Miami-Dade Legislative Item
File Number: 121692
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File Number: 121692 File Type: Resolution Status: Adopted
Version: 0 Reference: R-786-12 Control: Board of County Commissioners
File Name: MDC NEIGHBORHOOD STABILIZATION PROGRAM PLAN Introduced: 8/28/2012
Requester: Public Housing and Community Development Cost: Final Action: 10/2/2012
Agenda Date: 10/2/2012 Agenda Item Number: 8K2
Notes: Title: RESOLUTION APPROVING A SUBSTANTIAL AMENDMENT TO THE FY 2008 ACTION PLAN PREVIOUSLY APPROVED FOR THE NEIGHBORHOOD STABILIZATION PROGRAM TO RECAPTURE $1.8 MILLION FROM THE ADMINISTRATION AND PLANNING ACTIVITY AND REALLOCATE TO THE ACQUISITION AND REHABILITATION OF MULTI-FAMILY RESIDENTIAL PROPERTIES
Indexes: NEIGHBORHOOD STABILIZATION PROGRAM
Sponsors: Audrey M. Edmonson, Co-Prime Sponsor
  Sally A. Heyman, Co-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 10/2/2012 8K2 Adopted P

Economic Development & Social Services Committee 9/12/2012 3F Forwarded to BCC with a favorable recommendation P
REPORT: Assistant County Attorney Cynthia Johnson-Stacks read the foregoing proposed resolution into the record. Hearing no comments or questions, the Committee proceeded to vote on the foregoing proposed resolution, as presented.

County Attorney 8/31/2012 Assigned Brenda Kuhns Neuman 8/31/2012

County Mayor 8/30/2012 Assigned County Attorney 10/2/2012
REPORT: REVISED PHCD (ASST. COUNTY ATTY: BRENDA KUHNS NEUMAN) (EDSS 9/12/12) (BCC SPONSORS:VICE CHAIR EDMONSON AND CMSR HEYMAN (CO-PRIME SPONSORS))

County Mayor 8/29/2012 Assigned Russell Benford 8/29/2012
REPORT: Item returned to Deputy Mayor.

County Attorney 8/28/2012 Assigned County Mayor 8/28/2012
REPORT: returned

County Attorney 8/28/2012 Assigned Terrence A. Smith 8/28/2012
REPORT: returned

County Mayor 8/28/2012 Assigned County Attorney 10/2/2012
REPORT: PH&CD (public hearing) - Comm. Edmonson and Comm. Heyman Co-Prime Sponsor - pending cmte - Attachment: NSP Amendment

County Mayor 8/28/2012 Assigned Russell Benford 8/28/2012

Legislative Text


TITLE
RESOLUTION APPROVING A SUBSTANTIAL AMENDMENT TO THE FY 2008 ACTION PLAN PREVIOUSLY APPROVED FOR THE NEIGHBORHOOD STABILIZATION PROGRAM TO RECAPTURE $1.8 MILLION FROM THE ADMINISTRATION AND PLANNING ACTIVITY AND REALLOCATE TO THE ACQUISITION AND REHABILITATION OF MULTI-FAMILY RESIDENTIAL PROPERTIES

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves a Substantial Amendment to the 2008 Action Plan for the Neighborhood Stabilization Program in order to recapture $1.8 million from the administration and planning activity to be reallocated to be used for the acquisition and rehabilitation of multi-family residential properties; authorizes the submission to U.S. HUD of the Miami-Dade County Amended 2008 Action Plan as described herein; authorizes the County Mayor or County Mayor’s designee to give priority consideration to fulfill budgeted mandates; authorizes the County Mayor or County Mayor’s designee to award and distribute funds in accordance with the process set forth in Implementing Order 2-11; authorizes the County Mayor or Mayor’s designee to make non-substantive modifications to the Amended FY 2008 Action Plan and to execute contracts, amendments, and loan documents, including subordination agreements and modifications, necessary to fulfill the purposes set forth in this resolution and to comply with the NSP Program’s expenditure deadline and US HUD’s guidelines following approval by the County Attorney Office.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County CommissionersFrom: Carlos A. Gimenez
County Mayor

Subject: Resolution Authorizing an Amendment to Miami-Dade County’s Neighborhood Stabilization Program Plan

STAFF RECOMMENDATION
RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) approve the attached resolution amending the Miami-Dade County’s Neighborhood Stabilization Program Plan (“NSP Plan”) by reallocating $1.8 million from the Administration and Planning activity to the Acquisition and Rehabilitation of Multi-Family Residential Rental Properties activity. It is further recommended that the Board authorize the County Mayor or the County Mayor’s designee to submit the amended NSP Plan to the US Department of Housing and Urban Development (US HUD), for approval, as required by US HUD. The amended NSP Plan is in the form of a substantial amendment to Public Housing and Community Development’s (PHCD) Community Development Block Grant (CDBG) 2008 Action Plan.

SCOPE
The Neighborhood Stabilization Program requires grantees to give priority emphasis and consideration to low- and moderate-income areas, which are defined as: 1) areas where at least 51 percent of residents have incomes at or below 120 percent of the County’s area median family income (AMI) and 2) areas with the greatest need. The target areas were approved by the Board on November 20, 2008 and submitted to US HUD under the initial NSP Plan submittal. This item does not change the targeted areas as shown in the map labeled Figure A-8 which is included in the NSP Plan (Attachment 1).

The County’s Neighborhood Stabilization Program funds cannot, as a general rule, be used in other Community Development Block Grant (CDBG) entitlement cities (City of Miami, City of Miami Gardens, City of Hialeah, City of Homestead, City of North Miami, and City of Miami Beach) that are receiving a direct allocation. In order to use funds in other entitlement areas the County must demonstrate a benefit to its own entitlement area.

FISCAL IMPACT
Approval of this resolution will not create a fiscal impact to the County. The amendment seeks to redistribute $1.8 million of the $62.207 million grant received by Miami-Dade County under Title III of the Housing and Economic Recovery Act of 2008, among the existing categories approved by the Board. In addition, this item will ensure that the County meets Congress’ imposed funding expenditure deadline. Miami-Dade County has until March 6, 2013 to expend all funds on the Board-approved NSP-eligible activities. Funds not expended by the deadline will be recaptured by US HUD and returned to the US Treasury Department.

TRACK RECORD/MONITORING
PHCD, through its planners, specialists, and project managers, are monitoring the County’s Neighborhood Stabilization Program. In addition, Clarence Brown, PHCD Division Director will take the lead to ensure a successful completion and compliance with Federal guidelines and County policies. Miami-Dade County’s amended plan must be delivered to US HUD in a timely manner for consideration.

MANAGER'S BACKGROUND
BACKGROUND
On July 31, 2008, the Housing and Economic Recovery Act (HERA) of 2008 was enacted into law. Under HERA (Title III), the Neighborhood Stabilization Program directs $3.92 billion in grants to states and units of local government to address problems associated with concentrations of foreclosed, vacant and abandoned properties. US HUD was designated as the implementing agency and charged with allocating the appropriation according to “areas of greatest need” as specified in the Act. US HUD notified states and units of local governments of its allocation decisions and program guidelines on September 29, 2008.

Each state and unit of local government that received an allocation had to apply to US HUD to receive its grant and the application was in the form of a Substantial Amendment to its CDBG 2008 Action Plan. The County prepared its Plan in accordance with the US HUD program guidelines. On November 20, 2008, the Board approved the NSP Plan through Resolution No. R-1151-08. The grant agreement received by the County was effective March 10, 2009, after US HUD and the County signed.

The approved Neighborhood Stabilization Program activities encompass six strategies: (1) second mortgages, (2) acquisition of single-family homes and rehabilitation, (3) acquisition of multi-family properties and rehabilitation, (4) demolition, (5) redevelopment activity on the Housing Opportunities for People Everywhere (HOPE) VI project, and (6) redevelopment in the expanded HOPE VI area. The funds associated with these activities must be committed within 18 months and the funds must be spent in four (4) years from the effective date of March 10, 2009. This item recommends a redistribution of funding among two of the activities: 1) administration and planning, and 2) acquisition and rehabilitation of multi-family properties.

REASONS FOR RECAPTURE
The focus of the Neighborhood Stabilization Program is to fund projects that can be initiated quickly in order to help stimulate the economy and combat the foreclosure crisis; unfortunately, some of the activities funded through the NSP Plan have been difficult to implement. Since approval of the Plan, the Board has received monthly reports on the implementation of the program and has been advised as to the progress and difficulties.

ADMINISTRATION AND PLANNING
The County originally allocated $6.2 million for administration and planning. This represented the maximum allowed under the grant. In working with existing staff and consultants, administrative costs were kept lower than anticipated. Accordingly, it is recommended that $1.8 million be recaptured from the administration and planning activity. The recaptured funds will not affect the continued administration of the program through the remaining term.

REALLOCATION RECOMMENDATION
The total amount of Neighborhood Stabilization Program funds recommended for reallocation is $1.8 million. The entire $1.8 million is recommended for acquisition and rehabilitation of multi-family properties for affordable rentals. In the previous NSP Plan, staff recommended to the Evaluation Committee five (5) multi-family projects for acquisition and rehabilitation totaling $32.886 million in committed NSP funds. The consideration of this amendment (to the NSP Plan), will help expedite expenditures (prior to the March 2013 deadline, as mandated by US HUD) and produce the required number of affordable housing units. In accordance with Implementing Order 2-11, under the County Mayor’s purview only those projects that are recommended by staff and reviewed and approved by the Evaluation Committee will be funded.

Miami-Dade County’s amended plan must be delivered to US HUD timely for consideration. US HUD will review the plan and may require additional clarifying information or changes in the proposed eligible activities and funding levels. Upon US HUD’s acceptance of the County’s amended NSP Plan, the grant funds will be available to the County administration to reallocate. The table below reflects those projects that are recommended for reallocated funds.

Project Name
Address District Unit Count Amt Requested Amt. Funded Status/Comments
Hampton Village Apartments 3 100 $9,000,000 $2,592,985 * NSP3 funds2740 NW 43rd Terrace * Partially funded
Miami, FL (Unincorporated Dade) * Currently in underwriting

Harvard House/Tiffany Square 4 56 $2,239,082 $2,239,082 * NSP1 funds
2020 NE 169 Street * Fully funded
North Miami Beach, FL * Currently in underwriting
* Due to lack of funding, some rehab items
were removed from the original scope of work
* Additional funds needed to do the remaining
rehab items removed from the original scope of work

The following table illustrates the impact of the proposed recapture and reallocation of funds:

Approved Activity Previous Allocated Expended Recommended Recommended Funding Amount Reallocation Adjusted Award

A. Low- or no- interest second mortgages and closing cost assistance $750,000 $750,000 $0 $750,000
to income eligible buyers of foreclosed upon homes purchasing properties
located in Miami-Dade County’s areas of greatest need

B. Acquisition of single family residential properties that have been $8,085,000 $8,838,849 $0 $8,085,000
foreclosed for the purpose of rehabilitation and sale to income eligible
buyers.

C. Homebuyer counseling in connection to activities (A) and (B). $65,000 $65,000 $0 $65,000

D. Acquisition and rehab of multi-family residential properties to $32,886,480 $21,087,907 $1,800,000 $34,686,480
provide affordable rental housing.

E. Neighborhood redevelopment of affordable multi-family rental housing $8,600,000 $8,600,000 $0 $8,600,000
on vacant property HOPE VI.

F. Neighborhood redevelopment of affordable multi-family rental housing $5,000,000 $7,136 $0 $5,000,000
on vacant property HOPE VI Expanded Area.
G. Demolition of blighted structures to address public health and safety $600,000 $600,000 $0 $600,000problems in negatively impacted neighborhoods.
Fees for Administration $6,220,720 $3,300,030 ($1,800,000) $4,420,720

TOTAL $62,207,200 $43,248,922 $0 $62,207,200

In compliance with US HUD rules, the 15-day public comment period for this substantial amendment extends from Thursday, August 30, 2012 to Thursday, September 13, 2012.


Attachment

________________________________
Russell Benford, Deputy Mayor



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