A RESOLUTION OF THE MAYOR AND CITY COMMISSION AUTHORIZING THE CITY MANAGER TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR ELIGIBLE PUBLIC SERVICES, HOUSING, AND CAPITAL PROJECT ACTIVITIES TO BE FUNDED FROM THE CITY OF MIAMI BEACH FY 2019/2020 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS (HOME) ENTITLEMENT ALLOCATIONS FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD).

Adopt the Resolution.

BACKGROUND

The City is an entitlement community designated by the U.S. Department of Housing and Urban Development (HUD) and as determined by the decennial census information on population growth lag, age of housing stock, and poverty. As an entitlement community, the City receives an annual allocation of HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five-Year Consolidated Plan, which establishes the strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented and refined by the City’s annual submission of a One-Year Action Plan, which delineates the specific projects and activities funded by each year’s HUD allocation. Historically, the City’s CDBG funds have been used for public services, housing, and public facilities improvements; while HOME funds have been used for affordable rental housing and first-time homeownership.

The City’s annual HUD allocations fluctuate from year to year.  The chart below identifies the amount received for FY 2018 (October 1, 2018-September 30, 2019) for each program and projected amounts for FY 2019 (October 1, 2019-September 30, 2020):

The CDBG program supports programming that benefits low- to moderate- income persons through direct public services and capital improvements. The program has the following expenditure limitations:

• Administration Cap: 20% of award
• Public Services Cap: 15% of award (i.e. groceries for the elderly, youth services, rent assistance, homeless services, etc.)

The City currently funds a variety of Public Services including:

• Elder services and referral (UNIDAD of Miami Beach)
• Grocery delivery for elderly  and rent/utility assistance (Housing and Community Services)

• After school youth programming (Boys and Girls Club of Miami – Flamingo Park)

• Homeless transit pass program (Homeless Outreach Team)

Please note that CDBG funds for the City's grocery delivery program are leveraged with General Fund dollars to serve 96 elder and food insecure households with children in the City.

For the past two years, the City has prioritized CDBG capital funds to address significant needs in its residential portfolio acquired from Miami Beach Community Development Corporation (MBCDC). The City is currently rehabilitating the following City-owned residential properties.

• Lottie Apartments
• Neptune Apartments
• Madeleine Village Apartments (including the seawall)

The City has also applied for additional federal grants through the Federal Emergency Management Agency (FEMA) in hopes of obtaining the remaining capital funds needed to repair the Neptune Apartments. Should these funds not be awarded, the City may need to limit a portion of the FY 2019/20 federal HOME and CDBG allocations once again for use for City housing facilities.

The HOME program supports the creation and retention of affordable housing to benefit low-income persons. The program has the following expenditure limitations:

• Administration Cap – 10% of award
• Community Housing Development Organization (CHDO) Cap – 15% of award

CHDO’s are affordable housing development organizations that request certification from the City annually to become eligible to receive HOME funds for qualified affordable housing projects that serve households earning up to 80 percent of Area Median Income (AMI).

The following needs have been identified in the 2018-2022 Consolidated Plan:

* Affordable housing

* Economic support activities (assisting very low-, low- and moderate-income families)

* Youth programs

* Elder programs

* Public services

The Administration is seeking authorization to issue the attached Request for Proposals (RFP) to solicit eligible affordable housing, capital and public service projects within the City. The City will review RFP submissions to ensure that projects align with the identified needs and evaluate project feasibility and compliance with HUD rules and regulations.  The issuance of an RFP is one of the approved methods for funds distribution for these funds. The parameters for the City's use of HUD funds are established in the Citizen Participation Plan that was previously accepted by HUD

The City must submit its FY 2019 One-Year Action Plan for HUD’s approval by August 15, 2019. As such, it is necessary to begin the screening process for proposed activities. The process includes: release of the RFP; review by staff to determine complete/eligible RFP submissions; evaluation/scoring/recommendations by the Affordable Housing Advisory Committee (AHAC); review of AHAC recommendations with the Administration; 30-day Comment Period to receive public input; City Commission approval; and, finally, submission to HUD.

FY 2019 funding allocations have not been announced by HUD. However, based on the HUD-imposed timeline for preparation and submission of the Action Plan, the Administration recommends authorizing the City Manager to issue the attached Requests for Proposals (RFPs) for eligible activities to be funded from the City’s FY 2019 entitlement allocations from  HUD. Based on current projections, the RFPs will be issued with a 10% reduction from actual FY 2018 allocations. The RFPs will be issued with a qualification that the award of funds is subject to the City’s actual HUD funding award.

The release of this RFP is a critical piece to the planning process for the FY 2019 Action Plan. The Administration recommends approval of this item to ensure timely issuance and review of the RFP and responses and the required subsequent submission of the Action Plan to HUD.