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542-2007 RDA ResoRESOLUTION NO. 542-2007 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING THE EXECUTIVE DIRECTOR, AND SUCH STAFF AS HE MAY DESIGNATE, TO INITIATE THE PROCESS TO AMEND 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, AND AS AMENDED ON JANUARY 23, 2003 (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; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR AND HIS DESIGNATED STAFF TO TAKE SUCH ACTIONS AS NECESSARY AND REQUIRED TO AMEND SAID PLAN INCLUDING, WITHOUT LIMITATION: INITIATING AND PREPARING THE TEXT OF THE PROPOSED AMENDMENT, AS WELL AS ANY SUPPORTING DOCUMENTATION THERETO; SUBMITTING THE PROPOSED AMENDMENT TO THE CHAIRMAN AND MEMBERS FOR CONSIDERATION AND APPROVAL AT A DULY NOTICED PUBLIC HEARING; IF APPROVED BY THE CHAIRMAN AND MEMBERS, SUBMITTING THE PROPOSED PLAN AMENDMENT TO MIAMI-DADE COUNTY, FOR REVIEW AND APPROVAL ON THE ADMINISTRATIVE AND COMMITTEE LEVELS, AS WELL AS THE REQUIRED APPROVAL BY THE BOARD OF COUNTY COMMISSIONERS; PREPARING SUCH NOTICE(S) AND SETTING OF PUBLIC HEARING(S), AS MAY BE REQUIRED UNDER CHAPTER 163, PART III, FLORIDA STATUTES (ALSO KNOWN AS THE "COMMUNITY REDEVELOPMENT ACT OF 1969"); AND TAKING ANY AND ALL OTHER ACTIONS, AS MAYBE REQUIRED; PROVIDED FURTHER, THAT THE AFORESTATED AUTHORITY IS GRANTED TO THE EXECUTIVE DIRECTOR SOLELY FOR THE PURPOSE OF AMENDING THE PLAN FOR THE EXPRESS PURPOSE OF INCLUDING THE AFORESTATED WORKFORCE HOUSING COMPONENT, AND SHALL NOT BE INTENDED, NOR BROADENED, TO ALLOW THE EXECUTIVE DIRECTOR TO AGREE AND/OR ACCEPT ANY OTHER CONDITIONS, AMENDMENTS, MODIFICATIONS, SUPPLEMENTS, AND/OR REVISIONS TO THE EXISTING PLAN, AS MAYBE REQUESTED BY MIAMI DADE COUNTY AS A CONDITION TO APPROVAL OF SAID AMENDMENT, AND THAT ANY SUCH CONDITIONS AND/OR PROPOSALS SHALL BE SUBJECT TO FURTHER APPROVAL BY THE CHAIRMAN AND MEMBERS OF THE RDA. WHEREAS, the affordable housing component of the the City Center Redevelopment and Revitalization Area Plan, dated February 1, 1991 and adopted by Miami-Dade County on March 30, 1993 (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 Ptan 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 Area Median Income (AMI); and WHEREAS, in order 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, (such as hospital workers,teachers,and certain essential and emergency services personnel), the RDA is seeking to create and fund new opportunities within the City Center RDA for "workforce housing", for families whose AMI is between 120%and 140%, and who currently do not qualify for assistance under the existing threshold for low and moderate income individuals and families which are currently eligible under, and served by)current City of Miami Beach and RDA affordable housing programs and initiatives; and WHEREAS, in order to provide for said funding opportunities within the City Center RDA, it is necessary to amend the affordable housing component of the Plan (Section 406 of the Plan, entitled "Housing Element Addendum), to allow for the use of RDA funding to acquire and/or renovate property to accommodate workforce housing, as well as to provide the opportunity to leverage funding from certain new and proposed programs specifically geared towards households earning greater than 120% of AMI. NOW,THEREFORE,BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Chairman and Members of the Miami Beach Redevelopment Agency (RDA) hereby authorize the Executive Director, and such staff as he may designate, to initiate the process to amend 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, and as amended on January 23, 2003 (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; further authorizing the Executive Director and his designated staff to take such actions as necessary and required to amend said Plan including, without limitation: initiating and preparing the text of the proposed amendment, as well as any supporting documentation thereto; submitting the proposed amendment to the Chairman and Members for consideration and approval at a duly noticed public hearing; if approved by the Chairman and Members,submitting the proposed Plan Amendment to Miami-Dade County for review and approval on the administrative and committee levels, as well as the required approval by the Board of County Commissioners; preparing such notice(s)and setting such public hearing(s), as may be required under Chapter 163, Part III, Florida Statutes(also known as the"Community Redevelopment Act of 1969"); and taking any and all other actions, as may be required; provided further, that the aforestated authority is granted to the Executive Director solely for the purpose of amending the Plan for the express purpose of including the aforestated workforce housing component, and shall not be intended, nor broadened, to allow the Executive Director to agree and/or accept any other conditions, amendments modifications,supplements, and/or revisions to the existing Plan,as may be requested by Miami-Dade County as a condition for approval of said amendment, and that any such conditions and/or proposal shall be subject to further approval by the Chairman and Members of the RDA. 4 Resolution No. 542-2007 PASSED and ADOPTED this 1 7t lday of,Tangy, 2007. AT EST: C &A—. . SECRETARY CHAT AMAN. Robert Parcher Matti H. Bower F:\$ALL\RDA\HOUSING\RDA PLAN AMEND RESO WF HOUSING.DOC II i i APPROVED AS TO FORM&LANGUAGE &&FO EXECUTION q jp Ise' pment Agency ate eneral Coun v , MIAMI BEACH:REDEVELOPMENT AGENCY ITEM SUMMARY Condensed Title: RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING THE EXECUTIVE DIRECTOR, AND SUCH RDA STAFF AS HE MAY DESIGNATE, TO INITIATE THE PROCESS TO AMEND THE AFFORDABLE HOUSING COMPONENT OF THE CITY CENTER RDA REDEVELOPMENT AND REVITALIZATION AREA PLAN. Key Intended Outcome Supported: Increase access to workforce or affordable housing;reduce the number of homeless Issue: Shall the Chairman and members of the RDA Board: 1. Initiate the process of amending the City Center Redevelopment Plan, and approve the housing program guidelines recommended by the Neighborhoods Committee; 2. Pursue the purchase of three properties on Washington Avenue by MBCDC, utilizing RDA dollars; 3. Approve the affordability and employment guidelines for RDA-assisted housing units; 4. Increase the eligibility for assistance in the proposed guidelines to 140% of median income; 5. Research the legality and feasibility of the use of program income derived from the rental of RDA-assisted units for housin2 projects outside of the RDA boundaries? Item Summa /Recommendation: On December 21,2006,the Finance and Citywide Projects Committee discussed a better way to utilize the dollars from the HOME program to get more available units online, as well the potential acquisition of property in the City Center Redevelopment Area.The Committee referred a discussion of the proposed guidelines for the use of RDA funds to meet the RDA Plan's housing goals, including a recommended formula to be used for the RDA funding agreement. At the direction of the Committee,staff and representatives of the Housing Authority of the City of Miami Beach and the Miami Beach Community Development Corporation(MBCDC)met with Commissioner Matti Bower to develop a proposed formula. The following serves as background for the purpose of understanding the current status of our housing programs,essential services personnel, and apartment market. On January 11, 2007, the Neighborhoods Committee met and discussed the proposed guidelines. The Committee Memorandum is attached to this memo. The Committee adopted a motion recommending that: 1. The twenty percent of RDA-assisted units shall be made available to households earning between 80-140% of AMI, and shall be larger 2 or three bedroom units; 2. Households that earn between 120-140% of the AMI must be families with children in order to qualify for assistance; 3. The City initiate the process to amend the City Center Redevelopment Plan to provide for the development of housing to serve households earning up to 140% of Area Median Income(AMI); 4. Net income earned on the rental of the units shall be made available for use in other housing initiatives citywide, on a proportionate share of RDA funding in the project(The City Attorney's Office will confirm whether or not this can be accomplished). Advisory Board Recommendation: Nei hborhoods Committee,January 11,2007 Financial Information: Source of Funds: Amount Account Approved n/a OBPI Financial Impact Summary: City Clerk's Office Legislative Tracking: Kevin Crowder, Economic Development 6186 Sign-Offs: Department Head istant Director Executive Director M M AGENDA ITEM QC '�' DATE I 17-0 7 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfi.gov REDEVELOPMENT AGENCY MEMORANDUM TO: Chairman and Members of the Miami Beach Redevelopment Agency FROM: Jorge M. Gonzalez, Executive Director DATE: January 17, 2007 SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY(RDA)AUTHORIZING THE EXECUTIVE DIRECTOR,AND SUCH STAFF AS HE MAY DESIGNATE,TO INITIATE THE PROCESS TO AMEND 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,AND AS AMENDED ON JANUARY 23,2003(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; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR AND HIS DESIGNATED STAFF TO TAKE SUCH ACTIONS AS NECESSARY AND REQUIRED TO AMEND SAID PLAN .INCLUDING, WITHOUT LIMITATION: INITIATING AND PREPARING THE TEXT OF THE PROPOSED AMENDMENT, AS WELL AS ANY SUPPORTING DOCUMENTATION THERETO; SUBMITTING THE PROPOSED AMENDMENT TO THE CHAIRMAN AND MEMBERS FOR CONSIDERATION AND APPROVAL AT A DULY NOTICED PUBLIC HEARING;IF APPROVED BY THE CHAIRMAN AND MEMBERS, SUBMITTING THE PROPOSED PLAN AMENDMENT TO MIAMI-DADE COUNTY, FOR REVIEW AND APPROVAL ON THE ADMINISTRATIVE AND COMMITTEE LEVELS, AS WELL AS THE REQUIRED APPROVAL BY THE BOARD OF COUNTY COMMISSIONERS; PREPARING SUCH NOTICE(S)AND SETTING OF PUBLIC HEARING(S),AS MAY BE REQUIRED UNDER CHAPTER 163,PART III,FLORIDA STATUTES(ALSO KNOWN AS THE"COMMUNITY REDEVELOPMENT ACT OF 1969"); AND TAKING ANY AND ALL OTHER ACTIONS, AS MAY BE REQUIRED; PROVIDED FURTHER, THAT THE AFORESTATED AUTHORITY IS GRANTED TO THE EXECUTIVE DIRECTOR SOLELY FOR THE PURPOSE OF AMENDING THE PLAN FOR THE EXPRESS PURPOSE OF INCLUDING THE AFORESTATED WORKFORCE HOUSING COMPONENT,AND SHALL NOT BE INTENDED,NOR BROADENED,TO ALLOW THE EXECUTIVE DIRECTOR TO AGREE AND/OR ACCEPT ANY OTHER CONDITIONS, AMENDMENTS, MODIFICATIONS, SUPPLEMENTS,AND/OR REVISIONS TO THE EXISTING PLAN, AS MAY BE REQUESTED BY MIAMI DADE COUNTY AS A CONDITION TO APPROVAL OF SAID AMENDMENT,AND THAT ANY SUCH CONDITIONS AND/OR PROPOSALS SHALL BE SUBJECT TO FURTHER APPROVAL BY THE CHAIRMAN AND MEMBERS. ADMINISTRATION RECOMMENDATION Consider the options and provide guidance to the Administration. Miami Beach Redevelopment Agency January 17, 2007 City Center Housing Program Guidelines Page 2 of 3 ANALYSIS On December 21, 2006, the Finance and Citywide Projects Committee discussed a better way to utilize the dollars from the HOME program to get more available units online, as well the potential acquisition of property in the City Center Redevelopment Area.The Committee referred a discussion of the proposed guidelines for the use of RDA funds to meet the RDA Plan's housing goals, including a recommended formula to be used for RDA-assisted housing projects. At the direction of the Committee, staff and representatives of the Housing Authority of the City of Miami Beach and the Miami Beach Community Development Corporation(MBCDC) met with Commissioner Matti Bower to develop a proposed formula.The following serves as background for the purpose of understanding the current status of our housing programs, essential services personnel, and apartment market. On January 11, 2007, the Neighborhoods Committee met and discussed the proposed guidelines.The Committee Memorandum is attached to this memo.The Committee adopted a motion recommending that: 1. The twenty percent of RDA-assisted units shall be made available to households earning between 80-140% of AMI, and shall be larger 2 or three bedroom units; 2. Households that earn between 120-140%of the AMI must be families with children in order to qualify for assistance; 3. The City initiate the process to amend the City Center Redevelopment Plan to provide for the development of housing to serve households earning up to 140%of Area Median Income (AMI); 4. Net income earned on the rental of the units shall be made available for use in other housing initiatives citywide, proportionate to the share of RDA funding invested in the project (The City will confirm whether or not this is a legal use of program income). Funding for the proposed purchase of three properties on Washington Avenue by MBCDC may be provided by the RDA; however, construction funding for the renovation of the buildings has not yet been identified. Potential sources include U.S. HUD's CDBG and HOME programs, as well as the State's SHIP and SAIL programs, each of which will likely create specific use restrictions. Additional funding opportunities may be identified, but it is possible that conventional financing and/or additional RDA dollars may be required for the renovation of the units serving households earning greater than 120% of AMI, especially since only one other program (CWHIP Pilot Program) currently funds housing targeted to this income level. Amendment Process for the City Center Redevelopment Plan Pursuant to the provisions of Chapter 163, Florida Statutes, and in accordance with the interlocal agreement between Miami-Dade County and the City of Miami Beach, the following steps are necessary to amend the City Center Redevelopment Plan: 1. Courtesy meeting with Miami-Dade County Tax Increment Financing (TIF) Committee to advise of proposed Plan amendment; 2. City Commission Referral to Finance and Citywide Projects Committee; 3. Approval of proposed amendment by the Finance and Citywide Projects Committee; 4. City Commission to set Public Hearing to consider the proposed amendment; 5. Public Hearing and approval of the proposed amendment by the City Commission; 6. Meeting with the County TIF Committee for formal approval and referral to the Board Miami Beach Redevelopment Agency January 17, 2007 City Center Housing Program Guidelines Page 3 of 3 of County Commissioners' Community Empowerment and Economic Revitalization Committee (CEERC); 7. Approval of the proposed amendment by the CEERC; 8. Board of County Commissioners set a Public Hearing to consider the proposed amendment; 9. Public Hearing and approval of the proposed amendment by the Board of County Commissioners. JMG/HF/kc Attachment T:\AGENDA\2007yanl707\Regular\RDA Washington Ave Housing memo.doc 1 MIAMI B City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov COMMITTEE MEMORANDUM TO: Members of the Neighborhoods Committee FROM: Jorge M. Gonzalez, City Manage DATE: January 11, 2007 SUBJECT: DISCUSSION REGARDING AFFORDABLE HOUSING IN THE CITY CENTER REDEVELOPMENT AREA. On December 21, 2006, the Finance and Citywide Projects Committee discussed a better way to utilize the dollars from the HOME program to get more available units online, as well the potential acquisition of property in the City Center Redevelopment Area.The Committee referred a discussion of the proposed guidelines for the use of RDA funds to meet the RDA Plan's housing goals, including a recommended formula to be used for the RDA funding agreement. At the direction of the Committee, staff and representatives of the Housing Authority of the City of Miami Beach and the Miami Beach Community Development Corporation (MBCDC) met with Commissioner Matti Bower to develop a proposed formula.The following serves as background for the purpose of understanding the current status of our housing programs, essential services personnel, and apartment market. BACKGROUND INFORMATION Housing Programs and Income Limits The following are the income limits used by the existing, available housing programs. The City receives and allocates HOME and SHIP funds. Additionally, on January 17, 2007,the Mayor and City Commission will consider a Resolution retroactively authorizing the submission of a grant application to the State of Florida's Community Workforce Housing Innovation Pilot Program (CWHIP) with Mount Sinai Medical Center. U.S. HUD HOME Program up to 80% of Area Median Income (AMI) State of Florida SHIP Program up to 120% of AMI State of Florida SAIL Program up to 120% of AMI Miami-Dade County Surtax up to 120% of AMI State of Florida CWHIP Program up to 140% of AMI Income Limits and Affordability The following boxes reflect the income limits that can be served by the above-noted programs. The second box specifically reflects the monthly rental affordability permitted under these programs.The HUD standard"affordability"of 30% (no more of 30%of income used for housing) is reflected. Neighborhoods Committee January 11, 2007 Affordable Housing, Page 2 of 4 1-person 4-person Household Household 80% of AMI $31,300 $44,700 120% of AMI $46,920 $67,080 140% of AMI $54,740 $78,260 Monthly Affordability 1-person 4-person Household Household 80% of AMI $783 $1,116 120% of AMI $1,173 $1,677 140% of AMI $1,369 $1,957 Workforce Characteristics The following information is provided for purposes of any discussion relating to the characteristics of our City's workforce. The information on number of workers and average wage is provided by the Florida Department of Revenue. Number of Percent of Employees Workforce Hospitality, Arts, Entertainment& Recreation 19,287 39% Health Care & Education 10,172 21% Retail Trade and Services 6,541 13% Public Administration 1,945 4% 37,945 77% These four sectors represent 77%of the total jobs in Miami Beach,and have been identified as "Essential Service Personnel" (ESPs) in the City's Local Housing Assistance Plan (LHAP). The following reflects the average wage and monthly rental affordability for these essential services personnel. Please note that,with the exception of Public Administration,for a single person making the industries' average wage, their monthly affordability qualifies for traditional affordable housing programs. Avg Wage 30% Housing Affordability Hospitality, Arts, Entertainment& Recreation $22,761 $569 Health Care & Education $41,143 $1,029 Retail Trade and Services $20,763 $519 Public Administration $55,797 $1,395 Citywide All Jobs $30,850 $771 Apartment Market Below, please find an analysis of the City's current housing stock,with detailed information on the rental apartment rents and inventory in our City. The last chart reflects the current vacancy rates for apartments in the area;however,the vacancy rate does not differentiate by apartment size. The number of housing units for each type and size are from the City's tax roll. The information on the area's apartment inventory and vacancy rate was provided by Integra Realty Associates (IRR),as was the citywide average and median rental rates. The Neighborhoods Committee January 11, 2007 Affordable Housing, Page 3 of 4 rental rates for each type of apartment was derived by the Administration utilizing per square foot monthly rental rate estimates based on market data and the information provided by IRR. Total Housing Units Single Family Homes 5,603 Condominiums 37,119 Rental Apartments 22,461 Rental Apartment Affordability, Inventory and Availability Average Median Number Rent Rent of Units Efficiency $701 $430 2,670 One-Bedroom $916 $821 13,920 Two-Bedroom $1,970 $1,589 5,812 Three+ Bedroom $2,128 $2,346 47 Citywide 1,371 $865 22,461 Total Apartments— Miami Beach/Miami Bayshore/Bal Harbour/Golden Beach 2000 2001 2002 2003 2004 2005 Occupied 30,916 31,250 30,596 30,476 29,889 26,401 Vacant 783 1,627 3,090 3,694 1,737 1,328 Vacancy Rate 2.5% 4.9% 9.2% 10.8% 5.5% 4.8% PROPOSED FORMULA For housing projects into which RDA funds are invested, the proposed formula described below shall apply to the project.The proposed formula includes two primary criteria: income and employment, each of which is separately applicable to the project. Income 1. A minimum of 30%of the units must be provided to individuals/households earning below 50% of the Area Median Income (AMI); 2. A minimum of 50% of the units must be provided to individuals/households earning between 50-80% of the AMI; 3. A maximum of 20%of the units may be provided to individuals/households earning between 80-120% of the AMI. Employment—set-aside for households working in Miami Beach 1. A minimum of 40%of the units must be provided to households in which at least one person demonstrates proof of employment by a business with a valid Miami Beach occupational license. Of the units that are set aside as units for persons that work in Miami Beach: Neighborhoods Committee January 11, 2007 Affordable Housing, Page 4 of 4 a. At least seventy-five (75%) percent of the units must be provided to employees of businesses that meet the definition of "essential services personnel," as defined in the LHAP; b. Up to twenty-five (25%) percent of the units may be provided to income- qualifying employees of any business with a valid Miami Beach occupational license. 2. Households that are provided a unit under this program must meet one of the three income criteria identified above. As an example, the potential purchase of the buildings identified by MBCDC, after renovation, represents between 114 and 140 units. Using 140 units as an example; • At least 42 units must be leased to households below 50% AMI; • At least 70 units must be leased to households between 50 and 80% AMI; • Up to 28 units may be leased to households between 80 and 120% AMI; and At least 56 units must be leased to income-qualifying employees of Miami-Beach businesses, of which; o At least 42 units must be leased to employees that qualify as ESPs; and o Up to 14 units may be leased to employees of any licensed Miami Beach JM4business. 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