Item Coversheet

Resolutions - C7  H




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:January  15, 2020
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR ELIGIBLE PUBLIC SERVICES, AFFORDABLE HOUSING AND CAPITAL PROJECT ACTIVITIES, TO BE FUNDED FROM THE CITY OF MIAMI BEACH FY 20/21 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS (HOME) ENTITLEMENT ALLOCATIONS FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), IN ACCORDANCE WITH THE PRIORITIES DELINEATED IN THE 2018-2022 CONSOLIDATED PLAN.


RECOMMENDATION

Adopt the Resolution.

BACKGROUND/HISTORY

The City is an entitlement community designated by the U.S. Department of Housing and Urban Development (HUD) and as determined by the decennial census information on population growth lag, age of housing stock, and poverty. As an entitlement community, the City receives an annual allocation of HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five-Year Consolidated Plan, which establishes the strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented and refined by the City’s annual submission of a One-Year Action Plan, which delineates the specific projects and activities funded by each year’s HUD allocation. Historically, the City’s CDBG funds have been used for public services, housing, and public facilities improvements; while HOME funds have been used for affordable rental housing and first-time homeownership.

ANALYSIS

The City’s annual HUD allocations fluctuate from year to year. The chart below identifies the amount received for FY 2019 (October 1, 2019-September 30, 2020 and projected amounts for FY 2020 (October 1, 2020-September 30, 2021) for the CDBG and HOME programs:

 

 

FY 2020

 

FY 2019

(Projected)

CDBG

$916,981

$825,283

HOME

$587,853

$529,067

 

The CDBG program supports programming that benefits low- to moderate- income persons through direct public services and capital improvements. The program has the following expenditure limitations:

·  Administration Cap: 20% of award

·  Public Services Cap: 15% of award (i.e. groceries for the elderly, youth services, rent assistance, homeless services, etc.)

The City currently funds a variety of Public Services including:

·  Elder services and referral (UNIDAD of Miami Beach)

·  Grocery delivery for elderly and rent/utility assistance (Housing and Community Services)

·  After school youth programming (Boys and Girls Club of Miami – Flamingo Park)

·  Youth Leadership Program (Police Athletic League- Flamingo Park)

For the past two years, the City has prioritized CDBG capital funds to address significant needs in its residential portfolio acquired from Miami Beach Community Development Corporation (MBCDC) and awarded the Housing Authority of the City of Miami Beach with rehabilitation funds in FY 19/20. The City is currently funding the following affordable capital projects:

·  Lottie Apartments rehabilitation

·  Neptune Apartments rehabilitation

·  Madeleine Village Apartments (including the seawall) rehabilitation

·  Biscayne Beach House rehabilitation

·  Rebecca Towers generator replacement, 200 Alton Road

The HOME program supports the creation and retention of affordable housing to benefit low-income persons. The program has the following expenditure limitations:

·  Administration Cap – 10% of award

·  Community Housing Development Organization (CHDO) Cap – 15% of award.

CHDO’s are affordable housing development organizations that request certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that serve households earning up to 80 percent of Area Median Income (AMI). At least fifteen (15) percent of HOME funds must be set aside for specific activities to be undertaken by a CHDO. However, HUD issued a temporary suspension of the CHDO reservation through December 31, 2021. The set-aside CHDO funds for FY 20/21 will be allocated to the RFP award to an agency with a viable project aligned with the City's Consolidated Plan.

The following needs have been identified in the 2018-2022 Consolidated Plan:

* Affordable housing

* Economic support activities (assisting very low-, low- and moderate-income families)

* Youth programs

* Elder programs

* Public services

The Administration is seeking authorization to issue the attached Request for Proposals (RFP) to solicit eligible affordable housing, capital and public service projects within the City. The City will review RFP submissions to ensure that projects align with the identified needs and evaluate project feasibility and compliance with HUD rules and regulations. The issuance of an RFP is one of the approved methods for funds distribution for these funds. The parameters for the City's use of HUD funds are established in the Citizen Participation Plan that was previously accepted by HUD.

The City must submit its FY 2019 One-Year Action Plan for HUD’s approval by August 15, 2020. As such, it is necessary to begin the screening process for proposed activities. The process includes: release of the RFP; review by staff to determine complete/eligible RFP submissions; evaluation/scoring/recommendations by the Affordable Housing Advisory Committee (AHAC); review of AHAC recommendations with the Administration; 30-day Comment Period to receive public input; City Commission approval; and, finally, submission to HUD.

HUD has not awarded FY 2020 funding allocations. However, based on the HUD-imposed timeline for preparation and submission of the Action Plan, the Administration recommends authorizing the City Manager to issue the attached Requests for Proposals (RFPs) for eligible activities to be funded from the City’s FY 2020 entitlement allocations from HUD. Based on current projections, the RFPs will be issued with a 10% reduction from actual FY 2019 allocations. The RFPs will be issued with a qualification that the award of funds is subject to the City’s actual HUD funding award.


FINANCIAL INFORMATION

Funds are provided through the City's allocation of HOME and CDBG funds.

CONCLUSION

The release of this RFP is a critical piece to the planning process for the FY 2020 Action Plan. The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP  responses to ensure compliance with HUD deadlines.


Applicable Area

Citywide
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Mobility - Support affordable, compatible workforce housing.
Legislative Tracking
Housing and Community Services

ATTACHMENTS:
Description
CDBG RFP
HOME RFP
Resolution