2004-25611 ResoRESOLUTION NUMBER 2004-25611
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY HOUSING
REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH
MBCDC: 532 MICHIGAN AVENUE, LLC, A FLORIDA LIMITED LIABILITY
CORPORATION, ESTABLISHED AS A WHOLLY-OWNEI~ AFFILIATE OF
THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), IN THE AMOUNT OF $324,596 IN COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDS THROUGH
THE MULTI-FAMILY HOUSING REHABILITATION PROGRAM FOR THE
REHABILITATION OF THE AIMEE APARTMENTS, LOCATED AT 532
MICHIGAN AVENUE, MIAMI BEACH, TO PROVIDE EIGHTEEN (18)
RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS FOR A MINIMUM
PERIOD OF FIVE (5) YEARS.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department
of Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funding
through the HOME Investment Partnerships (HOME) Program; and
WHEREAS, on June 6, 2001, the City adopted Resolution No. 2001-24453,
authorizing a HOME Program Agreement between the City and MBCDC to provide
$328,987 of HOME Program funds for the acquisition and rehabilitation of an apartment
building located at 532 Michigan Avenue, Miami Beach; and
WHEREAS, on February 20, 2002, the City adopted Resolution No. 2002-24748,
authorizing a First Amendment to the HOME Program Agreement with MBCDC to utilize
$614,913 of the previously committed Fiscal Year 2001/02 Community Housing
Development Organization funds for the aforementioned project to acquire and rehabilitate
the apartment building located at 532 Michigan Avenue; and
WHEREAS, on May 29, 2002, the City adopted Resolution No. 2002-24863,
authorizing a Second Amendment to the HOME Program Agreement with MBCDC
replacing the previously committed $614,913 HOME Program funds from Fiscal Year
2001/02, with $614,913 in HOME Program funds from Fiscal Years 1992/1993 and Fiscal
Years 1993/1994; and
WHEREAS, on November 13, 2002, the City adopted Resolution No. 2002-25058,
authorizing a Third Amendment to the HOME Program Agreement, dated June 6, 2001,
between the City and MBCDC, to provide $208,777 of HOME Program funds for the
acquisition and rehabilitation of the property; and
WHEREAS, on September 10, 2003, the City adopted Resolution No. 2003-25321
authorizing a Fourth Amendment to the HOME Program Agreement, dated September 10,
2003,' between the City and MBCDC, to provide $364,331 of HOME Program funds
towards the rehabilitation of the property; and
WHEREAS, the City has established a program to encourage the rehabilitation of
existing multi-family buildings using funds from the U.S. Department of Housing and Urban
Development (HUD); and
WHEREAS, the Multi-Family Housing Rehabilitation Program (Program) is
administered by the City's Neighborhood Services Department; and
WHEREAS, on December 10, 2003, the Mayor and City Commission approved and
adopted revised Guidelines for the Multi-Family Housing Rehabilitation Program; and
WHEREAS, the City has received an application under the Program Guidelines for
funding the rehabilitation of the building located at 532 Michigan Avenue, which contains
twenty two (22) one-bedroom units to provide eighteen (18) units of affordable housing;
and
WHEREAS, the owner of this property, MBCDC: 532 Michigan Avenue, LLC, a
Florida Limited Liability Corporation, established as a wholly-owned affiliate of the Miami
Beach Community Development Corporation (MBCDC), has agreed to offer a minimum of
ten (10) of the eighteen (18) units at reduced rental rates for a minimum of five (5) years of
affordability starting at the time of satisfaction of the HOME Program Agreement dated
June 6, 2001, and as amended, with MBCDC; and
WHEREAS, the City's Loan Review Committee, at its May 28, 2003, meeting,
recommended that the Mayor and City Commission fund the proposed rehabilitation of 532
Michigan Avenue with a Multi-Family Housing Rehabilitation Matching Grant, in the amount
of $324,596 in Community Development Block Grant funds; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are authorized to execute the attached Multi-Family Housing Rehabilitation Program
Matching Grant Agreement with MBCDC: 532 Michigan Avenue, LLC, a Florida Limited
Liability Corporation, established as a wholly-owned affiliate of the Miami Beach
Community Development Corporation (MBCDC), in the amount of $324,596 in Community
Development Block Grant (CDBG) Program Funds through the Multi-Family Housing
Rehabilitation Program for the rehabilitation of the Aimee Apartments, located at 532
Michigan Avenue, Miami Beach, to provide eighteen (18) rental units for income-eligible
tenants for a minimum period of five (5) years.
PASSED AND ADOPTED THIS
ATTEST:
CITY CLERK
T:~AGENDA~2004~Ju10704\Consent\532 Michigan Avenue - MFHP Reso.doc
Resolution No. 2004-25611
7th DAY OF July
,2004.
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attome~'~
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution authorizing a Multi-Family Housing Rehabilitation Program Matching Grant Agreement with the
MBCDC: 532 Michigan Avenue, LLC, a wholly-owned affiliate of the Miami Beach Community Development
Corporation (MBCDC), in the amount of $324,596 in Community Development Block Grant (CDBG)
program funds through the Multi-Family Housing Rehabilitation Program for the rehabilitation of the Aimee
Apartments located at 532 Michigan Avenue, Miami Beach, to provide eighteen (18) rental units for
income-eligible tenants for a minimum period of five (51 years.
Issue:
Shall the City provide a Multi-Family Housing Rehabilitation Program Matching Grant Agreement with the
532 Michigan Avenue, LLC, in the amount of $324,596 for the rehabilitation of the Aimee Apartments to
provide eighteen (18) rental units for income-eligible tenants for a minimum period of five (5) years?
Item Summary/Recommendation:
Execute the Multi-Family Housing Rehabilitation Program Matching Grant Agreement with the MBCDC:
532 Michigan Avenue, LLC, a wholly-owned affiliate of the Miami Beach Community Development
Corporation (MBCDC), in the amount of $324,596 in Community Development Block Grant (CDBG)
program funds through the Multi-Family Housing Rehabilitation Program for the rehabilitation of the Aimee
Apartments located at 532 Michigan Avenue, Miami Beach, to provide eighteen (18) rental units for
income-eligible tenants for a minimum period of five (5) years.
Advisory Board Recommendation:
On May 28, 2004, the City's Loan Review Committee (LRC) met and reviewed the application for funding
for this property and voted to recommend approval by the Mayor and City Commission. The LRC
recommended a Grant of $324,596 towards the rehabilitation costs for the property.
Financial Information:
Funds: $184,850 131.5110.000346
139,746 133.5110.000346
Finance Dept. iiiiiiiiii!Totailiii~iiiiiiiiiil $324,596
City Clerk's Office Legislative Tracking:
VPG
n-Offs:
T:~AGENDA~2004~Ju10704\Consent\532 Michigan Avenue o MFHP Sum.doc
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miarnibeachfl.gov
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and Date: July 7, 2004
Members of the City Commission
Uorge U. Gonzalez I~l ,tA,~'~''~''
City Manager
A RESOLUTION THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE ATTACHED MULTI-FAMILY HOUSING
REHABILITATION PROGRAM MATCHING GRANT AGREEMENT WITH
THE MBCDC: 532 MICHIGAN AVENUE, LLC, A FLORIDA LIMITED
LIABILITY CORPORATION, ESTABLISHED AS A WHOLLY-OWNED
AFFILIATE OF THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), IN THE AMOUNT OF $324,596 IN
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
FUNDS THROUGH THE MULTI-FAMILY HOUSING REHABILITATION
PROGRAM FOR THE REHABILITATION OF THE AIMEE APARTMENTS
LOCATED AT 532 MICHIGAN AVENUE, MIAMI BEACH, TO PROVIDE
EIGHTEEN (18) RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS FOR
A MINIMUM PERIOD OF FIVE (5) YEARS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City administers the Multi-Family Housing Rehabilitation Program through the Housing
and Community Development Division of the Neighborhood Services Department. Since
1981, the City has provided financial assistance to property owners through this Program
resulting in the successful renovation of over 1,250 units of rental housing. The Multi-
Family Housing Rehabilitation Program operates with federal funds from the U.S.
Department of Housing and Urban Development (HUD) through the Community
Development Block Grant (CDBG) Program.
The Program Guidelines, adopted by the Mayor and City Commission on December 10,
2003, require that rehabilitated buildings be maintained in rental use for at least five (5)
years, and that 51 percent of the units be offered at affordable rental rates for that period.
The proposed Matching Grant Agreement with the property owner includes stipulations
July 7, 2004
Oornmission Memorandum
5,32 Michigan A venue
Page 2
requiring repayment to the City of the full amount of the Grant in case the owner fails to
perform the requirements of the Agreement.
Under the terms of a HOME Program Agreement, last amended on September 10, 2003,
MBCDC: 532 Michigan Avenue, LLC, a Florida Limited Liability Corporation, established as
a wholly-owned affiliate of the Miami Beach Community Development Corporation
(MBCDC), received a total of $1,517,008 in HOME Program funds from the City for the
development of the Aimee Apartments, a 18-unit HOME Program rehabilitation project.
MBCDC successfully obtained other public and private funds, including $500,000 from the
Miami-Dade County Documentary Surtax Program, $200,000 from the Federal Home Loan
Bank, and private financing for the rehabilitation of the building. The total cost of the
project is estimated to be $2,372,821.
532 Michigan Avenue - Funding Recommended: $324,596
The building at 532 Michigan Avenue was built in 1925 as an apartment building. The
architecture of the structure is Mission Revival. The building has been reviewed by the City
of Miami Beach Historic Preservation Board and was found to be located within the
Flamingo Park Local Historic District and is designated contributing in the Miami Beach
Historic Properties Database. The building is a concrete block structure with approximately
9,961 square feet of enclosed space. The applicant proposes to rehabilitate the building,
reducing the number of units to provide fourteen (14) one bedroom units and four (4)
efficiency units, which provides an average of 553 square feet per living unit.
The proposed improvements are estimated to cost $1,558,300. The scope of work on the
apartment building will encompass all aspects of the property: electrical, plumbing,
structural, and configuration. The rehabilitation of the building is currently underway and at
its completion the building will be brought up the current South Florida Building Code.
MBCDC will provide a match of $700,000 toward the rehabilitation of the property through
a line of credit with the Commercial Bank and a construction Loan through a Surtax Future
Advance Loan.
The Miami Beach Community Development Corporation purchased the subject property in
August of 2001. The appraised value of the building is $2,408,300, based on the purchase
price of the building ($850,000) and the value of the rehabilitation ($1,558,300). Accepting
this price as market value, the City's contribution to the construction cost of $330,000 is
less than 50 percent of the market value of the land and building after rehabilitation.
On September 10, 2003, the City and MBCDC entered into a HOME Program Agreement
for this property to provide affordable units for a period of fifteen (15) years. Therefore,
under the Multi-Family Housing Rehabilitation Agreement, the Owner will provide a five
years period of affordability for ten (10) of the units starting at the time of completion of the
HOME Program Agreement. These ten (10) units will be reserved for occupancy by
tenants earning 80 percent or less of the Area Median Income as determined by HUD, for
a period of five (5) years. The rents are to be established in accordance with the CDBG
Program Rent schedule as issued by the U.S. Department of Housing and Urban
Development (HUD) for apartments. Currently, the approved net rents under this schedule
~u~ ~ 2004
Comm~s~nMemomndum
532Michigan Avenue
Page 3
are: $510 per month for an efficiency unit (3) and $650 per month for one-bedroom units
(7). For these units, the eligible tenant incomes are restricted to a maximum of 80% of
Area Median Income. According to HUD survey data, 80% of the Area Median Income for
Miami-Dade County for a family of two is currently $30,850 per year.
On May 28, 2004, the City's Loan Review Committee (LRC) met and reviewed the
application for funding for this property and voted to recommend approval by the Mayor
and City Commission. The LRC recommended a Grant of $324,596 towards the
rehabilitation costs for the property. The project qualifies for a maximum of $330,000 of
CDBG Program funds as a matching grant under the Program Guidelines, based on twenty
two (22) apartments at $15,000 per unit.
A review of City and County records for the property indicates that there are no unpaid
water or sanitation bills, and taxes are paid for the current year. In accordance with the
Program Guidelines, the rehabilitation proposed will bdng the property into compliance with
the City's Property Maintenance Standards.
This building currently has no existing tenants. Therefore, no relocation will be required.
The Administration recommends that the Mayor and City Commission adopt the attached
resolution authorizing the Mayor and City Clerk to execute the attached Multi-Family
Housing Rehabilitation Program Matching Grant Agreement with the MBCDC: 532
Michigan Avenue, LLC, a Florida Limited Liability Corporation, established as a wholly-
owned affiliate of the Miami Beach Community Development Corporation (MBCDC), in the
amount of $324,596 in Community Development Block Grant (CDBG) Program Funds
through the Multi-Family Housing Rehabilitation Program for the rehabilitation of the Aimee
Apartments located at 532 Michigan Avenue, Miami Beach, to provide eighteen (18) rental
units f~Come-eligible tenants for a minimum period of five (5) years.
RCMNP~IJRIMDCISKC
T:~AGENDA~2004~Ju10704\Consent\532 Michigan Avenue - Memo.doc
This instrument prepared by:
Raul Aguila, First Asst. City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
MULTI-FAMILY HOUSING REHABILITATION PROGRAM
MATCHING GRANT AGREEMENT
THIS AGREEMENT entered into this J_~day of '-~'/~ L~ , 2004, by and between:
MBCDC: 532 Michigan Avenue, LLC, whose business address is 945 Pennsylvania Avenue, 2nd Floor, Miami Beach,
Florida 33139, hereinafter referred to as "Owner", who is the legal owner of the property at 532 Michigan Avenue,
Miami Beach, Florida, 33139 more particularly described as:
Lot 4 of Block 98, OCEAN BEACH ADDITION NUMBER THREE, according to the plat thereof
recorded in Plat Book 2 at Page 81, of the Public Records of Miami-Dade County, Florida, also known as
532 Michigan Avenue, hereinafter referred to as the "Project",
and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention Center
Drive, Miami Beach, Florida, hereinafter referred to as the "City".
WITNESSETH:
WHEREAS, the City has established a Multi-Family Housing Rehabilitation Program, hereinafter referred to as
"Program", designed to provide financial assistance to property owners of deteriorated and substandard multi-family
residential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and
WHEREAS, the policies of said Program are set forth in the City of Miami Beach Multi-Family Housing
Rehabilitation Programs Guidelines (Guidelines), amended by the City Commission on December 10, 2003, which are
deemed incorporated by reference and made a part of this Agreement; and
WHEREAS, Owner, as the legal Owner of the Project described above, has agreed to rehabilitate said Project
in accordance with the Guidelines of the Program; and
WHEREAS, the City's Loan Review Committee on May 28, 2004, recommended approval of assistance to the
Project under the Program, and the provision of assistance has been approved by the Mayor and City Commission,
subject to certain conditions, including the requirement that the Owner and the City enter into this Agreement; and
WHEREAS, it is acknowledged and agreed between the City and the Owner that funds provided hereunder
derive from federal Community Development Block Grant funds appropriated to the City by the U.S. Department of
Housing and Urban Development, for the uses and purposes herein referred to, and accordingly it is acknowledged and
agreed that this Agreement is entered into after compliance by the parties with all applicable provisions of Federal, State
and local laws, statutes, roles and regulations as they may apply to this Agreement, which certain of said regulations are
incorporated herein as more fully set forth in Attachment "A".
NOW, THEREFORE, in consideration of the mutual promises contained herein and in consideration of the
matching grant monies which are to be paid by City to the Owner, which consideration is hereby acknowledged by the
parties, the parties do agree as follows:
(1)
(2)
Any amendments, alterations, or variations to this Agreement will only be valid when they have been
reduced to writing and duly signed by the parties.
It is understood and agreed by and between the parties that the Guidelines, as they may be amended
from time to time, represent the scope of services and responsibilities of the parties under the Program
(3)
(4)
(5)
(6)
(7)
(8)
and the parties agree to abide by and comply with their roles and responsibilities under the Guidelines
as set forth therein.
City shall have the sole responsibility and obligation of interpreting the intent and purpose of the
Program and contract documents.
Rehabilitation of the Project shall be done in accordance with the applicable codes, ordinances and
statutes of the State of Florida, Miami-Dade County, and of the City.
The maximum Matching Grant amount to be provided under this Agreement is Three Hundred Twenty
Four Thousand Five Hundred Ninety Six Dollars ($324,596). This amount is to be used only to cover
the cost of rehabilitating the building, as a match for funds paid by the Owner on at least a dollar-for-
dollar basis. The structural repairs are to be completed first and any left over money can be used to
work on the list of remaining items. The work is to be done in accordance with the application and
addendum filed by the Owner with the City, reviewed and recommended by the City's Loan Review
Committee on May 28, 2004, and subsequently approved and amended by the Mayor and City
Commission.
It is understood and agreed by and between the parties that none of the obligations of the City assumed
or created hereunder shall be general obligations of the City and none of the same shall be enforceable
against the City generally. Any and all obligations, liabilities and commitments of the City hereunder,
shall be limited to the payment of a Matching Grant amount of Three Hundred Twenty Four Thousand
Five Hundred Ninety Six Dollars ($324,596), as specified herein. No other fiscal, legal, equitable or
contractual duty or obligation is assumed by the City, and the Owner by executing this Agreement so
agrees.
The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's
liability for any cause of action for money damages due to an alleged breach by the City of this
Agreement, so that its liability for any such breach never exceeds the sum of $324,596. Owner hereby
expresses its willingness to enter into this Agreement with Owner's recovery from the City for any
damage action for breach of contract to be limited to a maximum amount of $324,596, less the amount
of all funds actually paid by the City to Owner pursuant to this Agreement.
Accordingly, Owner hereby agrees that the City shall not be liable to Owner for damages in an amount
in excess of $324,596, which amount shall be reduced by the amount of the funding actually paid by
the City to Owner pursuant to this Agreement, for any action or claim for breach of contract arising out
of the performance or non-performance of any obligations imposed upon the City by this Agreement.
Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a
waiver of the limitation placed on the City's liability as set forth in Florida Statutes, Section 768.28.
The Matching Grant amount shall be paid to the Owner and shall be disbursed during the rehabilitation
of the Project. After this Matching Grant payment is made by the City to the Owner and applied by the
Owner according to the procedures set forth herein, the City shall be automatically discharged from
any and all obligations, liabilities and commitments hereunder to Owner or any third person or entity
provided, however, that this Section shall not excuse the continued compliance by Owner with the
terms of this Agreement and the federal Program requirements. Owner, for consideration of One
Dollar ($1.00) and other good, valuable, separate and distinct consideration, receipt of which is hereby
acknowledged, hereby saves and holds harmless, indemnifies and protects the City, its officers and
employees from any and all obligations, liabilities, commitments, actions, claims, causes of action,
suits or demands arising or accruing by virtue of this Agreement or the Project contemplated
hereunder.
The following procedures must be followed, prior to the commencement of work on this Project:
(9)
a) Owner must submit a written request to the City's Housing and Community Development Division
of the Neighborhood Services Department ("NSD") for a Pre-Construction Conference, which must be
attended by all contractors and subcontractors. This request must include the names and addresses of
the proposed contractors and sub-contractors, including the names of the principal owners of corporate
entities, and an indication whether each of the contractor's portion of the total project value will exceed
$10,000. This process requires at least ten (10) days advance notification.
b) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded
project. The names submitted will be checked against the "Consolidated List of Debarred, Suspended
& Ineligible Contractors and Grantees" monthly listing published by the Federal Government.
c) If the building is more than 50 years old, Owner's Architect or Engineer must obtain and submit to
the City a letter indicating that the plans for the project have been reviewed by the State Historic
Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable to that Office.
d) A set of final approved plans and specifications for the Project, approved by the City's Building
Department, must be submitted to the Housing and Community Development Division of the NSD.
e) Building permits must be obtained as required by applicable City Ordinance. Also, any other
necessary permits and applicable approvals from any other govemmental authorities must be obtained,
if required.
f) A copy of the contract between the Owner and a licensed General Contractor must be submitted to
the City, which includes commencement and completion dates, contract amount, scope of work,
Federal Labor Standards Provisions (HUD Form 4010), and applicable federal regulations and
standards.
g) The contractor selected must submit evidence prior to the commencement of work, satisfactory to
the City's Insurance Manager, of the following insurance coverage: 1) Liability insurance against
claims arising out of accident or occurrence on the property, in a minimum amount of $1,000,000, with
the City of Miami Beach named as additional insured in the policy; and 2) Proof of worker's
compensation coverage; and 3) such other forms of insurance as the City's Risk Manager may
reasonably require.
h) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the
actual contract price.
i) The Owner must provide a Lien Statement from the City's Finance Department demonstrating that it
is current with the legal and financial obligations and/or payments on the Project, and the property
herein, with the City.
When the above requirements have been met, the Housing and Community Development Division of
the NSD and the Building Services Division will jointly issue a "Notice to Proceed" on the Project. If
the Owner or contractor does not fully comply, or if any work commences prior to the issuance of the
Notice to Proceed, then such work may, at the discretion of the City, not be reimbursed under the
Program, and could constitute a default under this Agreement.
Exception: Subject to the prior approval of the Housing and Community Development Division of the
NSD and the Building Services Division, emergency repairs can be undertaken on the Project.
In consideration for the performance of Owner of its role and responsibilities set forth in this
Agreement, the City agrees to pay to Owner, the sum of Three Hundred Twenty Four Thousand Five
Hundred Ninety Six Dollars ($324,596), as the total of the Matching Grant described herein. Said
total shall be disbursed by the City to the Owner during construction as follows: During the
(10)
construction phase, and not more often than once a month, a payment may be requested equivalent to
ninety percent (90%) of the pro-rata portion of the value of the work completed in the previous period,
as certified by the Owner's Architect or Engineer, and confirmed by the Housing and Community
Development Division of the City's Neighborhood Services Department. The City's payments
hereunder will be computed based on the ratio of the matching grant amount to the total estimated
construction cost. In the event the actual cost is less than the estimate, the amount of the City's
Matching Grant will be reduced proportionately, so that the City's portion of the total cost is never
higher than 50% of the total cost. The final ten percent (10%) of the matching grant payment shall be
paid following the completion, approval and acceptance of the rehabilitation work and related
documentation by all the governmental agencies and authorities having jurisdiction over the Project,
including compliance with the requirements of the Davis Bacon Act, if applicable, and as set forth in
the Guidelines.
Owner agrees to comply with the following requirements during and after construction begins:
a) The Owner must announce and publicize the source of the public funds provided for the Project. A
construction sign must be displayed on the site during the construction phase, with the design and
location to be approved by the City. The sign, to be provided and paid for by the Owner, must be
maintained for the duration of the construction work. The City will provide detailed information on
the dimensions and appearance of the sign.
b) The Owner's General Contractor shall be responsible for compliance with all pollution and asbestos
control standards of the concerned governmental agencies. It shall be the Contractor's responsibility to
obtain required inspections from these agencies.
c) On September 15, 1999, the "Requirements for Notification, Evaluation and Reduction of Lead-
Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal
Assistance; Final Rule" was published within title 24 of the Code of Federal Regulations as part 35 (24
CFR 35). The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based
Paint Hazard Reduction Act of 1992, which is Title X (ten) of the Housing and Community
Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead-Based Paint
Poisoning Prevention Act of 1971, which is the basic law covering lead-based paint in federally
associated housing.
The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead in
house dust. Scientific research has found that exposure to lead in dust is the most common way young
children become lead poisoned. Therefore, the new regulation requires dust testing after paint is
disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing is
being disposed of or assisted by the federal government, and also on the type and amount of financial
assistance, the age of the structure, and whether the dwelling is rental or owner occupied.
PROPERTY EXEMPT FROM LEAD-BASED PAINT REGULATION.
Housing built since January 1, 1978, when lead paint was banned for residential use
Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is
expected to reside there
Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing,
dormitories or military barracks
Property that has been found to be free of lead-based paint by a certified lead-based paint
inspector
Property where all lead-based paint has been removed
Unoccupied housing that will remain vacant until demolished
Non-Residential property
Any rehabilitation or housing improvement that does not disturb a painted surface
(11)
(12)
TYPES OF HOUSING SUBJECT TO 24 CFR 35
Federally-Owned housing being sold
Housing receiving a federal subsidy that is associated with the property, rather than with the
occupants (project-based assistance)
Public housing
Housing occupied by a family (with a child) receiving tenam-based subsidy (such as a
voucher or certificate)
Multifamily housing for which mortgage insurance is being sought
Housing receiving federal assistance for rehabilitation, reducing homelessness, and other
special needs
If you warn copies of the regulation or have general questions, you can call the National Lead
Information Cemer at (800) 424-LEAD, or TDD (800) 526-5456 for the hearing impaired. You can
also download the regulation and other educational materials at www.hud.gov/lea. For further
information, you may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at
lead regulations@hud.gov.
d) After the Project, and the property herein, has been rehabilitated, it must conform to the applicable
codes, ordinances and statutes of the City and of Miami-Dade County, including, but not limited to, the
South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards.
It is understood and agreed by Owner that for at least five (5) years beginning at the time of
satisfaction of the conditions of that certain HOME Program Agreemem (between the City and Miami
Beach Community Development Corporation (MBCDC), of which Owner is a wholly owned affiliate,
dated May 8, 2002,. as same may be amended), a minimum of ten (10) apartment units (56%) will be
occupied by low and moderate income households at affordable rents. Low and moderate income
households means the combined income of all members of the household does not exceed 80% of the
Area Median Income, as published by HUD. All tenants must be offered a written lease. A
"Household Income Certification Report" will have to be completed for every rental unit claimed as
meeting the above requirements at least annually. This report must be submitted to the Housing and
Community Development Division of the NSD within ten (10) days after the commencement of each
lease, and an updated form must be submitted at least annually thereafter during the month of August,
for the fiscal year ended September 30.
The following income limits apply as of this date, but may be revised annually:
1 person $27,000
2 persons $30,850
3 persons $34,700
4 persons $38,550
Monthly rems for units occupied by low and moderate income households are considered affordable if
they do not exceed the "40th Percentile Fair Market Rents for Existing Housing", published by HUD,
as of this date, but subject to revision annually. Currently the rent for an efficiency apartment is $570,
including a utility allowance of $60 per month, for a net rent of $5 l0 per month excluding utilities; a
one bedroom apartment is $717, including a utility allowance of $67 per month, for a net rent of $650
per month excluding utilities; and the rent for a two-bedroom apartment is $894 per month, which
includes a $79 per month utility allowance, for a net of $815 per month.
It is understood by Owner that if the Project is converted to condominiums, sold, or withdrawn from
rental use within five (5) years after the Final Certificate of Completion is issued, the full amount of
the Matching Grant payment will become immediately due and payable to the City.
(13)
(14)
(15)
Owner shall deliver to the Housing and Community Development Division of the NSD, by August
30th of each calendar year, its signed notarized report in form and substance acceptable to the City,
which includes the names of tenants, unit type, family income, rents charged, and occupancy factor of
each unit for the prior year. This report will continue to be required through the August 30th following
the expiration of the five (5) year period after the date of issuance of a Final Certificate of Completion.
It shall be deemed a default of this Agreement if Owner does not strictly comply with the terms,
conditions, duties and procedures established herein for obtaining City consent to assignment or
transfer as defined by this Section. In the event such consent is not obtained in the manner prescribed
herein, the City shall be entitled to declare a default, cancel this Agreement and resort to its rights and
remedies against the defaulting party. Owner shall not assign any interest in this Agreement and will
not transfer any interest in the same without the prior written consent of the City, which shall take into
consideration any recommendation(s) regarding same by its Loan Review Committee. In the event
Owner is a corporation, limited partnership or other incorporated or artificial business entity, a transfer
of more than ten percent (10%) Ownership interest of its stock by pledge, sale or otherwise (except a
transfer of partnership interests in connection with the syndication of limited partner interests in the
Ownership, which shall not require any consent hereunder); or if Owner makes an assignment for the
benefit of its creditors or uses this Agreement as security or collateral for any loan; or if Owner is
voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if Owner has a
receiver appointed over any of its properties; or if Owner does not satisfy in full or appeal any
judgment for the sum of $5,000 (or more) within thirty (30) days from its' rendition; or if Owner is
involved in a bulk transfer of its business, then, in that event, each of the foregoing actions will be
deemed an assignment of this Agreement and require the prior written consent of the City, which shall
take into consideration any recommendation(s) regarding same by its Loan Review Committee.
In the event Owner is a trust, which includes, without limitation, a land trust and a trust company, any
change in the person or entity who is the trustee or any change in the heirs or beneficiaries of such trust
shall be deemed an assignment under this Section and require the prior written consent of the City,
which shall take into consideration any recommendation(s) regarding same by its Loan Review
Committee. Regardless of the type of entity Owner is defined to be, a merger, insolvency, bankruptcy,
dissolution, consolidation, conversion, liquidation, or appointment of a receiver for such Owner shall
each be deemed an assignment of this Agreement and will require the prior written consent of the City
upon approval by the Loan Review Committee.
For purposes of this Agreement, a default shall include, without limitation, the following acts or events
of the Owner, or its agents, servants, employees, or contractors:
(a) Owner's failure to (i) commence work within thirty (30) days from the date of issuance of the
Notice to Proceed by the City; or (ii) diligently pursue construction and timely complete the Project by
securing a Final Certificate of Completion within twelve (12) months from the date of this Agreement;
or (iii) provide the documentation required to make the £mal payment of the matching grant, as
indicated in the Guidelines, within thirty (30) days from the date of issuance of a Final Certificate of
Completion.
Work shall be considered to have commenced and be in active progress when, in the sole opinion and
discretion of the City, a full complement of workmen and equipment is present at the site to diligently
incorporate materials and equipment into the structure throughout the day on each full working day,
weather permitting.
(b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning laws,
rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other loan document
executed by Owner in favor of a Lender. Notwithstanding the provisions of Paragraphs 17 and 18,
(16)
(17)
(18)
(19)
upon a default of a written indebtedness, including without limitation, a note, mortgage, guarantee, and
this Agreement, Owner waives notice, presentment and/or demand of default, and the full amount of
the Matching Grant payment will become due and payable to the City.
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or Lender.
(f) Owner's failure to correct defects within a reasonable time as defined herein.
(g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines or applicable
laws, roles and regulations pertaining hereto which are referenced by this Agreement.
(h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within sixty (60)
days from the date of filing of any such lien.
(i) An assignment or transfer of this Agreement or any interest therein by Owner which does not
comply with the procedures set forth herein.
In the event of a default, the City may, thirty (30) days after mailing to Owner a notice of such default
as set forth herein, automatically cancel and terminate this Agreement without liability to any party to
this Agreement. If the default is not fully and satisfactorily cured within thirty (30) days of the City
mailing notice of such default to Owner, to the full satisfaction of the City, at the expiration of said
thirty (30) day period, this Agreement may, at the City's sole option and discretion, be deemed
automatically canceled and terminated and the City fully discharged from any and all liabilities, duties
and terms arising out of or accruing by virtue of this Agreement and the Project, and all funds paid to
the Owner hereunder shall be immediately due and payable to the City.
In the event of a default, the City shall additionally be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest in Miami-Dade County, Florida, in order to
enforce the City's rights and remedies against the defaulting party. The City shall be entitled to
recover all costs of such actions including reasonable attorney's fees to the extent allowed by law. The
Owner waives its right to jury trial and its right to bring permissive counterclaims against the City in
any such action to the extent allowed by law.
If the property is occupied at the time the application is submitted the Owner must submit a tenant roll.
Additionally, the Owner must submit for each unit: tenant names, lease terms, duration of occupancy,
rent currently paid, with an indication as to whether utilities are included, family size, family income,
and any other information determined necessary by the NSD to assess the need for temporary
relocation. If a property is occupied and temporary relocation of the tenants is required during the
rehabilitation or construction, the City will reimburse up to fifty percent (50%) of "eligible" temporary
relocation expenses incurred by the property owner in accordance with the budget and plan submitted
as part of the application and approved by the City. "Eligible" expenses will be determined in
accordance with the provisions of Handbook 1378: Tenant Assistance, Relocation and Real Property
Acquisition, issued by HUD, as amended.
The Owner must pay these expenses directly, or reimburse the tenants for their payments, and
document all such expenditures carefully. Upon submittal ora detailed accounting, to the satisfaction
of the City, of all such payments or reimbursements made each month for the duration of the project,
the City will reimburse the owner up to 50% of those eligible expenses incurred for this purpose.
Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such
permanent relocation shall be borne by the Owner.
(20)
(21)
(22)
(23)
The Owner agrees to send, or to permit the City or its agent to send, federally required notices to
tenants in a timely manner. These notices include, but are not limited to: General Information Notice,
Notice of Non-displacement and a Notice of Eligibility. Owner shall make every effort to assure that
temporary accommodations provided for tenants are decent, safe and sanitary, and that other living
conditions are generally acceptable. The Owner will ensure that there is no increase in out-of-pocket
housing expenses to the tenant. Those tenants who were in residence prior rehabilitation, and who
received a "Notice of Non-Displacement", who elect to return to the property upon completion of the
rehabilitation work are referred to herein as "Returning Tenants". Owner must agree to offer a unit to
the Returning Tenants on the following terms, independently of the rent restrictions detailed herein:
a. Returning Tenants must be offered the same apartment previously occupied, or a unit comparable in
terms of size and amenities to the unit occupied prior to the rehabilitation.
b. Returning Tenants must be offered a standard lease for at least a 12 month period at the same rent
being charged before the rehabilitation.
c. Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following the
completion of the rehabilitation work, rent charged the Returning Tenant may be increased in an
amount deemed reasonable by the City, and only if the amount of such proposed increase can be
justified, based on documented increases in the operating costs of the property.
d. Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted
to the HUD Fair Market Rent, as specified in Chapter I, Section iv (h), if applicable, or to market
rental rate if the Tenant's income is greater than 80% of the Area Median Income.
Notices and demands: All notices, demands, correspondence and communications between the City
and the Owner shall be deemed sufficiently given under the terms of this Agreement if dispatched by
registered or certified mail, postage prepaid, return receipt requested, addressed as follows:
If to the City:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with copies to:
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Housing Manager, Neighborhood Services Department
If to the Owner:
Roberto Datorre, President
MBCDC: 532 Michigan Avenue, LLC
945 Pennsylvania Avenue
Miami Beach, Florida 33139
or to such address and to the attention of such other person as the City or the Owner may from time to
time designate by written notice to the other.
It is understood and agreed that the City shall record this Agreement, with the Clerk of the County
Court, Miami-Dade County, Florida and shall furnish the Owner with conformed copies of the
recorded instrument within sixty (60) days of the recordation of this Agreement.
The Owner agrees that upon completion of the rehabilitation herennder, it will undertake an
affirmative marketing program in accordance with 24 CFR Part 570.601-2. At a minimum, the Owner
must implement an affirmative marketing program that provides information to, and attracts eligible
persons in the housing market area to the available housing receiving assistance from CDBG funds,
without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital status,
familial status, or age. The affrrmative marketing requirements and procedures adopted by the Owner
shall include, but not necessarily be limited to, the following:
(a) Methods for informing the public and potential tenants about Federal Fair Housing Laws and the
applicable affn-mative marketing policy;
(b) Requirements and practices for carrying out the affn'mative marketing plan;
(c) Procedures to be used to inform and solicit applications from persons in the housing market area
who are not likely to apply for the housing without special outreach (e.g., use of community
organizations including, but not limited to: churches, employment centers, community centers, fair
housing groups, housing counseling agencies, community development corporations, and the Housing
Authority of the City of Miami Beach)
(d) Records to be kept describing actions taken to affu-matively market units and records to assess the
results of these actions, including newspaper clippings of all vacant units advertised, copies of
brochures, pamphlets, and articles used in advertising units, lists of community organizations used in
disseminating information, records of referrals, and the results of Owners and referrals, and
documentation of any other special outreach activities conducted.
(e) A description of how the City can assess the success of affirmative marketing actions; and
(f) A certification that states that the Owner agrees to adhere to whatever corrective actions the City
requires to be taken where affn'mative marketing requirements are not met.
(g) Owner agrees to post in a visible location within the building a poster provided by the City
advising the tenants of the City's participation in the project.
IN WITNESS WHEREOF, the Owner, and the City have caused this Agreement to be executed by their respective duly
authorized officers, the day and year first above written. THE PARTIES HERETO STATE THAT THEY HAVE
CAREFULLY READ THE FOREGOING AGREEMENT AND THE CITY OF MIAMI BEACH MULTI-FAMILY
REHABILITATION PROGRAM GUIDELINES, AND KNOW THE CONTENTS THEREOF AND FULLY REALIZE
THEIR MEANING AND SIGN THIS AGREEMENT AS THEIR OWN FREE ACT.
WIXNESSi
/~n~e:
Print Name:
! P~O-BERT PARCHER, CITY CLERK
Owner: MBCDC: 532 Michigan Avenue, LLC.
By:
PRESIDENT
/ I/ ~7OFMIAMI BEACH
By:
~//~//~)rVID DERMER, MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
10
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
, of MBCDC: 532 Michigan Avenue, LLC, who providLm
and did/did not take an oath.
,2004, by Roberto Datorre, as
as identification
My Comm~s~o~ 130285722 ~ ' ~-~ ~,,~
~,,:~rj Exl~re$ Februa~/08. 2008 Name:
NOTARY PUBLIC, State of Florida
Commission N°
My Commission Expires:
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE)
The foregoing instrument was acknowledged before me, this/~ day o~-/, 2004, by David Dermer, as Mayor of
the City of Miami Beach, who is personally known to me, and did not take an oath.
-- "OFFICIAL NOTARY SEAL
LILLIAN BEAUCHAMP
NOTARY PUBLIC STATE OF FLORIDA
COMMISSION NO. DDI09289
MY COMMISSION EXP. APR. 29,2006
Commission N° '~/ID? ~"
My Commission Expires:
T:XAGENDA\2004XJuI0704\Consent\532 Michigan Avenue - MFHP Agreement.doc
11
ATTACHMENT "A"
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through federal funds, all parties agree to comply with the
following statutes, regulations and executive orders, as they apply. These requirements are incorporated herein by
reference.
1. 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).
2. 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), as amended;
- 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), as amended;
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended;
- The Age Discrimination Act of 1975 (42 U.S.C. 6101);
- The Fair Housing Amendments Act of 1988.
3. Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq);
- The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508);
- 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 Protection Act of 1973.
4. Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq) as amended through H.C.D.
Act of 1992;
- HUD Lead Based Paint Regulations (24 CFR Part 35).
5. Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M);
- U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos Regulations
(29 CFR 191.1101).
6. 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).
8. Community Development Block Grant Regulations (24 CFR Part 570).
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL
LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
4
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