Item Coversheet

Resolutions - C7  I




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Raul J. Aguila, Interim City Manager 
DATE:February  10, 2021
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR FY 2021 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND FOR FY 2021 HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS, TO FUND ELIGIBLE PUBLIC SERVICES, AFFORDABLE HOUSING ACTIVITIES, AND CAPITAL IMPROVEMENT PROJECTS FROM THESE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ENTITLEMENT ALLOCATIONS, IN ACCORDANCE WITH THE PRIORITIES DELINEATED IN THE 2018-2022 CONSOLIDATED PLAN. 

RECOMMENDATION

The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP responses to ensure compliance with HUD deadlines.

BACKGROUND/HISTORY

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.

ANALYSIS

The City’s annual HUD allocations fluctuate from year to year. HUD has not yet released award amounts for the FY 2021 (October 1, 2021-September 30, 2022) CDBG and HOME programs. Therefore, as in prior years, the City will base projections on the amount received for FY 2020 (October 1, 2020 - September 30, 2021) and can adjust once HUD releases actual award amounts:

 

 

FY 2020

CDBG

$959,072

HOME

$658,774

 

 

 

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 and Planning cap: 20% of award
  • Public Services Cap: 15% of award (public services programming assisting low- to moderate-income residents such as groceries for the elderly, youth services, rent assistance, homeless services, etc.)

 

The City has funded a variety of Public Services with CDBG funding in the past including:

 

  • Elder services and community referral information (UNIDAD of Miami Beach)
  • Grocery delivery for the elderly (Housing and Community Services)
  • Rent/utility assistance as a homelessness prevention strategy (Housing and Community Services)
  • After school and summer camp youth programming (Boys and Girls Club of Miami – Flamingo Park)
  • Youth Leadership Program (Police Athletic League- Flamingo Park)
  • Childcare services (Little Havana Activities & Nutrition Center and Raindrop Child Care)

 

For the past several years, the City has prioritized CDBG and HOME funds to address significant capital needs in its residential portfolio that were acquired from Miami Beach Community Development Corporation (MBCDC) with extensive repair needs. The City has also awarded the Housing Authority of the City of Miami Beach with rehabilitation funds beginning in FY 2019. The City is currently funding the following affordable capital projects:

  • Lottie Apartments Rehabilitation
  • Neptune Apartments Rehabilitation
  • Madeleine Village Apartments (including the seawall) rehabilitation
  • Coral Apartment Rehabilitation
  • Rebecca Towers generator replacement

 

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). At least fifteen (15) percent of HOME funds must be set aside for specific activities to be undertaken by a CHDO. However, HUD issued a temporary suspension of the CHDO reservation through December 31, 2021. The set-aside CHDO funds for FY 2021 will be allocated to the RFP award to an agency with a viable project aligned with the City's Consolidated Plan.

 

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 a 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 table below delineates the estimated funding available for this RFP from the CDBG program. Funds will be set-aside for the Elderly Grocery Program administered by the Office of Housing and Community Services. This program has been funded by CDBG since 2015 with additional leverage funding provided through the City’s General Funds. The program assisted 113 elderly Miami Beach residents with monthly grocery delivery services in the 2019/20 program year. This is a program in high demand, particularly during the coronavirus pandemic, helping the elderly practice social distancing. Funds will also be set-aside for a targeted initiative to prepare low-income households, including those residing in City-owned affordable properties, to increase household income and become homeowners. This Prosperity Initiative will reinforce the City’s resilience goals while seeking to seek greater usage of affordable units as a means of providing affordable housing to more net households. This initiative will work with Miami Beach low- to moderate-income residents to provide guidance and support services to promote financial independence including access to entitlements, job improvement (training and reducing underemployment), increasing credit worthiness and preparing eligible applicants for the City’s First-time Homeowner Program.

CDBG Funds (estimated)

CDBG Entitlement

$959,072.00

City Administration (20%)

$191,814.00

Public Services Cap (15%)

$143,860.00

PS Set-Aside for Elderly Grocery Program

$40,000.00

PS Set-Aside for Prosperity Program

$40,000.00

Public Services Funds Available

$63,860.00

Funding Available for other projects

$623,398.00

The table below delineates the estimated funding available for this RFP from the HOME program.

HOME Funds (estimated)

HOME Entitlement

$658,888.00

City Administration (10%)

$65,888.00

Funding Available

$593,000.00

On December 14, 2020, the City entered into an agreement with Benevate Inc. dba Neighborly Software for a comprehensive software to improve administrative efficiency in managing the CDBG and HOME programs. The department is currently in the implementation process for the software. The attached RFPs proposals will be submitted electronically via Neighborly to reduce paper and facilitate submission.

The City must submit its FY 2021 One-Year Action Plan for HUD’s approval by August 15, 2021. 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);
  •  30-day Comment Period to receive public input; City Commission approval; and, 
  • finally, submission to HUD.

HUD has not provided notification of the amount of FY 2021 funding allocations. 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 2021 entitlement allocations from HUD. The RFPs will be issued with a qualification that the award of funds is subject to the City’s actual HUD funding award.

SUPPORTING SURVEY DATA

Results from the 2019 Resident Survey show that 79.3% of residents reported that they are satisfied with the City as a place to live.

The CDBG and HOME programs provide investment in the community supporting local programs and development, thus contributing to a positive perception of the City as a great place to live.

FINANCIAL INFORMATION

CDBG and HOME program funds will be used for awarded proposals. 

CONCLUSION

The release of this RFP is a critical piece to the planning process for the FY 2021 Action Plan. The Administration recommends approval of this item to ensure timely issuance and subsequent review of the RFP responses to ensure compliance with HUD deadlines.

Applicable Area

Citywide
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

Organizational Innovation - Implement City Commission goals and policies through the strategic plan and budget.
Legislative Tracking
Housing and Community Services

ATTACHMENTS:
Description
HOME RFP 2021
Resolution