96-22220 RESORESOLUTION NUMBER 96-22220
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A STATE HOUSING INITIATIVES PARTNERSHIP
(SHIP) PROGRAM AGREEMENT BETWEEN THE CITY AND
MIAMI BEACH DEVELOPMENT CORPORATION (MBDC)
WHICH PROVIDES $304,507.63 OF FY 1995-96 FUNDS TO
BE USED TO REHABILITATE SCATTERED-SITE
CONDOMINIUM UNITS PRIOR TO THEIR PURCHASE BY
INCOME-ELIGIBLE HOME BUYERS QUALIFIED UNDER
THE RULES OF THE SHIP PROGRAM, AND THE CITY'S
ADOPTED SHIP HOUSING ASSISTANCE PLAN.
WHEREAS, the City has determined the necessity for providing affordable housi ~g
in Miami Beach through its Consolidated Plan, which was adopted by Resolution Nc..c 5-
21670, on July 26, 1995; and
WHEREAS, the City has been designated by the Florida Housing Fin.i~n ;e
Administration as an eligible municipality for the receipt of funds as provided under t le
State Housing Initiatives Partnership (SHIP) Program pursuant to Chapter 91-37 of t le
Florida Administrative Code (F.A.C.); and
WHEREAS, the City has entered into an Agreement with the Florida HoL.~si lg
Finance Agency under the terms of the SHIP Program in order to expand the supl:',ly of
decent, safe, sanitary and affordable housing within the City, for income-eligible per:so ~s
by making available funds to rehabilitate condominiums prior to purchase; and
WHEREAS, Miami Beach Development Corporation (MBDC) has operated a
"Scattered-Site" home buyer program since 1993, assisting low- and modera'te-incor ~e
individuals and families in the purchase of condominiums at various locations throughcut
Miami Beach by providing downpayment assistance and other forms of aid tc tile
prospective homebuyers; and
WHEREAS, the SHIP Program is administered by the Economic and Comm jn ty
Development Division of the Department of Development, Design and Histo'ic
Preservation; and
WHEREAS, the City issued a Notice of Funds Availability (NOFA) on October 17,
1996, pursuant to the City's approved SHIP Housing Assistance Plan; and
WHEREAS, MBDC submitted a proposal for providing rehabilitated condominiur~s
in response to the NOFA; and
WHEREAS, the City's Loan Review Committee, at its November 22, 1996 meetin
reviewed the proposal submitted by MBDC and recommended its approval by the May
and City Commission; and
WHEREAS, the Administration now requests that the attached State Housir g
Initiatives Partnership (SHIP) Program Agreement be approved by the Mayor and Ci':y
Commission and executed by the Mayor and City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CI'I'Y
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA THAT:
Section 1.
The Mayor and City Commission hereby approve the attached State Housir g
Initiatives Partnership (SHIP) Program Agreement to provide SHIP funcls o
Miami Beach Development Corporation (MBDC) for the rehabilitation of a
minimum of 10 condominium units for purchase by income-eli,qibe
applicants.
Section 2.
The Mayor and City Commission hereby authorize the Mayor and City Cle 'k
to execute the attached State Housing Initiatives Partnership (SI-II!')
Program Agreement.
PASSED AND ADOPTED THIS 4th
ATTEST:
ROBERT PARCHER, CITY CLERK
DAY
December ,1996.
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Attorney Dale
f:\ddhp\$all\CH\RESO\shipmb~ Ic, r !s
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
TO:
FROM:
SUBJECT:
Mayor Seymour Gelher and
Members of the City Commission
DATE: - December 4, 1996
Jose Garcia-Pedros~~p~~
;ity;~tn~er
S LUTI THE MAYOR AND CITY COMMISSI()N
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT
BETWEEN THE CITY AND MIAMI BEACH DEVELOPMENT
CORPORATION (MBDC)WHICH PROVIDES $304,507.63 OF FY 1995-96
FUNDS TO BE USED TO REHABILITATE SCATTERED-SITE
CONDOMINIUM UNITS PRIOR TO THEIR PURCHASE BY INCOME-
ELIGIBLE HOME BUYERS QUALIFIED UNDER THE RULES OF THE SI-IIP
PROGRAM, AND THE CITY'S ADOPTED SHIP HOUSING ASSISTAN(.;E
PLAN.
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Commission approve the
attached Resolution authorizing the Mayor and City Clerk to execute a State Housing
Initiatives Partnership (SHIP) Program agreement with Miami Beach DevelopmE, nt
Corporation (MBDC) providing $304,507.63 in FY 1995-96 to rehabilitate a minimum of ten
(10) scattered-site condominium units prior to their purchase by income-eligible ho~e
buyers under the rules of the SHIP Program, and the City's adopted SHIP Housing
Assistance Plan.
BACKGROUND:
The SHIP Program -- The State Housing Initiatives Partnership (SHIP) Prograin,
administered through the Florida Housing Finance Agency (FHFA), was established by the
1992 William E. Sadowski Affordable Housing Act, and was specifically created to
stimulate the production of affordable housing statewide.
SHIP Program funds derive from set-aside allocations from documentary stamp levies on
real estate transactions. Dade County's involvement in the SHIP Program was delayed
until FY 1995 due 'to the existence of Dade County's Surtax Program. Metropolitan Dade
County originally elected not to participate in the SHIP Program. As a result, local cities
DATE 12-~"!-c
COMMISSION MEMORANDUH
December 4, 1
PAGE
such as Miami Beach could not access these State funds. In 1995, due to a change in th ,:;
Program rules, Dade County and cities within Dade, including Miami Beach received :a
share of the SHIP funds. For FY 1995 -1996, Miami Beach received $336,366 in S,-IIF~
funds, of this amount, ten (10) percent, or $33,636 was reserved to pay the administrativ :;
costs associated with the program, leaving $302,729 available for eligible activities. In th;
time since the funds were received by the City, interest earnings of $1,778.63 h;av!;
accrued, making a total of $304,507.63 available for eligible activities.
The SHIP funds may be used flexibly for a variety of affordable housing activitie,,,
however, according to the SHIP program guidelines, the City must ensure that at least 750, ~
of the units involve either rehabilitation, new construction, or emergency repairs anc, ~t
least 65% of the total units must be geared towards homeownership, with up to 10% c f
program funds eligible for use for program adrfiinistration.
The SHIP program was designed to provide a match for federal HOME Program fu"~d :s
The HOME Program requires a 25% local match for the funds used for rehabilitation ~i~n :1
new construction. The City intends to use these SHIP funds to help meet its HOME 'marc 1
obligation for FY 1996/97.
ANALYSIS:
The City issued a Notice of Funds Availability (N.O.F.A.) on October 17, 1996 seekinc.: a 1
experienced housing provider able to utilize these funds for rehabilitation of scattered-sit
condominium units in combination with HOME Program funds. Responses to the N.O.F.,z ..
were due on or before November 22, 1996.
The only proposal received by the closing date was submitted by Miami Beac~
Development Corporation (MBDC). The City's Loan Review Committee (LRC) revie~ve :J
the proposal submitted by MBDC and recommended to the Mayor and City Commissio ~
that funds in the amount of $304,507.63 be awarded to MBDC.
MBDC has proposed to utilize these funds to supplement their successful exist:in;~
scattered-site homeownership program. This program currently uses funds from
federal HOME Program, some of which come through the City, and some fr'or'~
Metropolitan Dade County, combined with funds from the County's Surtax Progranl t
provide down payment assistance. The SHIP Program funds will be used to prorid
rehabilitation assistance. This will permit the inclusion of condominium units in th:.~
program which are in need of substantial repairs. Consequently, the existing housin
stock will be improved and the program applicability is broadened.
COMMISSION MEMORANDUM
December 4, 1996
PAGE 3
The Administration proposes to enter into a SHIP Program funding agreement with MBDC.
Under this agreement MBDC will rehabilitate a minimum of ten (10) dwelling units to be
made available to income-eligible home buyers under the SHIP rule.
CONCLUSION:
The Administration recommends that the Mayor and City Commission approve the
attached Resolution authorizing the Mayor and City Clerk to execute a State Housing
Initiatives Partnership (SHIP) Program agreement with Miami Beach Development
Corporation (MBDC) providing $304,507.63 in FY 1995-96 to rehabilitate a minimum of ten
(10) scattered-site condominium units prior to their purchase by income-eligible home
buyers under the rules of the SHIP Program and the City's adopted SHIP Housing
Assistance Plan.
JGpIH~SM~/M~C/~AH
f:~chL~hipVnbdcship.m,sm
AGREEMENT
THIS AGREEMENT, entered into this 4th day of Dec. , 1996 by and between the C::l'l'Y
OF MIAMI BEACH, a Florida municipal corporation, having its principal office at 17( 0
Convention Center Drive, Miami Beach, Florida, (hereina~er referred to as the City), ar d
the MIAMI BEACH DEVELOPMENT CORPORATION, a not-for-profit Florida corporalio l,
with its principal office located at 1205 Drexel Avenue, Miami Beach, Florida (hereinaft,::;r
referred to as MBDC).
WITNESSETH:
WHEREAS, the City has determined the necessity for providing affordable housir g
in Miami Beach through its Consolidated Plan, which was adopted by Resolution No. 9 ~-
21670, on July 26, 1995; and
WHEREAS, the City has been designated by the Florida Housing Finance
Administration as an eligible municipality for the receipt of funds as provided under' t~ e
State Housing Initiatives Partnership (SHIP) Program pursuant to Chapter 91-37 ol t~ e
Florida Administrative Code (F.A.C.); and
WHEREAS, the City has entered into an Agreement with the Florida Housir g
Finance Agency under the terms of the SHIP Program in order to expand the supply ~f
decent, safe, sanitary and affordable housing within the City, for income-eligible per.,:;or ,s
by making available funds to rehabilitate condominiums prior to purchase; and
WHEREAS, MBDC has operated a "Scattered Site" homebuyer program sin< e
1993, assisting low- and moderate-income individuals and families in the purchase ~f
condominiums at various locations throughout Miami Beach by providing downpayrqe it
assistance and other forms of aid to the prospective homebuyers.
NOW, THEREFORE, in consideration of the mutual promises contained herein. tr e
parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Terms shall be as defined in the State Housing Incentives Partnership (SHIP) Program, ~, 1-
37 F.A.C., and any amendments thereto. Any term defined in the SHIP Program rule n ~t
otherwise defined in this Agreement, shall have the meaning set forth in said rule.
ARTICLE II
BUDGET AND SCOPE OF SERVICES
MBDC will utilize the funds set forth in Exhibit "B", attached hereto and made a part
hereof by reference, for the rehabilitation of homeownership housing in accordance ,w ilh
the Scope of Services in Exhibit "B", attached hereto and made a part hereof by refere~'~c~.:.,.
ARTICLE III
PROGRAM INCOME
MBDC agrees that any program income generated from the use of the Funds under
this Agreement, or funds repaid for any reason, after making all debt repayments to the
City, or other lender, if any, is to be used to further other affordable housing activities.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE SHIP ANi::)
HOME PROGRAMS
The parties hereto acknowledge that the funds provided hereunder are to be use d
in conjunction with funds received through the HOME Program. Therefore some or a~ll ~f
the projects assisted will be required to comply with the rules of both programs. The Stale
of Florida has acted to encourage the use of SHIP Program funds in coordination ',Nil h
HOME funds by suggesting that in projects which use funding from both sources, gene,'al y
the HOME rules will take precedence. Alternatively, the rule which is more restrictive w II
apply.
MBDC expressly agrees to the following terms and conditions in conformity '.Nil n
Chapter 91-37, F.A.C.:
(a) Affordability Period. The period of time SHIP assisted units must remain
affordable is in accordance with Chapter 91-37 F.A.C. as applicable, or the term of a F.IU ::)
insured mortgage, whichever period occurs later. The funds shall be repaid to the City
accordance with the provisions of the HOME Program regulations 24 CFR Part 92.254, i a
the event the housing is transferred or sold for any purpose other than settling the estal
of one of the owners.
(b) Repayment of Funds; Transfer of Title. The funds (which definition shall includ ~
the allocation of any additional funds that may be provided by the City in the future as ~
result of an amendment or modification of this Agreement) shall be repaid in their entirety
if the SHIP units are transferred or sold to another owner except as specified hereif'~.
Concurrent with the closing on the property rehabilitated hereunder, the owner s. haill
execute a Restrictive Covenant incorporating the terms of this section.
2
(c) Projects must provide safe, sanitary, and decent residential housing for Ilow-
income and very low-income, and moderate-income persons (i.e., a person whose incorr e
is within specific income levels set forth herein, as documented by U.S. HUD).
(d) Income Targeting. MBDC shall ensure and maintain written documentation th :it
conclusively demonstrates that each project assisted in whole or in part with SHIP func:s
provides benefit to very-low (families whose annual incomes that do not exceed 50 perce '~t
of the median family income for the area) and low-income (families whose annual incomE: s
do not exceed 80 percent of the median income for the area) and moderate incc, m,:!;,
(families whose annual incomes which do not exceed 120% of the area median incc, m,::;,
as determined and published from time-to-time by U.S. HUD.
(e) MBDC affirms that it maintains a financial management system that confc rrr s
to the financial accountability standards of Attachment F of OMB Circular A-110.
(f) Records: MBDC agrees to maintain all records sufficient to meet tt'e
requirements of Chapter 91-37 F.A.C., including, but not limited to: program records, proje ;t
records, and program administration records. All records required herein shall be reta ned
and made accessible for a period of at least three (3) years after closing, as provided n
Chapter 91-37, and Florida Statutes Chapter 119.
(g) Property Standards. For the duration of this Agreement and any amendm,:~n s
hereto, housing that is assisted with SHIP funds, at a minimum, must meet the Housir g
Quality Standards of CFR Section 882.109. In addition, housing that is newly constru~:;te d
or substantially rehabilitated with SHIP funds must meet all applicable local code :~,
rehabilitation standards, ordinances, and zoning ordinances.
(h) Maximum and Minimum Amount of SHIP Funds Per Unit. The minimum amou !t
of SHIP funds that can be invested is $1,000 per dwelling unit, and the maximum amou~lt
of SHIP subsidy is limited to $30,259 per unit.
(i) Environmental Clearance. For each activity or project assisted hereunder,
immediately after a site is identified, MBDC shall obtain the City's written environme nt ~1
clearance statement and hereby agrees to comply with any and all requirements as ~'n~:y
be set forth in the Site Environmental Clearance Statement.
(j) Affirmative Marketing. The parties acknowledge that it is unlawful to discrimina':'e
on the basis of race, creed, color, religion, age, sex, sexual preference, familial statu :;,
national origin or handicap. MBDC agrees to adopt affirmative marketing procedures ard
requirements, in writing, for SHIP-assisted housing as set forth in Chapter 91-37 F.AC.
(k) Affordable housing: homeownership. Housing that is for purchase qualifie,.:~ ~:s
affordable housing only if the housing has an initial purchase price or, appraised value
3
rehabilitation or repair, that does not exceed 90% of the median purchase price for exis.tir,g
single-family housing for the Miami PMSA, currently $113,418, and subject to change l:ro, n
time-to-time, as determined by the U.S. Department of the Treasury; is the princip:i~l
residence of an owner whose family qualifies as very low-, low- or moderate-income al: ti-,e
time of purchase; and is subject to resale restrictions or recapture provisions established
by the City for the required period of affordability.
ARTICLE V
ELIGIBLE COSTS
MBDC agrees that eligible costs for the projects under this Agreement are lirrfitE d
to those eligible costs as outlined in Chapter 91-37.007 of the SHIP Program rule. It s
expressly agreed by the parties that no funds obtained hereunder will be used to acq Jir,;,
rehabilitate or otherwise assist mobile homes.
ARTICLE VI
METHOD OF PAYMENT
(a) MBDC shall be paid monthly for eligible costs expended, as permitted under tf e
Scope of Services in Exhibit B, based on actual costs expended, with suppo,'tir g
documentation provided for expenses that are considered reasonable and necessary ar d
approved by MBDC's authorized representative.
(b) Any payment due under the terms of this Agreement will be issued upon receipt ar d
approval by the City of all reports and documents which MBDC is required to submit to tte
City pursuant to the terms of this Agreement and any amendments thereto.
(c) MBDC agrees to provide evidence of appropriate licenses and insurance l~s
required by this Agreement for each location assisted hereunder, such evidence must t.e
kept on file with the City.
ARTICLE VII
SUBCONTRACTS
(a) The parties agree that the work or services covered by this Agreement, includil ~g
but not limited to rehabilitation work or services, may be subcontracted without the Iari ~r
written approval of the City. MBDC agrees to obtain at least three bids for all rehabilitatil:ln
work estimated to be in excess of $500. Copies of all bids received shall be kept in the!; j~:~b
file. A copy of the executed contract must be forwarded to the City within ten (10) da..fs
after execution.
4
(b) MBDC agrees to include in all contracts and subcontracts that the contractcr
subcontractor(s) shall hold the City harmless against all claims of any nature arising o~ ~t
of the contractor's performance of work under the contract and this Agreement to th
extent allowed by law.
ARTICLE VIII
CONDITIONS OF SERVICE
As a condition of these services, MBDC agrees to comply with the regulations o1:' the
SHIP Program and any amendments thereto as stated in Chapter 91-37 F.A.C.
(a) Equal Opportunity: MBDC agrees to abide by and be governed by the Equ;il
Opportunity and Fair Housing laws. No person in the United States shall on the grounc s
of race, color, national origin, religion, disability or sex be excluded from participation il ~,
or be denied the benefits of or be subjected to discrimination under any program or acfivi'y
funded in whole or in part with SHIP funds.
(b) Housing assisted with SHIP funds shall be subject to testing and abatement activ,tie s
for lead-based paint.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be deemed effective commencing with the execution o] tl' e
fund reservation agreement reserving the Funds. The City and MBDC mutually agree th~ :it
the Funds are reserved for MBDC for the designated time period as follows:
(a) Fiscal Year 1995-1996 funds in the amount of $302,729 plus $1,778.63 of accrued
interest, totaling: $304,507.63 are reserved through February 28, 1997. Before this dat, :;,
MBDC shall have arranged for the rehabilitation of a minimum of four (4) dwell n.cs
pursuant to this agreement. If MBDC is substantially behind the schedule attached he~et, ~,
the City shall have the right to declare this agreement null and void with regard to ti'e
remaining uncommitted funds, and the City shall take any and all actions it de,!;rrs
necessary to carry out the commitments of the SHIP Housing Assistance Plan, includir g
selecting another service provider for all or part of the unspent funds.
ARTICLE X
TERMINATION
The City and MBDC agree that this Agreement may be terminated by the parties n
whole or in part, for cause (as more specifically defined in herein) or for convenienc,!;, n
accordance with the provisions of Chapter 91-37, F.A.C. Written notification shall I:e
5
submitted at least thirty (30) days prior to the effective date of such termination, and sh~ II
include the reason for the termination (if for cause), the effective date, and in the case, !f
a partial termination, the actual portion to be terminated. Notwithstanding the language s,:;t
forth herein, the City's reasons for terminating the Agreement for convenience, in who e
or in part, shall not be arbitrary or capricious.
ARTICLE XI
AMENDMENTS
Any amendments, alterations, variations, modifications or waivers of any provisiior s
to this Agreement, including an increased allocation of Funds, will only be valid when l::he.y
have been reduced to writing and duly signed the both parties hereto. Any changes w~hic h
do not substantially change the Scope of Services or increase the total amount pay;;~bie
under this Agreement, shall be valid only when reduced to writing and signed by the City
Manager (or his designee) and MBDC.
ARTICLE XII
CONFLICT OF INTEREST
(a) MBDC shall comply with the standards contained within Chapter 91-37, F.A.C.
(b) MBDC shall disclose any possible conflicts of interest or apparent improprieties of ar y
party that is covered by the above standards. MBDC shall make such disclosure in wr,itir g
to the City immediately upon MBDC's discovery of such possible conflict. The City will lhE n
render an opinion which shall be binding on all parties.
(c) Related Parties. MBDC shall report to the City the name, purpose, and any olh~;r
relevant information in connection with any related-party transaction. This includes, bjt s
not limited to, dealing with a for-profit subsidiary or affiliate organization, an organizaticn
with overlapping board of directors, or an organization for which MBDC is responsible filr
appointing members. MBDC shall report this information to the City upon forming tt-e
relationship or, if already formed, shall report it immediately. Any supplemental informa,tic n
shall be reported to the City required Progress Report.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
MBDC, shall indemnify and hold harmless the City from any and all claims, liabili~iies,
losses, and causes of action which may arise out of any act, omission, negligenc,!9 ~::lr
misconduct on the part of MBDC or its efforts, employees, agents and/or invitees. MF!ID .~
shall pay all claims and losses of any nature whatsoever in connection therewith and sh~i:,ll
6
defend all suits in the name of the City, when applicable, and shall pay all costs ar d
judgements which may issue thereon.
MBDC or the General Contractor(s) selected to conduct the rehabilitation vvo'k
hereunder shall provide a General Liability Insurance Policy with coverage for Bodily Ir'~ju y
and Property Damage, in the amount of $1,000,000 per occurrence (The policy r,~u ;t
include coverage for contractual liability to cover the above indemnification); and the Ci y
of Miami Beach shall be named as an additional insured followed by the statement: "TI- e
coverage is primary to all other coverage carried by the City covering this specif c
agreement only." MBDC or the General Contractor(s) shall provide proof of Worker:s'
Compensation Coverage meeting the statutory limits of the State of Florida. MBDC .,~;h~ .:11
submit to the City an ORIGINAL Certificate of Insurance. All insurance coverage sha l I: e
approved by the City's Risk Manager prior to the release of any Funds under th s
Agreement.
Further, in the event evidence of such insurance is not forwarded to the City's I::~i., k
Manager within thirty (30) days after the execution of this Agreement, this Agreement .,!;h~ i, ll
become null and void, and the City shall have no obligation under the terms thereof unle., s
a written extension of this thirty (30) day requirement is secured from the Risk Mana.;le '.
ARTICLE XIV
REPORTS
(a) Progress Reports. MBDC agrees to submit monthly progress reports to the Cit ./,
describing the status of each proposed project and achievement of the project objective s
as provided in the Scope of Services, (Exhibit B), attached hereto. The progress relsor s
shall be submitted no later than 15 days after the end of each month, and shall cont~ nLe
until such time as all Funds are expended on specific projects.
(b) It will be the responsibility of MBDC to notify the City in writing, of any action, la~ z,
or event, that will impede or hinder the success of the projects and activities as provedE!d
in this Agreement. After such notification the City will take whatever actions it de,:~n s
appropriate to ensure the success of the program.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City Administraticn
and/or the Florida Housing Finance Agency (FHFA) may deem necessary, there sha I I: e
made available to the City Administration and/or representatives of the FHFA to a~jd t,
examine and make audits of all contracts, invoices, materials, payrolls, records
personnel, conditions of employment and other data relating to all matters covered by th s
Agreement. If during the course of its monitoring, the City determines that any paym,~n ::s
made to MBDC do not constitute an allowable expenditure, the City will have the right "o
deduct/reduce those amounts from their related invoices. MBDC must maintain recorc s
necessary to document compliance with the provisions of this Agreement, for at least thrEe
(3) years after the close of the fiscal year in which the funds reserved hereunder are f:ul y
expended.
ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS
MBDC agrees to comply with all applicable Federal and State regulations as ~:h~!.y
may apply to program administration. Additionally, MBDC will comply with all State ar d
local laws and ordinances hereto applicable, specifically including the SHIP Program F~ul!.~.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) It is expressly understood and agreed by the parties hereto that moni~:,s
contemplated by this Agreement, to be used for compensation originated from gr;~n:s
under the SHIP Program and are contingent upon approval of activities by the Stale ~f
Florida.
(b) Title and paragraph headings are for convenient reference and are not a part o1' tl" is
Agreement.
(c) In the event of conflict between the terms of this Agreement and any terms Dr
conditions contained in any attached document, the terms in this Agreement shall ha~. e
precedence. In the event of conflict between the terms of this Agreement and any tE=:rn ~s
or conditions contained in SHIP Program Rule, the terms of the SHIP Program Rule sh;idl
have precedence.
(d) No waiver or breach of any provision of this Agreement shall constitute a waiw:.~r ~f
any subsequent breach of the same or any other provision hereof, and no waiver shall t e
effective unless made in writing.
ARTICLE XVIII
ACCESS TO RECORDS
MBDC, agrees to allow access during normal business hours to all financial ar d
SHIP Program records to authorized State or City representatives and agrees to provice
8
such assistance as may be necessary to facilitate the conduct of a financial or operati,~n tl
audit by any of these representatives when deemed necessary to insure compliance wi' h
applicable accounting and financial standards. MBDC shall allow access during no~'m ~1
business hours to all other records, forms, files, and documents which have Iseen
generated in performance of this Agreement, to those personnel as may be designate::t ~ y
the City.
ARTICLE XIX
SEVERABILITY OF PROVISIONS
If any provision of this Agreement is held invalid, the remainder of this Agreenle'~t
shall not be affected thereby if such remainder would then continue to conform to the te.rrr s
and requirements of applicable law.
ARTICLE XX
PROJECT PUBLICITY
MBDC agrees that any news release or other type of publicity pertaining to tk e
project as stated herein must recognize the City as the recipient funded by the Flcrica
Housing Finance Agency, under the State Housing Initiatives Partnership (SHIP) Progra~,n
and administered by the Economic and Community Development Division of
Development, Design and Historic Preservation Services Department of the City of M arli
Beach as the entity which provided funds for the Project.
ARTICLE XXI
SUCCESSORS AND ASSIGNS
MBDC agrees that this Agreement shall be binding upon the parties herein, lhe:ir
heirs, executors, legal representatives, successors, and assigns.
ARTICLE XXII
INDEPENDENT CONTRACTOR
MBDC and its employees and agents shall be deemed to be independer~t
contractors and not agents or employees of the City, and shall not attain any rights ~ ~r
benefits under the Civil Service or Pension Ordinances of the City, or any rights gene 'al y
afforded classified or unclassified employees; further they shall not be deemed entitled
the Florida Workers' Compensation benefits as an employee of the City.
9
ARTICLE XXIII
ASSIGNMENT
This Agreement may not be assigned or transferred by MBDC without the pri,~r
written consent of the City thereto. It shall be deemed a default of this Agreement in tl'e
event that MBDC does not strictly comply with the procedures established hereirl~ f,~r
obtaining City consent to assignment or transfer as defined by this Article. In the eve '~t
such consent is not obtained, in the manner prescribed herein, the City shall be entitled "o
declare a default, cancel this Agreement, and resort to its rights and remedies again !~t
MBDC. In the event MBDC transfers an interest of more than five (5%) percent owner.sh p
in its stock by pledge, sale, or otherwise; or if MBDC makes an assignment for the be '~e':=it
of its creditors, or uses this Agreement as security or collateral for any loan; or if MBDC s
involved in any bulk transfer of its business or assets, then in that event each of tl-e
foregoing actions shall also be deemed an assignment of this Agreement and shall reclui: e
the City's prior written consent. A merger, dissolution, consolidation, conversio'~,
liquidation or appointment of a receiver for MBDC, shall be deemed an assignment of th s
Agreement and will require the prior written consent of the City thereto.
ARTICLE XXIV
EVENTS OF DEFAULT
The City may place MBDC in default of this Agreement and may suspend ~r
terminate this Agreement in whole or in part for cause, as prescribed in Article X herei i.
"Cause" shall include the following:
(a) Failure to comply and/or perform in accordance with any of the terms and condit,iors
of this Agreement, or any State or local regulation;
(b) Submitting any required report to the City which is late, incorrect, or incompled:e n
any material respect after notice and reasonable opportunity to cure, as set forth n
subparagraph (h) hereof, has been given by the City to MBDC;
(c) Implementation of this Agreement, for any reason is rendered impossible .~r
infeasible;
(d) Failure to respond in writing within thirty (30) days of notice of same from City to ary
concerns raised by the City, including providing substantiating documentation when
requested by the City;
(e) Any evidence of fraud, waste or mismanagement as determined by the City s
monitoring of project(s) under this Agreement, or any violation of applicable SHIP Prograi=n
rules and regulations;
10
(f) MBDC's insolvency or bankruptcy;
(g) An assignment or transfer of this Agreement or any interest therein which does n. :it
comply with the procedures set forth herein;
(h) If a default is not fully and satisfactorily cured within thirty (30) days of MB[)C :~'
receipt of a notice of default by the City, at the expiration of said thirty (30) day period (~ Ir
such additional period of time as may be permitted by the City, in its sole discretion, ~s
required to cure such default in the event MBDC is diligently pursuing curative efforts) th s
Agreement may, at the City's sole option and discretion, be deemed automatical y
canceled and terminated, and the City fully discharged from any and all liabilities, ddiE s
and terms arising out of, or accruing by virtue of this Agreement.
ARTICLE XXV
ADDITIONAL REMEDIES
In the event of a default, the City shall additionally be entitled to bring any and ~ II
legal and/or equitable actions which it deems to be in its best interest, in Dade CoL nt .f,
Florida, in order to enforce the City's rights and remedies against the defaulting party. TI- e
City shall be entitled to recover all costs of such actions, including reasonable attorney s
fees. To the extent allowed by law, the defaulting party waives its right to jury trial and i's
right to bring permissive counterclaims against the City in any such action.
ARTICLE XXVI
MAINTENANCE AND RETENTION OF RECORDS
MBDC agrees that it will maintain all records required pursuant to Chapter 91-3' ',
F.A.C., in an orderly fashion in a readily accessible, permanent and secure location, ar d
that it will prepare and submit all reports necessary to assist the City in meeting recos d
keeping and reporting requirements thereunder.
(a) Records shall be maintained for a period of three (3) years after the closeout
funds under this Agreement except as provided herein (b), (c) and (d).
(b) If any litigation, claim, negotiation, audit or other action has been started before tl-e
regular expiration date, the records must be retained until completion of the action ard
resolution of all issues which arise from it, or until the end of the regular period spec fie~d
in paragraph (a), whichever is later;
(c) Records regarding project requirements that apply for the duration of the period ,~f
affordability, as well as the written agreement and inspection and monitoring reports mu ;t
be retained for three years AFTER the required period of affordability;
11
ARTICLE XXVII
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can p~ac,e
a limit on the City's liability for any cause of action for money damages due to an allege d
breach by the City of this Agreement, so that its liability for any such breach never exceec s
the sum of the Funds reserved hereunder, less any amount of the Funds actually paid 1'o
MBDC by the City at the time of the alleged breach. MBDC hereby expresses i's
willingness to enter into this Agreement with MBDC's recovery from the City for ary
damage action for breach of contract to be limited to a maximum amount of the Funds, le,,.s
any amount, in whole or in part, of the Funds actually paid to MBDC by the City at the '::irr e
of the alleged breach. Accordingly, and notwithstanding any other term or condition of th s
Agreement, MBDC hereby agrees that the City shall not be liable to MBDC for damages
in an amount in excess of the Funds, less any amount, in whole or in part, of the Ft, nc s
actually paid to MBDC by the City at the time of the alleged breach, for any action or c:ai~ n
for breach of contract arising out of the performance or non-performance of any obligator s
imposed upon the City by this Agreement. Nothing contained in this paragraph ~lr
elsewhere in this Agreement is in any way intended to be a waiver of the limitation place d
upon the City's liability as set forth in Florida Statutes, Section 768.28.
ARTICLE XXVIII
JURISDICTION
This Agreement shall be enforceable in Dade County Florida, and if legal action s
necessary by either party with respect to the enforcement of any or all of the terms ar d
conditions herein, exclusive venue for the enforcement of same shall lie in Dade CoL nt .f,
Florida.
ARTICLE XXIX
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that mO'liES
contemplated by this Agreement to be used for the purposes described herein, originate d
from grants of State Housing Incentives Partnership (SHIP) Program funds, and must I: e
implemented with all of the applicable rules and regulation of the Florida Housing Fina nce
Agency. It is expressly understood and agreed that in the event of curtailment or norF
production of said SHIP Program funds, that the financial sources necessary to continL e
to pay MBDC compensation hereunder will not be available and that this Agreemenl w/I
thereby terminate effective as of the time it is determined that said funds are no Iong,~,;r
available. In the event of such determination, MBDC agrees that it will not look to, nor seE!k
to hold liable, the City or any individual member of the City Commission thereof, personal y
for the performance of this Agreement and all parties hereto shall be released from fu~th~i.:;r
12
liability each to the other under the terms of this Agreement.
ARTICLE XXX
NOTICES
All notices shall be sent to the parties at the following addresses, with copies tc tl-e
Office of the City Attorney:
City:
Miguell Del Campillo, Housing Coordinator
Economic and Community Development Div.
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
with copies to:
Murray H. Dubbin, City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
MBDC:
Denis Russ, President
Miami Beach Development Corporation
1205 Drexel Avenue
Miami Beach, FL 33139
The above parties may change such addresses at any time upon giving the oth .~r
party written notification. All notices under this Agreement must be in writing and shall I~e
deemed to be served when delivered to the address of the addressee. All notices serw:~d
by mail shall be registered mail, return-receipt requested.
13
IN WITNESS WHEREOF, The parties hereto have caused this Agreement to I: e
executed by their duly authorized official(s), on the day and year first above written.
ATTEST:
Sec tary
MIAMI BEACH DEVELOPMENT CORPORATION
~x~"~'~De~ss, Preside it
ATTEST
City Clerk
CITY OF IAMI BEACI!
· I ;~l~lj:~
· Seymour"Gelber, May, Ir
F:\DDHP\$ALL\CH\SHIP\SHIPMBDC ,A( R
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
14
EXHIBIT A
OTHER REQUIREMENTS
As the City of Miami Beach is providing this funding through state funds, combined with fi :~deral
funds, all parties agree to comply with the following statutes, regulations and executivE!! o 'ders,
as amended, as they apply. These requirements are incorporated herein by reference.
Freedom of Information and Privacy Acts
- Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974
(5 U.S.C. 552a)
Equal Opportunity
- Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1
-Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601)
- Executive Order 11063, as amended by Executive Order 12259
- Executive Orders 11246, 11265, 12138 and 12432
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170)
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)
- The Age Discrimination Act of 1975 (42 U.S.C. 6101)
- The Fair Housing Amendments Act of 1988
Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq)
-The Council on Environmental Quality Regulations (40 CFR Parts 1500-150:3)
- Environmental Review Procedures (24 CFR Part 58)
- National Historic Preservation Act of 1966
- National Flood Insurance Act of 1968 as amended by the Flood Disaster Prote ;tion
Act of 1973
Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq)
- HUD Lead Based Paint Regulations (24 CFR Part 35)
Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M)
- U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos
Regulations (29 CFR 191.1101)
Handicapped Accessibility
- Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41)
7. Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended
- The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)
- Federal Labor Standards Provisions (29 CFR Part 5.5)
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDEF',A:_,
STATE AND LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDliED.
EXHIBIT B
Scope of Services
Services to be Provided:
MBDC will provide rehabilitation services to home buyers as part of its home b~.jy,,:!;r
program to a minimum of 10 dwelling units, in accordance with the attached Sources ard
Uses of Funds schedule.
Expenditure Deadline:
MBDC acknowledges and agrees that all funds provided under this agreement shaill Re
expended, documented and invoiced to the City prior to June 30, 1998, in accordance wi :h
the attached Schedule of Expenditure.
Recapture of Funds:
Condominiums rehabilitated with SHIP funds which are sold to Eligible home buyers sh;
be subject to subsidy recapture provisions which are consistent with those already ado!:~t~: .,d
by the City under the HOME Program. It is the City's intent to allow the homeown.!;r :o
realize the equity from their home.
The period of time SHIP assisted units must remain affordable is in accordance wi:h
Chapter 91-37 F.A.C. as applicable, or the term of a HUD insured mortgage, which,=~v .~r
period occurs later. When SHIP funds provided hereunder are combined with H(:)rv'E
funds, the provisions of the HOME Program with regard to the period of affordability ~. ill
apply.
Payment:
Payments by the City to MBDC shall include those eligible costs as follows:
Construction Costs, which may include:
Actual cost of rehabilitating housing, including: labor and materials necessary 'io
meet the requirements of the South Florida Building Code, the City of Miami Bea.. ;h
Building Codes, and U.S. HUD Section 8 Housing Quality Standards.
Current or incipient code violations - improvements to correct violations ~r
conditions which may develop into hazardous conditions or code violations.
Good and readily maintainable condition - improvements necessary to pu':: tl'~e
property and facilities in a condition which requires a minimal amour'~t of
maintenance, and when appropriate, improvements to conserve energy.
General property improvements - improvements which are in addition to tho:;e
required by applicable codes and ordinances, but which are incidental to the re3a rs
being done to remedy code violations. These improvements may be consid,er,s~.d
appropriate, provided they are economically practical and in the public interest.
Rehabilitation soft costs, which may include:
Architectural - reasonable fees paid for professional services in preparing v~o k
write-ups, cost estimates, working drawings and specifications; for supervision, fi ~r
cost certification; and for other designated tasks.
Permit fees - those fees paid to the City's Building Services Division for per'Tfi s
necessary to undertake the work outlined in the application.
Construction supervision costs, in an amount equal to 15% of the value of tl-e
rehabilitation, up to a maximum of 1% of the appraised value of the unit.
Required Documentation:
For each home buyer assisted with the funds provided hereunder, the followirg
documentation is required to be kept:
A copy of the letter of commitment/award to the SHIP recipient.
Completed application form, signed and dated, containing income and asset informal io~,
and household characteristics, including age of head of household, family size, race, ar d
special needs, if any. The information must be kept in a form acceptable to the City. TI' e
combined household annual anticipated gross income of an applicant must be verified ar d
certified using procedures such as those established by U.S. HUD or the Farmers Horr e
Administration. Whichever method is used, annual gross anticipated income must
used and the SHIP income limits cannot be exceeded.
Income verification forms for each adult in the household, dated within 120 days of the
award date, award letter to recipients should include the requirement to notify the City s
SHIP Coordinator immediately of any change in income, assets, or household !si2'9
occurring between the award letter and closing.
A signed affidavit of no income change must be completed, if the closing is more than 12 0
days after the completion of the original income verification.
A copy of an appraisal, certified to the lender, dated within 90 days of the closing dat,!;,
showing a value at least equal to the selling price.
A copy of the purchase contract.
Property inspection report.
Letter of commitment or written agreement.
Loan closing statement.
Lien documentation including the required recapture provisions, executed by tke
purchaser, and recorded in the public records.
A copy of the initial inspection report and work write-up, describing the specific activiitiE. s
to be included in the rehabilitation, and the estimated cost.
Copies of bids or proposals from contractors. [At least three, if possible for all work n
excess of $500 in value.]
A copy of the executed construction contract for the rehabilitation work. [copies of tl-e
contractor's license, and proof of insurance should be included.]
Copies of interim and final inspection reports.
Copies of all construction payment requests.
Copies of all partial and final releases of lien or lien waivers
Proof of final payment.
Copy of the certificate of completion or certificate of occupancy, as appropriate.
Summary reports of all meetings with the home buyer, contractor[s] and MBDC staff.
All relevant correspondence.
~'OuI~'~E .................~
'CMB SHIP.. ':
IBuyer Downpayment
Metm Dade County Surtax
iCMB HOME 1996
CMB HOME '.1997
'AMOUNT !
'30~,,~8'~.~'li~.~ti~'r:t S'Gb~itt
............. ~' ' ed
" ...... ~ ....100,000 ·Funds from buyers
'_..'~_~'~_. '_7.'.~ :'Z-j'-b.~.5--°7~°nt-r~-~t~-:;~h~ ........
......... ~: ......-: ...............
--..-_ -- :'_ "-'..2-1-
= ' .............~9'6:~7Po ~fia~' I~te~ a~a'cched
....... ,r ..................
......... 2,304,508
AMOUNT
304,508
100,000
80,000
630,000
83,424
210,000
~USE OF FUNDS '
lRehab costs of 25 units ~. $12,180 per unit
......."' '
iDownpayment on 25 units ~ $4000 .l~..r unit
!4. Spcond Mortgages ~ $20,000 per unit
.. .-,...'..
:1 Second Mortgages ~ $30,000 per unit
· T~ird Mortgages ·. '~ $20,856 per unit '
!21 Third Modgages ~ :, (a:} . $10,000 per unit
i4 First Mortgag~. ' .'.: ~ $35,1~i4 perunit !'i_'." 2'.-':2 .--'!-'-' 1--4°-.,5-'-~h~2
I ~ '.." I ......
i21 First Mortgages .,," ~ $36,000 per.. unit ! ........ 756,000
i. ." : I ........
[ , . .,, _~. 2,304,508