HomeMy WebLinkAbout2006-26372 Reso
RESOLUTION NO. 2006-26372
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AN
APPROPRIATION, IN THE AMOUNT OF $1,500,000, FROM
PREVIOUSLY ALLOCATED SOUTH POINTE REDEVELOPMENT
AGENCY FUNDS, TO BE UTILIZED BY THE CITY FOR THE
PURPOSE OF ENTERING 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, 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 portion 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, 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, 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 of the
former South Point RDA; and
WHEREAS, due to the expiration of the South Point RDA, it is recommended that
loan funds be allocated to the City for the City to enter a loan and/or other funding
agreement with MBCDC for 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 MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission accept an appropriation from the Redevelopment Agency of $1,500,000 of
previously allocated South Pointe Redevelopment Agency (RDA) funds, to be utilized by
the City as a loan and/or other funding agreement with the Miami Beach Community
Development Corporation (MBCDC), for the purpose of 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 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.
PASSED and ADOPTED this 11th day of 0
David Dermer
ATTEST:
~\' p~
CITY CLERK
Robert Parcher
T:\AGENDA\2006\oCT11 06\REGULAR\MBCDC 530 MERIDIAN RESO.DOC
. COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING AN APPROPRIATION, IN THE AMOUNT OF $1,500,000, FROM PREVIOUSLY ALLOCATED SOUTH
POINTE REDEVELOPMENT AGENCY FUNDS, TO BE UTILIZED BY THE CITY FOR THE PURPOSE OF
ENTERING 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 AFORESTA TED CITY LOAN/FUNDING AGREEMENT TO
MBCDC
Ke Intended Outcome Su orted:
Increase access to workforce or affordable housing; reduce the number of homeless
Item Summary/Recommendation:
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 of the 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 ofthe 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 ofthis 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 City accept an
appropriation of $1,500,000 from the RDA 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
years.
Advisory Board Recommendation:
I
Financial Information:
~ Funds:
Amount Account Approved
1 $1,500,000 South Pointe RDA
PI Total $1,500,000
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
I
Si n-Offs:
Department Director
City Manager
m
...,.
MIAMI BEACH
AGENDA ITEM
DATE
R1G-
to-a -O(d
lD
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager t~
DATE: October 11,2006 0 0
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING AN APPROPRIATION, IN THE AMOUNT
OF $1,500,000, FROM PREVIOUSLY ALLOCATED SOUTH POINTE
REDEVELOPMENT AGENCY FUNDS, TO BE UTILIZED BY THE CITY FOR
THE PURPOSE OF ENTERING 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
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
The Miami Beach Community Development Corporation, a HUD designated Community
Housing Development Organization (CHDO), has entered into a purchase agreement with
Carrfour Supportive Housing for the acquisition of the property located at 530 Meridian,
currently known as Sunsouth Place Apartments. As a result of ongoing issues with its
funders, Carrfour Supportive Housing has indicated to MBCDC and other funders that it will
no longer pursue completion of the Sunsouth Place project at 530 Meridian. Sunsouth
approached MBCDC regarding its interest in acquiring the property, for the purpose of
ensuring its continued availability to the community as affordable housing.
The MBCDC has proposed to convert 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 of the property. This appropriation would be contingent on
MBCDC identifying and securing additional funding for the balance of the acquisition costs
and anticipated rehabilitation costs of the project; no funding would be allocated to this
project until such time as other funding commitments are in place for this project, and failure
by MBCDC to secure the balance of the acquisition/rehabilitation funds would cancel any
obligation by the City to release these funds for this project.
Page 2 of 3
MBCDC Funding - 530 Meridian Ave.
The funding source for this appropriation is recommended as South Pointe RDA funds
previously allocated for the 5th Street and Alton Road Joint Venture project. These funds are
not needed this year and will be replaced by South Pointe Capital Funds in future years.
Because of the expiration of the South Pointe RDA, it is recommended that these previously
allocated RDA funds be appropriated to the City, for the purpose of the City entering a loan
and/or other funding agreement with MBCDC to acquire/rehabilitate this building. The loan
and/or funding agreement would include a minimum affordability period for the project.
The Carrfour project proposed seventy one (71) single room occupancy (SRO) units of
permanent housing for formerly homeless persons of approximately 148 sq. feet of living
space per unit, of which fifty-five (55) units were to be set aside specifically for Miami Beach
homeless persons. The layout of the units as configured would have been units of minimal
size with shared bathrooms between units and sharing of kitchen facility areas per floor.
MBCDC has indicated that they will pursue a project with rehabilitation resulting in 34 full
apartment units of an average size of 360 sq. feet. They propose to convert 2-3 units into
single units with individual bathrooms and kitchen facilities to better serve the residents
occupying the units. The total project cost is approximately $6,629,000, of which $3,880,000
is for acquisition and soft costs. The rehabilitation costs are projected at $2,749,000. The
total project cost per sq. foot, including acquisition and rehabilitation is $401. Total cost per
unit for MBCDC, including acquisition and rehabilitation, will be $194,170. This total cost per
square foot/unit is impacted by current market conditions and reflects a steady, industry-wide
trend of increased costs for rehabilitation. The purchase price is supported by a recently
completed appraisal.
MBCDC proposes to provide standard tenant services, and accept referrals from the City for
eligible residents.
The attached Exhibit A reflects the current anticipated sources and uses for the project.
Carrfour and MBCDC have had preliminary discussions with the current Sunsouth Place
project funders about the possibility of MBCDC assuming current grants/loans provided to
the project under Carrfour's sponsorship. It is MBCDC's intention to pursue the maximum
assignment or re-programming of funds previously allocated to Carrfour by other funders for
this project, as may be permitted. As per the attached, there is a current purchase money
mortgage; an assignment of that mortgage to MBCDC is being pursued and appears likely.
However, due to the current carrying costs of the mortgage (10% interest), it is MBCDC's
intent to exercise an option to pay against principal to reduce the debt service to a level
manageable for an affordable housing project. Discussions also continue by MBCDC with
the State of Florida regarding the $1,000,000 allocated to Carrfour for this project. As this
funding was allocated through a demonstration program, the scope of the project has
changed (fewer units than initially funded) and the State has advised that they have not
previously permitted a change in project sponsor, it is uncertain whether or not MBCDC will
be able to retain some, or all, of this grant. MBCDC has met with the County regarding
existing funds allocated to Carrfour ($1 ,400,000); a decision on this allocation is pending. A
new application was submitted by MBCDC to the County for $1,349,649 in rehabilitation
funds, but the application score is impacted by the current lack of site control. MBCDC also
applied for additional funding in the amount of $3,000,000 through the Florida Housing
Finance Corporation's Special Housing Assistance and Development Program (SHADP).
These funds are awarded on a competitive basis by application to fund rental housing
provided by nonprofits, public housing authorities and other providers of affordable housing.
Any funds awarded to MBCDC will be used to offset the acquisition/rehabilitation of the
project. If successful in receiving the funding requested of this and other funding sources,
these funds will be applied to the acquisitionlrehabilitation costs of the project and the City's
allocation to the project will be adjusted, accordingly. As you are aware, on December 12,
Page 3 of 3
MBCDC Funding - 530 Meridian Ave.
2003, the City of Miami Beach previously awarded U.S. Housing and Urban Development
(HUD) HOME funding in the amount of $309,469 to Carrfour for the Sunsouth Place project;
a reimbursement request is pending review.
As a result of the ongoing carrying costs, Carrfour has agreed to an extension of the
purchase agreement of only 30 days, or until October 31, 2006. In light of this shorttimeline,
it is necessary to bring this matter directly to the Mayor and City Commission for their
consideration.
The Administration has reviewed the documentation submitted by MBCDC describing the
proposed activities and has concluded that the supportive housing is consistent with the
City's Consolidated Plan. The Consolidated Plan identifies long term objectives in Chapter
4, "Five Year Strategy". Under the Homelessness Strategy (Continuum of Care), page 54,
the Plan states: "...to effectively address the needs of the homeless, a combination of
services (often provided by different agencies) must be brought together in a coordinated
manner to help move a family from homelessness to self-sufficiency." The Plan further
states: "When the underlying problem is economic, a more comprehensive governmental
response that includes social services, job training, and affordable housing is needed in
order to move low-income households from homelessness and governmental dependency to
self-sufficiency." 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. It is likely that the property would no longer be available as
affordable housing.
The appropriation of funds to MBCDC for the acquisition of this property to secure its use as
affordable housing for elderly, formerly homeless persons directly supports two of our City's
Key Intended Outcomes: Increasing access to workforce or affordable housing and reducing
the number of homeless persons.
MBCDC has a long history of successfully developing affordable housing projects in the City
of Miami Beach, with more than 200 units of housing developed to date. The projects,
ranging from family housing, elderly and HIV housing, have leveraged thousands of dollars
in non-City funding. The attached Exhibits B-1 and B-2 reflect MBCDC's track record in
securing non-City sources offunding for projects that have developed, or are in the process
of developing, on Miami Beach.
CONCLUSION
The administration recommends that the Mayor and City Commission accept an
appropriation in the amount of $1 ,500,000 in South Pointe RDA funds previously allocated
for the 5th Street and Alton Road Joint Venture project, to be utilized by the city for the
purpose of entering a loan and/or other funding agreement with the MBCDC, for the purpose
of MBCDC acquiring and rehabilitating the project located at 530 Meridian Avenue as 34
units of affordable housing 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.
T:\AGENDA\2006\oct1106\Regular\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
8-ty of Miami Beach ROA 1,500,000
State of Florida (Existing Fundina need approval 1,000,000
CItY or MiamI Beach HOME sel a side 200,660
T olal Sources 3.880,000
USES
Contract Price 3,800,000
Closing Costs 80,000
Total Uses 3,880,000
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 I 2,749,000
I TOTAL PROJECT COST
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