| | | | | | | |  | Resolutions - C7 J
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | June 28, 2023 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIVE-YEAR (FY 2023-2027) CONSOLIDATED PLAN AND ONE-YEAR ACTION PLAN FOR FISCAL YEAR 2023 FOR FEDERAL FUNDS, WHICH INCLUDE THE BUDGETS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, IN THE AMOUNT OF $935,181.00, AND THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM, IN THE AMOUNT OF $671,958.00; AND AUTHORIZING THE CITY MANAGER TO: (1) ALLOCATE CDBG FUNDING TO THE FOLLOWING PROGRAMS: (I) $14,000.00 TO UNIDAD OF MIAMI BEACH PROJECT LINK; (II) $35,000.00 TO BOYS AND GIRLS CLUBS OF MIAMI-DADE; (Ill) $21,638.00 TO AYUDA - HERE FOR YOU PROGRAM; (IV) $14,440.00 TO UNIDAD SENIOR RECREATION AND LANGUAGE PROGRAM; (V) $25,200.00 TO FRIENDSHIP CIRCLE; (VI) $30,000.00 TO OCS GROCERY PROGRAM; (VII) $607,866.00 TO AN AFFORDABLE HOUSING REHABILITATION PROJECT AND/OR ACQUISITION; AND (VIII) $187,037.00 FOR PROGRAM ADMINISTRATION; (2) ALLOCATE HOME FUNDING TO THE FOLLOWING (I) $503,970.00 TO VISTA BREEZE, LTD. RELATED TO THE CONSTRUCTION OF AN AFFORDABLE HOUSING PROJECT; (11) $100,793.00 TO A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO); AND (Ill) $67,195.00 FOR PROGRAM ADMINISTRATION; (3) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (4) SUBMIT THE FIVE-YEAR (FY 2023-2027) CONSOLIDATED PLAN AND THE ONE-YEAR ACTION PLAN TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); (5) MAKE MINOR NON-SUBSTANTIAL CHANGES TO THE ONE-YEAR ACTION PLAN OR THE FIVE-YEAR CONSOLIDATED PLAN, OR THE RESULTING AGREEMENTS (WHICH DO NOT ALTER THE PURPOSE, SCOPE, APPROVED BUDGET AND/OR INTENT OF THE PLANS); AND (6) EXTEND THE EXPIRATION DATES OF SAID AGREEMENTS WHEN NECESSARY; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AGREEMENTS WITH SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS AND CITY INTERDEPARTMENTAL AGREEMENTS. |
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| | | | | | | | RECOMMENDATION
| The Administration recommends adopting the Resolution. |
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| | | | | | | | BACKGROUND/HISTORY
| The City of Miami Beach (the "City") is a U.S. Department of Housing and Urban Development (HUD) designated entitlement city as determined by the decennial census information on population growth lag, overcrowding, age of housing stock, and poverty. The City has been an entitlement city since 1975. As an entitlement city, Miami Beach qualifies for an annual allocation of federal funding under HUD's grant programs, including the HOME Investment Partnership (HOME) Program and the Community Development Block Grant (CDBG) Program.
Five-Year Consolidated Plan
The Five-Year Consolidated Plan and Annual Action Plan (Plans) are a federal requirement for all HUD entitlement communities. The proposed Five-Year Consolidated Plan describes how the City intends to use HOME and CDBG funds for the term of the Plan. The Action Plan is a component of the Consolidated Plan and provides a concise summary of the actions, activities, and programs that will take place during the program year to address the priority needs and goals identified in the Consolidated Plan. The City has contracted with WFN Consulting for the production of these planning documents, which serve as the application for funding for the HOME and CDBG programs that serve low-income individuals and/or families. This document must be submitted to HUD by August 15, 2023, using HUD's Integrated Disbursement Information System (IDIS). |
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| | | | | | | | ANALYSIS
| During the development of the Consolidated Plan, several priority needs were identified. Guidelines for addressing these priority needs over the 2023-2027 timeframe are summarized below:
o Housing Affordability - Acquisition & Rental Rehabilitation
o Housing Affordability – Tenant-Based Rental Assistance
o Housing Affordability – New Construction
o Housing Affordability – Homebuyer Ownership Assistance
- Increase the Capacity of Public Services
o Youth Services
o Homelessness Services
o Senior Services
o Disability Programs
o General Services Programs
- Public Facility & Infrastructure Improvements
o Neighborhood Revitalization
o Neighborhood Resilience
o Job Training and Business Support
Summary of citizen participation process and consultation process
The City held three (3) Needs Assessment meetings to obtain input from the public regarding housing and other community needs in the City of Miami Beach. The Administration advertised these meetings through the City's social media and community newsletters.
The meetings were held at the following locations and times:
- Miami Beach Botanical Garden on Wednesday, February 8, 2023, at 2:00 PM
- North Shore Park and Youth Center on Wednesday, February 8, 2023, at 6:00 PM
- Police Athletic League Gym on Thursday, February 9, 2023, at 6:00 PM
Another public hearing was held on April 18, 2023, at the Affordable Housing Advisory Committee (AHAC) meeting with a 30-day public comment period (April 3, 2023 – May 2, 2023) for community development needs. No comments were received.
Three (3) public hearings were held to obtain feedback on the draft plan with a 30-day public comment period (May 22, 2023 – June 21, 2023). All comments received at these hearings will be incorporated into the final Plan.
- North Shore Park and Youth Center on Tuesday, June 6, 2023, at 6:00 PM
- Miami Beach Botanical Garden on Wednesday, June 7, at 2:00 PM
- Police Athletic League Gym on Thursday, June 8, 2023, at 6:00 PM
Public comments received will be included in the submission of the Action Plan to HUD for final review and approval.
FY 2023 Request for Applications
On February 23, 2023, the Administration issued a Request for Applications (RFA) for CDBG, HOME, and HOME-ARP funds approved via Resolution 2023-32497. The submission deadline was March 23, 2023. A pre-submission meeting was held on March 8, 2023, to review the RFA with prospective applicants, ensure clarification, and proactively address questions relating to the completion and submission of the application. There were six (6) attendees at the pre-submission meeting.
CDBG FY 2023 Funds
Total HUD Entitlement $935,181.00
Less administrative allowance (20%) ($187,037.00)
Less Public Services allowance (15%) ($140,278.00)
Net available for project allocation $607,866.00
HOME FY 2023 Funds
Total HUD Entitlement $671,958.00
Less administrative allowance (10%) ($67,195.00)
Community Housing Development Organization Set-Aside (15%) ($100,793.00)
Net available for project allocation $503,970.00
HOME-ARP Unallocated Funds
Supportive Services $165,643.00
Set-aside for Rental Application Fee Program administered by the City ($50,000.00)
Supportive Services Funds Available $115,643.00
Non-Profit Capacity Building Funding Available $112,269.35
Net available for project allocation $227,912.35
CDBG 2023 Funding
A maximum of 15 percent of the City's allocation, or $140,278.00, may fund public service activities. Public Service activities include meal programs, rent assistance, childcare programs, etc., for income-eligible participants. Public Service funds in the amount of $30,000 were appropriated for the Elderly Grocery Program via Resolution 2023-32497. This program is administered by the Office of Housing and Community Services and has been funded by CDBG since 2015 and leveraged with additional funding provided through the City's General Funds. The program assisted 105 elderly Miami Beach residents with monthly grocery delivery services during the 2021/22 program year. The City received five (5) applications for public services and one (1) application for an affordable housing project.
Below is a summary of the CDBG projects:
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UNIDAD of Miami Beach - Project Link
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The program ensures that elderly residents are connected to needed services by providing appropriate information and referrals. Services consist of needs assessments, information/referral to a network of human services providers, and case management. The application proposes an increase in service from 180 to 200 beneficiaries and an increase in funding from $12,000 to $14,000 from the prior year.
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Boys and Girls Club of Miami-Dade – Project Learn and Great Futures for Teens
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The programs offer a safe, structured environment with evidence-based activities for children and youth from kindergarten through twelfth grade. The activities include Science, Technology, Engineering, and Math (STEM), literacy, homework assistance, music, arts & crafts, physical fitness, intramural sports, family engagement, enrichment activities, health education, mentoring and college readiness, employability skills, and college visits for older teens. The funding request is for $35,000, the same amount as the prior year.
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Ayuda - Here for You Program
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The program provides a homemaker and a counselor for the frail elderly. This is a new funding request for $43,636.00 to increase the hours of the homemaker and counselor so that clients are visited every week (instead of every other week), allowing for a more thorough cleaning of their apartments and additional companionship by the counselor. The program serves twenty (20) elderly residents.
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UNIDAD of Miami Beach – Recreation and Language Services
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The program will provide additional recreation and language services for North Beach Senior Center seniors. This is a new funding request for $25,000 and proposes to serve 125 seniors.
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Friendship Circle – Sunday Circle
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The program provides social interaction and respite to participants with supervised and supported activities. The purpose is to help individuals with disabilities gain independence and learn about friendship in the "real" world. The program is open to any person with special needs in the Miami Beach community, ages five and up. This is a new funding request for $50,400 and proposes to serve 40 clients.
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CMB Office of Housing and Community Services (OCS) - Grocery Assistance Program
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The program provides monthly grocery deliveries to elderly residents. General Funds are leveraged to ensure 96 elderly resident households receive pantry essentials and suitable nutritional support critical for a positive quality of life. $40,000 in Public Services funds were set aside via Resolution 2023-32497, of which $10,000 are unexpended Public Service funds from the prior year. During the last funding cycle, $40,000 was also set aside for the program. However, the program received an additional $24,899.63 from unexpended Public Services funds, for a total of $64,899.63.
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Housing Authority of the City of Miami Beach (HACMB) – Lois Apartments
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The application requests $611,933.00 in CDBG funds for exterior concrete repairs at the Lois Apartments at 211 Collins Avenue. The property is owned and managed by the Housing Authority. The Lois Apartments, built in 1925, provide 16 units of affordable housing for families (12 one-bedroom units and 4 two-bedroom units) in the South Beach neighborhood. The total project budget is estimated at $1 million. The Housing Authority proposes using funding from its budget for the balance.
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There is $110,278 available for FY 2023 Public Services, and the applications for Public Services total $168,036.00. Nonetheless, the Administration proposes to fully fund repeat applications, which are established projects and consistently expend funding, and to fund new applications at a portion of the requested funding.
Currently, the Administration is not recommending funding the application submitted by the HACMB for the Lois Apartments. This rehabilitation project can easily take longer than a year to complete considering the time needed for design plans, contractor procurement, permitting, and construction. Cities that receive CDBG must use their funds in a timely manner. The City's next CDBG timely performance test will be August 2, 2023. For example, the City must spend $538,749.00 to meet the 1.5 ratio by July 27, 2023, to comply with HUD rules. Therefore, the City must select projects for award that can be completed quickly to ensure compliance with this requirement.
The Administration is recommending deferral of the $607,866.00 in CDBG funds for future award to a shovel-ready project addressing Housing Affordability. The Administration will thoroughly analyze alternative funding sources available to fund the HACMB project and alternative projects to spend the CDBG funds quickly.
Below are the recommendations for the CDBG Program:
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Project
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Proposed Funding
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% of Requested Funding
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Requested Funding
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Public Services (15% Cap - $140,278)
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UNIDAD of Miami Beach – Project Link
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$14,000.00
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100%
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$14,000.00
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Boys & Girls Clubs of Miami-Dade
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$35,000.00
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100%
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$35,000.00
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AYUDA, Inc
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$21,638.00
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50%
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$43,636.00
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UNIDAD Senior Recreation and Language Programming
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$14,440.00
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58%
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$25,000.00
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Friendship Circle
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$25,200.00
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50%
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$50,400.00
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OCS Grocery Program
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$30,000.00
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Affordable Housing $607,866
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Affordable Housing Rehabilitation and/or Acquisition
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$607,866.00
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HOME 2023 Funding
One application was received for HOME funds during the RFA process:
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Atlantic Pacific Communities – Vista Breeze
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Atlantic Pacific Communities submitted an application requesting $608,538.00 in HOME funds for the Vista Breeze project gap funding. This is a joint project with the Housing Authority of the City of Miami Beach.
Vista Breeze is a new construction affordable housing development comprised of 119 units in two buildings on Normandy Isles in Miami Beach. The first building, located at 165-185 S Shore Dr, will consist of 49 studio apartments in a 4-story building on a vacant parcel of land that abuts Normandy Shores Golf Club. The second building, located at 280-300 S Shore Dr, will consist of 70 studio apartments in a 4-story building on a vacant lot on the Normandy Waterway. The project budget is currently $54,295,118.00. They have secured $47,736,580.00 in funding and are awaiting award recommendations for Miami-Dade County Surtax loan for $ 5,950,000.00. The City has also allocated $500,000 in FY 22 funds to reconstruct the seawall.
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The HOME Program rules require each entitlement community to reserve a minimum of 15% of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO). A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable housing as its primary mission and can develop affordable housing. In addition, a CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity, and experience.
Below are the recommendations for the HOME Program:
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Proposed Funding
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Beneficiaries
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Affordable Housing
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Atlantic Pacific Communities - Vista Breeze
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$503,970.00
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119
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CHDO Set-Aside (15% - $100,793)
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Community Housing Development Organization Set-Aside
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$100,793.00
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HOME-ARP Funding
No applications were received for HOME-ARP funding for this RFA.
At its May 24, 2023 meeting, the Finance and Economic Resiliency Committee (FERC) recommended the City Commission allocate $50,000 of HOME-ARP funds to the rental application fee reimbursement pilot program that can reimburse application fee costs incurred by Miami Beach households at or below 80% AMI. A separate item seeking approval to allocate funds for the pilot program will be considered by the Mayor and City Commission.
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| | | | | | | | SUPPORTING SURVEY DATA
| The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City’s 2019 Strategic Plan Through the Lens of Resilience. The City’s 2040 Comprehensive Plan prioritizes affordable housing, with the express goal “to encourage redevelopment that provides workforce and affordable housing” within the City.” |
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| | | | | | | | FINANCIAL INFORMATION
| Expenditures are tied to federal CDBG and HOME funds and will not impact the general fund. |
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| | | | | | | | | Amount(s)/Account(s): | HOME: $671,958
CDBG: $935,181 |
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| | | | | | | | CONCLUSION
| The Administration recommends that the Mayor and City Commission approve the attached resolution adopting the Five-Year Consolidated Plan for FY 2023 – 2027 and One-Year Action Plan for FY 2023, in substantial form, to allow the City to draw down entitlement funds to assist income-eligible persons with services and housing, and ensure the timely and compliant expenditure of HUD funds. |
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| | | | | | | | | 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 | |
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| | | | | | | | Strategic Connection
| | Mobility - Support affordable, compatible workforce housing. |
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| | | | | | | | Legislative Tracking
Housing and Community Services |
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