Adopt 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 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. HUD allocates these funds to strengthen public/private partnerships and expand the supply of affordable housing that is decent, safe and sanitary.

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.

CDBG funds have been primarily used to provide vital public services, housing activities and improvements to public facilities while HOME funds are primarily used for affordable rental housing activities.

Fiscal Year 2019 Annual Allocation

Community Development Block Grant Funds

FY 2019 HUD Entitlement                                                                                                      $916,981        

Less administrative allowance (20%)                                     ($183,396.20)

Less Public Services allowance (15%)                                  ($137,547.15)

Net FY 2019 funds                                                                                                       $596,037.65

HOME Funds

FY2019 HUD Entitlement                                                                                                       $587,853

Less administrative allowance (10%)                                     ($58,785.30)

Less 15% CHDO project set-aside                                         ($88,177.95)

Net available for project allocation                                                                              $440,889.75

On January 28, 2019, the Administration issued two Request For Proposals (RFP) for CDBG and HOME funds, respectively. The submission deadline for both RFPs was February 27, 2019. To ensure clarification and proactively address questions relating to the completion and submission of the application, a mandatory pre-submission meeting was held on February 4, 2019 to review the RFP with prospective applicants.

Staff reviewed the applications and forwarded its funding recommendations to the Affordable Housing Advisory Committee (AHAC) for comment and recommendation on March 19, 2019. The AHAC subsequently forwarded its recommendations to the City Manager who finalized the recommendations as noted below.

In accordance with the Citizen Participation Plan:

• The City advertised a Notice of Public hearing and Public 30-day Comment Period (April 8, 2019 – May 7, 2019) for community development needs. The public meeting was held on April 23, 2019.

• The City advertised a Notice of Public hearing and 30-day Public Comment Period (May 8, 2019 – June 7, 2019) for the draft Action Plan and Substantial Amendment. The public meeting will be held on May 23, 2019.

The City received six applications from the following entities:

• Ayuda, Inc.

• Boys and Girls Clubs of Miami-Dade, Inc.

• Housing Authority of the City of Miami Beach

• Miami Beach Police Athletic League

• UNIDAD of Miami Beach, Inc.

Of the six submissions, five projects are being recommended for full funding as illustrated below. The ineligible project, submitted by AYUDA, Inc., requested funding for a visitor's center, an activity not eligible for CDBG or HOME funding. The City is recommending full funding of the remaining eligible projects in addition to the City's grocery program serving elderly and low-income households.

A maximum of 15 percent of the City’s allocation, or $137,547.15, may fund public service activities. Public service activities include meals programs, rent assistance, child care programs, etc., for income-eligible participants. The following four (4) public service activities are recommended for full funding:

CDBG FY 2019 funds were set aside for the City’s grocery assistance program via Resolution 2019-30700. The following unspent CDBG FY 2017 Public Service funds will be reallocated to the grocery program:

In addition, two (2) applications were received for CDBG-funded capital projects from the Housing Authority of the City of Miami Beach (HACMB). Although the HACMB requested CDBG funds, we are recommending funding its rehabilitation project with HOME funds as the project more closely aligns to the City's Consolidated Plan and housing goals. CDBG will fund the generator replacement project proposed by HACMB.

The applications received for Capital Projects are not sufficient to expend all of the available funds; $338,240.95 in CDBG will be pending allocation to eligible project(s). Please note that the Administration believes that rehabilitation costs for the building that is currently being sought for acquisition wit the $1,079,000 repayment to HUD will exceed currently available funds earmarked for this project. Therefore, the Administration believes that currently unallocated CDBG funds in the amount of $338,240.95 may be needed to ensure that the acquired building can be properly rehabilitated.

In addition, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.) for the provision of HUD-mandated fair housing services. HOPE, Inc. would continue providing housing education workshops to residents and participate in outreach events citywide. HOPE, Inc. will also provide services to assist the City in complying with HUD-mandated Affirmatively Furthering Fair Housing (AFFH) and Analysis of Impediments (AI) requirements.  Administration funds will fund this mandated service. Although not currently funded by the City for investigatory services, HOPE, Inc. also investigates allegations of Fair Housing Act violations on behalf of residents who believe they are victims of discrimination.

The HACMB project to rehabilitate 841 80^th St. in teh amount of $300,000 will be funded from prior year HOME funds recaptured via Resolution 2019-30700 as listed below:

The HOME applications received for Capital Projects were not sufficient to expend all of the available funds. The City is evaluating the potential rehabilitation needs of the building yet to be acquired and may, if HOME subsidy limits allow, submit a request for the use of these funds after acquisition and if allowed.

The Administration recommends approval of the One-Year Action Plan for FY 2019 to allow the City to draw down entitlement funds to assist income-eligible persons with services and housing, and ensure the timely and compliant expenditure of HUD funds.

The Administration further recommends approval of the proposed reallocation of funds, and the subsequent submission to HUD of the amended multiple year Action Plans and Consolidated Plan as amended herein, and authorizing the City Manager to execute all required documents herein.