The Administration recommends approving the Resolution.

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.

On April 10, 2020, HUD released a memo notifying the availability of waivers and suspensions for the HOME program requirements in response to the COVID-19 pandemic. The waivers include:

• Increased cap on program administration expenses from 10% to 25% for FY 2019 & FY 2020;

• Suspension of the 15% Community Housing Development Organization (CHDO) set-aside requirement for FYs 2017 through 2020;

• Waiver of the match requirement for funds in a Major Disaster area between 10/1/2019 and 9/30/2021;

• Self-certification of income is allowed, provided that on-site rent and income reviews are conducted within 90 days after the waiver period;

• Waiver of on-site inspection requirements;

• Eliminates the requirement to include an analysis of local market conditions before implementing a TBRA program;

• Allows the immediate provision of Tenant-Based Rental Assistance (TBRA) without assessing rent reasonableness;

• Permits payments up to 100% of rent, security deposit, and utilities until 12/31/2020;

• Suspends requirement to have written tenant selection criteria until 12/31/2020; and

• Extends the HOME 4-year project completion deadline.

The City sent notification to the local HUD field office on May 14, 2020, explaining the implementation of the following waivers:

• Increased cap on program administration expenses from 10% to 25% for FY 19 and FY 20;

• Suspension of the 15% Community Housing Development Organization (CHDO) set-aside requirement for FY 17-20;

• Waiver of the match requirement for funds in a Major Disaster area between 10/1/2019 and 09/30/2021;

• Self-certification of income provided that on-site rent and income reviews are conducted within 90 days after the waiver period; and

• Waiver of on-site inspection requirements.

HOME Recapture and Reallocation

In an effort to maximize relief to households in need of rental and utility assistance, the Administration identified additional funds to be utilized under the applicable waivers for FY 19 and FY 20. The Administration identified additional funds to be allocated to shovel-ready HOME FY 19 projects, in order to utilize those funds under the applicable HUD waivers.

On May 13, 2020, the Administration approved the FY 19 Action Plan, which included the reallocation of funds in excess of the 50% threshold from the Coral Apartments Project to fill the funding gap for the Madeleine Village Seawall.

The Administration recommends the reallocation of FY 19 funds from Madeleine Village Seawall and Corals Apartments to the TBRA Program, in order to utilize the applicable waivers for FY 19 and FY 20. These funds would be available immediately after the execution of intradepartmental agreements.

Citizen Participation

In accordance with 24 CFR 91.05(c)(2) and subpart B of the federal regulations, the following applicable waiver made available through the CARES Act will be enacted by the City relative to citizen participation compliance:

• The City advertised a Notice of a 5-day Public Comment Period (May 4, 2020 – May 8, 2020) for a Substantial Amendment to the 2018-2022 Consolidated Plan & FY 2019 Action Plan and Amendment to the Citizen Participation Plan. Public comments received will be included in the submission of the action Plan to HUD for final review and approval.

Local Housing Assistance Plan (LHAP) Amendment

The State Housing Initiatives Partnership Program (SHIP), administered through the Florida Housing Finance Corporation (FHFC), was established in 1992 by the William E. Sadowski Affordable Housing Act to stimulate the production of affordable housing statewide. SHIP Program funds are derived from documentary stamp levies on real estate transactions and held in the SHIP Program Trust Fund.  Annually, FHFC allocates SHIP program funds among participating jurisdictions on a formula basis.  SHIP program funds serve to increase access to affordable housing for income-eligible participants.   

Entitlement communities receiving SHIP funds are required to produce and file a Local Housing Assistance Plan (LHAP) which governs each community’s use of SHIP funds.  A new LHAP must be filed every three years. The LHAP delineates the strategies that will be employed to increase the availability of affordable housing for income-eligible residents within the jurisdiction. On December 12, 2018, the Mayor and City Commission approved the FY 19-22 LHAP and on August 5, 2019, the FHFC approved the LHAP in its final format. The FHFC requested for several edits to the LHAP before its approval, including merging certain strategies. On May 14, 2020, the Administration sought technical assistance from the Florida Housing Coalition, in order to implement a disaster strategy that can allow three months of rental assistance and utility assistance to financially burdened households. The City was informed that because the current LHAP does not include the rental assistance strategy, it must be amended before any funds can be utilized to assist households affected by the COVID-19 pandemic. This would allow the Administration to allocate any uncommitted funds immediately, in addition to future allocations that will be available after October 2020.

The Administration recommends approval of the recapture and reallocation of HOME funds, the amendment of the SHIP FY 19-22 LHAP and the revision of One-Year Action Plan for FY 19 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.