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HomeMy WebLinkAboutM-01-0156CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: 411irmene City Manager DATE: FILE JAN 3 0 2001 SUBJECT: Status of RFP Review for the Construction of Affordable Housing Projects REFERENCES: Special City Commission Meeting ENCLOSURES: February 15, 2001 Last year, funding proposals were received from both not-for-profit and for-profit developers in response to the City's Request for Proposals (RFP) for project financing for the construction of affordable housing units utilizing funding from the HOLM E Investment Partnership (HOME) Program. Through the RFP, HOME Program funds are available in each of the categories listed below: Homeownership New Construction Program $ 2,616,857 Multifamily Rental New Construction Program 872,286 Community Housing Development Organization 732,150 (CHDO) Program Total $ 4,221,293 As a result of the City's solicitation for funding proposals for the development of new affordable housing units, nineteen (19) proposals, totaling over $10,690,529 million for the development of over 1,181 new homeownership and rental housing units, were received by the City. Listed below is a summary of the affordable housing construction proposals 'submitted: Summary of Homeownership Proposals Amount No. of Auncy/Dweloper Proiect Name Requested Units Coconut Grove Local Development New York Street Townhomes $ 116,000 2 Corporation Greater Miami Neighborhoods, Inc. Riverside Condominiums 500,100 15 Project Jubilee Community Development Rio del Sol Condominiums 750,000 63 Corporation Word of Life Model City 119,901 4 Community Development Corporation Scattered Sites 01- 156 Habitat for Humanity of Greater Miami, Inc. Model Housing Cooperative, Inc. Palmetto Homes of Miami, Inc. Little Haiti Housing Assoc., Inc. East Little Havana Community Development Corporation BAME Development Corporation of South Florida, Inc. Rafael Hernandez Housing and Economic Development Corp. Rafael Hernandez Housing and Economic Development Corp. Edison Little River/Overtown 300,000 Scattered Sites Villas Dr. Godoy 500,000 Condominiums Model City Scattered Sites 159,750 Little Haiti Scattered Sites 625,000 Casa Grande Condominiums/ 2,401,738 Phase II New HOPE/Overtown 538,040 Wynwood Scattered Sites 200,000 Wynwood Scattered Sites 330,000 Allapattah Business Development Ralph Plaza Townhomes- Authority, Inc. Phase II Total Amount of Homeownership Funding Requested and Number of Units Planned Agencv/Develoyer Gatehouse Group/Jubilee Community Development Corporation Pinnacle Housing Group (Rayos del Sol, Ltd.) Greater Miami Neighborhoods, Inc./Pinnacle Housing Group Summary of Rental Proposals Proiect Name Brisas del Mar Apartments Rayos del Sol Apartments Wynwood Towers Apartments 20 32 M 10 11 730,000 30 $7,270,529 330 Amount No. of Requested Units $1,200,000 100 1,250,000 199 250,000 186 01- 156 Miami Supportive Housing Corporation New Century Development Corporation CODEC, Inc. (Peninsula XIV) Bay Club Apartments Allapattah Gardens Apartments Victoria Residential Apartments Total Amount of Rental Funding Requested and Number of Units Planned 70,000 138 500,000 128 150,000 100 $3,420,000 851 After a review of the housing proposals by City staff, eleven (11) of the proposals for homeownership housing projects and one (1) for rental housing projects were deemed ineligible to move forward for consideration for approval/disapproval for project financing by the City's Housing and Commercial Loan Committee. Each of the agencies/developers has been notified in writing of this determination and the reasons for the determination. Following is an overview of each of the ineligible projects: Homeownership Proposals Agency/Developer: Coconut Grove Local Development Corporation Project Name: New York Street Townhomes No. of Units: 2 Funding Request: $116,000 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. • The developer/proposer failed to document control of the housing site to be developed. • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. • The developer/proposer failed to bring current all outstanding financial obligations with the City of Miami as stipulated in the Request for Proposals 01- 156 3 Agency/Developer: Model Housing Cooperative, Inc. Project Named: Villas Dr. Godoy No. of Units: 32 Funding Request: $500,000 • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. • The developer/proposer needs to resolve certain audit, monitoring and contractual issues by Miami -Dade County through its audit of Community Based Organizations (CBO's) and Community Development Corporations (CDC's). Agency/Developer: Greater Miami Neighborhoods, Inc. Project Name: Riverside Condominiums No. of Units: 15 Funding Request: $500,100 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. • The developer/proposer failed to document control of the housing site to be developed. • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. Agency/Developer: Little Haiti Housing Association Project Name: Little Haiti Scattered Sites No. of Units: 20 Funding Request: $625,000 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. 01-- 156 4 Agency/Developer: BAME Development Corporation of South Florida, Inc. Project Name: New Hope/Overtown No. of Units: 40 Funding Request: $538,040 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. The developer has been previously awarded $800,000 in HOME Program funds for project. The developer's request and the allocation of an additional $538,040 in funding would result in a leverage ratio of only 1:2. Since the project was initially funded prior to the City's adoption of Resolution No. 98-587 (Affordable Housing Levering Policy), it is recommended that the City Commission direct the City Manager to request a waiver from U.S. HUD to reconsider funding this project. Agency/Developer: Rafael Hernandez Housing and Economic Development Corporation Project Name: Wynwood Scattered Sites No. of Units: 10 Funding Request: $200,000 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. • The developer/proposer's failed to document control of the housing site to be developed. • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. • The developer/proposer's application package is incomplete. Agency/Developer: Rafael Hernandez Housing and Economic Development Corporation Project Name: Wynwood Scattered Sites No. of Units: 4 Funding Request: $330,000 The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. 01- 156 5 • The developer/proposer's failed to document control of the housing site to be developed. • The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. • The developer/proposer's application package is incomplete. Agency/Developer: Habitat for Humanity of Greater Miami, Inc. Project Name: Edison Little River/Overtown Scattered Sites No. of Units: 20 Funding Request: $300,000 • Developer/proposer notified the City in writing of request to withdraw funding proposal from consideration by the City. Agency/Developer: Palmetto Homes of Miami, Inc. Project Name: Model City -Scattered Sites No. of Units: 10 Funding Request: $159,750 • The developer/proposer's application package is incomplete. Although the developer's request for $159,750 in HOME Program funding did meet the City's 3:1 leveraging ratio, a number of documents were missing from the application which deemed the application package to be declared incomplete. The Department of Community Development will refer Palmetto Homes of Miami, Inc. to Greater Miami Neighborhoods, Inc. to receive technical assistance and capacity building training. Agency/Developer: Allapattah Business Development Authority Project Name: Ralph Plaza Townhomes-Phase II No. of Units: 30 Funding Request: $730,000 • The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. 6 The developer has been previously awarded $500,000 in HOME Program funds for project. The developer's request and the allocation of an additional $738,000 in funding would result in a leverage ratio of only 1.1. Since the project was initially funded prior to the City's adoption of Resolution No. 98-587 (Affordable Housing Leveraging Policy), it is recommended that the City Commission direct the City Manager to request a waiver from U.S. HUD to reconsider funding this project. Agency/Developer: Word of Life Community Development Corporation Project Name: Model City Scattered Sites No. of Units: 4 Funding Request: $119,901 The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to three (3) for homeownership projects as stipulated by Resolution No. 98-587. • The developer/proposer's application package is incomplete. • The developer/proposer applied for administrative funding and land acquisition/construction financing from ineligible HOME Program category and therefore deemed ineligble. Rental Proposal Agency/Developer: Miami Supportive Housing Corporation Project Name: Bay Club Apartments No. of Units: 138 Funding Request: $70,000 The developer/proposer failed to secure and/or identify other project financing from other public and/or private sources which would leverage financial assistance provided by the City at a minimum of one (1) to five (5) for rental projects as stipulated by Resolution No. 98-587. • The developer/proposer's failed to document control of the housing site to be developed. The developer/proposer failed to document/demonstrate that construction would be underway within six (6) months from the date of funding award by the City. Based on the Department of Community Development's current schedule, the funding proposals submitted to the following agency/developers listed below will move forward for consideration by the Housing and Commercial Loan Committee at its meeting scheduled for February 6, 2001: 7 Occupancy Funding A2ency/Develoaers Proiect Name No. of Units Request East Little Havana Community Casa Grande CondominiumsHomeownership/80 $2,401,738 Development Corporation Phase 11 Jubilee Community Rio del Sol Condominiums Homeownership/63 750,000 Development Corporation Total Homeownership Requests 143 Units $3,151,738 Gate House Group/Jubilee Brisas del Mar Apartments Rental/100 $1,200,000 Community Development Corporation Pinnacle Housing Group Rayos del Sol Apartments Rental/199 1,250,000 (Rayos sdel Sol, Ltd.) New Century Development Allapattah Garden Rental/128 500,000 Corporation Apartments CODEC, Inc. Victoria Residential Rental/100 150,000 (Peninsula XIV) Apartments Greater Miami Wynwood Towers Rental/186 250,000 Neighborhoods, Inc./ Apartments Pinnacle Housing Group Total Rental Requests 713 Units $3,350,000 At the Special City Commission meeting scheduled for February 15, 2001, an update of the Housing Loar, Committee's funding allocations will be provided for your information. k DB/GCW/JBH 8 01— 1!-i6 vv......v..• . . e/hL. r hL.e..Vr 10 Gn\ 1 1�7�7VG�7 Z'C��pr The Miami City Commission will hold P —*cial Meeting to discuss issues relating to Community Deuelopr The Special Meeting will be held: day. February 15, 2001 at 9:30 A.M. — . ty of Miami Commission Chamber 3500 Pan American Drive Miami, Florida 33133 The Agenda for the Special Meeting is as lollows: 1. Discussion and proposed resokdw on Manning Calendar io 27th Year CDBG and other HW program activities. 2. Discussion and proposed resolution to revise the Citizen Participation Plan 3. Discussion and proposed resolution to rollover the accounts of uncompleted prior year projects to the anent Fiscal Year (FY'2000-2001), in the amounts of $5.096,116.93 of Community Development Block Grant (00867 funds, $6,660,847.09 of HOME Investment Partnership (HOME) kinds and $1,808,273.22 of Housing Opportunities for Persons With AIDS 001"WA4 finds. 4. Discussion and proposed resolution to allocate the balance of closeout funds from completed prior years projects and line of credit balances from the CDBG Program and Emergency Shelter Grant (ESG) Program and also to allocate available program income as specified below: A. Source ad Amount of CDBG Alteration CDBG Line of Credit Balance 5 239,729.95 Closeart funds from prior year completed activities 895,276.55 Program Income 12D,QQQ,QQ Total Avail" for Allocation B. Recommended CON Proieet and Altocalien $3,335,OB550 Public Services DeHostos Senior Center $ 15,000.00 Public Services Contingency Fund Economic Development 32,OOO.DO Coconut Grove Local Development Corporation 100,000.00 (contingent on repayment of debt owed to City) Small Business Opportunity Center 10,000.00 Word of Life CDC 38,000.00 Pgglc Imorpvements: Domino Park Expansion aro Improvements city sponsored 40,000.00 ftam= Capital Improvement Projects 1,200,005.50 Citywide Demolition 50'000.00 Citywide Lot Clearing 100,000.00 Model City Homeownership Lot Clearing and Mantmance Project 1,300.000.00 Total Recommermled CDBG Allocation f 3,335,005.50 C. Source and Amami of ESQ Allocation ESG Line of Credit Balance $ 192,914.65 Closeout hinds from completed prig year activities 18 068.39 Total Available for Allocation $ 211,003.04 D. Recommended ESG Protect and AYoealion Catholic Charities of the A didixese of Munni S 211,003.04 (Hew Life Family ShelterW, Pierre Toussaint Little Haiti Homeless Project and little Havana Emergerx y Services Total ESG Allocation 5211,003.04 The proposed resolution also transtei s $25.000 of previously approved CDBG funds from the Edison Little River Job Crayon Project to the City of Miami Planning Department to coordinate economic development activities in the Little Haiti area 5. Discussion and proposed resolution ratifying City Manager's action in purchasing loan servicing software to manage the Department's loan portfolio and approving $10,495 in additiaW heeding for ban servicing software 6. Discussion and proposed resolution allocating S3.000,000 of HOME funds for the Single Family Rehabilitation and HomebuyerS Financing Programs 7. Discussion and proposed resoWbort deobigati g previously approved SHIP awards to Link Haiti Housing Association and Habitat for Humanity of Greater Miami and replacing said deobligated funds with HOME Dam B. Discussion on the HOME RFP process for the construction of affordable housing 9. Discussion and proposed resolution regarding the restructuring of the HOPWA Program and the allocation of $2,700,000 to Department of Community Development to operate the program and $358,000 to Douglas Gardens Community I Well! Center to maintain its program in Miami Beach 10. Discussion on the Model City Homeownership Ione and the following proposed legislation • Resolution 1 - Approving. in principle, the aatian and establishment of the Model City Homeownneft Zone Trust • Resolution 2 - Allocating $3.000.000 in HOME Progiann tending lo the Model City Homeownership Zone • Auttaizing the City Manager o more forward with predevielopmerNlimiled related activities 11. Discussion and proposed resolution approving ardatacbnal services necessary to implement the Model City Homeownership Zone Project 12. Discussion and proposed resolution ratifyipg the City Manager's action in acqurmg properties tron the Muni -Date Cwpy List of lands for development through the Modi4 Gly Homeownership Zone Project 13. Discussion and proposed resolution ratify" the action of the City Manager in acquiring the Miami Limited I Housing Project in wryuncom with the Model City Homeownership Zone Project 14. Discussion and proposed m wklbDn to allocate 52.521,666 of HOME furls and $1,612,696 of CDBG funds, available as a result of the repayment for disallowed costs identified in the Audit Report issued by the Office of the Inspector General, to the Model Cly Homeownership Zorle Project 15. Discussion and proposed resolauton regarding The establishment of One Stop Centers in the Coconut Grove and We Harare neighborhoods and the reparation of the management functions of the Department of Community Development Upon final approval by the City Commission, the previousy approved City of Miami 2000.2001 Annual Action Plan will be revised accordingly following a fifteen day pihbtic comment period. Comments should be submitted in wrfing to: City Of Miami Department of Caaamariry Development Second Floor 4" S Ift tad Arenue Miami, Florida 33130 Interested individuals are encouraged to attend this Special Meeting. The meeting site is accessible to the handicapped. 01- 156