Loading...
Home Program Agmt ($800,000) :JO() 1./- ~J 0 f./ I HOME PROGRAM AGREEMENT THIS AGREEMENT, entered into this )g1ft day of J"v ~ _, 200~ by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, ~ts principal office at 1700 Convention Center Drive, Miami Beach, Florida, (hereinafter referred to as the City), and the MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, a not-for-profit Florida corporation, with offices located at 945 Pennsylvania Avenue, Miami Beach, Florida (hereinafter referred to as MBCDC). WITNESSETH: WHEREAS, on February 18, 1992, the City was designated by the United States Department of Housing and Urban Development (HUD) as a participating jurisdiction for the receipt of funds as provided under the HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended (HOME Program); and WHEREAS, the City has entered into an agreement with HUD for the purpose of conducting an affordable housing program with federal financial assistance under the HOME Program; 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 commit a minimum of fifteen percent of each fiscal year's HOME allocation for a CHDO set-aside, for investment in housing to be developed, sponsored or owned by CHDOs; and WHEREAS, the City has determined the necessity for providing affordable housing in the City through the fiscal year 2004/2005 One-Year Action Plan for Federal funds, adopted by Resolution No. 2004-25641 on July 28, 2004; and WHEREAS, MBCDC warrants and represents that it possesses the legal authority to enter into this agreement, by way of a resolution, motion, or similar action that has been duly adopted or passed as an official act of the MBCDC governing body, authorizing the execution of this agreement, including all understandings and assurances contained herein, and authorizing the person identified as the official representative of MBCDC to act in connection with this agreement and to provide such additional information as may be required; and WHEREAS, it is acknowledged and agreed that funds to be granted to MBCDC derive from Federal funds appropriated to the City by HUD for the uses and purposes herein referred to and, accordingly, it is acknowledged and agreed that this Agreement is entered into in compliance by MBCDC with all applicable provisions of Federal, State and local laws, statutes, rules and regulations. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: ARTICLE I DEFINITIONS As used in this Agreement the terms listed below shall have the following meanings as defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92, October 1, 2002, and any amendments thereto: (a) HOME Program: HOME Investment Partnerships Program, Final Rule, 24 CFR Part 92, as amended; (b) HUD: United States Department of Housing and Urban Development or any successor agency; (b) CHDO: Community Housing Development Organization as defined in the HOME Program; (d) Funds: HOME Program funds. Any term not otherwise defined in this Agreement shall have the meaning set forth in the HOME Program. ARTICLE II ALLOCATION OF HOME FUNDS In consideration for the performance by MBCDC of its role and responsibilities set forth in this Agreement, the City will provide Eight Hundred Thousand dollars ($800,000) (Funds), from its Fiscal Year 2004/2005 HOME Program allocation to MBCDC, to be used for eligible expenses relative to CHDO projects in accordance with the Scope of Services (Exhibit A) attached hereto. The funds will be used for projects to be developed, sponsored or owned by MBCDC in its capacity as the City's designated Community Housing Development Organization (CHDO) under the HOME Program. ARTICLE III HOME CHDO OPERATING AGREEMENT That certain HOME Program CHDO Operating Agreement, dated Jb. LY J.. 8 , 200 tf between the City and MBCDC is incorporated herein by reference. ARTICLE IV SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM MBCDC expressly agrees to the following terms and conditions in conformity with the HOME Program: (a) It will execute project agreement(s) with the City in order to commit the Funds to specific eligible CHDO projects. The City, at its sole discretion, may require commitment of the Funds within a time period that is in the best interest of the City in order to avoid recapture of the Funds by HUD. (b) It will maintain a financial management system that conforms to the financial accountability standards of 24 CFR 84.21, "Standards for Financial Management Systems." (c) The Funds must be provided to MBCDC, its subsidiary or a partnership of which it or its subsidiary is the managing general partner. If MBCDC owns a project in partnership, it or its wholly owned for-profit or non-profit subsidiary must be the managing general partner. In acting in any of the capacities specified, MBCDC must have effective project control. (d) Up to 10% of the Funds reserved herein may be used for project-specific assistance in accordance with 24 CFR ~ 92.301 and the Scope of Services (Exhibit A). Project-specific assistance provided to MBCDC shall be repayable from construction loan proceeds or other project income, except if there are impediments to project development reasonably beyond the control of MBCDC. ARTICLE V METHOD OF PAYMENT (a) MBCDC shall be paid for eligible costs permitted under the Scope of Services (Exhibit A), based on anticipated or actual costs, with supportive documentation for expenses that are considered reasonable and necessary and approved by MBCDC's authorized representative. (b) Any payment due under the terms of this Agreement may be withheld pending the receipt and approval by the City of all reports and documents which MBCDC is required to submit to the City pursuant to the terms of this agreement or any amendments thereto. (c) MBCDC understands and agrees that disbursement of Funds under this Agreement are only to be requested when the Funds are needed for payment of eligible activities, in accordance with 24 CFR ~92.301. (d) The City desires to enter into this Agreement only if in so doing it can retain the right of approval over the disbursement of the Funds for the individual real estate transactions contemplated herein. MBCDC shall be required to submit all necessary documentation relative to the aforestated transactions to the City's Neighborhood Services Department for review at a minimum of forty-five (45) days prior to the expected disbursement of HOME funds for the individual transactions. (e) The City shall be immediately notified, in writing, if a project or site transaction is terminated, whether voluntarily by MBCDC or otherwise. Except as provided in 24 CFR ~92.301 (a)(3) and (b)(3), a HOME Program assisted project that is terminated before completion is an ineligible activity and any HOME funds invested in the project must be repaid to the City in accordance with 24 CFR ~92.503(b). ARTICLE VII TERM OF AGREEMENT This Agreement shall become effective on October 1, 2004, and shall continue until September 30,2005. ARTICLE VIII NOTICES All notices shall be sent to the parties at the following addresses: City: Robert C. Middaugh, Assistant City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 MBCDC: Roberto Datorre, President Miami Beach Community Development Corporation 945 Pennsylvania Avenue Miami Beach, FL 33139 or such address and to the attention of such other person as the City or MBCDC may from time to time designated by written notice to the other. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officials on the day and date first above indicated. MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, a Florida not-for-profit corporation ATTEST: 2 /'~ ..-~.>/ ~- ~/ // ..::1/ ~ ... ./.'." . .- { /~;;70 / /. .d?~ Secretary L,. - AuthO~ Roberto Datorre. President Name, Title of Authorized Signatory CITY OF MIAMI BEACH a Florida Municipal corporation City Clerk ATTEST: ~t rOvl~ Au F:\NEIG\HSG-CDlHOMElCHDO\MBCDC\SeI-Aside\2004\MBCDC_2004 Set-Aside Agreementdoc David Dermer. Mayor Name, Title of Authorized S~RII()VED AS TO FORM & LANGUAGE & FOR EXECUTION 141~1.~a5 City Attoriley Date EXHIBIT A SCOPE OF SERVICES Miami Beach Community Development Corporation Scope of Services Term of Agreement Total funds in the amount of $800,000 are reserved as follows: Fiscal year 2003/2004 CHDO set-aside funds in the amount of $800,000 are reserved until September 30, 2004 for investment in HOME projects to be developed, sponsored or owned by MBCDC in its capacity as a CHDO. The Funds will be utilized by MBCDC in a manner consistent with the City's approved Action Plan for Federal Funds. Ten percent of the funds, $80,000, may be used for pre-development loans as summarized in the table below. Implementation Project-specific technical assistance and site control loans and project-specific seed money loans shall be available to MBCDC upon the review and approval of the City Manager or his designee of the proposed project(s). MBCDC shall assure that all earnest money deposits shall be refundable and subject to inspection and funding contingencies, which will provide the City and its Loan Review Committee time and opportunity to review each specific project site and transaction. Upon Loan Review Committee approval, a project agreement shall be prepared and forwarded to the Miami Beach City Commission for consideration. Use of Funds (1) HOME funds used for project-specific pre-development must be expended in accordance with 24 CFR 992.301. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 per HOME- assisted unit. The maximum amount of HOME funds that may be invested in a project involving rental housing or homeownership may not exceed the per-unit dollar limits established under section 221 (d)(3) of the National Housing Act that apply to the area in which the housing is located (Exhibit B), and which may be amended from time to time. (2) Before committing funds to a project, the City shall evaluate the project in accordance with adopted guidelines. The City shall not invest any more HOME funds, in combination with other governmental assistance, than is necessary to provide affordable housing. PROJECT SPECIFIC PRE-DEVELOPMENT LOANS Technical Assistance and Site Seed Money Loans Control Loans Purpose Establish preliminary feasibility of a Covers pre-construction cost for a specific project specific project Must have site control, preliminary Timing Used prior to gaining site control financial commitments and capable development team Limited to customary and reason- able costs of: *Initial feasibility study Pre-construction costs, including but not limited to: *Consulting fees *Cost of construction loan commitments Uses *Costs of preliminary financial appli- * Architectural plans and specifications cation *Costs of zoning approvals *Fees: architects, legal, engineers, *Costs of engineering studies development team * Site control expenses * Legal fees *Title clearance costs Form of Assistance Loan, amortizing or non-amortizing at Loan, amortizing or non-amortizing at discretion of the City discretion of the City Repaid from construction loan or Repaid from construction loan or other other project income. May be waived Repayment if there are impediments to project project income. May be waived if there development or if project is deemed are impediments to project development infeasible or if project is deemed infeasible. Environmental Environmental clearance is not Requires environmental clearance prior Clearance required prior to expenditure of funds. to commitment of funds. EXHIBIT B FY 2004 HOME PROGRAM MAXIMUM PER-UNIT SUBSIDY LIMITS Location OBR 1 BR 2BR 3BR 4BR Miami-Dade $84,075 $96,376 $117,192 $151,607 $166,417 County Source: Jacksonville Multifamily Housing Program Center Maximum Mortgage Limits for Elevator Construction under Section 221 (d)(3) Base City: Miami MBCDC_2004 Set-Aside Agreement.doc EXHIBIT A SCOPE OF SERVICES Miami Beach Community Development Corporation Scope of Services Term of Agreement Total funds in the amount of $800,000 are reserved as follows: Fiscal year 2003/2004 CHDO set-aside funds in the amount of $800,000 are reserved until September 30, 2004 for investment in HOME projects to be developed, sponsored or owned by MBCDC in its capacity as a CHDO. The Funds will be utilized by MBCDC in a manner consistent with the City's approved Action Plan for Federal Funds. Ten percent of the funds, $80,000, may be used for pre-development loans as summarized in the table below. Implementation Project-specific technical assistance and site control loans and project-specific seed money loans shall be available to MBCDC upon the review and approval of the City Manager or his designee of the proposed project(s). MBCDC shall assure that all earnest money deposits shall be refundable and subject to inspection and funding contingencies, which will provide the City and its Loan Review Committee time and opportunity to review each specific project site and transaction. Upon Loan Review Committee approval, a project agreement shall be prepared and forwarded to the Miami Beach City Commission for consideration. Use of Funds (1) HOME funds used for project-specific pre-development must be expended in accordance with 24 CFR 992.301. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 per HOME- assisted unit. The maximum amount of HOME funds that may be invested in a project involving rental housing or homeownership may not exceed the per-unit dollar limits established under section 221 (d)(3) of the National Housing Act that apply to the area in which the housing is located (Exhibit B), and which may be amended from time to time. (2) Before committing funds to a project, the City shall evaluate the project in accordance with adopted guidelines. The City shall not invest any more HOME funds, in combination with other governmental assistance, than is necessary to provide affordable housing. PROJECT SPECIFIC PRE-DEVELOPMENT LOANS Technical Assistance and Site Seed Money Loans Control Loans Purpose Establish preliminary feasibility of a Covers pre-construction cost for a specific project specific project Must have site control, preliminary Timing Used prior to gaining site control financial commitments and capable development team Limited to customary and reason- able costs of: *Initial feasibility study Pre-construction costs, including but not limited to: *Consulting fees * Cost of construction loan commitments Uses *Costs of preliminary financial appli- * Architectural plans and specifications cation *Costs of zoning approvals *Fees: architects, legal, engineers, *Costs of engineering studies development team *Site control expenses * Legal fees *Title clearance costs Form of Assistance Loan, amortizing or non-amortizing at Loan, amortizing or non-amortizing at discretion of the City discretion of the City Repaid from construction loan or Repaid from construction loan or other other project income. May be waived Repayment if there are impediments to project project income. May be waived if there development or if project is deemed are impediments to project development infeasible or if project is deemed infeasible. Environmental Environmental clearance is not Requires environmental clearance prior Clearance required prior to expenditure of funds. to commitment of funds. EXHIBIT B FY 2004 HOME PROGRAM MAXIMUM PER-UNIT SUBSIDY LIMITS Location OBR 1 BR 2BR 3BR 4BR Miami-Dade $84,075 $96,376 $117,192 $151,607 $166,417 County Source: Jacksonville Multifamily Housing Program Center Maximum Mortgage Limits for Elevator Construction under Section 221 (d)(3) Base City: Miami MBCDC_2004 Set-Aside Agreement.doc