Plan amendment that might
impact housing, the City evaluates its potential effect and cost on affordable
housing through the Director of the Office of Housing and Community
Services (HCS). The HCS may present proposed legislation to applicable
g.
A.
B.
-18-
22
City boards and committees for their review as they may impact housing.
IV. EXHIBITS:
A. Administrative Budget for each fiscal year covered in the Plan.
B. Timeline for Estimated Encumbrance and Expenditure.
C. Housing Delivery Goals Chart (HDGC) For Each Fiscal Year Covered in the
plan.
D. Signed LHAP Certification.
E. Signed, dated, witnessed or attested adopting resolution.
-19-
23
ADMINISTRATIVE BUDGET FOR EACH FISCAL YEAR
(Local Government name)
LHAP 2009-001
Exbibit A
Revised: 612075
Exhibit A
0.1 00001
0.1 00001
0.1 00001
*All "other" items need to be detailed here and are subject to review and
approval by the SHIP review committee.
Details:
FiscalYear: 2016-2017
Estimated Allcoation for
Salaries and Benefits
Ofiice Supplies and Equipment
Travel Per diem Workshops, etc,
Advertising
Other*
$
$
$
$
$
33,070,00
1,000.00
750,00
1,925,00
36,745.00
Fiscal Year:2017-2018
Estimated Allcoation for Calculati 367.448.00
Salaries and Benefits
Office Supplies and Equipment
Travel Per diem Workshops, etc,
Advertising
Other*
33,070,00
1,000,00
750.00
1,925,00
$
$
$
$
$
s6,745.00
Fiscal Year 2018-2019
Estimated Allcoation for Calcu
Salaries and Benefits
flice Supplies and Equipment
Travel Per diem Workshops, etc,
33,070,00
1,000.00
750,00
1,925.00
36,745,00
24
Exhibit B
Timeline for SHlP Expenditures
City of Miami Beach affirms that funds allocated for these fiscal years will meet the following deadlines:
lf funds allocated for these fiscal years is not anticipated to meet any of the deadlines in the table above,
Florida Housing Finance Corporation will be notified according to the following chart:
Fiscal Year Funds Not
Encumbered
Funds Not
Expended
1't Year AR
Not
Submitted
2no Year AR
Not
Submitted
Closeout AR
Not
Su bmltted
2076-20L7 3/30/2018 3/30/20L9 6l\slz0t7 6/1.s/20L8 611.s/20te
20L7-2018 3l30/201.e 3/3012020 611sl20t8 I G/ts/zotg 6lls/2020
20L8-20t9 313012020 3/3012021 6ltsl201s 6/1,s12020 6llsl202r
Requests for Expenditure Extensions (close-out year ONLY) must be received by FHFC by June 15 of the
year in which funds are required to be expended. The extension request shall be emailed to
robert.dearduff@floridahousing.org and terrv,aurinser@floridahousine.ors and include:
1, A statement that "(city/county) requests an extension to the expenditure deadline for fiscal
year _.2, The amount offunds that is not expended.
3, The amount of funds that is not encumbered or has been recaptured.
4, A detailed plan of how/when the money will be expended,
Note: an extension to the expenditure deodline (June 30) does not relieve the requirement to submit
(September 1-5)the annuol report online detailing allfunds thqt hqve been expended, Please emoil
terrv.ourinoer@fJoridahousino,oro when you ore reody to "submit" the AR.
Other Key Deadlines:
AHAC reports are due for each local government by December 31 of the year prior to the local
government's LHAP being submitted. Localgovernments receiving the minimum or less allocation are not
required to report,
Fiscal Year Encumbered Expended 1" Year AR 2'" Year AR Closeout AR
20t6-2017 6/3012018 6130/2079 9/tsl20t7 sltsl2078 elL5l201e
2017-2018 6/30/201e 6130/2020 9/Lsl2O1.8 e/Ls/201s sl1.s/2020
20L8-20L9 6/30/2020 6/30/2021:el1.s/201.e ells/2020 e/ls/2021
25
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Exhibit D
67-37,005(l ), F,A,C,
Effective Date: 05/2016
CERTIFICATION TO
rL,oRrpA HgusrNG TTNANCE CORPOMTTON
Local Goyemment or Interlocal Entity; Citv of Miami Beach
Certifies that:
(l )
(2)
The availability of SHIP funds will be advertised pursuant to progmm requirements in
420.9 07 -420.9 079, Florida Sratures,
AII SHIP funds will be expended in a manner which will insure that thsre will be no
discrimination on the basis of race, color, national origin, sex, handicap, familial status) or
religion.
A process to determine eligibility and fsr selection of recipients for funds has been
developed.
Recipients of funds will be required to contractually commit to program guidelines and loan
terms.
(3)
(4)
(5) Florida Housing will be notified promptly if the local govemment /interlocal entity will be
unable to comply with any provision of the local housing assistance plan (LHAP),
(6) The LFIAP provides a plan for the expendifure of SHIP funds including allocation, program
income and recapt ured funds within 24 months following the end of the State fiscal year in
which they are received,
(7) The LHAP conforms to the Local Govemment Comprehensive Plan, or that an amendment to
the Local Govemment Comprehensive Plan will be initiated at the next available opporn:nity to
insure conformance with the LHAP,
(8) Amendments to the approved LHAP shall be provided to the Florida Housing for review and/or
approval wjthin 21 ciays after adoption.
(9) The tnrst flrnd exists with a qualified depository for all SHIP funds as well as pro$arn
income or recaptr.red funds.
(10) Amounts on deposit in the local housing assistance trust fund shall be invested as permitted by
1aw,
(1 1) The local housing assistance trust fund shall be separately stated as a special revenue fund in
the local goverffnents audited financial statements (CAFR), An electronic copy of the CAFR or
a hyperlink to the document shall be provided to Florida Housing by June 30 of the applicable
year,
29
Exhibit D
61-37,00s(r), r,A.c.
Elfective Date: 05i201 6
(12) Evidence of compliance with the Flodda Sing.le Audit Act, as referenced in Section 215.97, F.S
shall be provided to Florjda Flousing by Jru:e 30 ofthe applicable year,
(13) SHIP fi.u:rds will not be pledged flor debt seryice on bonds.
(14) Developers receiving assistance fi'om both SHIP and the Low Income Housing Tax
Credit (LIHTC) Program shall comply with lhe income, affordability and other LII-IC
Lequirements, similarly, any units receiving assistance fi'om other federal proglams shall
comply with all Federal and SHIP program requirements.
(1 5) Loans shall be provided for periods not exceeding 30 years, except for deferred paymert
loans or Ioans that extend beyond 30 yeals which continue to serve eligible persons,
(i 6) Rental Units constructed or rehabilitated with SHIP flinds shall be monitored for
cornpliance with tenant income requirements and affordability requirements or as required
in Section 420.907 5 (3)(e), To the extent another governmental entity provides periodic
rnonitorigg and determination, a municipality, couilty or local housing furancing authorify
may rely on such monitoring and determination of tenant eligibility,
( 1 7) The LHAP meets the requirerrents of Section 420-907 -907 9 FS. and Rule Chapter 67 -37
FAC.
(1 8) The provisions of Clupter 83-22Q, Laws of Florida have not been irnplemented (except for
Miami-Dade County)
icial or designee
ine- Ma
Witness Name and Title
?-ae-/L
Date
APPROVED ASTO
FORM & LANGUAGE
30
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
clTY oF MtAMt BEACH, FLORIDA, APPROVING AND ADOPTING THE
crTY oF MrAMr BEACH LOCAL HOUSING ASSTSTANCE PLAN (LHAP),
ATTACHED TO THIS RESOLUTION, FOR THE STATE HOUSING
rNrflATrvES PARTNERSHIP (SHIP) PROGRAM FOR FISCAL YEARS
2016t2017,2017t2018, AND 2018/2019, AS REQUIRED BY THE STATE
HOUSING INITIATIVES PARTNERSHIP PROGRAM ACT,
SUBSECTIONS 42A.907 - 420.9079, FLORIDA STATUTES;
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
NECESSARY CERTIFICATIONS; AUTHORIZING THE ADMINISTRATION
TO SUBMIT THE LHAP TO THE FLORIDA HOUSING FINANCE
CORPORATTON (FHFC) FOR ITS REVIEW AND APPROVAL;
A,UTHORIZING THE APPROPRIATTON OF SHIP PROGRAM FUNDS FOR
FtscAL YEARS 2016t2017,20171?;018 AND 2018/2019, lN AMOUNTS TO
tsE DETERMINED BY THE STATE OF FLORIDA OR SUCH FINAL
ALLOCATION AMOUNTS AS ADJUSTED BY THE FHFC; AND
FURTHER AUTHORIZING THE APPROPRIATION OF ANY INTEREST
ACCRUED THEREON FOR ELIGIBLE ACTIVITIES UNDER THE SHIP
PROGRAM RULES.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act,
Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on
deeds to local governments for the developrnent and maintenance of'affordable housing; and
WHEREAS, the State Housing lnitiatives Partnership (SHIP) Act, ss. 420307-420.9079,
Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local
governments to develop a three-year Local Housing Assistance Plan (LHAP) outlining how
funds will be used; and
WHEREAS, the SHIP Act requires local governments to establish the maximum SHIP funds
allowable for each strategy; and
WHEREAS, as required by section 420.9075, F.S., it is found that 5 percent of the local
housing distribution plus 5 percent of program income is insufficient to adequately pay the
necessary costs of administering the local housing assistance plan. The cost of administering
the prograrn rnay not exceed 10 percent (10%) of the localhousing distribution plus five percent
(5%) of program income deposited into the trust fund, except that small counties, as defined in.s.
120.52(17), and eligible municipalities receiving a local housing distribution of up to $350,000
may use up to 10 percent of program income for administrative costs.
WHEREAS, the Administration has prepared a new LHAP, incorporated herein by reference
and attached as Exh,ibil ?{" hereto, for Fiscal Years 2016/2017,201712018 and 2018/2019, in
31
order to qualify to receive annual allocations of SHIP Program funds for eligible housing
activities; and
WHEREAS, the Administration recommends authorizing the appropriation of SHIP Program
funds for Fiscal Years 2A1612017,201712018 and 201812019 in amounts to be determined by
the State, or such final allocation amounts as may be adjusted by the FHFC; as well as the
appropriation of any interest accrued thereon for eligible activities under the SHIP Program
Rules.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
and adopt the Local Housing Assistance Plan (LHAP) attached to this Resolution for the State
Housing lnitiatives Partnership (SHIP) Program for Fiscal Years 201612017,201712018 and
201812019, as required by the SHIP Act, Subsections 420.907 - 420.9079, Florida Statutes;
authorize the execution of the necessary certifications by the Mayor and the City Clerk;
authorize the Administration to submit the LHAP to the Florida Housing Finance Corporation for
its review and approval; authorize the appropriation of SHIP Program funds for Fiscal Years
201612017,201712018 and201812019, in amounts to be determined by the State of Florida, or
such final allocation amounts as adjusted by the Florida Housing Finance Corporation; and
further authorize the appropriation of any interest accrued thereon for eligible activities under
the SHIP Program Rules,
Passed and adopted this '13
aay ot AOrr'/ , 2016.
APPROVED A$TO.FORM & LANGUAGE
r'rtrotb
-
Dote
It4- '.
ffi]qj*tul9l;il* \"J-4l2|g-g
i* ilr'rconel
ftr$
T:\AGENDAI20'16\Apdl 1$LHAP CC Resolufion 4-13-20.l6
32
Agenda rtem R1f
oate vlW
RESOLUTION NO
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
APPROPRIATION OF $1,201,000 FROM FY 2016117 GENERAL FUND
ACCOUNT NO. 011.0930, CULTURAL ARTS COUNCIL ACCOUNT NO.
140.6080, AND RESORT TAX AGCOUNT NO. 160.4300; SAID
APPROPRIATION TO BE PROVIDED TO AND UTILIZED BY THE FRIENDS
oF THE BASS MUSEUM, tNC. (THE FRTENDS) FOR THE PURPOSE OF
CONTINUING TO FUND AND PROVIDE CERTAIN OPERATING EXPENSES
FOR THE BASS MUSEUM OF ART (MUSEUM); AND AUTHORIZING THE
CITY MANAGER TO EXECUTE A LETTER AGREEMENT WITH THE
FRIENDS, MEMORIALIZING THE PARTIES' RESPEGTIVE OBLIGATIONS
WITH REGARD TO CERTAIN MANAGEMENT AND OPERATION
RESPONSIBILITIES OF THE MUSEUM THROUGH SEPTEMBER 30, 2017.
WHEREAS, the Bass Museum (Museum) was established from its inception as a strong
public/private partnership through a contractual agreement entered into in 1963 between the
City of Miami Beach (City) and John and Johanna Bass, whereby the City accepted the gift of
the art collection of John and Johanna Bass (the Collection), in exchange for making the
Collection open and available to the public in a building maintained by the City (the 1963
Agreement and all subsequent amendments thereto are hereinafter referred to as the "1963
Bass Agreement"); and
WHEREAS, the 1963 Bass Agreement, requires the City to maintain the Bass Collection
in perpetuity; provide for the exhibition of the Collection; keep it open and available to the public;
and provide basic funding for the maintenance and exhibition of the Collection; and
WHEREAS, the City fulfills this obligation by funding the operational elements of the
Bass Museum and maintaining the building, which is a City asset; and
WHEREAS, the 1963 Bass Agreement further stipulates that the Bass Museum shall be
overseen by a Board of Trustees which has the responsibility for Museum policies and
procedures, as well as day-to-day management through the staff it employs; and
WHEREAS, since 2008, the Administration has been working closely with the Bass
Board of Trustees (Bass Board) and the Friends of the Bass Museum, lnc. (Friends) to
streamline the current governance model, standardize employment practices, and empower the
Museum to fully realize its potential as the City's prominent art institution; and
WHEREAS, on March 10, 2010, the City Commission adopted Resolution No. 2010-
27349 which approved an Amended and Restated Bass Museum Agreement between the City
and Dennis Alan Richard (as successor in interest to John and Johanna Bass); and
WHEREAS, the Amended and Restated Agreement was intended to replace and
supersede the 1963 Bass Agreement, and, among other things: (1) reaffirmed the city's
continual obligation to fund and maintain the Collection at the Museum building, under the
current name, "The Bass Museum of Art"; (2) provided guidelines for the maintenance of the
Museum building; (3) confirmed governance of the Museum pursuant to an independent 501(c)3
corporation (the Friends), through its board of directors, with the City Manager holding one of
the seats on the board; and (4) established oversight by an independent executive director; and
33
WHEREAS, since 2009, the City has approved Resolution Nos. 2009-27089, 2009-
27216, 2010-27505, 2011-27757, 2012-28027, 2013-28363, 2014-28764 and 2015-29168 all
with corresponding letter agreements, whereby the City agreed to appropriate and transfer
budgeted operating funds for the Museum, in consideration of the Friends' agreement to
undertake certain management and operational responsibility (on behalf of the City) for the
Museum; and
WHEREAS, the City and Friends have agreed to execute another letter agreement (the
Letter Agreement) for Fiscal Year (FY) 2016117, whereby the Friends will continue to provide
certain oversight and management responsibilities relative to the Bass Museum through
September 30,2017
WHEREAS, the Administration recommends that the City Commission approve the
Letter Agreement attached and incorporated herein by reference as Exhibit A hereto.
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 approve and authorize the appropriation of $1,201,000 from FY 2016117
General Fund Account No. 011.0930, Cultural Arts Council Account No. 140.6080, and Resort
Tax Account No. 160.4300; said appropriation to be provided to and utilized by the Friends of
the Bass Museum, lnc. (the Friends) for the purpose of continuing to fund and provide certaln
operating expenses at the Bass Museum of Art (Museum) through September 30,2017', and
further authorize the City Manager to execute a new Letter Agreement with the Friends,
memorializing the parties' respective obligations with regard to certain management and
operation responsibilities of the Museum through September 30,2017.
PASSED and ADOPTED this 14th day of December 2016.
PHILIP LEVINE, MAYOR
ATTESTED BY:
RAFAEL E. GRANADO, CITY CLERK
T:\AGEN DA\201 5\October\TCED\Bass Museum\Bass Museum Reso 20 1 5 1 6.doc
34
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139 Tel. 305-673-7010 Fax: 305-673-7782
Jimmy Morales, City Manager
Tel. 305-673-701 0, Fax; 305-673-7782
December 14,2016
George Lindemann, President
Friends of the Bass Museum, Inc.
2l2l ParkAvenue
Miami Beach, Florida 33139
Re: Agreement between the City of Miami Beach, Florida (the City) and the
Friends of the Bass Museum, Inc. (the Friends) for the Continued
Management and Operation of the Bass Museum of Art from October 1,
2016 to September 30, 2017.
Dear Mr. Lindemann,
The following letter agreement (the Letter Agreement or Agreement) shall confirm the
understanding between the City and the Friends, with regard to the Friends' agreement to
continue providing certain management and operational responsibilities at the Bass
Museum of Art , located at a building (the Bass Museum building) owned by the City,
having a street address of 2l2l Park Avenue, Miami Beach, Florida (hereinafter the Bass
Museum or the Museum), for a term commencing, retroactively, on October 1,2016
(Commencement Date) and terminating on September 30,2017 (the Term).
Throughout the Term, the Friends agree to provide the following services in support of
the ongoing management and operation of the Bass Museum (hereinafter, such services
are collectively referred to as the Services):
Administer, operate, and maintain the John and Johanna Bass Collection (the
Collection), as contemplated pursuant to the terms and conditions of that certain
agreement between the City and John and Johanna Bass, dated July 8, 1963, as
amended (the "1963 Bass Agreement"); as amended and restated on March 31,
2010 by that certain Amended and Restated Agreement between the City and
Dennis Alan Richard, as successor in interest to John and Johanna Bass (the "Bass
Agreement").
Develop and implement exhibitions, programs, and activities which support and
promote the goals and priorities agreed upon by the City and the Friends
(including, without limitation, those which are consistent with and continue to
further the purposes set forth in the Bass Agreement).
EXHIBIT
ftPage I of9
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o Provide certain day-to-day administrative services in support of the Collection, as
well as any and all other art work(s) in the Museum, and the aforestated activities,
to ensure that the Museum continues to be operated, managed, and maintained in
a first-class manner, consistent with similar world-class public museums of
comparable size and budget to the Bass Museum and including, without
limitation, acquisition of services, equipment, and supplies; day-to-day
housekeeping and maintenance; record-keeping; collections and billings; and
similar services.
The Friends represent to the City that, prior to the commencement of the Term, its
authorized representatives have inspected the Bass Museum building; accordingly, the
Friends hereby accept the building "AS IS, WHERE IS, AND WITH ALL FAULTS"
existing as of the Commencement Date.
In the event that any claim or controversy arises with respect to the Agreement, the
Friends and the City hereby knowingly and voluntarily waive their rights to assert any
argument or defense alleging inadequate or insufficient consideration.
Attached as Exhibit A hereto is the Museum's Operating Budget for the Term (the
Operating Budget or Budget), which the City and Friends have mutually reviewed and
approved. The City and Friends hereby agree and acknowledge that said Budget is
adequate for the provision of the Services. The Friends shall not exceed the Operating
Budget, which has been established at $ 1,201,000.
The Friends shall use best efforts to undertake, deliver and perform the Services, in
accordance with, and in the amount provided by, the Operating Budget. The Friends
agree to notify the City Manager within ten (10) days of any significant change or
variance in the bottom line numbers in the Operating Budget, and any material increase
in any identified cost(s) and/or expense(s) from that/those provided for in the Operating
Budget. Notwithstanding the preceding, or anlthing contained in this Agreement, the
Friends shall not exceed, commit, or contract to expend any sum in excess of the
aggregate amount allowed in the Operating Budget without first obtaining the prior
written consent of the City Manager, which consent, if granted at all, shall be in the
Manager's sole and reasonable judgment and discretion.
The Friends shall pay all items of expense related to the Services (and subject to the
amount indicated in the approved Operating Budget) from JP Morgan (General Operating
Account) #849186630. In addition to payment of any operating expenses related to the
provision ofthe Services, any and all revenues generated by the Friends (pursuant to the
duties set forth herein) shall also be deposited into this account. Deposits and/or
withdrawals must be prepared by the Assistant Director and confirmed by the Executive
Director. All checks exceeding five thousand dollars ($5,000) require two signatures.
Authorized signatories on the account are as follows:
o Executive Director;
o President of the Board;
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o Vice-President of the Board;
o Secretary of the Board.
The Friends agree to keep and maintain an office in the Museum devoted exclusively to
its performance/provision of the Services. The Friends shall keep and maintain all
records related to, and in support of, the Services at such office. Any financial records
shall be maintained in accordance with generally accepted accounting principles. The
City Manager or his authorized designees shall have the right, at any time during the
Term, to audit and inspect any and all Friends' records, upon reasonable written or verbal
notice to the Friends, and during the Museum's normal hours of operation.
The City and the Friends shall each appoint a contract administrator who shall monitor
the parties' compliance with the terms of this Agreement and, in the case of the Friends,
who shall serve as the point person for the City with regard to the Services. Unless
otherwise notified, the contract administrators for each party are as follows:
For the City:
City of Miami Beach
Tourism, Culture and Economic Development
Attn: Brandi Reddick
Cultural Affairs Program Manager
1700 Convention Center Drive
Miami Beach, Florida 33139
305-673-7577
For the Friends:
Friends of the Bass Museum, Inc.
Attn: Silvia Karman Cubina
Executive Director/Chief Curator
2100 Collins Avenue
Miami Beach, Florida 33139
305-673-7530
The Friends agree to defend, indemnifu and hold harmless the City, and its officials,
directors, officers, employees, agents, contractors, servants, successors and assigns
against any claims, causes of actions, costs, expenses, (including reasonable attorney's
fees) liabilities, or damages arising out of or in connection with any negligent act or
omission, or intentional misconduct on the part of the Friends or any of its officials,
directors, officers, employees, agents, contractors, servants, successors and assigns, in the
performance of its obligations under this Agreement and/or from the Services.
Additionally, and notwithstanding the indemnification/hold harmless obligations in the
preceding paragraph, or any other term or condition of this Agreement, the Friends shall
defend, indemnify and hold harmless the City, its officials, directors, officers, employees,
agents, contractors, servants, successors and assigns, against any claims, causes of
actions, costs, expenses (including reasonable attorney's fees), liabilities, or damages
Page 3 of9
37
arising out of or in connection with any claim, controversy or cause of action brought
against the City of Miami Beach (and including its officers, employees, agents, and
contractors) alleging any breach by the City of the Bass Agreement as a result of the
execution of this Letter of Agreement between the City and Friends.
The indemnification and hold harmless requirements in the two preceding paragraphs
shall survive the termination or expiration of this Agreement.
Notwithstanding this indemnification, and as a further condition, the Friends shall, at its
sole cost and expense, maintain in full force and effect throughout the Term of the
Agreement the insurance requirements set forth in the attached Exhibit B:
The Friends shall provide proof of the aforestated coverages to the City Manager, within
thirty (30) days of execution of this Letter of Agreement. It is understood and agreed that
any coverage provided by the Friends is primary to any insurance or self-insurance
program the City has for the Museum, and that there shall be no right of recovery or
subrogation against the City.
This Letter of Agreement may be terminated by the City Manager, for cause, in the event
of a breach by the Friends' of any term(s) and/or condition(s) set forth herein and the
Friends' failure to satisfactorily cure same within seven (7) days of written notice of such
breach by the City Manager or his designee; or by either party, for convenience (and
without cause), upon fifteen (15) days prior written notice to the other party.
All wriuen notices and communications required or permitted hereunder may be
delivered personally to the representatives of the Friends and the City listed below or may
be mailed by registered mail, postage prepaid (or airmailed if addressed to an address
outside of the city of dispatch).
Until changed by notice in writing, all such notices and communications shall be
addressed as follows:
TO FRIENDS:Friends of the Bass Museum, Inc.
Attn: George Lindemann
President
2100 Collins Avenue
Miami Beach, Florida 33139
(30s) 673-7s30
City of Miami Beach
Tourism, Culture and Economic Development
Attn: Vanessa Williams
Interim Director
1700 Convention Center Drive
Miami Beach, Florida 33139
(30s) 673-7s77
Page 4 of9
TO CITY:
38
Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an
address in the city of dispatch, on the day following the date mailed; and if mailed to an
address outside the city of dispatch on the seventh day following the date mailed.
This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Florida, both substantive and remedial, without regard to principles of conflict of
laws. The exclusive venue for any litigation arising out of this Agreement shall be
Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern
District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT,
CITY AND FRIENDS EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY
HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR
ARISING OUT OF, THIS AGREEMENT.
The Friends hereby represent, warrant and covenant to the City:
(D that it has the full legal right, power and authority to enter into this
Agreement and to grant the rights and perform the obligations herein, and
that no third party consent or approval is required to grant such rights or
perform such obligations hereunder;
(iD that this Agreement has been duly executed and delivered by the President
of the Friends, and attested to by the Secretary, and constitutes a valid and
binding obligation of the Friends, enforceable in accordance with its
terms; and
(iii) that the Friends will comply with all laws applicable to its management of
the Museum, as set forth in this Agreement; provided that the Friends will
not be required to undertake any compliance activity, or have any liability
under this Agreement, if such activity requires any capital expenditure
beyond the approved Operating Budget.
Neither party may assign this Agreement.
Neither this Agreement, nor any of its terms, may be changed, modified, waived, or
terminated except by an instrument in writing, signed by an authorized representative,
which shall be the City Manager (on behalf of the City), and the President of the Friends
(on behalf of the Friends).
The City and Friends acknowledge and agree that they are not joint venturers, partners, or
joint owners with respect of the Bass Museum and/or with respect to this Agreement
and/or the Services. Nothing contained in this Agreement shall be construed as creating a
partnership, joint venture or similar relationship between the City and the Friends. Any
employees at the Bass Museum who are City of Miami Beach employees shall remain
City employees throughout the Term (unless otherwise terminated by the City), and shall
remain under the supervision, direction and control of the City. Additionally, for
purposes of this Agreement (or otherwise) no officer, director, employee, agent, or
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39
contractor of the Friends shall be deemed to be an agent or employee of the City, and
shall not attain any rights or benefits under the Civil Service or Pension Ordinance of the
City, or any right generally afforded Classified or Unclassified employees or be deemed
entitled to Florida Worker's Compensation benefits as an employee of the City, or
accumulation of sick or annual leave.
Attest:CITY OF MIAMI BEACH, FLORIDA
Rafael E. Granado, City Clerk Jimmy L. Morales, City Manager
Date
Attest:FRIENDS OF THE BASS MUSEUM,
INC., a Florida not-for-profit corporation
Secretary George L. Lindemann, President
Date
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECURON
il-( J-*l- r?-- ( '\6
Cily Attomey,ffi,fi
-
Dote
Page 6 of9
40
EXHIBIT A
BUDGET
Salaries and Benefits $ 450.000
Exhibition Expenses $ 308.000
Education Expenses $ 179,000
Communications/Public Relations $ 100,000
Facilities and Securitv $ r 00.000
Repairs and Maintenance $ s0,000
Other Operating ExDenses $ 14,000
TOTAL s 1.201.000
Page 7 of9
41
EXHIBIT B
INSURANCE REQUIREMENTS
l. Friends shall maintain, at Friends' sole cost and expense, the following types of insurance
coverage at all times throughout the term of this Letter of Agreement:
A.Commercial General Liability Insurance, on an occurrence form, in the
amount of Two Million ($2,000,000) Dollars, per occurrence, for bodily
injury, death, property damage, and personal injury. This policy must
name the City of Miami Beach, Florida, as additional insured.
Workers Compensation Insurance shall be required under the Laws of
State of Florida and employer's liability insurance of not less than One
Million Dollars ($ 1,000,000) per occurrence.
Automobile Insurance shall be provided covering all owned, leased, and
hired vehicles and non-ownership liability for not less than the following
limits, subject to adjustment for inflation (only if Friends provides
transportation services):
B.
the
C.
Bodily Injury
Bodily Injury
Property Damage
$1,000,000 per person
S1,000,000 per accident
$ 500,000 per accident
D. All risks property insurance, containing a waiver of subrogation rights
which Friends' insurers may have against the CITY and against those for
whom the CITY is in law responsible including, without limitation, its
directors, officers, agents, and employees, and (except with respect to
Friends' chattels) incorporating a standard Florida mortgagee
endorsement (without contribution). Such insurance shall insure
property of every kind purchased and/or maintained at the Bass Museum
and the Premises, including the value of the Collection and all
improvements installed in the Premises, in an amount not less than the
full replacement cost thereof (new), with such cost to be adjusted no less
than annually. Such policy shall include as additional insureds the City
and its affiliates.
E. Fire Insurance shall be the responsibility of the City.
F. Any other form of insurance which the City requires, from time to time,
in form, in amounts, and for risks against which it would be prudent to
insure, in the City's sole discretion.
2. The policies of insurance referred to in the above paragraph I above shall not be subject
to cancellation or changing coverage, except upon at least thirty (30) days written notice to the
City, and then subject to the prior written approval of City Manager.
Page 8 of9
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3. Additional Insured Status. The City of Miami Beach must be covered as an additional
insured with respect to liability arising out of work or operations performed by or on behalf of
Friends.
4. Waiver of Subrogation. Friends hereby grant to City of Miami Beach a waiver of any
right to subrogation which any insurer of Friends may acquire against the City of Miami Beach
by virtue of the payment of any loss under such insurance. Friends agree to obtain any
endorsement that may be necessary to affect this waiver of subrogation, but this provision applies
regardless of whether or not the City of Miami Beach has received a waiver of subrogation
endorsement from the insurer.
5. Acceptabilitv of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City of Miami Beach Risk
Management Office.
6. Verification of Coverage. Friends shall provide the required insurance
certificates, endorsements or applicable policy language effecting coverage required by
this Section. All certificates of insurance and endorsements are to be received prior to
any work commencing. However, failure to obtain the required coverage prior to the
work beginning shall not waive the Contractor's obligation to provide them. The City of
Miami Beach reseryes the right to require complete, certified copies of all required
insurance policies, including endorsements required by these specifications, at any time.
7 . Special Risks or Circumstances. The City of Miami Beach, in its sole discretion,
through the City Manager, reserves the right to modifu these requirements, including
limits, based on the nature of the risk, prior experience, insurer, coverage, or other special
circumstances.
Certificate Holder
CITY OF MIAMI BEACH
c/o INSURANCE TRACKING SERVICES
17OO CONVENTION CENTER DRIVE
MIAMI BEACH, FL 33139
Compliance with the foregoing requirements shall not relieve the vendor of his liability and
obligation under this section or under any other section of this agreement.
8. Should Friends fail to obtain, maintain or renew the policies of insurance referred to
above, in the required amounts, the City may, at its sole discretion, obtain such insurance, and
any sums expended by the City in obtaining said insurance, shall be repaid by Friends to the City,
plus ten percent (10%) of the amount of premiums paid to compensate City for its administrative
costs. If Friends does not repay the City's expenditures within fifteen ( 15) days of demand, the
total sum owed shall accrue interest at the rate of twelve percent (12%) until paid and such failure
shall also be deemed an event ofdefault hereunder.
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