99-23416 RESO
. RESOLUTION NUMBER 99-23416
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
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
AGREEMENT BETWEEN THE CITY AND MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION, WHICH
PROVIDES SHIP PROGRAM FUNDS IN THE AMOUNT OF $488,208
FROM FISCAL YEAR 1998/1999 TO CONTINUE A
REHABILITATION COMPONENT FOR THE SCATTERED-SITE
HOME OWNERSHIP PROGRAM PROVIDING REHABILITATION,
DOWN PAYMENT ASSISTANCE, CLOSING COST ASSISTANCE
AND HOME OWNERSHIP COUNSELING, FOR UNITS
PURCHASED BY ELIGIBLE HOME BUYERS UNDER THE RULES
OF THE SHIP PROGRAM AND THE CITY'S LOCAL HOUSING
ASSISTANCE PLAN.
WHEREAS, the State of Florida enacted the William E. Sadowski Affordable Housing Act
(the Act) on July 7, 1992, allocating a portion of new and existing documentary stamp taxes on deeds
to local governments to stimulate the production of housing through the State Housing Initiatives
Partnership (SHIP) Program; and
WHEREAS, the Act requires that in order to qualify for funding, local governments develop
a Local Housing Assistance Plan outlining how the funds will be used; and
WHEREAS, on April 1, 1998, the Mayor and City Commission approved and adopted a
Local Housing Assistance Plan for fiscal years 1998/1999, 1999/2000, and 2000/2001 by Resolution
No. 98-22696, pursuant to the requirements of the Act and the SHIP Rule issued by the Florida
Housing Finance Corporation; and
WHEREAS, the City issued a Notice of Funding Availability (NOFA) on August 12, 1999,
pursuant to the City's approved Local Housing Assistance Plan; and
WHEREAS, the City's Loan Review Committee, at its November 22, 1999 meeting,
reviewed the proposal submitted in response to the NOF A to rehabilitate dwelling units to be
acquired by eligible partiCipants and recommended to the Mayor and City Commission the approval
of funding for the proposal submitted by Miami Beach Community Development Corporation
(MBCDC); and
WHEREAS, the Administration now requests that the attached State Housing Initiatives
Partnership (SHIP) Program Agreement be approved by the Mayor and City Commission and
executed by the Mayor and City Clerk.
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 authorized to execute the attached State Housing Initiatives Partnership (SHIP) Program
Agreement between the City and Miami Beach Community Development Corporation, which
provides SHIP Program funds in the amount of $488,208 from fiscal year 1998/1999 to continue a
rehabilitation component for the Scattered-Site Home Ownership Program providing rehabilitation,
down payment assistance, closing cost assistance and home ownership counseling, for units
purchased by eligible home buyers under the rules of the SHIP Program and the City's Local Housing
Assistance Plan.
Passed and adopted this 15th day of December
,1999.
1A
MAYOR
ATTEST:
t D (cL (J r:LUC__J \
,
CITY CLERK
F:\DDHP\$ALL\SC\SHIP\MBCDC99.RES
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\cLmiami-beach.f1.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. -9 o~-9~
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: December 15, 1999
Sergio Rodriguez
City Manager
A RESOL N OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED STATE HOUSING
INITIATIVES PARTNERSHIP (SHIP) PROGRAM AGREEMENT
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION, WHICH PROVIDES SHIP PROGRAM
FUNDS IN THE AMOUNT OF $488,208 FROM FISCAL YEAR 1998/1999 TO
CONTINUE A REHABILITATION COMPONENT FOR THE SCATTERED-
SITE HOME OWNERSHIP PROGRAM PROVIDING REHABILITATION,
DOWN PAYMENT ASSISTANCE, CLOSING COST ASSISTANCE AND
HOME OWNERSHIP COUNSELING, FOR UNITS PURCHASED BY
ELIGIBLE HOME BUYERS UNDER THE RULES OF THE SHIP
PROGRAM AND THE CITY'S LOCAL HOUSING ASSISTANCE PLAN.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
The State Housing Initiatives Partnership (SHIP) Program, administered through the Florida Housing
Finance Corporation, was established by the 1992 William E. Sadowski Affordable Housing Act to
stimulate the production of housing statewide. SHIP Program funds are derived from documentary
stamp levies on real estate transactions. Annually, the Florida Housing Finance Corporation
allocates SHIP Program funds among participating jurisdictions on a formula basis. The City has
participated in the SHIP Program since fiscal year 1995/1996.
The City has received and allocated $501,086 for fiscal year 1998/1999. In accordance with the
SHIP Program guidelines, a minimum of 75% of SHIP Program funds must be used for
rehabilitation, new construction, or emergency repairs. Concurrently, a minimum of 65% of the
SHIP funds must be used as part of homeowners hip activities. Ten (10) percent of each fiscal year
allocation and five (5) percent of program income are utilized for administrative costs associated
with the Program.
As required by the Florida Housing Finance Corporation, on April 1, 1998, the City adopted a new
AGENDA ITEM c.l D
DATE~4
COMMISSION MEMORANDUM
PAGE 2
Local Housing Assistance Plan for State fiscal years 1998/1999, 1999/2000, and 2000/2001. In
accordance with the City's Local Housing Assistance Plan, the City issued a Notice of Funding
Availability (NOFA) on August 1, 1999 for $488,208 of SHIP Program funds from fiscal year
1998/1999 and program income. The NOF A sought an experienced housing provider to utilize SHIP
Program funds for rehabilitation of scattered-site dwelling units to provide homeownership
opportunities for eligible home buyers. Responses to the NOF A were due on September 17, 1999.
The City received one (1) proposal. The Miami Beach Community Development Corporation
(MBCDC) applied for $488,208 and proposed to utilize the SHIP funds to continue the rehabilitation
component of its successful Scattered-Site Home Ownership Program. In accordance with the City's
Local Housing Assistance Plan, the SHIP Program funds will be used to provide rehabilitation, down
payment assistance and closing cost assistance to a minimum of 17 units in order to provide home
ownership opportunities to eligible home buyers including City employees. Concurrently, home
ownership counseling will be provided to 52 participants. The Scattered-Site Home Ownership
Program also utilizes funds leveraged by MBCDC from the Miami-Dade County's Documentary
Surtax Program and from the federal HOME Program for down payment assistance to participants
in the form of second and third mortgages.
In accordance with the terms of the NOFA, the Housing Staff reviewed the proposal and submitted
it to the Loan Review Committee (LRC). On November 22, 1999, the LRC reviewed the proposal
and recommended to the Mayor and City Commission that MBCDC be funded in the amount of
$488,208 from fiscal year 1998/1999. Since 1996, Miami Beach Community Development
Corporation (MBCDC) has successfully operated a rehabilitation component for their Scattered-Site
Home Ownership Program with funding from the City's SHIP Program. To date, MBCDC has
rehabilitated 43 condominium and utilized SHIP funds in a timely manner.
The Administration proposes to enter into a SHIP Program agreement with MBCDC. Under this
agreement, MBCDC will rehabilitate a minimum of 17 dwelling units to be made available to
eligible home buyers, including City employees, under the SHIP Program rules by June 30, 2001.
The Administration recommends that the Mayor and City Commission adopt this resolution,
authorizing the Mayor and City Clerk to execute the attached State Housing Initiatives Partnership
(SHIP) Program Agreement between the City and Miami Beach Community Development
Corporation, which provides SHIP Program funds in the amount of $488,208 from fiscal year
1998/1999 to continue a rehabilitation component for the Scattered-Site Home Ownership Program
providing rehabilitation, down payment assistance, closing cost assistance and home ownership
counseling, for units purchased by eligible home buyers under the rules of the SHIP Program and
the City's Local Housing Assistance Plan.
SR/c~Ahvl~K~
AGREEMENT
THIS AGREEMENT, entered into this ISt..day of borSlff)d1.~1999 by and between the CITY OF MIAMI
BEACH, a Florida municipal corporation, having its 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 its principal office
located at 1205 Drexel Avenue, Miami Beach, Florida (hereinafter referred to as MBCDC).
WITNESSETH:
WHEREAS, the City has determined the necessity for providing affordable housing in Miami
Beach through its Consolidated Plan, which was adopted by Resolution No. 95-21670, on July 26,
1995; and
WHEREAS,the City has been designated by the Florida Housing Finance Administration
as an eligible municipality for the receipt of funds as provided under the State Housing Initiatives
Partnership (SHI P) Program pursuant to Chapter 67-37 of the Florida Administrative Code (F.A. C.);
and
WHEREAS, the City has entered into an Agreement with the Florida Housing Finance
Corporation under the terms of the SHIP Program in order to expand the supply of decent, safe,
sanitary and affordable housing within the City, for income-eligible persons by making available
funds to rehabilitate dwelling units; and
WHEREAS, MBCDC has operated a "Scattered-Site" homebuyer program since 1990,
assisting low- and moderate-income individuals and families in the purchase of condominiums at
various locations throughout Miami Beach by providing down payment assistance and other forms
of aid to the prospective homebuyers.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
Terms shall be as defined in the State Housing Incentives Partnership (SHIP) Program, 67-37
F.A.C., and any amendments thereto. Any term defined in the SHIP Program Rule, not otherwise
defined in this Agreement, shall have the meaning set forth in said rule.
ARTICLE II
BUDGET AND SCOPE OF SERVICES
MBCDC will utilize the funds set forth in Exhibit "B", attached hereto and made a part hereof
by reference, for rehabilitation, down payment assistance, closing cost assistance, and home
ownership counseling for a Scattered-Site Home Ownership Program in accordance with the Scope
of Services in Exhibit "B", attached hereto and made a part hereof by reference.
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ARTICLE III
PROGRAM INCOME
MBCDC agrees that any program income generated from the use of the Funds under this
Agreement, or funds repaid for any reason, after making all debt repayments to the City, or other
lender, if any, is to be used to further other affordable housing activities.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE SHIP AND HOME
PROGRAMS
The parties hereto acknowledge that the funds provided hereunder are to be used in
conjunction with funds received through the HOME Program. Therefore some or all of the projects
assisted will be required to comply with the rules of both programs. The State of Florida has acted
to encourage the use of SHIP Program funds in coordination with HOME funds by suggesting that
in projects which use funding from both sources, generally the HOME rules will take precedence.
Alternatively, the rule which is more restrictive will apply.
MBCDC expressly agrees to the following terms and conditions in conformity with Chapter
67-37, F.A.C.:
(a) Affordability Period. The period of time SHIP assisted units must remain affordable is
in accordance with Chapter 67-37 F.A.C. as applicable, or the term of a HUD insured mortgage,
whichever period occurs later. The funds shall be repaid to the City in accordance with the
provisions of the HOME Program regulations 24 CFR Part 92.254, in the event the housing is
transferred or sold for any purpose other than settling the estate of one of the owners.
(b) Repayment of Funds; Transfer of Title. The funds (which definition shall include the
allocation of any additional funds that may be provided by the City in the future as a result of an
amendment or modification of this Agreement) shall be repaid in their entirety if the SHIP units are
transferred or sold to another owner except as specified herein. Concurrent with the closing on the
property rehabilitated hereunder, the owner shall execute a Restrictive Covenant incorporating the
terms of this section.
(c) Projects must provide safe, sanitary, and decent residential housing for low-income and
very low-income, and moderate-income persons (i.e., a person whose income is within specific
income levels set forth herein, as documented by U.S. HUD).
(d) Income Targeting. MBCDC shall ensure and maintain written documentation that
conclusively demonstrates that each project assisted in whole or in part with SHIP funds provides
benefit to very-low (families whose annual incomes that do not exceed 50 percent of the median
family income for the area) and low-income (families whose annual incomes do not exceed 80
percent of the median income for the area) and moderate income (families whose annual incomes
which do not exceed 120% of the area median income), as determined and published from time-to-
time by U.S. HUD.
(e) MBCDC affirms that it maintains a financial management system that conforms to the
financial accountability standards of Attachment F of OMB Circular A-110.
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(f) Records: MBCDC agrees to maintain all records sufficient to meet the requirements of
Chapter 67-37 F.A.C., including, but not limited to: program records, project records, and program
administration records. All records required herein shall be retained and made accessible for a
period of at least three (3) years after closing, as provided in Chapter 67-37, and Florida Statutes
Chapter 119.
(g) Property Standards. For the duration of this Agreement and any amendments hereto,
housing that is assisted with SHIP funds, at a minimum, must meet the Housing Quality Standards
of CFR Section 882.109. In addition, housing that is newly constructed or substantially rehabilitated
with SHIP funds must meet all applicable local codes, rehabilitation standards, ordinances, and
zoning ordinances.
(h) Maximum and Minimum Amount of SHIP Funds Per Unit. The minimum amount of SHIP
funds that can be invested is $1,000 per dwelling unit, and the maximum amount of SHIP subsidy
is limited to $30,259 per unit.
(I) Environmental Clearance. For each activity or project assisted hereunder, immediately
after a site is identified, MBCDC shall obtain the City's written environmental clearance statement
and hereby agrees to comply with any and all requirements as may be set forth in the Site
Environmental Clearance Statement.
U) Affirmative Marketing. The parties acknowledge that it is unlawful to discriminate on the
basis of race, creed, color, religion, age, sex, sexual orientation, marital status, familial status,
national origin or handicap. MBCDC agrees to adopt affirmative marketing procedures and
requirements, in writing, for SHIP-assisted housing as set forth in Chapter 67-37 F.A.C.
(k) Affordable housing: home ownership. Housing that is for purchase qualifies as
affordable housing only if the housing has an initial purchase price or, appraised value after
rehabilitation or repair, that does not exceed 90% of the median purchase price for existing single-
family housing for the Miami PMSA, currently $113,418, and subject to change from time-to-time,
as determined by the U.S. Department of the Treasury; is the principal residence of an owner whose
family qualifies as very low-, low- or moderate-income at the time of purchase; and is subject to
resale restrictions or recapture provisions established by the City for the required period of
affordability.
ARTICLE V
ELIGIBLE COSTS
MBCDC agrees that eligible costs for the projects under this Agreement are limited to those
eligible costs as outlined in Chapter 67-37.007 of the SHIP Program Rule. It is expressly agreed
by the parties that no funds obtained hereunder will be used to acquire, rehabilitate or otherwise
assist mobile homes.
ARTICLE VI
METHOD OF PAYMENT
(a) MBCDC shall be paid monthly for eligible costs expended, as permitted under the Scope of
Services in Exhibit B, based on actual costs expended, with supporting documentation provided for
3
expenses that are considered reasonable and necessary and approved by MBCDC's authorized
representative.
(b) Any payment due under the terms of this Agreement will be issued upon 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 and any amendments thereto.
(c) MBCDC agrees to provide evidence of appropriate licenses and insurance as required by
this Agreement for each location assisted hereunder, such evidence must be kept on file with the
City.
ARTICLE VII
SUBCONTRACTS
(a) The parties agree that the work or services covered by this Agreement, including but not
limited to rehabilitation work or services, may be subcontracted without the prior written approval of
the City. MBCDC agrees to obtain at least three bids for all rehabilitation work estimated to be in
excess of $500. Copies of all bids received shall be kept in the job file. A copy of the executed
contract must be forwarded to the City within ten (10) days after execution.
(b) MBCDC agrees to include in all contracts and subcontracts that the contractor or
subcontractor(s) shall hold the City harmless against all claims of any nature arising out of the
contractor's performance of work under the contract and this Agreement to the extent allowed by
law.
ARTICLE VIII
CONDITIONS OF SERVICE
As a condition of these services, MBCDC agrees to comply with the regulations of the SHIP
Program and any amendments thereto as stated in Chapter 67-37 F.A.C.
(a) Equal Opportunity: MBCDC agrees to abide by and be governed by the Equal Opportunity and
Fair Housing laws. No person in the United States shall on the grounds of race, color, national
origin, religion, disability or sex be excluded from participation in, or be denied the benefits of or be
subjected to discrimination under any program or activity funded in whole or in part with SHIP funds.
(b) Housing assisted with SHIP funds shall be subject to testing and abatement activities for lead-
based paint.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be deemed effective commencing with the execution of the fund
reservation agreement reserving the Funds. The City and MBCDC mutually agree that the Funds
are reserved for MBCDC for the designated time period as follows:
(a) Fiscal Year 1998/1999 funds in the amount of $450,977.50 plus $37,230.50 of accrued interest,
totaling: $488,208 is reserved through February 28, 2001. MBCDC shall have arranged for the
rehabilitation of a minimum of ten (10) dwellings prior to February 28, 2001 pursuant to this
4
agreement. If MBCDC is not in compliance with the schedule attached hereto, the City, in its sole
discretion, shall have the right to declare this agreement null and void with regard to the remaining
uncommitted funds, and the City shall take any and all actions it deems necessary to carry out the
commitments of the SHIP Housing Assistance Plan, including selecting another service provider for
all or part of the unspent funds.
ARTICLE X
TERMINATION
The City and MBCDC agree that this Agreement may be terminated by the parties in whole
or in part, for cause (as more specifically defined in herein) or for convenience, in accordance with
the provisions of Chapter 67-37, F.A.C. Written notification shall be submitted at least thirty (30)
days prior to the effective date of such termination, and shall include the reason for the termination
(if for cause), the effective date, and in the case of a partial termination, the actual portion to be
terminated. Notwithstanding the language set forth herein, the City's reasons for terminating the
Agreement for convenience, in whole or in part, shall not be arbitrary or capricious.
ARTICLE XI
AMENDMENTS
Any amendments, alterations, variations, modifications or waivers of any provisions to this
Agreement, including an increased allocation of Funds, will only be valid when they have been
reduced to writing and duly signed the both parties hereto. Any changes which do not substantially
change the Scope of Services or increase the total amount payable under this Agreement, shall be
valid only when reduced to writing and signed by the City Manager (or his designee) and MBCDC.
ARTICLE XII
CONFLICT OF INTEREST
(a) MBCDC shall comply with the standards contained within Chapter 67-37, F.A.C.
(b) MBCDC shall disclose any possible conflicts of interest or apparent improprieties of any party
that is covered by the above standards. MBCDC shall make such disclosure in writing to the City
immediately upon MBCDC's discovery of such possible conflict. The City will then render an opinion
which shall be binding on all parties.
(c) Related Parties. MBCDC shall report to the City the name, purpose, and any other relevant
information in connection with any related-party transaction. This includes, but is not limited to,
dealing with a for-profit subsidiary or affiliate organization, an organization with overlapping board
of directors, or an organization for which MBCDC is responsible for appointing members. MBCDC
shall report this information to the City upon forming the relationship or, if already formed, shall
report it immediately. Any supplemental information shall be reported in the City required Progress
Report.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
MBCDC shall indemnify and hold harmless the City from any and all claims, liabilities, losses,
and causes of action which may arise out of any act, omission, negligence or misconduct on the part
5
of MBCDC or its efforts, employees, agents and/or invitees. MBCDC shall pay all claims and losses
of any nature whatsoever in connection therewith and shall defend all suits in the name of the City,
when applicable, and shall pay all costs and judgements which may issue thereon.
MBCDC or the General Contractor(s) selected to conduct the rehabilitation work hereunder
shall provide a General Liability Insurance Policy with coverage for Bodily Injury and Property
Damage, in the amount of $1,000,000 per occurrence (The policy must include coverage for
contractual liability to cover the above indemnification); and the City of Miami Beach shall be named
as an additional insured followed by the statement: "The coverage is primary to all other coverage
carried by the City covering this specific agreement only." MBCDC or the General Contractor(s)
shall provide proof of Workers' Compensation Coverage meeting the statutory limits of the State of
Florida. MBCDC shall submit to the City an ORIGINAL Certificate of Insurance. All insurance
coverage shall be approved by the City's Risk Manager prior to the release of any Funds under this
Agreement.
Further, in the event evidence of such insurance is not forwarded to the City's Risk Manager
within thirty (30) days after the execution of this Agreement, this Agreement shall become null and
void, and the City shall have no obligation under the terms thereof unless a written extension of this
thirty (30) day requirement is secured from the Risk Manager.
ARTICLE XIV
REPORTS
(a) Progress Reports. MBCDC agrees to submit monthly progress reports to the City, describing
the status of each proposed project and achievement of the project objectives as provided in the
Scope of Services, (Exhibit B), attached hereto. The progress reports shall be submitted no later
than 10 days after the end of each month, and shall continue until such time as all Funds are
expended on specific projects.
(b) It will be the responsibility of MBCDC to notify the City in writing, of any action, law, or event,
that will impede or hinder the success of the projects and activities as provided in this Agreement.
After such notification the City will take whatever actions it deems appropriate to ensure the success
of the program.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as the City Administration and/or the
Florida Housing Finance Corporation (FHFC) may deem necessary, there shall be made available
to the City Administration and/or representatives of the FHFC to audit, examine and make audits
of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and
other data relating to all matters covered by this Agreement. If during the course of its monitoring,
the City determines that any payments made to MBCDC do not constitute an allowable expenditure,
the City will have the right to deduct/reduce those amounts from their related invoices. MBCDC
must maintain records necessary to document compliance with the provisions of this Agreement,
for at least three (3) years after the close of the fiscal year in which the funds reserved hereunder
are fully expended.
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ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS
MBCDC agrees to comply with all applicable Federal and State regulations as they may
apply to program administration. Additionally, MBCDC will comply with all State and local laws and
ordinances hereto applicable, specifically including the SHIP Program Rule.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) It is expressly understood and agreed by the parties hereto that monies contemplated by this
Agreement, to be used for compensation originated from grants under the SHIP Program and are
contingent upon approval of activities by the State of Florida.
(b) Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
(c) In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached document, the terms in this Agreement shall have precedence. In the
event of conflict between the terms of this Agreement and any terms or conditions contained in the
SHIP Program Rule, the terms of the SHIP Program Rule shall have precedence.
(d) No waiver or breach of any provision of this Agreement shall constitute a waiver of any
subsequent breach of the same or any other provision hereof, and no waiver shall be effective
unless made in writing.
ARTICLE XVIII
ACCESS TO RECORDS
MBCDC agrees to allow access during normal business hours to all financial and SHIP
Program records to authorized State or City representatives and agrees to provide such assistance
as may be necessary to facilitate the conduct of a financial or operational audit by any of these
representatives when deemed necessary to insure compliance with applicable accounting and
financial standards. MBCDC shall allow access during normal business hours to all other records,
forms, files, and documents which have been generated in performance of this Agreement, to those
personnel as may be designated by the City.
ARTICLE XIX
SEVERABILITY OF PROVISIONS
If any provision of this Agreement is held invalid, the remainder of this Agreement shall not
be affected thereby if such remainder would then continue to conform to the terms and requirements
of applicable law.
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ARTICLE XX
PROJECT PUBLICITY
MBCDC agrees that any news release or other type of publicity pertaining to the project as
stated herein must recognize the City as the recipient funded by the Florida Housing Finance
Corporation, under the State Housing Initiatives Partnership (SHIP) Program and administered by
the Community/Economic Development Department of the City of Miami Beach as the entity which
provided funds for the Project.
ARTICLE XXI
SUCCESSORS AND ASSIGNS
MBCDC agrees that this Agreement shall be binding upon the parties herein, their heirs,
executors, legal representatives, successors, and assigns.
ARTICLE XXII
INDEPENDENT CONTRACTOR
MBCDC and its employees and agents shall be deemed to be independent contractors and
not agents or employees of the City, and shall not attain any rights or benefits under the Civil
Service or Pension Ordinances of the City, or any rights generally afforded classified or unclassified
employees; further they shall not be deemed entitled to the Florida Workers' Compensation benefits
as an employee of the City.
ARTICLE XXIII
ASSIGNMENT
This Agreement may not be assigned or transferred by MBCDC without the prior written
consent of the City thereto. It shall be deemed a default of this Agreement in the event that MBCDC
does not strictly comply with the procedures established herein for obtaining City consent to
assignment or transfer as defined by this Article. In the event such consent is not obtained, in the
manner prescribed herein, the City shall be entitled to declare a default, cancel this Agreement, and
resort to its rights and remedies against MBCDC In the event MBCDC transfers an interest of more
than five (5%) percent ownership in its stock by pledge, sale, or otherwise; or if MBCDC makes an
assignment for the benefit of its creditors, or uses this Agreement as security or collateral for any
loan; or if MBCDC is involved in any bulk transfer of its business or assets, then in that event each
of the foregoing actions shall also be deemed an assignment of this Agreement and shall require
the City's prior written consent. A merger, dissolution, consolidation, conversion, liquidation or
appointment of a receiver for MBCDC, shall be deemed an assignment of this Agreement and will
require the prior written consent of the City thereto.
ARTICLE XXIV
EVENTS OF DEFAULT
The City may place MBCDC in default of this Agreement and may suspend or terminate this
Agreement in whole or in part for cause, as prescribed in Article X herein. "Cause" shall include the
following:
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(a) Failure to comply and/or perform in accordance with any of the terms and conditions of this
Agreement, or any State or local regulation;
(b) Submitting any required report to the City which is late, incorrect, or incomplete in any
material respect after notice and reasonable opportunity to cure, as set forth in subparagraph (h)
hereof, has been given by the City to MBCDC;
(c) Implementation of this Agreement, for any reason is rendered impossible or infeasible;
(d) Failure to respond in writing within thirty (30) days of notice of same from City to any
concerns raised by the City, including providing substantiating documentation when requested by
the City;
(e) Any evidence of fraud, waste or mismanagement as determined by the City's monitoring of
project(s) under this Agreement, or any violation of applicable SHIP Program Rules and regulations;
(f) MBCDC'S insolvency or bankruptcy;
(g) An assignment or transfer of this Agreement or any interest therein which does not comply
with the procedures set forth herein;
(h) If a default is not fully and satisfactorily cured within thirty (30) days of MBCDC's receipt of
a notice of default by the City, at the expiration of said thirty (30) day period (or such additional
period oftime as may be permitted by the City, in its sole discretion, as required to cure such default
in the event MBCDC is diligently pursuing curative efforts) this Agreement may, at the City's sole
option and discretion, be deemed automatically canceled and terminated, and the City fully
discharged from any and all liabilities, duties and terms arising out of, or accruing by virtue of this
Agreement.
ARTICLE XXV
ADDITIONAL REMEDIES
In the event of a default, the City shall additionally be entitled to bring any and all legal and/or
equitable actions which it deems to be in its best interest, in Miami-Dade County, Florida, in order
to enforce the City's rights and remedies against the defaulting party. The City shall be entitled to
recover all costs of such actions, including reasonable attorney's fees. To the extent allowed by law,
the defaulting party waives its right to jury trial and its right to bring permissive counterclaims against
the City in any such action.
ARTICLE XXVI
MAINTENANCE AND RETENTION OF RECORDS
MBCDC agrees that it will maintain all records required pursuant to Chapter 67-37, F.A.C.,
in an orderly fashion in a readily accessible, permanent and secure location, and that it will prepare
and submit all reports necessary to assist the City in meeting record keeping and reporting
requirements thereunder.
(a) Records shall be maintained for a period of three (3) years after the closeout of funds under
this Agreement except as provided herein (b), (c) and (d).
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(b) If any litigation, claim, negotiation, audit or other action has been started before the regular
expiration date, the records must be retained until completion of the action and resolution of all
issues which arise from it, or until the end of the regular period specified in paragraph (a), whichever
is later;
(c) Records regarding project requirements that apply for the duration of the period of
affordability, as well as the written agreement and inspection and monitoring reports must be
retained for three years AFTER the required period of affordability;
ARTICLE XXVII
LIMITATION OF LIABILITY
The City desires to enter into this Agreement only if in so doing the City can place a limit on
the City's liability for any cause of action for money damages due to an alleged breach by the City
of this Agreement, so that its liability for any such breach never exceeds the sum of the Funds
reserved hereunder, less any amount of the Funds actually paid to MBCDC by the City at the time
of the alleged breach. MBCDC hereby expresses its willingness to enter into this Agreement with
MBCDC's recovery from the City for any damage action for breach of contract to be limited to a
maximum amount of the Funds, less any amount, in whole or in part, of the Funds actually paid to
MBCDC by the City at the time of the alleged breach. Accordingly, and notwithstanding any other
term or condition of this Agreement, MBCDC hereby agrees that the City shall not be liable to
MBCDC for damages in an amount in excess of the Funds, less any amount, in whole or in part, of
the Funds actually paid to MBCDC by the City at the time of the alleged breach, for any action or
claim for breach of contract arising out of the performance or non-performance of any obligations
imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this
Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as
set forth in Florida Statutes, Section 768.28.
ARTICLE XXVIII
VENUE
This Agreement shall be enforceable in Miami-Dade County Florida, and if legal action is necessary
by either party with respect to the enforcement of any or all of the terms and conditions herein,
exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida.
ARTICLE XXIX
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies contemplated by this
Agreement to be used for the purposes described herein, originated from grants of State Housing
Incentives Partnership (SHIP) Program funds, and must be implemented with all of the applicable
rules and regulation of the Florida Housing Finance Corporation. It is expressly understood and
agreed that in the event of curtailment or non-production of said SHIP Program funds, that the
financial sources necessary to continue to pay MBCDC compensation hereunder will not be
available and that this Agreement will thereby terminate effective as of the time it is determined that
said funds are no longer available. In the event of such determination, MBCDC agrees that it will
not look to, nor seek to hold liable, the City or any individual member of the City Commission thereof,
personally for the performance of this Agreement and all parties hereto shall be released from
further liability each to the other under the terms of this Agreement.
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ARTICLE XXX
NOTICES
All notices shall be sent to the parties at the following addresses, with copies to the Office
of the City Attorney:
City:
Miguell Del Campillo, Housing Director
Community/Economic Development Department
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
with copies to:
Murray H. Dubbin, City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
MBCDC:
Roberto Datorre, Interim President
Miami Beach Community Development Corporation
1205 Drexel Avenue
Miami Beach, FL 33139
The above parties may change such addresses at any time upon giving the other party
written notification. All notices under this Agreement must be in writing and shall be deemed to be
served when delivered to the address of the addressee. All notices served by mail shall be
registered mail, return-receipt requested.
IN WITNESS WHEREOF, The parties hereto have caused this Agreement to be executed
by their duly authorized official(s), on the day and year first above written.
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
ATTEST:
~.~i*1\ '
Secretary
~~
Roberto Datorre, Interim President
CITY OF MIAMI BEACH
ATTEST:
e!ht<Y f CWLd\
1/11
City Clerk
/.?FROVED AS TO
~.;'!i2fA & LANGUAGE
i',' :''':/'):r> FV'"'CU-, rON
c,. , ,,~ r{ ,~C ...
Neisen O. Kasdin, Mayor
11
~~'- 1i?l-VJ1
EXHIBIT A
OTHER REQUIREMENTS
As the City of Miami Beach is providing this funding through state funds, combined with federal funds,
all parties agree to comply with the following statutes, regulations and executive orders, as amended,
as they apply. These requirements are incorporated herein by reference.
1. Freedom of Information and Privacy Acts
- Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974
(5 U.S.C. 552a)
2. Equal Opportunity
- Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1
- Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601)
- Executive Order 11063, as amended by Executive Order 12259
- Executive Orders 11246, 11265, 12138 and 12432
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170)
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)
- The Age Discrimination Act of 1975 (42 U.S.C. 6101)
- The Fair Housing Amendments Act of 1988
3. Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq)
- The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508)
- Environmental Review Procedures (24 CFR Part 58)
- National Historic Preservation Act of 1966
- National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection
Act of 1973
4. Lead Based Paint
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq)
- HUD Lead Based Paint Regulations (24 CFR Part 35)
5. Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M)
- U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos
Regulations (29 CFR 191.1101)
6. Handicapped Accessibility
- Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41)
7. Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended
- The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)
- Federal Labor Standards Provisions (29 CFR Part 5.5)
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND
LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
12
EXHIBIT B
Scope of Services
Services to be Provided:
MBCDC will provide: rehabilitation services, down payment assistance and/or closing cost assistance
to home buyers as part of its Scattered-Site Home Ownership Program for a minimum of 17 dwelling
units, in accordance with the attached Sources and Uses of Funds schedule. In addition, MBCDC will
provide home ownership counseling to a minimum of 52 families.
Expenditure Deadline:
MBCDC acknowledges and agrees that all funds provided under this agreement shall be expended,
documented and invoiced to the City for FY 1998/1999 funds prior to June 30, 2001 (see attached
Schedule of Expenditure).
Recapture of Funds:
Dwelling units that utilize SHIP funds which are sold to eligible home buyers shall be subject to subsidy
recapture provisions which are consistent with those already adopted by the City Local Housing
Assistance Plan, adopted April 1, 1998. It is the City's intent to allow the homeowner to realize the
equity from their home.
The period of time SHIP assisted units must remain affordable is in accordance with Chapter 67-37
F.A.C. as applicable, orthe term of a HUD insured mortgage, whichever period occurs later. When SHIP
funds provided hereunder are combined with HOME funds, the provisions of the HOME Program with
regard to the period of affordability will apply.
Payment:
Payments by the City to MBCDC shall include those eligible costs as follows:
Construction Costs, which may include:
Actual cost of rehabilitating housing, including: labor and materials necessary to meet the
requirements of the South Florida Building Code, the City of Miami Beach Building Codes, and
U.S. HUD Section 8 Housing Quality Standards.
Current or incipient code violations - improvements to correct violations or conditions which may
develop into hazardous conditions or code violations.
Good and readily maintainable condition - improvements necessary to put the property and
facilities in a condition which requires a minimal amount of maintenance, and when appropriate,
improvements to conserve energy.
General property improvements - improvements which are in addition to those required by
applicable codes and ordinances, but which are incidental to the repairs being done to remedy
code violations. These improvements may be considered appropriate, provided they are
economically practical and in the public interest.
Rehabilitation soft costs, which may include:
Architectural - reasonable fees paid for professional services in preparing work write-ups, cost
estimates, working drawings and specifications; for supervision, for cost certification; and for
other designated tasks.
13
Permit fees - those fees paid to the City's Building Services Division for permits necessary to
undertake the work outlined in the application.
Construction supervision costs, in an amount equal to 10% of the value of the rehabilitation and
.5% of the appraised value of the unit.
Down Payment Assistance
Closing Costs Assistance
Home Ownership Counseling, not to exceed two (2) percent of the SHIP Program funds allocation:
FY 1998/1999
$10,122
Required Documentation:
For each home buyer assisted with the funds provided hereunder, the following documentation is
required to be kept:
A copy of the letter of commitment/award to the SHIP recipient.
Completed application form, signed and dated, containing income and asset information, and household
characteristics, including age of head of household, family size, race, and special needs, if any. The
information must be kept in a form acceptable to the City. The combined household annual anticipated
gross income of an applicant must be verified and certified using procedures such as those established
by U.S. HUD or the Farmers Home Administration. Whichever method is used, annual gross anticipated
income must be used and the SHIP income limits cannot be exceeded.
Income verification forms for each adult in the household, dated within 120 days of the award date,
award letter to recipients should include the requirement to notify the City's SHIP Coordinator
immediately of any change in income, assets, or household size occurring between the award letter and
closing.
A signed affidavit of no income change must be completed, if the closing is more than 120 days after the
completion of the original income verification.
A copy of an appraisal, certified to the lender, dated within 90 days of the closing date, showing a value
at least equal to the selling price.
A copy of the purchase contract.
Letter of commitment or written agreement.
Loan closing statement.
Lien documentation including the required recapture provisions, executed by the purchaser, and
recorded in the public records.
A copy of the initial inspection report and work write-up, describing the specific activities to be included
in the rehabilitation, and the estimated cost.
Copies of bids or proposals from contractors. [At least three, if possible for all work in excess of $500
in value.]
A copy of the executed construction contract for the rehabilitation work. [copies of the contractor's
license, and proof of insurance should be included.]
14
Copies of initial, interim and final inspection reports.
Copies of all construction payment requests.
Copies of all partial and final releases of lien or lien waivers
Proof of final payment.
Copy of the certificate of completion or certificate of occupancy, as appropriate.
Summary reports of all meetings with the home buyer, contractor[s] and MBCDC staff.
All relevant correspondence.
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MBCDC99.AGR