LTC 174-2020 Rent Assistance Funds to Assist Residents Affected by COVID-19M IA M I BEACH
OFFICE OF THE CITY MANAGER
174-2020
NO. LTC# LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of ~he City Commission
FROM: Jimmy L. Morales, City Manager
DATE: May 11, 2020
SUBJECT: Rent Assistance Funds to Assisl Residents Affected by COVID-19
This Letter to Commission (L TC) provides greater detail regarding the state and federal funds
available to provide rent and mortgage relief for residents adversely impacted by COVID-19.
Community Development Block Grant Program & CARES Act CDBG-CV
On April 2, 2020, HUD sent a letter to the City notifying of a special allocation of Community
Development Block Grant (CDBG-CV) funds to be used to prevent, prepare for, and respond to
coronavirus (COVID-19). This allocation was authorized by the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act) which was signed by President Donald Trump on March 27,
2020, to respond to the growing effects of the public health crisis. The CARES Act has made
available to the City $564,276 in CDBG-CV. The Administration is making amendments to the
2018-2022 Consolidated Plan and 2019 Action Plan to enable the City to receive and administer
these new funds as s required by federal regulations.
On April 9, 2020, HUD released a memo transmitting the CARES Act Flexibilities for CDBG Funds
Used to Support Coronavirus Response Guide. The guide included a waiver to eliminate the 15
percent cap on Public Services Activities for CDBG-CV and extended this waiver to CDBG FY
2019 and FY 2020 funds.
Below is a summary of the total funds available for rent assistance through CDBG-CV and CDBG:
CDBG-CV Pending receipt of funds,
$214 635 I however waivers allow
utilization of funds pre-award
C7 D - Substantial
Amendment to the City's
Consolidated Plan & FY
2019 Action Plan
CDBG FY 2018 $3,600 1 Immediately Authorized via resolution
no. 2018-30390
Total $218,235
The full amount of these funds will be used directly for assistance as the City will not charge
administrative costs for administration.
CDBG Rent Assistance: This program provides assistance to qualifying Miami Beach residents
earning up to 80% Area Median Income who are in danger of becoming homeless for failing to
pay their monthly rent. Under program guidelines, up tp three months assistance payable directly
to the landlord upon verification of eligibility and financial position. An estimated 136 households
may be assisted with these funds.
Eligibility:
• Must be U.S. citizen or permanent resident;
• Must be a resident of the City of Miami Beach;
• Must demonstrate need due to job loss as a result of COVID-19;
• H o u se h o ld in c o m e m u st m e le ss than 80% area median income (AMI); and
• R e nt m u st be ha v e be e n cu rre n t a s of February 2020.
Required documentation:
• Proof of legal residency;
• Copy of paystubs for all household members;
• Copy of most recent unemployment payment, if applicable;
• C o py of bank statement(s), annuity statements or any other documentation showing
personal assets;
• Notice from employer relating to reduction of work hours/employment/business closure
due to COVID-19;
• Copy of current lease;
• Proof applicant was current on rent as of February 2020; and
• W-9 form completed by landlord.
Application process:
Interested residents should call the Office of Housing and Community Services to schedule an
appointment. Staff will inform callers of the required documentation to bring to the appointment.
Once staff has a complete application with all of the required documentation, the application will
be reviewed for eligibility. Applicants will be provided with correspondence to provide to their
respective landlord that an application for rent assistance has been filed with the City of Miami
Beach. Once the file is approved, a check will be mailed to the landlord within 7-1 O business days.
HOME Investment Partnership Program
On April 1 O, 2020, the U.S. Department of Housing and Urban Development (HUD) issued a
memorandum with the purpose of providing guidance, necessary statutory suspensions and
regulatory waivers for the use HOME Investment Partnership (HOME) funds for tenant-based
rental assistance (TBRA ) to households affected by COVID-19. Funds allocated to TBRA are
designated to: 1) provide immediate rental assistance to individuals and families seeking housing;
2) assist households that have housing but face reduced or lost wages and 3) assist existing
TBRA families that need additional assistance due to reduced or lost wages.
The City of Miami Beach TBRA program is designed to provide up to six (6) months rental and
utility assistance to low-income households at or below 60 percent of Area Median Income
experiencing financial hardship during the COVID-19 pandemic. Applicants must have
experienced job loss or difficulty paying rent or utilities as a result of the COVID-19 pandemic. As
per HUD regulations, the majority of households who receive HOME TBRA assistance must be
very-low income (earning 60% percent or less of AMI) and no household served may have income
in excess of 80% AMI.
The following are program eligibility requirements for HOME TBRA :
1. Applicants must have US Citizenship, permanent residency or granted legal status;
2. Qualifying utility costs to be paid include: electricity, water and natural gas;
3. Program funds are only available to renters that live or plan to relocate within City limits;
4. Maximum household income must be at or below 80% of Area Median Income;
5. Tenants served must be income-eligible and remain income-eligible while receiving TBRA ;
6. TBRA shall be for a maximum of six (6) months, contingent upon tenant(s) remaining eligible
and having an active lease; and
7. Rent must have been current as of February 2020.
The TBRA funds may cover the cost of:
• M o n th ly re n t;
• S e c u rity d e p o s it in c o n ju n c tio n w ith re n t a t th e sa m e a d d re s s ;
• U tility c o s t in c o n ju n c tio n w ith re n t a t th e s a m e a d d re s s ; a n d
• U tility d e p o s it in c o n ju n c tio n w ith re n t a t th e sa m e a d d re s s .
Ineligible Uses of TBRA Funds
The following situations are not eligible uses of TBRA funds:
1. Use of TBRA funds for utility or security deposit without rental assistance.
2. Payment of rental fees for a tenant that is also an owner of the housing unit.
3. Tenants receiving subsidy from public housing or Section 8 program.
4. TBRA funds cannot be used for overnight or temporary shelter for homeless persons.
5. TBRA funds cannot be used to reduce the tenant's rent payment to 30% of income. For
example, if the household is already receiving assistance under the Section 8 program,
the household may not also receive assistance under a HOME TBRA program.
Landlord Forms
Landlords must agree to the execution of a landlord participation agreement. If the landlord
terminates the lease with the tenant, the City will suspend all payments until a new lease is
executed.
Applicants can provide applications and documents on an appointment basis only. Electronic
submissions of supporting documents are acceptable, however, client consent and an
authorization to collect information must be signed in person to verify identity in conjunction with
government-issued identification and Social Security card.
Below is a summary of the funds available for rent assistance through HOME:
HOME FY 19 I $58,067.7 $90,369 Immediately
C7 D - Substantial
Amendment to the City's
Consolidated Plan & FY
2019 Action Plan
HOMEFY20 I $144,166 $220,000
After
October 1,
2020
C7 E - Adopt City's
One-Year Action Plan,
FY 2020/21 Federal
Funds
Total $310,369
Additional funds in excess of the original Action Plan recommendations were identified to fulfill
the request made to prioritize funds for households in need of rent assistance at the special
Commission meeting held on May 8.
State Housing Initiatives Partnership (SHIP)
The Florida Housing Finance Corporation (FHFC) has approved state entilement communities to
request waivers to reallocate existing funds to be utilized for rental and mortgage
assistance/foreclosure prevention to income-eligible households affected by COVID-19. On April
30" the FHFC approved the technical revision request to include emergency rent assistance as
part of the approved disaster strategy in the City's Local Housing Assistance Plan. The State
Housing Initiatives Program (SHIP) requires that a minimum of 30 percent of the funds must be
reserved for very-low income households (earning up to 50% of the area median income).
The City's allocation for FY 17 /18, FY 18/19 and FY 19/20 is currently committed to assisting nine
(9) income-eligible households with purchase assistance and homeowner rehabilitation in the
amount of $574,988.13. The committed funds are encumbered with households that are under a
sales contract for an eligible property and have submitted a good-faith deposit to secure the
tra n s a c tio n . T h e r e re m a in s $2 0 ,5 0 6 .5 4 th a t c a n b e c o m m itte d to re n t a n d m o rt g a g e a s s is ta n c e
f u n d s to in c o m e -e lig ib le h o u s e h o ld s .
O n M a y 7 , 2 0 2 0 , F lo r id a H o u s in g F in a n c e C o r p o r a tio n re le a s e d th e e s tim a te o f fu n d s a v a ila b le
fo r F Y 2 0 /2 1 . T h e e s tim a te d a llo c a tio n to th e C ity o f M ia m i B e a c h is $6 3 7 ,2 7 8 , c o n tin g e n t u p o n
th e G o v e rn o r 's a p p ro v a l. T h e A d m in is tra tio n p ro p o s e s to a ll o c a te a p p r o x im a te ly $4 7 7 ,9 5 8
to w a r d s e m e r g e n c y re n t a n d m o rt g a g e a s s is ta n c e a n d th e re m a in in g fu n d s fo r p u r c h a s e
a s s is ta n c e to s e rv e th o s e h o u s e h o ld s c u r re n tly a p p r o v e d fo r a s s is ta n c e b u t w h o h a v e b e e n
p la c e d o n a w a it lis t a s a re s u lt o f th e p a n d e m ic .
S H IP f u n d s m a y b e u s e d to p ro v id e u tili ty a n d re n ta l a s s is ta n c e fo r u p to th r e e (3 ) m o n th s to
in c o m e -e lig ib le h o u s e h o ld s . A ll a p p li c a n ts m u s t fo llo w in c o m e lim its a n d re n t lim its is s u e d b y
F H F C . In c o m e c e rt ifi c a tio n g u id e lin e s fo ll o w th e s a m e c r ite r ia a s H O M E a n d C D B G .
S u m m a ry o f F u n d s
CDBG-CV $214,635 [Immediately
CDBG FY2018 $3,600 [ Immediately
SHIP $20,506.54 I After October 1, 2020
HOME FY 2019 $90,369 [ Immediately
HOME FY 2020 $220,000 I After October 1, 2020
T o ta l $549,111.54