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Home My WebLink About2005-25864 Reso 2005-25864 RESOLUTION NO. 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 $298,218 OF HOME PROGRAM FUNDS FROM FISCAL YEAR 2003/04 FOR THE REHABILITATION OF THE WESTCHESTER APARTMENTS, LOCATED AT 516 15TH STREET, MIAMI BEACH, TO PROVIDE 24 RENTAL UNITS FOR INCOME-ELIGIBLE PARTICIPANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; FURTHER, APPROVING A ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT FROM MBCDC TO MBCDC: WESTCHESTER APARTMENTS, LLC, A NOT -FOR-PROFIT ENTITY CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE WESTCHESTER APARTMENTS PROPERTY, LOCATED AT 516 15TH STREET, AND UNDER THIS AGREEMENT. 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 Miami Beach Community Development Corporation (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 18, 2001, the City Commission approved Resolution No. 2001- 24517, which adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year 2001/2002 allocating $800,000 HOME Investment Partnerships (HOME) Program funds to Miami Beach Community Development Corporation (MBCDC), of which $207,473 remains available for MBCDC to commit to a project; and WHEREAS, on July 31,2002, the City Commission approved Resolution No. 2002- 24948, which adopted the City of Miami Beach One-Year Action Plan for Federal Funds Fiscal Year 2002/2003, which allocated $800,000 HOME Program funds to MBCDC; and WHEREAS, on July 2, 2003, the City Commission approved Resolution No. 2003- 25259, which approved MBCDC's request to utilize $1,007,473 ofthe previously allocated Fiscal Year 2001/2002 and Fiscal Year 2002/2003 CHDO funds for a CHDO project to acquire and rehabilitate the apartment building, known as the Westchester Apartments, located at 516 15th Street, Miami Beach; and WHEREAS, on October 22, 2004, the Loan Review Committee reviewed and recommended approval by the City Commission to award MBCDC $298,218 HOME Program funds to rehabilitate the Westchester Apartments from FY 03/04; and WHEREAS, MBCDC has created a not-for-profit entity which has assumed all interest and title to the Westchester Apartments property a successor in interest to MBCDC; and WHEREAS, accordingly, the Administration would recommend that the Mayor and City Commission hereby approve the attached HOME Program Agreement with MBCDC, in the amount of $298,218, for the rehabilitation of the Westchester Apartments property; and WHEREAS, the Administration would further recommend that the City Commission hereby consent to a one time only assignment of the Agreement form MBCDC to MBCDC: Westchester Apartments, LLC, 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 $298,218 of HOME Program funds from Fiscal Year 2003/04 for the rehabilitation of the Westchester Apartments, located at 516 15th Street, Miami Beach, to provide 24 rental units for income-eligible participants in accordance with the HOME Program requirements; further, approving a one-time only assignment of the Agreement from MBCDC to MBCDC: Westchester Apartments, LLC, a not-for-profit entity created by MBCDC as a successor in interest in title to the Westchester Apartments property, located at 516 15th Street. PASSED AND ADOPTED THIS 20th DAY OF April ,2005 ~~~~ APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ATTEST: CITY CLERK Robert Parcher F:INEIGIHSG-CD\HOMEIWestchester AptslCommissionl298 NOFA Westchester Apartments_Resolution.doc A A. JAlfJ" DI "- !1../~c6 - ~ D8l8 CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m """'!!iiiiiF 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 $298,218 HOME Program funds from FY 03/04 toward the cost of rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24 rental units for income-eligible participants in accordance with the HOME Program reauirements. Issue: Shall the City enter into a HOME Program Agreement which provides $298,218 HOME Program funds from FY 03/04 toward the cost of acquisition and rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24 rental units for income-eligible participants in accordance with the HOME ProQram reauirements? Item Summa IRecommendation: On May 20,2004, MBCDC responded to a NOFA by submitting a request to the City for $298,218 of HOME Program funds from FY 03/04 toward the cost of rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24 rental units for income-eligible participants in accordance with the HOME Pro ram re uirements. Adviso Board Recommendation: On October 22, 2004, the Loan Review Committee (LRC) reviewed and recommended approval by the City Commission for MBCDC to be awarded $298,218 of HOME Program funds from FY 03/04 toward the cost of rehabilitation of the Westchester Apartments, located at 516 15th Street to provide 24 rental units for income-eli ible artici ants in accordance with the HOME Pro ram re uirements. Financial Information: Source of Funds: HOME Program Finance Dept. Account $298,218 151.5232 $298,218 City Clerk's Office Legislative Tracking: I Vivian P. Guzman Si n-Offs: DepartmentDirector F:INEIGIHSG-GD\HOMEIWestchester AptslCommission\298 NO FA Westchester Apartments_Summary.doc City Manager AGENDA ITEM DATE C7I ".--' f.(-)()-()~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Date: April 20, 2005 Jorge M. Gonzalez ~ ~ City Manager () - 0 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 $298,218 OF HOME PROGRAM FUNDS FROM FISCAL YEAR 2003/04 FOR THE REHABILITATION OF THE WESTCHESTER APARTMENTS, LOCATED AT 516 15TH STREET, MIAMI BEACH, TO PROVIDE 24 RENTAL UNITS FOR INCOME-ELIGIBLE PARTICIPANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; FURTHER, APPROVING A ONE-TIME ONLY ASSIGNMENT OF THIS AGREEMENT TO MBCDC: WESTCHESTER APARTMENTS, LLC, A NOT -FOR-PROFIT ENTITY CREATED BY MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE PROPERTY LOCATED AT 516 15TH STREET, AND UNDER THIS AGREEMENT. ADMINISTRATION RECOMMENDATION From: Subject: Adopt the Resolution. ANALYSIS On August 4, 2003, MBCDC purchased the Westchester Apartments located at 516 15th Street, Miami Beach utilizing $1,007,473 HOME Program previously allocated to MBCDC to acquire and rehabilitate the Westchester Apartments ($207,473 from FY 01/02 and the $800,000 from FY 02/03). On May 20, 2004, the City of Miami Beach issued a HOME Program NOFA in the amount of the $298,218, for the acquisition and/or rehabilitation of multifamily building(s) for the purpose of providing affordable housing. MBCDC was the sole respondent to the NOFA and submitted a request to the City for the entire NOFA amount. In addition, MBCDC is receiving from Miami-Dade County funding in the amount of $800,000 and City of Miami Housing Opportunities for People With AIDS (HOPWA) Program funds in the amount of $296,491. MBCDC has applied for $175,000 in funding from the State of Florida Historical Preservation. Private financing is also being sought to facilitate this project. The total cost of project is estimated at $2,798,189. Page 2 of 2 Commission Memorandum April 20, 2005 The property contains a three-story Mediterranean revival structure built in 1926 consisting of approximately 10,420 square feet. The building currently is configured into 30 apartments of which six are one-bedroom units and 24 are efficiency units. The project architect, Arthur J. Marcus, proposes to reconfigure the existing 24 efficiency units to comply with the City's average square foot planning and zoning requirement for residential units. Therefore, the resulting reconfiguration will be approximately 12 one-bedroom apartment units and 12 efficiency units. The units will be rented to income-eligible participants qualifying under the HOME Program requirements. The proposed scope of work, based on a preliminary evaluation, included the following: reconstruction of the front porch with side wing walls and historic fac;ade renovation, repairs of spalled concrete, roof repairs and reconstruction of fire damaged roof area, new windows and doors, exterior paint, repair and replace deteriorated wood structural members, new non-load bearing construction with new mechanical, electrical, plumbing and fire sprinkler systems. The building is vacant and no tenants will be relocated. On October 22, 2004, the Loan Review Committee reviewed and recommended approval by the City Commission for MBCDC to award $298,218 HOME Program funds from FY 03/04. 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 $298,218 of HOME Program funds from fiscal year 2003/04 for the rehabilitation of the Westchester Apartments, located at 516 15th Street, Miami Beach, to provide 24 rental units for income-eligible participants in accordance with the HOME Program requirements; further, approving a one-time only assignment ofthis agreement to MBCDC: Westchester Apartments, LLC, a not-for-profit entity created by MBCDC as a successor in interest in title to the property located at 516 15th Street, and under this Agreement. Attachments JMGNPGITU/EJB F:\NEIGIHSG-CDlHOME\Westchester AptslComrrission1298 NOFA Westchester Apartments_Commission Memo.doc PROPOSED HOME PROJECT DESCRIPTION This building is located one block south of Lincoln Road, consisting of30 units which will be reconfigured into 24 units creating larger units than the existing ones. These units will be rented to low to moderate income persons, targeting those who work in the Lincoln Road area, in addition 6 units will be set a side for persons living with AIDS. The building is a three story structure consisting of 10,420 square feet which was damaged by fire and was closed by the City. MBCDC acquired this building on August 4,2002 and has completed architectural drawings, applied for and awaiting the building permit. It is anticipated that construction will begin in July 2005 and be completed by May 2006. MBCDC has completed the bidding process to select a contractor, in addition, MBCDC has on staff a Project Manager who is a graduate of Florida International University with a B.A. in architecture who will oversee the entire project. The project will contain 24 units configured into 12 one bedrooms and 12 studios. Each unit has a kitchen and one bathroom. The unit size averages 520 sq. ft. The proposed rehabilitation will include central air and internal repairs, such as cabinets, and appliances. Miami Dade County has contributed to this project $500,000 from their FY2003 Surtax Funds and $300,000 from their FY2004 Surtax Funds making a total of $800,000. All units will be HOME assisted. MBCDC has trained staff who will accept and certifY applicants to meet the required income guidelines. MBCDC has formed a Property Management entity which currently manages all our units, and this entity will manage this project. Work Write-up The Westchester Plaza Apartments (formerly Roxy Apartments), a contributing structure in the National Register Miami Beach Architectural District, was built in 1926 as a three-story, 3D-unit, Mediterranean Revival apartment building. The building was purchased by Miami Beach Community Development Corporation in 2003 after the roof and third-story were damaged in a fire that rendered the building uninhabitable. MBCDC rehabilitation of the Westchester will include the exterior rehabilitation of the original historic elements, such as the fa~ade, the complete ground level terrace with ornaments, the third-floor balconette with railing, the re-construction of arches on either side of the building, two new 5'0 finials to replicate the historic design of the roof and new exterior windows and doors. A significant aspect of the renovation includes the reduction from 30 to 24 units to meet current City of Miami Beach building codes. The complete interior rehabilitation includes new H/VAC systems, electrical and plumbing systems. Complete structural rehabilitation will also be part of the scope of work for this project. Project activities to date: acquisition is complete, primary financing allocation is in place, construction documents have been completed by architect Arthur Marcus and permiting is at its last stage only DERM sign off is missing, and the building is vacant. Construction is scheduled to start in July 2005. Contractors selection process has already started. These units will provide affordable housing to low-income residents of Miami Beach, six units are set aside for disabled persons living with AIDS. SIZE OF UNITS The building is currently configured with 30 units of 6 one bedrooms and 24 studios. MBCDC will be reducing the number of units to 24, consisting of 12 one bedrooms and 12 studios. The average unit size will be 528 sq ft. ~~ -:10 ~~ ~~I s:: ~ (') (') CD m (') Gl (') 0 Ul ~ ~ 0 (') a VI ....... ""'0 "':0 ~ 0 0 a z 0 $! 0 m (') (') I/O C 0 - !?:~ !!:~ !ll~ ::c z z 0 < z z Ul ::I: 0 m m z :; . ... ::;0 ~~ ~~ rr " Ul -I ;0 Ul Z Ul Q m c 0 -I ~~ 0:0 ~~ m -I $! z 0 :-I -I -I Z ~ Ui (') F $! ! - 0 o!- ~~ Z -I ::c Gl s:: ~ ::c =l 0 Q VI .. "'0 "'0 z c (') 0 c 0 z (') c.... "'.:X: ~l is:x: "ll m 0 "ll m C'i 6 -I . ... Gl (') -I ::c "ll (') -I m ;I!:O~ ;:!!~ 0 -I 0 0 z (') ::c -I < z $! z 0 ... - z ill m 0 6 ::c -I ~ 6 m 0 (') . lo>i1~ lo>~ (') ~ ~ ,... m - z ~ .... 0 ~ z Ul (') ,... z 0 (') (') m 0 ... ~o~ lo>li' "ll Ul -I "ll (;;:10 ~ m m m ~ 0 "ll Q ,... "ll ::c Z ,. .... --I '" :0 "'~ ,... Ul ::c ,... 0 s:: 0 ~ m 0 =-: - ~ ~ m Ul s:: Ul m z Ul "ll ::c . :=r. (') (') Z "ll 6 "ll :! ~ en !ii -I =l c z ::c m ~ ~ 6 z s:: -I Gl ~ 0 ::c 0 ~ Z Gl m ::;1 ... -l Z ... 0 I :1l ,... g -I ,... - ;>> Ul ... m ~ to -' . - :z ~t ,), f\ EO'S 0 -l .. ... 0 - c I (. EO'S 0 ... :a r - m EO'L ::! .. - - ~ EO'S . - - /0: EO'6 . - - EO'O~ ... ~ - - EO'~~ (. 'Bi= l--- EO'Z~ I-- v(n .. II - f-- V(rz 0 0 ... .. - I-- V(rE II - f-- V(rv ... .... - I-- V(rs - I-- VO'S - f-- VO'L - I-- VO'S - I-- vO'6 r- I-- vO'O~ VO'~~ VO'Z~ Iji SO'~ .. . [ft' SO'z . .. ('f SO'E L. 510'1>' ~j' SO'S SO'S SO'L SO'S 510'6 so'm SO'~~ SO'z~ SO'~ .. . SO'z = SO'E SO'1>' SO'S ~ SO'S 9. DEVELOPMENT BUDGET Form (Loan, Commitment Amount Grant, Equity) A. SOURCES OF FUNDING (Specifv source) See Note. City of Miami Bcach 1,0.0.7,473 Grant Commitment City of miami HOPW A 296.491 Grant Commitment Miami Dade county 500 + 300 80.0.,0.0.0 Loan 0% Commitment Bank Financing 221,0.07 Loan Commitment State of Florida Ilistorical 175,000 Grant Aplllied City of Miami Beach NOFA 298,218 Grant Applied I SLS: \ 111011111 of 'mollllt of SOli I'l't' 0 f 1f()\1 E hllld~ Ot h l'r "1111 d ~ Other rlllld~ Al Total Funds Available 2798189 Existin Land Other (explain in item 1 a.Detail) 1,007,473 192,527 Bank Re lacement Housin Assistance Mnvin J and Related Ex enscs Ct. Total Relocation Costs -0.- -0.- -0.- D. CONSTRUCTION/REHAB COST Off-Site (ex lain in item 10 Detail Rehabilitation of Existing Building(s) (list in item 10 Detai I) Recreational Amenities (list in Detail) Rehabilitation of Existing Common Areas 298,218 743,782 5,480. Buildin Contractor's Profit Buildin Contractor's Overhead Other (ex lain in Detail ,'__'CC!ntLng~T1.c)'(~xpl(fJ_n. in, Dct..!.il) 1>1. Total Construction Cost 298,218 IGO,O(!G __ 849,262 DEVELOPMENT BUDGET PAGE 2 Amount of HOME :Funds Amount of Other Funds Source of Othcr> Funds E. GENERAL IlEVELOPMENT COST A raisal 4,000 50,000 -0- 20,000 8,000 15,000 15,000 10000 5,000 12,000 6,000 20,000 3,020 10,000 3,000 20,689 10000 2,000 2,000 18,000 233,709 Architect's Fee-Su Consultant Fees Builder's Risk Insurance Environmental 1m act Fees (list in Detail) Ins ection Fees Insurance Title Insurance Utilit Connection Fee F. Financial Cost Construction Loan Interest Construction Loan Ori ,Fee 42,000 Other (ex lain in Detail) Fl. Total Financial Cost DEVELOPMENT BUDGET PAGE 3 Source of Othcr Funds L H. Other Development Costs Developers' Fees 175,000 Other (explain in Detail) HI. Total Other Development Costs 1,305,691 1,492,498 State, County, I. Total Project Cost (G + HI) HOPWA, Bank J. TOTAL PROJECT COSTS - ALL FUNDS (ROW I. Column 1 + Column 2) $2,798,189 Note: Specify in item 10, on the following page, the source of all funding anticipated to be used in the activity proposed. Indicate whether these funds are already committed, the source of the funds and the actual or anticipated terms (whether a loan or grant, if a loan the repayment terms). Add additional pages as necessary.