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RESOLUTION AUTHORIZING THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE TO SUBMIT RENTAL ASSISTANCE DEMONSTRATION APPLICATIONS AND ANY OTHER NECESSARY DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE CONVERSION OF CERTAIN PUBLIC HOUSING PROJECTS THROUGH THE RENTAL ASSISTANCE DEMONSTRATION PROGRAM

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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:

Section 1. The foregoing recitals are incorporated in this resolution and are approved.

Section 2. This Board authorizes the County Mayor or the County Mayor�s designee to submit Rental Assistance Demonstration Applications and any other necessary documents to the United States Department of Housing and Urban Development for the conversion to Section 8 Project-Based Housing through the Rental Assistance Demonstration Program of certain public housing projects, which are more fully identified in Appendix Table 1 and Appendix Table 2 of the County�s letter of interest that is attached as Attachment �A� to the County Mayor�s memorandum and incorporated herein by reference.

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Date:

To: Honorable Chairman Esteban L. Bovo, Jr.
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Submission of Rental Assistance Demonstration Applications and Any Other Necessary
Documents to the United States Department Of Housing and Urban Development for the
Conversion of Certain Public Housing Projects to Section 8 Project-Based Housing
Through the Rental Assistance Demonstration Program

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board authorize the County Mayor or the County Mayor�s designee to submit Rental Assistance Demonstration Applications (RAD Applications) and any other necessary documents to the United States Department of Housing and Urban Development (HUD) for the conversion of certain public housing projects to Section 8 Project-Based Housing through HUD�s Rental Assistance Demonstration Program (RAD Program or RAD).

Scope
This item has a countywide impact.

Fiscal Impact/Funding Source
There is no fiscal impact to the County for submitting the RAD Applications.

Track Record/Monitor
Michael Liu, Director, Public Housing and Community Development Department (PHCD) will monitor this project.

Background
PHCD, on behalf of the County, currently oversees approximately 9,000 public housing units in Miami-Dade County. Of those units, 2,400 have been redeveloped or are in the process of being redeveloped through the HUD approved mixed-finance concept in which the County partners with private-sector developers to redevelop the County�s public housing sites. The average age of the County�s public housing sites is over 40 years. Generally, these public housing sites are old and have deficiencies inherent with an old housing stock, including but not limited to requiring major upgrading to elevators, security systems, mechanical, electrical and plumbing systems, fire safety, windows, doors and building envelope (hurricane resistant), and infrastructure.

Notwithstanding the County�s efforts to redevelop its public housing, the most effective way to deal with these mounting issues is through an expeditious redevelopment program that is not dependent on HUD�s Capital Funding Program, which only provides approximately $14 million per year to the County. This amount of capital funding is woefully inadequate for the County�s redevelopment needs that are roughly estimated at approximately $1.9 billion agency-wide. Further, PHCD should not have to continue to try to meet operating expenses without adequate operating cost funding from HUD.

On July 10, 2018, the Board adopted Resolution No. R-710-18, which approved the FY 2018-2019 Public Housing Agency Plan (PHA Plan) for submission to HUD. The PHA Plan included plans to convert existing public housing developments through the RAD Program. The RAD Program is a HUD program authorized in the FY 2012 Congressional Appropriations Bill. The RAD Program is the voluntary, permanent conversion of public housing to the Section 8 project-based housing program. Unlike the public housing program, the Section 8 project-based housing program allows for more funding flexibility, including the use of other funding sources, such as tax credits, private debt and equity, and other public funds to maintain and improve existing public housing buildings. The RAD Program also guarantees strong tenant protections that tenants currently have under the public housing program. The nation�s 1.2 million units in the Public Housing program have a documented repair backlog of nearly $26 billion. As a result, the public housing inventory has been losing an average of 10,000 units annually through demolitions and dispositions. The current conditions of many of these properties prevent reinvestment and recapitalization efforts in the communities with the most need without a funding stream based on Section 8 project-based contracts.
The following are the advantages of participating in the RAD program:

� The RAD Program will allow PHCD to address more redevelopment projects within a shorter time than it can under present funding options;
� The RAD Program can be a source of funds for modernization of the developments through private construction lenders, who understand RAD and are willing to provide construction and permanent financing;
� The RAD Program can access equity through low income housing tax credits;
� The RAD Program provides for a 20-year funding contract with annual cost of living adjustments;
� Modernization could be targeted at repairs and replacement of selected components and energy efficiency upgrades; and
� There are significant safeguards under the RAD Program for residents of public housing such as one-for-one replacement of public housing units and a guaranteed right of return for affected residents.
As mentioned above, to date, redevelopment of the County�s existing public housing stock includes a total of 2,400 units that have been completed, are under construction or near to financial closing to allow for these units to be redeveloped. However, it is anticipated that approximately 6,426 additional public housing units will benefit from redevelopment if the County participates in the RAD Program.

Initially, when Congress approved the RAD Program in 2012, 60,000 public housing units were converted to RAD nationwide. Since then, the number of units converted has increased. As of July 16, 2018, HUD estimates that there are 95,000 un-awarded RAD units. The County is aware that many housing authorities are known to be presently applying for RAD units. In fact, on a recent HUD-sponsored �listening session� with industry partners held on August 8, 2018, HUD advised that �it expects a major increase in volume of units for RAD conversion.� There is every reason to believe that the 95,000 remaining units will be used up quickly, and after these units have been approved for RAD conversion, unless Congress authorizes more capacity, the only opportunities for gaining RAD approval will be from housing authorities who cannot make their projects work financially.

Pursuant to Miami-Dade County Request for Qualification No. 00313 Management Consulting Services Pool and Work Order Proposal Request (WOPR) No. EPPRFP-WOPR00313-04, the County sought proposals from vendors in the pool to assist PHCD with RAD analysis and the implementation of the County�s proposed RAD program. One of the vendors that submitted a proposal was TAG Associates of Florida, LLC. (TAG Associates), which is a nationally known firm with over 25 years of experience in assisting public and subsidized housing providers, including public housing authorities, throughout the country to develop innovative strategies and programs to assist in the creation and maintenance of high quality affordable housing, including but not limited to through the RAD Program. On April 2, 2017, a contract in the amount of $400,000.00 was executed between the County and TAG Associates to provide consulting services. In accordance with Implementing Order No. 3-38, the County Mayor submitted a bi-annual report to the Board with a list of the contracts for goods and services that have been awarded in excess of $250,000.00. On May 1, 2018, the Board adopted Resolution No. R-394-18, which ratified the action by the County Mayor or County Mayor�s designee with respect to adding vendors, including but not limited to TAG Associates, to open pool contracts during the period of July 1, 2017 through December 31, 2017. TAG Associates will assist PHCD to analyze its public housing portfolio and develop a plan for redeveloping its public housing using the RAD program, assist PHCD in preparing and submitting the RAD Applications and other related documentation, to obtain HUD approvals, and implement a redevelopment plan using the RAD program. The approval of the redevelopment plan will be subject to the Board�s approval.

Due to the high demand to participate in RAD, the County alerted HUD to the County�s need to �reserve� 6,426 units under the RAD Program at the earliest possible opportunity. Accordingly, on August 30, 2018, the County transmitted to HUD a letter of interest, which is attached to this memorandum as Attachment �A�. The County is also working with HUD to obtain a reservation of the 6,426 units through the RAD Program. State Attorney Katherine Fernandez Rundle also sent a letter to HUD, indicating her support for the County�s redevelopment plan based on RAD, which is attached to this memorandum as Attachment �B�. The County�s letter of interest to HUD does not obligate the County to convert its units to RAD. Additional steps will have to be taken to implement rehabilitation and redevelopment under RAD, which will require further Board approval. However, the first step in the process is the submission of RAD Applications and any other necessary documents. Accordingly, it is recommended that the Board approve the attached resolution which authorizes the County Mayor or the County Mayor�s designee to submit the RAD Applications and any other necessary documents on the County�s behalf.

Attachments



_______________________________
Maurice L. Kemp
Deputy Mayor