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2007-26454 Reso RESOLUTION NO. 2007-26454 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING, PURSUANT TO SECTION 163.361, PART III, FLORIDA STATUTES (ALSO KNOWN AS THE "COMMUNITY REDEVELOPMENT ACT OF 1969"), ON WEDNESDAY, MARCH 14, 2007 AT 10:00 A.M., TO CONSIDER ACCEPTING A RECOMMENDATION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), TO AMEND SECTION 406, ENTITLED "HOUSING ELEMENT ADDENDUM" (THE AFFORDABLE HOUSING COMPONENT), OF THE CITY CENTER RDA REDEVELOPMENT AND REVITALIZATION AREA PLAN, DATED FEBRUARY 1,1991, AND ADOPTED BY MIAMI-DADE COUNTY ON MARCH 30, 1993 (THE PLAN); SAID PLAN AMENDMENT TO ENABLE THE RDA TO CREATE AND FUND NEW AFFORDABLE HOUSING OPPORTUNITIES WITHIN THE CITY CENTER RDA FOR "WORKFORCE HOUSING" FOR FAMILIES EARNING BETWEEN 120% TO 140% OF AREA MEDIAN INCOME (AMI) (WHO WOULD OTHERWISE NOT QUALIFY UNDER THE EXISTING AFFORDABLE HOUSING INCOME THRESHOLDS FOR LOW AND MODERATE INCOME [UP TO 120% AMI] INDIVIDUALS AND FAMILIES WHO ARE CURRENTLY ELIGIBLE UNDER, AND SERVED BY, CURRENT CITY OF MIAMI BEACH AND RDA AFFORDABLE HOUSING PROGRAMS AND INITIATIVES);AND PROVIDED FURTHER THAT THE "WORKFORCE" HOUSING FAMILIES SHALL ALSO INCLUDE FAMILIES WITH INDIVIDUALS WHO ARE EMPLOYED AS "ESSENTIAL SERVICES PERSONNEL", AS SAID TERM SHALL BE DEFINED BY THE CITY AND RDA (AND WHO WOULD ALSO NOT QUALIFY UNDER THE AFORESTATED CURRENT LOW AND MODERATE INCOME THRESHOLDS) . WHEREAS, on January 17, 2007, the Chairman and Members of the Miami Beach Redevelopment Agency (RDA) adopted RDA Resolution No. 542-2007, and directed the Executive Director to proceed with the necessary regulatory steps to amend the applicable housing sections in the City Center Redevelopment and Revitalization Area Plan, dated February 1, 1991 and adopted by Miami-Dade County on March 30, 1993 (the Plan), to create and fund new opportunities within the City Center RDA for "Workforce Housing" for families (which would include families with individuals employed as "essential services personnel", as said term would further be defined) who, because of their income, would otherwise not qualify for housing assistance under the City of Miami Beach, State, and/or Federal, respectively, guidelines for low and moderate income affordable housing programs, which typically are available only for individuals and families earning below 120% or less of Area Median Income (AMI) ; and WHEREAS, the affordable housing component of the Plan is currently consistent with the City of Miami Beach's overall affordable housing strategy and guidelines, as set forth in the City's adopted Five Year Consolidated Action Plan and the Local Housing Assistance Plan, respectively; and WHEREAS, the City, State and Federally funded programs that are in place, only target individuals families earning 120% or less of AMI; and WHEREAS, as directed by the RDA, the Executive Director has prepared the attached Plan Amendment, amending Section 406 therein, entitled "Housing Element Addendum", (which Section encompasses the required affordable housing component of the Plan); and WHEREAS, by allowing the RDA to create and fund new affordable housing opportunities for families whose AMI is between 120% and 140% (and therefore would otherwise not qualify under the existing thresholds for low and moderate income, or less than 120% AMI), the proposed Plan Amendment would serve to attract and retain segments of the City's workforce, including families with individuals employed as "essential services personnel", which may include public employees, low paid professionals, and others employed on Miami Beach in key occupations that support the local community (hospital workers, teachers and certain essential and emergency services personnel); and WHEREAS, to that end the proposed Plan Amendment would also enable the RDA to define (at a later date), within this targeted 120% - 140% AMI category, workforce affordable housing opportunities for the aforestated families, including those families with individuals employed as "essential services personnel"; and WHEREAS, the proposed Plan Amendment would not only allow for the use of RDA funding to acquire and/or renovate property to accommodate workforce housing, but also provide the opportunity to leverage funding from certain new and proposed programs specifically geared towards households earning greater than 120% of AMI; and WHEREAS, adoption of this Plan Amendment is also consistent with Miami-Dade County's ongoing efforts to address new affordable housing initiatives and, in particular, initiatives for workforce housing and housing for essential services personnel. 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 hereby set a Public Hearing, pursuant to Section 163.361, Part III, Florida Statutes (Also known as the "Community Redevelopment Act of 1969"), On Wednesday, March 14,2007 at 10:00 A.M., to consider accepting a recommendation of the Chairman and Members of the Miami Beach Redevelopment Agency (RDA), to amend Section 406, entitled "Housing Element Addendum" (the Affordable Housing Component), of the City Center RDA Redevelopment and Revitalization Area Plan, dated February 1, 1991, and adopted by Miami-Dade County on March 30, 1993 (the Plan); said Plan Amendment to enable the RDA to create and fund new affordable housing opportunities within the City Center RDA for "Workforce Housing", for families earning between 120% to 140% of Area Median Income (AMI) (who would otherwise not qualify under the existing affordable housing income thresholds for low and moderate income individuals and families who are currently eligible under, and seNed by, current City of Miami Beach and RDA affordable housing programs and initiatives); and provided further that the "workforce" housing families shall also include families with individuals who are employed as "Essential SeNices Personnel", as said term shall be defined by the City and the RDA (and who would also not qualify under the aforestated current low and moderate income thresholds). PASSED and ADOPTED this 14th day of Fe ruar ,2007. ATTEST: Ulw6 P!4~ CITY CLERK Robert Parcher T:\AGENDA\2007\feb 1407\Consent\Workforce Housing Reso.doc APPROVED AS TO FORM & LANGUAGE & FOR UTION ~ 'V 'V, ~ COMMISSION ITEM SUMMARY Condensed Title: A Resolution setting a public hearing on Wednesday, March 14, 2007, at 10:00 a.m., to consider accepting a recommendation from the RDA to amend the Affordable Housing component of the City Center RDA Plan, that would enable the RDA to create and fund new affordable housing opportunities within the City Center RDA for Workforce Housing, for families earning between 120% and 140% of Area median Income (AMI). Ke Intended Outcome Su orted: Increase access to workforce or affordable housing Issue: Should the City accept the recommendation of the RDA to amend the City Center RDA Plan, to allow for Workforce Housin 0 ortunities? Item Summary/Recommendation: On January 17, 2007, the RDA Board directed the Administration to proceed with the necessary regulatory steps to amend the applicable housing sections in the City Center Redevelopment and Revitalization Area Plan (the Plan), to create and fund new opportunities within the City Center RDA for "Workforce Housing." The Plan currently only provides for retaining the existing stock of low-moderate, affordable housing units in the City Center area and to minimize the loss of these units, by creating opportunities for affordable housing within and in close proximity to the City Center RDA, utilizing existing State and Federally funded programs administered through the Miami Beach Community Development Corporation (MBCDC). The issue is that the programs that are in place, only target families earning 60% or less of Area median Income (AMI) in rental programs, and those earning 120% or less of AMI in home ownership programs. Pursuant to the direction of the RDA Board, the Administration has drafted certain proposed changes to the Plan, in order to allow for the RDA to participate in programs aimed at attracting workforce housing, specifically targeting families earning between 120% and 140% of AMI. The purpose of the proposed Plan Amendment would be to attract and retain public employees, low paid professionals, and others employed on Miami Beach in key occupations that support the local community (mainly, teachers and certain essential and emergency services personnel). The proposed Amendment will not only allow for the use of RDA funding to acquire and/or renovate property to accommodate workforce housing, but also provides the opportunity to leverage funding from certain new and proposed programs, specifically geared towards households earnina areater than 120% of AMI. Adviso Board Recommendation: Finance & Citywide Projects Committee, Dec 21, 2006 - Commissioner Libbin to meet individually with County Commissioners to discuss concept of proposed Plan Amendment Neighborhoods/Community Affairs Committee, Jan 11, 2007 - Recommendation to proceed with ro osed Plan Amendment. Financial Information: Source of Amount Account Approved Funds: 1 N/A N/A N/A I I 2 OBPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin Kent Bonde, Ext#6363 Si n-Offs: Redevelopment ordinator KOB \ JMG C-7F ,?---It(-07 m -..v MIAMIBEACH AGENDA ITEM DATE ~ MIAMI BEACH City of Miami Beach, 1700 Conventian Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: ANALYSIS COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager ~4 February 14, 2007 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING, PURSUANT TO SECTION 163.361, PART III, FLORIDA STATUTES (ALSO KNOWN AS THE "COMMUNITY REDEVELOPMENT ACT OF 1969"), ON WEDNESDAY, MARCH 14,2007 AT 10:00 A.M., TO CONSIDER ACCEPTING A RECOMMENDATION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), RECOMMENDING AN AMENDMENT TO THE AFFORDABLE HOUSING COMPONENT OF THE CITY CENTER RDA REDEVELOPMENT AND REVITALIZATION AREA PLAN, DATED FEBRUARY 1, 1991, AND ADOPTED BY MIAMI-DADE COUNTY ON MARCH 30, 1993 (THE PLAN); SAID PLAN AMENDMENT TO ENABLE THE RDA TO HELP CREATE AND FUND NEW AFFORDABLE HOUSING OPPORTUNITIES WITHIN THE CITY CENTER RDA FOR "WORKFORCE HOUSING", FOR FAMILIES EARNING BETWEEN 120% TO 140% OF AREA MEDIAN INCOME (AMI), WHO WOULD OTHERWISE NOT QUALIFY UNDER THE EXISTING AFFORDABLE HOUSING INCOME THRESHOLDS FOR LOW AND MODERATE INCOME (UP TO 120% AMI) INDIVIDUALS AND FAMILIES WHO ARE CURRENTLY ELIGIBLE UNDER, AND SERVED BY, CURRENT CITY OF MIAMI BEACH AND RDA AFFORDABLE HOUSING PROGRAMS AND INITIATIVES. On January 17, 2007, the RDA Board directed the Administration to proceed with the necessary regulatory steps to amend the applicable housing sections in the City Center Redevelopment and Revitalization Area Plan (the Plan), to create and fund new opportunities within the City Center RDA for "Workforce Housing." The Plan currently only provides for retaining the existing stock of low-moderate, affordable housing units in the City Center area and to minimize the loss of these units, by creating opportunities for affordable housing within and in close proximity to the City Center RDA, utilizing existing State and Federally funded programs administered through the Miami Beach Community Development Corporation (MBCDC). The issue is that the programs that are in place only target families earning 60% or less of Area Median Income (AMI) in rental programs, and those earning 120% or less of AMI in home ownership programs. City Commission Memorandum February 14, 2007 Proposed Workforce Housing Amendment Page 2 of 3 Pursuant to the direction of the RDA Board, the Administration has drafted the attached proposed changes to the Plan, in order to allow for the RDA to participate in programs aimed at attracting workforce housing, specifically targeting families earning between 120% and 140% of AMI. Similar to the recently enacted County Workforce Housing Ordinance, the purpose of the proposed Plan would be to attract and retain "essential service personnel", which pursuant to the City's Local Housing Assistance Plan, would apply to income-eligible employees of Miami Beach businesses and organizations in the following industries: a. Accommodations and food services (including arts, entertainment and recreation); b. Retail trade; c. Public administration (including City of Miami Beach employees and emergency personnel); d. Health care, and e. Education (including public school district employees) The proposed amendment to the Plan will not only allow for the use of RDA funding to acquire and/or renovate property to accommodate workforce housing, but also provides the opportunity to leverage funding from certain new and proposed programs, specifically geared towards households earning greater than 120% of AMI. This includes the State of Florida's new Community Workforce Housing Innovation Pilot Program (CWHIP), designed to use regulatory incentives and State and local funds to leverage government and private sources to provide forgivable loans for construction and rehabilitation of workforce housing. The Administration expects that during the upcoming legislative session, the Florida Legislature will make the CWHIP program permanent. The creation of this program increased the income criteria for housing assistance up to 140% of AMI. The proposed amendment conforms the Redevelopment Plan to allow for the provision of affordable housing to households earning the income ranges that are eligible for participation in State and federally funded programs. Additionally, this amendment provides the Redevelopment Agency with an additional opportunity to leverage funding with other available sources, should an opportunity present itself, while providing maximum flexibility for the retention and provision of housing depending on the requirements of the other funding sources. This amendment will allow the continued provision of housing to the neediest of residents, while improving the financial feasibility of projects by allowing for more of a 'mixed-income' tenant mix with some households earning up to 140% of AMI. Adoption of this plan amendment is consistent with Miami-Dade County's ongoing efforts to address affordable and workforce housing. In addition to many workforce housing initiatives that have been proposed by various County Commissioners, on May 9, 2006, the Board of County Commissioners (BCC) established the Community Affordable Housing Strategies Alliance (CAHSA), to assist in addressing the housing crisis in Miami-Dade County. City staff participated in various subcommittees of the Alliance, and contributed to its final recommendations. The proposed Plan Amendment is consistent with a number of the recommendations presented by CAHSA to the BCC, including: . Projects should reflect neighborhood revitalization goals; . Increase coordination offunding activities between the county and the municipalities; . Identify funding resources to assist owners in rehabilitating project-based buildings under expiring contracts; . Prioritize rental housing due to the loss of rental units; . Create new and enhanced mechanisms for additional funding at a local level for affordable housing, including TIF; City Commission Memorandum February 14, 2007 Proposed Workforce Housing Amendment Page 3 of 3 . Preservation of existing affordable rental housing is essential in addressing the county's housing crisis. The county should design their programs to compliment the state programs; . CRAs have their own incremental tax funding source, which can be used for housing. TIF could be used to buy down the cost of land/property or acquisition/rehab for rental properties of a housing development. An RFA for development of affordable housing could be offered to employers or developers. Priority should be given to potential tenants or owners who are employees of employers within the CRA or adjacent geographical areas; . All existing and future publicly financed housing related programs should contain an Employer Assistance Housing element; . The committee endorses participation in the CWHIP Program Based on the process that was outlined in the attached copy of the LTC dated January 24, 2007, and subject to final approval of the proposed Plan Amendment by the City Commission on March 14, 2007, the Amendment shall be forwarded to the County for consideration and final approval by the Board of County Commissioners, which, as also noted in the LTC, is not anticipated before October, 2007. JMGITH/HF/KC/KOB Attachments T\AGENDA\2007\feb1407\Consent\Workforce Housing Memo.doc Proposed Amendment to Section 406 of the City Center Redevelopment and Revitalization Area Plan (To enable the RDA to create and fund new affordable housing opportunities within the City Center RDA for "Workforce Housing", for families earning between 120% to 140% of Area Median Income (AMI)): To be inserted following existing language in Section 406: "Additionally, beyond the aforestated (and other existing) programs established by the City of Miami Beach, the City and the Agency recognize that such affordable housing programs have traditionally targeted individuals and families within the low-income and moderate-income threshold categories (as those thresholds may be defined and periodically updated within such respective affordable housing programs). Due to dramatic increases in housing costs, coupled with modest rises in income, many middle-income families who may not otherwise qualify under the low and moderate-income affordable housing programs utilized in the project area, are being effectively "priced out" of the rental and home ownership market available within the Historic Convention Village Redevelopment and Revitalization Area. This includes individuals in families who are employed in "essential services" occupations such as teachers, hospital workers, public administration/governmental employees, and others, who do not qualify for existing affordable housing programs. Accordingly, in order to meet existing and future housing needs for working families whose income may typically make them ineligible for existing affordable housing programs, the Redevelopment Plan will seek alternative opportunities for the Agency to create new affordable housing opportunities within the project area, whether through the acquisition and/or rehabilitation of existing housing, and/or the creation of new affordable housing developments. These proposed new affordable housing programs for "workforce housing" families (including housing for "essential services" personnel) would be implemented and administered subject to rules and regulations establishing (without limitation) guidelines for eligibility, qualifications, and income thresholds, which would be adopted by the Chairman and Members of the Miami Beach Redevelopment Agency, and ratified by the Mayor and City Commission of the City of Miami Beach, Florida." Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager, /''6' January 24,2007 0 Anticipated Timeline to Amend the Affordable Housing Component of the City Center RDA Redevelopment and Revitalization Area Plan & - MIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC # 017-2007 TO: FROM: DATE: SUBJECT: LETTER TO COMMISSION Pursuant to the direction of the Miami Beach Redevelopment Agency (RDA) Board at its meeting on January 17, 2007, Staff has initiated the process required to amend the affordable housing component of the City Center RDA Redevelopment and Revitalization Area Plan for the express purpose of il"\~ing Workforce Housing. As previously reported. there are a total of nine steps involved in the process, the first of which is a courtesy meeting with the County's TIF Committee. We have requested to be scheduled on the Committee's agenda for its meeting on February 12, 2007. It should be noted that the Committee has advised us that no action or recommendation will be forthcoming at this meeting, as the proposed amendment must come back to them for formal approval, once it has been formally adopted by the City and the RDA. Based on the published calendar of County Commission meetings for 2007. and barring any com plications or delays, Staff believes that the earliest date for formal adoption of the proposed Amendment by the Board of County Commissioners (BCC), would be on October 16, 2007: Action Ste Courtesy meeting with County's TIF Committee Ci Commission - referral to Finance Committee City Commission - setting of Public Hearing to consider ro osed Amendment Finance Committee meeting to consider ro osed Amendment City Commission - Public Hearing and formal a roval of ro osed Amendment TIF Committee Meeting for formal consideration and referral to Community Empowerment and Economic Revitalization Committee CEERC CEERC Meeting to consider proposed Amendment Board of County Commission (BCC) - setting of Public Hearin to consider Amendment BCC - Public Hearing and final approval of ro osed A dment Antici atedlTar et Date February 12 , 2007, (as part of the previously scheduled Ci Center FY 06/07 Bud et review. - Done - Februa 14, 2007 Februa 22, 2007 March 14, 2007 7,2007 June 12 or Jul 17.2007 (") ,...,. c:::il -4 c:::il (... .;;U ("") > rn :z: n ITl f') :::0 0' m ~ .- c.n > < C> :x m ""Tl 9 0 ..,., n w ,....., &" October 2 or October 16, 2007 403. Enforcement of Plan The provisions of the plan and other documents formulated pursuant thereto may be enforced by the Agency in any manner authorized by law and pursuant to the terms of Disposition Documents and other applicable agreements pertaining to the plan. 404. Procedure for Amendment This Plan may be amended in any manner that is now or hereafter permitted by law. 405. Severability If any provision, section, subsection, subdivision, sentence, clause or phrase of the plan is for any reason held to be invalid or unconstitutional, such decision shall not ct the validity of the remaining portion or portions of the plan. 406. Housing Element Addendum The Proposed Historic Convention Village Redevelopment and Revitalization Area contains almost 4,700 residential units, of which approximately 2,000 are occupied by low-moderate income families. The Redevelopment plan does not envision acquisition of any of these moderate income housing units, nor does it call for displacing any of the area's residents. In fact, the Redevelopment Agency hopes to create an additional 200 units through a combination of new construction and rehabilitation throughout the area. Additionally, the City of Miami Beach has recently adopted a H.U.D approved five-year Comprehensive Housing Affordability Strategy (CHAS), which also directly benefits the proposed Redevelopment Area. This Citywide strategy addresses rental housing needs for the elderly, small and large related households, and first-time homebuyers. Special housing programs funded through Community Development Block Grant (CDBG) money, are already in place and have been responsible for creating over 1,000 affordable rehabilitated housing units in the South Beach area. These programs include: . The City's Multi-Family Residential Rehabilitation Pro gram, . Miami Beach Development Corporation's Homeownership Program which also taps County Surtax dollars and CDBG dollars, 18 . The H.D.D. Rental Rehabilitation Program, and . The new federally funded HOME Program which has allocated $1.8 million in 1992 and $1.2 million in 1993. These programs will continue to be utilized in the project area to rehabilitate existing housing and to help create new affordable housing development. Additionally, beyond the aforestated (and other existing) programs established by the City of Miami Beach, the City and the Agency recognize that such affordable housing programs have traditionally targeted individuals and families within the low-income and moderate- income threshold categories (as those thresholds may be defined and periodically updated within such respective affordable housing programs). Due to dramatic increases in housing costs, coupled with modest rises in income, many middle-income families who may not otherwise qualify under the low and moderate-income affordable housing programs utilized in the project area, are being effectively "priced out" of the rental and home ownership market available within the Historic Convention Village Redevelopment and Revitalization Area. This includes individuals in families who are employed in "essential services" occupations such as teachers, hospital workers, public administration/governmental employees, and others, who do not qualify for existing affordable housing programs. Accordingly, in order to meet existing and future housing needs for working families whose income may typically make them ineligible for existing affordable housing programs, the Redevelopment Plan will seek alternative opportunities for the Agency to create new affordable housing opportunities within the project area, whether through the acquisition and/or rehabilitation of existing housing, and/or the creation of new affordable housing developments. These proposed new affordable housing programs for "workforce housing" families (including housing for "essential services" personnel) would be implemented and administered subject to rules and regulations establishing (without limitation) guidelines for eligibility, qualifications, and income thresholds, which would be adopted by the Chairman and Members of the Miami Beach Redevelopment Agency, and ratified by the Mayor and City Commission of the City of Miami Beach, Florida.