Item Coversheet

Resolutions - C7  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:February  12, 2020
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO DISSOLVE THE CONDOMINIUM FORM OF OWNERSHIP FOR THE CITY OWNED PROPERTY, LOCATED AT 795 81ST STREET, A/K/A "THE CORALS CONDOMINIUM," WHICH PROPERTY IS COMPRISED OF FIVE (5) CONDOMINIUM UNITS, ALL OF WHICH WERE ACQUIRED BY THE CITY ON JULY 26, 2019 FOR USE AS AFFORDABLE HOUSING RENTAL UNITS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS TO ACCOMPLISH THE DISSOLUTION PROCESS.


RECOMMENDATION

Approve the resolution.

BACKGROUND/HISTORY

The City's Comprehensive Plan, amended via Ordinance 2017-4147, established the goal of creating and maintaining 6,300 affordable housing units to serve low- and moderate-income and special needs households within its boundaries. While the City added 363 units to its affordable housing stock from 2000 – 2011, the strengthening of the City's real estate market coupled with the sharp reduction in housing funds from the state and federal government curtailed this growth and no new City-sponsored units have been added since 2011.

An opportunity to add to the City's affordable housing stock materialized as a result of the City's resolution of past compliance issues with the U. S. Department of Housing and Urban Development (HUD). On July 2, 2018, the City Commission approved Resolution No. 2018-30374. This action appropriated $1,079,000 from the General Fund to be used for the repayment of HUD grant funds from the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) to comply with the decision of the Office of the Inspector General Audit and as recommended by Letter to Commission (580-2017) on December 5, 2017.

On June 26, 2019, the City Commission approved Resolution No. 2019-30868, authorizing the purchase agreement of a five (5) unit multifamily property known as “The Corals Condominium,” located at 795 81st street, Miami Beach, FL 33141, for the purchase price of $1,050,000, from the seller 81st Street Investment, LLC (the “Seller”).


ANALYSIS

The Corals Condominium Association, Inc. was created August 7, 2006 and, as of 2019, the Board of Directors were comprised of a sole owner. The City inquired with the State and the title company associated with this transaction to verify the purchase was compliant with Florida Statute. A buyer approval and estoppel letter were provided by the Seller on July 19, 2019 during the closing.  

 

The City subsequently allocated FY 18/19 HOME funds in the amount of $271,000 and CDBG funds in the amount of $379,881.89 for the capital repairs and relocation of tenants in connection with the rehabilitation of the property. The repairs identified in the property include but are not limited to: roof replacement, landscaping, installing central HVAC units, replacement of windows, new appliances, restoring flooring as needed, bathroom renovations and kitchen renovations, to harden the infrastructure and enhance the resiliency of the property. The City would also like to rename the property Biscayne Beach House.

 

Because the property is intended for affordable housing rental for the affordability period of thirty (30) years and federal funds are intended for the restoration and repair of the common areas, the condominium structure is not applicable to this City asset. The City would like to dissolve the association structure and condominium ownership in order to maintain the property as affordable rental housing in compliance with the Consolidated Plan.


FINANCIAL INFORMATION

Expenditures are tied to federal CDBG and HOME funds and will not impact General Fund.


CONCLUSION

The Administration recommends the dissolution of Corals Condominium Association, Inc. and the dissolution of the condominium form of ownership for the City-owned property located at 795 81st street.


Applicable Area

Not Applicable
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
No No 
Legislative Tracking
Housing and Community Services

ATTACHMENTS:
Description
Resolution