LTC 019-2008 Status Report Re: Proposed Amendment to Sec 406 of City Centerm MIAMIBEACH r= ~iv~o
OFFICE OF THE CITY MANAGER [~~~ ~~~ ~ ~ g~ 4~ 3Z
No. LTC # ol9-zoos LETLTj~~ ~~,CQ~1~1-~SION
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 14, 2008
SUBJECT: STATUS REPORT REGARDING PROPOSED AMENDMENT TO SECTION 406
OF THE CITY CENTER CONVENTION VILLAGE REDEVELOPMENT AND
REVITALIZATION AREA (CITY CENTER) PLAN TO ENABLE THE MIAMI
BEACH REDEVELOPMENT AGENCY (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).
BACKGROUND
On March 14, 2007, pursuant to the recommendation of the Miami Beach Redevelopment
Agency, the Miami Beach City Commission, following a duly noticed Public Hearing, adopted
a proposed Amendment to the City Center Redevelopment Area Plan (the Plan), and aimed
at creating 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.
The proposed Plan Amendment would allow 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)
LTC Sfatus Report of the Proposed Workforce Housing Amendment to Section 406 of
the City Center Redevelopment Plan
January 14, 2008
Page 2 of 4
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.
In 2007, the Florida Legislature made the CWHIP program permanent, which increased
the income criteria for housing assistance up to 140% of AMI. The proposed Amendment
would 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.
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 Board of County
Commissioners, including:
• Projects should reflect neighborhood revitalization goals;
• Increase coordination of funding 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;
• 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
It should also be noted that the proposed Plan Amendment has already been well received
by certain members of the Board of County Commissioners, as reflected in the attached
letter from Miami-Dade County Vice Chairwoman Barbara J. Jordan. A letter of support has
also been received from North Miami Beach Mayor Kevin Burns.
LTC Status Report of the Proposed Workforce Housing Amendment to Section 406 of
the City Center Redevelopment Plan
January 14, 2008
Page 3 of 4
Pursuant to the provisions set forth in Chapter 163, Part III, Florida Statutes, as well as in
the Interlocal Cooperation Agreement between the City and the County, dated November
23, 1993, the City and the RDA have been following certain pre-defined regulatory steps in
amending the Plan, which began with a formal recommendation by the RDA Board on
January 17, 2007, to amend the applicable housing sections in the Plan to encourage the
development of Workforce Housing in the City Center area. As was noted earlier in the
memorandum, this process included a formal Public Hearing and subsequent adoption of
the Amendment by the City Commission.
On December 17, 2007, RDA staff, accompanied by Commissioner Jerry Libbin, presented
the proposed Amendment to Miami-Dade County's Tax Increment Financing (TIF) and
Coordinating Committee for its consideration and recommendation. The Committee's only
concern was that the proposed Amendment language did not specifically define the income
thresholds, which could open the door for exceeding 140% of AMI. Commissioner Libbin
suggested that in the event that local, state or federal housing programs modified the upper
AMI threshold limits, that the RDA wanted to have the flexibility to adjust its programs
accordingly without having to go through another Plan amendment process. The Committee
recommended adding language to the Amendment, tying City Center's programs to meet
Miami-Dade County's workforce housing guidelines and/or be adjusted to meet any local,
state or federal housing programs.
In the interest of expediting final approval of the proposed Amendment, the Committee
agreed to approve the Amendment, subject to inclusion of its recommended language. The
recommended changes do not detract from or modify the intent of the original Amendment,
as adopted by the City Commission on March 17, 2007, and no formal action by the City
Commission is required to approve the language changes proposed by the TIF Committee.
Based on the steps shown below, and given the favorable recommendation from the
County's TIF Committee, the next step is for the County's Economic Development and
Human Services Committee (EDHSC), to approve the Amendment before being submitted
to the Board of County Commissioners (BCC) for formal and final approval.
Action Ste Antici ated/Tar et Date
RDA Board recommendation to proceed with
ro osed Amendment Janua 17, 2007
Provide courtesy/informal notice to TIF
Committee - of ro osed Amendment Februa 12 , 2007
City Commission -setting of Public Hearing to
consider ro osed Amendment Februa 14, 2007
City Commission -Public Hearing and formal
a royal of ro osed Amendment March 14, 2007
TIF Committee Meeting for formal consideration
and referral to Economic Development and
Human Services Committee EDHSC December 17, 2007
EDHSC Meeting to consider proposed TBA - Next scheduled meeting, Wednesday
Amendment Februa 13, 2008
Board of County Commission (BCC) -setting of
Public Hearin to consider Amendment TBA
BCC -Public Hearing and final approval of
ro osed Amendment TBA
LTC Status Report of the Proposed Workforce Housing Amendment to Section 406 of
the City Center Redevelopment Plan
January 14, 2008
Page 4 of 4
Attachments:
- Proposed Amendment with additional language recommended by Miami-Dade
County TIF Committee on 12/17/07;
- Letter of support from BCC Vice Chairwoman Barbara J. Jordan, dated 3/14/07;
- Letter of support from City of North Miami Mayor, Kevin A. Burns, dated 3/13/07;
- Applicable housing sections from the City Center Plan:
o Section 406 (as approved on 2/12/93)
o Appendix #1 Affordable Housing Initiatives (adopted on 1/23/03 as part of
the First Amendment to the Plan)
JMG/KOB
Attachments
C: Executive Staff
Proposed "Housing Element Addendum" -Section 406 of the
City Center Redevelopment and Revitalization Area Plan
Reflecting proposed additional language recommended by
Miami-Dade County Tax Increment Finance and Coordinating Committee
on December 17, 2007 (see underlined highlighted text below)
(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)):
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 Program,
- Miami Beach Development Corporation's Home ownership Program which also
taps County Surtax dollars and CDBG dollars,
- The H.U.D. Rental Rehabilitation Program, and
- The new federally funded HOME Program which has allocated $1.8 million in
1992 and $12 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, to meet Miami-Dade County's workforce guidelines and /or to be
adjusted to meet any local, state or federal workforce housing programs, 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."
F:\ECON\$ALL\RDA\Housing\Housing Amendment Language Se 406.doc
MAR-14-207 11:-2 FF'OM:
March 14, 2007
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BARBARA J. JQRDAN
VICE CHAIRWOMAN
MIAMI - CACE COtJNTY
GUARD OF t:CUUNIY COMMISSIONER;,'
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Mayor Dermer and Members of the City Commission
City of Miami Beach
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1700 Convention Center Drive
Miami Beach, Florida 33139
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fn an effort to respond to the critical need for affordable housing for our working middle
class, Miami-Dade County adopted a "Workforce Housing' prdinance (070131); this
ordinance targeted families who eam between t30% and 140°~ of the median income,
Given that families in the lower income tiers were also' being priced out of the housing
market, I sponsored a county resolution (061495) establishing the Carnmunity Affordable
Housing Strategies Alliance (CAHBA). CAHSA was created to assist in developing
recommendations that would address the housing crisis and more specifically address
the needs of those persons in very low, low and moderate income households.
I am thrilled to see that the City of Miami beach has decided to push forward with
initiatives that will assist in alleviating the shortage of housing for its workforce.
Please accept this letter in support of Agenda Item R(7)A; the proposed amendment to
the applicable housing sections in the City Center Redevelopment and Revitalization
Plan to create and fund new opportunities within the City Center RDA for `Workforce
Mousing".
This proposed amendment is consistent with Miami-Dade County's ongoing efforts t0
address the current shortage of affordable and workforce housing and is consistent with
a number of CASHA's final recommendations.
Therefore, I urge you to adopt this .amendment and help to alleviate the housing crisis
that is affecting the entire County.
Sinc ely,
~.~~ ~..~
Barbara J. Jord , V e Chairwoman
Miami-Dade Board of County Commissioners
.. I
I
ec: Chairman Bruno A. Barreiro
STEPHEN r C1ARK TENTER - ill n w. Nlt$T STREET - sr~~rE zlu MIAMI, FlOR104 771'tH-1063 19r75S J75-Sev• • FAX t]OSI 3.'2 6028
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Commissioner Jere Libbin K "'
City of IVliarni Beach
1700 Convention Center Drive
Miami Beacb, Flr 33139
Dear Commissioner Libbin:
As Mayor of the City of North Miami, z would like this 1ette~t to convey our
support for the amendment to the Miami Beach. CRA you have introduced.
Having gone through an extensive CRA process in North Miaini, we
recognize that workforce and affordable housing are essential components of
az~ effective CR.A package.
Let us know if we cax~ provide any further support,
Sincerely
Kevin A. Bums
Mayor
776 Northeast 125th Stneet, Noah Miami, Florida 332fi1-9Q85 (1
(305) 893-6511 ext. 2405 • Fax: (305) 892-9899 "~
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I~EDE~ELOpMENT AND I~EVITALIZAT1~l~l
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FEDQUARI' 72
7993
ADOPTED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH AND
THE MIAMI BEACH REDEVELOPMENT AGENCY
ON FEB. i2, 1993
pt?Ep,ARED [3~':
THE crry of MIAMI DEACI-1
~EpAQTMENr CF DEVELCpMENT, DESIGN &
HISTOL?IC pl?ESEQVATICN SE[~vICES
i
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 airy 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
affect 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, aze 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 Program,
- Miami Beach Development Corporation's Homeownership Program which
- also taps County Surtax dollars and CDBG dollars,
The H.U.D. Renta,~ Rehabilitation Program, and
- The new federally funded HOME Program which has allocated ~ 1.8 million
~ " in 1992 and ~ 13 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.
18
First Amendment to the City Center Historic Convention Village
Redevelopment and Revitalization Area Plan
(as adopted on 1/23/03)
Appendix # 1
Affordable Housing Initiatives
MISSION
The City of Miami Beach Housing Division is committed to providing quality
affordable rental housing and homeownership opportunities to income-eligible
residents, rehabilitating the housing stock and revitalizing neighborhoods in order
to establish a more viable urban community. The Housing Division is dedicated
to investing in the physical improvement of residential areas in order to promote
the economic stabilization of neighborhoods and a more vibrant and diverse
community.
PROGRAMS
Multi-Family Housing Rehabilitation Program
The Multi-Family Housing Rehabilitation Program provides matching grant
incentives to property owners to upgrade multi-family buildings and provide
affordable rental units. The City matches up to 50 percent of the rehabilitation
costs. After completion of the rehabilitation, 51 percent of the units are
maintained as affordable rental units for a period of 5 years.
Owner Occupied Housing Rehabilitation Program
The Owner Occupied Housing Rehabilitation Program provides assistance to
income-eligible homeowners to rehabilitate their homes. Eligible participants
must reside in their homes.
HOME Program: Acquisition and Rehabilitation Initiatives
The City publishes an annual Notice of Funding Availability (NOFA) for the
HOME Investment Partnerships (HOME) Program. Funds may be utilized for
acquisition and/or rehabilitation of multi-family buildings to provide affordable
rental units or home ownership opportunities.
SHIP Program
The City publishes an annual Notice of Funding Availability (NOFA) for the State
Housing Initiatives Partnership (SHIP) Program. Funds may be utilized for the
rehabilitation of units being acquired in conjunction with a home ownership
assistance program.
Home Buyer Assistance Program
The Home Buyer Assistance Program provides assistance to income-eligible
home buyers in the form of silent mortgages, down payment and closing costs
assistance, and home ownership counseling. The program also provides
assistance for the rehabilitation of the units being acquired. The City has
collaborated with the Miami Beach Community Development Corporation
(MBCDC) to establish this program as one of the largest home buyer programs in
Miami-Dade County.
Projects
The following is a list of affordable housing assisted by the various housing
programs of the City, operating within the RDA's City Center target area and its
vicinity (north of 5th Street and south of Dade Boulevard). Currently, there are
10 affordable rental housing buildings (and 1 building under planning phase) with
398 affordable rental units and 71 individual homeownership units assisted by
the City.
MULTI-FAMILY HOUSING REHABILITATION PROGRAM
- London Arms, 727-735 Collins Avenue, 58 rental units
- Riviera Plaza, 337 20th Street, 56 rental units
- Lincoln Plaza, 1615 Pennsylvania, 16 rental units
- Blackstone Apartments, 800 Washington Avenue, 131 rental units for
elderly
- Princessa Apartments, 1005 & 1011 Ninth Street, 6 rental units
- 710 Pennsylvania Avenue, under construction, 4 rental units
HOME PROGRAM: ACQUISITION AND REHABILITATION INITIATIVES
- 1960 Park Avenue, 20 rental units for formerly homeless individuals
- Sabrina Apartments, 1551 Pennsylvania Avenue, 20 rental units
- Fernwood Apartments, 935 Pennsylvania Avenue, 18 rental units for
people living with HIV/AIDS
- 734 Meridian, Unit 1 R
- 1673 Bay Road, Unit 502
- 1245 West Avenue, Unit 203
HOME BUYER ASSISTANCE PROGRAM (HOME PROGRAM I SHIP
PROGRAM)
- 1030 9th Street, Unit 505
1045 10th Street, Unit 202
- 1658 Bay Road, Unit 601
1670 Bay Road, Unit 4-D
- 1674 Bay Road, Unit 303
- 1218 Drexel Avenue, Unit 303
- 950 Euclid Avenue, Unit 203
- 1480 Euclid Avenue, Unit 101
- 910 Jefferson Avenue, Unit 5-E
- 1033 Lenox Avenue, Unit 211
- 915 Lenox Avenue, Unit 201
- 1020 Meridian Avenue, Unit 507
- 734 Meridian Avenue, Unit 4
- 851 Meridian Avenue, Unit 26
- 851 Meridian Avenue, Unit 56
- 1618 Michigan Avenue, Unit 36
- 730 Pennsylvania Avenue, Unit 702
- 1400 Pennsylvania Avenue, Unit 45
- 1225 West Avenue, Unit 204
- 1228 West Avenue, Unit 1204
1228 West Avenue, Unit 512
- 1245 West Avenue, Unit 404
- 1455 West Avenue, Unit 803
- 1580 West Avenue, Unit 207
- 1614 West Avenue, Unit 305
- 1614 West Avenue, Unit 401
- 1614 West Avenue, Unit 603
- 1620 West Avenue, Unit 404
- The Sails Condominium, 1401 Bay Road, 35 homeownership units (new
construction)
OWNER OCCUPIED HOUSING REHABILITATION PROGRAM
- 1000 Michigan Avenue, Unit 304
- 1030 9th Street, Unit 505
- 1225 West Avenue, Unit 204
- 910 Jefferson Avenue, Unit 4B
- 944 Meridian Avenue, Unit 5
- 1245 West Avenue, Unit 201
- 609 Euclid Avenue, Unit 6
- 1150 Euclid Avenue, Unit 101
OTHER AFFORDABLE HOUSING
- 1231-1251 17th Street, 42 rental units for the elderly (planning phase).
Note: On May 8, 2002, this project received a Certificate of Consistency
from the City, allowing Volunteers of America to submit an application for
Section 202 grant funds from H.U.D.
- Shelbourne Apartments, 710 Jefferson Avenue, 24 rental units for people
living with HIV/AIDS