Loading...
HomeMy WebLinkAboutR-01-0166J-01-103 2/14/01 RESOLUTION NO . " A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE ALLOCATION OF HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS, IN AN AMOUNT NOT TO EXCEED $2,521,668, AND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, IN AN AMOUNT NOT TO EXCEED $1,612,696, TO SUPPORT THE MODEL CITY HOMEOWNERSHIP ZONE PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE IMPLEMENTING AGREEMENTS AND DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR EXPENSES RELATING TO SAID PROJECT; AND FURTHER AUTHORIZING THE CITY MANAGER TO AMEND THE PREVIOUSLY APPROVED ANNUAL ACTION PLAN TO REFLECT SAID ALLOCATIONS. WHEREAS, the U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General issued an Audit Report relating to the City of Miami Community Planning and Development Programs dated March 26, 1998; and WHEREAS, HUD notified the City in writing of its proposed resolution to the findings of the Audit Report; and WHEREAS, HUD determined that ineligible expenditures in the amount of $4,134,364 must be returned by the City of Miami to the CDBG and HOME programs, as appropriate; and FEB 1 9 7001 WHEREAS, the City of Miami transferred $2,521,668 of non- federal funds to its HOME Investment Partnerships (HOME) Program line of credit; and WHEREAS, the City of Miami transferred $1,612,696 of non- federal funds to its Community Development Block Grant (CDBG) Program line of credit; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The allocation of HOME Investment Partnerships (HOME) funds, in an amount not to exceed $2,521,668 is authorized to support the Model City Homeownership Zone Project. Section 3. The allocation of Community Development Block Grant (CDBG) funds, in an amount not to exceed $1,612,696 is authorized to support the Model City Homeownership Zone Project. Section 4. The City Manager is authorizedll to execute implementing agreements and documents, in a form acceptable to 1� The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 2 of 3 _ the City Attorney, for expenses relating to the Model City Homeownership Zone Project. Section 5. The City Manager is authorized to amend the previously approved City's Annual Action Plan to reflect the above referenced allocations. Section 6. This Resolution shall become effective immediately upon adoption and signature of the Mayoral PASSED AND ADOPTED this 15th day of February 2001. JOE CAROLLO, MAYOR In accordance with Miami Code Se^. 2-36, shf,,i the Mayor did not Inifiaate ap ra",_ of titin! I l latiwn by s!-ning It In the d ;" r';arn �a�r� a�� d, c?,Ad tiE t of,,Q;, effoctIVe w4h the elar),n.i of ten �i h F; , i��^i ;; isata.. of ZX:, itt,:` regarding eama, without the Niacor ercI ink a ato ATTEST: Walter . F man, City Clark WALTER J. FOEMAN CITY CLERK r1,Iaa � :9 ITA 0 V � PRO VILARELLO, TTORNEY 43 :BSS CORRECTNESS/C zi If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 14 TO: Honorable Mayor and DATE: JAN 3 0 2001 FILE: Members of the City Commission SUBJECT: Allocation of HUD Repayment Funds from OIG Audit to Model City FROM : REFERENCES: Homeownership Zone eez City Commission Agenda City Manager ENCLOSURES: February 15, 2001 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution allocating $2,521,668 of HOME Investment Partnership (HOME) funds and $1,612,696 of Community Development Block Grant (CDBG) to support the Model City Home Ownership Project; authorizing the City Manager to execute implementing agreements or documents for expenses relating to said project, in a form acceptable to the City Attorney; and further authorizing the City Manager to amend the previously approved Annual Action Plan. BACKGROUND: As a result of the Audit Report issued by the Office of the Inspector General (OIG) in March 1998 on the City of Miami Community Development Block Grant Program, the City was required to repay a total of $4,134,364 of disallowed costs back to the Federal government. At its meeting of July 20, 2000, the City Commission adopted legislation approving the Administration's recommendation to accept a method of repayment from the U.S. Department of Housing and Urban Development (HUD) that included a lump sum transfer of non-federal funds by the City to its Community Development or HOME account, as appropriate. By accepting this option rather than a longer-term repayment plan, HUD authorized the City to reprogram its repaid disallowed costs to eligible HOME or CDBG activities. The reprogramming of these funds would not have been permissible under the long-term payment plan. As directed by HUD, the City of Miami has transferred a total of $4,134,464 to its respective CDBG and HOME accounts, as appropriate, to satisfy the outstanding financial issues from the Audit Report with Final Action Pending. The following Chart provides a summary of the financial issues identified the Audit Report: 41- 166 Disallowed Cost Category Funding Source Original Amount of Disallowed Costs Final Amount of Ineli 'ble Costs Finding 1 - City Inappropriately Sent $5,688,606: 1A - Grant administrative expenses transferred transferred between years CDBG $ 2,133,797 -0- 0 - 1B - Exceeded 20% administrative cap CDBG $ 484,999 -0- 0-1C 1C - Unsupported Costs of Cost Allocation Plan CDBG $ 2,518,210 $510,817 1D - Administrative Costs Charged to Supplemental Disaster Grant CDBG $ 551,600 $ 47,532 TOTALS FOR FINDING 1 5..688,606 $558,349 Finding 2 2A - Uncollected Loan for DC Two Exponent, Inc. CDBG $ 686,270 $686,270 2B - Past Due Interest and Late Fees Forgiven for the Ideal Rehab, Inc. and Liberty City Improvement Corporation Loans CDBG $ 368,077 $ 368,077 TOTALS FOR FINDING 2 1054 347 $1,054,347 Finding 3 - City allocated funds to a project that was not feasible (Northwestern Estates) HOME $ 4,750,000 $2,521,668 TOTALS FOR FINDING 3 4,750,000 2 521668 134 64 As a result of the repayment to its respective CDBG and HOME accounts, $2,521,668 was transferred to the City's HOME line of credit and $1,612,696 to its CDBG line of credit and this amount is available for reprogramming to eligible CDBG and HOME activities.