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2001-24258 RESO RESOLUTION NUMBER 200r-24258 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED OWNER OCCUPIED HOUSING REHABILITATION PROGRAM GUIDELINES; APPROVING AN AMENDMENT TO THE CITY'S ONE YEAR ACTION PLANS FOR FEDERAL FUNDS FOR FISCAL YEARS 1997/98, 1998/99, 1999/2000, AND 2000/01, REALLOCATING $300,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS THAT WERE PREVIOUSLY ALLOCATED TO THE CITY'S MULTI-FAMILY HOUSING REHABILITATION PROGRAM TO FUND AN OWNER OCCUPIED HOUSING REHABILITATION PROGRAM; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED CDBG AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDq, REALLOCATING CDBG FUNDS, IN THE AMOUNT OF $300,000, FOR AN OWNER OCCUPIED HOUSING REHABILITATION PROGRAM TO ASSIST A MINIMUM OF 17 INCOME-ELIGIBLE HOMEOWNERS TO REHABILIT ATE THEIR HOMES. WHEREAS, the City wishes to establish an Owner Occupied Housing Rehabilitation Program; and WHEREAS, the City wishes to amend the City's One Year Action Plans for Federal Funds for Fiscal Years 1997/98, 1998/99, 1999/2000, and 2000/01, reallocating $300,000 of Community Development Block Grant (CDBG) funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program; and WHEREAS, the City wishes to execute the attached CDBG Agreement with the Miami Beach Community Development Corporation (MBCDC), reallocating CDBG funds, in the amount of $300,000, for an Owner Occupied Housing Rehabilitation Program to assist a minimum of 17 income-eligible homeowners to rehabilitate their homes; and WHEREAS, the City's Loan Review Committee, at its February 2, 2001 meeting, reviewed and recommended that the Mayor and City Commission approve and adopt the attached Owner Occupied Housing Rehabilitation Program Guidelines; approve an amendment to the City's One Year Action Plans for Federal Funds for Fiscal Years 1997/98, 1998/99, 1999/2000, and 2000/01, reallocating $300,000 of Community Development Block Grant (CDBG) funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program; and further, recommended that the Mayor and City Clerk execute the attached CDBG Agreement with the Miami Beach Community Development Corporation (MBCDC), reallocating CDBG funds, in the amount of $300,000, for an Owner Occupied Housing Rehabilitation Program to assist a minimum of 17 income-eligible homeowners to rehabilitate their homes; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and adopt the attached Owner Occupied Housing Rehabilitation Program Guidelines; approve an amendment to the City's One Year Action Plans for Federal Funds for Fiscal Years 1997/98, 1998/99, 1999/2000, and 2000/01, reallocating $300,000 of Community Development Block Grant (CDBG) funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program; and further authorize the Mayor and City Clerk to execute the attached CDBG Agreement with the Miami Beach Community Development Corporation (MBCDC), reallocation CDBG funds, in the amount of $300,000, for an Owner Occupied Housing Rehabilitation Program to assist a minimum of 17 income-eligible homeowners to rehabilitate their homes. Passed and adopted this 21st day of February ,2001. CITY CLERK ATTEST: ~~p~ F:\DDHP\SALL\STEVE\Owner Occupied Rehab\MBCDC 300,000 for Owner Occupied Rehab - Reso.doc APPROVED AS TO FOAM a LANGUAGE a FOR EXECUTION 1Af~ '~-'NI ~D8l8 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139 http:\\ci.miami-beach.f1.u5 TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. $)-0 I Mayor Neisen O. Kasdin and Members of the City Commission DATE: February 21, 2001 Jorge M. Gonzalez ~~~ City Manager ~ 0 A RESOLUTIO F THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE ATTACHED OWNER OCCUPIED HOUSING REHABILITATION PROGRAM GUIDELINES; APPROVING AN AMENDMENT TO THE CITY'S ONE YEAR ACTION PLANS FOR FEDERAL FUNDS FOR FISCAL YEARS 1997/98, 1998/99, 1999/2000, AND 2000/01, REALLOCATING $300,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS THAT WERE PREVIOUSLY ALLOCATED TO THE CITY'S MULTI-FAMILY HOUSING REHABILITATION PROGRAM, TO FUND AN OWNER OCCUPIED HOUSING REHABILITATION PROGRAM; AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED CDBG AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), REALLOCATING CDBG FUNDS IN THE AMOUNT OF $300,000 FOR AN OWNER OCCUPIED HOUSING REHABILITATION PROGRAM TO ASSIST A MINIMUM OF 17 INCOME-ELIGIBLE HOMEOWNERS TO REHABILITATE THEIR HOMES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS On July 26, 2000, the City Commission directed the Administration to explore the possibility of establishing an Owner Occupied Housing Rehabilitation Program (Program) in order to expand the services provided by the Scattered-Site Home Buyers Program and assist participants who currently own their homes. The pertinent research has been conducted, a set of Program Guidelines has been prepared and $300,000 in federal CDBG funds have been identified as the initial funding source for the Program. The Program has been designed to complement the services currently provided by the Miami Beach Community Development Corporation (MBCDC) through the Scattered-Site Home Buyers Program. F:\DDHP\$ALL\MIGUELL\Owner Occupied Rehabilitation 2001 - Memo.doc AGENDA ITEM e7f) DATE p.-O},)-O I February 21, 2001 Commission Memorandum Owner Occupied Housing Rehabilitation Program Page 2 Once the Guidelines are adopted by the City, MBCDC will operate the Program in conjunction with their existing housing services. In order to establish the Program and to provide funding, the City is conducting an amendment to the One Year Action Plans for Fiscal Years 1997/1998, 1998/99, 1999/2000 and 2000/01. The amendment reallocates $300,000 of Community Development Block Grant (CDBG) Program funds from fiscal years 1997/98, 1998/99, and 199912000, previously allocated to the City's Multi-Family Housing Rehabilitation Program, to the Miami Beach Community Development Corporation (MBCDC) for an Owner Occupied Housing Rehabilitation Program to assist a minimum of 17 income-eligible homeowners to rehabilitate their homes. MBCDC will receive a developer fee of 12 percent of the rehabilitation cost of each unit. The MBCDC Owner Occupied Rousing Rehabilitation Program will assist homeowners with a gross income up to 80 percent of area median income (currently $25,000 for a family of one) to bring their property up to decent, safe and sanitary housing standards, and correct all existing code violations. The maximum financial assistance may not exceed $15,000 per home. Homes receiving financial assistance must be able to meet or exceed the decent, safe and sanitary housing standard after rehabilitation, in accordance with the South Florida Building Code, the Miami-Dade County Building code, and the Miami Beach Code. A five (5) year lien will be placed on the property to recapture funds provided by the City in the event of a default or sale. Every year on the anniversary of the completion of repairs, the amount of the lien will be reduced twenty (20) percent. After five (5) years, if the property has been maintained in accordance with the Program Guidelines,the full amount of the lien will be released and discharged by the City of Miami Beach. Homeowners who participate in the Program will be required to be the owner and occupant of their home. Participants will be required to have resided at their property for 180 consecutive days prior to applying for said funds and shall not have received assistance for housing rehabilitation from the City during the previous five (5) years. The appraised value of the property may not exceed $138,985 in accordance with the maximum purchase price for a unit as set forth by the U.S. Department of Housing and Urban Development (RUD). Miami Beach Community Development Corporation (MBCDC) has utilized a rehabilitation component as a part of its successful Scattered-Site Home Buyers Assistance Program. The funds being reallocated to MBCDC will be used to expand their rehabilitation component to homeowners. MBCDC is the City's Community Housing Development Organization (CHDO) and operates the most successful homebuyers program in Miami-Dade County. To date, MBCDC has assisted 203 families to acquire homes since 1996. On January 16, 2001 City Staff and MBCDC met with the North Beach Development Corporation (NBDC) and provided an overview of this proposed Program. NBDC expressed their support for this Program and the City's housing rehabilitation programs. F:\DDHP\$ALL\MIGUELL\Owncr Occupied Rehabilitation 2001 - Memo.doc February 21, 2001 Commission Memorandum Owner Occupied Housing Rehabilitation Program Page 3 On February 2, 2001, the Loan Review Committee reviewed this proposed Program and recommended that the Mayor and City Commission approve and adopt the Owner Occupied Housing Rehabilitation Guidelines, approve an amendment to the One Year Action Plans for Federal Funds for Fiscal Years 1997/98, 1998/99, 1999/2000, and 2000/01, reallocating $300,000 ofCDBG funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program, and to provide $300,000 of CDBG funds for MBCDC for an Owner Occupied Housing Rehabilitation Program. In accordance with HUD regulations and the adopted Citizen Participation Plan, on Thursday, September 7, 2000, the City advertised a 30-day citizen comment period on the proposed amendment. No comments were received. The Administration recommends that the Mayor and City Commission adopt a resolution, approving and adopting the attached Owner Occupied Housing Rehabilitation Program Guidelines; approving an amendment to the City's One Year Action Plans For Federal Funds for Fiscal Years 1997/98, 1998/99, 199912000, and 2000/01, reallocating $300,000 of Community Development Block Grant (CDBG) funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program; and further, authorizing the Mayor and City Clerk to execute the attached CDBG Agreement with the Miami Beach Community Development Corporation (MBCDC), reallocating CDBG funds in the amount of $300,000 for an Owner Occupied Housing Rehabilitation Program to assist a minimum of 17 income-eligible homeowners to rehabilitate their homes. JMG/CLDC/SKC ~ F:\DDHP\SALL\MIGUELL\Owner Qt:cupied Rehabilitadon 2001 . Memo.doc COM~TYDEVELOPMffiNTBLOCKGRANTAGREEMffiNT BETWEEN THE CITY OF MIAMI BEACH AND MIAMI BEACH COM~TY DEVELOPMENT CORPORATION This Agreement made and entered into this <2L day of ht.."fllt4f .~I and between the CITY OF MIAMI BEACH, a municipal corporation, hereinafter referred to as "the City", and MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, hereinafter referred to as "Provider"; WHEREAS, the City has received an entitlement grant from the U.S. Department of Housing and Urban Development as part of its Community Development Block Grant Program for the period October 1,2000 to September 30, 2001 (hereinafter "the contract period"); and WHEREAS, the primary objective of the Community Development Block Grant Program is the development of viable urban communities, including decent housing and a suitable living environment and expanding economic opportunities principally for persons of low and moderate income; and WHEREAS, the One-Year Action Plan was adopted by City of Miami Beach Resolution No. 2000-23997 on July 12,2000; and WHEREAS, on February 21, 2001, the City amended its One Year Action Plans for Federal Funds for fiscal years 1997/98, 1998/99, 1999/2000, and 2000/01, reallocating $300,000 of Community Development Block Grant (CDBG) funds that were previously allocated to the City's Multi-Family Housing Rehabilitation Program, to fund an Owner Occupied Housing Rehabilitation Program; and NOW, THEREFORE, in consideration of the mutual benefits contained herein, the City and Provider agree as follows: Section 1. Agreement Documents: Agreement documents shall consist of this Agreement and four (4) attachments, all of which are incorporated by reference into this Agreement. Attachment I contains a description of the service and goals offered by the Provider. Attachment II is a line item budget. Attachment IIJ outlines financial management procedures and reporting forms for use with Community Development Block Grant funds. Attachment IV contains applicable federal regulations. Section 2. Statement of Work: The Provider agrees to implement the Activity in accordance with the Budget, as described in Attachment I and II. OWNER OCCUPIED HOUSING REHABILITATION PROGRAM (570.208(a)(3)1570.20 I( a)) To rehabilitate owner occupied housing of income-eligible homeowners. MBCDC will rehabilitate a minimum of 17 housing units owned by qualified income-eligible individuals or families. Section 3. Agreement Amount: The City agrees to make available Three -Hundred Thousand and 00/100 dollars ($300,000) for use by the Provider for the contract period. Section 4. Alterations: Any proposed alterations in the work program or the budget shall first be submitted to and approved in writing by the City, said approval at the City's sole discretion. Page 1 of 36 Section 5. Method of Payment and Reporting Requirements: The Provider agrees to submit monthly program progress reports on the lOth day of each month to the City during the contract period herein. The Provider also agrees to submit on September 30, 200 I, a comprehensive final report covering the agreed-upon objectives, activities, and expenditures for the entire contract period. Such shall include performance data on client feedback, with respect to the goals and objectives outlined in Attachment 1. Attachment 1Il contains reporting forms to be used in fulfillment of this requirement. Other Reporting Requirements may be required by the City in the event of Program changes, the need for additional information or documentation arises, and/or legislative amendments are enacted. The Provider shall be informed, in writing, if any changes become necessary. Reports and/or requested documentation not received by the due date shall be considered delinquent and shall be considered by the City, at its sole discretion, as sufficient cause to suspend CDBG payments to the Provider. Section 6. Monitoring: The City shall schedule no less than one (I) monitoring visit with the Provider to evaluate the progress and performance of the program and provide technical assistance. Section 7. Additional Conditions and Compensation - It is expressly understood and agreed by the parties hereto that monies to be used for compensation, as contemplated by this Agreement, originate from grants of Community Development Block Grant funds from the U.S. Department of Housing and Urban Development (RUD) and must be implemented in full compliance with all of RUD's rules and regulations. It is expressly understood and agreed that in the event of curtailment or non-production of said federal grant funds, the financial sources necessary to continue to pay the Provider compensation will not be available and that this Agreement will thereby terminate effective as of the time that it is determined by the City, in its sole discretion and judgement, that said funds are no longer available. In the event of such determination, the Provider 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 of the parties hereto shall be released from further liability each to the other under the terms of this Agreement. Section 8. Compliance with Local, State and Federal Regulations - The Provider agrees to comply with all applicable federal regulations as they may apply to program administration and to carry out each activity in compliance with the laws and regulations as described in 24 CFR 570 Subpart K. Additionally, the Provider will comply with all state and local laws and ordinances hereto applicable. Section 9. Restrictions for Certain Resident Aliens - Certain newly legalized aliens, as described in 24 CFR Part 49, are not eligible to apply for benefits under covered activities funded by the Community Development Block Grant Program. "Benefits" under this section means financial assistance, public services, jobs and access to new or rehabilitated housing and other facilities made available under activities funded by the CDBG Program. "Benefits" do not include relocation services and payments to which displacees are entitled by law. Section 10. Subcontract: No part ofthis Agreement may be assigned or subcontracted without the prior written consent of the City, such consent to be at the City's sole discretion. Page 2 of 36 Section 11. Term: This Agreement shall remain in effect through the contract period with the understanding that at the end of the fiscal year the City of Miami Beach City Commission has the authority to reappropriate any remaining funds. Section 12. Termination of Agreement: The City and the Provider agree that this Agreement may be terminated in whole or in part for convenience and without cause, by either party hereto by written notice to the other party of such intent to terminate at least thirty (30) days prior to the effective date of such termination. However, if, in the case of a partial termination, the City, in its sole discretion, determines that the remaining portion of the Agreement will not accomplish the purposes of such Agreement, the City may terminate same in its entirety, in the manner provided in this section. Notwithstanding the preceding paragraph, the City may also place the Provider in default of this Agreement, and may suspend or terminate this Agreement in whole, or in part, for cause. "Cause" shall include, but not be limited to, the following: a. Failure to comply andlor perform in a material way, as same shall be determined by the City in its sole discretion, in accordance with the terms of this Agreement, or any Federal, State, County or City of Miami Beach statute or regulation. b. Submitting reports to the City, which are late, incorrect or incomplete in any material respect. c. Implementation of this Agreement, for any reason, is rendered impossible or infeasible. d. Failure to respond in writing to any concerns raised by the City, including substantiating documents when required/requested by the City. e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's monitoring of the sub-recipient, and applicable HUD rules and regulations. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include: (i) actions taken by or to be taken by the City, such as withholding of payments; (ii) actions to be taken by the Provider as a condition precedent to clearing the deficiency; and (iii) a reasonable date for compliance, which shall be no more than fifteen (15) days from notification date. In the event that Provider fails to correct such deficiency within the forestated period, and following such notice from the City, this Agreement shall be terminated by the City, without further notice to Provider. In the event of curtailment of, or regulatory constraints placed on, the funds by HUD, this Agreement will terminate effective as of the time that it is determined such funds are no longer available. Costs of the Provider resulting from obligations incurred during a suspension or after termination, are not allowable unless the City expressly authorizes them in the notice of suspension or termination, or subsequent thereto. Other costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if, in the sole discretion of the City: a. The costs resulting from obligations which were properly incurred before the effective date of suspension or termination, are not in anticipation of it, and, in the case of termination, are noncancelable; and b. The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect. Page 3 of 36 In the event of termination of the Agreement, at its sole discretion, the City may require Provider to transfer any CDBO assets to the City pursuant to Section 14 herein. Section 13. Equal Employment Opportunities: The Provider shall comply with equal employment opportunities as stated in Executive Order 11246, entitled "Equal Employment Opportunity" as amended Executive Order 11375, and as supplemented in Department of Labor regulations. Section 14. Program Income: Any "Program Income" (as such term is defined under applicable federal regulations) gained from any activity ofthe Provider, funded by CDBO funds shall be reported to the City and utilized by the Provider in the operation of the CDBO-funded activity during the contract period. Section 15. Religions Organization or Owned Property: CDBO funds may be used by religious organizations or on property owned by religious organizations only with prior written approval from the City and only in accordance with requirements set in 24 CFR ~570.200(j). The Provider shall comply with First Amendment Church/State principles, as follows: a. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. b. It will not discriminate against any person applying for public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. c. It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services. d. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations. e. The funds received under this Agreement shall not be used to construct, rehabilitate, or restore any facility which is owned by the Provider and in which the public services are to be provided. However, minor repairs may be made if such repairs are directly related to the public services; are located in a structure used exclusively for non-religious purposes; and constitute, in dollar terms, only a minor portion of the CDBO expenditure for the public services. Section 16. Reversion of Assets: In the event of a termination of this Agreement pursuant to Section 12 herein, or upon expiration of the Agreement, the Provider shall transfer to the City any CDBO funds on hand at the time of termination or expiration and any account receivable attributable to the use of CDBG funds. Any real property under the Provider's control that was acquired or improved in whole or in part with CDBO funds (including CDBO funds provided to the Provider in the fonn of a loan) in excess of $25,000 must either: a. Be used to meet one of the national objectives in 24 CFR 570.208 (formerly section 570.901) until five years after expiration of the Agreement, or for such longer period of time as determined to be appropriate by the City; or Page 4 of 36 b. If not used in accordance with the above paragraph a, the Provider shaH pay to the City an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. No payment is required after the period of time specified in this section. Section 17. Conformity to HUD regulations: The Provider agrees to abide by guidelines set forth by the U.S. Department of Housing and Urban Development for the administration and implementation of the Community Development Block Grant Program, including applicable Uniform Administrative Requirements set forth in 24 CFR 570.502, and applicable federal laws and regulations in 24 CFR 570.600, et seq. In this regard, the Provider agrees that duly authorized representatives of the U.S. Department of Housing and Urban Development shaH have access to any books, documents, papers and records of the Provider that are directly pertinent to this Agreement for the purpose of making audits, examinations, excerpts and transcriptions. The Provider shaH comply with the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non-profit Organizations", or OMB Circular No. A-21, "Cost Principles for Educational Institutions" as applicable. The Provider shaH comply with the foHowing provisions of the Uniform Administrative requirements of OMB Circular A-II 0 (implemented at 24 CFR Part 84, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations") or the related CDBG provision, as specified in this paragraph: a Subpart A - "General"; b Subpart B - "Pre-Award Requirements", except for 1184.12, "Forms for Applying for Federal Assistance"; c Subpart C - "Post-Award Requirements", except for: (1) Section 84.22, "Payment Requirements" - Grantees shaH foHow the standards of llll 85 .20(b )(7) and 85.21 in making payments to sub-recipients; (2) Section 84.23, "Cost Sharing and Matching"; (3) Section 84.24, "Program Income" - In lieu of II 84.24, CDBG sub-recipients shaH follow !l570.504; (4) Section 84.25, "Revision of Budget and Program Plans"; (5) Section 84.32, "Real Property" -In lieu of 1184.32, CDBG sub-recipients shaH follow II 570.505; (6) Section 84.34(g), "Equipment" - In lieu of the disposition provisions of II 84.34(g), the foHowing applies: a. In all cases in which equipment is sold, the proceeds shall be program income (pro-rated to reflect the extent to which CDBG funds were used to acquire the equipment); and Page 5 of 36 b. Equipment not needed by the sub-recipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient; (7) Section 84.51(b), (c), (d), (e), (f), (g), and (h), "Monitoring and Reporting Program Performance"; (8) Section 84.52, "Financial Reporting"; (9) Section 84.53(b), "Retention and access requirements for records". Section 84.53(b) applies with the following exceptions: a. The retention period referenced in \l 84.53(b) pertaining to individual CDBG activities shall be four years; and b. The retention period starts from the date of submission of the annual performance and evaluation report, as prescribed in 24 CFR 91.520, in which the specific activity is reported on for the final time rather than from the date of submission of the final expenditure report for the award; (10) Section 84.61, "Termination" - In lieu ofthe provisions of\l84.61, CDBG subrecipients shall comply with \l 570.503(b )(7); and d Subpart D - "After-the-Award Requirements" - except for \l 84.71, "Closeout Procedures" . Section 18. Sponsorships: The Provider agrees that when sponsoring a Program financed in whole or in part under this Agreement, all notices, informational pamphlets, press releases, advertisements, descriptions of the sponsorship of the Program, research reports, and similar public notices prepared and released by the Provider shall include the statement: "FUNDED BY THE CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM" In written materials, the words "CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ADMINISTERED BY THE COMMUNITYIECONOMIC DEVELOPMENT DEPARTMENT" shall appear in the same size letters or type as the name of the Provider. Section 19. Examination of Records: The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.506 to determine compliance with the requirements of this Agreement, the Community Development Block Grant Program, and all applicable laws and regulations. This documentation shall include, but not be limited to, the following: a. Books, records and documents in accordance with generally accepted accounting principles, procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided directly or indirectly by this Agreement, including matching funds and program income. These records shall Page 6 of 36 be maintained to the extent of such detail as will properly reflect alI net costs, direct and indirect labor, materials, equipment, supplies and services, and other costs and expenses of whatever nature for which reimbursement is claimed under the provisions of this Agreement. b. Time sheets for split-funded employees, which work on more than one activity, in order to record the CDBG activity delivery cost by Program and the non-CDBG related charges. c. How the Statutory National Objective(s) as defined in 24 CFR 570.208 and the eligibility requirement(s) under which funding has been received, have been met. These also include special requirements such as necessary and appropriate determinations as defined in 24 CFR 570.209, income certifications, and written Agreements with beneficiaries, where applicable. The Provider is responsible for maintaining and storing alI records pertinent to this Agreement in an orderly fashion in a readily accessible, permanent and secured location for a period of four (4) years after expiration of this Agreement, with the folIowing exception: if any litigation, claim or audit is started before the expiration date of the four year period, the records will be maintained until alI litigation, claims or audit findings involving these records are resolved. The City shall be informed in writing after closeout of this Agreement, ofthe address where the records are to be kept. Section 20. Audits and Iuspections: At any time during normal business hours, and as often as City and/or Federal Government representatives may deem necessary, the Provider shall make available all records, documentation, and any other data relating to alI matters covered by the Agreement for review, inspection or audit. Audits shall be conducted annually and shall be submitted to the City 180 days after the end of the Provider's fiscal year. The Provider shall comply with the requirements and standards of 0 MB A-I 33, "Audits ofInstitutions of High Education and Other N on-Profit Institutions" (as set forth in 24 CFR Part 45), or OMB Circular A-128, "Audits of State and Local Governments" (as set forth in 24 CFR Part 44), as applicable. Ifthis Agreement is closed-out prior to the receipt of an audit report, the City reserves the right to recover any disallowed costs identified in an audit after such closeout. Section 21. Indemnification/Insurance Requirements: The Provider shall indemnify and hold harmless the City from any and alI claims, liability, losses and causes of action which may arise out of an act, omission, negligence or misconduct on the part of the Provider or any of its agents, servants, employees, contractors, patrons, guests, clients, licensees or invitees. The Provider 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 alI costs and judgements which may issue thereon. The Provider shall not commence any work pursuant to this Agreement until all insurance required under this Section has been obtained and the City's Risk Manager has approved such insurance. 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 nulI 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 City Administration. Page 7 of 36 The Provider shall maintain and carry in fulI force during the term of this Agreement and throughout the duration ofthis project the following insurance, a. Provider General Liability Policy with coverage for Bodily Injury and Property Damage, in the amount of $1,000,000 single limit. The policy must include coverage for contractual liability to cover the above indemnification. b. The City of Miami Beach shall be named as an additional insured under all such insurance contracts and City of Miami Beach Resolution No. 2000-23997 shalI be referenced in the certificate. c. Worker's Compensation and Employers Liability, as required pursuant to Florida Statute. d. Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement. Limits for such coverage shall be in the amount of$500,000. e. Thirty- (30) day written notice of cancellation or substantial modification of the insurance coverage must be given to the City's Risk Manager by the Provider and his/her insurance company. f. The insurance must be furnished by insurance companies authorized to do business in the State of Florida, and approved by the City's Risk Manager. The companies must be rated no less than "B+" as to management, and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. g. Original Certificates of Insurance for the above coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the Office of the Risk Manager, Third Floor City HalI. AII insurance required by this section of the Agreement shalI be and remain in full force and effect for the entire contract period and each certificate or policy shall carry the provision that the insurance shall not terminate, lapse or otherwise expire, prior to thirty (30) days written notice to that effect, given by the insurance carrier to the City, and that the insurance carrier will not invoke the defense of performance of a governmental function by the Provider in performing this contract. Compliance with the foregoing requirements shalI not relieve the Provider of the liabilities and obligations under this Section or under any other portion of this Agreement. The City shall have the right to obtain from the Provider specimen copies of the insurance policies, in the event that submitted Certificates of Insurance are inadequate to ascertain compliance with required coverage. All of Provider's certificates, above, shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage of the policy. Page 8 of 36 Section 22. Conflict ofInterest: The Provider covenants that no person under its employ who presently exercises any functions or responsibilities in connection with Community Development funded activities has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict ofInterest", and the Federal, State, County and City of Miami Beach statutes, regulations, ordinances or resolutions governing conflicts of interest. The Provider shalI disclose, in writing, to the City any possible conflicting interest or apparent impropriety that is covered by the above provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The City will then render an opinion, which shall be binding on both parties. Section 23. 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 of the terms or conditions herein, exclusive venue for the enforcement of the same shalI lie in Miami-Dade County, Florida. Section 24. Notices: All notices required under this Agreement shall be sent to the parties at the following address, with copies to the Office ofthe City Attorney: City: Joanna Revelo, Community Development Director Community/Economic Development Department City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Provider, Roberto Datorre, President Miami Beach Community Development Corporation 1205 Drexel Avenue Miami Beach, FL 33139 Section 25. Limitation of Liability: The City desires to enter into this Agreement only if in so doing the City can place a limit on 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 $10,000. Provider hereby expresses its willingness to enter into this Agreement with Provider's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $10,000, less the amount of all funds actually paid by the City to Provider pursuant to this Agreement. Accordingly, Provider hereby agrees that the City shall not be liable to Provider for damages in an amount in excess of $10,000, which amount shall be reduced by the amount of the funding actually paid by the City to Provider pursuant to this Agreement, for any action or claim for breach of contract arising out of the performance or nonperformance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Florida Statutes, Section 768.28. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. Page 9 of 36 In witness thereof, the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement in three (3) copies, each of which shall be deemed an original on the date first above written. CITY OF MIAMI BEACH MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION 1111 Mayor Pre' 1&Jd PtLl~ City Clerk ,Ql Secretary v APPROVED AS TO FORM I. LANGUAGE I.FOREXECUTIOH A jJ'b/[)itll - 2 -OJ-d 1. ~~u. Page 10 of 36 CDBG AGREEMENT October 1, 2000 to September 30, 2001 ATTACHMENT I STATEMENT OF WORK AND GOALS DESCRIPTION OF PROGRAM The Miami Beach Community Development Corporation (MBCDC) will assist a minimum of 17 income-eligible homeowners to rehabilitate their homes. The MBCDC Owner Occupied Housing Rehabilitation Program will assist homeowners with a gross income up to 80 percent of area median income (currently $25,000 for a family of one) to bring their property up to decent, safe and sanitary housing standards, and correct all existing code violations. The maximum financial assistance may not exceed $15,000 per home. Homes receiving financial assistance must be able to meet or exceed the decent, safe and sanitary housing standard after rehabilitation, in accordance with the South Florida Building Code, the Miami-Dade County Building code, and the City. Homeowners who take part in the Program will be required to be the owner and occupant oftheir home. Participants will need to have resided on their property for 180 consecutive days and have not received assistance for housing rehabilitation from the City during the previous five (5) years. The appraised value of the property may not exceed $138,985 in accordance with the maximum purchase price for a unit as set by the U.S. Department of Housing and Urban Development (HUD). PROGRAM GOALS AND MEASURABLE OUTCOMES I. To rehabilitate the residence of a minimum of 17 income-eligible homeowners. SCHEDULE FOR IMPLEMENTATION Goal 10/2000 1112000 12/2000 112001 2/2001 3/2001 4/2001 5/2001 6/2001 7/2001 8/2001 9/2001 I 2 3 4 5 6 Page 11 of 36 CDBG AGREEMENT October 1,2000 to September 30, 2001 ATTACHMENT 11 BUDGET SUMMARY SHEET Project Name: Owner Occupied Housin!! Rehabilitation Pro!!ram Funding Year: 200012001 Provider Name: Miami Beach Community Development Corporation Date Submitted: Category Category Breakdown Number 1 Salaries 2 Fringe Benefits 3 Contract Costs 4 Space Rental 5 Occupancy Costs 6 Office Expense 7 Other Costs 8 9 10 11 Total CDBG/ESG Funds Total Other Funds Grand Total CDBG/ESG Funds Other Funds Other Funding Sources Total Funds $300,000 $300,000 Page 12 of 36 CDBG AGREEMENT BUDGET lTEMIZA nON SHEET Project Name: Owner Occupied Housinl! Rehabilitation Prol!ram Funding Year: 200012001 Date Submitted: Provider Name: Miami Beach Community Development Corporation Category Amount Category Category Breakdown CDBG/ESG Other Funds Total Funds Number Funds 1 Salaries 1 Executive Director 1 Housing Coordinator 1 Housing Project Director 1 Housing Project Coordinator 1 Housing Specialist 1 Housing Property Manager 1 Housing Secretary 1 Housing Property Maintenance Worker 1 MIS 1 CFO/Financial Management Director 1 Accountant 2 1 Accountant 3 1 Office Manager 1 Secretary/Receptionist 1 Secretary/Clerical 1 Janitorial 1 Salary Increases Total Amount Page 13 of 36 CDBG AGREEMENT BUDGET ITEMIZA nON SHEET Project Name: Owner Occupied Housinl! Rehabilitation Prol!ram Fnnding Year: 200012001 Provider Name: Miami Beach Communitv Development Corporation Date Snbmitted: Category Amount Category Category Breakdown CDBG/ESG Other Funds Total Funds Number Funds 2 Fringe Benefits 2 Federal Payroll Tax 2 Unemployment Tax 2 Workmen's Compensation 2 Health Insurance 2 Retirement Plan Contribution 2 Other Fringe Benefits Total Amount Page 14 of 36 CDBG AGREEMENT BUDGET lTEMIZATION SHEET Project Name: Owner Occupied Honsinl! Rehabilitation Prol!ram Provider Name: Miami Beach Community Development Corporation Funding Year: 2000/2001 Date Submitted: Category Amonnt Category Category Breakdown CDBG/ESG Other Funds Total Fnnds Number Funds 3 Contract Costs 3 Audit Total Amount Page 15 of 36 CDBG AGREEMENT BUDGET ITEMIZATION SHEET Project Name: Owner Occupied Housinl! Rehabilitation Prol!ram Funding Year: 2000/2001 Provider Name: Miami Beach Communitv Development Corporation Date Submitted: Category Amount Category Category Breakdown CDBGIESG Other Funds Total Funds Number Funds 4 Space Rental 4 Office Space Rental Total Amount Page 16 of 36 CDBG AGREEMENT BUDGET ITEMIZATION SHEET Project Name: Owner Occupied Housinl! Rehabilitation Prol!ram Funding Year: 2000/2001 Provider Name: Miami Beach Communitv Development Corporation Date Submitted: Category Amount Category Category Breakdown CDBG/ESG Other Funds Total Funds Number Funds 5 Occupancy Costs 5 Utilities 5 Janitorial Supplies and Water 5 Office Machine Leases 5 Repairs and Maintenance Total Amount Page 17 of 36 CDBG AGREEMENT BUDGET ITEMlZATION SHEET Project Name: Owner Occuoied Housiol! Rehabilitation Prol!ram Provider Name: Miami Beach Communitv Development Corooration Funding Year: 200012001 Date Submitted: Category Amount Category Category Breakdown CDBG/ESG Other Funds Total Funds Number Funds 6 Office Expense 6 Office Supplies 6 Postage and Delivery 6 Communications, Miscellaneous Photography and Advertising 6 Telephone and Long Distance Service 6 Insurance Total Amount Page 18 of 36 CDBG AGREEMENT BUDGET ITEMIZATION SHEET Project Name: Owner Occupied Housinl! Rehabilitation Prol!ram Funding Year: 2000/2001 Provider Name: Miami Beach Communitv Development Corporation Date Submitted: Category Amount Category Category Breakdown CDBG/ESG Other Funds Total Funds Number Funds 7 Other Costs 7 Membership and Dues 7 Publications and Subscriptions Total Amount Page 19 of 36 CDBG AGREEMENT October 1, 2000 to September 30, 2001 ATTACHMENT III GUIDELINES FOR FINANCIAL MANAGEMENT OF CDBG-FUNDED ACTMTIES To comply with federal regulations, each program must have a financial management system that provides accurate, current and complete disclosure ofthe financial status of the activity. This means the financial system must be capable of generating regular financial status reports which indicate the dollar amount allocated for each activity (including any budget revisions), amount obligated (i.e., for which contract exists), and the amount expended for each activity. The system must permit the comparison of actual expenditures and revenues against budgeted amounts. The City must be able to isolate and to trace every CDBG dollar received and prove where it went and for what it was used. Accounting records must be supported by source documentation. Invoices, bills of lading, purchase vouchers, payrolls and the like must be secured and retained for four years in order to show for what purpose funds were spent. Payments should not be made without invoices and vouchers physically in hand. All vouchers/invoices should be on vendor's letterhead. All employees paid in whole or in part from CDBG funds should prepare a time sheet indicating the hours worked on CDBG projects for each pay period. Based on these time sheets and the hourly payroll costs for each employee, a voucher statement indicating the distribution of payroll charges should be prepared and placed in the appropriate files. The City is responsible for reviewing and certifying the financial management of any operating agency, which is not a City department or bureau, in order to determine whether or not it meets all of the above requirements. Ifthe agency's system does not meet these requirements and modifications are not possible, the City must administer the CDBG funds for the operating agency. Financial records are to be retained for a period of four years, with access guaranteed to the City, to HUD or Treasury officials or their representative. One copy of the vendors' audited financial statement shall be submitted to the City immediately following the end of the vendors' fiscal year(s) during which CDBG funds are received. Payments to sub-recipients will be on a reimbursement basis to be submitted to: Joanna Revelo, Director Community Development Division City of Miami Beach Community/Economic Development Department 1700 Convention Center Drive Miami Beach, Florida 33139 Requests are to be submitted utilizing the enclosed financial status, client profile, and narrative report forms, in a format consistent with the approved budget as shown in Attachment II, including an analysis of expenses to budget. A cash advance may be available upon special request. Page 20 of 36 lQ ICMB Budget Account MonthNear CITY. ~MI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FINANCIAL STATUS REPORT Provider: Miami Beach Communitv DeveloDment Corp. Project Name: Owner OccuDied Housin2 Rehab. Prol!ram Reporting Period: Person Submitting Report: Date Submitted: Title: Signature: CDBG Year 26 $ 300,000 FY 2000/2001 Budget Amount Month Description Monthly Expenses Year to Date Expenses October 2000 November 2000 December 2000 January 2001 February 2001 March 2001 April 2001 May 2001 June 2001 July 200 I August 200 I September 200 I Reimbursement Available Funds I A.ppI"'n<lll)' Page 21 of 36 CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM MONTHLY NARRATIVE AND PROJECT ACCOMPLISHMENTS REPORT Provider: Miami Beach Comm. Development Corp. Reporting Period: Person Submitting Report: Project Name: Owner Occupied Housin!! Rehab. Pro!!. Date Submitted: Signature: Please complete the following reports for activities undertaken during this month's reporting period. Ifreporting for more than one activity, provide a separate progress and client profile report for each distinct activity. I. Monthly Progress Report - Please document the progress achieved during this month towards the project goals and measurable outcomes that were outlined in the Schedule for Implementation of the Statement of Work and Goals (Attachment 1 of the Agreement.) Goal Month Met Not Met October November December January February March Goal Month Met Not Met April May June July August September In the space below, explain any problems, which may have affected your performance during the reporting period. Attach additional pages, if necessary, to describe any special recognition, awards and circumstances encountered during the reporting period. II. Project Accomplishments to Date - Fill in amounts as appropriate. Percentage (%) of Completion Number of Month Feet of Public Public Facilities Businesses! Housing Units LMl Jobs Utilities Organizations Completed Created and/or Assisted Retained October November December January February March April May June July August September Page 22 of 36 CDBG AGREEMENT October 1, 2000 to September 30, 2001 ATTACHMENT IV APPLICABLE FEDERAL REGULATIONS 1. NON-DISCRIMINATION AND EQUAL ACCESS No person in the United States shall on the grounds of race, color, national origin, religion or sex be excluded, denied benefits or subjected to discrimination under any program funded in whole or in part by CDBG funds. The Provider must take measures to ensure non-discriminatory treatment, outreach and access to program resources. This applies to employment and contracting, as well as to marketing and selection of program participants. Fair Housing and Equal Opportunity The Provider must comply with all the following Federal laws, executive orders and regulations pertaining to fair housing and equal opportunity. They are summarized below: . Title VI of the Civil Rililits Act of 1964. As Amended (42 USC 2000d et seQ.\' 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. The regulations implementing the Title VI Civil Rights Act provisions for HUD programs may be found in 24 CFR Part I. . The Fair Housing Act (42 USC 3601-3620): Prohibits discrimination in the sale or rental of housing, the financing of housing or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap of familial status. Fair Housing Act implementing regulations may be found in 24 CFR Part 100-115. . Equal Opportunity in Housing (Executive Order 11063. as amended bv Executive Order 12259), Prohibits discrimination against individuals on the basis of race, color, religion, sex or national origin in the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of housing assisted with Federal funds. Equal Opportunity in Housing regulations may be found in 24 CFR Part 107. . Age Discrimination Act of 1975. As Amended (42 USC 6101 ): Prohibits age discrimination in programs receiving Federal financial assistance. Age Discrimination Act regulations may be found in 24 CFR Part 146. . Section 109 of Title I of the Housing and Community Development Act of 1974: Requires that no person shall be excluded from participation in, denied the benefits of, or be subjected to discrimination under any program or activity funded with CDBG funds on the basis of race, color, religion, national origin or sex. Affirmative Marketing The Provider must adopt affirmative marketing procedures and requirements for all CDBG- assisted housing with five or more units. Requirements and procedures must include: Page 23 of 36 . Methods for informing the public, owners and potential tenants about fair housing laws and the Provider's policies (for example, use of the Fair Housing logo or equal opportunity language); . A description of what owners and/or the Provider will do to affIrmatively market housing assisted with CDBG funds; . A description of what owners and/or the Provider will do to inform persons not likely to apply for housing without special outreach; . Maintenance of records to document actions taken to affirmatively market CDBG-assisted units and to assess marketing effectiveness; and . Description of how efforts will be assessed and what corrective actions will be taken where requirements are not met. Handicapped Accessibility The CDBG regulations also require adherence to the three following regulations governing the accessibility of Federally assisted buildings, facilities and programs. . Americans with Disabilities Act(42 USC 12131; 47 USC 155.201. 218 and 225), Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, state and local government services and telecommunications. The Act, also referred to as the ADA, also states that discrimination includes the failure to design and construct facilities (built for first occupancy after January 26, 1993) that are accessible to and usable by persons with disabilities. The ADA also requires the removal of architectural and communication barriers that are structural in nature in existing facilities. Removal must be readily achievable, easily accomplishable and able to be carried out without much difficulty or expense. . Fair Housing Act, Multi-family dwellings must also meet the design and construction requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 USC 3601-19) . Section 504, Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in federally assisted programs on the basis of handicap. Section 504 imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive Federal funds. Under Section 504, recipients and subrecipients are not required to take actions that create unique financial and administrative burdens or after the fundamental nature ofthe program. For any Provider principally involved in housing or social services, all of the activities of the agency -- not only those directly receiving Federal assistance -- are covered under Section 504. Contractors or vendors are subject to Section 504 requirements only in the work they do on behalf of the Provider or the City. The ultimate beneficiary of the Federal assistance is not subject to Section 504 requirements. . The Architectural Barriers Act of 1968 (42 USC 4151-4157), Requires certain Federal and Federally-funded buildings and other facilities to be designed, constructed or altered in accordance with standards that ensure accessibility to, and use by, physically handicapped people. Page 24 of 36 II. EMPLOYMENT AND CONTRACTING The Provider must comply with the regulations below governing employment and contracting opportunities. These concern equal opportunity, labor requirements and contracting/procurement procedures. Equal Opportunity The Provider must comply with the following regulations that ensure equal opportunity for employment and contracting. . Equal Emplovment Opportunity, Executive Order 11246. as amended: 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. Implementing regulations may be found at 41 CFR Part 60. . Section 3 ofthe Housing and Urban Development Act of 1968, Requires that, to the greatest extent feasible, opportunities for training and employment arising from CDBG funds will be provided to low-income persons residing in the program service area. Also, to the greatest extent feasible, contracts for work (all types) to be performed in connection with CDBG will be awarded to business concerns that are located in or owned by persons residing in the program service areal . Minority/Women's Business Enterprise: Under Executive Orders 11625, 12432 and 12138, the City and the Provider must prescribe procedures acceptable to HUD for a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, in all contracts (see 24 CFR 85.36(e)). Labor Requirements The Provider must comply with certain regulations on wage and labor standards. In the case of Davis-Bacon and the Contract Work Hours and Safety Standards Acts, every contract for construction (in the case of residential construction, projects with eight or more units) triggers the requirements. . Davis-Bacon and Related Acts (40 USC 276(A)-7): Ensures that mechanics and laborers employed in construction work under Federally-assisted contracts are paid wages and fringe benefits equal to those that prevail in the locality where the work is performed. This act also provides for the withholding of funds to ensure compliance, and excludes from the wage requirements apprentices enrolled in bona fide apprenticeship programs. . Contract Work Hours and Safety Standards Act. as amended (40 USC 327-333): Provides that mechanics and laborers employed on Federally-assisted construction jobs are paid time and one-half for work in excess of 40 hours per week, and provides for the payment of liquidated damages where violations occur. This act also addresses safe and healthy working conditions. . Copeland (Anti-Kickback) Act (40 USC 276c): Governs the deductions from paychecks that are allowable. Makes it a criminal offense to induce anyone employed on a Federally assisted project to relinquish any compensation to which he/she is entitled, and requires all contractors to submit weekly payrolls and statements of compliance. Page 25 of 36 . Fair Labor Standards Act of 1938. As Amended (29 USC 201. et. sea.): Establishes the basic minimum wage for all work and requires the payment of overtime at the rate of at least time and one-half. It also requires the payment of wages for the entire time that an employee is required or permitted to work, and establishes child labor standards. Contracting and Procurement Practices The CDBG program is subject to certain Federal procurement rules. In addition, the City and the Provider must take measures to avoid hiring debarred or suspended contractors or subrecipients and conflict-of-interest situations. Each is briefly discussed below. . Procurement' For the City, the procurement standards of24 CFR 85.36 apply. For non-profit organizations receiving CDBG funds, the procurement requirements at 24 CFR Part 84 apply. . Conflict ofInterest: The CDBG regulations require grantees (the City), state recipients and subrecipients (the Provider) to comply with two different sets of conflict-of-interest provisions. The first set of provisions comes from 24 CFR Parts 84 and 85. The second, which applies only in cases not covered by 24 CFR Parts 84 and 85, is set forth in the CDBG regulations. Both sets of requirements are discussed below. The provisions at 24 CFR 85.36 and 24 CFR 84.42 apply in the procurement of property and services by grantees (the City), state recipients, and subrecipients (the Provider). These regulations require the City and the Provider to maintain written standards governing the performance of their employees engaged in awarding and administering contracts. At a minimum, these standards must: Require that no employee, officer, agent of the City or the Provider shall participate in the selection, award or administration of a contract supported by CDBG if a conflict-of-interest, either real or apparent, would be involved; Require that employees, officers and agents of the City or the Provider not accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to subagreements; and Stipulate provisions for penalties, sanctions or other disciplinary actions for violations of standards. A conflict would arise when any of the following has a financial or other interest in a firm selected for an award: An employee, agent or officer of the City or the Provider; Any member of an employee's, agent's or officer's immediate family; An employee's, agent's or officer's partner; or An organization that employs or is about to employ an employee, agent or officer of the City or the Provider. The CDBG regulations at 24 CFR 570.611 governing conflict-of-interest apply in cases not covered by 24 CFR 85.36 and 24 CFR 84.42. These provisions cover employees, agents, consultants, officers and elected or appointed officials of the grantee (the City), state recipient or subrecipient (the Provider). The regulations state that no person covered who exercises or has exercised any functions or responsibilities with respect to CDBG activities or who is in a position to participate in decisions or gain inside information: May obtain a financial interest or benefit from a CDBG activity; or Page 26 of 36 Have an interest in any contract, subcontract or agreement for themselves or for persons with business or family ties. This requirement applies to covered persons during their tenure and for one year after leaving the grantee (the City), the state recipient or subrecipient (the Provider) entity. Upon written request, exceptions to both sets of provisions may be granted by HUD on a case-by-case only after the City has: Disclosed the full nature of the conflict and submitted proof that the disclosure has been made public; and Provided a legal opinion from the City stating that there would be no violation of state or local law if the exception were granted. . Debarred contractors: In accordance with 24 CFR Part 5, CDBG funds may not be used to directly or indirectly employ, award contracts to or otherwise engage the services of any contractor or subrecipient during any period of debarment, suspension or placement of ineligibility status. The City should check all contractors, subcontractors, lower-tier contractors or subrecipients against the Federal publication that lists debarred, suspended and ineligible contractors. III. ENVIRONMENTAL REQUIREMENTS The City is responsible for meeting a number of environmental requirements, including environmental reviews, flood insurance, and site and neighborhood standards. Environmental Review The City is responsible for undertaking environmental reviews in accordance with the requirements imposed on "recipients' in 24 CFR 58. Reviews must be completed, and Requests for Release of Funds (RROF) submitted to HUD before CDBG funds are committed for non- exempt activities. Private citizens and organizations may object to the release of funds for CDBG projects on certain procedural grounds relating to environmental review (see 24 CFR 58.70- 58.77). To avoid challenges, grantees (the City) and subrecipients (the Provider) should be diligent about meeting procedural requirements. Flood Insurance Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106): Requires that CDBG funds shall not be provided to an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazard, unless, The community is participating in the National Flood Insurance Program, Q! it has been less than a year since the community was designated as having special flood hazards; and Flood insurance is obtained. IV. LEAD-BASED PAINT On September 15, 1999, the "Requirements for Notification, Evaluation and Reduction of Lead- Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance; Final Rule" was published within title 24 of the Code of Federal Regulations as part 35 (24 CFR 35). The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, which is Title X (ten) of the Housing and Community Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead- Based Paint Poisoning Prevention Act of 1971, which is the basic law covering lead-based paint in federally associated housing. The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead in house dust. Scientific research has found that exposure to lead in dust is the most Page 27 of 36 common way young children become lead poisoned. Therefore, the new regulation requires dust testing after paint is disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing is being disposed of or assisted by the federal government, and also on the type and amount of financial assistance, the age of the structure, and whether the dwelling is rental or owner occupied. PROPERTY EXEMPT FROM LEAD-BASED PAINT REGULATION. . Housing built since January I, 1978, when lead paint was banned for residential use . Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is expected to reside there . Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing, dormitories or military barracks . Property that has been found to be free of lead-based paint by a certified lead-based paint inspector . Property where all lead-based paint has been removed . Unoccupied housing that will remain vacant until demolished . Non-Residential property . Any rehabilitation or housing improvement that does not disturb a painted surface TYPES OF HOUSING SUBJECT TO 24 CFR 35 . Federally-Owned housing being sold . Housing receiving a federal subsidy that is associated with the property, rather than with the occupants (project-based assistance) . Public housing . Housing occupied by a family (with a child) receiving tenant-based subsidy (such as a voucher or certificate) . Multifamily housing for which mortgage insurance is being sought . Housing receiving federal assistance for rehabilitation, reducing homelessness, and other special needs If you want copies of the regulation or have general questions, you can call the National Lead Information Center at (800)424-LEAD, or TDD (800)526-5456 for the hearing impaired. You can also download the regulation and other educational materials at www.hud.gov/lea. For further information, you may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at lead regulationslalhud.gov. V. DISPLACEMENT, RELOCATION, ACQUISITION AND REPLACEMENT OF HOUSING CDBG projects involving acquisition, rehabilitation or demolition may be subject to the provisions of the Uniform Relocation Act (UDA). Demolition or conversion of units with CDBG funds may trigger section 104 (d) (also known as the "Barney Frank Amendments" requirements.) Page 28 of 36 VI. COMPLIANCE WITH NATIONAL OBJECTIVE The Provider will ensure and maintain evidence that activities assisted with CDBG funds from the City of Miami Beach comply with the primary National Objective, "Benefit to Low and Moderate Income Persons" and will provide services or activities that benefit at least 51% low and moderate income persons. A low or moderate-income household is defined as' a household having an income equal to, or less than, the limits cited below. Individuals who are unrelated but are sharing the same household shall each be considered as one-person households. Low and Moderate Household Income Limits (Effective 3/9/2000) (Source: U.S. Department of Housing & Urban Development) (Note, * 80% of Median Income, ** 50 % of Median Income) Household Size I Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons Moderate Income* $25,000 $28,550 $32,100 $35,700 $38,550 $41,400 $44,250 $47,100 Low Income** $15,600 $17,850 $20,050 $22,300 $24,100 $25,850 $27,650 $29,450 LOW/MODERATE INCOME DATA SOUTHERN TARGET AREA Census Tract Total L/M Persons Total Persons % Low/Mod 40.00-5 310 448 69.20 41.01-1 614 757 81.11 41.Q1-2 2,137 4,002 53.40 41.01-3 8\0 1,511 53.61 42 10,Q42 13,736 73.11 43 6,728 9,582 70.21 44 10,774 13 ,244 81.35 45 1,768 2,307 76.64 TOTAL 33,183 45,587 73% LIM NORTHERN TARGET AREA Census Tract Total L/M Persons Total Persons % Low/Mod 39.Q1-1 603 1,036 58.20 39.Q1-2 620 836 74.16 39.Q1-3 407 468 86.97 39.01-4 518 772 67.10 39.01-5 1,593 2,256 70.61 39.01-6 1,581 2,240 70.58 39.02-1 704 897 78.48 39.02-2 876 1,187 73.80 39.Q2-3 211 211 100.00 39.02-4 1,564 2,097 74.58 39.05-2 2,408 3,346 71.97 39.05-4 2,401 3,071 78.18 TOTAL 8,677 12,000 72% L/M Page 29 of 36 CITY OF MIAMI BEACH GLOSSARY Affordable Housinl!: Affordable housing is generally defined as housing where the occupants pay no more than 30 percent of gross income for gross housing costs, including utility costs. AIDS and Related Diseases: The disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome. Alcohol/Other Drug Addiction: A serious and persistent alcohol or other drug addiction that significantly limits a person's ability to live independently. Committed: Generally means there has been a legally binding commitment of funds to a specific project to undertake specific activities. Community Development Target Area, Geographic area where at least 51 percent of the residents are low and moderate income persons. Consistent with the Plan, A determination made by the jurisdiction that a program application meets the following criterion, . The Annual Plan for that fiscal year's funding indicates the jurisdiction planned to apply for the program or was willing to support an application by another entity for the program; . The location of activities is consistent with the geographic areas specified in the plan; and . The activities benefit a category of residents for which the jurisdiction's five-year strategy shows a priority. Cost Burden> 30%: The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Cost Burden >50% (Severe Cost Burden): The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Disabled Household: A household composed of one or more persons at least one of whom is an adult (a person of at least 18 years of age) who has a disability. A person shall be considered to have a disability if the person is determined to have a physical, mental or emotional impairment that, (I) is expected to be of long-continued and indefinite duration; (2) substantially impedes his or her ability to live independently; and (3) is of such a nature that the ability could be improved by more suitable housing conditions. A person shall also be considered to have a disability if he or she has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6006). The term also includes the surviving member or members of any household described in the first sentence of this paragraph who were living in an assisted unit with the disabled member of the household at the time of his or her death. Page 30 of 36 Elderlv Household, For HUD rental programs, a one or two person household in which the head of the household or spouse is at least 62 years of age. Elderlv Person: A person who is at least 62 years of age. Existing Homeowner: An owner-occupant of residential property who holds legal title to the property and who uses the property as his/her principal residence. Familv: See definition in 24 CFR 812.2 (The National Affordable Housing Act definition required to be used in the CHAS rule differs from the Census definition). The Bureau of Census defines a family as a householder (head of household) and one or more other persons living in the same household who are related by birth, marriage or adoption. The term "household" is used in combination with the term "related" in the CHAS instructions, such as for Table 2, when compatibility with the Census definition of family (for reports and data available from the Census based upon that definition) is dictated. (See also "Homeless Family.") Familv Self-Sufficiencv (FSS) Prol!fam: A program enacted by Section 554 of the National Affordable Housing Act which directs Public Housing Agencies (PHAs) and Indian Housing Authorities (IHAs) to use Section 8 assistance under the rental certificate and rental voucher programs, together with public and private resources, to provide supportive services, that will enable participating families to achieve economic independence and self-sufficiency. Federal Preference for Admission, The preference given to otherwise eligible applicants under HUD's rental assistance programs who, at the time they seek housing assistance are involuntarily displaced, living in substandard housing, or paying more than SO percent of family income for rent. (See 24 CFR 882.219.) First Time Home Buver: An individual or family who has not owned a home during the three year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the home buyer, except that any individual who is a displaced homemaker (as defined in 24 CFR 92) or a single parent (as defined in 24 CFR 921) may not be excluded from consideration as a first time home buyer on the basis that the individual, while a homemaker or married, owned a home with his or her spouse or resided in a home owned by the spouse. For Rent: Year round housing units which are vacant and offered/available for rent. (U.S. Census definition). For Sale: Year round housing units which are vacant and offered available for sale only. (U.S. Census definition). Frail Elderlv, An elderly person who is unable to perform at least 3 activities of daily living (i.e., eating, dressing, bathing, grooming, and household management activities). (See 24 CFR 689.105.) Group Ouarters, Facilities providing living quarters that are not classified as housing units. (U.S. Census definition.) Examples include: prisons, nursing homes, dormitories, military barracks, and shelters. HOME: The HOME Investment Partnerships Program, authorized by Title II of the National Affordable Housing Act. Page 31 of 36 Homeless Family, Family that includes at least one parent or guardian and one child under the age of 18, a homeless pregnant woman, or a homeless person in the process of securing legal custody of a person under the age of 18, living in situations described by terms "sheltered" or "unsheltered". Homeless Individual: An unaccompanied youth (17 years or younger) or an adult (18 years or older) without children, living in situations described by terms "sheltered" or "unsheltered". Homeless Youth: Unaccompanied person 17 years of age or younger who is living in situations described by terms "sheltered" or "unsheltered". Household, One or more persons occupying a housing unit (U.S. Census definition). See also "Family". Housing Problems: Households with housing problems include those that: (I) occupy units meeting the definition of Physical Defects; (2) meet the definition of overcrowded; and (3) meet the definition of cost burden greater than 30%. Table IC requests nonduplicative accounts of households that meet one or more of these criteria. Housing Unit: An occupied or vacant house, apartment, or a single room (SRO housing) that is intended as separate living quarters. (U.S. Census definition.) InstitutionslInstitutional, Group quarters for persons under care or custody. (U.S. Census definition.) Larl!e Related: A household of 5 or more persons which includes at least one person related to the householder by blood, marriage or adoption. L1HTC: (Federal) Low Income Housing Tax Credit. Low- Income: Households whose incomes do not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs for fair market rents, or unusually high or low family incomes. NOTE: HUD income limits are updated annually and are available from local HUD offices. (This term corresponds to low and moderate-income households in the CDBG Program.) Moderate-Income, Households whose incomes are between 51 percent and 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD's findings that such yariations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (This definition is different than that for the CDBG Program.) Middle-Income, Households whose incomes are between 81 percent and 95 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families, except that HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis ofHUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (This definition is different than that for the CDBG Program.) Non-Elderly Household, A household which does not meet the definition of "Elderly Household," as defined above. Page 32 of 36 Non-Homeless Person with Special Needs: Includes elderly/frail elderly persons, persons with AIDS, disabled families, and families participating in organized programs to achieve economic self-sufficiency. Non-Institutional, Group quarters for persons not under care or custody. (U.S. Census definition.) Occupied Housing Unit: A housing unit that is the usual place of residence of the occupant(s). Other Household: A household of one or more persons that does not meet the definition of a Small Related household, Large Related household, or Elderly Household. Other Income, Households whose incomes exceed 80 percent of the median income for the area, as determined by the Secretary, with adjustments for smaller and larger families. Other Low-income: Households whose incomes are between 51 percent and 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (This term corresponds to moderate-income in the CDBG Program.) Other Vacant' Vacant year round housing units that are not For Rent or For Sale. This category would include Awaiting Occupancy or Held. Overcrowded, A housing unit containing more than one person per room. (U.S. Census definition.) Owner, A household that owns the housing unit it occupies. (U.S. Census definition.) Phvsical Defects, A housing unit lacking complete kitchen or bathroom. (U.S. Census definition.) Jurisdictions may expand upon the Census definition. Primarv Housing Activity: A means of providing or producing affordable housing -- such as rental assistance, production, rehabilitation or acquisition -- that will be allocated significant resources and/or pursued intensively for addressing a particular housing need. (See also, "Secondary Housing Activity".) Proiect-Based (Rental) Assistance: Rental Assistance provided for a project, not for a specific tenant. Tenants receiving project-based rental assistance give up the right to that assistance upon moving from the project. Public Housing ClAP, Public Housing Comprehensive Improvement Assistance Program. Public Housing MROP: Public Housing Ml\ior Reconstruction of Obsolete Projects. Rent Burden> 30% (Cost Burden), The extent to which gross rents, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Rent Burden> 50% (Severe Cost Burden): The extent to which gross rents, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Rental Assistance: Rental assistance payments provided as either project-based rental assistance or tenant-based rental assistance. Page 33 of 36 Renter: A household that rents the housing unit it occupies, including both units rented for cash and units occupied without cash payment of rent. (U.S. Census definition.) Renter Occupied Unit: Any occupied housing unit that is not owner occupied, including units rented for cash and those occupied without payment of cash rent. Secondary Housing Activity, A means of providing or producing affordable housing such as rental assistance, production, rehabilitation or acquisition -- that will receive fewer resources and less emphasis than primary housing activities for addressing a particular housing need. (See also, "Primary Housing Activity" .) Section 215: Section 215 of Title II of the National Affordable Housing Act. Section 215 defines "affordable" housing projects under the HOME program. Service Needs: The particular services identified for special needs populations, which typically may include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent premature institutionalization and assist individuals to continue living independently. Severe Cost Burden, See Cost Burden> 50%. Severe Mental Illness: A serious and persistent mental or emotional impairment that significantly limits a person's ability to live independently. Sheltered: Families and persons whose primary nighttime residence is a supervised publicly or privately operated shelter, including emergency shelters, transitional housing for the homeless, domestic violence shelters, residential shelters for runaway and homeless youth, and any hotel/motel/apartment voucher arrangement paid because the person is homeless. This term does not include persons living doubled up or in overcrowded or substandard conventional housing. Any facility offering permanent housing is not a shelter, nor are its residents homeless. Small Related: A household of 2 to 4 persons which includes at least one person related to the householder by birth, marriage, or adoption. Page 34 of 36 Substandard Condition: Housing not meeting the City of Miami Beach's Housing Code, containing deficiencies such as holes in roof, faulty or non-existent plumbing, etc. Substandard Condition and not Suitable for Rehab: By local definition, dwelling units that are in such poor condition as to be neither structurally nor financially feasible for rehabilitation. (See also "Substandard Condition.") Substandard Condition-but Suitable for Rehab: By local definition, dwelling units that do not meet standard conditions but are both financially and structurally feasible for rehabilitation. This does not include units that require only cosmetic work, correction or minor livability problems or maintenance work. (See also "Substandard Condition. ") Substantial Amendment: A major change in an approved housing strategy. It involves a change to the five-year strategy, which may be occasioned by a decision to undertake activities or programs inconsistent with that strategy. Substantial Rehabilitation, Rehabilitation of residential property at an average cost for the project in excess of $25,000 per dwelling unit. Supportive Housing: Housing, including Housing Units and Group Quarters, that have a supportive environment and includes a planned service component. Supportive Service Need in FSS Plan: The plan that PHAs administering a Family Self-Sufficiency program are required to develop to identify the services they will provide to participating families and the source of funding for those services. The supportive services may include child care; transportation; remedial education; education for completion of secondary or post secondary schooling; job training; preparation and counseling; substance abuse treatment and counseling; training in homemaking and parenting skills; money management and household management; counseling in home ownership; job development and placement; follow-up assistance after job placement; and other appropriate services. Supportive Services, Services provided to residents of supportive housing for the purpose of facilitating the independence of residents. Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and job training. Tenant-Based (Rental) Assistance: A form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project. Total Vacant Housinl! Units, Unoccupied year round housing units. (U.S. Census definition.) Unsheltered, Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., streets, parks, alleys). Vacant Awaiting Occupancv or Held, Vacant year-round housing units that have been rented or sold and are currently awaiting occupancy, and vacant year round housing units that are held by owners or renters for occasional use. (U.S. Census definition.)Vacant housing Unit: Unoccupied year-round housing unit that are available or intended for occupancy at any time during the year. Verv Low-Income, Households whose incomes do not exceed 50 percent of the median area income for the area, as determined by HUD, with adjustments for smaller and larger families and for areas with Page 35 of 36 unusually high or low incomes or where needed because of prevailing levels of construction costs or fair market rents. (This term corresponds to low income households in the CDBG Program.) (For the purpose of further distinguishing within this category, two subgroups (0 to 30% and 31 to 50% ofMFl) have been established in the CHAS tables and narratives.) Worst-Case Needs, Unassisted, very low-income renter households who pay more than half of their income for rent, live in seriously substandard housing (which includes homeless people) or have been involuntarily displaced. Year Round Housing Units: Occupied and vacant housing units intended for year round use. (U.S. Census definition.) Housing units for seasonal or migratory use are excluded. Page 36 of 36 CITY OF MIAMI BEACH OWNER OCCUPIED HOUSING REHABILITATION PROGRAM February 21,2001 For Information Contact: Community/Economic Development Department Housing Division 1700 Convention Center Drive Miami Beach, FL 33139 Phone: (305) 673-7260/Fax: (305) 673-7772 OWNER OCCUPIED HOUSING REHABILITATION PROGRAM GUIDELINES The Owner Occupied Housing Rehabilitation Program provides financial assistance to bring property up to decent, safe and sanitary housing standards; and correct all existing code violations. The financial assistance may not exceed the lesser of the actual cost of rehabilitation or $15,000 for each dwelling unit. Applicants receiving financial assistance must be able to meet or exceed the decent, safe and sanitary housing standard after rehabilitation, in accordance with the South Florida Building Code, the Miami-Dade County Building Code, and the City of Miami Beach Code. Additionally, all projects must comply with all other applicable laws, rules, and regulations. This financial assistance program may be used in conjunction with any other assistance program in order to make rehabilitation feasible. All applicants must satisfy the following requirements: I. The applicant must be the owner and occupant of a residential property located in the City of Miami Beach and have resided on the property for 180 consecutive days prior to submitting an application. 2. The applicant may have a gross income of up to 80% of area median income as determined by U. S. Department of Housing and Urban Development (HUD). 3. The property must need repairs to meet the decent, safe and sanitary housing standard. 4. The applicant shall have adequate and sufficient evidence of clear title to the subject property . 5. Any and all past-due City, County, Federal and State taxes must be paid and any and all liens filed against the property for past-due taxes must be satisfied and or released. 6. The property must not have received assistance for housing rehabilitation from the City of Miami Beach, during the previous five years. 7. The property must conform to the zoning requirements and land use regulations of the City of Miami Beach. 8. An equitable owner pursuant to an executory or an installment land sales contract may be considered eligible if such eligibility requirements are satisfied. ELIGIBLE COST The actual cost of repairs includes the cost of replacement required to correct a hazardous condition or a code violation. All hazardous conditions must be corrected before any other work may be done. 1. The actual cost of rehabilitation necessary to bring the property up to the decent, safe and sanitary standard. (This is the mandatory minimum work required for any assistance). 2. The actual cost of rehabilitation necessary to bring the property to meet the minimum standards of the South Florida Building Code, the Miami-Dade County Building code, and the City of Miami Beach Code. 3. The cost of rehabilitation to correct or remove potential violations of code including all physical conditions of the property which, if not repaired, would in all likelihood deteriorate within two years to the point where the housing standards of the South Florida Building Code, or any other applicable code, would be violated. 4. The cost of general property improvements: Such improvements shall not be the major focus of the assistance and shall usually be less than forty (40%) percent of the cost of rehabilitation. Owner-supplied funds shall be excluded from such calculations. General property improvements may be included only if the minimum improvements required are satisfied. 5. The cost of building permits, related fees, and appraisals required to carryout the proposed rehabilitation. 6. The cost of architect and engineering fees up to ten percent (10%) of the total rehabilitation costs. The cost of the rehabilitation and all fees, excluding the developers fee, may not exceed $15,000. 7. The cost of temporary relocation when it is deemed necessary during rehabilitation work. INELIGIBLE COSTS The following is a list of work or costs considered ineligible: 1. Extensive work tantamount to new construction or reconstruction of the property. (This does not exclude so-called "gut" rehabilitation of a property if necessary to rneet the South Florida Building Code.) 2. General property improvements above those included in the maximum allowable assistance or otherwise inconsistent with the purpose and guidelines for general property improvements. (However, the owner may provide the difference in cost at the time of execution of the Agreement). 3. The construction and/or repair of swimming pools or jacuzzis. 4. Materials, fixtures, equipment or landscaping of a type or quality which substantially exceeds that customarily used in City of Miami Beach for properties of the same general type as the property to be rehabilitated. (However, the owner may provide the difference between the cost of such materials, etc., as he desires at the time of execution of the Agreement. ) 5. Purchase, repair and/or installation of furnishings. 6. Costs of acquisition of subject property. 7. Reimbursement for work completed prior to the approval of the application and/or prior to the execution of the Agreement. 8. Payment of any lien or judgment against the property including past-due taxes. 9. Any other cost or work performed that the City of Miami Beach deems ineligible. 10. The Cost of rehabilitation to convert a property by increasing or decreasing the nwnber of units on the property. GRANT/DEFERRED PA YMNET CONDITIONS All homes that receive assistance under this program will have a lien placed on the property by the City of Miami Beach for the actual cost of rehabilitation, including any change orders. FIVE YEAR LIEN a. A lien will be placed, by the City of Miami Beach, on the property for five (5) years following the completion of repairs. b. Every year on the anniversary of the completion of repairs, the amount of the lien will be reduced twenty (20%) percent. After five (5) years, the full amount of the lien will be released and discharged by the City of Miami Beach. If the property is sold or transferred during the five-year period and before the lien is released, the owner will be reqtlired to pay to the City of Miami Beach the balance due at the time of sale or transfer. Requirements for all projects requiring the placement of a lien as described above: I. The owner agrees to reside in the residence as his/her principal domicile and further agrees not to lease or rent the property to third parties for the duration of the lien. 2. Failure of the City of Miami Beach to exercise any option or penalty provided in these guidelines, or the Agreement, shall not be considered a waiver of such option or penalty. 3. If the property is inherited by a relative, legatee or beneficiary, the new owner will be required to comply with all the conditions under the program guidelines and the Agreement in order to benefit from the provisions of the program. 4. The owner agrees to properly maintain the property for the duration of the Agreement. MAXIMUM PURCHASE PRICE The maximum purchase price for a unit may not exceed that of the maximum purchase price set by the U. S. Department of Housing and Urban Development (HUD). The maximum purchase price for a unit is currently $138,985. This figure is subject to adjustment by the U.S. HUD. ANNUAL INCOME SCHEDULE (subject to adjustment by U.S. HUD). I person $25,000 2 People $28,550 3 People $32,100 4 People $35, 700 5 People $38,550 6 People $41,400 7 People $44,250 8 People $47.100 (80% of area median income) Income reflected is maximum gross annual income allowed per household, based on family size.