2000-23843 RESO
RESOLUTION NO. 2000-23843
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 FOUR HUNDRED
THOUSAND DOLLARS ($400,000) OF PREVIOUSL Y
COMMITTED FISCAL YEAR 1999/2000 HOME PROGRAM
FUNDS FOR THE ACQUISITION AND REHABILITATION
OF THE SABRINA APARTMENTS, LOCATED AT 1551
PENNSYLVANIA AVENUE, MIAMI BEACH, TO PROVIDE
TWENTY (20) RENTAL UNITS FOR INCOME-ELIGIBLE
TENANTS IN ACCORDANCE WITH THE HOME PROGRAM
REQUIREMENTS; FURTHER, APPROVING A ONE-TIME
ONL Y ASSIGNMENT OF THIS AGREEMENT TO MBCDC:
SABRINA AP ARTMENTS, INC., A NOT -FOR-PROFIT
ENTITY TO BE CREATED BY MBCDC AS A SUCCESSOR IN
INTEREST IN TITLE TO THE SABRINA APARTMENTS,
AND UNDER THIS AGREEMENT.
WHEREAS, the City has established a HOME Investment Partnerships Program (HOME
Program) under the rules ofthe 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, 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 CHDOs; and
WHEREAS, on September 17, 1999, the City adopted Resolution No. 99-23286, authorizing
a HOME Program Agreement with MBCDC which reserved $600,000 from the City's HOME
Program allocation from fiscal year 1999/2000 for eligible CHDO projects; and
WHEREAS, MBCDC has submitted a request to the City to utilize $400,000 of the
previously allocated fiscal year 1999/2000 CHDO funds toward the acquisition and rehabilitation
cost of the Sabrina Apartments, located at 1551 Pennsylvania A venue, Miami Beach, for the
provision of20 rental units for income-eligible tenants under the rules of the HOME Program; and
WHEREAS, on March 2, 2000, the City's Loan Review Committee recommended that the
City Commission approve $400,000 of HOME Program funds for the acquisition and rehabilitation
of the Sabrina Apartments, located at 1551 Pennsylvania Avenue, Miami Beach, for the purpose of
providing rental housing for income-eligible individuals and families; and
WHEREAS, the Owner intends to create a not-for-profit entity which will assume all interest
and title to the Sabrina Apartments and be a successor in interest to MBCDC pursuant to this
Agreement; and
WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignment
of this Agreement to MBCDC: Sabrina Apartments, Inc.
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 Four
Hundred Thousand Dollars ($400,000) of previously committed fiscal year 1999/2000 HOME
program funds for the acquisition and rehabilitation of the Sabrina Apartments, located at 1551
Pennsylvania Avenue, Miami Beach, to provide twenty (20) rental units for income-eligible tenants
in accordance with the HOME Program requirements; further, approving a one-time only assignment
of this Agreement to MBCDC: Sabrina Apartments, Inc., a not-for-profit entity to be created by
MBCDC as a successor in interest in title to the Sabrina Apartments, and under this Agreement.
PASSED AND ADOPTED THIS 12th DAY OF April
, 2000
ATTEST:
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CITY CLERK
114
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. 2 ~ l -00
Mayor Neisen O. Kasdin and
Members of the City Commission
Lawrence A. Levy ~
City Manager
DATE: April 12, 2000
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE A TT ACHED HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAM AGREEMENT WITH THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
PROVIDING FOUR HUNDRED THOUSAND DOLLARS ($400,000) OF
PREVIOUSLY COMMITTED FISCAL YEAR 1999/2000 HOME PROGRAM
FUNDS FOR THE ACQUISITION AND REHABILITATION OF THE
SABRINAAP ARTMENTS, LOCATED AT 1551 PENNSYLVANIA AVENUE,
MIAMI BEACH, TO PROVIDE TWENTY (20) RENTAL UNITS FOR
INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS; FURTHER, APPROVING A ONE-TIME
ONL Y ASSIGNMENT OF THIS AGREEMENT TO MBCDC: SABRINA
APARTMENTS, INC., A NOT -FOR-PROFIT ENTITY TO BE CREATED BY
MBCDC AS A SUCCESSOR IN INTEREST IN TITLE TO THE SABRINA
APARTMENTS, AND UNDER THIS AGREEMENT.
ADMINISTRATION RECOMMENDATION
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 (U.S. HUD) since 1992 for the
purpose of expanding the supply of housing for persons meeting the income criteria of the HOME
Program. 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 either the
owner, sponsor or developer of the housing. The Miami Beach Community Development
Corporation (MBCDC) was designated as a CHDO in 1993.
F:\DDHP\$ALL\MIGUELL\ I ~51 COMM,MEM
AGENDA ITEM C. 1 F
DATE~
Commission Memorandum
April 12, 2000
MBCDC Sabrina Apartments Agreement
Page 2
On September 17, 1999, the City entered into a HOME Program agreement with MBCDC in the
amount of $600,000, which was approved by City Commission Resolution No. 99-23286. These
funds may be used for the acquisition and rehabilitation of affordable rental housing or other eligible
activities. Project site and transaction details are subject to review by the Loan Review Committee.
MBCDC has entered into a Contract for Sale and Purchase in the amount of $760,000 for a vacant
20 unit apartment building named Sabrina Apartments, located at 1551 Pennsylvania Avenue, Miami
Beach. The building is a two-story Art Deco building located within the Art Deco Historic District
of South Beach and was constructed in 1947. The apartments are located two blocks west of
Washington Avenue and one block south of Lincoln Road. The 20 one-bedroom apartments occupy
a total area of approximately 10,640 square feet. According to the report from the architects, Insight
Design, Inc., there are four units which contain 400 square feet. Each of the other 16 units have an
area of 491 square feet. All units meet or exceed the minimum City requirement of 400 square feet.
MBCDC is proposing to retain the 20 units. Since the average size of the units is less than 550
square feet, MBCDC will be need to comply with the procedures for non-conforming buildings to
obtain appropriate permits and variances, if required.
MBCDC has obtained site control and proceeded to have the facility inspected by a structural
engineer. The structural engineer's report stated that no major structural deficiencies were found.
The floor grade of the first level of the building is above the base floodplain elevation required by
the Federal Emergency Management Agency (FEMA) of 8 feet above NGVD. A Phase 1
Environment Review was also conducted which identified possible petroleum product contamination
from improperly abandoned heating oil tanks on the subject property and an adjacent property. As
a requirement of funding, the Owner will mitigate any hazardous conditions identified in the Phase
1 report. The Owner has provided a recent appraisal indicating that the property has been appraised
for $760,000 in "as is" condition. The closing to acquire the property is scheduled for May 24, 2000.
MBCDC has requested to utilize funds in the amount of $400,000, out of the $600,000 HOME
Program funds previously committed by the City, for the acquisition of the property. MBCDC has
received $60,000 of the $400,000 for project site control in accordance with the HOME Program
regulations. The $360,000 balance of the $760,000 purchase price will be financed by the Seller.
MBCDC has applied to the Local Initiatives Support Corporation (USC) for funding to later take
out the Seller's loan. MBCDC plans to pursue other public and private funds for the balance of
financing needed for the project.
The proposed scope of work, based on a preliminary evaluation, includes the following: replace wall
mounted AlC units with a central H.V.A.C. system; replace electrical system; replace existing
windows; provide new kitchenettes; refurbish/replace bathroom fixtures; refinish woodwork; provide
A.D.A. accessibility as required; upgrade fire alarm and detection system; convert basement into
laundry room; refinish/re-plaster ceiling and wall areas as needed; re-Iandscape entry; and provide
and install security features as necessary.
F:\DDHP\$ALL\MIGUELL\ l.5.5ICOMM.MEM
Commission Memorandum
April 12, 2000
MBCDC Sabrina Apartments Agreement
Page 3
On March 2, 2000, the Loan Review Committee reviewed and recommended approval by the City
Commission of MBCDC's funding request for the Sabrina Apartments.
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 Four Hundred Thousand
Dollars ($400,000) of previously committed fiscal year 1999/2000 HOME program funds for the
acquisition and rehabilitation of the Sabrina Apartments, located at 1551 Pennsylvania A venue,
Miami Beach, to provide twenty (20) rental units for income-eligible tenants in accordance with the
HOME Program requirements; further, approving a one-time only assignment of this Agreement to
MBCDC: Sabrina Apartments, Inc., a not-for-profit entity to be created by MBCDC as a successor
in interest in title to the Sabrina Apartments, and under this Agreement.
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F:\DDHP\$ALL\MIGUELL\1 S51COMM.MEM
HOME PROGRAM AGREEMENT
1~ 1\' I
THIS AGREEMENT. entered into this /,)-, day otIpn ,2000, by and between the.CrrV OF
MIAMI BEACH, a Florida municipal corporation, having its 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 1205 Drexel A venue, Miami Beach, Florida (hereinafter referred to as Owner).
WITNESSETH:
WHEREAS, on February 18, 1992, the City \vas designated by the U.S. Department of
Housing and Urban Development (HUD) as a Participating Jurisdiction for the receipt of funds
through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and
WHEREAS, the City has entered into an agreement with HUD for the purpose ofconductirg
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 Owner as a qualified Community Housing Development Organization
(CHDO) under the HOME Program; and
WHEREAS, on September 17, 1999, the City adopted Resolution No. 99-23286, authorizing
a HOME Program Agreement with Owner which reserved $600,000 from the City's fiscal year
1999/2000 HOME Program allocation for eligible CHDO projects; and
WHEREAS, Owner has submitted a request to the City to utilize $400,000 of the previously
allocated fiscal year 1999/2000 CHDO funds for a CI-IDO project to acquire and rehabilitate the
Sabrina Apartments, located at 1551 Pennsylvania A venue; and
WHEREAS, on March 2, 2000, the City's Loan Review Committee reviewed anJ
recommended approval by the City Commission of Owner's funding request: and
WHEREAS, Owner warrants and represents that it possesses the legal authority to enter inu
this Agreement, by way of a resolution that has been duly adopted as an official act of the Board c f
Directors, authorizing the execution of this Agreement, including all understandings and assurances
contained herein, and authorizing the person(s) identified as their official representative(s) to execute
this Agreement and any other documents which may be necessary to implement this project: and
WHEREAS, Owner intends to create a not-for-profit entity which will assume all intere~;t
and title to the Sabrina Apartments and be a successor in interest to MBCDC pursuant to this
Agreement; and
1
WHEREAS, accordingly, the City herein agrees and consents to a one-time only assignm:nt
of this Agreement to MBCOC: Sabrina Apartments, Inc.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
As lIsed in this Agreement the terms listed below shall have the following meanings:
(a) HOME Program: HOME Investment Pmtnerships Program. as set t~)rth in 24 CFR Part <J2.
as amended.
(b) HUD: United States Department of Housing & Urban Development or any successor agency.
(c) Funds: HOME Program funds.
(d) CHDO: Community Housing Development Organization as detined in the HOME Investment
Partnerships Program, 24 CFR, Part 92, as amended, and CPO Notice 94-02.
(e) Ten11s defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part S'2,
and any amendments thereto, not otherwise defined in this Agreement, shall have the meaning ~,et
forth in said Rule.
(e) HOME Assisted Units: A term that refers to the number of units in a project assisted with
HOME Program funds for which rent, occupancy, and resale/recapture restrictions apply.
ARTICLE II
ALLOCATION OF HOME FUNDS
In consideration of the perfon11ance by Owner of its role and responsibilities set forth in tl1 is
Agreement, the City agrees to provide a conditional grant of HOME Program funds to Owner in the
amount of Four Hundred Thousand Dollars ($400,000) (Funds) from previously allocated~fiscal year
199912000 CHDO set-aside funds.
The Funds will be utilized by Owner for a CHDO project that provides for the acquisition,
rehabilitation and operation of the building named Sabrina Apartments, located at 1551 Pennsylvania
Avenue, Miami Beach, that will provide 20 rental units for income qualitied families and
individuals. Owner will acquire and rehabilitate the building as more fully described in the Scope
of Services (Exhibit A) and Budget (Exhibit B). Owner will maintain required HOME Program rent
and occupancy limitations for a minimum period of 10 years (the AtTordability Period) commencing
with the issuance of the final approved Certificate of Completion by the City's Building Department'
2
tl)llmving the planned rehabilitatiulL
ARTICLE III
PROCEF.DS FROM HOME INVESTMENT
In accordance with the 24 CFR Part 92.300 (a)(2), Owner may retain the proceeds li'om thl~
investment of its C1-roo set aside funds for use in other housing activities which benetit low-incol11l?
families.
ARTICLE IV
SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOMI~
PROGRAM
Owner expressly agrees to the following terms and conditions in confonnity \'lith the 110ME
Program Final Rule.
(a) Repayment of Funds. 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 HOME units do not meet th::
affordability requirements for the required time period in accordance with the terms of this
Agreement and the HOME Program Regulations. Any violation of these requirements may, at th::
City's option, result in the entire amount of the Funds, as indicated in Article II or as subsequently
amended or modified, being returned and/or otherwise repaid by Owner to the City, and same shall
be considered and treated as an event of default resulting in the City's termination for cause of tll<:
Agreement, pursuant to Article XXVI herein. The City reserves the right to review the affordability
requirements, as set forth herein. Concurrent with its execution of this Agreement and/or any
projects pursuant to this Agreement, Owner shall ewcute a Mortgage and Note in the form,lt
provided by the City, incorporating the terms of this section, which shall be recorded in the Oftici,ll
Records of Miami-Dade County Florida.
(b) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR
92.252, as published from time-to-time by I-IUD. The City shall provide a HOME Program rent
schedule annually to Owner.
(c) Rent schedule and utility allowances. In accordance with 24 CI.'R 92.252(b)(c) and
(d), the City must review and approve rents and the monthly utility allowances proposed by th:
owner prior to initial occupancy. Owner must re-examine and document the income of each tenant
living in the HOME assisted units annually. The maximum monthly rent must be recalculated by
Owner and reviewed and approved by the City annually. Any increase in rents for HOME-assisted
units is subject to the provisions of outstanding leases and, in any event. the owner must provide th::
tenant with not less than 30 days written notice before implementing any rent increase.
(d) Owner shall comply with all applicable federal regubtions as they may apply u
3
restrictions and limitations regarding real property under Owner's control acquired or improvcd i 1
whole or in part with [[OMI.: funds.
(e) The Project must provide safe, sanitary, and decent residential housing t'or incom.:
eligible tenants (i.e., persons \vhose income is within specific income levels set forth by HUr)),
(0 Income Targeting. Owner shall maintain written documentation that conclusi\cL
demonstrates that the project assisted in whole or in par1 with HOME funds provides benetit to very-
low income households (annual income does not exceed 50 percent of the median family income for
the area) and low-income households (annual income does not exceed 80 percent of the median
income for the area) as required.
(g) Records: O"mer shall maintain all records sufficient to meet the requirements of 2.+
CFR 92.508(a)(2) program records, 92.508(a)(3) project records, 92.508(a)(5) other Federal
requirements records, 92.508(a)(6) progr~lln administration records. All records required herein shall
be retained and made accessible as provided in 24 CFR 92,508 (c) and (d) and Florida Statutes
Chapter 119.
(i) Property Standards. For the duration of this Agreement and any amendments heretc,
housing that is assisted with HOME funds, must meet all applicable local codes, rehabilitation
standards, ordinances and zoning ordinances at the time of project completion. The City shall
conduct annual or bi-annual, as required. on-site inspections of the project to assure compliance with
housing codes. The City may select a sample of the units in the project to satisfy the inspection
requirements.
(j) Environmental Review. For the Project described in the Scope of Services (Exhibit /\l.
attached hereto, Owner shall obtain a Phase I, Environmental Assessment. and agree to mitigate an:'
hazardous conditions identitied therein,
(k) Affirmative Marketing. In order to provide persons in the housing market area with
a range of housing choice, regardless of race, color, religion, sex, handicap, l~lmilial status. or
national origin. Owner agrees to administer the 1.IOME Program in a manner that \vill affirmativel:
further the purposes of Title VI of the Civil Rights Act of ] 964 at 24 CFR I, the Fair Housing .\ct
at 24 eFR 100 and Executive Order 11063 at 24 eFR 107. O\vner will submit its written procedure,
that implement these requirements for review and approval by the Ctty,
(1) Tenant and Participant Protection. O",ner agrees that the lease to be executed \\ith
the tenants of rental housing will be in accordance with 24 CFR Part 92.253. Furthermore, if HUtvlL
assistance is provided to a CHOO, the CHOO must adhere to a bir lease and grievance procedur<;
approved by the eity and provide a plan for and follow a program of tenant participation in
management decisions (24 CFR Part 92.303).
(m) CHDO Capabilities. Owner. as a CIIDO. agrees that it will function as an owner of
4
th~ Proj~ct anu that it shall ha\~ d'kctiv~ management control,
(n) Change in Status, Owner agrees to advise the City in writing \vithin thirty (30) delYs
of any organizationaL operational or legal status changes made by Owner that affect documents that
were submitted by O\'mer to obtain C[-[DO status.
ARTICLE V
ELIGIBLE COSTS
Owner agrees that eligible costs for the Project under this Agreement are limited to those
eligible costs as outlined in 24 CFR Part 92.206 of the HOME Program regulations.
ARTICLE VI
DISBURSEMENT OF FUNDS
(I) The Funds shall be used by Owner for acquisition of real property.
(2) Any payment due under the temlS of this Agreement may be withheld pending the receipt 2.nd
approval by the City of all reports and documents which Owner is required to submit to the City
pursuant to the terms of this Agreement or any amendments thereto.
(3) No payments will be made without evidence of appropriate insurance required by this
Agreement. Such evidence must be on file with the City.
(4) Owner understands and agrees that disbursement requests for funds under this Agreem:nt
are only to be requested when the funds are needed for payment of eligible costs. The amount of
each request must be limited to the amount needed.
ARTICLE VII
SUBCONTRACTS
(a) Owner shall use its best dforts to include a statement in all subcontracts that it executes lwt
the subcontractor shall hold the City harmless against all claims of whatever natun: arising out nf
the subcontractor's performance of work under this Agreement to the extent allowed by law.
(b) If Owner subcontracts. a copy of the executed subcontract must be I()[\varded to the ('it>
within ten (10) days after execution.
ARTICLE VIII
CONDITIONS OF SERVICE
(a) As a condition of these services. Owner agrees to comply with the HOME Program Fi nal
Rule. 24 eFR Part 92. and any Amendments or Notices issued pursuant thereto.
5
(b) Owner agrees to comply vvith the requirements 01' Lxecutive Orders Ilb25 and 12-t~_~
concerning Minority Business Enterprise and 12138 Women's Business Entuprise which
encourage the use of minority and women's business enterprises, to the maximum extent possible,
in connection with I lOME-funded activities,
(c) Owner agrees to comply with the requirements of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.c. 4201-4655) and 49 eFR Part
24. The Owner acknowledges having received the HUD Manual entitled "All the Right t'v[oves:
Relocation and Assistance [n I-lUD Programs" and HUD Handbook 1378 and will comply with all
requirements contained therein.
(d) Owner agrees to comply with all of the following kderallaws, executive orders, and
regulations pertaining to bir housing and equal opportunity.
(I) Title VI of the Civil Rights \ct of 1964, As Amended (42 u.s.e. 2000d) -- pertaining
to discrimination under any program or activity receiving federal financial assistance on the basi:)
of race, color, or national origin. Its implementing regulations may be tt)lll1d in 28 erR Part 1.
(2) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair- Housing Act" (4::
U.S.c. 360 I) and its implementing regulations at 24 eFR Part 100-115 -- Prohibiting discrimination
in the sale or rental of units in the private housing market.
(3) Equal Opportunity in Housing (Executive Order 11063, as amended by Executivl~
Order 12259) and implementing regulations at 24 eFR Part 107 -- Prohibiting discrimination in
housing or residential property financing related to any federally assisted activity.
(4) Age Discrimination Act of 1975, As Amended (42 U.S.c. 6101) and its implementing
regulations at 24 eFR Part 146 -- Prohibiting age discrimination in programs receiving federal
tinancial assistance.
5) Equal Employment Opportunity, Executive Order 11246, As Amended and it;
implementing regulations at 41 CFR Pat1 60 -- Prohibiting discrimination against any employee 0['
applicant for employment Provisions to effectuate this prohibition must be included in ~tll
construction contracts exceeding 'j; 10,000.
(e) Owner agrees to comply with the requirements of Section 3 of the Housing and Urban
Development Act of 1968 (12 u.s.e. 1701u) n Requires that, to the greatest extent feasible,
opportunities for training and employment arising from I-laME funded projects will be provided to
low-income persons residing in the program service area; and, to the greatest extent kasible.
contracts for work to be performed in connection with HOME funded projects will be avvarded to
business concerns that are located in, or owned by persons residing in the program service area.
(0 Owner will ensure that all units in a project assisted vvith HOME funds comply with th:
6
Lcad Bascd Paint Poisoning Prcnntion Act (.+:2 use -+:-\21. el) ~lI1d its impkmcntlIlg rcgulatiun:;
at 2-+ CFR 35,
(g) Owner agrees to comply with the Federal Labor Standards Provisions. as d~scribed i1
HUD Handbook 134-+-1 (Federal Labor Standards Compliance in Housing and Communit.,:
Development Programs).
(h) Owner agrees to comply with the requirements 01'24 CFR part 24 regarding debarment and
suspensIOn.
ARTICLE IX
TERM OF AGREEMENT
This Agreement shall be effecti ve upon execution by both parties and shall terminate at thl~
conclusion of the 10 year period of affordability as specified in 24 CFR 92.252 (affordable rental
housing).
ARTICLE X
TERMINA TION
The City and Owner agree that this Agreement may be terminated by the City, in whole or
in part, for cause (as defined in Article XXVI herein and in accordance with the provisions of 2-~
CFR Part 85.43) or for convenience (as defined in Article XXVTl and in accordance with tht~
provisions 01'24 CFR, Part 85.4-+). A written notification shall be required at least thirty (30) daY';
prior to the effective date of such termination, and shall include the reason for the termination (if 1'0 ~
cause), the effective date. and in the case of a partial termination, the actual portiones) to be
terminated.
ARTICLE XI
AMENDMENTS
Any alterations. variations. modifications or waivers of any provisions of this Agreement
including an increased allocation of funds. shall only be valid when they have been reduced te
writing and signed by the City and Owner.
ARTICLE XII
CONFLICT OF INTEREST
(a) Owner shall comply with the standards contained within 24 CFR Part 92.356 which state~
that no owner, developer or sponsor of a project assisted with HOME funds (or onicer. employee,
agent or consultant of the owner, developer or sponsor) whether private-for-profit or non-profit. may
occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to all
employee or agent of the owner or developer of a rental housing project who occupies a HOME-
assisted unit as the project manager or maintenance worker. Exceptions may be granted by the Cit:
in accordance with 24 CFR Part 92.356(1)(2).
7
(b) Owner shall disclose any possible conllicts of interest or apparent improprieties of any part>
that is covered by the above standards. Owner shall make such disclosure in writing to the Cit>
immediately upon Owner's discovery of such possible connict. The City will then render an opinion
which shall be binding on all parties.
(c) Related Parties. Owner shall report to the City the name, purpose, and any other relevant
infoffi1ation in connection with any related-party transaction. This includes, but is not limited to, a
for-protit subsidiary or affiliate organization, an organization with overlapping boards of directors,
or an organization for which an officer of the Owner is responsible for appointing memberships.
Owner 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 to the City in the
required Annual Report.
ARTICLE XIII
INDEMNIFICATION AND INSURANCE
Owner, through an insurance carrier, shall indemnify and hold harmless the City from any
and all claims, liabilities, losses, and causes of action which may arise out of an act, omission,
negligence or misconduct on the part of Owner or any of its agents, servants, employees, contractors,
patrons, guests, clients, or invitees. Owner, through its insurance carrier, shall pay all claims ancl
losses of any nature whatsoever in connection therewith and shall defend all suits in the mm1e of th~:
City, when applicable, and shall pay all costs and judgements which may issue thereon.
Owner shall maintain during the term of this Agreement, the insurance specified below.
(1) General Liability: $500,000 combined single limit for bodily injury and property damage,
for each occurrence.
(2) Contractual Liability: the policy must include coverage to cover the above indemnification,
(3) Automobile and vehicle coverage in the amount of $500,000 per occurrence shall be required
when the use of automobiles and other vehicles are involved in any way in the performance of the
Agreement, including non-owned automobile coverage.
(4) Workers' Compensation Coverage as per statutory limits of the State of Florid"L
(5) Builders Risk/Comprehensive Fire and Hazard Insurance: Owner shall deliver to the City
the original policy of Builder's Risk and Comprehensive Fire and Hazard Insurance in completed
value form with extended coverage in the amount of the full insurable value of the Project upon
completion of construction, issued by a company satist~lctory to the City.
(6) Flood Insurance: If the noor grade of the tirst level of the building is determined to be below
the base noodplain elevation required by the Federal Emergency Management Agency (FEMA) of
8
~ ket above NG V D. Ov"ner shall deliver to the City evidence satist~lctor) t\) the City that ll1\..'
premises arc covered by tload insurance supplied by the Federal Insurance Administration to the
maximum amount available, all as provided in the Flood Disaster Protection .\et .01' llyn. CIS
amended, together with appropriate endorsement. Owner agrees that the City shall have the ri.~ht
to take any action necessary to continue said insurance in full force.
Owner shall submit to the City an ORIGINAL Certiticate oflnsurance for the above coverage
with the City named as an additional insured, to the extent of its insurable interest on all policies
required herein. 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
(l) Progress Reports. Owner agrees to submit monthly progress reports to the City, describl ng
the status of the Project and achievement of objectives as provided herein and in the Scope of
Services (Exhibit A) and Budget (Exhibit B), attached hereto. The progress reports shall be
submitted no later than 10 days after the end of each month until such time as all funds are expended
or, for rental projects, until the project is fully occupied.
It will be the responsibility of Owner to notify the City in writing, of any actions. law, or
event, that will impede or hinder the completion projects ancl activities as provided in this
Agreement. After such notification. the City will take whatever actions it deems appropriate to
ensure the Sllccess of the program.
(2) Tenant and Rent Schedule Certification,
a. Owner shall submit to the City for approval the proposed rents 1'01' the HOl\lE Llr it:-;
and. if applicable, the monthly allowances tor utilities and services to be paid by the tena~1L The City
shall approve submitted rents if such rents comply with applicable Federal standards, or ir llUD has
approved same.
b. Owner shall provide the City with the initial tenant list. and any and all subsequ\:nt
updates, amendments and moditications thereto. with clocumentation 1'01' all tenants in the HOi\lL-
units confirming t~1tl1ily size. income. tinancial classification, ethnicity. HOME rents charged and
other information the City may require to fultill its reporting requirements to BUD, This report v,ill
continue to be required for the full period of affordability hereunder beginning on the date of
issuance ofa Final Certification of Completion for the Project. The initial report shall be due \\ithin
thirty (30) days of project lease-up,
9
c. Annually, ()\vner shall deliver to the City's Ilousing and C0l11munity Devel\lpnlent
Division, by October 3\ st of each calendar year, its signed report in torm and substance acceptabk
to the City. to include names ot' tenants, unit type, family size and income, rents chargeeL ~llld
occupancy/vacancy Llctor oteach unlt tor the prior tiscal year (October 1st through September 3Uth),
The report will continued to be required for the full IO-vear period of affordability hereurder
beginning on the date of issuance of a Final Certiticate of Completion for the project
(3) Other reports as may be required by the City to demonstrate compliance with any of the tems
of this Agreement.
I l' the required rep0l1s described above are not submitted to the City or are not completed in
the manner acceptable to the City, the City may withhold further payments until they are compklt:d
or may take any other action as the City may deem appropriate.
ARTICLE XV
AUDIT AND INSPECTIONS
At any time during nonnal business hours and as often as the City administration and/or the
Comptroller of the Currency of the United States may deem necessary, there shall be made avaibble
to the City administration and/or representatives of the Comptroller to audit. examine and m3.ke
audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of emploYl11 ent
and other data relating to all matters covered by this Agreement. Ifduring the course OLl monitOling
visit, the City determines that any payments made to Ovvner do not constitute an allowiJ ble
expenditure, the City will have the right to deduct those amounts Ii'om their related invoices. Ovvne1'
must maintain records necessary to document compliance with the provisions of this :'\greement
ARTICLE XVI
COMPLIANCE WITH LOCAL STATE AND FEDERAL RI~GULATIONS
Owner agrees to comply with all applicable Federal regulations as they may apply to program
administration. Additionally, Owner will comply with all State and locallavvs and ordinances hereto
applicable.
ARTICLE XVII
ADDITIONAL CONDITIONS
(a) Title and paragraph headings are for convenient reference and are 1H)[ a part uf tillS
Agreement.
(b) In the event of connict between the terms of this Agreement and any terms or conditions
contained in any attached document, the terms in this Agreement shall rule
(C) No waiver or breach of any provision o!'this Agreement shall constitute a waiver o!'an:,
subsequent breach of the same or any other provislon hereof, and no waiver shall be effective unless
made in writing,
10
ARTICLE XVIII
ACCESS TO RECORDS
Owner, agrees to allow access during normal business hours to all financial l\~cords tll
authorized Federal, State or City representatives and agrees to provide such assistance as may be
necessary to facilitate tinancial audit by any of these representatives when deemed necessary to
insure compliance with applicable accounting and tinancial standards. Owner shall allow aCCt:ss
during normal business hours to all other records, forms, files, and documents which have been
generated in performance of this Agreement and to those personnel as may be designated by the ell),
ARTICLE XIX
SEVERABILITY OF PROVISIONS
If any provision of this Agreement is held invalid. the remainder of this Agreement shall Lut
be affected thereby if such remainder would then continue to conform to the terms and requirements
of applicable law.
ARTICLE XX
PROJECT PUBLICITY
Owner 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 United States Department of
Housing and Urban Development, and that the Program is administered by the City's Communt)
and Economic Development Department, which is the entity providing funds for the Project.
ARTICLE XXI
DRUG-FREE WORKPLACE
Owner agrees to administer in good t~lith, a policy to ensure that it complies with the Dn;g-
Free Workplace Act requirements under 24 CFR Part 24, Subpart F, and will ensure that the
workplace is free from the unlawful manufacture. distribution, dispensing, possession or use of
drugs or alcohol.
ARTICLE XXII
NONDEI,EGABI..(;:
Owner agrees that the obligations undertaken pursuant to this Agreement shall nut be
delegated or assigned to any other person or linn unless the City shall tirst consent in \'vriting to the
performance or assignment of such service or any part thereof by another person or firm,
ARTICLE XXIII
SUCCESSORS AND ASSIGNS
Owner agrees that this Agreement shall be binding upon the parties herein. their heirs.
executors, legal representatives. successors, and assigns,
1 1
ARTICLE XXIV
INDI~PENDENT CONTRACTOR
Owner 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 bendits under the Civil Service
or Pension Ordinances of the City. or any rights generally afforded classified or undassi'ied
employees; further he/she shall not be deemed entitled to the Florida Workers' Compensalion
benefits as an employee of the City.
ARTICLE XXV
ASSIGNMENT
This Agreement may not be assigned or transferred by Chvner without the prior \\Tiuen
consent of the City thereto, which consent shall not be unreasonably withheld. It shall be deened
a default of this Agreement in the event that Owner does not strictly comply with the procedures
established herein for obtaining City consent to assignment or transfer as detined by this Paragraph.
In the event such consent is not obtained, in the manner prescribed herein, the City shall be entided
to declare a default, cancel this Agreement, and resort to its rights and remedies against the
defaulting party. In the event the Provider transfers an interest of more than one ( 1%) perc ent
ownership in its stock by pledge, sale, or otherwise; or if Owner makes an assignment for the bendit
of its creditors, or uses this Agreement as security or collateral for any loan; or if the Provider is
involved in any bulk transfer of its business or assets, then in that event each of the foregoing acti Jns
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
receivership for Owner, shall be deemed an assignment of this Agreement and will require the prior
written consent of the City thereto,
ARTICLE XXVI
TERMINATION FOR CAliSE
The City may place Owner in dehmlt of this Agreement and may suspend or terminate Ihis
Agreement. in whole or in part, lor caLIse, as prescribed in Article X herein. "Cause" shall include.
but not be limited to, the tollowing:
(a) Owner's bilure to (i) diligently pursue additional Project tinancing and tl) close lln the
acquisition of the Project within 60 days from the date of execution of this Agreement: or (i i I
commence work within thirty (30) days from the date of issuance of the Notice to Proceed: ur I iii)
diligently pursue construction and timely complete the project by securing a Final Certiticatl: of
Completion within twelve (12) months from the elate of execution of this Agreement.
Work shall be considered to have commenced and be in acti\e progress when. in the :iu!.:
opinion of the City, a full complement of workers and equipment is present at the site to diligentl:-
incorporate materials and equipment into the structure throughout the day on each full \\orking day.
weather permitting.
12
(b) (hvner's t~lilure tu comply with applicable building. lil\:, lik saktv, housillg and /lJning Ll\\;
rules. regulations and COlleS,
(C) Owner's default on any of the terms and conditions or the note. mortgage. or other loai1
document executed by Owner in bvor of a Lender.
(el) Owner's failure to maintain the insurance required by the C'ity and/or Lender.
(e) Failure to comply and/or perform in accordance with any of the terms and conditions or this
Agreement. or any Federal, State or local regulation,
(f) Submitting any required report to the City which is late. incorrect, or in5=ompkte in an:-
material respect after notice and reasonable opportunity to cure, as set forth in subparagraph (11)
hereof. has been given by the City to Owner.
(g) Implementation of this Agreement, for any reason is rendered impossible or infeasible.
(h) Failure to respond in writing within thirty (30) days of notice of same from City to an:,'
concerns raised by the City, including providing substantiating documentation when requested b:,
the City.
(i) Any evidence of fraud, waste or mismanagement as determined by the City's monitoring 01'
project( s) under this Agreement, or any violation of applicable HUD rules and regulations.
(j) Owner's insolvency or bankruptcy.
(k) An assignment or transfer of this Agreement or dilY interest therein which does not comply
with the procedures set forth in Article XXV herein.
(I) Claims oflien not satislied or bonded-oIl in accordance with Florida Statutes. within60 day~;
from the date of filing or any such lien.
(m) Failure to comply and/or pert(xm in accordance with the affordability requin:men.ts, and/lll'
an unauthorized transfer of title of its HOI'vIE projects.
If the default complained of is not fully and satisElctorily cured within thirty (30) days 01'
receipt of such notice of debult to Owner, at the expiration or said thirty (30) day period (or such
additional period of time, as permitted by the City, in its sole discretion, as required to cure such
dd~lult, in the event Owner is diligently pursuing curative efforts) this Agreement may, at the City'~
sole option and discretion, be deemed automatically canceled and terminated, and the City full)
discharged from any and all liabilities. duties and terms arising out of, or accruing by virtue of thi~
Agreement. In the event of a default for cause, the City may, at its option, avail itself of any and all
remedies pursuant to 24 eFR Part 85.43, as amended li'om time to time, including suspension, ill
whole or in part, of Owner's grant award(s): recapture of the Funds. as set f<.)["[h herein: and any otheI
remedies that may be legally available.
13
ARTICLE XXVII
TF:RMINATION FOR CONVENIENCE
Notwithstanding Article XXVI above, Owner herein consents that the City may terminale
this Agreement, in whole or in part, for convenience, as set forth in 24 CFR Part 85.-+-L
ARTICLE XXVIII
ADDITIONAL REMEDIF:S
in the event of a default and termination for cause, the City shall be entitled to bring any au.!
all legal and/or equitable actions which it deems to be in its best interest, in Dade County, florid,l,
in order to enforce the City's rights and remedies against the det~lL1lting party, The City shall be
entitled to recover all costs of such actions, including reasonable attorney's fees. To the exte 1t
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 XXIX
MAINTENANCE AND RETENTION OF RECORDS
Owner agrees that it will maintain all records required pursuant to 24 CFR Part 92.508, in
an orderly fashion in a readily accessible, pelmanent 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.
(I) Records shall be maintained for a period of five years after the closeout of funds under this
Agreement except as provided herein (2), (3) and (4).
(2) 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 specitied in paragraph (I). whichever
is later;
(3) Records regarding project requirements that apply for the duration of the period l)f
atIordability, as well as the written agreement and inspection and monitoring repo;ts must he
retained for five years after the affordability period terminates;
(4) Records covering displacements and acquisition must be retained for at least Ii vc years afkr
the date by which the persons displaced Ii'om the property and all persons whose property is acquir<:d
for the project have received the tinal payment to which they are entitled in accordance with 24 CFR
Part 92.353.
ARTICLF: XXX
LIMITATION OF LIABILITY
The City lksires to enter into this Agreement only if in so doing the City can place a limit
14
on th~ City's liability [tH' any callse ofactiun !tH'llloney dal11a~!es due tu ,\11 alk~ed bIT,leh by the Cit\
uf this Agr~~m~nt. so that its liability for any sllch breach never exceeds the sum of $.WO.()()().
Owner hereby expresses its willingness tu enter into this !\greemcnt with O"'ner's recov~ry li'olll !he
City for any damage action for breach of contract to b~ limit~d to a maximum amount of $-WO,()()()
Accordingly, and notwithstanding any other term or condition or this Agreement. Ovvner hereby
agrees that the City shall not be liable to Owner for damag~s in an amount in excess of $400,0()().
for any action or claim for breach of contract arising out of the performance or non-p~rformance 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 76R.2R.
ARTICLE XXXI
VENUE
This Agreement shall be enforc..:able in Miami-Dade County, Florida, and if legal action is
necessary by either patty with respect to the enforcement of any or all terms or conditions herein.
exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida.
ARTICLE XXXII
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 Funds, originated from grants of federal HOrviE lnvestnwnt
Partnerships Program funds, and must be implemented with all of the applicable rules and regulatiJn
of the U.S. Department of Housing and Urban Development. It is expressly understood and agreed
that in the event of curtailment or non-production of said Federal grant funds, that the financial
sources necessary to continue to pay the Owner the Funds will not be available and that this
Agreement will thereby terminate effective as of the time it is determined that said funds are ~10
longer available. In the event of such detem1ination, Owner agrees that it will not look to, nor sed\.
to hold liable, the City or any individual member of the City Commission thereof, personally Il,r the
perll)rmance of this Agreement and all parties hereto shall he released from further liability each tu
the other under the terms uf this Agreement.
ARTICLE XXXIII
ACCESSIBILITY LA WS COMPLIANCE
Owner agrees to adhere to and be governed by thc following accessibility requiremcnts:
(a) Architectural Barriers Act of 1968, As Amcnded (42 U.S.c. 4151) and its implemcnti 10;
regulations at 35 eFR Part 107 -- Public buildings and conveyances linanced with federal funds must
be designed, constructed, or altered to provide accessibility to the physically handicapped.
(b) Section 504 of the Rehabilitation Act of 1973 (29 use 7(4) and implementing
regulations at 24 CFR Part g -- Prohibits discrimination in t"ederally assisted programs on the ba:;is
of handicap and impuses requirements to ensure that "qualitied individuals with handicaps" ha\e
1 5
access to programs and activities that receive federal funds.
(c) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (.+2
U .S.c. 3601) and its implementing regulations at 24 CFR Part 100-115.
Owner must complete and submit the City's Disability Non-Discrimination Affidavit
(Anidavit), a copy of which is attached hereto and incorporated herein as Exhibit C. In the event
Owner fails to execute the City's Affidavit, or is found to be in non-compliance with the provisic,ns
of the Affidavit, the City may impose such sanctions as it may determine to be appropriate, including
but not limited to, withholding of payments to Owner under the Agreement until compliance and/or
cancellation, termination or suspension of the Agreement in whole or in part. In the event the City
cancels or terminates the Agreement pursuant to this Article, Owner shall not be relieved of liability
to the City for damages sustained by the City by virtue of Owner's breach of the Agreement
ARTICLE XXXIV
NOTICES
All notices shall be sent to the parties at the following addresses:
If to the City:
City of Miami Beach
1700 Convention Center Drive. 3rd Floor
Miami Beach, FL 33139
Attn: (1) City Attorney's Oftice
and (2) Housing Director
[f to Owner:
Roberto Datorre
MBCDC
1205 Drexel Ave., 2nd Floor
Miami Beach, FL 33139
or to such address and to the attention of such other person as the City or Owner may
from time to time designate by written notice to the other.
16
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized official(s) on the day and date tirst above indicated.
MIAMI BEACH COMMUNITY
DEVELOPMENT CORPORATION
a Florida not-far-profit corporation
'),4
Authorized Signatory
ATTEST:
/-,. ' " , \ --..,
<' -<\11 ~y \c-, DC{t{ {e I -Y{ e~:~ rl~ (yA;
Printed Name and Title
of Authorized Signatory
ecretary
ATTEST:
CITY OF MIAMI BEACH
a Florida Municipal corporation
f2tluJ~ P cucLL'\
City Clerk
~!
Mayor
F' DDHPISALL\BETHI99UOCHDO.PROI1551 PENN\ 1551110ME,AGR
.APPROVED f\S 10
FORlv; & LANGUAGE
.& fOR EXECUTION
~:(~/
))t!~
17
EXHIBIT A
SCOPE OF SERVICES
SCOPE OF SERVICES
I, NamdAddre:ss uf Projt:ct:
Sabrina Apartlllt:nts
I :is I Pennsylvania Ave:nue
i'vliami Beaeh, FI 33139
, Legal Description:
Lot 14, Block 59, of Lincoln Subdivision, according to the Plat thereof, recorded in
Plant Book 9, Page 69, of the public Records of Miami-Dade County, Florida.
3. Building and Site Characteristics
MBCDC has entered into a Contract f(Jr Sale and Purchase in the amount uf $760,000 fur an apartment
building named Sabrina Apartments. located at 155\ Pennsylvania Avenue:. i'vliami BeadL Ihe buildin;! is
vaeant. The 2-story, 20 unit apm1rnent building is an Art Deco building located within the /\rt Decu Historic
District of South Beach. The building was eonstructed in 1947 and is located two blocks west of Washington
A venue and one block south of L.incoln Road. The 20 one-bedroom apanments oecupy a total are[, of
approximately 10,640 square teet. According to the repon from the architects, Insight Design, Inc" there are
four units which contain 400 square teet. Each of the other 16 units have an area of 491 square feet. AlIll1its
are in excess of the minimum City requirement of400 square teet. MBCDC is proposing to rdain the 20 u.lits
and to rehabilitate the building with a minimum of changes to the room layout. Since the average size of tht:
units is less than 550 square feet, a waiver will need to be obtained from the City,
MBCDC has obtained site control and proceeded to have the htcility inspected by a structural t:ngineeL Tht:
structural engineer's report stated that no major structural deficiencies were found. A Phase I Environment
Review was also conducted which identitied possible petroleum product contamination from improptrly
abandoned heating oil tanks on adjacent propelties. As a requirement of funding, the Owner will mitigate any
hazardous conditions identitied in the Phase I report. The Ovvner has provided a recent appraisal indicating
that the property has been appraised for $760,000 in "as is" condition.
4, Upon completion of the Pruject, all units will be HOME-assisted and carry restricted rellt and tenant
income restrictions for the duration uf the I O-year affordability period,
5, Proposed Elements ut'Constructiun
l'he proposed scope ohvork. based lll1 a preliminary evaluation. includes the following: replace \.\allllhlUllled
A/C units with a centralllVA,C system; replace electrical system~ replace existing windO\vs: provide ne\\
kitchenettes; refurbish/replace bathroom tixtures~ retinish wood finishes~ provide kD,A. accessibility as
required~ upgrade fire alarm and detection system~ convert basement into laundry room: relinish/re-plasrcr
ceil ing and wall areas as needed; re-Iandscape enti.y; and prov ide security teatures as necessary.
6, The following procedures rnust be followed, prior tu the coml11encel11t:nt o!. \\ork on the pr,l.lcct:
(a) Each contractor and/or subcuntractor lTlust be found to be eligible to work on a federally funded
project. The names submitted will be checked against the monthly listing "Consulidated List of
Debarred. Suspended & Incligible Contractors and Grantees" published by the Federal Gllvernmtnl.
(b) Since the Buildillg is nlore than 50 years old, Owncr's Architect or Engineer ( I) must obtain and
:-;ubmit tn the City a Ictter indicating that the plans for thc project have becn revic\\cd by the Selle
Historic Presel"\ation Onicer I SllPO) and that the propo~ed rehabilitatioJl is acceptable t,l thar ollie\?,
and (2) Illust submit a cupy llfthe 50 year re-certitication fix the building,
(c) A set of tinal approved plans and specitications fur the project appruved by the City's Buildin!j
Department must be submillecl to the Housing Division of the City's Comlllunity/E':cunomic
Deve lopment Department.
(d) Building permits must bc obtained as required by applicable City Ordinance. Also. any other
necessary permits ancl applicable approvals from any other governmental authorities must be obtained.
if required.
(e) A copy of the contract bet ween Owner and a licensed General Contractor must be subm itted to
the City which includes commencement and completion dates. contract amount. scope of worh.
Federal Labor Standards Pruv isions (H UD Form -H) I 0, if appl icable). and appl icable federa I
regulations and standards.
(t) The General Contractor selected must submit evidence prior to the commencement of \Ynrh.
satisfactory to the City's Insurance Manager, of the following insurance coverage: 1) Liabilit:-
insurance against claims arising out of accident or occurrence on the property, in a minimum amount
of $1,000,000. The City of Miami Beach must be named as additional insured in the policy; and 2)
Proof of worker's compensation coverage; and such other forms of insurance as the City's Risk
Manager may reasonably require,
(g) A revised cost breakdown. to include direct and indirect costs of the proposed work. based on thl:
actual contract price.
When the above requirements have been met, the Community/Economic Development Department and till?
Building Department will jointly issue a "Notice to Proceed" on the project. If Owner nr contractor does not
fully comply, or ifany work commences prior to the issuance of the Notice to Proceed, then such work may,
at the discretion of the City. constituk a det~lldt under this ,\greement.
Exception: Subject to the prior approval of the Community/Econulllic Development Department and
the Building Department. emergency repairs can be undel1aken on the Project
7, Owner's General Contractor shall be responsible for compl iance with all pollution and asbestos contro
standards ofth~ concerned governmelltal agellcies, It shall be thc l\mtractor's n.::spollsibility tu obtain requirel
inspections from these agencies.
8, Federal regulations require that all tenants in housing rehabilitated with federal funds. be pmvidec
with information on the following: that the property may contain lead-based paint: uf the hazards. sYll1ptonl'
and treatment for ingestion of lead-based pail1t: of the precautions to be taken; of the availability orblood level
screening for children under seven years of age: and that in the event lead-based paint is found in the prupeny,
appropriate abatement procedures must be undertaken by owners, Copies of a brochure will be provided to
Owner by the City, This information must be provided by O\vner to each tenant, and Owner must retain
evidence of having provided this nutiticalion to the tenant in a tile for the life of this Agreement,
9, Alter the property has been rehabilitated, it must conform to the applicable codes, ordinances and
statutes of the Cily and of Miami-Dade County, including, but Jlot limitedlo. the South Flnrida l3uilding Code.
the Zoning Ordinance, and the Pmpeny Maintenance Standards
I D. Owner agrees that it will devc:lop an aftirmative markding plan. with concurrenCl: frum the C it). that
\vill comply with the City's adopted aftirmative marketing procedures and requirements for projecs
containing 5 or more HOME-assisted housing units. Owner shall implement an affirmative marketing
program that provides information to, and attracts eligible persons in the housing market. area to tl:e
available housing receiving assistance from HOME funds, without n:gard to race, color, national
origin, rei igion, sex. sexual orientation, handicap, marital status, fam iI iat status. or age. TIi e
affirmative marketing requirements and procedures adopted by Owner shall incluck, hut nul
necessarily be limited to, the following:
a, Methods to promote greater choice of housing opportunities;
b. Practices for marketing vacant units that will atlirmatively further fair housing (e.g" use c I'
commercial media, use of comm unity contacts, LIse of the Eq ual Housing Opportun ity logotype c r
slogan, and display of fair housing poster);
c, Special outreach efforts to inform and solicit applications frum persons in the housing market area
who are not likely to apply t()r the housing without special outreach and advertising effol1s (c.g" use
of community organizations including, but not limited to: places of worship, employment center~;,
community centers, fair housing groups, housing counseling agencies, community developmert
corporations, and the Housing Authority of the City of Miami Beach). The City shall provide a li~t
of potential outreach sources to Owner;
d. Maintenance of records describing actions taken to aftirmatively market units and records to assess
the results of these actions, illcl uding newspaper clippings of all vacant units advertised. copies 0 I'
brochures, pamphlets, and articles used in advertising units, lists of community organizations used i,)
disseminating information, records of referrals and the results of these referrals, and documentation
of any other special outreach activities conducted.
e. A certification that states that the Owner agrees to adhere to any corrective actions the City requires
if affirmative marketing requirements are not met
II, Project Development Schedule
Closing Date
Commence Construction
Complete Construction
Lease-up
May 24, 2000
July 2000
January 200 I
March 200 I
EXHIBIT B
BUDGET
SOURCES AND USES OF FUNDS
SABlUNA APARTMENTS
1551 PENNSYLVANIA AVENUE
ESTIMATED SOURCES OF FUNDS
CITY OF MIAMI BEACH (CHDO SET ASIDE)
SELLER FINANCING,TO BE TAKEN OUT BY (LISC), AND (PERMANENT BANK LOAN)
CITY OF MIAMI BEACH (NOFA)
OTHER: FLA HOUSING FINANCE CORP., MIA.MI-DADE COUNTY, AHP
MBCDC
USES OF FUNDS
ACQUISTION OF PROPERTY
REHABILIT A nON
PRE-DEVELOPMENT COSTS
400,000
360,000
500,000
200,000
2,649
1,462,649
760,000
550,000
152,649
1,462,649
EXHIBIT C
DISABILITY DISCRIMINATION AFFIDAVIT
.-\CKNOWLEDGEMENT OF OISABILITY NONDISCRIMINA nON AFFIDA VIT
CONTRACT REFERENCE HOME. Fiscal Year 1999/2000
1'1.\:VIE OF FIR;"!. CORPORA nON. OR ORGANIZATION Miami Beach Community Development
Corporation (MBCDC)
.~LTHORIZED AGENT COMPLETING AFF[DA VIT Roberto Datorre
POSITION President
PHONE NUMBER (305 153S-0090
L Roberto Darorre " being duly first sworn state:
That the above named form, corporation or organization is in compliance with and agrees to continue to
comply \vith, and assure that any subcontractor, or third party contractor under this project complies with
all applicable requirements of the laws listed below including, but not limited to, those provisions pertaining
to employment, provision of programs and services, transportation, communications, access to facilities.
renovations, and new construction.
The Americans with Disabilities Act of 1990 (ADA): Pub. L. 101-336, 104 Stat 327,42 use 12101-
12213 and 547 use Sections 225 and 611 including Title I, Employment; Tittle II, Public Services;
Title fII, Public Accommodations and Services Operated by Private Entities; Title IV,
Telecommunications; and Title V, Miscellaneous Provisions.
The Rehabilitation Act of 1973: 29 USC. Section 794.
The Federal Transit Act, as amended: 49 USe. Section 1612.
The Fair Housing Act as amended: 42 u.s.e Section 3601-363 I.
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SUBSCRIBED AND SWORN TO (or affirmed) before me on
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The City of Miami Beach will not award a contract to any fim1, corporation or organization that fails [0
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have this Affidavit on file with the City of Miami Beach.