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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 en I- enZ WW en~ ::)li: 0<( Zo.. <(<( en<( W- uo:: 0::<( ::)~ 0:) en..J > .... 10 V C\I C\I 10 0 0 0 .... Ov It) I'- C') V CO C') 10 0 0 0 C') OC\l It) V CO C\I., ~- V 0 0 0 0 C') 01'- ~ en <ti 10 0) 10 I'- 0 10 10 0 CO O~ 0 l- I'- CO C\I I'- C\I 0) 0 0 0 0.... C\I V .... 0)" 10 10 .... 10 CO ~ Z C') C\I .... .... ::) 10 ~ C\I V V 10 .... V ~ 0 10 CO 0 0.. 10 V C\I 10 .... C') (t) c 0 O"C I 0 .... .... C') ~ - CD C 10 0 E 10... CO I- CO 0 o ::l ..., C') IL .... W CO W wg I C\I ~ QJ 10 0 ~ ~ CO C\I .... "C 0 e 10 en ~ I 0.. 0 O~ 0 I I 0:: Ig I I <( .r:. .r:. .r:. .r:..r:. 'C 0 0 I- 0 00 W CO CO CO CO CO C CD CD Z CD CD CD ::l ... ~ m m ::) m mm IL ... CD 0 0 m CD c.. 'E 'E 'E 'E 'E c.. I ~ ~ ... 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W C W U. ! / / / / / / C\I 101"- o I"-lOtO l/)ggg"-ON CI,) -OotO_OM (.)0 - -C\lC\lO ",ggg..-'<:tc.ci ::::s - co 10 co C\I EI) 0"- tJ) W C) ~ :5 ~ r:: ....J ~ ~ ~ I- W 0:: 0 ftS:J....JW W 'C en <( u. W 0 ftS>-en~I-~....J :E~~z:;>-~ ftS:J<{:J_l-o =ol-en8~t51- >u ~ 0:: ::> C/)?f!. ~LO ~N Z ::> o o ....J <( C/)~ w~ ~~ <( ~ C/) w .....~ <(0 ->('1) / - ~ / 0:: a.. ....J ~ W Ow w~~ U.Ooo ~I ..... Z ::> o o c .Q (; o Q. o U E o ~ CTH3 .; :~,>\ l~'::~:S DEPT. (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 I. ., I. II ,. I: " 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. 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N M "0_(3)___ ~"'~NN'" 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