HomeMy WebLinkAbout2005-25799 Reso Inc.
RESOLUTION NO. 2005-25799
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A FIRST AMENDMENT TO THE HOME
INVESTMENT PARTNERSHIPS (HOME) PROGRAM
AGREEMENT, DATED DECEMBER 8, 2004, BETWEEN THE
CITY OF MIAMI BEACH AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
PROVIDING $500,000 FROM THE $800,000 HOME CHDO
FUNDS PREVIOUSLY ALLOCATED TO MBCDC BY THE
CITY'S ONE YEAR ACTION PLAN FOR FY 2004/2005,
TOWARDS THE COST OF THE ACQUISITION AND
REHABILITATION OF THE VILLA MARIA, AN
APARTMENT BUILDING LOCATED AT 2800 COLLINS
AVENUE, MIAMI BEACH, TO PROVIDE AN ESTIMATED
THIRTY FOUR (34) RENTAL UNITS FOR INCOME-
ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH
THE HOME PROGRAM REQUIREMENTS.
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 (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 Miami Beach Community Development Corporation (MBCDC) as a qualified
Community Housing Development Organization (CHDO) under the HOME Program; and
WHEREAS, the City has determined the necessity for providing affordable housing in the
City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1, 1998, and its
One-Year Action Plan for Federal Funds for Fiscal Year 2004/2005, adopted by Resolution No.
2003-25304 on July 30, 2003, as amended; and
WHEREAS, the City's One Year Action Plan for Federal Funds for FY 200412005 allocated
to MBCDC $800,000 from the City's Fiscal Year 200412005 HOME Program allocation for eligible
CHDO projects; and
WHEREAS, on December 8, 2004, the City adopted Resolution No. 2004-25757,
authorizing a HOME Program Agreement between the City and MBCDC to provide $1,100,000 of
HOME Program funds for the acquisition and rehabilitation of an apartment building located at 2800
Collins Avenue, Miami Beach; and
WHEREAS, MBCDC has submitted a request to the City to utilize $500,000 of their
previously allocated Fiscal Year 2004/2005 HOME CHDO funds towards the acquisition and
rehabilitation costs ofthe building located at 2800 Collins Avenue; and
WHEREAS, the City's Loan Review Committee, at its December 3, 2004 meeting,
recommended that the Mayor and City Commission approve a request from MBCDC for the
utilization of$500,000 from their 2004/2005 HOME CHDO allocation towards the acquisition and
rehabilitation of an apartment building located at 2800 Collins Avenue, to provide an estimated thirty
four (34) rental units for income-eligible elderly tenants.
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 a First Amendment to the HOME Investment Partnerships (HOME)
Program Agreement, dated December 8, 2004, between the City of Miami Beach and Miami Beach
Community Development Corporation (MBCDC); providing $500,000 from the $800,000 HOME
CHDO funds previously allocated to MBCDC by the City's One Year Action Plan for FY
2004/2005, towards the cost ofthe acquisition and rehabilitation of an apartment building located at
2800 Collins Avenue, Miami Beach, to provide an estimated thirty four (34) rental units for income-
eligible elderly tenants in accordance with the HOME Program requirements.
PASSED AND ADOPTED THIS
ATTEST:
~r PCU~
CITY CLERK '
T:IAGENDA \2005\Feb0205IConsent\MBCDC-Reso 1st ammend.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~~2/t/~~
City AUom (f Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A resolution providing $500,000 funds from the HOME Program for FY 2004/2005 towards the cost of the
acquisition and rehabilitation of the apartment building located at 2800 Collins Avenue to provide 34 rental
units for income-eliqible elderlv tenants in accordance with the HOME Proqram reouirements.
Issue:
Shall the City of Miami Beach provide $500,000 in HOME Program funds from the HOME Program for FY
2004/2005 towards the cost of the acquisition and rehabilitation of the apartment building located at 2800
Collins Avenue to provide 34 rental units for income-eligible elderly tenants in accordance with the HOME
Proaram reauirements.
Item Summary/Recommendation:
On December 8, 2004, the City committed $1,100,000 of HOME Program funds from FY 2003/2004 to
MBCDC for the acquisition and rehabilitation of the Villa Maria, an apartment building located at 2800
Collins Avenue. MBCDC is now requesting $500,000 from the FY2004/2005 ($800,000) previously
committed to them for the development of affordable housing. The total amount of $1,600,000 will
complete the financing required for the acquisition of this apartment building, which will provide 34 units of
rental housing to income-eligible elderly tenants.
The $500,000 in CHDO funds could not be presented at the same time as the $1.1 million HOME allocation
in December 2004 as HUD had not released the 2004/05 HOME CHDO funding. Customarily, the
Administration will not move forward with an item requiring commission action until HUD has released the
required funding. Future funding will include $800,000 HOME CHDO allocation of the $800,000 set-aside
allocation from FY 2005-06.
Advisory Board Recommendation:
On December 3'0,2004, the City's Loan Review Committee recommended funding for an application from
MBCDC for the requested $1,600,000 to be utilized towards the acquisition of the apartment building
located at 2800 Collins Avenue.
Financial Information:
HOME
Program
Finance Dept.
$500,000
Source of
Funds:
City Clerk's Office Legislative Tracking:
I Vivian P. Guzman
AGENDA ITEM
C7B
:2.-;'~O~
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
m
To:
From:
COMMISSION MEMORANDUM
Mayor David Dermer and
~:,:ffi ::::~ c,:::--
City Manager d u
Date: February 2, 2005
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT, DATED DECEMBER 8,
2004, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC) PROVIDING
$500,000 FROM THE $800,000 HOME CHDO FUNDS PREVIOUSLY
ALLOCATED TO MBCDC BY THE CITY'S ONE YEAR ACTION PLAN FOR FY
2004/2005, TOWARDS THE COST OF THE ACQUISITION AND
REHABILITATION OF THE VILLA MARIA, AN APARTMENT BUILDING
LOCATED AT 2800 COLLINS AVENUE, MIAMI BEACH, TO PROVIDE AN
ESTIMATED THIRTY FOUR (34) RENTAL UNITS FOR INCOME-ELIGIBLE
ELDERLY TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS.
ADMINISTRATION RECOMMENDATION
Subject:
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 (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. The HOME Program requires the City,
in its capacity as a participating jurisdiction, to set aside a minimum of 15 percent of its annual
allocation for a particular type of not-for-profit organization called a Community Housing
Development Organization (CHDO). The CHDO is required to use these funds for housing
development activities in which the CHDO is the owner, sponsor or developer of the housing.
The Miami Beach Community Development Corporation (MBCDC) was designated as a
CHDO in 1993.
On December 8, the City Commission adopted Resolution No. 2004-25757 authorizing the
execution of a HOME Program Agreement with MBCDC, providing $1,100,000 of HOME
Program funds for the acquisition and rehabilitation of an apartment building located at 2800
Collins Avenue, to provide thirty four (34) rental units for income-eligible elderly tenants in
accordance with the HOME Program requirements.
On July 30,2003, the City adopted the One-year Action Plan for federal funds for Fiscal Year
2004/2005. The Plan provided a HOME CHDO set-aside allocation in the amount of $800,000
of HOME Program funds to MBCDC for the acquisition and/or rehabilitation of multi-family
buildings or scattered sites units for the purpose of providing rental and/or home ownership
opportunities to income-eligible participants. Once MBCDC identifies an initiative and site to
utilize the allocated funds, a project and site specific HOME Agreement is entered into.
MBCDC has identified the property at 2800 Collins as their desired HOME project. 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 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. 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.
In accordance with the HOME Program requirements, MBCDC will provide these rental units
for income-eligible elderly tenants for a period of a minimum of 15 years after the rehabilitation
of the building is complete.
In accordance with the HOME Program regulations, on December 19, 2004, MBCDC
requested to utilize $500,000 from their HOME CHDO allocation of $800,000 from FY
2004/2005. The total MBCDC request of $1.6 million ($500,000 04/05 HOME CHDO funds
and $1,100,000 HOME program funds) from the City are to be used to purchase the building.
Authorization of the additional $500,000 of CHDO funds for the property purchase could not
be taken up by the Commission at the same time as the allocation of the $1,100,000 HOME
funds as HUD had not released the 2004/05 HOME CHDO funding. Customarily, the
Administration will not move forward with an item requiring commission action until HUD has
released the required funding. Given the timing of the $1.1 million HOME allocation in
December 2004, two separate commission actions were required.
Future funding will include $800,000 HOME CHDO allocation of the $800,000 set-aside
allocation from FY 2005-06 for the rehabilitation of the property. A project cost break down
from the MBCDC is attached which indicates rehabilitation expenses and the sources of
project funding.
On December 3, 2004, the Loan Review Committee recommended that the Mayor and City
Commission approve a request from MBCDC for the utilization of $500,000 from their HOME
CHDO set-aside allocation towards the acquisition and rehabilitation of the building located at
2800 Collins Avenue, Miami Beach.
The Administration recommends that the Mayor and City Commission authorize the execution
of a First Amendment to the HOME Investment Partnerships Program Agreement, dated
December 8,2004, between the City and MBCDC providing an additional $500,000 from the
$800,000 HOME CHDO funds previously allocated to MBCDC by the City's One Year Action
Plan for FY 04/05, towards the cost of the acquisition and rehabilitation of an apartment
building located at 2800 Collins Avenue, Miami Beach, to provide an estimated thirty four (34)
rental units for income-eligible elderly tenants in accordance with the HOME Program
requirements.
Attachments
JMG/RCMNPGITU
Building and Sustaining Community -- Unique, Vibrant. Diverse
January 26, 2005
Mr. Jorge Gonzalez, City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach FL 33139
Re: Villa Maria Apartments 2800 Collins Avenue, Miami Beach
Dear Jorge:
Enclosed please find a description of the proposed funding structure for the above project as
requested. This Sources and Uses statement shows that the City will be contributing 40010 of the
total cost, the balance leveraged by County, State and bank financing. We also intend to apply to
the Federal Home Loan bank of Atlanta for a grant as soon as they release their RFP. Any
additional funding received would be used to further decrease the City's contribution. I hope this
information will meet your requirements, and the request for the balance of funds to close will
make it to the February 2, Commission meeting so that we will be ready to close.
Thanks for your continued support for this project.
Sincerely,
~ ~
Roberto Datorre
President
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
945 Pennsylvania Ave. · Miami Beach, Florida 33139. Phone 305538-0090. Fax 305538-2863
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(luilding and Sustaining (oiflil,unity .. Unique'. v?V1nr\l;-f)ivf1rsEPM I: 31
December 7, 2004
Mr. Thomas Urriola
Department of Community Development
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Re: Appraisal- Villa Maria Apartments
Dear Thomas:
Enclosed please find the final appraisal for the above-mentioned property in the amount of $2,600,000.
This appraisal was completed by a state certified property appraisal, lB. Alhalde.
Please let me know if you have any questions regarding this matter.
Sincerely,
~:t:;
President
Encls.
MIAMI BEACH COMMUNITY DEVELOPMB,tr CORPORATION
945 Pennsylvania Ave. · Miami l3each, Florida 33139. Phone 305 538-0090. Fax 305538-2863
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J.B. ALHALE & ASSOCIATES, INC.' ';:rr.
REAL ESTATE APPRAISERS AND CONSU~f1t!~!S- 7 Pii I: 31
3475 SHERIDAN STREET, SUITE 313
HOLLYWOOD, FLORIDA 33021
JOZEF ALHALE, MAl
STATE CERTIFIED GENERAL APPRAISER
NO. RZ0001557
TEl.: (954) 981-7008
FAX: (954) 981-7068
E-Mail: Jbalhale@aol.com
December 6. 2004
Mr. Karl Kennedy
Housing Director
Miami Beach Community Development Corporation
945 Pennsylvania A venue .
Miami Beach, Florida 33139
SENT VIA
FACSIMILE
Re: 34-unit Villa Maria Apartments
2800 Collins Avenue, Miami Beach, Florida
Dear Mr. Kennedy:
Legal Description: Lots 1, 2, 6 and 7, Block 10, Miami Beach Improvement Company
Subdivision, as recorded in Plat Book 5, Page 7 of the Public Records of Miami-Dade County,
Florida
I have made a physical inspection of the subject site and existing improvements and reviewed
the contract of sale for $2,600,000 betwet:n Neighborhood Development Limited (selIer) and
Miami Beach Community Development Corporation, a Florida non-profit organization (buyer)
dated November 16, 2004, the income and operating expense statement, and performed market
analysis to provide an estimate of the Market Value of the Leased Fee Interest in the subject
property in its current "as is" condition in a continued rental apartment use for low-income
elderly tenants at restricted rents, as well as the contributory value of the unused buildable area
and development rights in the vacant western portion of the site, in a tax-exempt status, as of
November 29, 2004.
The subject property consists of a 22,500 SF comer site located at the northwest corner of 28th
Street and Collins A venue, improved with a 21,472 SF three-story CBS 34-unit rental apartment'
building, originally built in 1924_ The unit mix is comprised of twenty-nine efficiency units and
five one bedroom-onc bathroom units. The subject property is provided with a passenger
elevator, a coin-operated laundry room and a paved paTking lot with 23 parking spaces. Thc
22,500 SF site can be improved with up to 45,000 SF (22,500 SF site x 2.0 Floor Area Ratio
= 45,000 SF Buildable Area). Accordingly, the vacant western 10,000 SF portion of the site
can be theoretically developed with a 23,528 SF building. Based on a typical 15 % common area
factor and an average elderly rental unit size of 550 SI:, up to 36 apartment units can he added,
after a deduction of $15,000 per unit in impact fees.
rr-1'.:lc.. c.
Mr. Karl Kennedy
December 6, 2004
Page Two
Based on an analysis of vacant land sales in Miami Beach, the estimated market value per square
foot of buildable area was estimated to be $55/SF to $60/SF, resulting in a value range of
$1,294,040 (23,528 SF x $55/SF) to $1,411,680 (23,528 SF x $60), or a reconciled $1,350,000
for unused development rights, or an estimated contributory value of $810,000, after a
deduction for estimated impact fees in the amount of $540,000 ($15,OOO/unit x 36 units). Please
refer to the attached chart which summarizes our market analysis.
1 have utilized the Income Capitalization Approach to Value (indicating a market value estimate
oUl,775,000, after deducting a prcliminary cost of repairs/renovation in the amount of $12,500
per unit, plus 10% for contingency and reserves, or $467,500), plus $810,000 for the
contributory value of the western portion of the site, or $2,585,000. Plea.c;e refer to the attached
charts which summarize'our market analysis.
In addition, thc Sales Comparison Approach to Value indicated a market value estimate of
$1,805,000, after ded:u.cting a preliminary cost of repairs/renovation in the amount of $12,500
per unh, plus 10% for contingency and reserves, or $467,500; based on the reconciliation of
$2,275,000 via the Potential Gross Income Multiplier method; $2,255,000 via the Net Income
Multiplier method; and $2,280,000 via the sale price/unit method), plus $810,000 for the
contributory value of the western portion of the site, or $2,615,000. Please refer to the attached
charts which summarize our market analysis.
It is my estimate that the Market Value of the Leased Fee Interest in the subject property
in its current "as is" condition in a continued rental apartment use for low-income elderly
tenants at restricted rents, as well as the contributory value of the unused buildable area
and development rights in the vacant western portion of the site, in a tax-exempt status, as
of November 29,2004, was Two Million Six Hundred Thollsand Dollars ($2,600,000).
SincerV
/'
Iozef Alhale, MAl
State Certified General Appraiser
License No. RZ 0001557
04-11-13 I cnclOBllf'"
J_8. ALIlALE & ASSOCIATES, INC.
Re."l.1 Estate Appraisers nnd Consultant.
Mr. Karl Kennedy
December 6. 2004
Page Three
CONTINGENT AND LIMITING CONDITIONS
We assume no responsibility for matters legal in nature, nor do we render any opinion as to the
title, which is assumed to be marketable. The property is appraised as though under responsible
ownership and management.
We are not qualified, nor are we responsible for matters which are structural and/or
engineering in nature, as they pertain to the subject improvements. The appraiser is
further not qualified to confirm or deny the specific structural integrity of the subject
improvements, nor to provide estimates of the cost for repair/remediation, if any adverse
conditions exist. If a formal assessment of the structural condition/integrity of the subject
improvements is required, we recommend that a duly qualified professional be engaged for
such purposes.
When applicable, the sketch in this report is included to assist the reader in visualizing the
property, and we assume no responsibility for its accuracy. We have made no survey of the
property. We are not required to give testimony or appear in court because of having made this
appraisal, with reference to the property in question, unless arrangements have been previously
made thereof. Additional professional valuation services rendered would require further
compensation under a separate contractual agreement.
Where applicable, the distribution of the total valuation in this report between land and
improvements applies only under the existing program of utilizations. The separate valuations
for land and building must not be used in conjunction with any other appraisal and are invalid
if so used.
We assume that there are no hidden or unapparent conditions of the property, subsoil or
structures which would render it more or less valuable. We assume no responsibility for such
conditions or for engineering which might be required to discover such factors.
Information, estimate~ and opinions furnished to us and contained in this report were obtained
from sources considered reliable and believed to be true and correct. However, no responsibility
for accuracy can be assumed by us.
Neither all nor any part of the contents of this report, or copy thereof, shall be used for any
purpose by any but the client without the previous written consent of the appraiser, and/or the
client; nor shall it be conveyed by any including the client to the public through advertising,
publications, news, sales or other media, without the written consent and approval of the author,
particularly the valuation conclusions, identity of the appraiser, or any reference TO any
professional society or institute or any initialed designation conferred upon the appraiser.
No one other than the undersigned prepared the analyses, conclusions and estimates concerning
the real estate set forth in this appraisal. .
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appmisers aud Consultants
Mr. Karl Kennedy
December 6, 2004
Page Four
CONTINGENT AND LIMITING CONDIDONS - Continued
This restricted summary appraisal cepon has been made in conformity with and i!\ subject to the
requirements of the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute, the Unifonn Standards of Profes!:ional Appraisal Practice adopted hy the
Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of
Florida for state certified real estate appraisers, as well as current Federal regulatory agency
criteria.
The restricted summary appraisal report can not be used in connection with a real estate
syndicate(s) or securities related activity(ies) and is invalid if so used without the previous
knowledge or written consent of the appraiser; Said activities include but would not be limited
to activities which are required to be registered with the United States Securities and Exchange
Commission or any state regulatory agency regulating investments made as a public offering,
as well as activities involving Real Estate Investment Trusts, Limited Partnerships, Mortgage
Backed Securities and any other transaction which is subject to the !:ecurities Exchange Act of
1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment
Advi!:ors Act of 1940 or State Blue Sky or securities laws or any amendments thereto.
The existence of hazardous materials, which mayor may not be present on the property, was
not observed. We have no knowledge of the existence of such materials on or in the property,
nor are we qualified to detect such substances. The presence of potentially hazardous materials
and/or substances may affect the value of the property. The value estimate reflected in this
appraisal report is predicated on the assumption that there is no such material on or in the
property that would cause a loss in value. No responsibility is assumed for any such conditions,
or for any expertise or engineering knowledge required to discover them. The client is urged
to retain an expert in this field, if desired.
The Americans with Disabilities Act ("ADA") became effeclive January 26, 1992. We have not
made a specific compliance surveqr and analysis of this property to determine whether Of not it
is in conformity with the various detailed requirements of the "ADA". It is possible that a
compliance' survey of the property, together with a detailed analysis of the requirements of the
"ADA" could reveal that the propeny is not in compliance with one or more of the requirement~
of the Act. Since we have no direct evidence relating to lhis issue, we did not consider possible
non-compliance with the requirement of "ADA" in estimating the value of the property.
J.B. AUf ALE & ASSOCIATt:S, mc.
Real Estate Appraisers and Consultants
...... ~. L..U,-"'
..........., ''-'" "--I- _.....- ,-''-'......, '-''-''-'
Mr. Karl Kennedy
December 6, 2004
Page Five
CERTIFICATION
The undersigned do hereby certify that. to the best of our knowledge and belief, except as
otherwise noted in the restricted summary appraisal report prepared for the exclusive use of the
Miami Beach Community Development Corporation:
The statements of fact contained in this report, upon which the analyses. opinions and
conclusions expressed herein are based, are true and correct.
The reported analyses, opinions and conclusions are. limited only by the reported
assumptions and limiting conditions and are our personal, unbiased professional analyses,
opinions and conclusions.
. We have no present or prospective interest in the property that is the subject of this report
and we have no personal interest or bias with respect to the parties involved.
The amount of our compensation is not contingent upon an action or event resulting from
the ailalyses, opinions, or conclusions in. or the use of, this report.
Our analyses, opinions and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of
Professional Appraisal Practice adopted hy the Appraisal Standards Board of the Appraisal
Foundation and the requirements of the State of Aorida for state certitied real estate
appraisers, as well as current Federal regulatory agency criteria.
The appraisal assignment has not been based on a required minimum valuation, a specific
valuation. or tile approval of a loan.
The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives, as well as the Aorida Real Estate Appraisal
Board.
As of the date of this report, lozef Alhale has completed the requirements of the
continuing education program of The Appraisal Instit~te.
The appraiser has persorutlly inspected the subject property which is described in this
report. .
No one other than the undersigned prepared the analyses, conclusions and opinions
concerning real estate that are set forth in this appraisal report, nor provided significant
professional assistance to the persons signing this report.
It is the opinion of the undersigned that the Market Value of the Leased Fce Interest in the
subject property in' its current "as is" condition in a continued rental apartment use for low-
income elderly tenants at restricted rents, as well as the contributory value of the unused
buildable area and development rights in the vacant western portion of the site, in a tax-exempt
status, as of November 29, 2004, was as described herein.
-----~
.'
Jozef Alhale, MAl
State Certified General Appraiser
License No. RZ 0001557
J.B. ALHALE & ASSOCIATES, L"IC.
Real Estate Appraisers aDd Consultants
VACANCY CTlON LOSS:
ANCILLARY INCOME (Laundry. elc.l:
NUMBER OF EFFICIENCY UNITS:
CONYRACT RENTIUNIT (11:
NUMBER OF 1 8All BATH UNITS,
CONTRACT RENTIUNIT 1'1
NUMBER OF UNITS:
GROSS BULDING AREA.:
ET UVING ARia ISF)'
CONTRACT GROSS RENTAL INCOME Ill:
3'
21,'72
15.150
$2D2.,882
fi.O%
2..0".1.
28
$488
5
$542
2800 COLUNS AVENUE, MIAMI BEACN. FLORIDA
RENTAl. LOW.INCOME ELOERLY HOUSING
STARlIl1J;D INcnu~ & ~PJ:'NS~ ANA' v~IS
ESTIMATED POTENTIAL GROSS INCOME
PolenDal GrosB R.enmf tnCOfTIG
Potential Ancillary Incomo
Total potendal Grouolnl;ome
Vacancy & Colleclion Lo!'9 %
LeBa: Vacallcy & Collection LOBS
Tol3l ~ffBcUve GrasslncQfM
EFFECTIVE o ROSS INCOME
OPERATING EXPENSES:
FilCed Expenses:
Real Ea:l.ate Tax68 (2l.
lnalra.nce
Tol3t ~.8d Expenee&
Op&raDng Expenses:
Management and lsasing
Common Area Elec.u1cltv
Water & Sewer
Wa8le Removal
Repall'8. Maintenance & Con~= Servlce8
Legal onc:l pro(esa.lonsl Fees
Mi5C6lilnBOU$
Total VElliable ElCpentl!l:!i
Total Fixed and Vilri..bkl C;:xpenB&8
iiS8SN8Il for R8ptil~ornet\l5
Total E.lpenro$
NET OP!;AATlNG INCOME
V.of
EGI
5.0%
100.0%
0.0%
!l.J.!l!.
9.1%
4.'"
0..%
.3')1.
2.0%
5.~%
0.9%
o~.
17.5%
26.6%
:IXlIo
31.5%
88.5'1.
Por Pet
5.E Uail
$13.30 $5.062
In.2Z Wll
$13.B5 $5.0~1
sua ~
$12.96 $5,777
$0.00 $0
1i..1lI Sill
$1.1' $525
$0.52 $231
SO.08 $35
So.56 $250
fO.2. $11B
$0.67 $300
SO.11 SSO
Sll.lllI S2.a
$2.26 $1.009
$3." $1.534
SllM ~
$4.08 $1,81'
$1.81 $3,"9
Year
.Jma
$202..02
~
$208,746
$.0%
1llU;ll
$196,.00
$196.'09
$0
U1..li:i!l
$17.B50
$7.BBO
51.200
$0.500
$4,~0
$10,200
$1,700
Sll5D.
S"'.31 0
562.180
19..U2
$11.800
$1"'.801
C.O.;'
CAPI'TAUZATIO,", RATE {NOVEMBER 200'1
PRELIMINARY COST OF NECESSARY REPAIRS AND
ESTIMATED RENOVATION BUDGET OF $12,500 PER UNIT
PLUS 10% CONTINGENCY AND RESERVES
ESTIMATED CONTRIBUTORY VALUE OF THE
UNUSED eUILDABLE AREA/DEVELOPMENT POTE;NTIAL (3)
ESTIMATED MARKET VALUE IN"A9 (S" CONDITION
IN A CONTINUED AFFORDABle RENTAL APARTMENT USE
UNDER A NON.PAOFIT TAX-EXEMPT OWNERSHIP, TAKING
INTO ACCOUNT TI4E UNUSED DEVELOPMENT POTENTII'L
O~ TI4E VACANT WESTERN PORTION OF THE SITE
ROUNDED
Round&d
Per Unit
Per SF (G 8AI
52,2.......
UiUall
$1,775,983
$1,778,000
$810,000
$2,S85,000
$7.,000
$120.31
(1)~ Ttl.ei subject 5.....unn BPBr1menl blli1ding is ,en Led lo low4lCOme eldeny at below.mcri:et ~lriet&d ren15.
(2): The sulljeCl34-unn apSl1ment bUilding will be rel\lecI \.0 low-1r\eome e1C1&rty at below-mcm.et rcwide:1l ren13.unClar
11\8 OWIlet8hlp of the non-ptDftt Mi:.mi De3c:h Community OS'I6lopmenl COIllOTilllnn. :;: bx-ontmpl non-prolll organtzaQon.
.
13); The 22.SOO SF !:Ubjecleile lelmprovedwllh 8 21,472 S~ 3.-:;lory rcnt;li ;ap;1rttll~nt bullalng. The total blUld<:lblc :!Ife3 j!; 46,000 SF, reeultlng
in an unused buildsble. area of 23,52& SF to be sitU:::ltr.d;g1 k weslorn 10.000 SF pardon of the aile, c:u,.,..,..lIy utilized as 3 pal1dna lot.
Baled on g typical 16% common araa allocation Elnd 8veraQ911nitstze of 550 SF, 36 unl14 can bB Dorsnaally added It tho wo:.:lt:nl vscanl
EJornon of the site.:dmr 3 dBduc:Uon at S 15,000 Der unit In pandrio Impact fee.. Se~ ostbched chart or land sale BT1il1lyses.
J.B. ALHALE & ASSOCIATES. INC.
Real Estate Appraisers and Consultants
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2800 COLLINS AVENUE
MIAMI BEACH, FLORIDA
ANNUAL RESERVES
C~mponE!nt
Total
Replacement
c.w
Estimated
Lif.a
Replacement
Eactor
Reserve
ffi:M.
HVAC
Roof Cover
Elevator
Painting (Units)
Paving
Painting (Exterior)
Appliances
$11,100
$25,100
$35,000
$11,050
$15.000
$7,600
$22.1 00
10
20
20
3
10
10
15
100%
100%
35%
100%
50%
100%
100%
$1.110
$1,255
$613
$3,683
$750
$760
h4I3.
$9,644
$9,640l
[, $284-~
TOTAL
PER UNIT
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
THE VILLA MARIA APARTMENTS
COLLINS AVE., MIAMI BEACH
PROJECT DESCRIPTION
The Villa Maria is a Mediterranean structure built in 1924, located at
2800 Collins Avenue in Miami Beach. The building consists of 18,000
square feet, configured into 5 one bedrooms and 29 studios, a total of 34
housing units. The property consists of 4 lots, with the building located
on two lots, and two lots vacant used for 34 parking spaces. The building
is also located in a prime location among upscale condominiums, one
block from the ocean.
The building is currently under a Project Based Section 8 contract with
US HUD and Miami Beach Housing Authority that will expire in year
2012. The residents are all elderly, most of them have been living in this
building for up to 20 years. Currently, the building is in need of major
rehabilitation, and has received several code violations notices from the
City. There are also structural problems that will need to be addressed.
In it's effort to preserve these units as affordable housing, MBCDC is
proposing the acquisition and rehabilitation of this property, using a
combination of City, County and State funds, together with Bank
financing to layer the necessary financing to achieve this goal. Initially,
MBCDC will close with city funding and seller financing for up to two
years, then pursue the various grant opportunities to obtain funds to take
out the seller financing. This project would be the largest project
physically and financially, that MBCDC has undertaken to date.
FIRST AMENDMENT TO HOME PROGRAM AGREEMENT
THIS SECOND AMENDMENT TO THE AGREEMENT, entered into this Ji!dayof ~,
200.s::: by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, having 'ts
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 954 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to as
Owner).
WITNESSETH:
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, as set forth in 24 CFR Part 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-Year Consolidated 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 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 acquire the Villa Maria Apartments, located at 2800 Collins Avenue, Miami
Beach Florida 33139; and
WHEREAS, on December 8, 2004, the City Commission approved Resolution No. 2004-
25757, awarding MBCDC $595,000 ofFY 2003/04 HOME CHDO set-aside funds, and $505,000 FY
2003/04 HOME Program funds, for a total of$l, 1 00,000 HOME funds, for the acquisition ofthe Villa
Maria Apartments, located at 2800 Collins Avenue, Miami Beach; and
WHEREAS, on February 2,2005, the City Commission approved Resolution No. 2005-25799,
awarding MBCDC $500,000 from FY 2004/05 HOME CHDO set-aside funds, for the acquisition ofthe
Villa Maria Apartments, located at 2800 Collins Avenue, Miami Beach
WHEREAS, the City and the Owner now wish to amend the Agreement.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
1. AR nCLE II, ALLOCA nON OF HOME FUNDS, page 2, the first paragraph is deleted in its
entirety and amended as follows:
In consideration of the performance by MBCDC of its role and responsibilities set forth in this
Agreement, the City agrees to provide a grant of HOME Program funds to MBCDC in the
amount of$595,000, ofFY 2003/04 HOME CHDO set-aside funds, and $505,000 FY 2003/04
HOME Program funds, and $500,000, ofFY 2004/05 HOME CHDO set-aside funds for a total
of$1,600,000 HOME Program funds (also referred to as the Funds).
2. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the revised
EXHIBIT B TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT, BUDGET,
reflecting the adjustments in the HOME Program funds from the City of Miami Beach.
3. 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.
4. 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:
/ibJ f. 'I/.u 4.L' /.t/"
Secretary ,
ATTEST:
r
OL~
City Clerk
L ~-'VtJ4~
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-for-profit corporation
rre, President, Authorized Signatory
IAMI BEACH
icipal corporation
Mayor
F:\NEIGIHSG-CDIHOMEIVilla MarialLegaI
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
. ~'.l...~
Date
EXHIBIT B
TO SECOND AMENDMENT TO HOME PROGRAM AGREEMENT
BUDGET
Villa Maria
2800 Collins Avenue
PROPOSED SOURCES AND USES:
SOURCES
CMB HOME CHDO Set-Aside 2003 $595,000.00
CMB HOME Program Income FY 2003/04 $505,000.00
CMB HOME CHDO Set-Aside 2004/05 $500,000.00
CMB HOME CHDO Set-Aside 2005 $620,055.00
(To be requested)
Miami Dade County HOME $500,000.00
Bank Financing $812,617.00
Miami-Dade County Surtax $1,500,000.00
State SAIL $800,000.00
Total $5,832,672.00
USES
Purchase Price 2,600,000.00
Rehabilitation Costs 2,238,390.00
Construction Contingency 0.00
Pre-Development Costs 994,282.00
Total 5,832,672.00