A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO ACCEPT $247,500 IN CORONAVIRUS RELIEF FUNDS FROM THE FLORIDA HOUSING FINANCE CORPORATION TO ASSIST HOUSEHOLDS IMPACTED BY COVID-19; AND FURTHER AUTHORIZE THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A SUBRECIPIENT AGREEMENT AND ANY OTHER DOCUMENTS OR AGREEMENTS RELATED TO THE ADMINISTRATION AND DISTRIBUTION OF THESE FUNDS.

The Administration recommends approving the Resolution.

The City has been providing emergency rent assistance for eligible residents who have been adversely impacted by COVID-19 resulting in rent arrears and the risk of homelessness. The City is using a variety of federal funds to provide this assistance including Community Development Block Grant (CDBG), CARES funding (CDBG-CV), and HOME Investment Partnership (HOME). The households assisted through these funds must be United States citizens or permanent residents earning no more than 80 percent Area Median Income (AMI) for CDBG programs and 60 percent AMI for HOME programs. As of June 30, 2020, the City has funded 199 applications with $420,490.45 in rent and utility assistance.

As of July 23, 2020, the City established two tranches of rent and utility assistance:

The Administration recommends accepting the recommendation of the FERC to appropriate and authorize an initial $330,000 for a third tranche to support rent, mortgage and utility assistance programs, which will be administered by Miami-Dade County’s HAND program. There is a separate item appropriating these funds on the agenda.

The State of Florida was awarded funds pursuant to, section 60(d) of the Social Security Act, as amended by section 5001 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A portion of the State’s CARES Act funds allocation, designated as Coronavirus Relief Funds (“CRF Funds”), will be distributed by the Florida Housing Finance Corporation (FHFC) to eligible communities receiving State Housing Initiative Partnership (SHIP) Program funds. The City is an entitlement community. CRF funds can be awarded to households earning up to 120 percent AMI who have been adversely affected by the COVID-19 pandemic. These funds can be used for a variety of eligible activities including:

• Rental assistance (including ren arrears, deposits and utility payments);

• Mortgage payments (including principal and interest, insurance and homeowner association fees). Real Estate taxes paid to a government entity are not an eligible expense;

• Emergency housing repairs related to COVID-19;

• Assistance to homeowners to pay insurance deductibles;

• Housing re-entry assistance such as security deposits, utility deposits and temporary storage of household furnishings; and

• Homeownership counseling.

  
  

  Up to ten percent of the funds can be utilized for administrative expenses. The City must advertise the availability of funds for ten days prior the opening of the application period in both a newspaper of general circulation and, where available periodicals serving racially, ethnically and income diverse neighborhoods. All CARES Act funds distributed via HOME, SHIP, CDBG-CV and CDBG, must be expended by December 30, 2020.

  
  

The Administration recommends using these funds to continue to serve those residents who are in arrears for their rent as well as homeowners who may be behind on their mortgage or maintenance/HOA fees. In order to ensure compliance with funding guidelines, the following criteria must be met by those seeking these funds:

Program Eligibility Criteria

1. Applicants must have US Citizenship or permanent residency as demonstrated by birth certificate, naturalization certificate or valid (current) permanent residency card;

2. Qualifying utility costs to be paid may include: electricity, water and gas;

3. Program funds are only available to renters or homeowners that live or plan to relocate within City limits and must have valid Florida ID with the address of the assisted property;

4. Maximum household income must be at or below 120% of Area Median Income; 

5. Applicant(s) must be certified by staff as income eligible and remain income eligible while receiving assistance;

6. Financial assistance shall be for a maximum of three (3) months, contingent upon applicant(s) becoming current on the expense once assistance is provided;

7. Rent/ mortgage must have been current as of March 12, 2020; and 

8. Applicants cannot receive funds from another non-profit or governmental jurisdiction whose funds came from a federal source (Applicants will be required to execute a Non-Duplication of Benefits Affidavit).

At a minimum, an application for program assistance should contain the following items for each household member:

• The number of people residing in the household including name, age, relationship to head of household, current address and home phone number;
• Name and address of employer(s), work phone number(s), position title and number of years on job with the current employer;
• Sources of annual income, including earned, unearned and asset income, and a statement signed by all of the adults who reside in the household consenting to the disclosure of information for the purpose of verifying income and assets in order to determine income eligibility for program assistance;
• A signed statement indicating that the applicant understands that all information provided is subject to Florida’s public records laws; and
• A statement that it is a first-degree misdemeanor to falsify information for the purpose of obtaining assistance.

Funds awarded by FHFC must be maintained in a separate bank account for the duration of the period of assistance. The City must provide Florida Housing with monthly reports beginning on October 1, 2020 and a closeout report by February 15, 2021. These funds must include the current status and progress of expenditures. Quarterly reports are due to FHFC no later than 15 days after the end of each quarter. The first quarterly report due is due for the quarter ending September 30, 2020.

The Administration recommends that the CRF funds be disseminated as a fourth tranche of assistance to renters and homeowners via a lottery process. Our recommendation is to open enrollment for a period of five (5) days followed by a randomized lottery that will determine the order applicants are subsequently served.

A separate account must be created for the use of these funds.

The Administration recommends accepting the award in the amount of $247,500 in Coronavirus Relief Funds from the Florida Housing Finance Corporation to assist households impacted by COVID-19 and to execute the required Subrecipient Agreement. Furthermore, the Administration will proceed with required advertisements and ensure compliance with the screening of eligible applicants.