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2000-24055 RESORESOLUTION NO. 2000-24055 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT, DATED MAY 24, 2000, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING AN ADDITIONAL FIFTY THOUSAND DOLLARS ($50,000) TOWARDS THE COST OF ACQUISITION AND REHABILITATION OF ONE ADDITIONAL ONE -BEDROOM CONDOMINIUM UNIT, LOCATED AT 7133 BAY DRIVE, MIAMI BEACH, TO PROVIDE RENTAL HOUSING FOR INCOME -ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. WHEREAS, the City has established a HOME Investment Partnerships Program (HOME Program) under the rules of the 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, the City has determined the necessity for providing affordable housing in the City through its Consolidated Plan, adopted by Resolution No. 98-22814 on July 1, 1998, and its One -Year Action Plan for Federal Funds for fiscal year 1999/2000, adopted by Resolution No. 99- 23238 on July 7, 1999, as amended; and WHEREAS, on January 31, 2000, the City issued a HOME Program Notice of Funding Availability (NOFA) in the amount of $1,181,653 for the acquisition and/or rehabilitation of multi- family rental buildings or scattered sites for the purpose of providing affordable rental housing; and WHEREAS, on May 24, 2000, the City adopted Resolution No. 2000-23939, authorizing a HOME Program Agreement between the City and MBCDC providing $376,400 from the HOME Program NOFA towards the acquisition and rehabilitation of seven condominium units in the Knightsbridge Condominium, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program requirements; and WHEREAS, the City's Loan Review Committee, on July 21, 2000, reviewed and recommended the approval of an application from MBCDC for funding from the HOME Program NOFA in the amount of $50,000, towards the cost of acquisition and rehabilitation of one additional one -bedroom condominium unit in the Knightsbridge Condominium, to provide rental housing for income -eligible elderly tenants in accordance with the of the HOME Program requirements. 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 a First Amendment to the Home Investment Partnerships Program Agreement, dated May 24, 2000, between the City of Miami Beach and Miami Beach Community Development Corporation (MBCDC), providing an additional Fifty Thousand Dollars ($50,000) towards the cost of acquisition and rehabilitation of one additional one -bedroom condominium unit, located at 7133 Bay Drive, Miami Beach, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program Requirements. PASSED AND ADOPTED THIS 13th DAY OF September , 2000 ATTEST: ULU P� CITY CLERK MAYOR A V NI -AWN RES APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 116 OF CITY OF MIAMI BEACH 'D CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 httpA%ci. miami-0eaeh.fl.us MEMORANDUM NO.6(o I —00 TO: Mayor Neisen O. Kasdin and DATE: September 13, 2000 Members of the City Commission FROM: Jorge M. Gonzalez% ../ City Manager ✓ '© SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT, DATED MAY 24, 2000, BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), PROVIDING AN ADDITIONAL FIFTY THOUSAND DOLLARS ($50,000) TOWARDS THE COST OF ACQUISITION AND REHABILITATION OF ONE ADDITIONAL ONE -BEDROOM CONDOMINIUM UNIT, LOCATED AT 7133 BAY DRIVE, MIAMI BEACH, TO PROVIDE RENTAL HOUSING FOR INCOME -ELIGIBLE ELDERLY TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS. Adopt the Resolution. 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. This Program encourages partnerships between the government and the private sector, including for-profit and not-for-profit organizations, for the acquisition, construction, and rehabilitation of housing. On January 31, 2000, the City issued a HOME Program Notice of Funding Availability (NOFA) in the amount of $1,181,653, for the acquisition and/or rehabilitation of multi -family rental buildings or scattered site units, to provide affordable rental housing. Under the terms of the NOFA, applications were accepted beginning March 1, 2000. AGENDA ITEM C DATE 9 — (3 �C)D Commission Memorandum September 13, 2000 MBCDC Elderly Rental Program/First Amendment Page 2 In response to the NOFA, the City received five applications from three different applicants. Applications were reviewed by City staff for completeness and compliance with the terms of the NOFA and the HOME Program requirements. During the meetings held on May 12, 2000, and July 21, 2000, the applications were presented to the City's Loan Review Committee (LRC) for review and recommendation. One of the applications recommended for funding by the LRC is an application from MBCDC for HOME Program funds in the amount of $50,000 towards the cost of acquisition and rehabilitation of one additional one -bedroom condominium unit in the Knightsbridge Condominium, 7133 Bay Drive, Miami Beach, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program requirements. MBCDC recently established an Elderly Rental Program to provide rental housing to elderly persons, age 62 years and above, including those with special needs. On May 24, 2000, the City and MBCDC entered into an HOME Program agreement providing $376,400 towards the cost of acquisition and rehabilitation of seven one -bedroom units at the Knightsbridge Condominium. MBCDC supplemented the HOME Program funds with a first position mortgage of $70,000 from a private lender. Nineteen of the 48 condominium units in the building were in foreclosure and were auctioned on March 31, 2000. Initially, MBCDC was successful in bidding on and acquiring seven one -bedroom units at an average cost of $55,271 per unit, or $61 per square foot. Afterwards, an additional unit became available to MBCDC when another bidder failed to close on the unit. MBCDC seized the opportunity and acquired the unit for $52,470, or $58 per square foot, using its own line of credit in order to act promptly and secure the acquisition. Therefore, the HOME Program agreement is now being amended to reflect the acquisition and rehabilitation of one additional one -bedroom unit and to reimburse MBCDC. Under the Elderly Housing Program, the units will rent at limits established by U.S. HUD for the HOME Program for a period of 15 years. Initially, the rents will be between $378 and $483 per month. The Knightsbridge Condominium is conveniently located close to the corner of Bay Drive and 71st Street within walking distance to grocery stores, the beach, a post office, public transportation, a health center and a pharmacy. The building has a pool, secured entry and access by elevator. The units are one -bedroom units averaging 900 square feet. The units will need rehabilitation work, including upgrading of kitchen and bathroom cabinets, air conditioning, painting, and the replacement of appliances. As requested by the City Commission, and in order to protect the investment of HOME Program funds, MBCDC has made a commitment to properly maintain the entire building. Consequently, MBCDC now plays an active role in the Knightsbridge Condominium Association, with the President of MBCDC recently being elected to serve as the President of the Association. P9ODFROALLVA000.LVO1®R�A.ffibf Commission Memorandum September 13, 2000 MBCDC Elderly Rental Program/First Amendment Page 3 The Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute the attached First Amendment to the HOME Investment Partnerships (HOME) Program agreement, dated May 24, 2000, between the City of Miami Beach and Miami Beach Community Development Corporation (MBCDC), providing an additional fifty thousand dollars towards the cost of acquisition and rehabilitation of one additional one -bedroom condominium unit, located at 7133 Bay Drive, Miami Beach, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program requirements. JMG/ MC CINffC/RS P:�SALlU9000. W [NQlIAM1tEI.ffi�1 FIRST AMENDMENT TO HOME PROGRAM AGREEMENT THIS FIRST AMENDMENT TO THE AGREEMENT, entered into this 134 day of�cK22000, by and between the CITY 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 Avenue, Miami Beach, Florida (hereinafter referred to as Owner). 13iIN1►1_D1. 3 Do I M WHEREAS, on January 31, 2000, the City issued a HOME Program Notice of Funding Availability in the amount of $1,181,653 for the acquisition and/or rehabilitation of multi -family rental buildings or scattered sites for the purpose of providing affordable rental housing; and WHEREAS, on May 24, 2000, the City adopted Resolution No. 2000-23939, authorizing a HOME Program Agreement between the City and Owner providing $376,400 of HOME Program funds towards the acquisition and rehabilitation of seven (7) one -bedroom condominium units located at 7133 Bay Drive, Miami Beach, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program requirements; and WHEREAS, on July 21, 2000, the City's Loan Review Committee reviewed and recommended the approval of an application from MBCDC for funding from the HOME Program NOFA in the amount of $50,000, towards the cost of acquisition and rehabilitation of one additional one -bedroom condominium unit in the Knightsbridge Condominium, known as Unit 601, to provide rental housing for income -eligible elderly tenants in accordance with the HOME Program requirements; and WHEREAS, Owner warrants and represents that it possesses the legal authority to enter into this Agreement, by way of a resolution that has been duly adopted as an official act of the Board of 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, the City and the Owner now wish to amend the Agreement. NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, the parties hereto do hereby agree as follows; ARTICLE II, ALLOCATION OF HOME FUNDS, page 2, is hereby deleted in its entirety and amended as follows: In consideration of the performance by Owner of its role and responsibilities set forth in this Agreement, the City agrees to provide a conditional grant of HOME Program funds to Owner in the amount of Four Hundred Twenty -Six Thousand Four Hundred Dollars ($426,400) (Funds) from fiscal year 1997/98, fiscal year 1998/99 and fiscal year 1999/2000. The Funds will be utilized by Owner for a CHDO project that provided for the acquisition and rehabilitation of condominium units, known as units 304, 401, 403, 501, 701, 704, 705, and 601 of the Knightsbridge Condominium, located at 7133 Bay Drive, Miami Beach, that will provide 8 rental units for income qualified elderly families and individuals. Owner will acquire and rehabilitate the condominium units 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 15 years (the Affordability Period) commencing with the issuance of the final approved Certificate of Completion by the City's Building Department following the planned rehabilitation. ARTICLE XXX, LIMITATION OF LIABILU X, page 15, is hereby deleted in its entirety and amended as follows: The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $426,400. Owner hereby expresses its willingness to enter into this Agreement with Owner's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $426,400. Accordingly, and notwithstanding any other term or condition of this Agreement, Owner hereby agrees that the City shall not be liable to Owner for damages in an amount in excess of $426,400, for any action or claim for breach of contract arising out of the performance or non-performance 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 768.28. The existing EXHIBIT A, SCOPE OF SERVICES, is deleted in its entirety, and is replaced by the revised EXHIBIT A TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT, SCOPE OF SERVICES, reflecting the adjustments in the description and number of units to be acquired and rehabilitated. 4. The existing EXHIBIT B, BUDGET, is deleted in its entirety, and is replaced by the revised EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT, BUDGET, reflecting the adjustments in the HOME Program funds from the City of Miami Beach. Except as amended by this Amendment, no term or condition of the Agreement shall be modified and the same shall remain in full force and effect; provided, however, if any revision of this Amendment is in conflict with, or inconsistent with, any information in the Agreement, the provision contained in this Amendment shall govern and control. 6. This Amendment shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto. 2 IN WITNESS WHEREOF, the parties hereto executed this Amendment as of the day and date first above written. ATTEST: MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION a Florida not-for-profit corporation 0 Secretary Roberto D orre, President, Authorized Signatory ATTEST: (&� vc4" City Clerk A\AME AGR FIN 3 CITY OF MIAMI BEACH a Florida Municipal corporation Mayor APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION EXHIBIT A TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT SCOPE OF SERVICES EXHIBIT A TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT 0410s 172LYDllAvAl"7 1. Name/Address of Project: Knightsbridge Condominium Units 7133 Bay Drive Miami Beach, F133141 2. Legal Description: The Knightsbridge Condominium, Unit 304 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 401 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 403 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 501 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 701 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 704 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 705 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. The Knightsbridge Condominium, Unit 601 and an Undivided 2.2% interest in Common Elements, according to the Declaration of Condominium thereof, as recorded in Official Records Book 16776, at Page 2016 of the Public Records of Miami -Dade County, Florida. 3. Building and Site Characteristics MBCDC acquired eight condominiums at the Knightsbridge Condominium located at 7133 Bay Drive. The purchase price of units 304, 401, 403, 701, 704, and 705 was $55,120 each, the purchase price of unit 501 was 56,180, and the purchase price of unit 601 was $52,470 for a total purchase price of all eight units of $439,370. There is one resident in the units who is expected to be eligible to remain. The other units are vacant. The building was constructed in 1969 and is located on Normandy Isle. Each one -bedroom unit has a total area of 900 square feet. All units are in excess of the minimum City requirement of 400 square feet and the average size of the units is more than the City requirement of 550 square feet. MBCDC is proposing to rehabilitate the units with no changes to the room layouts. The units were in foreclosure and were auctioned on March 31, 2000. MBCDC was successful in bidding on seven units. Additionally, the foreclosure court granted Owner an extension of ninety days to close. Owner was able to acquire an additional unit that became available when another bidder failed to close on the unit. Fair Market Value of the units has been established at $57,000 for units 304 and 401 and the value of the other six units was established at $60,000 each. The units will be tested for lead paint and other hazards during the rehabilitation of the units. The Owner will mitigate any hazardous conditions identified. 4. All of these eight units will be HOME -assisted for the elderly, including those with special needs, and carry restricted rent and tenant income restrictions for the duration of the 15 -year affordability period. 5. Proposed Elements of Construction The proposed scope of work, based on a preliminary evaluation, consists of moderate rehabilitation which includes, but is not limited to: replacement of appliances, upgrade of air-conditioning, repair of kitchen and bathroom cabinets, and the installation of grab -bars in the bathrooms. 6. The following procedures must be followed, prior to the commencement of work on the project (a) Each contractor and/or subcontractor must be found to be eligible to work on a federally funded project. The names submitted will be checked against the monthly listing "Consolidated List of Debarred, Suspended & Ineligible Contractors and Grantees" published by the Federal Government. (b) A set of final approved plans and specifications for the project approved by the City's Building Department must be submitted to the Housing Division of the City's Community/Economic Development Department. (c) Building permits must be obtained as required by applicable City Ordinance. Also, any other necessary permits and applicable approvals from any other governmental authorities must be obtained, if required. (d) A copy of the contract between Owner and a licensed General Contractor must be submitted to the City which includes commencement and completion dates, contract amount, scope of work, Federal Labor Standards Provisions (HUD Form 4010, if applicable), and applicable federal regulations and standards. (e) The General Contractor selected must submit evidence prior to the commencement of work, satisfactory to the City's Insurance Manager, of the following insurance coverage: 1) Liability 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. (f) A revised cost breakdown, to include direct and indirect costs of the proposed work, based on the actual contract price. When the above requirements have been met, the Community/Economic Development Department and the Building Department will jointly issue a "Notice to Proceed" on the project. If Owner or contractor does not fully comply, or if any work commences prior to the issuance of the Notice to Proceed, then such work may, at the discretion of the City, constitute a default under this Agreement. Exception: Subject to the prior approval of the Community/Economic Development Department and the Building Department, emergency repairs can be undertaken on the Project. 7. Owner's General Contractor shall be responsible for compliance with all pollution and asbestos control standards of the concerned governmental agencies. It shall be the Contractor's responsibility to obtain required inspections from these agencies. 8. Federal regulations require that all tenants in housing rehabilitated with federal funds, be provided with information on the following: that the property may contain lead-based paint; of the hazards, symptoms and treatment for ingestion of lead-based paint; of the precautions to be taken; of the availability of blood level screening for children under seven years of age; and that in the event lead-based paint is found in the property, 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 Owner to each tenant, and Owner must retain evidence of having provided this notification to the tenant in a file for the life of this Agreement. 9. After the property has been rehabilitated, it must conform to the applicable codes, ordinances and statutes of the City and of Miami -Dade County, including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards. 10. Owner agrees that it will develop an affirmative marketing plan, with concurrence from the City, that will comply with the City's adopted affirmative marketing procedures and requirements for projects 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 the available housing receiving assistance from HOME funds, without regard to race, color, national origin, religion, sex, sexual orientation, handicap, marital status, familial status, or age. The affirmative marketing requirements and procedures adopted by Owner shall include, but not necessarily be limited to, the following: a. Methods to promote greater choice of housing opportunities; b. Practices for marketing vacant units that will affirmatively further fair housing (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); C. Special outreach efforts to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach and advertising efforts (e.g., use of community organizations including, but not limited to: places of worship, employment centers, community centers, fair housing groups, housing counseling agencies, community development corporations, and the Housing Authority of the City of Miami Beach). The City shall provide a list of potential outreach sources to Owner; d. Maintenance of records describing actions taken to affirmatively market units and records to assess the results of these actions, including newspaper clippings of all vacant units advertised, copies of brochures, pamphlets, and articles used in advertising units, lists of community organizations used in 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. 11. Project Development Schedule Closing Date June 30, 2000 Commence Construction August, 2000 Complete Construction October, 2000 Lease -up December, 2000 EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT BUDGET I EXHIBIT B TO FIRST AMENDMENT TO HOME PROGRAM AGREEMENT BUDGET SOURCES AND USES OF FUNDS KNIGHTSBRIDGE CONDOMINIUM UNITS 7133 BAY DRIVE ESTIMATED SOURCES OF FUNDS CITY OF MIAMI BEACH FIRST MORTGAGE FINANCING (COMMERCEBANK) MBCDC EQUITY USES OF FUNDS ACQUISITION OF PROPERTY CLOSING COSTS REHABILITATION DEVELOPER'S FEE $426,400 70,000 12.970 $439,370 20,000 39,500 10.500 $509,370 $509,370