2008-26741 ResoRESOLUTION NO. 2008-26741
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE EXECUTION OF A MEMORANDUM OF
UNDERSTANDING (MOU) 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 ADMINISTERED BY THE
FLORIDA HOUSING FINANCE CORPORATION; FURTHER
AUTHORIZING THE SUBMISSION OF SAID GRANT
APPLICATION.
WHEREAS, during the 2006 Florida Legislative Session, the Florida Legislature
approved House Bill No.1363, establishing a pilot program entitled the Community
Workforce Housing Innovation Pilot Program (CWHIP or the Program); 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 apublic-private
partnership, with said partnership to include substantial involvement from the public sector
partner; and
WHEREAS, Mount Sinai Medical Center (Mount Sinai) has identified housing as one
of the issues that negatively impacts its ability to recruit trained nursing staff; and
WHEREAS, on January 17, 2007, the Mayor and City Commission adopted
Resolution No. 2007-26430, authorizing the execution of a Memorandum of Understanding
(MOU) between the City and Mount Sinai for the purpose of submitting a grant application
for the 2007 cycle of the CWHIP Program; and
WHEREAS, the Florida Housing Finance Corporation (FHFC) administers affordable
housing programs funded by the State of Florida and evaluates grant applications and
other requests for State housing funds; and
WHEREAS, the application was subsequently not recommended forfunding by the
FHFC; and
WHEREAS, the City and Mount Sinai wish to re-apply to the Program for the 2008
grant cycle; the deadline for submitting a grant proposal to the CWHIP Program is January
29, 2008; and
WHEREAS, concurrent with the new application, the City and Mount Sinai intend to
submit the same MOU submitted in 2007, which provides that upon a grant award by the
FHFC, Mount Sinai will rehabilitate seventy-six (76) apartments in the Lowenstein Building,
said building located on the campus of Mount Sinai, for the purpose of providing rental
housing for the Mount Sinai workforce; and
WHEREAS, the proposed MOU also 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 adopt 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 Mount Sinai, in an amount not to exceed $250,000, forthe Project, as follows:
$120,000 in calendaryear2008; $120,000 in calendaryear2009; and $10,000 in calendar
year 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 a Memorandum of Understanding between
the City of Miami Beach and Mount Sinai Medical Center of Florida, Inc., forthe purpose of
submitting a grant application to the Community Workforce Housing Innovation Pilot
Program, and further authorize the submission of said grant application.
PASSED and ADOPTED this 16th
day of January , 2008.
Mayor
Matti H. Bower
ATTEST:
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City Clerk
Robert Parcher
T:WGENDA12008WANUARY 16\CONSENTIMSMC RESO.DOC
AppROVED AS TO
FORM & UNCUT ON
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a Memorandum of Understanding with Mount Sinai Medical Center for the purpose
of submitting a Community Workforce Housing Grant to the State of Florida.
Key Intended Outcome Supported:
Increase access to workforce and affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.):
I n the 2007 Community Satisfaction Survey, 77% of the residents felt that the City should most ensure
housing for people below $50K, the elderly, and those earning between $50K and $80K income.
Issue:
Shall the City Commission approve the Memorandum of Understanding and retroactively approve the
submission of the grant application?
Item Summary/Recommendation:
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. In 2007, the Legislature made the program permanent,
and appropriated $140 million to it.
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.
The City Commission approved the Memorandum of Understanding on January 17, 2007, for
submission of this project to the 2007 cycle of the CWHIP program; however, the projectwas not
recommended for funding as part of that cycle.
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.
Board Recommendation:
Financial Information:
Source of Amount: Account
Funds: ~
None 2
3
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Kevin Crowder, Economic Development
Sinn-Offs:
~ Dp~partment Director ~ ~-ss~stettt City Manager ~ City Manager ~
III I A1~~I I B EAR H AGENDADA E C 7G O
r
m MIAMIBEACH
Cit~r of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 16, 2008
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, 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 forthe first
year of this program. This program was made permanent during the 2007 Florida Legislative
Session, and funded with $140 million. The application deadline is January 29, 2008.
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 bf 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.
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
January 16, 2008 Commission Memorandum
Community Workforce Housing Innovation Program
Page 2 of 3
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
2006, 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 December 2006, during additional discussions between the Administration and Mount
Sinai, a concept began to evolve that both parties believed would qualify as apublic/ private
partnership, with an innovative approach to the project. FHFC confirmed that a
Memorandum of Understanding (MOU) is sufficient to demonstrate apublic/private
partnership. The Administration and Mount Sinai developed and agreed to such an MOU,
which is attached for the City Commission's consideration.
On January 17, 2007, the Mayor and City Commission adopted Resolution No. 2007-26430,
authorizing the execution of a MOU between the City and Mount Sinai, for the purpose of
submitting a grant application to the CWHIP program. Unfortunately, the application to the
initial 2007 cycle of the grant program was not recommended for funding. However, based
on positive comments made by FHFC staff, this proposal remains a strong contender for
state funding; therefore, the attached MOU is substantially the same as the one previously
approved.
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.
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.
January 16, 2008 Commission Memorandum
Community Workforce Housing Innovation Program
Page 3 of 3
Mount Sinai projects the units will rent for an initial low rent less than the area median and
lowerthan the average monthly rent of $839 quoted for modest one-bedroom apartments in
Miami Beach (HUD Fair Market Rent for Miami Beach, 2007, 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 estimated at $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 calendar year 2008,
$120,000 in calendar year 2009, and $10,000 in calendar year 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.
CONCLUSION
The deadline for the grant application is January 29, 2008. The Administration believes that
the Mount Sinai project has a strong chance of receiving funding this year. Based upon a
staff review of the list of projects that were submitted last year, it appears that this was the
only workforce housing project in which the private sector partner is also the employer
whose employees were the beneficiaries. The remainder of the projects are partnerships
between local governments and either private developers and/or non-profit corporations.
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:\AGENDA\2008Wanuary 16\ConsentWISMC Memo.doc