A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CITY'S ONE-YEAR ACTION PLAN FOR FEDERAL FUNDS FOR FY 2020, WHICH INCLUDES THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM; APPROVING AND ADOPTING THE ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE (Al) AS REQUIRED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); AND AUTHORIZING THE CITY MANAGER TO: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE ONE-YEAR ACTION PLAN TO HUD; (3) MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLAN, THE CONSOLIDATED FIVE-YEAR PLAN, AND THE RESULTING AGREEMENTS (WHICH DO NOT AFFECT THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLANS); (4) SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN; (5) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND (6) SUBMIT A LETTER TO HUD REQUESTING USE OF AVAILABLE WAIVERS; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS.

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 20:

Community Development Block Grant Funds

FY 2020 HUD Entitlement                                                                                             $959,218.00

Less administrative allowance (20%)                                     ($191,843.00)

Less Public Services allowance (15%)                                  ($143,882.00)

Net FY 2020 funds                                                                                                       $623,493.00

HOME Funds

FY 2020 HUD Entitlement                                                                                              $658,888.00

Less administrative allowance (25%)                                     ($164,722.00)

Net available for project allocation                                                                              $494,166.00

On January 27, 2020, the Administration issued two Request for Proposals (RFP) for CDBG and HOME funds, respectively. The submission deadline for both RFPs was February 26, 2020. 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, 2020 to review the RFP with prospective applicants.

The City received six applications from the following entities:

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

Ø  Housing Authority of the City of Miami Beach

Ø  RAIN Parents, Inc.

Ø  Miami Beach Community Development Corporation

Of the six submissions, two projects are being recommended for full funding because all criteria of the RFP were met and the proposed activities are viable and needed. The Housing Authority applied for funds to enable the speculative acquisition of an unidentified affordable property but the proposed amount ($500,000) does not appear realistic given Miami Beach property values and that its proposed leverage was only $300,000. Miami Beach Community Development Corporation submitted two applications to the CDBG RFP but did not provide sufficient information regarding its financial capacity or the ongoing viability of proposed activities.

A maximum of 15 percent of the City’s allocation, or $143,882.00, 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 eligible projects in addition to the City's grocery program as listed below.

The City continues to have unfunded capital needs for its own affordable housing properties. The Neptune Apartments, a 35-unit affordable housing property located at 1632 Meridian Avenue was acquired by the City in January 2015. The Neptune Apartments was previously awarded $1,113,572. However, this amount is insufficient as the total estimated project cost is $2,186,240. The CDBG funds requested will significantly decrease the funding gap and allow the City to continue with the needed repairs.

In addition, 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.

The Administration is requesting HOME funds be allocated to homebuyer assistance. This use will further leverage funds to increase the number of affordable owner-occupied housing units in the City. The balance of funds will be allocated to tenant-based rental assistance to help ameliorate financial hardship experienced by low-income residents because of a reduction or loss of income as a result of COVID-19:

Provisions in 24 CFR 92.207 and section 212(c) of the National Affordable Housing Act (NAHA), limit the amount of HOME funds that a jurisdiction may use for administrative and planning costs to 10 percent. These provisions have been suspended to enable jurisdictions to expend up to 25 percent of its FY 2019 and FY 2020 allocations for administrative and planning costs. The Administration will send a letter to HUD to request implementation of this waiver for FY 2020 to cover the increased cost of administering HOME-related activities to address the effects of COVID-19.

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. At this time, there is no such agency with this designation within the City.  The City released a Request for Letters of Intent (RFLI) for CHDO services on June 21, 2018. No responses were received. However, 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.

Analysis of Impediments

HUD requires that all entitlement jurisdictions receiving federal funds submit an Analysis of Impediments to Fair Housing Choice (AI) that identifies barriers to fair housing choice within the jurisdiction and the strategies employed by the jurisdiction to overcome these barriers.

In conjunction with Housing Opportunities Project for Excellence, Inc., the Office of Housing and Community Services drafted the attached AI identifying barriers to housing choice in our City and the various strategies that will be utilized to address the impediment identified. The AI will be referenced and adhered to by all housing services funded by the City utilizing federal funds.

Citizen Participation Plan

In accordance with the Citizen Participation Plan:

• The City advertised a Notice of Public hearing and Public 30-day Comment Period (March 2, 2020 – April 2, 2020) for community development needs and the Analysis of Impediments (AI). The public meeting was held on March 17, 2020.
• The City advertised a Notice of Public hearing and 30-day Public Comment Period (May 4, 2020 – June 3, 2020) for the draft Action Plan. The public hearing will be held telephonically during the Affordable Housing Advisory Committee (AHAC) meeting on May 19, 2020. Public comments received will be included in the submission of the action Plan to HUD for final review and approval.

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

The Administration recommends approval of the One-Year Action Plan for FY 2020 to allow the City to draw down 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 AI; authorizing the necessary certification by the City Manager; and authorizing submission of the AI to HUD.