Item Coversheet

OLD BUSINESS  15.

COMMITTEE MEMORANDUM

TO: Public Safety and Neighborhood Quality of Life Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: March 22, 2023


SUBJECT:

DISCUSSION REGARDING CRITERIA TO INCLUDE IN THE INTERLOCAL AGREEMEBNT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI-DADE COUNTY HOMELESS TRUST IN ORDER TO MEASURE AND FAIRLY EVALUATE THE SUCCESS OF THE CITY’S RECENT INVESTMENT OF $1 MILLION FOR THE HOMELESS TRUST TO PURCHASE PROPERTY TO PROVIDE HOUSING ASSISTANCE TO HOMELESS PERSONS.


HISTORY:

On September 21, 2022, the City received a request from the Miami-Dade County Homeless Trust (“Homeless Trust”) for $3 million to scale housing needed to further combat homelessness in the City of Miami Beach and beyond. These funds, in conjunction with funding received from Miami-Dade County and other municipalities, would be utilized by the Homeless Trust to acquire and renovate no fewer than four (4) properties to better support individuals and households living on the streets or staying in temporary emergency shelters without viable permanent housing options.

 

At the September 30, 2022, Finance and Economic Resiliency Committee (FERC) meeting, representatives from the Homeless Trust presented their request for $3 million in funding. After extensive discussion, the FERC recommended initial funding of $1 million, comprised of approximately $277,912 in HOME Investment Partnership American Rescue Plan Program (HOME-ARP) funding received by the City from the U.S. Department of Housing and Urban Development (HUD) that remains unallocated, subject to HUD approval, and approximately $723,000 from projected FY 2022 year-end General Fund surplus, with the commitment to look for additional funds.

 

However, at the October 26, 2022, Commission meeting, the Mayor and City Commission approved the allocation of $1 million to the Homeless Trust solely from General Fund via Resolution No. 2022-32382.

 

On November 16, 2022, at the request of Commissioner Meiner, the City Commission referred an item to the Public Safety and Neighborhood Quality of Life Committee (PSNQLC) to discuss the criteria associated with the Interlocal Agreement (Memorandum of Understanding) with the Homeless Trust, including the timing for placements, the total number of placements, the duration of placements, and other factors that could serve as a basis for evaluating any future requests for additional funding from the Homeless Trust.

 

On December 14, 2022, at the request of Commissioner Fernandez, the City Commission referred an item to the FERC to discuss the performance benchmarks associated with the $1 million allocation to the Homeless Trust.

 

On February 1, 2023, at the request of Commissioner Richardson, the City Commission referred a discussion item to the FERC to discuss additional funding for the Homeless Trust.

 

On February 17, 2023, the FERC referred the Agreement to the full City Commission to identify and appropriate additional funding in the amount of $1 million.

 

The Administration is currently negotiating a Memorandum of Understanding (MOU) between the City and the County (Homeless Trust) to allocate the appropriated General Fund reserves of $1 million for a combination of forty-five (45) units and ten (10) beds to house City of Miami Beach homeless clients.  

ANALYSIS

 

Memorandum of Understanding 

The Office of Housing and Community Services will be responsible for administering the MOU and will work in partnership with the Homeless Trust to refer eligible clients (individuals and households) to the program. The attached draft MOU highlights the shared responsibilities between the City and the Homeless Trust to ensure successful outcomes. Once the MOU is fully negotiated, approved, and executed, the Administration will provide quarterly updates as part of the current PSNQLC standing bi-monthly update item regarding homeless services and activity.

 

The City’s allocation will be utilized for the rehabilitation of permanent supportive housing by the Homeless Trust. This funding provides a combination of forty-five (45) units and ten (10) beds available for the City to refer eligible homeless individuals identified by the City’s Homeless Outreach Services Program. Forty-five (45) single occupancy units will be available at Blue Village, located at 18055 SW 12th Street, Miami, FL 33194, and ten (10) beds for homeless persons 65 years and older at Mia Casa, located at 12221 Harriet Tubman Highway, North Miami, FL 33161.

 

As reported by the Homeless Trust, the County has owned the Blue Village property since 1989 but the facility has not been operational in recent times. The Homeless Trust indicated that on January 20, 2023, the Trust bought out a deed restriction on the property at the cost of approximately $4.59 million. The Homeless Trust competitively selected a design firm to renovate the facility from 112 beds to 190+ units and committed $6.5 million toward renovations. Per the Homeless Trust, design plans are being finalized and will be followed by renovations spanning approximately one (1) year.

 

The Homeless Trust also advised staff that on January 31, 2023, it finalized the purchase of Mia Casa for approximately $6.4 million, using County and State funding. The property is comprised of 120 beds.

 The following are reporting requirements:

  • Status report on Blue Village renovations up to and until a Temporary Certificate of Occupancy (TCO) is obtained (quarterly)
  • Total number set-aside beds/units in project(s) utilized by Miami Beach (annually)

 

The following are goals for clients placed but are not contractual obligations. 

 

  • Housing Retention: 90% or 50 clients will not return to homelessness after 1 year.
  • Income Growth: At least 20% or 10 persons placed in permanent housing will obtain or increase income as a result of program participation.

 

The above goals are aspirational and failure to meet any goal is not a breach of contract and may not be considered as such, nor shall failure to meet any of these goals be the basis for termination of the contract.

 

Below are the tentative terms of the MOU, still to be fully negotiated and finalized. The Housing Trust Board and any relevant Miami-Dade County committee will make a recommendation regarding the MOU and final approval of the MOU is subject to the City Commission and the Miami-Dade County Board of County Commissioners.

 

 MOU Terms

 

Recipient Name:

Miami-Dade County Homeless Trust

Award Amount:

$1,000,000 FY 2023 City of Miami Beach General Funds. Potential additional funding to be determined.

Reports Due:

Progress Reports: Due annually by December 31 of each year

Expenditure Deadline/ Payment Structure

The payment structure is still being negotiated:

  •  City proposed payment structure: 1/3 upon execution, 1/3 at groundbreaking, and the balance (1/3) at Certificate of Occupancy+ if additional funding beyond $1 million is approved by Commission, possible additional allocation upon Certificate of Occupancy.
  •  County proposed payment structure: 50% upon execution; 30% at groundbreaking; and 20% at Certificate of Occupancy structure.

Project:

45 units at Blue Village and 10 beds at Mia Casa available for referrals by the City of Miami Beach

Project Locations:

Blue Village, 18055 SW 12th Street, Miami, FL 33194

 

Mia Casa, 12221 Harriet Tubman Highway, North Miami, FL 33161

Service:

The funding will be used for the rehabilitation of units at Blue Village. 

Homeless Trust Deliverables:

 

  • Referrals: The Homeless Trust will provide access to 45 units at Blue Village and 10 beds at Mia Casa. The Trust will provide a yearly occupancy report on the Homeless Management Information System (HMIS).
  • Annual Report: Additionally, the Homeless Trust will include in the annual report the aspirational goals of income growth, and housing retention for the referrals provided.
  •  Although, these aspirational goals will be reported annually the income growth and housing retention will not have a default or payback provision associated.
  • Ongoing Costs: The Homeless Trust will bear all cost and expenses toward repairs, maintenance, and/or operations of the units/beds (facilities) post-renovation.

City of Miami Beach Deliverable:

  • Payment: The city to provide payment based on the agreed fee schedule following receipt of an invoice in a form acceptable to the City.
  • Referrals: The city is to provide referrals through the process highlighted in the MOU.

 

 Fiscal Impact: $1 million from General Fund Reserves. Potential for additional funds will be discussed at the March 27, 2023 Commission meeting. 

CONCLUSION:
The City is working collaboratively with the Homeless Trust to better support homeless households sleeping on the streets or staying in temporary emergency shelters without viable permanent housing options.  

Applicable Area

Not Applicable
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Mobility - Address homelessness.
ATTACHMENTS:
DescriptionType
Blue Village AbrogationMemo
Blue Village Abrogation AddendumMemo
Blue Village QCDMemo
Blue Village signed deedMemo
Draft MOU Homeless Trust Memo