HomeMy WebLinkAboutR-99-0140RESOLUTION N0. 9 9 - 140
A RESOLUTION OF THE MIAMI CITY COMMISSION
AUTHORIZING THE CITY MANAGER TO ISSUE A
REQUEST FOR PROPOSALS (RFP), FOR THE
PROCUREMENT OF PROPERTY MANAGEMENT &
MAINTENANCE SERVICES FOR THE DEPARTMENT OF
COMMUNITY DEVELOPMENT FOR SINGLE FAMILY AND
APARTMENT RESIDENTIAL PROPERTIES RECAPTURED
BY THE CITY THROUGH CITY INITIATED
FORECLOSURE PROCEEDINGS; FURTHER AUTHORIZING
THE CITY MANAGER TO EVALUATE SAID PROPOSALS
AND PRESENT THEM TO THE CITY COMMISSION, IN
RANK ORDER, FOR ITS REVIEW AND CONSIDERATION.
WHEREAS, the U.S. Department of Housing and Urban
Development, Office of the Inspector General, in its audit dated
March 26, 1998, cited weaknesses in the City,s loan collection
procedures and recommended a strategy to aggressively pursue
legal actions against all delinquent loan accounts in the City,s
housing loan portfolio; and
WHEREAS, pursuant to Resolution No. 98-588, adopted June 9,
1998, the Commission adopted a proactive Housing Loan Collection
Procedures and Policies Plan; and
WHEREAS, the City acquired properties as a result of
CITY coraR' szom
MEETING OF
FEB 2 3 1999
Resolution No.
99- 140
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successful foreclosure actions on U.S. HUD financed
rehabilitation loans; and
WHEREAS, it is necessary to rehabilitate, maintain and
manage said properties in a suitable manner preparatory to sale
by the City; and
WHEREAS, A Request for Proposals (RFP) is needed to solicit
a broad range of responses from qualified and experienced firms
in the property management and maintenance industry;
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 hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorized to
issue a Request For Proposals (RFP) for the procurement of
management and maintenance services for the Department of
Community Development for single family and apartment residential
properties recaptured by the City through City initiated
foreclosure proceedings.
Section 3. The City Manager is hereby directed to
evaluate said proposals and present the most qualified to the
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City Commission, in rank order, for its review and consideration.
Section 4. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor11.
PASSED AND ADOPTED this 23rd day of February , 1999.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2.36, since the Mayor did not indicate aporn r! of
this legislation by signing it in the designated place provirien. ^;ir: +;,ni;; ;?:,: „ .
becomes effective with the elapse often (10) days fro the date o cmmissicn on
regarding same, without the Mayor exercisi a vet
ATTEST:
Walter J Foe ity Clerk
WALTER J. FOEMAN
CITY CLERK
CORRECTNESS
241:CSK:kc
l� 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.
3
8 9~ 1 4 0
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
To: The Honorable Mayor and
Members of the City Commission
FROM: Kn/ald &HW=arsha;wa���
City Manager
RECOMMENDATION:
FiwB 1 2 110,99
DATE:
FILE:
Resolution Authorizing Issuance
SUBJECT : an RFp for Management and
Maintenance Services for Real
Estate Recaptured by the City via
REFERE"cEForeclosure Proceedings
ENCLOsuRECity Commission Agenda
Sheeting of February 23. 1999
It is respectfully recommended that the City Commission adopt the attached resolution, authorizing
the issuance of a Request for Proposals (RFp) seemquae
Management & Maintenance Services of single family houses and apartment buildings ied and experienced fi Sto rm ide
which may be recaptured via foreclosure proceedings initiated by the City of Miami. ("Services")
BACKGROUND:
In March of 1998, the U.S. Department of Housing and Urban Development's District Office of th
Inspector General, in its audit report dated March 26, 1998, cited weaknesses strict
the Cit 's to e
collection procedures, and recommended a strategy to aggressive) Y an
ll
delinquent loan accounts in the City's housing loan portfolio. As a part of the aCity's correctictions against ve
action plan relative to this finding, in July of 1998, through Resolution No. 98-588, the Citye
Commission approved and adopted a Housing Loan Collection Procedures and Policies Plan. T1
Plan essentially delineated the roles and responsibilities of the Department of Community
e
Development and the Law Department in c tY
include aggressive) debtors
out g e erall loan collection process, to
Y Pursuing alI delinquent debtors through legal actions to safeguard the City's
assets.
Presently, the Department of Community Development is seeking to identify a qualified
d
experienced firm to manage and maintain single family houses and apartment buildings obtained b
the City via foreclosure proceedings initiated by the Law Department. These residential roe ' Y
which the property owners have defaulted on the repayment of their U.S. HUDfinanced
rehabilitation loans, must be properly maintained and managed for a short period prior to the sale
and disposal by the City. alee
a9
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The Honorable Mayor, and
Members of the City Commission
Page 2
Tlie attached resolution authorizes the Ci
Management and Maintenance services to the Manager to issue an RFp for the
recaptured by the Ci ty for any residential properties which Provision of
tY through foreclosure proceedings initiated by the Law De MAY be
In an effort to move the loan collection process forward i pent.
Commission approve the attached resolution, t is recommended that
the
. • �'� City
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�I�DKV/sjg
gy_ 140
1-98-566
05/15/98
RESOLUTION NO.9 O 5 8 O
A RESOLUTION, WITH ATTACHMENT, APPROVING THE
CITY OF NUAMI'S HOUSING LOAN COLLECTION
PROCEDURES AND POLICIES IN CONNECTION WITH THE
CITY'S HOUSING LOAN PORTFOLIO CONSISTING OF LOW -
INTEREST LOANS WHICH HAVE BEEN PROVIDED
THROUGH THE CITY'S CDBG-FUNDED SINGLE-FAMILY
AND MULTI -FAMILY REHABILITATION LOAN PROGRAMS,
RENTAL y REHABILITATION GRANT PROGRAK HOME
INVESTMENT PARTNERSHIP PROGRAM AND STATE
HOUSING INITIATIVES PARTNERSHIP PROGRAM;
AUTHORIZING AND DIRECTING THE CITY ATTORNEY TO
COORDINATE A LOAN COLLECTION PROCEDURE WITH
THE DEPARTMENT OF COMMUNITY I)EVELOpMENT
WHICH WILL INCLUDE SENDING CERTIFIED LETTERS TO
ALL DELINQUENT DEBTORS AND TO AGGRESSIVELY
PURSUE ALL LEGAL ACTIONS AND OPTIONS AGAINST ALL
LOAN ACCOUNTS WHICH ARE IN DEFAULT IN EXCESS OF
120 DAYS; AUTHORIZING AND DIRECTING THE CITY
ATTORNEY TO PROVIDE TIME CITY CO&WSSION WITH
QUARTERLY STATUS REPORTS OF ALL DEPARTMENT OF
COMMUNITY DEVELOPMENT DELINQUENT LOANS
REFERRED TO THE CITY ATTORNEY'S OFFICE,
'10
WHEREAS, in its Audit Report dated March 26, 1998, the U.S. Department of
Housing and Urban Development's District Office of the Inspector General C101a ), cited several
problems and concerns relative to the City's housing loan portfolio; and
N*MMNa Op
AtTACHMEHT (S)
COX rAINED
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WHEREAS, in an effort to address the OIG's concerns with respect to the collection
practice regarding the defaulted loans in the City's loan portfolio, it is necessary that the City
establish a loan collection procedure; and .
_ WHEREAS, it. is recommended by the Economic Development and Transportation
Committee that the City Attorney's Office coordinate a collection procedure with the Department
of Community Development which will include sending certified letters to all delinquent debtors;
and
WMREAS, itisArther recommended that the City aggressively pursue all delinquent
debtors which are in default in excess of 120 days, through legal action to safeguard the City's
assets, by initiating foreclosure actions, enforcing the assignment of rents, pursuing peu0nal
guarantees, and through the engagement of private debt collection agencies; and
WHEREAS, it is recommended by the Economic Development and Transportation
Committee that the City Attorney provide the City Commission with quarterly reports of an
Department of Community Development delinquent loans referred to the City Attorney's Office;
NOW, THEREFORE, BE ITRESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section L The recitals and findings contained in the Preamble to this Resolution are
hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section.
Section 2. The City Commission hereby adopts the attached Housing Loan Collection
Procedures and Policies, which delineates the roles and responsibilities of the Department of
Community Development and the City Attorney's Office, in carrying out the loan collection
procedure with respect to the City's housing loan portfolio.
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Section 3. The City Attorney is hereby authorized and directed to coordinate the
collection procedure with the Department of Community Development, which will include
sending certified letters to all delinquent debtors.
Section 4. The. City Attorney is further authorized and directed to provide the City
Commission with quarterly status reports of all Department of Community Development
delinquent loans referred to the City Attorney's Office.
ATTEST:
Section S. This Resolution shall become effective immediately upon its adoption.
POSED AND AOPTED this 9 th day' of June , 1998.
Is0
JOE CAROLLOp�� �pY RR
am wkh Miami Code Sec. 2�. alnce"Mayor �d �c8te gp� 1 of
ft 1Mslalatbn by 4nlnq It In the designated place pmM-- i, said tegi3lar-n
becomes effe*a wkh the elapse of ten (10) 0-err, the date of CommL--a:cn cz. n
regaoV same, w9 ut the Mayor ' ut
r
WALTER L FOEMAN, CITY CLERK VYU 0e Cl
CITY CLERK'S OFFICE
DEP,A, RTMENT OF COMMUNITY DEVELOPMENT
RE ; W AND APPROVAL:
G YN C. WARREN, DIRECTOR
DEPAR OF COMMUNITY DEVELOPMENT
00- 140
PREPARED AND "PROVED BY:
L Y ON
ASS19TANT Ciry ATTORNEY
'99- -0 1
"hop
CITY OF MIAiMI
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T,.•. .
Mvr��..a f M,
n
i"4
.Department of Community
Development/Housing Division
Housing Loans
Collection Procedures and Policies,'
99- 140
P - 0 -e
DEPARTMENT OF COMMUNITY DEVELOPMENT/HOUSING DIVISION
In response to the shartcomings and deficiencies which were identified by the District Inspector
General for Audit in the audit report, dated March 26, 1999, the Department of CommunityDevelopment will be charged with the Sete
associated with them responsibility of performing the collection activities
�nagement of various housing Ioans which -have been provided through the
CL)Bf3-funded Single -Family and Multi -Family Rehabilitation Loan Programs, HOLM Program,
State Housing Initiatives Partnership Program (SFUP) and any other housing
�p8drhRby she Department. As Prong which are
part of the City s Corrective Action Plant and theAga jmWon Plan, an in-house Finance Unit will be charged with the day-to-da
responsibility of collections and oversight of the City's housing loan portfolio. This course of
action will eliminate the lack of communications and misunderstandings which may have
occurred in the past, relative to the roles of other City departments, namely, the Finance apd Law
dcjWftents.
ih* Department of Community Development, through its Finance Unit will be
receiving all loan responsible for
Payments submitted by the borrowers and the initial booting of the payments
received from each borrower. Through the implementation of a mortgage tracking Finance Unit Will be able to determine whether a borrower is cu
system, the
days Past due on his/her loan. nen A 3p days, 60 days and 25
Appropriate late notices will be forwarded to the borrower, along -
with follow-up telephone calls to the borrower(s) to bring the loan current and/or to establish the
problem area associated with the delinquent account.
After a loan is in default for ninety (90) days, the Department of Community f
be;respons:"ble for aoti sy Development will
Eying the City Attorneys Office to send certified delinquency letters to all
borrowers who are delinquent on their loan account. If the borrower contacts the Community Development and/or tt of
he City Attorney's office, and is desirous of coeft
rrec g the
delinquency, no further legsl action will be pursued by the City.
After a loan is in default for 120 days, the De
partment of CommDeve
conjunction with the City Attorney's Office Will t nee through tY Iopment in
ate written
correspondences and telephone calls, attempt to notify the borrower(s) to bring his/her delinquent
loan account current or enter into a stipulation of settlement agreement with the City Attorney's
Ot.f'ice. If there is no response from the borrower(s), the Department of Corununi
ty
Development will be responsible for referring the matter to the City's Attorney's Office for
foreclosure action.
Any multi -family loan(s) that is delinquent in excess of 120 days, and the borrower(s) has
responded to the appropriate notices forwarded by the Department of Community Development
and/or City Attorney's Office and requires a restructuring of the loan or stipulation of settlement ._
riUN 1 SS 4 Z P �8
agreement, will require that the Department of Community Development submit said request to
the' City's Housing Loan Committee for approval/disapproval. Such action will also require
approval from the Miami City Commission and U.S. HUD. Once approval has been received
from the City Commission and U.S. HUD, all loan restructuring plans trust also receive final
approval from the State Oversight Review Board.
The Department of Community Development will be responsible for performing the appropriate
pr+o ect analysis to determine whether foreclosure is the proper remedy. This project analysis
will take certain factors into consideration which include:
l . The assessed value of the property.
3. The amount of superior lien holders (i.e., mortgages, tax certificates).
I lire condition of the property and liability associated with same.
4. The cost of mainWaing the property.
,. S. The mar,Isetability of the property.
6. The loss in tax revenue once the property becomes exempt.
Should the Departracnt of Community Development decide that foreclosure is econ4dcally
feasible, a Foreclosure Referral will be executed and forwarded to the Office of Asset
Management and the City Manager's Office for approval/disepproval. Once approval has been
secured from the City Manager's Office, the completed .foreclosure referral form will be
forwarded to the City Attorney's Office for legal action against the borrower(s). In the event that
the Depaiftent of Community Development makes a determination that it is not economicaU
feasible to foreclose and take title to the property, the Department of Community Develop= _
will refer the case to the City Attorney's Office for other legal remedies which may include a snit
on;the promissory note and/or personal guarantees. In addition, in those instances whereby the.
City has utilized every available legal remedy to address a defaulted loan account, the City plans
to utilize the services of a private debt collection agency to pursue all fiords which remain
outstanding.
The Department of Community Development will be responsible for working with the City
Attorney's Office in tracking the status of the foreclosure case .from the filing of the complaint,
summary judgment, foreclosure sale, temporary management of the property(ies) by a private
management fum, and disposition to a new property owner. A new position, Default/Loan
Workout Specialist will be assigned the responsibilities of monitoring default loans, make
recommendations with regard to payment stipulations and loan workout agreements.
In addition to the foreclosure actions, the City Attorney's Office will be charged with pursuing
all. legal remedies to cure loan defaults, to safeguard the City's assets and to rccover losses by the
City. These remedies shall include collecting rents through the assignment of rent agreements,
and pursuing personal guarantees to recover losses. Moreover, through the utilization of the
City's newly establi3hed Housing Loan Recovery Fund, the City will make every attempt to
satisfy any superior lien holders which may be ahead of the City's loan, in order to safeguard the
City's asset when possible.
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The City Attorney's Officewill be responsible for the preparation of a quarterly status report on
the stAW of all legal sciions against all borrower(s) for diwauWation to the appropriate
Department, in addition to providing a quarterly status report to the City Commission regarding
the status ofeach foreclosure can.
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