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Home My WebLink About2004-25757 Reso RESOLUTION NO. 2004-25757 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 HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING $595,000 OF FISCAL YEAR 2003/04 HOME PROGRAM SET ASIDE FUNDS, AND $505,000 FISCAL YEAR 2003/04 HOME PROGRAM INCOME FUNDS, FOR THE ACQUISITION OF THE VILLA MARIA APARTMENTS, LOCATED AT 2800 COLLINS AVENUE, MIAMI BEACH, TO PROVIDE 34 RENTAL UNITS FOR INCOME-ELIGIBLE P ARTICIP ANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. 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 funds through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and WHEREAS, the City has established a HOME Investment Partnerships Program (HOME Program) under the rules of the U.S. Department of Housing and Urban Development (U.S. HUD), which provides financial assistance for the purpose of providing affordable housing within the City; and WHEREAS, on April 8, 1993, the Mayor and City Commission, approved Resolution No. 93-20756, designating MBCDC as a qualified Community Housing Development Organization (CHDO) under the HOME Program; and WHEREAS, in accordance with the HOME Program regulations, the City must reserve a minimum of fifteen (15) percent of each fiscal year's HOME allocation for a CHDO set-aside for investment in housing to be developed, sponsored or owned by a designated CHDO; and WHEREAS, on July 30,2003, the City Commission approved Resolution No. 2003- 25304, which adopted the City of Miami Beach Five-YearConsolidated Plan for Federal Funds, and the City of Miami Beach One-Year Action Plan for Federal Funds, Fiscal Year (FY) 2003/2004, which allocated $800,000 HOME Investment Partnerships (HOME) Program CHDO funds to MBCDC, of which $595,000 remains available for MBCDC to commit to a project; and WHEREAS, the City has $505,000 FY 2003/04 HOME Program funds available to commit to a project; and WHEREAS, on December 3,2004, the City's Loan Review Committee reviewed and recommended that the City Commission approve and award HOME Program funds in the amount of $1,100,000 to MBCDC to assist in the acquisition of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, Florida; and WHEREAS, on December 8, 2004, the City Commission approved Resolution No. 2004-25757, awarding MBCDC $595,000 of FY 2003/04 HOME CHDO set-aside funds, and $505,000 FY 2003/04 HOME Program funds, for a total of $1,100,000 HOME Program funds, for the acquisition of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach. 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 hereby authorized to execute the attached HOME Investment Partnerships (HOME) Program Agreement with the Miami Beach Community Development Corporation (MBCDC), providing $595,000 FY03/04 HOME Program CHDO Set Aside funds, in addition to $505,000 FY03/04 HOME Program Income funds, for the rehabilitation of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eligible participants in accordance with the HOME Program requirements. PASSED AND ADOPTED THIS 8th DAY OF December ,2004 ~ P~duA- CITY CLERK ATTEST: T:\AGENDAI2004\DecOB04\ConsentWilla Marta HOME-Resolution.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION \ '1...- 1',..-0'1 ~ CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A resolution authorizing the City to enter into a HOME Investment Partnerships Agreement with the Miami Beach Community Development Corporation (MBCDC) to provide $595,000 of FY 03/04 HOME Program Set Aside funds and $505,000 from FY 03/04 HOME Program Income toward the cost of acquisition of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eli ible artici ants in accordance with the HOME Pro ram re uirements. Issue: Shall the City enter into a HOME Investment Partnerships Agreement with the Miami Beach Community Development Corporation (MBCDC) to provide $595,000 of FY 03/04 HOME Program Set Aside funds and $505,000 from FY 03/04 HOME Program Income toward the cost of acquisition of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eligible artici ants in accordance with the HOME Pro ram re uirements? Item Summary/Recommendation: During November 2004, MBCDC entered into a purchase agreement for the Villa Maria Apartments located at 2800 Collins Avenue, Miami Beach. Miami Beach Community Development Corporation (MBCDC) is requesting to utilize $595,000 FY03/04 HOME Program Community Housing Development Organization (CHDO) Set Aside funds in addition to $505,000 FY03/04 HOME Program Income funds to acquire the Villa Maria Apartments. The building is configured into 34 apartments of which five are one-bedroom units and 29 are efficiency units. The building is under a Project Based Section 8 contract with US.HUD and Miami Beach Housing Authority that will expire in the year 2012. The residents are all elderly; most of them have been living in this building for close to 20 years. The building is in need of major rehabilitation, and has received several code violation notices from the City. There are also structural problems that will need to be addressed. The total cost of repairing the building is estimated at $2,238,390. Residents will remain during the rehabilitation and no residents will be displaced. Adviso Board Recommendation: On December 3, 2004, the Loan Review Committee (LRC) reviewed and recommended approval by the City Commission for MBCDC to be awarded $595,000 of FY 03/04 HOME Program Set Aside funds and $505,000 from FY 03/04 HOME Program Income toward the cost of acquisition of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eligible artici ants in accordance with the HOME Pro ram re uirements. Financial Information: Source of Amount Account Approved Funds: 1 $595,000 151.5232 2 505,000 151.5232 HOME 3 Program 4 Finance Dept. Total $1,100,000 Ci Clerk's Office Le islative Trackin Vivian P. Guzman Si n-Offs: Department Director Assistant City Manager City Manager AGENDA ITEM DATE ~7T /l-K'~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission JorgeM.Gonzalez~ _.A~ City Manager L5>~L- ~ - f ~ ~ -7]' '- Date: December 8, 2004 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 HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC) PROVIDING $595,000 OF FISCAL YEAR 2003/04 HOME PROGRAM SET ASIDE FUNDS AND $505,000 FISCAL YEAR 2003/04 HOME PROGRAM INCOME FUNDS FOR THE ACQUISITION OF THE VILLA MARIA APARTMENTS, LOCATED AT 2800 COLLINS AVENUE, MIAMI BEACH, TO PROVIDE 34 RENTAL UNITS FOR INCOME-ELIGIBLE PARTICIPANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. ADMINISTRATION RECOMMENDATION Subject: Adopt the Resolution. ANALYSIS During November 2004, Miami Beach Community Development Corporation (MBCDC) entered into a purchase agreement for the Villa Maria Apartments located at 2800 Collins Avenue, Miami Beach. MBCDC has requested and the City is allocating $1.1 million for the purchase of said building. The funding is as follows: $595,000 FY03/04 HOME Program Community Housing Development Organization (CHDO) Set Aside funds in addition to $505,000 FY03/04 HOME Program Income funds to acquire the Villa Maria Apartments. MBCDC is the City's designated CHDO and these funds are earmarked specifically for them and assigned through the City's One Year Action Plan. The HOME Program Income fund is funding that becomes available once a HOME financed condominium, home or building is sold and the funds are recaptured by the City. The allocation of $505,000 in program income funding to the MBCDC project will leave a balance of approximately $200,000 in the HOME Program Income which is available to housing providers for other projects. Additional funding may become available as other HOME funded projects are sold. Additional financing will be used in the acquisition of the Villa Maria Apartments. MBCDC is securing the additional funding through the State and Miami-Dade County. The purchase price is $2,600,000. Page 2 of 2 Commission Memorandum December 8, 2004 The property consists of approximately 18,052 square feet. The building is configured into 34 apartments of which five are one-bedroom units and 29 are efficiency units. The building is under a Project Based Section 8 contract with U.S. HUD and Miami Beach Housing Authority that will expire in the year 2012. The residents are all elderly; most of them have been living in this building for close to 20 years. The building is in need of major rehabilitation, and has received several code violation notices from the City. There are also structural problems that will need to be addressed. An engineering report estimating rehabilitation costs at $2,238,390 which include rendering the building structurally sound has been prepared by Pistorino & Alam Consulting Engineers, Inc. Residents will remain during the rehabilitation and no residents will be displaced. On December 3, 2004, the Loan Review Committee reviewed and recommended approval by the City Commission for MBCDC to award HOME Program funds. 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 the Miami Beach Community Development Corporation (MBCDC) providing $595,000 FY03/04 HOME Program CHDO Set Aside funds in addition to $505,000 FY03/04 HOME Program Income funds for the rehabilitation of the Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach, to provide 34 rental units for income-eligible participants in accordance with the HOME Program requirements. ~tl~~~~". "'"'-"'"' --