HomeMy WebLinkAbout538-2006 RDA Reso
RESOLUTION NO. 538-2006
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY (RDA) APPROVING
AND AUTHORIZING AN APPROPRIATION TO THE CITY OF
MIAMI BEACH FROM PREVIOUSLY ALLOCATED SOUTH
POINTE REDEVELOPMENT AREA FUNDS, IN THE AMOUNT OF
$1, 500,000, TO BE UTILIZED BY THE CITY TO ENTER INTO A
LOAN AND/OR OTHER FUNDING AGREEMENT WITH MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), FOR THE PURPOSE OF MBCDC'S ACQUISITION
AND REHABILITATION OF THE BUILDING LOCATED AT 530
MERIDIAN AVENUE, TO PROVIDE 34 AFFORDABLE HOUSING
UNITS FOR ELDERLY, FORMERLY HOMELESS PERSONS;
AND FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE ANY AND ALL DOCUMENTS ON BEHALF OF THE
CITY TO SECURE AND MEMORIALIZE THE TERMS AND
CONDITIONS OF THE AFORESTATED CITY LOAN/FUNDING
AGREEMENT TO MBCDC.
WHEREAS, on December 10,2003, the City of Miami Beach awarded United States
Department of Housing and Urban Development (HUD) Fiscal Year 2002/03 HOME funds
in the amount of $309,469 to Carrfour Supportive Housing (Carrfour) for the rehabilitation
of a multi-family rental building located at 530 Meridian Avenue, known as Sunsouth Place,
to provide affordable housing for formerly homeless persons of Miami Beach; and
WHEREAS, since that time, Carrfour has indicated that it will no longer pursue
completion of the Sunsouth Place project and has offered to sell the building to another
affordable housing provider, Miami Beach Community Development Corporation (MBCDC),
. so that the project can be completed and that the housing units can be retained for the
benefit of elderly formerly homeless persons in Miami Beach; and
WHEREAS, in order for MBCDC to be able to acquire the property from Carrfour by
the purchase agreement deadline of October 31, 2006, it is necessary for MBCDC to
request a loan in the amount of $1 ,500,000 from the City of Miami Beach; and
WHEREAS, MBCDC has agreed to reconfigure the project and provide 34 units of
affordable housing to elderly, formerly homeless persons in Miami Beach at a total cost of
$6,629,000, of which $3,880,000 is for acquisition and soft costs, and $2,749,000 is for
rehabilitation costs, which is approximately $401 per square foot; and
WHEREAS, MBCDC is in negotiations to maintain a significant amount of the
previously committed funding from state and federal funding sources and has applied for
an additional $3,000,000 from the Florida Housing Finance Corporation's Special Housing
Assistance and Development Program (SHADP) that is for housing developments that
target hard-to-serve populations, such as frail elderly and homeless persons; and
WHEREAS, the proposed activities by MBCDC in undertaking this project are
consistent with the City's Consolidated Plan because it effectively addresses the needs of
the homeless by a combination of services in a coordinated effort to move these persons
from homelessness to self-sufficiency; and
WHEREAS, previously allocated South Point RDA funds are available to be re-
allocated for this purpose, as this purpose is consistent with the goals and objectives ofthe
former South Point RDA; and
WHEREAS, due to the expiration of the South Point RDA, it is recommended that
funds be allocated to the City so they may enter a loan and/or other funding agreement
with MBCDC for the development of this project; and
WHEREAS, no funds will be allocated to MBCDC until such time as MBCDC
secures the balance of the funding for the acquisition and rehabilitation of the building.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH,
FLORIDA, that the Chairman and Members of the RDA authorize the appropriation of
$1,500,000 in Redevelopment Agency (RDA) funding from previously allocated South
Pointe Redevelopment Area Funds, to the City of Miami Beach, to be utilized by the City of
. Miami Beach to enter a loan and/or other funding agreement with Miami Beach Community
Development Corporation (MBCDC), for the purpose of MBCDC acquiring and
rehabilitating a building located at 530 Meridian Avenue to provide 34 units of affordable
housing for elderly, formerly homeless persons; and further authorizing the City Managerto
execute any and all documents on behalf of the City to secure and memorialize the terms
and conditions of the aforestated City loan/funding agree ent to MBCDC.
SECRETARY
Robert Parcher
PASSED and ADOPTED this 11 thday of October;
ATTEST:
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T:\AGENDA\2006\oCT11 06\REGULAR\RDA MBDe 530 MERIDIAN RESO.DOC
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA)
APPROVING AND AUTHORIZING AN APPROPRIATION TO THE CITY OF MIAMI BEACH FROM PREVIOUSLY
ALLOCATED SOUTH POINTE REDEVELOPMENT AREA FUNDS, IN THE AMOUNT OF $1,500,000, TO BE
UTILIZED BY THE CITY TO ENTER INTO A LOAN AND/OR OTHER FUNDING AGREEMENT WITH MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), FOR THE PURPOSE OF MBCDC'S ACQUISITION AND
REHABILITATION OF THE BUILDING LOCATED AT 530 MERIDIAN AVENUE, TO PROVIDE 34 AFFORDABLE
HOUSING UNITS FOR ELDERLY, FORMERLY HOMELESS PERSONS.
Ke Intended Outeome Su orted:
Increase access to workforce or affordable housing; reduce the number of homeless
Issue:
Shall the Chairman and Members of the Redevelopment Agency of the City of Miami Beach, Florida, authorize the
appropriation of $1,500,000 to Miami Beach Community Development Corporation, for the acquisition and
rehabilitation of a building, located at 530 Meridian Avenue, for the purpose of providing 34 units of affordable
housin to elderl ,formerl homeless ersons?
Item Summa IReeommendation:
Miami Beach Community Development Corporation has entered into a purchase agreement with Carrfour Supportive
Housing for the purchase of the property located at 530 Meridian Avenue, currently known as Sunsouth Place
Apartments. The MBCDC has proposed converting the building into 34 units of affordable housing for elderly,
formerly homeless persons. Funding has been requested from the City to assist MBCDC in the
acquisition/rehabilitation of the property. This allocation would be contingent on MBCDC identifying and securing
additional funding to cover the balance ofthe acquisition costs and anticipated rehabilitation costs; no funding would
be allocated until such time as other funding commitments for acquisition/rehabilitation are in place and failure by
MBCDC to secure the balance of the acquisition/rehabilitation funds would result in the cancellation of any obligation
by the City to release these funds for this project. Should MBCDC fail to acquire the site, Carrfour has indicated that
they will sell the property in the open market to recoup their expenses and repay outstanding obligations on the
property, resulting in the loss of these affordable housing units to the community. In light of their ongoing carrying
costs, Carrfour has agreed to an extension of the purchase agreement with MBCDC of only 30 days, or until October
31, 2006. Because of this short timeline, it is necessary to bring this matter directly to the Redevelopment Agency for
their consideration. Due to the expiration of the South Pointe RDA, it is recommended that the Redevelopment
Agency authorize the appropriation of $1,500,000 in South Pointe RDA funds previously allocated for the 5th Street
and Alton Road Joint Venture to the City, so that the City may enter a loan/funding agreement with MBCDC for the
project. These RDA funds are not needed this year and will be replaced by South Pointe Capital Funds in future
ears. The a ro riation is recommended.
Advisory Board Reeommendation:
I
Finaneiallnformation:
[J Funds:
Amount Account Approved
1 $1,500,000 South Pointe RDA
o I I Total $1,500,000
Financial Impact Summary:
City Clerk's Offiee Legislative Traeking:
I
Si n-Offs:
Department Director
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MIAMI BEACH
AGENDA ITEM
DATE
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lD MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairman and Members of the Miami Beaeh Redevelopment Ageney
FROM: Jorge M. Gonzalez, City Manager ~ ~
DATE: Oetober 11,2006 U . 0
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY (RDA) APPROVING AND AUTHORIZING AN
APPROPRIATION TO THE CITY OF MIAMI BEACH FROM PREVIOUSLY
ALLOCATED SOUTH POINTE REDEVELOPMENT AREA FUNDS, IN THE
AMOUNT OF $1,500,000, TO BE UTILIZED BY THE CITY TO ENTER INTO A
LOAN AND/OR OTHER FUNDING AGREEMENT WITH MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC), FOR THE PURPOSE
OF MBCDC'S ACQUISITION AND REHABILITATION OF THE BUILDING
LOCATED AT 530 MERIDIAN AVENUE, TO PROVIDE 34 AFFORDABLE
HOUSING UNITS FOR ELDERLY, FORMERLY HOMELESS PERSONS
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
The Miami Beaeh Community Development Corporation, a HUD designated Community
Housing Development Organization (CHDO), has entered into a purehase agreement with
Carrfour Supportive Housing for the aequisition of the property loeated at 530 Meridian,
eurrently known as Sunsouth Plaee Apartments. As a result of ongoing issues with its
funders, Carrfour Supportive Housing has indieated to MBCDC and other funders that it will
no longer pursue eompletion of the Sunsouth Plaee projeet at 530 Meridian. Sunsouth
approaehed MBCDC regarding its interest in aequiring the property, for the purpose of
ensuring its eontinued availability to the eommunity as affordable housing.
The MBCDC has proposed to eonvert the building into 34 units of affordable housing for
elderly, formerly homeless persons. Funding has been requested from the City to assist
MBCDC in the aequisition of the property. This appropriation would be eontingent on
MBCDC identifying and seeuring additional funding for the balanee of the aequisition eosts
and antieipated rehabilitation eosts of the projeet; no funding would be alloeated to this
project until sueh time as other funding commitments are in plaee for this projeet, and failure
by MBCDC to seeure the balanee of the aequisition/rehabilitation funds would eaneel any
obligation by the City to release these funds for this projeet.
The funding source for this appropriation is reeommended as South Pointe RDA funds
previously alloeated for the 5th Street and Alton Road Joint Venture projeet. These funds are
not needed this year and will be replaeed by South Pointe Capital Funds in future years.
Page 2 of 3
MBCDC Funding - 530 Meridian Ave.
Beeause of the expiration of the South Pointe RDA, it is reeommended that these previously
alloeated RDA funds be appropriated to the City, for the purpose of the City entering a loan
and/or other funding agreement with MBCDC to aequire/rehabilitate this building. The loan
and/or funding agreement would inelude l;i minimum affordability period for the projeet.
The Carrfour projeet proposed seventy one (71) single room oeeupaney (SRO) units of
permanent housing for formerly homeless persons of approximately 148 sq. feet of living
spaee per unit, of whieh fifty-five (55) units were to be set aside speeifieally for Miami Beaeh
homeless persons. The layout of the units as eonfigured would have been units of minimal
size with shared bathrooms between units and sharing of kitehen faeility areas per floor.
MBCDC has indieated that they will pursue a projeet with rehabilitation resulting in 34 full
apartment units of an average size of 360 sq. feet. They propose to eonvert 2-3 units into
single units with individual bathrooms and kitehen faeilities to better serve the residents
oeeupying the units. The total projeet eost is approximately $6,629,000, ofwhieh $3,880,000
is for aequisition and soft eosts. The rehabilitation eosts are projeeted at $2,749,000. The
total projeet eost per sq. foot, ineluding aequisition and rehabilitation is $401. Total eost per
unit for MBCDC, ineluding aequisition and rehabilitation, will be $194,170. This total eost per
square foot/unit is impaeted by eurrent market eonditions and refleets a steady, industry-wide
trend of inereased eosts for rehabilitation. The purehase priee is supported by a reeently
eompleted appraisal.
MBCDC proposes to provide standard tenant serviees, and aeeept referrals from the City for
eligible residents.
The attaehed Exhibit A refleets the eurrent antieipated sourees and uses for the projeet.
Carrfour and MBCDC have had preliminary diseussions with the eurrent Sunsouth Plaee
projeet funders about the possibility of MBCDC assuming eurrent grants/loans provided to
the projeet under Carrfour's sponsorship. It is MBCDC's intention to pursue the maximum
assignment or re-programming offunds previously alloeated to Carrfour by otherfunders for
this projeet, as may be permitted. As per the attaehed, there is a eurrent purehase money
mortgage; an assignment of that mortgage to MBCDC is being pursued and appears likely.
However, due to the eurrent earrying eosts of the mortgage (10% interest), it is MBCDC's
intent to exereise an option to pay against prineipal to reduee the debt serviee to a level
manageable for an .affordable housing projeet. Diseussions also eontinue by MBCDC with
the State of Florida regarding the $1,000,000 alloeated to Carrfour for this projeet. As this
funding was alloeated through a demonstration program, the seope of the projeet has
ehanged (fewer units than initially funded) and the State has advised that they have not
previously permitted a ehange in projeet sponsor, it is uneertain whether or not MBCDC will
be able to retain some, or all, of this grant. MBCDC has met with the County regarding
existing funds alloeated to Carrfour ($1 ,400,000); a deeision on this alloeation is pending. A
new applieation was submitted by MBCDC to the County for $1,349,649 in rehabilitation
funds, but the applieation seore is impaeted by the eurrent laek of site eontrol. A new
applieation was submitted by MBCDC to the County for $1,349,649, but the applieation
seore was impaeted by the laek of site eontrol. MBCDC also applied for additional funding in
the amount of $3,000,000 through the Florida Housing Finanee Corporation's Speeial
Housing Assistanee and Development Program (SHADP). These funds are awarded on a
eompetitive basis by applieation to fund rental housing provided by nonprofits, publie
housing authorities and other providers of affordable housing. Any funds awarded to
MBCDC will be used to offset the aequisition/rehabilitation of the projeet. If sueeessful in
reeeiving the funding requested of this and other funding sourees, these funds will be
applied to the aequisition/rehabilitation eosts of the projeet and the City's alloeation to the
projeet will be adjusted, aeeordingly. As you are aware, on Deeember 12, 2003, the City of
Miami Beaeh previously awarded U.S. Housing and Urban Development (HUD) HOME
Page 3 of 3
MBCOC Funding - 530 Meridian Ave.
funding in the amount of $309,469 to Carrfour for the Sunsouth Plaee projeet; a
reimbursement request is pending review.
As a result of the ongoing earrying eosts, Carrfour has agreed to an extension of the
purehase agreement of only 30 days, or until Oetober 31, 2006. In light of this short timeline,
it is neeessary to bring this matter direetly to the Mayor and City Commission for their
eonsideration.
The Administration has reviewed the doeumentation submitted by MBCDC deseribing the
proposed aetivities and has eoneluded that the supportive housing is eonsistent with the
City's Consolidated Plan. The Consolidated Plan identifies long term objeetives in Chapter
4, "Five Year Strategy". Under the Homelessness Strategy (Continuum of Care), page 54,
the Plan states: "...to effeetively address the needs of the homeless, a eombination of
serviees (often provided by different ageneies) must be brought together in a eoordinated
manner to help move a family from homelessness to self-suffieieney." The Plan further
states: "When the underlying problem is eeonomie, a more eomprehensive governmental
response that ineludes soeial serviees, job training, and affordable housing is needed in
order to move low-ineome households from homelessness and governmental dependeney to
self-suffieieney." Should MBCDC fail to aequire the site, Carrfour has indieated that they will
sell the property in the open market to reeoup their expenses and repay outstanding
obligations on the property. It is likely that the property would no longer be available as
affordable housing.
The appropriation of funds to MBCDC for the aequisition of this property to seeure its use as
affordable housing for elderly, formerly homeless persons direetly supports two of our City's
Key Intended Outeomes: Inereasing aeeess to workforee or affordable housing and redueing
the number of homeless persons.
MBCDC has a long history of sueeessfully developing affordable housing projeets in the City
of Miami Beaeh, with more than 200 units of housing developed to date. The projeets,
ranging from family housing, elderly and HIV housing, have leveraged thousands of dollars
in non-City funding. The attaehed Exhibits B-1 and B-2 refleet MBCDC's traek reeord in
seeuring non-City sourees offunding for projeets that have developed, or are in the proeess
of developing, on Miami Beaeh.
CONCLUSION
The administration reeommends that the Chairman and the Members of the Redevelopment
Ageney approve and authorize an appropriation in the amount of $1,500,000 in South Pointe
RDA funds previously alloeated for the 5th Street and Alton Road Joint Venture projeet, to
the City of Miami Beaeh, to be utilized by the City to enter a loan and/or other funding
agreement with the MBCDC, for the purpose of MBCDC aequiring and rehabilitating the
projeet loeated at 530 Meridian Avenue as 34 units of affordable housing for elderly, formerly
homeless persons.
T:\AGENDA\2006\oct11 06\Regular\RDA MBCDC 530 Meridian memo.doc
EXHIBIT A
Miami Beach Development Corp. 530 Meridian Ave.
SOURCES AND USES STATEMENT
ACQUISITION
SOURCES
Purchase Money Mortgage 1,180,000
Ci!y of Miami Beaeh ROA 1,500,000
-' .
State of Florida (Existing Funding need approval 1,000,000
City or Miami Beach HOME set a side 200,660
Total Sources 3.880,000
USES
Contract Priee 3.800,000
Closing Costs 80,000
T atal Uses 3,880000
SOURCES AND USES STATEMENT
REHABILITATION
SOURCES
Miami Dade County (Existing Funding) 1,400,000
Miami Dade County 2007 1,349,649
2 749.649
USES
Rehabilitation 2,000,000
Soft Costs 749,000
Total Uses 2,749,000
I TOTAL PROJECT COST
6,629,000 J
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N
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