The Administration recommends approving the Resolution.

The Five-Year Consolidated Plan is a federal requirement for all U.S. Department of Housing and Urban Development (HUD) entitlement cities.  The City of Miami Beach is a HUD-designated entitlement city as determined by the decennial census information on population growth lag, over-crowding, age of housing stock, and poverty.  The City of Miami Beach has been a Community Development Block Grant (CDBG) entitlement community since 1975.  The HOME Program was started in 1992 to provide funding specifically for affordable housing.

As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD’s grant programs.  HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City’s Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD.

The following are the projected allocations for FY 21/22:

Community Development Block Grant Funds

FY 2021 HUD Entitlement                                                                                             $991,531.00

Less administrative allowance (20%)                                     ($198,306.00)

Less Public Services allowance (15%)                                  ($148,729.00)

Net FY 2021 funds                                                                                                       $644,496.00

HOME Funds

FY 2021 HUD Entitlement                                                                                              $619,533.00

Less administrative allowance (10%)                                     ($61,953.00)

Less CHDO Operating Assistance (5%)                                ($30,796.00)

Net available for project allocation                                                                              $526,784.00

On March 1, 2021, the Administration issued two Request for Proposals (RFP) for CDBG and HOME funds, respectively. The submission deadline for both RFPs was March 31, 2021. To ensure clarification and proactively address questions relating to the completion and submission of the application, a mandatory pre-submission meeting was held on March 9, 2021 to review the RFP with prospective applicants.

The City received five applications from the following entities:

Ø  Police Athletic League

Ø  UNIDAD of Miami Beach

Ø  Boys and Girls Club of Miami Dade

Ø  Housing Authority of the City of Miami Beach

Ø  Miami Beach Community Development Corporation (MBCDC)

Of the five submissions, three (3) projects are being recommended for full funding having met the RFP criteria and because the proposed activities are viable and consistent with the City’s Consolidated Plan: Police Athletic League, UNIDAD of Miami Beach and the Housing Authority of the City of Miami Beach.

The application from the Boys & Girls Club was disqualified because the agency failed to attend the mandatory pre-submission workshop. The application submitted by Miami Beach Community Development Corporation for the rehabilitation of the Shelbourne Apartments was also denied funding for substantial omissions of information. The application did not provide sufficient information regarding the project’s financial capacity or the ongoing viability of proposed activities and whether the current contract with HUD allowed for additional liens on this property. The City is required to lien assisted properties for the period of affordability.  On April 8, 2021, City staff offered application reviews for all applicants to provide an opportunity to address review questions. MBCDC did not avail itself of this opportunity and the application items needing clarification were not addressed.

CDBG 2021 Funding

A maximum of 15 percent of the City’s allocation, or $148,729.00, may fund public service activities. Public service activities include meals programs, rent assistance, childcare programs, etc., for income-eligible participants. The City is recommending full funding of the projects as listed below.

Below is a breakdown of the FY 21/22 CDBG projects:

The high cost of housing and low, area prevailing employment wages combine to create a financial vise on families living in the City resulting in more than half of our low- to moderate-income residents being cost burdened. The entire country has been financially impacted by the coronavirus pandemic, likely significantly adding to the number of cost burdened households. Further, an article in The Miami Herald published on May 28, 2021, listed the sale of 30 residential buildings in in the City with planned renovations which will likely result in higher rents. According to the article, current rates range from $900 per month for a 290-square-foot studio to about $2,000 per month for a 1,000-square-foot two-bedroom, two-bathroom unit. This acquisition will result in a loss of these naturally occurring affordable housing (NOAH) units.

In addition to the funding recommendations above, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.) for the provision of HUD-mandated fair housing services in the amount of $20,000. HOPE, Inc. would continue providing housing education workshops to residents and participate in outreach events citywide. Program administration funds will fund this mandated service. Although not currently funded by the City, HOPE, Inc. also investigates allegations of Fair Housing Act violations on behalf of residents who believe they are victims of discrimination.

HOME 2021 Funding

No applications were received for HOME funds during the RFP process. As such, the Administration is requesting HOME funds be allocated to homebuyer assistance and homeowner rehabilitation. This use will further leverage funds to increase the number of affordable owner-occupied housing units in the City while promoting homeownership among workforce personnel who would otherwise be priced out of the market.

Below is a breakdown of the FY 21/22 HOME projects:

The HOME Program rules require each entitlement community reserve a minimum of 15% of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO).  A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable housing as its primary mission and has the capacity to develop affordable housing. A CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity and experience. Please note that, on March 7, 2019, HUD sent notice that the Consolidated Appropriations Act of 2019 includes a provision suspending the 24-month commitment requirement for the CHDO set-aside funds through December 31, 2021.

HOME funds may be used to provide special assistance to CHDOs. Up to five percent of HOME funds may be used to provide general operating assistance to CHDOs. The City has not awarded CHDO set-aside funds to a certified non-profit since its award to Carrfour Supportive Housing, Inc. in 2016.

Below is a summary of each project recommended for HOME funding:

Citizen Participation Plan Amendment

The Citizen Participation Plan is a required component of the City’s management of federal funds and stipulates how the residents participate in the decision-making process for the use of said funds. The Administration is recommending amendments to the Plan to:

• Reflect changes to the Affordable Housing Advisory Committee, in accordance with Ordinance 2020-4355;
• Establish a definition and specific criteria for a substantial amendment including defining a minimum financial threshold of $100,000 in funding changes as the trigger for a substantial amendment to the Consolidated Plan and Action Plan; and
• Enable grammatical edits to provide ease of understanding within the Plan.

Funds are transferred to the City by HUD after October 1, 2021.

The Administration recommends approval of the One-Year Action Plan for FY21/22 to allow the City to draw entitlement funds to assist income-eligible persons with services and housing, and to ensure the timely and compliant expenditure of HUD funds.

The Administration further recommends approval of the amended Citizen Participation Plan.