LTC 350-2019 Miami Beach Community Development Corporation UpdateMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC #
350-2019
TO: Mayor Dan Gelber and Members
FROM: Jimmy L. Morales, City Manager
DATE: June 18, 2019
SUBJECT: Miami Beach Community Devel pment Corporation Update
The following is an update on Miami Beach Community Development Corporation (MBCDC)
and its fiscal progress.
In August 2018, the Miami-Dade County Department of Public Housing and Community
Development (PHCD) notified MBCDC of its intent to pursue the County's right to the
assignment of leases and rents of both the Crespi Park Apartments (7900 & 7920 Crespi
Boulevard) and the Madison Apartments (259 Washington Avenue). The County took this
action in response to the physical deterioration of the properties and the actions by MBCDC
to evict tenants and charge rents higher than allowed under its funding agreements with the
County .
In correspondence to Crespi Park Apartments tenants dated June 12, 2019, PHCD has
advised tenants that they may again pay rent to MBCDC rather than the County as "MBCDC
has fully satisfied the outstanding principal balance of the loan agreement" with the County.
Further, the correspondence goes on to say that the Rental Regulatory Agreement (RRA)
that is held by the County will continue to remain in effect and the County will continue to
monitor the physical condition of the property on a regular and ongoing basis."
The County hosted a meeting for Crespi Park Apartments tenants on Monday, June 1 ih, at
the North Shore Youth Center to advise them of this change in rental payment. Tenants
raised additional concerns at the meeting regarding property maintenance. As a result, the
County agreed to hold a second tenant meeting in 30 days to follow-up on these issues and
allow for additional property inspections .
The City has yet to receive a business recovery plan from MBCDC as originally requested at
the October 17, 2018 City Commission meeting and subsequently re-requested by the
Administration at the May 29, 2019 Finance and Citywide Projects Committee meeting.
MBCDC's next report to the City will be at the September 20, 2019 Finance and Citywide
Projects Committee meeting where the organization should provide its business plan for City
review.
The City is interested in this plan since the City is monitoring affordability compliance for six
MBCDC properties and the investment of $9,690,645 in federal funds awarded by the City to
MBCDC. The City also remains concerned about MBCDC's 10% vacancy rate given the
community's need for affordable housing.
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JLM/SMT/MLR