2008-26820 ResoRESOLUTION NO. 2008-26820
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING
THE MAYOR AND THE CITY CLERK TO EXECUTE A FHtST
AMENDMENT TO THE HOME INVESTMENT PARTNERSHIP (HOME)
AGREEMENT BETWEEN THE CITY AND MBCDC MERIDIAN PLACE
LLC., DATED MARCH 14, 2007; SAID AMENDMENT PROVIDING FOR
$800,000 FROM FISCAL YEAR (FY) 2007/2008 HOME PROGRAM SET-
ASIDE FUNDS FOR THE PAYMENT OF THE EXISTING SELLER
FINANCING FOR THE MERIDIAN PLACE APARTMENTS, LOCATED AT
530 MERIDIAN, MIAMI BEACH, FLORH)A, A PROJECT THAT WILL
PROVH)E THIRTY-FOUR (34) RENTAL HOUSING UNITS FOR ELDERLY
HOMELESS PROGRAM-ELIGIBLE PERSONS, IN ACCORDANCE WITH
THE HOME PROGRAM REQUIREMENTS.
WHEREAS, on February 18, 1992, the City was designated by the U.S. Department
of Housing and Urban Development (HUD) as a Participating Jurisdiction to receive funds
through the HOME Investment Partnerships (HOME) Program under 24 CFR 92; and
WHEREAS, the City has established a HOME Investment Partnerships Program
(HOME Program) under the rules of the U.S. Department of Housing and Urban
Development (U.S. HUD), which provides financial assistance for the purpose of providing
affordable housing within the City; and
WHEREAS, on April 8, 1993, the Mayor and City Commission approved Resolution
No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC)
as a qualified Community Housing Development Organization (CHDO) under the HOME
Program; and
WHEREAS, on March 14, 2007, the Mayor and City Commission approved
Resolution No. 2007-26481, which approved a re-program of $309,469 of Fiscal Year (FY)
2002/2003 HOME Program funds to MBCDC (previously awarded to Carrfour Supportive
Housing) for the acquisition and rehabilitation of the building located at 530 Meridian Avenue,
Miami Beach (the Property), and authorized the Mayor and City Clerk to execute a HOME
Program Agreement with MBCDC Meridian Place LLC, utilizing the aforementioned $309,469
re-programmed funds, towards the cost of the acquisition and/or rehabilitation of said Property;
and
WHEREAS, the Administration would hereby recommend that the Mayor and City
Commission approve and authorize the Mayor and City Clerk to execute the attached
First Amendment to the Agreement, said Amendment in the amount of $800,000 for the purpose
of repayment of the existing seller financing for the Meridian Place Apartments.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Clerk hereby approve and authorize the Mayor and City Clerk to execute a First Amendment to
HOME Investment Partnerships (HOME) Program Agreement with MBCDC: Meridian Place
LLC, providing $800,000 of HOME Program Set-Aside funds from Fiscal Year 2007/08 to
MBCDC for the payment of the existing seller financing for the Meridian Place Apartments,
located at 530 Meridian Avenue, Miami Beach, a project that will provide thirty-four (34) rental
housing units for elderly homeless program-eligible persons, in accordance with the HOME
Program requirements.
PASSED AND ADOPTED THIS 14th DAY OF Ma
AT ST:
e~-G~w,
CITY CLERK
Robert Parcher
2008
MA OR
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving and authorizing the Mayor and the City Clerk to execute a first amendment to the HOME
Investment Partnership (HOME) agreement between the City of Miami Beach and MBCDC Meridian Place LLC. dated
March 14, 2007 providing for $800,000 from Fiscal Year 2007/2008 HOME Program set-aside funds for the payment of the
existing seller financing for the Meridian Place Apartments, located at 530 Meridian, Miami Beach, Florida, a project that
will provide thirty-four (34) rental housing units for elderly homeless program-eligible persons, in accordance with the
HOME program requirements
Ke Intended Outcome Su ortea:
Increase access to affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 Customer Satisfaction Survey, 75% of
esidents rank the quality of life within the City of Miami Beach favorably. In regards to Construction/Development -
ousing, 67% of respondents indicated that the City of Miami Beach should ensure the provision of housing for the
Iderly/seniors and to households with an annual income at or below $80,000.
Issue:
Shall the City Commission authorize the Mayor and the City Clerk to execute a first amendment to the HOME agreement
between the City of Miami Beach and MBCDC Meridian Place LLC. Providing $800,000 from Fiscal Year 2007/2008
HOME program set-aside funds for the payment of the existing seller financing for the Meridian Place Apartments, located
at 530 Meridian, Miami Beach, Florida, a project that will provide forty (40) rental housing units for elderly program-eligible
persons in accordance with the HOME program requirements
Item Summary~Recommenaation:
On February 18, 1992, the City was designated by the Urnted States Department of Housing and Urban Development '
(HUD) as a participating jurisdiction for the receipt of funds as provided under the HOME Investment Partnerships
Program. The City entered into an agreement with HUD for the purpose of conducting an affordable housing program with
federal financial assistance under the HOME Program. On April 8, 1993, the Mayor and City Commission approved
Resolution No. 93-20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified
Community Housing Development Organization (CHDO) under the HOME Program.
On February, 6, 2007, Miami Beach Community Development Corporation (MBCDC) closed on the property located at 530
Meridian Avenue. The three story building, built in 1940, and until 2001 had been operated as a transient hotel. Carrfour
Supportive Housing (Carrfour) purchased the building at the time, and began construction. Carrfour planned on developing
this project into a 70 units single room occupancy project (SRO) mainly for Miami Beach homeless individuals. Carrfour
decided not to pursue completion of the project. The property remained vacant and boarded for approximately four years,
creating a nuisance in the neighborhood. MBCDC intervened by acquiring the property and secured funding from: State of
Florida 1.3 million; Miami-Dade County: 1.7 million; City of Miami Beach $309,469 (of HOME funds). On March 14, 2007
the City signed a HOME program agreement with MBCDC Meridian Place LLC providing funds in the amount of $309,469
for acquisition and rehabilitation of the Meridian Apartments. The $800,000 CHDO Set-Aside funds will be utilized for
payment of existing financing for Meridian Place, reducing the monthly interest that MBCDC Meridian Place LLC pays on
the existing loan The Administration recommends funding MBCDC Meridian Place LLC in the amount of $800,000.
Adviso Board Recommendation:
F' nciallnformation•
ma
Source of Funds:
Amount
Account
1 $800,000 151-5221-000349
2
3
OBPI Total
Financial Impact Summary:
Clerk's Office Legislative Trac
Sinn_nffs~
Department Director Assistant City. Manager City Manager
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AGENDA ITEM ~ / F
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florido 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Managfer
DATE: May 14, 2008 ~,, ~Q(,ws~-
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND THE
CITY CLERK TO EXECUTE A FIRST AMENDMENT TO THE HOME INVESTMENT
PARTNERSHIP (HOME) AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND
MBCDC MERIDIAN PLACE LLC. DATED MARCH 14, 2007, PROVIDING FOR $800,000
FROM FISCAL YEAR 2007/2008 HOME PROGRAM SET-ASIDE FUNDS FOR THE
PAYMENT OF THE EXISTING SELLER FINANCING FOR THE MERIDIAN PLACE
APARTMENTS, LOCATED AT 530 MERIDIAN, MIAMI BEACH, FLORIDA, A PROJECT
THAT WILL PROVIDE THIRTY-FOUR (34) RENTAL HOUSING UNITS FOR ELDERLY
HOMELESS PROGRAM-ELIGIBLE PERSONS, IN ACCORDANCE WITH THE HOME
PROGRAM REQUIREMENTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
On February 18, 1992, the City was designated by the United States Department of Housing and
Urban Development (HUD) as a participating jurisdiction for the receipt of funds as provided under
the HOME Investment Partnerships Program. The City entered into an agreement with HUD for the
purpose of conducting an affordable housing program with federal financial assistance under the
HOME Program. On April 8, 1993, the Mayor and City Commission approved Resolution No. 93-
20756, designating Miami Beach Community Development Corporation (MBCDC) as a qualified
Community Housing Development Organization (CHDO) under the HOME Program. In accordance
with the HOME Program regulations, the City must commit a minimum of fifteen percent of each
Fiscal Year's HOME allocation for a CHDO set-aside, for investment in housing to be developed,
sponsored or owned by CHDO's. This information is contained in the City of Miami Beach, One-Year
Action Plan for Federal Funds, Fiscal Year 2007-2008, which was approved by the City Commission
on July 11, 2007.
On February, 6, 2007, Miami Beach Community Development Corporation (MBCDC) closed on the
property located at 530 Meridian Avenue. The three story building was built in 1940, and until 2001
had been operated as a transient hotel. Carrfour Supportive Housing (Carrfour) purchased the
building at the time, and began, but never completed construction. Carrfour planned on developing
this project into a 70 units single room occupancy project (SRO) mainly for Miami Beach homeless
individuals. MBCDC acquired the property from Carrfour. Funding for acquisition and rehabilitation
was secured from the State of Florida, $1.3 million; Miami Dade County, $1.7 million; and City of
Miami Beach, $309,469 (HOME funds).
Commission Memorandum
May 14, 2008
Page 2 of 2
The acquisition was completed with a City allocation of $1.5 million of Redevelopment Agency (RDA)
funds. Included in the acquisition was the assumption of Seller financing of $1.1 million, negotiated
by the prior owner (Carrfour) at a rate of 10% interest. MBCDC is requesting $800,000 of their
CHDO set aside to reduce the principal of $1.1 million, which will save approximately $10,000 per
month in interest.
The project also received $1.8 million for the next 10 years in Rental Assistance vouchers from HUD
which will allow the residents to pay only 30% of their income for rental. These vouchers can only be
applied to SRO units and studio apartments. Originally, MBCDC had included some one bedroom
units in their project plan. However, they were informed by HUD that one bedroom units are not
eligible for voucher assistance. Therefore, MBCDC reconfigured their plans to 34, self-contained
studio units.
On July 11, 2007, the City of Miami Beach allocated $160,230 in Community Development Block
Grants (CDBG) funds to renovate the facade of the Meridian Apartments and address neighborhood
complaints, and maintain the historic character of the building.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida, approve and authorize the Mayor and the City Clerk to execute an agreement between the
City and MBCDC Meridian Place LLC., in the amount of $800,000 from FY 2007/2008 HOME
Program Set-Aside funds.
JMG/HMF/VPG/AA