A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO PERFORM THE FOLLOWING ACTIONS: (1) TO RECAPTURE $152,840.27 OF HOME INVESTMENT PARTNERSHIP (HOME) FUNDS PREVIOUSLY ALLOCATED AS ENTITLEMENT FUNDS FOR FY 2014/2015 AND THE FIVE-YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND TO REALLOCATE SAID FUNDS FOR USE IN CONNECTION WITH THE FY 2019/2020 REQUEST FOR PROPOSALS (RFP) FOR CDBG AND HOME (THE RFP); (2) TO RECAPTURE $66,620.55 OF HOME FUNDS, PREVIOUSLY ALLOCATED AS COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) SET-ASIDE FUNDS FOR FY 2016/2017 AND THE FIVE-YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND TO REALLOCATE SAID FUNDS FOR USE IN CONNECTION WITH THE RFP; (3) TO RECAPTURE $120,206.91 OF HOME FUNDS, PREVIOUSLY ALLOCATED TO THE PURCHASE OF THE ALLEN APARTMENTS FOR FY 2015/2016 AND THE FIVE-YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND TO REALLOCATE SAID FUNDS FOR USE IN CONNECTION WITH THE RFP; (4) TO RECAPTURE $68,896.20 OF HOME FUNDS, PREVIOUSLY ALLOCATED AS COMMUNITY HOUSING DEVELOPMENT ORGANIZATION SET-ASIDE FUNDS FOR FY 2017/2018 AND THE FIVE-YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND TO REALLOCATE SAID FUNDS FOR USE IN CONNECTION WITH THE RFP; AND (5) TO RECAPTURE $16,155.76 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, PREVIOUSLY ALLOCATED TO PUBLIC SERVICES FOR FY 2017/2018 AND THE FIVE-YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND TO REALLOCATE SAID FUNDS FOR USE IN CONNECTION WITH THE RFP; AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE REVISED ACTION PLANS TO HUD; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS.

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 under HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five-YearConsolidated 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.

HUD further requires its entitlement jurisdictions to ensure that funded activities are carried out in the defined project scope and within the timeframe allowed. The City’s Action Plan is monitored throughout the year to ensure compliance with federal regulations and progress towards the National Objective, which requires providing persons of low- and moderate-incomes with decent housing, a suitable living environment and/or expanded economic opportunities.

From time-to-time, it is necessary for the City to process a “Substantial Amendment” to the Consolidated Plan or the annual Action Plans to allow for the funding of new activities, modification of existing activities, or other program administrative actions. The City is required by HUD [24 CFR 91.505 (b)] to identify the criteria to be used in determining if a proposed action will be considered a “substantial amendment”, as follows:

• Addition of a new activity or project not previously described in theConsolidated or Annual Action Plan;
• Deletion of an activity or project previously described in the Consolidated or Annual Action Plan;
• Change in the purpose, scope, location or beneficiaries of an activity or project previously described in the Consolidated or Annual Action Plan;
• Change in the use of funds from one eligible activity or project to another previously described in Consolidated or Annual Action Plan; and/or
• A cumulative change in the use of funds from an eligible activity to another eligible activity that decreases an activity’s funding by 10% or more or increases an activity’s funding by 10% or more during the fiscal year.
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Any proposed amendment that is considered a substantial amendment is subject to the Citizen Participation process; requires formal action by the City Commission; and requires approval by HUD. Furthermore, a thirty (30) day public notice is required to provide the opportunity for the public to review and comment on the proposed substantial amendments. The City will consider all comments or views received from the public concerning proposed substantial amendments in accordance with 24 CFR 91.105 (c) (3). A summary of these comments and views shall be attached to the substantial amendment submitted to HUD.

While the City has prioritized CDBG capital funds to address significant needs in its affordable housing portfolio, which was acquired from Miami Beach Community Development Corporation (MBCDC), the City will now seek eligible community projects for funding. The City issued a Request for Proposals (RFP) on January 27, 2019. The RFP prioritizes activities intended to address service needs delineated in the Consolidated Plan.Subsequently, and after recommendations by staff and the Affordable Housing Advisory Committee (AHAC) and approval by the City Commission, the City will prepare and submit to HUD the FY 19/20 Action Plan with its funding recommendations by August 15, 2019. 

The Administration has reconciled its CDBG and HOME funds in anticipation of preparing its FY 17/18 Consolidated Annual Performance and Evaluation Report (CAPER) as well as to ensure that all non-committed funds are properly committed and expended to comply with expenditure and timeliness rules.

The following actions are sought from the Mayor and Commission to ensure compliance with HUD rules and regulations:

1.  The City seeks to assign $152,840.27 of HOME Investment Partnership (HOME) funds previously allocated but not committed as entitlement funds in the FY 14/15 Action Plan and Five-Year Consolidated Plan for FY 2013-2017, but uncommitted to a capital project. These funds are in the City’s Line of Credit. The City seeks to reallocate said funds to the FY 19/20 Request for Proposals (RFP) for CDBG and HOME.

2. The HOME Program statute and program regulations require Participating Jurisdictions (PJ’s) to reserve and commit a minimum of 15 percent of its annual allocation to Community Housing Development Organizations (CHDO) within 24 months of receiving its HOME grant. HUD issued a flexibility waiver to PJ’s affected by Hurricanes Irma, Harvey and Maria in 2017. City staff requested an extension and waiver of CHDO set-aside funds for FY 16/17 and 17/18 on August 2018 that was approved by HUD’s Miami Field Office. The City would like to recapture $66,620.55 of HOME CHDO set-aside funds that had not been committed, pursuant to the FY 16/17 Action Plan and the Five-Year Consolidated Plan for FY 2013-2017; and $68,896.20 of CHDO set-aside funds also not committed, pursuant to the FY 17/18 Action Plan and Consolidated Plan for FY2013-2017; and reallocate said funds to the FY 19/20 Request for Proposals (RFP) for CDBG and HOME. Please note that these funds had previously been limited to CHDO agencies. Since the City does not have any certified CHDOs, it sought and received approval from HUD to convert these funds to entitlement use to ensure timely expenditure.

3. On September 17, 2014, the Mayor and Commission approved Resolution No. 2014-28756 to purchase several multi-family properties from Miami Beach Community Development Corporation (MBCDC), including the Allen Apartments. HOME funds were not utilized in the acquisition of the properties as initially planned. Therefore, the City seeks to recapture $120,206.91 of HOME funds and reallocate said funds to the FY 19/20 Request for Proposals (RFP) for CDBG and HOME.

4. The City awarded $94,304 in Community Development Block Grant (CDBG) funds to various public services pursuant to the FY 17/18 Action Plan and the Five-Year Consolidated Plan for FY 2013-2017, including: 1. Little Havana Activities and Nutritional Center’s Rainbow Intergenerational Care  which was awarded funds ($15,533) but subsequently declined the grant because of the amount of documentation required for compliance; and 2) the Office of Community Services’ Emergency Rent Assistance and Supplemental Grocery Program ($459.26) which did not fully expend awarded funds; and Homeless Services ($163.50) which did not fully expend awarded funds. The City seeks to recapture $16,155.76 of unexpended funds and reallocate these funds to the FY 19/20 Request for Proposals (RFP) for HOME and CDBG.

5. The City Manager seeks authorization to execute all necessary documents required by HUD for the commitment and expenditure of the funds delineating in the actions above.

The Administration recommends approval and authorization of the actions proposed above, the subsequent submission to HUD of amended multiple year Action Plans and multiple year Consolidated Plans as amended herein, and authorizing the City Manager to execute all required documents as delineated herein.

This item utilizes only CDBG and HOME funds.