Legislative Matter

Miami-Dade Legislative Item
File Number: 172837

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Clerk's Official Copy

File Number: 172837

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-63-18

Control: Board of County Commissioners

File Name: AFFORDABLE HOUSING TRUST FUND

Introduced: 12/8/2017

Requester: NONE

Cost:

Final Action: 1/23/2018

Agenda Date: 1/23/2018

Agenda Item Number: 11A13

Notes:

SUB TO 172758

Title:

RESOLUTION DIRECTING THE COUNTY MAYOR OR THE COUNTY MAYOR’S DESIGNEE TO PERFORM A ONE-TIME TRANSFER OF THE FULL BALANCE CURRENTLY IN THE AFFORDABLE HOUSING TRUST FUND TO THE AFFORDABLE HOUSING TRUST FUND’S REVOLVING LOAN FUND WHILE RETAINING ALL PRIOR RESTRICTIONS AND CONDITIONS ON THE TRANSFERRED FUNDS [SEE ORIGINAL ITEM UNDER FILE NO. 172837]

Indexes:

AFFORDABLE HOUSING

Sponsors:	Barbara J. Jordan, Prime Sponsor
	Daniella Levine Cava, Co-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	1/23/2018	11A13	Adopted				P

Housing and Social Services Committee	12/11/2017	2B Substitute	Forwarded to BCC with a favorable recommendation				P
REPORT:	Assistant County Attorney Terrence Smith read the title of the foregoing proposed resolution into the record. Vice Chairman Suarez opened the floor to any person wanting to speak on this matter and the following person appeared before the HSSC to speak in support of this item: - Ms. Sabrina Velarde, 140 West Flagler, Miami representing Miami Homes for All Commissioner Jordan noted as prime sponsor and lead in creating the Affordable Housing Trust Fund (AHTF) that it had currently accumulated some resources, which the HSSC created the Revolving Loan Fund (RLF); however, it did not generate the $10 million as requested, but she hoped it would overtime. She also noted, in order for the Revolving Loan Fund to be implemented, there was need to hire an Administrator in an attempt to attract additional funds; however, the reason she agreed to allow the AHTF to be transferred was for leveraging purposes because the increased monies would potentially attract private donors and other entities to contribute. Commissioner Jordan stressed the need of ensuring the integrity of the Trust Fund’s purpose and guidelines associated with the AHTF would remain and be based on its original intent; therefore, the structure of two different programs in operation would include RLF and the AHTF, but the funds would be used to market other investors. Commissioner Levine Cava commended the leadership of Commissioner Jordan in this project. In response to a series of questions posed by Vice Chairman Suarez regarding the proposed and approved County Budget fiscal year (FY) 2017-2018 which totaled $45.523 million and whether it included the AHTF funds, Mr. Michael Liu, Director of Public Housing and Community Development (PHCD) noted this total did not include the AHTF and explained the total amount in the AHTF was approximately $4 million, of which $1.8 million was the existing base; and there were two recent deposits of approximately $1.7 and $2.1 million, respectively. Vice Chairman Suarez noted he hoped the County was already networking with the City of Miami, who recently passed a General Obligation Bond that included $100 million for Affordable Housing, to determine how to bring more leverage to this project. He commented on the potential sale or availability of the Fire Academy which would result in free land, waiver of parking requirements, elimination of insurance requirements, and nonprofits could build affordable housing units for homeownership at $70,000 per unit as previously implemented. Vice Chairman Suarez spoke of past projects in Melrose and East Little Havana and hoped these types of projects would be re-created. It was moved by Commissioner Jordan that the foregoing proposed resolution be forwarded. This motion was seconded by Commissioner Levine Cava, followed by further discussion. In closing Commissioner Jordan noted the existing dollars being transferred over from the AHTF was approximately $3.8 million to be teamed up with the $387 million, which would total over $4 million to be used for leveraging. She reiterated the integrity of each program would remain intact and new revenue would help build the Revolving Loan Fund and be utilized by the discretion of the Board of County Commission based on the greater need. Commissioner Jordan pointed out on Monday, December 4, 2017, an additional $2.1 million was received for a development in District 1 and added to AHTF, but was not a part of this legislation. There being no further questions or comments, the HSSC proceeded to vote on forwarding the foregoing proposed resolution to the Board of County Commissioners with a favorable recommendation, as presented.

County Attorney	12/8/2017		Assigned	Leigh C. Kobrinski		12/8/2017

County Attorney	12/8/2017		Referred	Housing and Social Services Committee	12/11/2017

Office of the Chairperson	12/8/2017		Additions

Legislative Text

TITLE
RESOLUTION DIRECTING THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE TO PERFORM A ONE-TIME TRANSFER OF THE FULL BALANCE CURRENTLY IN THE AFFORDABLE HOUSING TRUST FUND TO THE AFFORDABLE HOUSING TRUST FUND�S REVOLVING LOAN FUND WHILE RETAINING ALL PRIOR RESTRICTIONS AND CONDITIONS ON THE TRANSFERRED FUNDS

BODY
WHEREAS, this Board has enacted Ordinance No. 07-15, which is codified at Article VIII, Sections 17-129 et seq. of the Code of Miami-Dade County (the �Code�), establishing the Affordable Housing Trust Fund of Miami-Dade County, Florida (the �Trust Fund�); and
WHEREAS, the purpose of the Trust Fund is (1) to establish a permanent, renewable source of revenue to meet, in part, the housing needs of the residents of Miami-Dade County; (2) to foster a housing supply accessible to a range of incomes in developments assisted by the Trust Fund; and (3) to disperse affordable housing units throughout the County; and
>>WHEREAS, the Trust fund currently has $4,206,670.10 on deposit, of which $1,751,000.00 is from monetary contributions from developers seeking incentives from the County, such as density bonuses, in lieu of building workforce housing under the County�s Workforce Housing Development Program; and<<1
WHEREAS, on November 1, 2016, this Board enacted Ordinance No. 16-127, which is codified at Article VIII, Section 17-132.1 of the Code, establishing a separate interest-bearing account within the Trust Fund to be a Revolving Loan Fund by which short term loans are made to developers for the construction, rehabilitation, or acquisition of land or housing for sale or rental to homebuyers or renters whose household annual income does not exceed 140 percent of the area median income adjusted for family size; and
WHEREAS, the Code provides that the Revolving Loan Fund shall be administered by an outside administrator (a Community Development Financial Institution, lender, bank, or other financial institution) selected through a competitive request for proposal process, with the Trust Fund board of trustees serving as the selection committee and responsible for making a recommendation to this Board for the selection of the outside administrator; and
>>WHEREAS, the Code provides that the selected outside administrator must financially commit to providing its own funds to leverage the funds in the Revolving Loan Fund and will award loans to developers based on underwriting criteria set forth in the Revolving Loan Fund guidelines which are to be created by the Trust Fund�s board of trustees and approved by this Board in accordance with Section 17-132.1 of the Code; and
WHEREAS, the Code also provides that the chosen outside administrator shall make bi-annual reports to the Trust Fund�s board of trustees and this Board on the status of the Revolving Loan Fund and each of the outstanding loans; and<<
WHEREAS, when the Revolving Loan Fund was created, the Code provided that it would receive 50 percent of actual carryover funds in excess of the adopted budget, up to $10,000,000.00, subject to appropriation each year; and
WHEREAS, the actual carryover funds were less than anticipated, and although the Trust Fund currently has $4,206,670.10, only $387,000.00 of this amount is in the Revolving Loan Fund; and
WHEREAS, based on responses to the Trust Fund board of trustee�s financial institution survey which sought to ascertain community interest in the administration of the Revolving Loan Fund, the current funds in the Revolving Loan Fund are insufficient to attract an outside administrator who is qualified and experienced in administering similar programs and who is willing to financially commit its own funds to leverage the funds in the Revolving Loan Fund; and
WHEREAS, this Board desires to support the Revolving Loan Fund and to provide a one-time infusion of money into the Revolving Loan Fund by transferring the full balance currently in the Trust Fund to the Revolving Loan Fund,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. This Board adopts the foregoing recitals incorporated as if fully set forth herein.
Section 2. This Board directs the County Mayor or the County Mayor�s designee to perform a one-time transfer of the $3,819,670.10 currently in the Trust Fund >>but not in the Revolving Loan Fund,<< into the Revolving Loan Fund [[for use in accordance with Section 17-132.1 of the Code.]] Notwithstanding this transfer of funds, >>these funds shall retain all of the restrictions and conditions of the Trust Fund (�Restricted Funds�), including those set forth in Section 17-132(3) of the Code, and also including the restrictions that apply to<< the $1,751,000.00 >>of the Restricted Funds<< that has been contributed to the Trust Fund in accordance with the County�s Workforce Housing Development Program [[(�Restricted Funds�),]] >>and which are subject to<< [[shall retain its]] restrictions as described in Chapter 17, Article IX and Chapter 33, Article XIIA of the Code. >>Any expenditure of funds by the selected outside administrator shall be subject to this Board approving the Revolving Loan Fund guidelines developed in accordance with Section 17-132.1 of the Code, which shall also be developed for and govern the use of the Restricted Funds.<< These Restricted Funds shall be kept in a separate account and shall not be commingled with any other funds in the Revolving Loan Fund. >>Any repayment of the Restricted Funds and all interest accrued on the Restricted Funds or interest paid on loans made from the Restricted Funds, shall be returned to the account for the Restricted Funds. The bi-annual reports of the selected outside administrator shall also include a status report on the use of the Restricted Funds. The County Mayor or the County Mayor�s designee shall provide the report to this Board within ______ days of receipt of the outside administrator�s report and shall place the completed report on an agenda of the Board pursuant to Ordinance No. 14-65.<<

1 The differences between the substitute and the original item are indicated as follows: Words stricken through are deleted, words underlined are added.