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98-22688 RESO RESOLUTION NO. 98-22688 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A RELEASE AND SATISFACTION OF THE SUBSIDY AGREEMENT DATED JULY 25, 1988 AND THE AMENDMENT TO SUBSIDY AGREEMENT EXECUTED ON MARCH 29, 1995, BETWEEN THE CITY OF MIAMI BEACH AND HARRIET FOR, LTD., AND RESOLUTION TRUST CORPORATION, AS RECEIVER FOR INVESTORS FEDERAL SAVINGS AND LOAN ASSOCIATION, FOR THE HARRIET COURT ANNEX APARTMENTS LOCATED AT 1526 PENNSYLVANIA AVENUE. WHEREAS, on July 25, 1988, the City entered into a Subsidy Agreement (Agreement) with Harriet For, Ltd., a Florida Limited Partnership (Owner), and with Investors Federal Savings and Loan Association (Lender), for the Harriet Court Annex Apartments located at 1526 Pennsylvania Avenue, Miami Beach (Property); and WHEREAS, the Agreement provided that the City would deposit certain funds to make available an interest subsidy to encourage the rehabilitation of the Property, in return for which assistance the Owner agreed to offer a certain number of units at reduced rental rates for a period of years; and WHEREAS, Resolution Trust Corporation was subsequently appointed as Receiver for Lender, and WHEREAS, Owner and Lender have complied in all material respects with the terms and conditions of the Agreement, and the Amendment thereto, and the required term of years for reduced rental rates has now elapsed; and WHEREAS, the Administration requests that the attached Release and Satisfaction of Subsidy Agreement be 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 Commission hereby authorize the Mayor and City Clerk to execute the attached Release and Satisfaction of the Subsidy Agreement, dated July 25, 1988, and the Amendment to Subsidy Agreement, executed on March 29, 1995, between the City of Miami Beach and Harriet For, Ltd., and Resolution Trust Corporation, as Receiver for Investors Federal Savings and Loan Association, for the Harriet Court Annex Apartments Located at 1526 Pennsylvania Avenue, Miami Beach. APPROVED AND ADOPTED THIS 18th DAY OF MARCH, 1998. MA ~ISEN KASDIN ATTEST: \ ) .:,) \c J ~U, (\ 1l1A (V,d)A-/ ROBERT PARCHER, CITY CLERK f:ICHIRESOIHARCT ANX.RS8 APPROVED AS TO FORM & lANGUAGE & FOREXECU'nON 111cW- ~ This instrument prepared by: Raul Aguila, First Asst. City Atty. 1700 Convention Center Dr. Miami Beach, FL 33139 RELEASE AND SATISFACTION OF THE SUBSIDY AGREEMENT The CITY OF MIAMI BEACH releases HARRIET FOR, LTD., a Florida limited partnership, AND RESOLUTION TRUST CORPORATION, as receiver for INVESTORS FEDERAL SAVINGS AND LOAN ASSOCIATION, their successors and assigns from any and all obligations under the terms of the certain agreements captioned: "SUBSIDY AGREEMENT", dated the 25th day of July, 1988, and recorded on September 7,1988 in the Official Records of Dade County at O.R. 13813, Page 1609, and the unrecorded "AMENDMENT TO SUBSIDY AGREEMENT" executed on March 29, 1995, which instruments affect the following described real property: Lot 4, Block 60, of Lincoln Subdivision, according to the Plat thereof as recorded in Plat Book 9, Page 69, of the Public Records of Dade County, Florida, also described as the "Harriet Court Annex" Apartments at 1526 Pennsylvania Avenue. And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk of the Circuit Court, Dade County, Florida to cancel such instrument of record. IN WITNESS WHEREOF, this instrument has been executed on this.-:15" day of J}1t11{A 1998. By: CIXI BEACH Neisen . asdln, Mayor 1700 Convention Center Drive Miami Beach, FL 33139 ATTEST: ~z5kl<r f. r t\A-( Lv- Robert E. Parcher, City Clerk APPROVED AS TO FORM & lANGUAGE & FOR execunoN STATE OF FLORIDA ) ) SS COUNTY OF MIAMI-DADE) ~ (\ . ''l 1!-t4) u/j~ City Attorney ~.A~ -'Y~ ~ Date I hereby certify that on this day before me, an officer duly qualified to take acknowledgements, personally appeared NEISEN O. KASDIN, Mayor of the City of Miami Beach, who is personally known to me, and did not take an oath. Witness my hand and official seal this;?'S- day of f},1o/] C"'-. ,1998,' /-- Ud JC." /I ?t/1 ~ OTARY PUBLIC, State of Flori Commission NO My Commission Expires: ." ,. .. l ""~~;';';,,'" . LISA B. MARTINEZ ~~'Y"i\"} Iii ~OM~FSSI(1": if CC 4-39417 ~~::...;'" Ufii'IE,~ ir:ti'J1.'iifJ, 1999 ._ I '~~~"'(l';" ,<"." tHxhjcn Thru No:;.I~Y Pu. bl~C Underwtit~ I.i.:,'_">',.. _,_~ . .' _ _m"'_'_'_'_ _._ CH\RESO\HARCT ANX.RL8 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM NO. J t) 8 --98 TO: Mayor Neisen O. Kasdin and Members of the City Co i ion DATE: March 18,1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUT N THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI EACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A RELEASE AND SATISFACTION OF THE SUBSIDY AGREEMENT DATED JULY 25, 1988 AND THE AMENDMENT TO SUBSIDY AGREEMENT EXECUTED ON MARCH 29,1995, BETWEEN THE CITY OF MIAMI BEACH AND HARRIET FOR, LTD., AND RESOLUTION TRUST CORPORATION, AS RECEIVER FOR INVESTORS FEDERAL SAVINGS AND LOAN ASSOCIATION, FOR THE HARRIET COURT ANNEX APARTMENTS LOCATED AT 1526 PENNSYLVANIA AVENUE. ADMINISTRATION RECOMMENDATION Approve the Resolution. BACKGROUND The Harriet Court Annex Apartments, at 1526 Pennsylvania Avenue, containing 20 apartment units, has successfully participated in the City's Multi-family Housing Rehabilitation Program. The City executed a Subsidy Agreement with the owner, Harriet For, Ltd., a Florida limited partnership, on July 25, 1988. Investors Federal Savings and Loan Association served as the original General Partner; currently, Morada Ventures, Inc. is the General Partner. Under this Agreement, $120,714 of CDBG funds were provided for the rehabilitation of the building. The rehabilitation was completed in February 1989. The owner complied with the requirements of the Multi-family Housing Rehabilitation Program Guidelines, and made available at least fifty-one percent (51 %) of the apartment units, or 11 units, for rent at HUD-specified Fair Market Rents for a period of three (3) years after completion of the rehabilitation, through March 1992. In 1995, the Subsidy Agreement was amended to allow the balance in the subsidy escrow account at that time to be applied to debt service in order to permit the existing mortgage to be refinanced. In exchange for the acceleration of subsidy, the owner agreed to make available a set number of units at HUD-specified rental rates for an additional twenty-four (24) months. This obligation was fulfilled by the owner by April 1997. AGENDA ITEM DATE C7E .~- / E3-~ 8 COMMISSION MEMORANDUM PAGE 2 ANAL YSIS: The owner, Harriet For, Ltd., has now fully complied with the requirements of the Subsidy Agreement and the Amendment, therefore, they are requesting that a Release and Satisfaction of the Subsidy Agreement be issued by the City. The issuance of such Releases is standard practice under the Multi-family Housing Rehabilitation Program once the participant has complied with the requirements of the Program. A review of City records indicates that there are no City code enforcement liens outstanding, and no unpaid water bills on the property. Property taxes are reported paid through 1998. CONCLUSION: The Administration recommends that the Mayor and City Commission adopt the attached Resolution authorizing the Mayor and City Clerk to execute a Release and Satisfaction of the Subsidy Agreement dated July 25, 1988 and the Amendment to Subsidy Agreement executed on March 29, 1995, between the City of Miami Beach and Harriet For, Ltd., and Resolution Trust Corporation, as Receiver for Investors Federal Savings and Loan Association, for the Harriet Court Annex Apartments located at 1526 Pennsylvania Avenue. SR/HSM/~~AH F:IDDHP\$ALLICARLIRESOIHARCT ANX. M98