2007-26430 Reso Inc.RESOLUTION NO. 2007-26430
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE EXECUTION OF A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH
AND MOUNT SINAI MEDICAL CENTER OF FLORIDA, INC.,
FOR THE PURPOSE OF SUBMITTING A GRANT
APPLICATION TO THE COMMUNITY WORKFORCE
HOUSING INNOVATION PILOT PROGRAM
ADMINISTERED BY THE FLORIDA HOUSING FINANCE
CORPORATION; FURTHER, RETROACTIVELY
AUTHORIZING THE SUBMISSION OF SAID GRANT
APPLICATION.
WHEREAS, during the 2006 Florida Legislative Session, the Florida Legislature
approved House Bill 1363, establishing a pilot program entitled the Community
Workforce Housing Innovation Pilot Program (CWHIP); and
WHEREAS, the purpose of said Program is to provide affordable rental and
homeownership workforce housing for essential services personnel; and
WHEREAS, said Program requires that proposals be from a public private
partnership, said partnership to include substantial involvement from the public sector
partner; and
WHEREAS, Mount Sinai Medical Center, Inc. (Mt. Sinai) has identified housing
as one of the issues that negatively impacts its ability to recruit trained nursing staff; and
WHEREAS, the City and Mt. Sinai have developed the attached memorandum of
Understanding (MOU) for the purpose of submitting an application to said Program; and
WHEREAS, on December 15, 2006, Mt. Sinai submitted a grant proposal to the
CWHIP Program for the Mount Sinai Workforce Housing Project (Project); and
WHEREAS, the attached MOU requires that, upon a grant award by the Florida
Housing Finance Corporation (FHFC), Mt. Sinai will rehabilitate seventy-six (76)
apartments in the Lowenstein Building, said building located on the campus of Mt. Sinai,
for the purpose of providing rental housing for the Mt. Sinai workforce; and
WHEREAS, the attached MOU contemplates that, following the award of the
grant funding by the FHFC, the City Administration will request that the Miami Beach
Health Facilities Authority (HFA) convene to consider a resolution donating surplus funds
in the HFA account that remain at the end of the fiscal year, to the City, to be
appropriated and disbursed by the City in accordance and consistent with Chapter
154.201 - 247, Florida Statutes (the "Health Facilities Authorities Law"); and
WHEREAS, provided that the HFA approves the aforestated resolution, the
Administration will further recommend that the City Commission appropriate and
disburse said funds to Mt. Sinai, in an amount not to exceed $250,000, for the Project,
as follows: $120,000 in 2008; $120,000 in 2009; and $10,000 in 2010.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby authorize the execution of the attached Memorandum of
Understanding between the City and Mount Sinai Medical Center of Florida, Inc., for the
purpose of submitting a grant application to the Community Workforce Housing
Innovation Pilot Program, and further retroactively authorizing the submission of said
grant application.
PASSED and ADOPTED this 17th
day of January , 2007.
Jerry Libbin
Vice-Mayor
ATT ST:
1~~'~""
City Clerk
Robert.Parcher
APPROVED AS TO
FORM & LANGUAGE
8~ FOR EXECUTION
10 ~ e~
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a Memorandum of Understanding with Mount Sinai Medical Center for the
j purpose of submitting a Community Workforce Housing Grant to the State of Florida.
Ke Intended Outcome Su orted:
Increase access to workforce and affordable housing.
Issue:
Shall the City Commission approve the Memorandum of Understanding and retroactively approve the
submission of the grant application?
item SummarviKecommenaation:
During the 2006 legislative session, the Florida Legislature approved House Bill 1363,
establishing a pilot program entitled the Community Workforce Housing Innovation Pilot
Program, commonly known as CWHIP. The Legislature appropriated $50 million forthe firstyear
of this program.
The proposed project will involve renovation of the second and third floors of the Lowenstein
Building, athree-story, 63,646 square foot facility situated on the campus of Mount Sinai Medical
Center to create rental housing for essential services personnel, with a focus on registered
nurses.
This MOU does not require the commitment of City funds at this time. The decision to commit
funds to this project will be made at a later date by the City Commission, following a
recommendation of the Health Facilities Authority.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: ~
None 2
3
4
OBPI Total
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Kevin Crowder
Si n-Offs•
Department Director si tant City Manager City Manager
. 1
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m MIAMIBEACH
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AGENDA ITEM C 7
DATE ~ l ~~
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
To: Mayor David Dermer and Members of the City Commission
FROM: City Manager Jorge M. Gonzalez
DATE: January 17, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, AUTHORIZING THE EXECUTION OF A MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH AND
MOUNT SINAI MEDICAL CENTER OF FLORIDA, INC., FOR THE PURPOSE
OF SUBMITTING A GRANT APPLICATION TO THE COMMUNITY
WORKFORCE HOUSING INNOVATION PILOT PROGRAM ADMINISTERED
BY THE FLORIDA HOUSING FINANCE CORPORATION; FURTHER,
RETROACTIVELY AUTHORIZING THE SUBMISSION OF SAID GRANT
APPLICATION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
During the 2006 legislative session, the Florida Legislature approved House Bill 1363,
establishing a pilot program entitled the Community Workforce Housing Innovation Pilot
Program, commonly known as CWHIP. The Legislature appropriated $50 million for the
first year of this program.
The purpose of this program is to provide affordable rental and homeownership
public/private workforce housing for essential services personnel and others affected by
the high cost of housing, using regulatory incentives and state and local funds to
promote local public/ private partnerships that leverage government and private
resources.
Funding is targeted to projects in areas where the disparity between the area median
income and the median sales price for a single family home is greatest, and for projects
in areas where population growth as a percentage rate of increase is greatest.
The Florida Housing Finance Corporation (FHFC) intends to fund projects in as many
different counties as possible, at an amount up to $5,000,000 per project. FHFC will only
consider funding more than one project in a county when there are no eligible projects
remaining from counties which have not been selected for funding.
January 17, 2007 Commission Memorandum
Community Workforce Housing Innovation Pilot Program
Page 2 of 5
FHFC has set a goal to fund four eligible projects in high cost counties. Florida counties
have been grouped into one of three tiers based upon the disparity between the area
median income and the median sales price of a single family home using county
property appraiser data. Miami-Dade County is one of seven counties in Tier 1. Projects
with an average overall score of at least 150 points will receive preference over projects
in Tiers 2 and 3.
FHFC has set a goal to fund three eligible projects in high growth counties, which have
also been grouped into one of three tiers based upon population growth data from the
Bureau of Economic and Business Research. Miami-Dade County is in Tier 3.
One of the requirements of House Bill 1363 and the CWHIP program is identification of
"essential services personnel" in the City's Local Housing Assistance Plan (CHAP). On
September 6, 2006, the Mayor and City Commission approved Resolution No. 2006-
26363, amending the CHAP to define income eligible employees of the following
industries as essential services personnel:
• Hospitality
• Arts, Entertainment & Recreation
• Health Care & Education
• Retail Trade
• Public Administration
One of the threshold requirements of the CWHIP program is that the applicant must be a
public/private partnership. The guidance from the State regarding the definition of this
partnership was unclear, and the Administration, along with Mount Sinai, had difficulty
determining whether or not a qualifying partnership could be established. In late
November, the parties had agreed that a qualifying partnership would most likely require
local government funding and/or commitment to implement land use regulations such as
density bonuses in order to demonstrate "significant involvement" of the local
government.
In early December, during additional discussions between the Administration and Mount
Sinai, a concept began to evolve that both parties believed would qualify as a public/
private partnership, with an innovative approach to the project. FHFC has confirmed that
a Memorandum of Understanding (MOU) is sufficient to demonstrate apublic/private
partnership. The Administration and Mount Sinai developed and agreed to such a MOU,
which is attached for the City Commission's consideration.
In order to complete the grant application and meet the CWHIP deadline of December
15, 2006, the Administration agreed to present the project and the attached MOU to the
City Commission on January 17, 2007.
The Project
The proposed project will involve renovation of the second and third floors of the
Lowenstein Building, athree-story, 63,646 square foot facility situated on the campus of
Mount Sinai Medical Center, to create rental housing for essential services personnel,
with a focus on registered nurses.
January 17, 2007 Commission Memorandum
Community Workforce Housing Innovation Pilot Program
Page 3 of 5
Mount Sinai proposes to apply CWHIP funds to renovate the Lowenstein Building's
second and third floors which currently comprise 76 units that serve as temporary
housing for a variety of Mount Sinai employees, leased office space for doctors and
Mount Sinai personnel offices. At least eighty percent of the housing will be made
available on a first-come, first-served basis for registered nurses with annual salaries
that do not exceed 120 percent of Miami-Dade's average median income for one- and
two-person households.
These units will undergo extensive renovation to create permanent workforce housing
that facilitates the recruitment and retention of registered nurses. Each renovated unit
will consist of one bedroom and one bathroom and exceed the City of Miami Beach's
minimum requirement of 400 square feet for residences. In addition to cosmetic
upgrades to render the aging Lowenstein apartments more appealing and comfortable
as permanent homes for nurses, considerable renovation is required for the plumbing
and electrical infrastructure, as these floors have not been modernized for many years.
Mount Sinai projects the units will rent for an initial low rent less than the area median
and lower than the average monthly rent of $752 quoted for modest one-bedroom
apartments in Miami Beach (HUD Fair Market Rent for Miami Beach, 2006, Florida
Housing Data Clearinghouse). Mount Sinai will reevaluate rental rates annually to keep
pace with affordability requirements.
Mount Sinai has proposed a 50-year affordability period for the project, as well as the
maximum set asides requested by FHFC. The total project cost is $10,500,000, with a
request of $5,000,000 from the CHWIP program (the maximum request allowed).
Memorandum of Understanding
The MOU describes the proposed participation by the City of Miami Beach, and
demonstrates an innovative financial strategy as required by the CHWIP program. In
order to provide local support to the project, the following is proposed:
This MOU does not require the commitment of City funds at this time. The decision to
commit funds to this project will be made at a later date by the City Commission,
following a recommendation of the City of Miami Beach (COMB) Health Facilities
Authority.
Following grant approval, the City and Mount Sinai will present the project to the Health
Facilities Authority, and request a determination of whether or not a surplus of funds
exists for use for this project. The amount to be requested is $250,000. Following the
declaration of a surplus and funding recommendation by the COMB Health Facilities
Authority, and the subsequent funding award by the Miami Beach City Commission, the
City shall contribute $250,000 toward the total costs or rehabilitation of the Lowenstein
Building. Following an affirmative declaration, and transfer of the funds to the City, the
Mayor and City Commission may consider funding this project in the amount of
$120,000 in 2008, $120,000 in 2009, and $10,000 in 2010.
The MOU includes reporting requirements on the part of Mount Sinai regarding tenant
income, job descriptions, and rental rates for the projects, as well as a hold harmless
provision.
January 17, 2007 Commission Memorandum
Community Workforce Housing Innovation Pilot Program
Page 4 of 5
CWHIP
The deadline for the grant application was December 15, 2006, and FHFC has released
the list of proposals received in response to the Request for Proposals. There were a
total of 37 projects submitted from 22 counties. From the seven Tier 1 High Cost
Counties, there were 12 proposals submitted, as follows:
Monroe County 1 proposal
Collier County 1 proposal
Palm Beach County 5 proposals
Walton County 1 proposal
Martin County 1 proposal
Miami-Dade County 2 proposals
Broward County 1 proposal
As stated above, FHFC intends to fund one project in as many counties as possible, and
will only fund more than one in a county if there are no unfunded counties remaining.
Additionally, FHFC intends to fund at least four projects in High Cost Counties, and at
least three proposals in High Growth Counties. Two of the counties above are also Tier
1 High Growth Counties (Collier and Walton).
Below is a summary of the two Miami-Dade County proposals. While details of the other
Miami-Dade County project are not available, the Mount Sinai project is an employer-
based strategy with more units and a lower cost per unit.
Mount Sinai Workforce Housing
Mount Sinai/City of Miami Beach
Total Development Cost - $10,500,000
Total CWHIP request - $5,000,000
Number of Units - 76
Type of Units -Rental
Total Cost per Unit - $138,158
CWHIP Investment per Unit - $65,789
Wagner Square
Wagner Square Condominium/City of Miami/Miami-Dade County
Total Development Cost - $11,477,981
Total CWHIP request - $5,000,000
Number of Units - 52
Type of Units -Homeownership
Total Cost per Unit - $220,730
CWHIP Investment per Unit - $96,154
The Administration believes that the Mount Sinai project has a strong chance of
receiving funding. Based upon a staff review of the list of projects, it appears that this is
the only workforce housing project in which the private sector partner is also an
employer whose employees are the beneficiaries. The remainder of the projects are
partnerships between local governments and either private developers and/or non-profit
corporations.
January 17, 2007 Commission Memorandum
Community Workforce Housing Innovation Pilot Program
Page 5 of 5
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the
Resolution approving the attached Memorandum of Understanding and retroactively
approve the submission of the grant application.
JMG:HF:kc
Attachment
T:WGENDA\2007\jan1707\Consent\MSMC memo.doc
Page 1 of 1
Kerry,
Pursuant to Kevin Crowder's email dated October 2nd, the grant was never awarded. Therefore, all that is needed
is the Resolution, which you have. Please let me know if there are any questions.
Thanks,
From: Gomez, Carla
Sent: Tuesday, October 02, 2007 11:20 AM
To: Crowder, Kevin
Cc: Damien, Elizabeth; Aguila, Raul; Hemstreet, Tim
Subject: Pending Resolutions
2007-26430- Mt. Sinai for grant application for Workforce Housing Innovation Pilot Program. -Please email Parcher
and Kerry Hernandez stating that an MOU is not required b/c there was never a grant awarded. They still need the
resolution. You had given this to Raul to be form approved, but it was returned to you for corrections back on August
27th. - BoblKerry, the grant was not awarded, so there was no need to execute the MOU. Reso back to Legal
today with corrections.
From: Hernandez, Kerry
Sent: Tuesday, November 13, 2007 1:04 PM
To: Gomez, Carla
Subject: Resolution 2007-26430
Carla,
You sent me the reso and the Memorandum of Understanding. The Memorandum of Understanding is not form-
approved. Can you print it again and have itform-approved and have the Mount Sinai Medical Center execute it
first and then send it to me.
Thanks,
Kerry
MlAMIBEACH
Kerry A. Hernandez, Office Associate V
CITY CLERK'S OFFICE
1700 Convention Center Drive, Miami Beach, FL 33139
Phone: 305-673-7000 ext. 6534 / Fax: 305-673-7254 / www.miamibeachfl•pov
We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
11/13/2007