2008-26852 ResoRESOLUTION NO. 2008-26852
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
THE ONE YEAR ACTION PLAN FOR FEDERAL FUNDS FOR
FISCAL YEARS 2002/2003, 2003/2004, 2005/2006,
2006/2007, AND 2007/2008, TO REPROGRAM PRIORYEAR
COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)
FUNDS, IN THE AMOUNT OF $69,894, TO MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION (MBCDC)
FOR THE INTERIOR AND EXTERIOR REHABILITATION OF
THE MERIDIAN APARTMENTS, FURTHER APPROVING
AND AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AN AMENDMENT TO THE CDBG AGREEMENT,
DATED OCTOBER 1, 2007, BETWEEN THE CITY AND
MBCDC, ALLOWING THE $190,000 CDBG ALLOCATION
TO BE UTILIZED FOR A SCATTERED SITES
HOMEOWNERSHIP PROJECT IN NORTH BEACH
(INSTEAD OF FOR A SINGLE SITE BUILDING
ACQUISITION AND REHABILITATION PROJECT AS
ORIGINALLY PROPOSED).
WHEREAS, the City of Miami Beach is an entitlement recipient of U.S.
Department of Housing and Urban Development (HUD) grant programs (Community
Development Block Grant (CDBG) funds, and HOME Investment funds (HOME)), and
the City expects to continue to receive entitlement funds from these grant programs to
operate the City's housing and community development activities; and
WHEREAS, each year, the City prepares an annual One-Year Action Plan
detailing how it intends to allocate funds received from HUD to conduct eligible activities
for the benefit of low and moderate-income Miami Beach residents; and
WHEREAS, periodically, it is necessary for the City to amend the One-Year
Action Plans by reallocating funds from previously funded activities to fund new or
amended CDBG activities; and
WHEREAS, the proposed amendments to the City's One-Year Action Plan are
detailed in Exhibit 1 to this Resolution, attached hereto; and
WHEREAS, for CDBG grantees, HUD regulations require that grantees must
maintain an expenditure ratio of less than 1.5 times the annual grant award amount; and
WHEREAS, the City intends to be compliant with this timeliness ratio once the
proposed reallocations are approved and executed, thereby maximizing the use of all
federal funds received; and
WHEREAS, in accordance with HUD regulations and the City's Citizen
Participation Plan concerning substantive amendments, the Administration held a 30-day
citizen comment period, which was advertised on February 28, 2008, through March 28,
2008, and no comments were received; and
WHEREAS, on May 6, 2008, the City's Community Development Advisory
Committee (CDAC) approved the reprogramming of unspent funds from FY 2002/03,
2003/04, 2005/06, and 2006/07, to a new FY 2007/2008 activity; and
WHEREAS, the CDBG Agreement with MBCDC, dated October 1, 2007,
allocated $190,000 to be made available for MBCDC's use to identify a suitable building
for acquisition and rehabilitation in the North Beach area, to be converted to two and
three bedroom condominiums for sale to low and moderate income individuals and
families; and
WHEREAS, due to the downturn in real estate market conditions and the
resulting oversupply of affordable condominium units, MBCDC has proposed to instead
utilize the CDBG allocation to provide assistance of up to $30,000 to a minimum of six (6)
income-eligible first time home buyers to acquire housing units in the North Beach area;
and
WHEREAS, the Administration would recommend that the CDBG Agreement
with MBCDC be amended to allow the use of $190,000 for scattered affordable housing
sites.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
Commission approve amendments the One-Year Action Plan for Federal Funds for FY
2002/2003, 2003/2004, 2005/2006, 2006/2007, and 2007/2008 to reprogram CDBG
funds, in the amount of $69,894, to Miami Beach Development Corporation for the
renovations to the Meridian Place Apartments, as described in Exhibit 1 to this
Resolution; and further approve an amendment to the CDBG Agreement, dated October
1, 2007, between the City and MBCDC, allowing the $190,000 CDBG allocation to be
utilized for a scattered sites homeownership project in North Beach instead of for a single
site building acquisition and rehabilitation project as originally proposed; and further
authorizing the Mayor and City Clerk to execute the related agreements for the reprogram
and reallocation of the aforementioned funds.
PASSED AND ADOPTED this 16th day of July , 2008.
ATTEST:
a/~-c~c~
CITY CLERK
Robert Parcher
OR FO " M & LANGUAGE
Matti Herter~C $D~EIf ~ I'OR CUTION
`7 10 '48'
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Amending the One-Year Action Plans for FY 2003/2004, 2005/2006, 2006/2007, and 2007/2008 to reprogram prior years
Community Development Block Grants (CDBG) funds; and amending the FY2007/08 CDBG Agreement between the City and MBCDC to allow
the $190,000 allocation to be utilized for affordable housing scattered sites homeownership in North Beach instead of for a single site building
condominium conversion project.
Key Intended Outcome Supported:
Increase access to affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 Customer Satisfaction Survey, affordable housing was a
concern for 77% of those surveyed.
Issue:
Shall the City amend Action Plans for FY2003/2004, 2005/2006, 2006/2007 and 2007/2008 to reprogram unspent prior years CDBG funds for
MBCDC's continued rehabilitation of the Meridian Place Apartments, and shall the City amend an existing agreement with MBCDC to allow
$190,000 which was previously allocated for acquisition and rehabilitation of a building in the North Beach area to be converted to
condominiums for sale to low and moderate income individuals/families, to be instead allocated for a scattered sites project for first time low
and moderate income home buyers?
Item Summary/Recommendation:
The City of Miami Beach proposes Amendments to the One-Year Action Plans for FY 2002/03, 2003/04, 2005/06, and 2006/07 to reprogram
unspent funds to a new FY 2007/08 activity. Six allocations of funding remain unspent by various recipients for prior years. Allocations made
for the benefit of the Jewish Community Services of South Florida -Miami Beach Senior Center Improvements in FY 2002/2003 ($25,000) and
FY 2003/2004 ($22,920) were unspent due to construction delays and insufficient funding. Administration expenses in FY 2005/2006
($10,962) and FY 2006/2007 ($10,000) were unspent by the end of the program year as required by HUD regulations. Remaining balances in
the FY 2006/2007 allocation made to Jewish Community Services of South Florida -Homeless Outreach for Prevention and Employment also
remained unspent by the end of the program year ($74), as well as for R.A.I.N. Parents, Inc. -Family Network Services in FY 2006/2007
($938). Meanwhile, there is a need to provide additional funding to MBCDC for the Meridian Place Apartments Interior and Exterior
Rehabilitation project. This Art Deco building was built in 1940 and is known as the Meridian Hotel. When the renovations are complete, the
building will have 34 apartment units (20 efficiency units and 14one-bedroom apartments) that will serve former homeless elderly low income
tenants.
Furthermore, as a result of the adoption of the FY 2007/2008 One-Year Action Plan, the City entered into a Community Development Block
Grant Agreement with MBCDC on October 1, 2007, for $190,000 to be made available for MBCDC's use to identify a suitable building for
acquisition and rehabilitation in the North Beach area to be converted to condominiums. The building would include two and three bedroom
units for sale to low and moderate income individuals and families. However, due to the downturn in real estate market conditions and the
resulting oversupply of affordable condominium units, MBCDC has proposed to instead utilize the CDBG allocation to provide assistance of up
to $30,000 to a minimum of six first time home buyers to acquire housing units in the North Beach area. Therefore, an amendment to
MBCDC's agreement is recommended.
~aylSOry 13oara R@COmmenaatlon:
The Community Development Advisory Committee (CDAC) met and addressed these issues as follows:
• May 6, 2008 -approved the reprogramming of FY 2002/03, 2003/04, 2005/06, and 2006/07 unspent funds to a new FY 2007/08
activity in the amount of $69,894;
• June 23, 2008 - met to discuss MBCDC contract amendment for $190,000 scattered affordable housing sites. Although there were
not enough CDAC members present for quorum, the members in attendance unanimously passed a consensus vote to approve this
amendment.
Financial Information:
Source of Amount
Funds:
1 CDBG Funds to be reprogrammed:
$25,000 -FY2002/03 JCS Miami Beach Senior Center
$22,920 -FY2003/04 JCS Miami Beach Senior Center
$74 -FY 2006/07 JCS Homeless Outreach/Prev. & Emp
$10,962 -FY2005/06 City of Miami Beach Admin
$10,000 -FY2006/07 City of Miami Beach Admin
OBPI .~~ $938 -FY2006/07 R.A.I.N. Parents -Family Network
2 ~ $190,000 -Amend 2007/08 MBCDC CDBG Agreement
Account
133.5449.000346
134.5449.000346
130.5454.000345
136.1931.000343
130.1931.000343
130.5453.000343
131.5663.000346
Impact Summary: N/A
cit cleric's office Le islative
Anna Parekh
Department Director (~ /4~~is~nt CitxManager ~ City Manager
NDA\20081Ju1y 16\Consent\CDBG Amendmi~nts Summary.doc
A /~ ~ ~ ~ ~ ~~ (,~ AGENDA ITEM G7
~ J 1 ~ ~ n DATE ~6 ~
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM-
TO: Mayor Matti Herrera Bower and Members of the City C mmission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 16, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE ONE-YEAR ACTION PLAN FOR
FEDERAL FUNDS FOR FY 2002/2003, 200312004, 2005/2006 200612007, AND
2007/2008 TO REPROGRAM PRIOR YEAR COMMUNITY DEVELOPMENT BLOCK
GRANTS (CDBG) FUNDS IN THE AMOUNT OF $69,894 TO MIAMI BEACH
COMMUNITY DEVELOPMENT CORPORATION FOR THE INTERIOR AND
EXTERIOR REHABILITATION OF THE MERIDIAN APARTMENTS, AS DESCRIBED
IN EXHIBIT ~; AUTHORIZING AN AMENDMENT TO THE COMMUNITY
DEVELOPMENT BLOCK GRANT AGREEMENT DATED OCTOBER 1, 2007,
BETWEEN THE CITY AND MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC) ALLOWING THE $190,000 CDBG ALLOCATION TO BE
UTILIZED FOR A SCATTERED SITES HOMEOWNERSHIP PROJECT IN NORTH
BEACH INSTEAD OF FOR A SINGLE SITE BUILDING ACQUISITION AND
REHABILITATION PROJECT AS ORIGINALLY PROPOSED; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE RELATED
AGREEMENTS FOR THE REPROGRAM AND REALLOCATION OF THE
AFOREMENTIONED FUNDS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City of Miami Beach is an entitlement recipient of federal formula grant programs from the
U.S. Department of Housing and Urban Development (HUD). Each year, the City prepares an
annual One-Year Action Plan detailing how it intends to allocate funds received from HUD to
conduct eligible activities for the benefit of low and moderate-income Miami Beach residents.
From time to time, the City amends One-Year Action Plans for federal funds for purposes of
reallocating prior year(s) unspent funds to fund new or amended activities. The reallocation of
funds ensures maximum use of federal funds and compliance with timeliness ratio requirements
by HUD.
Six allocations of prior year funding, totaling $69,894, remain unspent by various recipients as
shown on the attached Exhibit 1. Allocations made for the benefit of the Jewish Community
Services of South Florida -Miami Beach Senior Center Improvements - in FY 2002/2003
($25,000) and FY 2003/2004 ($22,920) were unspent due to construction delays and insufficient
funding. Allocations made for City Community Development Division administration expenses in
FY 2005/2006 ($10,962) and FY 2006/2007 ($10,000) were unspent by the end of the program
year as required by HUD regulations. A remaining balance of the FY 2006/2007 allocation made
to Jewish Community Services of South Florida -Homeless Outreach for Prevention and
Employment -also remained unspent by the end of the program year ($74), as well as R.A.I.N.
Parents, Inc. -Family Network Services - in FY 2006/2007_($938).
Page 2 of 2
Meanwhile, there is a need to provide additional funding to Miami Beach Community
Development Corporation (MBCDC) for the renovation of Meridian Place Apartments Interior
and Exterior Rehabilitation for FY 2007/2008, which received a total CDBG allocation for FY
2007/2008 in the amount of $160,230.
The Meridian Place Apartments, located at 530 Meridian Avenue, a contributing structure in the
National Register Miami Beach Architectural District, is situated in the Ocean Beach Historic
district. It was built in 1940 as a three-story art Deco Hotel known then as the Meridian Hotel,
designed by David T. Ellis as a 70 unit transient hotel building. The building was purchased by
MBCDC in 2006 and the rehabilitation will include the exterior rehabilitation of the original
historic elements, such as facade, the complete ground level porch with ornaments, historic
rehabilitation of the lobby area, inclusion of a new elevator and new exteriorwindows and doors,
as described in the attached Exhibit 2. When finished, the building will have 34 apartment units
(20 efficiency units and 14 one-bedroom apartments) that will serve former homeless elderly
tenants. A significant aspect of the renovation includes the effort to provide as many one
bedroom units as possible. The complete interior rehabilitation includes new H/VAC systems,
electrical and plumbing systems. Complete structural rehabilitation will also be part of the scope
of work for this project, including gunite work at tie-beams and columns and new framing where
needed. Anew roof system will be installed and the whole structure will be retrofitted to meet
the protocol for high velocity hurricane zones as described in the South Florida Building Code.
The rehabilitation of the building commenced March 1, 2008 and the proposed reprogrammed
funds will be for the preliminary work of the historic lobby configuration and an exterior
accessible route for ADA compliance. The reallocated $69,894 funds have been reflected in
MBCDC's updated project budget and pro forma for the Meridian Place Apartments.
In accordance with HUD regulations and the City's Citizen Participation Plan concerning
substantive amendments, the Administration held a 30-day citizen comment period, which was
advertised on February 29, 2008 through March 28, 2008, and no comments were received.
On May 6, 2008, the City's Community Development Advisory Committee (CDAC) approved the
reprogramming of unspent funds from Fiscal Years 2002/03, 2003/04, 2005/06, and 2006/07 to
the proposed new FY 2007/2008 activity.
Furthermore, as a result of the adoption of the FY2007/2008 One-Year Action Plan, the City
entered into a Community Development Block Grant Agreement with MBCDC on October 1,
2007 for $190,000 to be made available for MBCDC's use to identify a suitable building for
acquisition and rehabilitation in the North Beach area to be converted to condominiums. The
building would include two and three bedroom units for sale to low and moderate income
individuals and families. However, due to the downturn in real estate market conditions and the
resulting oversupply of affordable condominium units, MBCDC has proposed to instead utilize
the CDBG allocation to provide assistance of up to $30,000 to a minimum of six income-eligible
first time home buyers to acquire housing units in the North Beach area.
On June 23, 2008, CDAC members discussed the proposed amendment to the CDBG
Agreement with MBCDC for its use of the $190,000 allocation for scattered affordable housing
sites. Although there was not a quorum present, the members in attendance unanimously
passed a consensus vote supporting the proposed amendment.
CONCLUSION
The Administration recommends approval of the proposed amendments.
JMG/HMF/AP
T:\AGENDA\2008\July 16\Consent\CDBG Amendments Memo.doc
Exhibit 1
SOURCE OF FUNDS DISTRIBUTION OF FUNDS
AGENCY -PROJECT AMOUNT AGENCY -PROJECT AMOUNT
.CDBG Pro ram CDBG Pro ram
Jewish Community Services of South $25,000 Miami Beach Community Development $69,894
Florida -Miami Beach Senior Center Corporation -Meridian Apartments Interior
Improvements (2002-2003 One-Year Action and Exterior Rehabilitation (One-Year Action
Plan) Plan for 2007/2008)
Jewish Community Services of South $22,920
Florida -Miami Beach Senior Center
Improvements (2003-2004 One-Year Action
Plan)
City of Miami Beach -Community $10,962
Development Division, Administration
(2005/2006 One-Year Action Plan)
City of Miami Beach -Community $10,000
Development Division, Administration
(2006/2007 One-Year Action Plan)
Jewish Community Services of South $74
Florida -Homeless Outreach for Prevention
and Employment (2006/2007 One-Year
Action Plan
R.A.I.N. Parents, Inc. -Family Network $938
Services (2006/2007 One-Year Action Plan)
Total CDBG Funds $69,894 Total CDBG Funds $69,894
EXHIBIT 2
[iuilding and Sustaining Community -- Unique, Vibrant, Diverse
May 2, 2008
CDAC Board Members
City of Miami Beach
1700 Convention Center Dr.
Miami Beach FL. 33139
RE: Meridian Place Apartments Interior and Exterior Rehabilitation
Dear CDAC Board Members:
The Meridian Place Apartments, a contributing structure in the National Register Miami
Beach Architectural District located at X30 Meridian Avenue the structure is situated in
the Ocean Beach Historic District, it was built in 1940 as a three-story, Art Deco Hotel
known then as the Meridian Hotel it was designed by David T. Ellis as a 70 unit transient
hotel building. The Building is now vacant and boarded up Miami Beach CDC is
securing permits to commence substantial rehabilitation by December 2008.
The building was purchased by Miami Beach Community Development Corporation in
2006 after Carfour Corporation encountered considerable resistance from the Community
and Local government to develop the building as a 71 unit homeless transient housing.
When finished the building will have 3~1 efficiency apartment units that will serve former
homeless elderly tenants which are at less than 30% of AMI therefore the project meets
the national objective of serving the low income households. MBCUC is also securing
housing vouchers for the future tenants which will allow them to pay only 30% of their
income for rent.
In the meantime while project funding for the main rehab is being secured MBCDC
obtained an allocation form the City Of Miami Beach CDBG funds in the amount of
$160,230.00 to complete the exterior work and building cleanout to correct violations for
property maintenance standazds issued by the Code Enforcement department after several
complaints by the neighbors stating that the building was an "eyesore" to the community
in fact the building was vacant and homeless individuals where using it as a refuge
increasing criminal and drug activity in the azea. MBCDC is coming back to the City of
Miami Beach for an additional allocation of $69,894.00 of CDBG funds to continue with
the work already started in this case the reconfiguration of the historic lobby, preparation
of the new elevator shaft and ADA means of vertical accessibility to the structure once
this portion is completed all violations will be closed and the building will be secured and
ready to start the main construction activities. The plans for the main rehabilitation are at
the Building Department for permitting and we anticipate to obtain a building permit and
start construction by winter 2008.
MIAMI QEACH COMMUNITY DEVELOPMENT CORPORATION
f7i1S D...,.....I......~.~. A.... ~ AA;..,.,..: D......L. CI..~:J. 7~]A')n - nL___ nnC C7o nnnn _ r_.. nnr run nnin
Rehabilitation of the Meridian Place apartments will include the exterior rehabilitation of
the original historic elements, such as the facade, the complete ground level porch with
ornaments, the historic rehabilitation of the lobby area inclusion of a new elevator and
new exterior windows and doors. A significant aspect of the renovation includes the
effort to provide as much efficiency units as possible C3~~ The complete interior
rehabilitation includes new H/VAC systems, electrical and plumbing systems. Complete
structural rehabilitation will also be part of the scope of work for this project including
gunite work at tie-beams and columns and new framing where needed also a new roof
system will be installed and the whole structure will be retrofitted to meet the protocol for
high velocity hurricane zones as described in the South Florida Building Code. These
units will provide affordable housing to formerly homeless elder low-income residents of
Miami Beach.
The following documents are presented for your consideration:
1. CDBG $b9,894 allocation Work description and scope of work
2. CDBG $69,894 allocation Budget forms
3. Meridian Place complete project sources and uses
4. Project progress report as of April 24, 2008
5. Development Schedule
6. Copies of violations being corrected
7. Building permits in place and in applied status
8. Location Map
9. Before and after progress photographs
10. Plans depicting the Phases of construction activities at the building
06/06/2008
MERIDIAN PLACE APARTMENTS
530 MERIDIAN AVE
Miami Beach FI 33139
Per Sq Ft Per Unit
1 USES Sq Ft/ Units 16,525 34
Purchase Price 3,800,000 Costs per 230 111,765
Construction Costs to complete 2,400,000 Costs per 145 70,588
Pre Development Costs 1,068, 326 Costs per 65 31,421
Contin enc on Construction 240,000 Costs 15 7,059
Total Pro'ect Cost 7,508,326 Total Cost erg 454 ~ 220,833
2 SOURCES
City of Miami Beach HOME 309,469 Existing MAXIMUM ~ 4,181,206
Miami Dade County Surtax 1,379,395 Existing CMB HOME 309,469
Miami Dade HOME 280,517 Existing County HOME 280,517
Florida Housing Demo Loan 1,000,000 Existing CMB HOME 2,400,000
City of Miami Beach RDA 1,500,000 New
City of Miami Beach CDBG Facade 160,230 New Total ~ 2,989,986
City of Miami Beach CDBG Facade 69,894 New Available ~ 1,191,220
City of Miami Beach HOME 07/08 800,000 New
City of Miami Beach HOME 09/10 1,000,000 New
City of Miami Beach HOME 10/11 315000
Total Grants 6,814,505
Balance to be Financed 693,821
3 Financing AMOUNT # p s r. ~ Rate ~ Years ~ Monthly
Bank Loan 693,821 12 8.00% 30 5,091
12 0.00% 30 0
12 0.00% 30 0
12 0.00% 30 0
TOTAL 693,821 Total Monthly Debt Service ~ 5,091
Meridian Place Apartments CMB $1,000,000.123 06/06/2008