2004-25613 ResoRESOLUTION NO. 2004-25613
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 SECOND
AMENDMENT TO HOME INVESTMENT PARTNERSHIPS (HOME)
PROGRAM AGREEMENT WITH MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION (MBCDC) PROVIDING A TOTAL
OF $205,632 IN HOME PROGRAM FUNDS FROM FISCAL YEAR
2003~04, PREVIOUSLY ALLOCATED TO MBCDC TOWARD THE
COST OF THE ACQUISITION AND REHABILITATION OF THE
APARTMENT BUILDING LOCATED AT 530 MICHIGAN AVENUE,
MIAMI BEACH, TO PROVIDE NINE (9) RENTAL UNITS FOR
INCOME-ELIGIBLE ELDERLY TENANTS, IN ACCORDANCE WITH
THE HOME PROGRAM REQUIREMENTS.
WHEREAS, the City has established a HOME Investment Partnerships (HOME)
Program under the rules of the U.S. Department of Housing and Urban Development
(HUD), which provides financial assistance for the purpose of providing affordable housing
within the City; and
WHEREAS, the City has determined the necessity for providing affordable housing
in the City through its Consolidated Plan and its One-Year Action Plan for Federal Funds
for Fiscal Year 2000/2001, adopted by Resolution No. 2003-25304 on July 30, 2003; and
WHEREAS, on July 30, 2003, the City approved Resolution No. 2003-25304 and in
the One Year Action Plan for Fiscal Year 2003/04 allocated $800,000 of HOME funds to be
used by Miami Beach Community Development Corporation (MBCDC) toward the
production of affordable housing within the City; and
WHEREAS, on February 20, 2002, the City approved Resolution No. 2002-24749
authorizing a HOME Program Agreement between the City and MBCDC providing
$333,300 of funds from a HOME Program Notice of Funding Availability (NOFA) towards
the acquisition and rehabilitation of a nine (9) unit apartment building at 530 Michigan
Avenue, to provide rental housing for income-eligible eldedy tenants in accordance with the
HOME Program requirements; and
WHEREAS, on July 31, 2002, the City approved Resolution No. 2002-23935
authorizing a First Amendment to the HOME Program Agreement between the City and
MBCDC providing $170,538 of funds from a HOME Program Notice of Funding Availability
(NOFA) towards the acquisition and rehabilitation of the nine (9) unit apartment building at
530 Michigan Avenue; and
WHEREAS, the City's Loan Review Committee (LRC), at its May 28, 2004 meeting,
recommended funding for an application from MBCDC for the requested amount of
$205,632, to be utilized toward the acquisition and rehabilitation of the apartment building
located at 530 Michigan Avenue, Miami Beach, to provide nine rental units for income-
eligible elderly tenants.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
~COMMISSlON OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
are hereby authorized to execute the attached Second Amendment to HOME Investment
Partnerships (HOME) Program Agreement with Miami Beach Community Development
Corporation (MBCDC), providing a total of $205,632 in HOME Program funds from Fiscal
Year 2003/04, previously allocated to MBCDC towards the acquisition and rehabilitation of
the apartment building located at 530 Michigan Avenue, Miami Beach, to provide nine (9)
rental units for income-eligible elderly tenants in accordance with the HOME Program
requirements.
PASSED AND ADOPTED THIS
AT, ST:
7th DAY¢
July
,2004
530 MICHIGAN AVE RESO.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution to provide $205,632 in HOME program funds from fiscal year 2003/04 previously allocated to
MBCDC towards the acquisition and rehabilitation of the property located at 530 Michigan Avenue to
provide nine (9) rental units for income-eligible elderly tenants in accordance with the HOME program
requirements.
Issue:
Shall the City provide $205,632 in HOME program funds from fiscal year 2003/04 previously allocated to
MBCDC towards the acquisition and rehabilitation of the property located at 530 Michigan Avenue to
provide nine (9) rental units for income-eligible elderly tenants in accordance with the HOME program
requirements?
Item Summary/Recommendation:
On July 30, 2003, the City allocated $800,000 of HOME Program funds to be used by MBCDC towards the
production of affordable housing within the City. MBCDC has requested $205,632 of the HOME funds to be
used towards the acquisition and rehabilitation of the apartment building located at 530 Michigan Avenue to
provide 9 units for income-eligible elderly tenants.
Advisory Board Recommendation:
On May 28, 2004, the Loan Review Committee recommended that the Commission approve the request
from MBCDC for the utilization of $205,632 of HOME Program funds to provide nine rental units for
income-eligible tenants in the apartment building at 530 Michigan Avenue to be utilized towards the
acquisition and rehabilitation of the property.
Financial Information:
Source of Amount Account Approved
Funds: 1 $205,632 151.5232.000349
HOME 2
3
4
Finance Dept. Total
City Clerk's Office Legislative Tracking:
VPG
Sign-Offs:
Assistant City Manager
Department Director
City Manager
T:~AGENDA~004~Ju10704\Consent\530 MICHIGAN AVE SUM.doc
AGENDA ITEM
DATE
7-7-o5/
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and Date: July 7, 2004
Members of the City Commission
Jorge M. Gonzalez ~F: ~'~
City Manager ¢/~
A RESOLUTION THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A SECOND AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS {HOME) PROGRAM AGREEMENT,
DATED FEBRUARY 20, 2002, BETVVEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION {MBCDC), PROVIDING
$205,632 IN HOME PROGRAM FUNDS FROM FISCAL YEAR 2003/04
PREVIOUSLY ALLOCATED TO MBCDC TOWARDS THE ACQUISITION
AND REHABILITATION OF THE PROPERTY LOCATED AT 530
MICHIGAN AVENUE TO PROVIDE NINE (9) RENTAL UNITS FOR
INCOME-ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH THE
HOME PROGRAM REQUIREMENTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City has received an annual allocation of Home Investment Partnerships (HOME)
Program funds from the U.S. Department of Housing and Urban Development (U.S. HUD)
since 1992 for the purpose of expanding the supply of housing for persons meeting the
income criteria of the HOME Program. This Program encourages partnerships between
the government and the private sector, including for-profit and not-for-profit organizations
for the acquisition, construction and rehabilitation of housing.
On July 30, 2003, the City approved Resolution No. 2003-25304 and in the One Year
Action Plan for Fiscal Year 2003/04 allocated $800,000 of HOME funds to be used by
Miami Beach Community Development Corporation (MBCDC) towards the production of
affordable housing within the City.
On May 28, 2004, the City's Loan Review Committee (LRC) recommended funding for an
application from MBCDC for the requested amount of $205,632 to be utilized toward the
acquisition and rehabilitation of the apartment building located at 530 Michigan Avenue,
Miami Beach, to provide nine (9) rental units for income-eligible elderly tenants.
MBCDC acquired the two-story, nine (9) unit apartment building at 530 Michigan Avenue
on August 23, 2001. At that time, MBCDC also acquired the building at 532 Michigan
Avenue from the same owner. MBCDC intends to operate the building to provide housing
for the elderly. MBCDC holds title to both properties under MBCDC: 532 Michigan
Avenue, LLC., a not-for-profit entity created by MBCDC.
The property at 530 Michigan Avenue is a two-story concrete and masonry structure
consisting of three studio apartments and six one-bedroom apartments. The structure was
built in 1972 and contains approximately 5,948 square feet. All units have or exceed the
minimum 400 square feet as required by Code.
All items included in the original scope of work have been completed. These included the
following: install new roof, replace wall mounted NC units with a central H.V.A.C. system,
replace all plumbing fixtures and replace all damaged pipes and drains, pressure wash
and paint exterior of the building, make necessary repairs to electrical system to assure
that the buildings comply with the City's adopted Code, install new cabinets in kitchens
and install new vanity tops in the bathrooms, replace the kitchen appliances, re-landscape
entry, and provide security features as necessary. In addition to these items, once the
project began MDCDC also had to perform the following Code required items: new egress
windows, fire stopping, make one unit accessible and perform assessable site work. So as
not to interrupt the project, MBCDC funded the additional items with their own funds. The
entire project has now been completed. All nine (9) units are occupied and MBCDC will
provide these rental units for income-eligible tenants for a minimum of 15 years.
The project was completed at a cost of $1,378,320. MBCDC currently has secured
$1,138,358 in permanent financing and $34,330 in rental income toward the project cost.
The $205,632 will be used to reimburse MBCDC for the equity they advanced to the
project while the building was under renovation.
The Administration recommends that the Mayor and City Commission authorize the Mayor
and City Clerk to execute the attached Home Investment Partnerships (HOME) Program
Agreement with MBCDC: 532 Michigan Avenue, LLC. providing a total of $205,632 in
HOME Program 2003/04 CHDO set-aside funds, towards the cost of the acquisition and
rehabilitation of the apartment building located at 530 Michigan Avenue, Miami Beach, to
provide nine (9) rental units for income-eligible elderly tenants in accordance with the
HOME Program requirements.
J MG/RC MN~_~IJ R/M DC/H KM
T:~AGENDA~2004\Ju10704\Consent~530 MICHIGAN AVE MEMO.doc
SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
THIS SECOND AMENDMENT TO THE AGREEMENT, entered into this '/'~ day of
~'~ L-~ , 2004, by and between the CITY OF MIAMI BEACH, a Florida municipal
corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida,
(City), and MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida
Not-for-Profit Corporation, with offices located at 945 Pennsylvania Avenue, Miami Beach,
Florida (hereinafter referred to as MBCDC).
WITNESSETH:
WHEREAS, on September 28, 2001, the City issued a HOME Program Notice of
Funding Availability (NOFA), in the amount of $503,838, for the acquisition and/or
rehabilitation of multi-family rental buildings or scattered site units for the purpose of providing
affordable rental housing; and
WHEREAS, on February 20, 2002, the City adopted Resolution No. 2002-24749,
authorizing a HOME Program Agreement with MBCDC, which committed $333,300 from the
City's Fiscal Year 2000/2001 HOME Program NOFA; and
WHEREAS, on July 31, 2002, the City adopted Resolution No. 2002-23935,
authorizing a First Amendment to the HOME Program Agreement with MBCDC which
committed $170,538 from the City's Fiscal Year 2000/2001 HOME Program NOFA; and
WHEREAS, the City received a request from MBCDC seeking approval to utilize
$205,632 in HOME Program funds from Fiscal Year 2003/04 previously allocated to MBCDC
to complete the financing for the apartment building at 530 Michigan Avenue; and
WHEREAS, on May 28, 2004, the City's Loan Review Committee (LRC) recommended
funding for the request from MBCDC (Owner of MBCDC: 532 Michigan Avenue, LLC) seeking
approval to utilize $205,632 in HOME Program funds from Fiscal Year 2003/04, previously
allocated to MBCDC to be utilized towardS the rehabilitation of the apartment building at 530
Michigan Avenue, to provide rental units for income-eligible elderly tenants; and
WHEREAS, MBCDC warrants and represents that it possesses the legal authority to
enter into this Second Amendment to Agreement, by way of a resolution that has been duly
adopted as an official act of the Board of Directors, authorizing the execution of this Second
Amendment to Agreement, including all understandings and assurances contained herein,
and authorizing the person(s) identified as their official representative(s) to execute this
Second Amendment to Agreement and any other documents which may be necessary to
implement same.
NOW, THEREFORE, in consideration of the promises and of the mutual covenants
and agreements hereinafter set forth, the parties hereto do hereby agree as follows;
ARTICLE II, ALLOCATION OF HOME FUNDS, page 2, the first paragraph is deleted in
its entirety and amended as follows:
In consideration of the performance by Owner of its role and responsibilities set
forth in this Agreement, the City agrees to provide a conditional grant of HOME
Program funds to Owner in the amount of Seven Hundred Nine Thousand Four
Hundred Seventy Dollars ($709,470) (Funds).
Except as amended by this Amendment, no term or condition of the Agreement shall
be modified and the same shall remain in full force and effect; provided, however, if
any revision of this Amendment is in conflict with, or inconsistent with, any information
in the Agreement, the provision contained in this Amendment shall govern and control.
This Amendment shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day
and date first above written.
ATTEST:
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
Secretary
Roberto Datorre, President, Authorized Signatory
ATTEST:
City Clerk
,IAMI BEACH
I corporation
Mayor
T:~AGENDA~2004~Ju10704\Consent\530 MICHIGAN AVE SECOND AMEND AGREE.doc
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attome~
Date
EXHIBIT B TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
SOURCES AND USES OF FUNDS
530 MICHIGAN AVENUE
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH HOME PROGRAM FUNDS
MIAMI-DADE COUNTY SURTAX INCENTIVE POOL
RENTAL INCOME
FEDERAL HOME LOAN BANK.
USES OF FUNDS
ACQUISITION OF PROPERTY
PRE-DEVELOPMENT COSTS
REHABILITATION CONSTRUCTION
DEVELOPER'S FEE
$709,47O
500,000
34,330
134,520
$1,378,320
$7O0,000
197,966
405,354
75,000
$1,378,320
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