NEW BUSINESS  6.

COMMITTEE MEMORANDUM

HISTORY:

At the January 16, 2019 City Commission meeting, County Commissioner Eileen Higgins had provided the Mayor and City Commission a report on the County's efforts to support its public housing projects during the partial federal government shutdown.

After this report, Commissioner John Aleman expressed her concern for the residents of Rebecca Towers in the event that the shutdown continued and how the lack of operating funds from HUD could impact tenants. Commissioner Aleman then made a referral to the Finance Committee that the City stay abreast of the situation with Rebecca Towers and its tenants so as to enable the City to take supportive action should the need arise.

ANALYSIS:

The federal government experienced a partial shutdown at midnight December 22, 2018 that impacted various federal agencies including the U.S. Department of Housing and Community Development (HUD). As a result of this shutdown, the renewal funding agreement for the operation of Rebecca Towers North, the City's sole public housing property, was unable to be executed. As a result of the shutdown, funding for this property's operation was in jeopardy.

On February 4, 2019, after the partial federal government shutdown ended, the Housing Authority of the City of Miami Beach (HACMB) executed and returned to HUD its renewal agreement for Rebecca Towers. The new concern is that a second shutdown is threatened if an appropriations bill is not passed by February 15th, the expiration date of the current funding agreement that was approved to end the 35-day partial shutdown.

Prior to the end of the December 22nd shutdown, the City had taken steps to provide temporary support to HACMB by deferring water and sewer utility fees. HACMB expends about $30,000 per month in these fees. The deferral of these fees would have enabled HACMB to divert these funds to continue operations of its properties including Rebecca Towers should the need arise.

CONCLUSION:
The City will continue to monitor federal actions as well as continue its communications with HACMB to proactively minimize any adverse impact by another federal government shutdown.