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HomeMy WebLinkAbout2000-23972 RESO RESOLUTION NO. 2000-23972 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AGREEMENT BETWEEN THE CITY AND DADE EMPLOYMENT AND ECONOMIC DEVELOPMENT CORPORATION, INC. (DEEDCO) WHICH PROVIDES $339,971 FROM FISCAL YEAR 1999/2000 HOME PROGRAM FUNDS TOWARD THE COST OF ACQUISITION AND REHABILITATION OF THE PROPERTY AT 7734 ABBOTT AVENUE, WHICH WILL BE REHABILITATED TO PROVIDE EIGHT ONE-BEDROOM AND FOUR EFFICIENCY RENTAL UNITS FOR INCOME- ELIGmLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; FURTHER, RESCINDING THE HOME PROGRAM AGREEMENT BETWEEN THE CITY AND DEEDCO, DATED JULY 2,1998, AND FURTHER MAKING THE AFORESAID APPROVAL OF THE NEW AGREEMENT AND RECISION OF THE JULY 2, 1998 AGREEMENT CONTINGENT UPON DEEDCO'S REPAYMENT OF $285,906 TO THE CITY, WHICH REPRESENTS THE FULL AMOUNT OF THE MONIES AWARDED TO DEEDCO PURSUANT. TO SAID JULY 2, 1998 AGREEMENT. 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, 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 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, the City's Loan Review Committee, at its May 12, 2000 meeting, reviewed applications submitted and recommended HOME Program funding in the amount of$339,971 for Dade Employment and Economic Development Corporation, Inc. (DEEDCO) for the acquisition and rehabilitation of the building located at 7734 Abbott Avenue, Miami Beach, to provide eight one- bedroom and four efficiency apartments, to provide rental housing to income-eligible tenants in accordance with the HOME Program requirements; and WHEREAS, the City and DEEDCO agree to rescind the HOME Program Agreement dated July 2, 1998; and WHEREAS, the City and DEEDCO agree to make the approval of the attached HOME Program Agreement and recision of the July 2, 1998 HOME Program Agreement contingent upon DEEDCO's repayment of $285,906 to the City, which represents the full amount of the monies awarded to DEEDCO pursuant to said July 2, 1998 Agreement; and WHEREAS, the Administration now requests that the attached HOME Program Agreement be approved by the Mayor and City Commission and executed by the Mayor and City Clerk. 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 the attached HOME Investment Partnerships (HOME) Program Agreement between the City and Dade Employment and Economic Development Corporation, Inc. (DEEDCO) which provides $339,971 from fiscal year 1999/2000 home program funds toward the cost of acquisition and rehabilitation of the property at 7734 Abbott Avenue, which will be rehabilitated to provide eight (8) one-bedroom and four (4) efficiency rental units for income-eligible tenants in accordance with the HOME Program requirements; further, rescinding the HOME Program Agreement between the City and DEEDCO, dated July 2, 1998, and further making the aforesaid approval of the new Agreement and recision of the July 2, 1998 Agreement contingent upon DEEDCO' s repayment of $285,906 to the City, which represents the full amount of the monies awarded to DEEDCO pursuant to said July 2, 1998 Agreement. PASSED AND ADOPTED THIS 28th DAY OF June ,2000 ATTEST: CITY CLERK MAYOR F:\DDHP\SALL\BETH\DEEOCO\6-OODEED.RES APPROVED PS TO FORM & lAl'''GUAGE & FOR EXECUTION tJ!{~ (, - 2-d -ov OatG CITY OF MIAMI BEACH Community/Economic Development Department Interoffice Memorandum m To: Mercedia Williams Date: March 14,2001 From: Russell Shreeve ~ Housing Specialist Subject: Resolution No. 2000-23972 lU1d Follow-Up Resolution No. 2000-24107 Resolution No. 2000-23972 was adopted as amended on June 28, 2000. The amendment of Commissioner Smith added the words: "The above is conditional on DEEDCO applying to the County for additional funds, upon the receipt of which to reimburse the City the greater of $54,000 or the amount received by the County." Commissioner Bower also added: "Subject tp re- configuring the project to six two-bedroom apartments." Following the action of the City Commission, Arthor Jackson, Executive Director of Dade Employment lU1d Economic Development Corporation, Inc. (DEEDCO), met with Miami-Dade County Office of Community lU1d Economic Development (OCED) to inquire about applying for County Community Development Block Grant (CDBG) funds. Mr. Jackson was advised that since Miami Beach received an allocation of CDBG funds, OCED would not favorably review an application for a project on Miami Beach. The results of Mr. Jackson's meeting with OCED was reported to Miguell Del Campillo in a letter dated July 31, 2000. . Since DEEDCO could not receive additional funding from the County and meet the conditions Of) the amended Resolution No. 2000-23972, the same agreement with Resolution No. 2000-23972 was preseI1ed at the meeting of the City Commission on October 18, 2000 with a new Resolution No. 2000-24107. At that time the City Commission adopted Resolution No. 2000-24107 which approved the agreement with DEEDCO for HOME Program funds. c: Miguell Del Campillo, Housing Division Director C~I T Y 0 F M I A M I B E A C H CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 hltp:\\ci.miami-beach.fl.us TO; FROM: SUBJECT; COMMISSION MEMORANDUM NO. 4--'19. -0 0 Mayor Neisen O. Kasdin and DATE; June 28, 2000 Members of tbe City Commission Lawrence A~LevY ~ City Manag A RESOr; TION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED HOME INVESTMENT PARTNERSIDPS (HOME) PROGRAM AGREEMENT BETWEEN THE CITY AND DADE EMPLOYMENT AND ECONOMIC DEVELOPMENT CORPORATION, INC. (DEEDCO) WHICH PROVIDES $339,971 FROM FISCAL YEAR 199912000 HOME PROGRAM FUNDS TOWARD THE COST OF ACQUISITION AND REHABILITATION OF THE PROPERTY AT 7734 ABBOTT AVENUE, WHICH WILL BE REHABILITATED TO PROVIDE EIGHT ONE-BEDROOM AND FOUR EFFICIENCY RENTAL UNITS FOR INCOME-ELIGIBLE TENANTS IN ACCORDANCE WITH THE HOME PROGRAM REQUIREMENTS; FURTHER, RESCINDING THE HOME PROGRAM AGREEMENT BETWEEN THE CITY AND DEEDCO, DATED JULY 2,1998, AND FURTHER MAKING THE AFORESAID APPROVAL OF THE NEW AGREEMENT AND RECISION OF THE JULY 2, 1998 AGREEMENT CONTINGENT UPON DEEDCO'S REPAYMENT OF $285,906 TO THE CITY, WHICH REPRESENTS THE FULL AMOUNT OF THE MONIES AWARDED TO DEEDCO PURSUANT TO SAID JULY 2, 1998 AGREEMENT. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS 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 September 29,1997, the City issued a Notice of Funding Availability (NOFA) in the amount of $285,906, to provide housing in accordance with the City's HOME Program. Dade Employment F:\ODHPo.$ALl\MlGUELL\6-OllDIlED.MEM AGENDA ITEM Cic DATE G;,,- 2~ -:CU Commission Memorandum June 28, 2000 DEEDCO NOF A Application Page 2 and Economic Development Corporation, Inc. (DEEDCO) was the successful applicant, and they entered into a HOME Program Agreement with the City in the amount of $285,906 to acquire and rehabilitate a building at 7734 Abbott Avenue, Miami Beach. The building contains eight one- bedroom and four efficiency apartments. Under the terms of the HOME Agreement, DEEDCO was to reconfigure the building to convert the 12 units into eight two-bedroom apartments. In accordance with the HOME Program requirements, DEEDCO was to provide these rental units for income- eligible tenants for a period of ten years after the rehabilitation of the building was completed. DEEDCO also received an affordable housing loan for this project in the amount of $250,000 from the Florida Department of Community Affairs (DCA). Utilizing the DCA loan and part of the HOME Program funds, DEEDCO acquired the building for $360,000, and a First Mortgage was issued to DCA. DEEDCO sought and received bids for the rehabilitation work, and the bids exceeded the previously estimated rehabilitation costs. Therefore, DEEDCO requested that in order to make the project more feasible in the long term, the City allow them to change the Scope of Work of the HOME Program Agreement in order to rehabilitate the building retaining the 12 units rather than re-configuring the building to provide eight units as stipulated by the Agreement. The Office of the City Attorney reviewed the request from DEEDCO and opined that the Scope of Work could not be changed because DEEDCO had been awarded the HOME Program funds under a competitive NOF A process. In order to salvage the project, and in an effort to prevent tenant displacement and the associated federally mandated relocation costs that could be incurred if the project did not go forward, the City and DEEDCO collaborated to fmd alternative funding for the project. DEEDCO agreed to seek new funding and to renegotiate the terms of the DCA loan with the State. The City also confirmed with U.S. HUD that DEEDCO would be eligible to seek new funding for this activity under a new HOME Program NOFA to be issued by the City. OnJanuary 31, 2000, the City issued anew HOME Program NOFA in the amountof$1,18l,653. These funds were to be used for acquisition and/or rehabilitation of multi-family rental buildings or scattered site units for the purpose of providing affordable rental housing. Under the terms of the NOF A, applications were accepted beginning March 1,2000. In response to the NOF A, the City has received four applications from three different applicants. In accordance with the terms of the NOF A, applications were reviewed by City staff for completeness and compliance with the terms of the NOFA and the HOME Program requirements. On May 12,2000, the four applications were presented to the City's Loan Review Committee (LRC) for review and recommendation. The LRC recommended that the City Commission fund all four applications. The LRC recommended funding for an application from DEEDCO requesting $339,971 toward the repayment of the previously awarded HOME grant for the rehabilitation of the DEEDCO Beach Apartments at 7734 Abbott Avenue, to provide eight one-bedroom and four efficiency rental units. F:IDDHP\SALLIMIOUELL\6<<lDI!I!D.MI!M Commission Memorandum June 28, 2000 DEEDCO NOF A Application Page 3 In accordance with the HOME Program requirements, DEEDCO is to provide these rental units for income-eligible tenants for a period often years after the rehabilitation of the building is completed. Since DEEDCO has utilized the previously approved DCA loan in the amount of $250,000 toward the purchase of the property, they have requested that DCA change the time of repayment from five years to ten years. This extension to ten years would provide five additional years without the payment of principal or interest on the DCA loan which would further enhance the financial viability of the project. DCA is currently in the process of reviewing the details of the request. The City is proposing to enter into a HOME Program Agreement in the amount of$339,971 with DEEDCO, contingent on the Agreement dated July 2, 1998 being rescinded, and the City recapturing the $285,906 HOME Program funds provided by that Agreement. In accordance with HOME Program requirements, these recaptured funds are to be utilized to fund eligible HOME Program activities. The Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute the attached HOME Investment Partnerships (HOME) Program Agreement between the City and Dade Employment and Economic Development Corporation, Inc. (DEEDCO) which provides $339,971 from fiscal year 1999/2000 HOME Program funds toward the cost of acquisition and rehabilitation of the property at 7734 Abbott Avenue, which will be rehabilitated to provide eight one-bedroom and four efficiency rental units for income-eligible tenants in accordance with the HOME Program requirements; further, rescinding the HOME Program Agreement between the City and DEEDCO, dated July 2,1998, and further making the aforesaid approval of the new Agreement and recision of the July 2, 1998 Agreement contingent upon DEEDCO's repayment of $285,906 to the City, which represents the full amount of the monies awarded to DEEDCO pursuant to said July 2, 1998 Agreement. ~ w4- }\A...d/XL':- LAL/CMC/RM/MDClRS P;\DOHPISALL\MIGUI!l.L~.MEM CITY OF MIAMI BEACH MEMORANDUM TO: Russell Shreeve (PJ3() J ou , lei {, A,A<<,,,e ",dt rJ7 oc.v' FROM: Robert Parcher ~ City Clerk DATE: June 29, 2000 SUBJECT: Agreement Enclosed are three agreements with the Dade Employment and Economic Development (DEEDCO), for the signature of the appropriate officials. After obtaining the applicable signature, please return the documents to the City Clerk's Office, to the attention of Mercy Williams. Subsequently, a fully executed copy will be forwarded to you for your files in addition to a copy of the resolution authorizing said agreements (Resolution No. 2000-23972, 6/28/2000 C-7-E). Thank you. CITY OF MIAMI BEACH MEMORANDUM TO: Russell Shreeve f \00 t ~ ~\\\ Y rf' Q) /Dr r}9 FROM: Robert Parcher ~ ~ I2P City Clerk DATE: June 29, 2000 SUBJECT: Agreement Enclosed are three agreements with the Dade Employment and Economic Development (DEEDCO), for the signature of the appropriate officials. After obtaining the applicable signature, please return the documents to the City Clerk's Office, to the attention of Mercy Williams. Subsequently, a fully executed copy will be forwarded to you for your files in addition to a copy of the resolution authorizing said agreements (Resolution No. 2000-23972, 6/28/2000 C-7-E). Thank you. HOME PROGRAM AGREEMENT THIS AGREEMENT, entered into this _ day of ,2000, 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 the DADE EMPLOYMENT AND ECONOMIC DEVELOPMENT CORPORATION, INC., a Florida Not-for-Profit Corporation, with offices located at 141 NE Third Avenue, Suite 500, Miami, Florida (DEEDCO). WITNESSETH: WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued rules providing for the utilization of Federal funds in the provision of affordable housing for low income persons under the HOME Investment Partnerships Act; and WHEREAS, the City has established a HOME Investment Partnerships Program (HOME Program) under the HUD rules, which provides financial assistance for the purpose of providing affordable housing within the City; 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 as amended, 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 (NOF A) 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, in response to the NOF A, DEEDCO has submitted an application to the City requesting $339,971 of fiscal year 1999/2000 HOME Program funds for the acquisition and rehabilitation of the building located at 7734 Abbott Avenue, Miami Beach, which building contains 12 rental units which consists of eight (8) one-bedroom units and four (4) efficiency units; and WHEREAS, on May 12,2000, the City's Loan Review Committee reviewed applications submitted and recommended HOME Program funding for an amount not to exceed $339,971 toward the acquisition and rehabilitation of the building located at 7734 Abbott A venue, provided DEEDCO rescinded the funds previously awarded; and WHEREAS, the City and DEEDCO agree to rescind the HOME Program Agreement dated July 2, 1998; and WHEREAS, the City and DEEDCO agree to make the approval of the attached HOME Program Agreement and recision of the July 2, 1998 HOME Program Agreement contingent upon 1 DEEDCO's repayment of $285,906 to the City, which represents the full amount of the monies awarded to DEEDCO pursuant to said July 2, 1998 Agreement.; and WHEREAS, DEEDCO warrants and represents that it possesses the legal authority to enter into this Agreement, by way of a resolution, motion, or similar action that has been duly adopted or passed as an official act of DEEDCO's governing body, authorizing the execution of this Agreement, including all understandings and assurances contained herein, and authorizing the person identified as the official representative of DEED CO to act in connection with this Agreement and to provide such additional information as may be required; and WHEREAS, it is acknowledged and agreed that funds to be granted to DEEDCO derive from Federal funds appropriated to the City by HUD, for the uses and purposes herein referred to and, accordingly, it is acknowledged and agreed that this Agreement is entered into in compliance by the parties with all applicable provisions of Federal, State and local laws, statues, rules and regulations. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: ARTICLE I DEFINITIONS As used in this Agreement the terms listed below shall have the following meanings: (a) HOME: HOME Investment Partnerships Program, 24 CFR Part 92, as amended. (b) HUD: United States Department of Housing & Urban Development or any successor agency. (c) Funds: HOME Program funds. (d) Terms defined in the HOME Investment Partnerships Program Final Rule, 24 CFR Part 92, September 16, 1996, and any amendments thereto: Any term defined in the HOME Investment Partnerships Program Rule, not otherwise defined in this Agreement, shall have the meaning set forth in said rule. (e) HOME Assisted Units: A term that refers to the number of units within a HOME project for which rent, occupancy, and/or resale restrictions apply. 2 I ART~LE II ALLOCATION F HOME FUNDS In consideration for the performance by DEEDCO of its role and responsibilities set forth in this Agreement, the City agrees to provide a conditional grant of HOME funds to DEEDCO in the amount of Three Hundred Thirty-Nine Thousand, Nine Hundred Seventy-One Dollars ($339,971) (Funds). The Funds will be utilized by DEEDCO for a rental housing project that provides for the acquisition, rehabilitation, and operation of the property located at 7734 Abbott Avenue, Miami Beach, that will provide 12 units for income eligible tenants. DEEDCO will acquire and rehabilitate the building as more fully described in the Scope of Services (Exhibit A) and Budget (Exhibit B). DEED CO will maintain required HOME Program rent and occupancy limitations for a minimum period of IO-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. DEEDCO agrees to rescind the HOME Program Agreement with the City dated July 2, 1998. Further DEEDCO also agrees that the approval of this Agreement and the recision of the July 2, 1998 HOME Program Agreement are contingent upon DEEDCO's repayment of $285,906 to the City, which represents the full amount of monies awarded to DEEDCO pursuant to said July 2,1998 Agreement. This repayment of funds to the City by DEEDCO will be accomplished with a one time payment of$142,707.76 in the form of a cashier's check payable to the City of Miami Beach for funds advanced under the terms of the July 2, 1998. DEEDCO agrees to release the balance of $143,198.24 in HOME Program funds committed under the July 2, 1998 Agreement as part of the recision of said Agreement. ARTICLE III PROG$M INCOME DEEDCO agrees that any program income generated from the use of HOME funds under this Agreement, will be identified and prorated in accordance with the HOME Regulations, 24 CFR Part 92, as amended. ARTICLE IV SPECIAL PROVISIONS APPLICABLE TO FUNDS PROVIDED UNDER THE HOME PROGRAM DEEDCO expressly agrees to the following terms and conditions in conformity with the HOME Program Final Rule, 24 CFR Part 92.503(b). (a) Affordability Period. The period of time HOME assisted units must remain affordable is in accordance with 24 CFR 92.252 (rental housing) beginning after project completion. The Funds, in accordance with the Scope of Services (Exhibit A) and Budget (Exhibit B), shall be repaid 3 to the City in the event the housing does not meet the affordability requirements for the required time period in accordance with 24 CFR 92.252 (rental housing). (b) Repayment of Funds; Transfer ofTitIe. The Funds (which definition shall include the allocation of any additional funds that may be provided by the City in the future as a result of an amendment or modification of this Agreement) shall be repaid in their entirety if the HOME units do not meet the affordability requirements for the required time period. in accordance with the terms of this Agreement and the Regulations. Any violation of the affordability requirements may, at the City's option, result in the entire amount of the Funds, as indicated in Article II or as subsequently amended or modified, to be returned and/or otherwise repaid by DEED CO to the City, and same shall be considered and treated as an Event of Default pursuant to Article XXVI herein. The City reserves the right to review the affordability requirements, as set forth herein. Concurrent with its execution of this Agreement and/or any projects pursuant to this Agreement, DEEDCO shall execute a Restrictive Covenant in the format provided by the City, incorporating the terms of this section, which shall be recorded in the Official Records of Miami-Dade County Florida. (c) Rent Limitation. HOME assisted rental units will bear rents in accordance with 24 CFR 92.252. The City shall provide a HOME Program Rent schedule annually to DEEDCO. (d) Rent schedule and utility allowances. In accordance with 24 CFR 92.252(b)(c) and (d), the City must review and approve rents and the monthly utility allowances proposed by the owner prior to initial occupancy. DEEDCO must re-examine and document the income of each tenant living in the HOME assisted units annually. The maximum monthly rent must be recalculated by DEEDCO and reviewed and approved by the City annually. (e) DEEDCO shall comply with all applicable federal regulations as they may apply to restrictions and limitations regarding real property under DEEDCO's control acquired or improved in whole or in part with HOME funds. The Funds shall be subject to all of the terms and conditions of the HOME Program, 24 CFR Part 92, and any amendments thereto. (f) After rehabilitation, the Project must provide safe, sanitary, and decent residential housing for low-income and very low-income persons (i.e., a person whose income is within specific income levels set forth by HUD). ~ (g) Income Targeting. DEEDCO shall maintain written documentation that conclusively demonstrates that each project assisted in whole or in part with HOME funds provides benefit to very-low (families whose annual incomes that do not exceed 50 percent of the median family income for the area) and low-income (families whose annual incomes do not exceed 80 percent of the median income for the area) as determined by HUD. 4 (h) Records: DEEDCO shall maintain all records sufficient to meet the requirements of24 CFR 92.508(a)(2) program records, 92.508(a)(3) project records, 92.508(a)(5) other Federal requirements records, 92.508(a)(6) program administration records. All records required herein shall be retained and made accessible as provided in 24 CFR 92.508 (c) and (d) and Florida Statutes Chapter 119. (i) Property Standards. For the duration of this Agreement and any amendments hereto, housing that is assisted with HOME funds, must meet all applicable local codes, rehabilitation standards, ordinances and zoning ordinances at the time of project completion. An owner of rental housing assisted with HOME funds must maintain the housing in compliance with all applicable State and local housing quality standards and code requirements. The owner of rental housing assisted with HOME funds will maintain the housing in compliance with the applicable local housing code requirements for the duration of this agreement and any amendments hereto. The City shall conduct annual or bi-annual, as reauired, on-site inspections of rental projects to determine compliance with housing codes. The City may select a sample of the units in the project to satisfy the inspection requirements. (j) Environmental Clearance. For the Project described in the Scope of Services (Exhibit A), attached hereto, DEEDCO shall obtain the City's written environmental clearance statement and shall agree in writing to comply with any and all requirements as may be set forth in the Site Environmental Clearance Statement. (k) Affirmative Marketing. In order to provide persons in the housing market area with a range of housing choice, regardless of race, color, religion, sex, handicap, familial status, or national origin, DEEDCO agrees to administer the HOME Program in a manner that will affirmatively further the purposes of Title VI of the Civil Rights Act of 1964 at 24 CFR 1, the Fair Housing Act at 24 CFR 100 and Executive Order 11063 at 24 CFR 107. Owner will submit its written procedures that implement these requirements for review and approval by the City. (I) Tenant and Participant Protections. DEEDCO agrees that the lease to be executed with the tenants of rental housing must be in accordance with 24 CFR 92.253. ARTICLE V ELIGIBLE COSTS DEEDCO agrees that eligible costs for the project under this Agreement are limited to those eligible costs as outlined in 24 CFR 92.206 of the HOME Program regulations. ARTICLE VI DISBURSEMENT OF FUNDS (1) The Funds may be used by DEEDCO for eligible acquisition, relocation or rehabilitation costs. Pursuant to the project Budget (Exhibit B), DEEDCO may utilize up to $6,000 ofthe Funds 5 for relocation costs. In the event that relocation costs are less than $6,000, the balance of Funds may be used towards the cost of acquisition or rehabilitation. (2) The portion of the Funds to be used toward the cost of rehabilitation shall be disbursed by the City to DEEDCO as follows: During the construction phase, and not more often than once a month, a payment may be requested equivalent to ninety percent (90%) of the value of the work completed in the previous period, as certified by DEEDCO's Architect or Engineer, and confirmed by the City's CommunitylEconomic Development Department. The final ten percent (10%) of the rehabilitation payment shall be paid following the completion, approval and acceptance of the rehabilitation work and related documentation by all the governmental agencies and authorities having jurisdiction over the Project. (3) Any payment due underthe terms ofthis Agreement may be withheld pending the receipt and approval by the City of all reports and documents which DEEDCO is required to submit to the City pursuant to the terms of this Agreement or any amendments thereto. (4) No payments will be made without evidence of appropriate insurance required by this Agreement. Such evidence must be on file with the City. (5) DEEDCO understands and agrees that disbursement requests for funds under this Agreement are only to be requested when the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount needed. ARTICLE VII SUBCONTRACTS (a) DEEDCO shall use its best efforts to include a statement in all subcontracts that it executes that the subcontractor shall hold the City harmless against all claims of whatever nature arising out of the subcontractor's performance of work under this Agreement to the extent allowed by law. (b) If DEEDCO subcontracts, a copy of the executed subcontract must be forwarded to the City within ten (10) days after execution. ARTICLE VIII CONDITIONS OF SERVICES (a) As a condition of these services, DEEDCO agrees to comply with the HOME Program Final Rule, 24 CFR Part 92, and any Amendments or Notices issued pursuant thereto. (b) DEED CO agrees to comply with the requirements of Executive Orders 11625 and 12432 concerning Minority Business Enterprise and 12138 Women's Business Enterprise which encourage the use of minority and women's business enterprises, to the maximum extent possible, in connection with HOME-funded activities. 6 (c) DEEDCO agrees to comply with the Displacement, Relocation and Acquisition requirements in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.c. 4201-4655) and 49 CFR Part 24. (d) DEEDCO agrees to comply with all ofthe following federal laws, executive orders, and regulations pertaining to fair housing and equal opportunity. (I) Title VI ofthe Civil Rights Act ofl964, As Amended (42 U.S.C. 2000d) -- States that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving federal financial assistance on the basis of race, color, or national origin. Its implementing regulations may be found in 28 CFR Part I. (2) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42 U.S.C. 3601) and its implementing reg1.11ations at 24 CFR Part 100-115 '- Prohibits discrimination in the sale or rent of units in the private housing market against any person on the basis of race, color, religion, sex, national origin, familial status or handicap. 3) Equal Opportunity in Housing (Executive Order 11063, As Amended by Executive Order 12259) and implementing regulations at 24 CFR Part 107 -- Prohibits discrimination in housing or residential property financing related to any federally assisted activity against individuals on the basis of race, color, religion, sex or national origin. 4) Age Discrimination Act ofl975, As Amended (42 U.S.C. 6101) and its implementing regulations at 24 CFR Part 146 -. Prohibits age discrimination in programs receiving federal financial assistance. 5) Equal Employment Opportunity, Executive Order 11246, As Amended and its implementing regulations at 41 CFR Part 60 -. Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. (e) DEEDCO agrees to comply with the requirements of Section 3 of the Housing and }Jrban Development Act of 1968 (12 U.s.C. 1701u) -- Requires that, to the greatest extent feasible, opportunities for training and employment arising from HOME will be provided to low-income persons residing in the program service area; and, to the greatest extent feasible, contracts for work to be performed in connection with HOME will be awarded to business concerns which are located in or owned by persons residing in the program service area. (f) DEEDCO will ensure that all units in a project assisted with HOME funds comply with the Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et) and its implementing regulations at 24 CFR 35. 7 (g) DEEDCO agrees to comply with the Federal Labor Standards Provisions, as described in HUD Handbook 1344-1 (Federal Labor Standards Compliance in Housing and Community Development Programs) -- Applies to all projects with 12 or more HOME-assisted units, regardless of whether HOME funds are used for construction or other costs. (h) DEEDCO agrees to comply with the requirements of 24 CFR part 24 regarding debarment and suspension. ARTICLE IX TERM OF AGREEMENT This Agreement shall be effective upon execution by both parties and shall end at the conclusion of the ten (10) year period of affordability as specified in 24 CFR 92.252 (affordable rental housing). ARTICLE X TERMINATION The City and DEEDCO agree that this Agreement may be terminated by the City in whole or in part, for cause (as more specifically defined in Article XXVI herein) or for convenience, in accordance with the provisions of 24 CFR, Part 85.44. A written notification shall be required at least thirty (30) days prior to the effective date of such termination, and shall include the reason for the termination (if for cause), the effective date, and in the case of a partial termination, the actual portion to be terminated. Notwithstanding the language set forth herein, the City's reasons for terminating the Agreement for convenience, in whole or in part, shall not be arbitrary or capricious. ARTICLE XI AMENDMENTS Any alterations, variations, modifications or waivers of any provisions to this Agreement. including an increased allocation of funds, shall only be valid when they have been produced in writing and duly signed by both parties hereto. Any changes which do not substantially change the Scope of Services or increase the total amount payable under this Agreement, shall be valid only when reduced to writing and signed by the City Administration and DEEDCO. ARTICLE XII CONFLICT OF INTEREST (a) DEEDCO shall comply with the standards contained within 24 CFR Part 92.356 which states that no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent or consultant of the owner, developer or sponsor) whether private-for-profit or non-profit, may occupy a HOME-assisted affordable housing unit in a project. This provision does not apply to an 8 employee or agent of the owner or developer of a rental housing project who occupies a HOME- assisted unit as the project manager or maintenance worker. Exceptions may be granted by the City in accordance with 24 CFR Part 92.356(1)(2). (b) DEEDCO shall disclose any possible conflicts of interest or apparent improprieties of any party that is covered by the above standards. DEEDCO shall make such disclosure in writing to the City immediately upon DEEDCO's discovery of such possible conflict. The City will then render an opinion which shall be binding on all parties. (c) Related Parties. DEED CO shall report to the City the name, purpose, and any other relevant information in connection with any related-party transaction. This includes, but is not limited to, a for-profit subsidiary or affiliate organization, an organization with overlapping boards of directors, and an organization for which DEEDCO is responsible for appointing memberships. DEEDCO shall report this information to the City upon forming the relationship or, if already formed, shall report it immediately. Any supplemental information shall be reported to the City in the required Progress Report. ARTICLE XIII INDEMNIFICATION AND INSURANCE DEEDCO, through an insurance carrier, shall indemnifY and hold harmless the City from any and all claims, liabilities, losses, and causes of action which may arise out of an act, omission, negligence or misconduct on the part of DEEDCO or any of its agents, servants, employees, contractors, patrons, guests, clients, or invitees. DEED CO, through its insurance carrier, shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the City, when applicable, and shall pay all costs and judgements which may issue thereon. DEEDCO shall maintain during the term of this Agreement, the insurance specified below. (I) General Liability: $500,000 combined single limit for bodily injury and property damage, for each occurrence. (2) Contractual Liability: the policy must include coverage to cover the above indemnification. (3) Automobile and vehicle coverage in the amount of $500,000 per occurrence shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement, including non-owned automobile coverage. ( 4) Workers' Compensation Coverage as per statutory limits of the State of Florida. (5) Builders Risk/Comprehensive Fire and Hazard Insurance: Full replacement cost of the project. DEEDCO shall deliver to the City the original policy of Builder's Risk and Comprehensive Fire and 9 Hazard Insurance in completed value form with extended coverage in the amount of the full insurable value of the Project upon completion of construction. issued by a company satisfactory to the City. (6) Flood Insurance: DEEDCO shall deliver to the City evidence satisfactory to the City that the premises are covered by flood insurance supplied by the Federal Insurance Administration to the maximum amount available, all as provided in the Flood Disaster Protection Act of 1973, as amended, together with appropriate endorsement. DEEDCO agrees that the City shall have the right to take any action necessary to continue said insurance in full force. DEEDCO shall submit to the City an ORIGINAL Certificate of Insurance for the above coverage. The City of Miami Beach shall be named as an additional insured - to the extent of its insurable interest on all policies required herein. All insurance coverage shall be approved by the City's Risk Manager prior to the release of any funds under this Agreement. Further, in the event evidence of such insurance is not forwarded to the City's Risk Manager within thirty (30) days after the execution of this Agreement, this Agreement shall become null and void, and the City shall have no obligation under the terms thereof unless a written extension of this thirty (30) day requirement is secured from the Risk Manager. ARTICLE XIV REPORTS (1) Progress Reports. DEEDCO agrees to submit monthly progress reports to the City, describing the status of each project and achievement of the project objectives as provided herein and in the Scope of Services (Exhibit A) and Budget (Exhibit B), attached hereto. The progress reports shall be submitted no later than 10 days after the end of each month until such time as all funds are expended or, for rental projects, until the project is fully occupied. It will be the responsibility of DEED CO to notify the City in writing, of any actions, law, or event, that will impede or hinder the success of the projects and activities as provided in this Agreement. After such notification the City will take whatever actions it deems appropriate to ensure the success of the program. (2) Tenant and Rent Schedule Certification. a. DEEDCO shall submit to the City for approval the proposed rents for the HOME units and, if applicable, the monthly allowances for utilities and services to be paid by the tenant. The City shall approve submitted rents if such rents comply with applicable Federal standards, or if HUD has approved same. b. DEEDCO shall provide the City with the initial tenant list, and any and all subsequent updates, amendments and modifications thereto, with documentation for all tenants in the HOME units confirming family size, income, financial classification, ethnicity, and the amount of the HOME rent. This report will continue to be required for the full period of affordability hereunder, beginning on the date of issuance of a Final Certification of Completion for the project. 10 c. Annually, DEEDCO shall deliver to the City's Housing and Community Development Division, by November 1st of each calendar year, its signed report in form and substance acceptable to the City, to include names of tenants. unit type, family size and income. rents charged, and occupancy/vacancy factor of each unit for the prior fiscal year (October 1st through September 30th). The report will continued to be required for the full IO-year period of affordability hereunder beginning on the date of issuance of a Final Certificate of Completion for the project. (3) Other reports as may be required by the City to demonstrate compliance with any of the terms of this Agreement. If the required reports described above are not submitted to the City or are not completed in the manner acceptable to the City, the City may v.ithhold further payments until they are completed or may take any other action as the City may deem appropriate. ARTICLE XV AUDIT AND INSPECTIONS At any time during normal business hours and as often as the City administration and/or the comptroller of the United States may deem necessary, there shall be made available to the City administration and/or representatives of the comptroller to audit, examine and make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. If during the course of a monitoring, the City determines that any payments made to DEEDCO do not constitute an allowable expenditure, the City will have the right to deduct/reduce those amounts from their related invoices. DEEDCO must maintain records necessary to document compliance with the provisions of this Agreement. ARTICLE XVI COMPLIANCE WITH LOCAL STATE AND FEDERAL REGULATIONS DEEDCO agrees to comply with all applicable Federal regulations as they may apply to program administration. Additionally, DEEDCO will comply with all State and local laws and ordinances hereto applicable. ARTICLE XVII ADDITIONAL CONDITIONS (a) Title and paragraph headings are for convenient reference and are not a part of this Agreement. (b) In the event of conflict between the terms of this Agreement and any terms or conditions contained in any attached document, the terms in this Agreement shall rule. (c) No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or any other provision hereof. and no waiver shall be effective unless made in writing. 11 ARTICLE XVIII ACCESS TO RECORDS DEEDCO, agrees to allow access during normal business hours to all financial records to authorized Federal, State or City representatives and agrees to provide such assistance as may be necessary to facilitate financial audit by any of these representatives when deemed necessary to insure compliance with applicable accounting and financial standards. DEEDCO shall allow access during normal business hours to all other records, forms, files, and documents which have been generated in performance ofthis Agreement, to those personnel as may be designated by the City. ARTICLE XIX SEVERABILITY OF PROVISIONS If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable law. ARTICLE XX PROJECT PUBLICITY DEEDCO agrees that any news release or other type of publicity pertaining to the acquisition of the project as stated herein must recognize the City as the recipient funded by the United States Department of Housing and Urban Development administered by the City's Community/Economic Development Department and the entity which provided funds for the Project. ARTICLE XXI DRUG-FREE WORKPLACE DEEDCO agrees to administer, in good faith, a policy to ensure that it complies with the Drug-Free Workplace Act requirements under 24 CFR Part 24, Subpart F, and will ensure that the workplace is free from the unlawful manufacture, distribution, dispensing, possession or use of drugs or alcohol. ARTICLE XXII NONDELEGABJ ,E DEEDCO agrees that the obligations undertaken pursuant to this Agreement shall not be delegated or assigned to any other person or firm unless the City shall first consent in writing to the performance or assignment of such service or any part thereof by another person or firm. ARTICLE XXIIl SUCCESSORS AND ASSIGNS DEEDCO agrees that this Agreement shall be binding upon the parties herein, their heirs, executors, legal representatives, successors, and assigns. 12 ARTICLE XXIV INDEPENDENT CONTRACTOR DEEDCO and its employees and agents shall be deemed to be independent contractors and not agents or employees of the City, and shall not attain any rights or benefits under the Civil Service or Pension Ordinances of the City, or any rights generally afforded classified or unclassitied employees; further he/she shall not be deemed entitled to the Florida Workers' Compensation benefits as an employee of the City. ARTICLE XXV ASSIGNMENT This Agreement may not be assigned or transferred by DEEDCO without the prior written consent ofthe City thereto, which consent shall not be unreasonably withheld. It shall be deemed a default of this Agreement in the event that DEEDCO does not strictly comply with the procedures established herein for obtaining City consent to assignment or transfer as defined by this Paragraph. In the event such consent is not obtained, in the manner prescribed herein, the City shall be entitled to declare a default, cancel this Agreement, and resort to its rights and remedies against the defaulting party. In the event the Provider transfers an interest of more than one (1 %) percent ownership in its stock by pledge, sale, or otherwise; or if DEEDCO makes an assignment for the benefit of its creditors, or uses this Agreement as security or collateral for any loan; or if the Provider is involved in any bulk transfer of its business or assets, then in that event each of the foregoing actions shall also be deemed an assignment of this Agreement and shall require the City's prior written consent. A merger, dissolution, consolidation, conversion, liquidation or appointment of a receivership for DEEDCO, shall be deemed an assignment of this Agreement and will require the prior written consent of the City thereto. ARTICLE XXVI TERMINATION FOR CAUSE The City may place DEEDCO in default of this Agreement and may suspend or terminate this Agreement in whole or in part for cause, as prescribed in Article X herein. "Cause" shall include, but not be limited to, the following; (a) DEEDCO's failure to (i) diligently pursue additional project financing and to close on the acquisition of the project within 60 days from the date of execution of this Agreement, or (ii) commence work within thirty (30) days from the date of issuance of the Notice to Proceed, or (iii) diligently pursue construction and timely complete the project by securing a Final Certificate of Completion within twelve (12) months from the date of this Agreement. Work shall be considered to have commenced and be in active progress when, in the opinion of the City, a full complement of workers and equipment is present at the site to diligently incorporate materials and equipment into the structure throughout the day on each full working day, weather permitting. 13 (b) DEEDCO's failure to comply with applicable building, tire, life safety, housing and zoning laws, rules, regulations and codes. (c) DEEDCO's default on any of the terms and conditions of the note, mortgage, or other loan document executed by DEED CO in favor of a Lender. (d) DEEDCO's failure to maintain the insurance required by the City and/or Lender. (e) Failure to comply and/or perform in accordance with any of the terms and conditions of this Agreement, or any Federal, State or local regulation. (1) Submitting any required report to the City which is late, incorrect, or incomplete in any material respect after notice and reasonable opportunity to cure, as set forth in subparagraph (h) hereof, has been given by the City to DEEDCO. (g) infeasible. Implementation of this Agreement, for any reason IS rendered impossible or (h) Failure to respond in writing within thirty (30) days of notice of same from City to any concerns raised by the City, including providing substantiating documentation when requested by the City. (i) Any evidence of fraud, waste or mismanagement as determined by the City's monitoring of project(s) under this Agreement, or any violation of applicable HUD rules and regulations. (j) DEEDCO's insolvency or bankruptcy. (k) An assignment or transfer of this Agreement or any interest therein which does not comply with the procedures set forth in Article XXV herein. (I) Failure to comply and/or perform in accordance with the affordability requirements, and/or an unauthorized transfer of title of its HOME projects. (m) Claims oflien not satisfied or bonded-off, in accordance with Florida Statutes, within 60 days from the date of filing of any such lien. In the event of a default the City may, thirty (30) days after mailing to DEEDCO a notice of such default as set forth herein, automatically cancel and terminate this Agreement without liability to any party to this Agreement. If the default complained of is not fully and satisfactorily cured within thirty (30) days of DEED CO's receipt of such notice of default to DEEDCO, at the expiration of said thirty (30) day period (or such additional period of time, as permitted by the City, in its sole discretion, as required to cure such default in the event DEEDCO is diligently pursuing curative efforts) this Agreement may, at the City's sole option and discretion, be deemed automatically canceled and terminated, and the City fully discharged from any and all liabilities, duties and terms arising out of, or accruing by virtue of this Agreement. 14 ARTICLE XXVII TERMINATION FOR CONVENIENCE Notwithstanding Article XXVI above, DEEDCO herein consents that the City may terminate this Agreement, in whole or in part, for convenience, as set forth in 24 CFR Part 85.44. ARTICLE XXVIII ADDITIONAL REMEDIES In the event of a default, the City shall additionally be entitled to bring any and ,,!~ t~gal andlor equitable actions which it deems to be in its best interest, in Miami-Dade County, Florida, in order to enforce the City's rights and remedies against the defaulting party. The City shall be entitled to recover all costs of such actions, including reasonable attorney's fees. To the extent allowed by law, the defaulting party waives its right to jury trial and its right to bring permissive counterclaims against the City in any such action. ARTICLE XXIX MAINTENANCE AND RETENTION OF RECORDS DEEDCO agrees that it will maintain all records required pursuant to 24 CFR Part 92.508, in an orderly fashion in a readily accessible, permanent and secured location, and that it will prepare and submit all reports necessary to assist the City in meeting record keeping and reporting requirements thereunder. (I) Records shall be maintained for a period of five years after the closeout of funds under this Agreement except as provided herein (2), (3) and (4). (2) If any litigation, claim, negotiation, audit or other action has been started before the regular expiration date, the records must be retained until completion of the action and resolution of all issues which arise from it or until the end of the regular period specified in paragraph (I), whichever is later; (3) Records regarding project requirements that apply for the duration of the period of affordability, as well as the written agreement and inspection and monitoring reports must be retained for five years after the afford ability period terminates; (4) Records covering displacements and acquisition must be retained for at least five years after the date by which the persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with 24 CFR 92.353. 15 ARTICLE XXX LIMIT A TION OF LIABILITY 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 $339,971. DEEDCO hereby expresses its willingness to enter into this Agreement with DEEDCO's recovery irom the City for any damage action tor breach of contract to be limited to a maximum amount of $339,971. Accordingly, and notwithstanding any other term or condition of this Agreement, DEEDCO hereby agrees that the City shall not be liable to DEEDCO for damages in an amount in excess 01'$339,971, 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. ARTICLE XXXI VENUE This Agreement shall be enforceable in Miami-Dade-County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. ARTICLE XXXII ADDITIONAL CONDITIONS AND COMPENSATION It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement to be used for the Funds, originated from grants of federal HOME Investment Partnerships Program funds, and must be implemented with all of the applicable rules and regulation of the U.S. Department of Housing and Urban Development. It is expressly understood and agreed that in the event of curtailment or non-production of said Federal grant funds, that the financial sources necessary to continue to pay the Provider the Funds will not be available and that this Agreement will thereby terminate effective as of the time it is determined that said funds are no longer available. In the event of such determination, DEEDCO agrees that it will not look to, nor seek to hold liable, the City or any individual member of the City Commission thereof, personally for the performance of this Agreement and all parties hereto shall be released from further liability each to the other under the terms of this Agreement. ARTICLE XXXIII ACCESSIBILITY LAWS COMPLIANCE DEEDCO agrees to adhere to and be governed by the following accessibility requirements: 16 (a) Architectural Barriers Act of 1968, As Amended (42 U.S.C. 4151) and its implementing regulations at 35 CFR Part 107 -- States that public (i.e., those intended to be accessible to the general public) buildings and conveyances financed with federal funds are designed, constructed, or altered to provide accessibility to the physically handicapped. (b) Section 504 of the Rehabilitation Act of 1973 (29 U.S.c. 794) and implementing regulations at 24 CFR Part 8 -- Prohibits discrimination in federally assisted programs on the basis of handicap and imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive federal funds. (c) Title VIII of the Civil Rights Act of 1968, As Amended the "Fair Housing Act" (42 D.S.C. 3601) and its implementing regulations at 24 CFR Part 100-115. DEEDCO must complete and submit the City's Disability Non-Discrimination Affidavit (Affidavit), a copy of which is attached hereto and incorporated herein as Exhibit C. In the event DEEDCO fails to execute the City's Affidavit, or is found to be in non-compliance with the provisions of the Affidavit, the City may impose such sanctions as it may determine to be appropriate, including but not limited to, withholding of payments to DEEDCO under the Agreement until compliance and/or cancellation, termination or suspension of the Agreement in whole or in part. In the event the City cancels or terminates the Agreement pursuant to this Article, DEEDCO shall not be relieved of liability to the City for damages sustained by the City by virtue of DEEDCO's breach of the Agreement. ARTICLE XXXIV NOTICES All notices shall be sent to the parties at the following addresses: 1fto the City: City of Miami Beach, Community/Economic Development 1700 Convention Center Drive, 3rd Floor Miami Beach, FL 33139 Attn: (1) City Attorney's Office and (2) Housing Coordinator If to DEEDCO: Dade Employment &Economic Development Corporation, Inc. Attn: Arthor 1. Jackson, Executive Director 141 N.E. Third Avenue. Suite 500 Miami, FL 33132 or to such address and to the attention of such other person as the City or DEEDCO may from time to time designate by written notice to the other. 17 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized official( s) on the day and date first above indicated. DADEE~LOYMENTANDECONONUC DEVELOPMENT CORPORATlON,INC., a Florida not-for-profit corporation ATTEST: Secretary Arthor L. Jackson, Executive Director ATTEST: CITY OF MIAMI BEACH a Florida Municipal corporation City Clerk Mayor f:bs:DEEDCOIHOMEAGR. APPROVED AS TO FORM & lANGUAGE & FOR EXECUTION ~ G-~..qJ Dr.tfu EXHIBIT A SCOPE OF SERVICES SCOPE OF SERVICES l. The City shall provide a Grant of HOME Program funds to DEEDCO for the acquisition and rehabilitation of the project, located at 7734 Abbott Avenue, Miami Beach, Florida, 3314 L more particularly described as: Lot 11 of Block 15, of Altos Del Mar Subdivision, as recorded in Plat Book 8 at Page 14, of the Public Records of Miami-Dade County, Florida. 2. 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) If the Building is more than 50 years old, (I) DEEDCO's Architect or Engineer must obtain and submit to the City a letter indicating that the plans for the project have been reviewed by the State Historic Preservation Officer (SHPO) and that the proposed rehabilitation is acceptable to that office, and (2) must submit a copy of the 50 year re-certification for the building. (c) A set of final approved plans and specifications for the project approved by the City's Building Department must be submitted to the Housing Section of the City's Community/Economic Development Division. (d) 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. (e) A copy of the contract between DEEDCO 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. (t) 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: I) Liability insurance against claims arising out of accident or occurrence on the property, in a minimum al!)ount of$I,OOO,OOO. 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. (g) 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 Division and the Building Services Division will jointly issue a "Notice to Proceed" on the project. If DEEDCO 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 ofthe Community/Economic Development Division and the Building Services Division, emergency repairs can be undertaken on the Project. 3. DEEDCO's General Contractor shall be responsible for compliance with all pollution and asbestos control standards ofthe concerned governmental agencies. It shall be the Contractor's responsibility to obtain required inspections from these agencies. 4. Federal regulations require that all tenants in housing rehahilitated with federal funds, be provided with information on the following: that the property may contain lead-based paint; ofthe hazards, symptoms and treatment for ingestion oflead-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 DEEDCO by the City. This information must be provided by DEEDCO to each tenant, and DEEDCO must retain evidence of having provided this notification to the tenant in a file for the life of this Agreement. 5. 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. 6. Consistent with the other goals and objectives of the HOME Program, all reasonable steps shall be taken to minimize displacement as a result of the Project. If the property is occupied at the time the application is submitted, DEEDCO must submit a tenant roll. Additionally, DEEDCO must submit for each unit: tenant names, lease terms, duration of occupancy, rent currently paid, with an indication as to whether utilities are included, family size, family income, and any other information determined necessary by the City to assess the need for temporary relocation or permanent displacement. "Eligible" expenses will be determined in accordance with the provisions of Handbook 1378: Tenant Assistance Relocation and Real PropertY Acquisition, issued by HUD, as amended. a. DEEDCO must pay these expenses directly, or reimburse the tenants for their payments, and document all such expenditures carefully. Note: In the event it is found necessary to permanently relocate any tenant, the full cost of such permanent displacement shall be borne by DEEDCO. b. DEEDCO agrees to send. or to permit the City or its agent to send, federally required notices to tenants in a timely manner. These notices include, but are not limited to: General Information Notice, Notice of Non-displacement and a Notice of Eligibility. DEEDCO shall make every effort to assure that temporary accommodations provided for tenants is decent, safe and sanitary, and that other living conditions are generally acceptable. DEEDCO will ensure that there is no increase in out-of-pocket housing expenses to the tenant. Those tenants who were in residence prior to rehabilitation, and who received a "Notice of Non- Displacement", who elect to return to the property upon completion of the rehabilitation work are referred to herein as "Returning Tenants". DEEDCO must agree to offer a unit to the Returning Tenants on the following terms, independent of the rent restrictions detailed herein. 1) Returning Tenants must be offered the same apartment previously occupied, or a unit comparable in terms of size and amenities to the unit occupied prior to the rehabilitation. 2) Returning tenants must be offered a standard lease for at least a 12 month period at the greater of (a) the same rent being charged before the rehabilitation, or (b) 30 percent of the returning tenants average monthly gross household income, or (c) the allowable rent pursuant to governmental regulations. 3) Upon expiration of the initial lease, and annually thereafter, for a period of 42 months following the completion of the rehabilitation work, rent charged the Returning Tenant may be increased in an amount deemed reasonable by the City, and only if the amount of such proposed increase can be justified, based on documented increases in the operating costs of the property. 4) Upon expiration of the 42 month period, the rent charged to the Returning Tenant may be adjusted to the applicable HOME Program Rent. 7. DEEDCO 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. DEEDCO 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 DEEDCO 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 ofthe 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 DEEDCO; 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. 8. DEEDCO shall rehabilitate the project keeping the same configuration and internal layout to provide eight (8) one-bedroom apartments and two (2) efficiency apartments. The one-bedroom apartments will contain 9. It is understood and agreed by DEEDCO, that for at least ten (10) years beginning on the date of issuance of a final Certificate of Completion, that rent and occupancy restrictions shall apply for the twelve (12) HOME- assisted units. The units shall carry rents in accordance with 24 CFR part 92.252. The HOME Program income set-aside requirements apply at the time HOME assistance is initially provided and over the 10-year period of affordability. Of the 12 HOME units, 8 units must initially be occupied by tenants who have annual incomes that are 60% or less of the area median income; 3 units must be occupied by very-low income tenants (persons with incomes that are 50% or less of median income) throughout the 10 year period of afford ability. These very-low income tenants must occupy the units with the Lowest HOME rents. No unit may be rented to a tenant whose income exceeds 80% of the median-income adjusted for family sIze. After the project is initially occupied, DEEDCO is required to maintain occupancy of units in accordance with the HOME Program requirements, 24 CFR part 92.252. Restrictions on occupancy and HOME rents must be :r,~:nta:ned !~rcl.~;!-:c:.:t ~~~8 1 O-year per!cc ~~ ~~~=:,j;::::! i~j ;;:);:-,.;~.2::"':;;-'i;; ., :~:1 the issuanc2 of the Certifi~:lt(: .~~~ Completion. Rent and occupancy restrictions shall be enforced through a deed restriction. DEEDCO will negotiate a lease with each tenant in accordance with 24 CFR part 92.253 and will re-examine tenants incomes annually to ensure that tenants continue to meet the requirements of the HOME Program. PROJECT IMPLEMENTATION SCHEDULE Action Steps Estimated Timeline I. Acquire Building & Architectural drawings prepared! permitting 2. Obtain Bids 3. Construction Total Time 1 month 1 month 4 months 6 months EXHIBIT B BUDGET Sources of Funding: HOME Grant Florida Dept. Of Community Affairs TOTAL SOURCES $ 339,971.00 $ 250,000.00 $ 589,971.00 Uses of Funds: Purchase Price ConstructionlRehabilitation Costs $ 360,000.00 $ 11,571.00 $ 6,000.00 $ 157,200.00 $ 20,700.00 $ 34,500.00 Acquisition Soft Costs Relocation Costs Misc. Development Costs Developer's Fee $ 589,971.00 Rehabilitation: Construction Cost Breakdown Note: Costs may be moved among the categories based on final work write-up ITEM ESTIMATED COST TOTAL CONSTRUCTION $ 7,000.00 75,000.00 8,000.00 9,000.00 9,000.00 16,000.00 12,400.00 20,800.00 $ 157,200.00 Demolition/Trash Removal Construction (12 Rental Units) Construction of Common Area Building Contractor's Profit Building Contractor's Overhead Construction Management Contingencies (10%) Appliances & Fixtures