Legislative Matter

Miami-Dade Legislative Item
File Number: 111562

Printable PDF Format

Clerk's Official Copy

File Number: 111562

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-749-11

Control: County Commission

File Name: GOB VILLA CAPRI ASSOCIATED, LTD

Introduced: 7/21/2011

Requester: NONE

Cost:

Final Action: 9/20/2011

Agenda Date: 9/20/2011

Agenda Item Number: 11A8

Notes:

Title:

RESOLUTION APPROVING AGREEMENTS RELATED TO GRANT IN AMOUNT OF $2,000,000 FOR DISTRICT 9 TO VILLA CAPRI ASSOCIATES, LTD. FOR DEVELOPMENT OF TWO-HUNDRED AND TWENTY AFFORDABLE RENTAL MID-RISE APARTMENT UNITS FROM BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM PROJECT NUMBER 249 – ''PRESERVATION OF AFFORDABLE HOUSING UNITS AND EXPANSION OF HOME OWNERSHIP''; AND PROVIDING THAT SUCH GRANT SHALL BE FUNDED OVER FORTY-FIVE MONTHS FROM NEXT BUILDING BETTER COMMUNITIES BOND SALE AS CASH FLOWS REQUIRE [SEE ORIGINAL ITEM UNDER FILE NO. 111457]

Indexes:

GENERAL OBLIGATION BOND PROGRAM

Sponsors:

Dennis C. Moss, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	9/20/2011	11A8	Adopted				P
REPORT:	Commissioner Bell expressed her support for the foregoing proposed resolution, and she commented that projects already started should be fully supported. Commissioner Heyman referenced a supplement item distributed at today’s meeting in connection with the foregoing resolution and quoted the last line of Paragraph Number 2 stating “to date the project had not been submitted for underwriting.” She said that the statement made the project seem like it was not shovel ready because it was not submitted to underwriting. Ms. Jennifer Moon, Budget Director of the Office of Management and Budget, advised that it was the contractor’s responsibility to submit the project for underwriting; and the subject project was excluded from the proposed budget for FY11/12 because it was deemed unnecessary to allocate funds upfront. She noted the County’s administration was aware the Board wished to discuss the timeline of projects relative to the Building Better Communities-Government Obligation Bonds (BBC-GOB) as previously discussed at the last Board and First Budget meetings. Ms. Moon indicated that a list of projects would be approved as part of the budget at the September 22, 2011, Board meeting; and thelist was prepared outlining the GOB projects and their timelines, as well as the projects affected by the millage rate reduction approved by the Board in previous years. Commissioner Heyman questioned the feasibility of the County providing assistance to contractors in terms of matching funds to expedite the underwriting process. Ms.Wendi Norris, Director of the General Services Administration (GSA), responded that the funding agreements were contingent on whether the project received a favorable recommendation in the underwriting process. Ms. Moon advised that, if the Board approved this resolution today, an adjustment to the budget would have to be made and submitted for approval at the September 22, 2011, Board meeting. Commissioner Heyman questioned if any other commissioner wished to protest the subject project not having been submitted to the underwriting process. In response to Commissioner Heyman’s inquiry regarding the status of the underwriting process for the subject project, Mayor Gimenez advised that the developer had to select an underwriting firm from the County’s pool of underwriters and pay for the services. Commissioner Heyman inquired whether it was premature for the Board to be considering the present item, as the project had not yet been underwritten. In connection with Commissioner Heyman’s inquiry, Deputy Mayor Edward Marquez responded the underwriting process of the project must be completed before the County approved bond financing. In response to Commissioner Moss’ inquiry as to whether all projects were subject to the same underwriting process, Ms. Norris responded that projects funded by the BBC-GOB Program, Project Number 249, were subject to the same underwriting procedures. Chairman Martinez noted the County’s administration failed to follow the appropriate agenda approval process before the foregoing resolution was placed on the agenda. Therefore, he had not approved the item to be placed on the agenda; and the supplemental item was not included in the agenda package. Commissioner Barreiro commented that he believed the underwriting process of housing projects began after the list of projects was approved by the Board. In response to Commissioner Moss’ inquiry, Mr. Lenny Wolfe, President of Cornerstone Group Inc., 2100 Hollywood Boulevard, Hollywood, Florida, noted the project was shovel ready and building permits would be available within 30 to 45 days after the financing of the project became available. He stated his firm was ready to sign an agreement with the County, and his firm was already engaged in the underwriting process with Seltzer Management Group at the state level for the Florida Housing projects for this community. He said that he was under the understanding that the County intended to benefit from the underwriting process for the Florida State Housing projects, and he also noted the project was ready for commencement with ongoing construction on the adjacent site. Ms. Norris clarified that, in the past, this Board had approved projects contingent upon favorable underwriting. Commissioner Moss stated that he submitted to all members of the Board an aerial photo of the project clearly showing it was shovel ready and that Phase III was already under construction. He noted this project created affordable housing, jobs, and economic development in this community in a socio-economically distressed area. Commissioner Moss asked the members of the Board to support the foregoing subject project. Assistant County Attorney Monica Rizzo corrected a scrivener’s error on handwritten page three (3) in the first Whereas clause to replace the dollar amount of $10,592,307 with the dollar amount of $2,000,000. There being no other comments from the members of the Board or the County administration, the Board proceeded to vote.

Board of County Commissioners	9/1/2011	11A10	Deferred		9/20/2011		P
REPORT:	Commissioner Bell expressed concern about the effect of the foregoing proposed resolution on future projects. Commisisoner Moss explained that the requested funding was for an affordable housing project in the Naranja community which was currently under construction. He noted the County Commission previously supported the FY2011-12 millage rate reduction to 0.285 and had not made project funding decisions. Ms. Jennifer Glazer-Moon, Budget Director, Office of Management and Budget, noted that the proposed FY2011-12 budget included a list of projects for funding and the proposed project would not be included, unless an offsetting project currently listed in the proposed budget was identified for delay. Commissioner Moss noted the Commission already approved the millage rate but not the Mayor’s proposed projects. He clarified that this affordable housing project was currently under construction and was not merely a proposed development. Mayor Gimenez said this project would increase the millage rate if it was added to the project list without removing another project. Commissioner Moss noted he did not believe a project would need to be eliminated since some projects that were already approved may not be ready to proceed or be funded at the proposed amount. He said the Mayor provided a proposal for the Commission to make its funding decisions. Mayor Gimenez noted that the Commission was only provided with a projected list which could be modified later. Chairman Martinez asked Ms. Glazer-Moon to submit to each County Commissioner a list of all General Obligation Bond projects approved under the 0.285 Debt Service Millage Rate before the September 20, 2011 Regular Board of County Comissioners Meeting. Chairman Martinez noted that although he supported the proposed resolution, he did not support increasing the debt millage rate. He requested the deferral of the item until the next County Commission meeting because he did not want to vote without an understanding of the impact of this proposal upon other projects. Commissioner Moss agreed to the deferral provided there was no impact on Villa Capri Associates, Ltd., the company building this project. In response to Chairman Martinez’ comment that a list of proposed projects was already available, Mayor Gimenez noted that an approved project lists was available under last years 0.44 millage rate as well as under the proposed 0.285 millage rate scenario. Ms. Glazer-Moon clarified that the project list was included in the proposed FY2011-12 budget and she would provided the Board with that project list. Commissioner Jordan noted a project list needed to be devleloped only after a systematic process was undertaken to address specific criteria and construction timelines, before this proposed resolution was considered. She noted that specific timelines were needed so that projects which could be undertaken sooner should receive funding first. Chairman Martinez noted a project list was needed in order to understand the stage of development the projects were in. Mayor Gimenez agreed to provide a list of criteria that included the anticipated project start date, operating expenses and whether or not the project had an economic development and enhancement component, as requested by Commissioner Jordan. Commissioner Moss noted the proposed resolution had no operating costs to the County because it was a private development and the criteria mentioned by Mayor Gimenez should have already been considered. Commissioner Barreiro inquired whether commercial financing had been reviewed, and if so, that information should also be reported to the Board. Hearing no further questions or comments, the Commission proceeded to vote on the foregoing proposed resolution as presented. Note: During consideration of the changes to today's (9/1) agenda, a scrivener’s error existing in the foregoing resolution was corrected as follows: On handwritten page 3 in the first “Whereas” clause should read “District 9 allocation of $2,000,000.00….” The foregoing proposed resolution was deferred to the September 20, 2011 County Commission Meeting.

County Mayor	8/31/2011		Scrivener's Errors		9/1/2011
REPORT:	On handwritten page 3 in the first Whereas, should read District 9 allocation of $2,000,000.00 …

County Attorney	7/21/2011		Assigned	Monica Rizo

Infrastructure and Land Use Committee	7/13/2011	2F Amended	Forwarded to BCC with a favorable recommendation with committee amendment(s)				P
REPORT:	Assistant County Attorney Geri Bonzon-Keenan read the foregoing proposed resolution into the record. Hearing no comments or questions, Committee members proceeded to vote on the foregoing resolution with Committee amendments read into the record earlier by Assistant County Attorney Bonzon-Keenan to: 1) add a new section as follows: “Pursuant to Resolution No. R-974-09, the Board directs the County Mayor and the County Mayor’s designee to record or cause to be recorded any instrument of conveyance accepted herein in the Public Records of Miami-Dade County Florida and to provide a recorded copy of the instrument to the Clerk of the Board within thirty (30) days of execution of said instrument; and directs the Clerk of the Board to attach and permanently store a recorded copy together with this resolution” as noted by Assistant County Attorney Geri Bonzon-Keenan; and 2) to correct a scrivener’s error on handwritten page 3 in the first “Whereas” clause to change the amount of $10,592,307 to $2 million, as noted by Assistant County Attorney Monica Rizo.

Legislative Text

TITLE
RESOLUTION APPROVING AGREEMENTS RELATED TO GRANT IN AMOUNT OF $2,000,000 FOR DISTRICT 9 TO VILLA CAPRI ASSOCIATES, LTD. FOR DEVELOPMENT OF TWO-HUNDRED AND TWENTY AFFORDABLE RENTAL MID-RISE APARTMENT UNITS FROM BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM PROJECT NUMBER 249 � �PRESERVATION OF AFFORDABLE HOUSING UNITS AND EXPANSION OF HOME OWNERSHIP�; AND PROVIDING THAT SUCH GRANT SHALL BE FUNDED OVER FORTY-FIVE MONTHS FROM NEXT BUILDING BETTER COMMUNITIES BOND SALE AS CASH FLOWS REQUIRE

BODY

WHEREAS, pursuant to Resolution No. R-53-11 adopted on February 1, 2011 (the �Allocation Resolution), this Board approved a District 9 allocation of $2,000,000.00 from Project No. 249��Preservation of Affordable Housing Units and Expansion of Home Ownership� of the Building Better Communities General Obligation Bond Program (the �BBC Program�) to the Villa Capri project to fund a portion of the construction and development of two-hundred and twenty (220) affordable rental mid-rise apartment units, located in the vicinity of 14500 SW 280 Street, Homestead (the �Villa Capri Project�), subject to Board approval of the necessary documents; and
WHEREAS, Villa Capri Associates, Ltd. will develop and construct the Villa Capri Project; and
WHEREAS, there is need to provide affordable multi-family housing in District 9 as soon as it is practicable; and
WHEREAS, the Villa Capri Project will fill that need since it will be ready to commence construction once the underwriting report is received by mid-August 2011 and the Plans and Specifications are completed; and
WHEREAS, the construction period is estimated to take no longer than twenty-four months; and
WHEREAS, there are no operating costs to the County associated with the Villa Capri Project since it will be owned and operated by the Developer; and
WHEREAS, it is anticipated that the County shall have sufficient Building Better Communities General Obligation Bond proceeds (the �Bond Proceeds�) available during the forty-five month period following the issuance of the next series of Building Better Communities General Obligation Bonds (the �Bonds�) which were sold in May of 2011 to complete the Villa Capri Project in accordance with its cash flow need; and
WHEREAS, this Board wishes to approve the necessary documents for the Villa Capri Project,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are incorporated in this Resolution and are approved.
Section 2. The Board approves the Development and Grant Agreement between the County and Villa Capri Associates, Ltd. in substantially the form attached as Exhibit �A� to this Resolution (the �Grant Agreement�) and the County Mayor or County Mayor�s designee is authorized to execute the Grant Agreement on behalf of the County, subject to the County receiving a favorable underwriting report and any adjustments that need to be made in Grant Agreement to reflect the findings of the report, after consultation with the Office of the County Attorney.
Section 3. The Board approves the Rental Regulatory Agreement to be delivered by the Developer and recorded in the public records in substantially the form attached as Exhibit �B� to this Resolution (the �Regulatory Agreement�) and the County Mayor or County Mayor�s designee is authorized to execute the Regulatory Agreement on behalf of the County with any revisions that may be necessary to assure the Project is affordable and to comply with the underwriting report after consultation with the Office of the County Attorney. Pursuant to the Regulatory Agreement, the Developer shall, among other provisions, develop two-hundred and twenty (220) affordable rental units to be leased to a mix of individuals and/or families with incomes equal to or less than (a) 33% of the area median income adjusted for family size established annually by the United States Department of Housing and Urban Development (the �Area Median Income�); (b) 50% of the Area Median Income; and (c) 60% of the Area Median Income. The initial rental rate, depending on number of units set aside for each income level, is anticipated to be between $374 and $675 per month for one bedroom units; between $443 and $775 per month for two bedroom units; and between $503 and $875 per month for three bedroom units.
Section 4. Any grant proceeds that are reimbursed to the County pursuant to the Grant Agreement or the Regulatory Agreement shall be used solely for affordable housing in District 9.
Section 5. The grant in the amount of $2,000,000 to Villa Capri Associates, Ltd. shall be funded from Bond Proceeds to meet cash flow needs over the forty-five month period following the issuance of the Bonds which occurred in May of 2011.
>>Section 6. Pursuant to Resolution No. R-974-09, the Board directs the County Mayor or the County Mayor�s designee to record or cause to be recorded any instrument of conveyance accepted herein in the Public Records of Miami-Dade County, Florida; and to provide a recorded copy of the instrument to the Clerk of the Board within thirty (30) days of execution of said instrument; and directs the Clerk of the Board to attach and permanently store a recorded copy together with this resolution.<< 1