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HomeMy WebLinkAboutR-99-0429J-99-552 6/22/99 RESOLUTION NO. 9 v 429 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT (S) , AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT APPLICATION AND THE CITY OF MIAMI'S FISCAL YEARS 1999-2004 PROPOSED CONSOLIDATED PLAN "PLAN," RECOMMENDING FUNDING PROJECTIONS FOR THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG"), HOME INVESTMENT PARTNERSHIPS ("HOME"), EMERGENCY SHELTER GRANT ("ESG") AND HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS ("HOPWA") PROGRAMS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (US HUD); AUTHORIZING FUNDING CATEGORIES IN ACCORDANCE WITH SAID PLAN, ATTACHED HERETO AND INCORPORATED HEREIN; FURTHER AUTHORIZING THE CITY MANAGER, UPON APPROVAL OF SAID PLAN AND GRANTS BY US HUD, TO ACCEPT THE SAME AND EXECUTE THE NECESSARY IMPLEMENTING AGREEMENTS WITH USHUD, IN A. FORM ACCEPTABLE TO THE CITY ATTORNEY; REQUIRING THAT APPROVALS AND AUTHORIZATIONS SET FORTH HEREIN SHALL OCCUR ONLY AFTER THE PUBLIC HEARING SCHEDULED FOR JULY 27, 1999. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to submit grant applications and the City of Miami's Fiscal Years 1999-2004 Proposed Consolidated Plan ("Plan"), recommending funding projections for the City's Community Development Block Grant ("CDBG"), HOME Investment Partnership ("HOME"), Emergency CITY Cohn ssloN MEETLNC OF JUN 2 2 1999 Resaludon Pio. 99- 429 I Shelter Grant ("ESG") and Housing Opportunities for Persons with Aids ("HOPWA") Programs to the U.S. Department of Housing and Urban Development (US HUD). Section 2. Funding categories for the implementation of the FY 1999-2004 Community Development Block Grant ("CDBG"), HOME Investment Partnership ("HOME"), Emergency Shelter Grant ("ESG") and Housing Opportunities for Persons with AIDS ("HOPWA") Programs, are hereby authorized in accordance with said Plan, attached hereto and incorporated herein. Section 3. The City Manager is hereby authorized!' upon approval of the Consolidated Plan and grants by US HUD, to accept and execute the necessary implementing agreements, in a form acceptable to the City Attorney. Section 4. The approvals and authorizations set forth herein shall occur only after the public hearing scheduled for July 27, 1999. Section S. This Resolution shall become effective �i 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 f Charter and Code provisions. - 2 - 99- 429 immediately upon its adoption and signature of the Mayor./ PASSED AND ADOPTED this 22nd day of June , 1999. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of this legislation by signing it in the designate lace rovided, said iegisl„tion novi becomes effective with the elapse of t 0) ys m e date cmmio ion a;;Uc, regarding same, without the Mae ercis _ J ATTEST: WALTER J. FOEMAN CITY CLERJ:; f CORRECTNESS KL DRO VILARELLO C Y ATTORNEY W3559:RCL:BSS City Clerk `j 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 - �9- 429 The Honorable Mayor and J U N 14 1999 Members of the City Commission = - Five -Year Consolidated Plan - Do/aldH.Warshaw City Commission Meeting City Manager June 22, 1999 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the following attached legislation relating to the submission of the Five Year Consolidated Plan for Fiscal Years 1999-2004: A proposed resolution authorizing the City Manager to submit the proposed FY-1999- 2004 Consolidated Plan for the use of funds received by the City from the U.S. Department of Housing and Urban Development (HUD) to implement the Community Development Block Grant (CDBG) Program, Home Investment Partnerships (HOME) Program, Emergency Shelter Grant (ESG) Program and the Housing Opportunities for Persons With AIDS (HOPWA) Program, authorizing funding categories for the aforementioned programs in the 25' Year and further authorizing the City Manager, upon approval by HUD of said Plan and grants, to accept the same and execute the necessary implementing agreements with HUD. A proposed ordinance establishing four (4) new Special Revenue Funds for the HUD programs identified in the above proposed resolution and appropriating funds for each of the new Special Revenue Funds. BACKGROUND: The Department of Community Development has prepared the Five Year Consolidated Plan in accordance with federal regulations as stipulated in CFR Part 91, et.al. This statutory requirement consolidates submission of the planning and application process of the City's Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), Home Investment Partnerships (HOME) and Housing Opportunities for Persons With AIDS (HOPWA) formula programs administered by the Department of Community Development. 99- 429 The HUD grants are intended to meet the following three (3) objectives: Enhance quality housing opportunities by increasing the availability of permanent affordable housing for low-income residents, retaining the affordable housing stock and increasing supportive housing to enable persons with special needs to live in dignity. Quality of life enhancements that increase access to quality facilities and services, improve the safety and livability of neighborhoods, restore and preserve natural and physical features of special value for historic or architectural reasons and conserve energy resources. Stimulate economic revitalization to create jobs for low-income persons; provide access to credit for community development that promotes long-term economic and social viability; and empower economically disadvantaged persons to achieve self- sufficiency. The proposed strategic plan defines a specific course of action for the revitalization of the City of Miami's communities and integrates economic, physical, environmental, community and human development needs into a comprehensive and coordinated approach to address these issues. Total population, the percentage of poverty, age of housing, overcrowded housing, and growth lag determine entitlement eligibility. The national objectives include: • providing benefits to low and moderate income families; • aiding in the prevention or elimination of slums or blight; and • meeting other community development needs that have a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. PUBLIC PARTICPIPATION In developing the Consolidated Plan, an extensive Citizen Participation process was conducted that included a series of public meetings at the Citywide Community Development Advisory Board level and District Public Hearings co-chaired by the Chairperson of the Advisory Board and the City Commissioner representing each of the City's five (5) districts. The District Public Hearing concept represents a new approach in the City of Miami's planning process to develop its five year plan for the allocation of HUD funds. For the first time, elected officials were involved in the Citizen Participation process from start to finish, beginning at the neighborhood level and concluding with the Public Hearing approving the City's Consolidated and Annual Plans. Each Public Hearing included 99- 429 testimonies from recognized professionals in the areas of dousing, Economic Development, Public Services and Workforce Development. The Public Hearings also gave neighborhood residents the opportunity to actively participate in the planning process to develop community revitalization strategies to positively impact local neighborhoods. The District Public Hearings clearly pointed to a Citywide need for affordable housing, (particularly homeownership), job creation, expanded social services with an emphasis on programs for the elderly and programs for youth, a concern for public safety, increased park programs and infrastructure improvements. COMMUNITY REVITALIZATION DISTRICTS It also became apparent through the public hearing process and analysis of available data that the composition of the City of Miami has dramatically changed over the twenty-four (24) year history of the City's entitlement Programs. When the City of Miami was designated an entitlement city in 1974, the initial HUD allocation was based on eligibility factors determined by the 1970 census. At that time, the City Commission designated eight (8) areas with the largest pockets of poverty as "CDBG Target Areas". The designated target areas included: Coconut Grove, Little Havana, Downtown, Overtown, Wynwood, Allapattah, Edison/Little River and Model City. The City Commission has chosen historically to allocate these funds to eight designated target areas that have traditionally represented the most severely stressed areas of the City. In the twenty-five years since this designation, except for minor modifications, the target area boundaries have remained basically the same and entitlement allocations have been restricted to these areas. Through the lifetime of the entitlement program, the state of the City has dramatically changed. These changes did not occur overnight. In 1999, those areas that may have been considered middle class in the 1970's have deteriorated through the 1980's and 1990's. The housing stock has grown old and so has the general population. The City's population base has also been transient and the homeownership rate staggers substantially below the national, state and county averages. The City of Miami has been the center for refugee flight in the 1980's and 1990's from Cuba, Haiti, and various parts of South and Central America. In the 1980's, the streets of Miami were also the scenes of civil unrest and riots. Through a combination of these factors, Miami has evolved into a City rated as the fourth poorest City in the nation according to statistics derived from the 1990 Census and, according to updated mid -decade data from HUD, the 1995 poverty rate for the City has increased by 10%. It is time to recognize those changes and revise the target area funding strategies that have been used in the past. Through a coordinated effort of the Departments of Community Development, Planning and Development and Real Estate and Economic Development, a Study Group was formed and has been operating for almost 8 months. The Group's assessment of the City's history in utilizing HUD funding resulted in the development of strategies to more 99- 429 aggressively respond to fulfilling the three goals of quality housing apportunities, quality of life enhancements and economic revitalization. The Group considered the present dynamics, demographics and environments of the City of Miami's distressed neighborhoods in reaching a conclusion. In weighing the strengths and weaknesses demonstrated in the history of the use of HUD funding, it was determined that there is a need to reassess and reevaluate the distribution of these funds. The pockets of poverty in the City have expanded and, twenty-five years later, it is time to also focus on these new areas that have previously been neglected. The concept of Community Revitalization Districts was developed to establish a meaningful investment of the residents through homeownership, which also translated into the need for goods and services conveniently available in the neighborhood to open a window for economic opportunity. The use of HUD funding is critical to provide a catalyst to propel change in the City's most impoverished neighborhoods by reducing the isolation of income groups within areas by increasing housing opportunities for low and middle -income persons and revitalizing deteriorating neighborhoods through quality of life enhancements and economic revitalization. These Districts will be the focus of intensive efforts to foster economic development, increased home ownership, and improved overall neighborhood quality. Specific initiatives within each Community Revitalization District will be developed based on the condition of the housing stock, ownership patterns, clustering potential of vacant land, market conditions, transportation conditions, and infrastructure and other needs for both the Homeownership Zone and the Economic Opportunity Zone. The goal is to engender viable and visible economic revitalization benefits in these Districts and promote intensive redevelopment to attract and retain businesses. Particular emphasis will be focussed on businesses that can supply unskilled, low skill and semi -skilled employment opportunities consistent with the existing and developing skills of the unemployed and underemployed. This should result in the reduction of unemployment and underemployment in and around these Districts. In the appropriate sections of this Plan, recommendations and policies for the disposition of the identified individual and clusters of properties will be suggested that will encourage the development of affordable housing, the revitalization of commercial corridors and the development of green and open spaces. The Plan also focuses on encouraging middle -income residents to relocate in the City, especially individuals employed by the City of Miami. The Plan provides financial incentives aimed at reintegrating middle -income residents back into the City and into the Community Revitalization Districts and/or historic districts. The Plan proposes a proactive approach to address the quality of life issues in the Community Revitalization Districts. Because of the limited funds available for programs, service providers will be encouraged to coordinate their efforts and in many instances provide their services from a central location in the City parks. Cooperative efforts will 99- 429 insure that all -available resources will be used to provide quality of -life enhancements in the Districts, such as affordable daycare, access to healthcare, access to early childhood education, and a substantial reduction in crime through targeted investments in community policing activities and investments in youth activities. The City will expand its legislative agenda to include improved transportation, the preservation of open space and other issues affecting the Districts. The City will also research grant sources for additional funding for quality of life programs and provide assistance and support to community based agencies in identifying additional funding sources and assist in the preparation of the application for those funds. HOME OWNERSHIP ZONES The establishment of Homeownership Zones in contiguous, geographically defined areas within Community Revitalization Districts, together with other physical, social, and economic development activities, makes a substantial, visible improvement in that community. The goal is to revitalize distressed areas by converting vacant, abandoned or blighted land and buildings into dynamic - neighborhoods by developing single family homes for families with a mix of incomes, including low -and moderate -income families. This creates a foundation for bringing back commercial reinvestment and more, because new owners create demand for neighborhood economic activities, such as grocery stores and other retail. Since the CDBG target areas are no longer the only distressed areas, the Study Group developed conditions relative to levels of income and the percentage of homeownership throughout the City to establish the areas where reinvestment would create the most dramatic changes. Two benchmarks were established to measure these conditions: 1. A household income of less than 50% of the county median 2. A home ownership rate of less than 20%. Clusters of publicly owned land in the Community Revitalization Districts will be identified to serve as the starting point for infill housing and commercial development initiatives, as well as green space/open space initiatives. The development of city -owned properties, along with an effort to acquire or assist in the acquisition of adjacent privately -held properties and the improvement of existing properties through code enforcement, community policing and maintenance incentives, will serve as a catalyst in the revitalization efforts. POLICY RECOMMENDATIONS FOR Q UALITY HO USING OPPORTUNITIES • Establish homeownership as a funding priorityfor the allocation of HUD funds • Prioritize the allocation of HUD funds to projects located in the Homeownership Zones of the Community Revitalization Districts 99-- 429 • Award bonus points to proposals sponsoring homeownership projects • Mods the Single Family Rehabilitation Program for homeowners from a loan program to a grant program • Increase the maximum assistance available through the Single Family Rehabilitation Program from $35, 000 to 40, 000 per household • Establish a single family owner occupied emergency grant/loan program to meet immediate urgent household needs • Prioritize available public land in the first year of the Five Year Plan to develop in - fill affordable homeownership projects in the Homeownership Zones of the Community Revitalization Districts • Establish an Affordable Housing .Land Disposition Policy that provides public land at no cost to develop affordable housingprojects • Establish a lease/purchase program for economically disadvantaged families • Establish a homebuyer's counseling program • Establish Homeownership Incentive Programs to attract City employees and middle income families to relocate in the City of Miami • Establish an Affordable Housing Finance Committee to explore prospective financing mechanisms for the production of affordable housing ECONOMIC OPPORTUNITY ZONES Considerable effort will be devoted to businesses in the Economic Opportunity Zones. A wide variety of services will be provided by the City's Business Assistance Center, including the review of business operating systems, development of business plans, marketing plans, budget analysis, accounting and risk -management procedures, insurance and bonding procedures, inventory control, personnel management and customer relations. The recruitment of new businesses will be a strong focus with up front assistance in putting together business plans, loan applications, personnel screening and all other requirements in opening a new business. Fagade improvement, sidewalk repairs, new signage, parking and coordination with the County in road improvements will be provided. A coordinated effort to provide a "marketing theme" for the business corridor will be explored and the development of a joint marketing campaign to bring new customers to the Districts will be planned. "those businesses outside of the Districts who are pledging employment for District residents will receive financial incentives such as 108 loans, and others. The City's Office of Workforce Development, through its One -Stop Centers will be the source for training and job placement. Additionally, a corps of job developers in each Center is involved in creating jobs for the very low, low and moderate -income residents in the Districts. The Office of Workforce Development will utilize the City's First Source Hiring Ordinance in generating job opportunities for District residents and will work with 99- 429 the Empowerment Zone Trust in assisting residents living in -Districts within the Empowerment Zone to access the thousands of jobs pledged for Zone residents. The Five -Year Consolidated Plan recognizes the growth opportunities in the older more urban corridors of the City and the development of the Community Revitalization Districts is the focus of that growth potential. The assets of these Districts include existing infrastructure; the opportunity for land assembly and residential development; access to transportation and proximity to jobs; the business and cultural center; an underutilized workforce; and proximity to the area's natural beauty. In implementing the strategies of the Five -Year Consolidated Plan, the City expects to build alliances with a broad range of partners including the business sector, developers, community -based organizations, government, environmentalists and community residents. These entities can unify to support a new approach to revitalizing our communities. POLICY RECOMMENDATIONS TO EXPAND ECONOMIC OPPORTUNITIES • Provide financial assistance to the City of Miami Public Works Department to upgrade the infrastructure of the Economic Opportunity Zones • Work with the Department of Off -Street Parking to meet the parking requirements of the area, including the acquisition ofproperty to be used for parking • Provide access to training and entrepreneurial opportunities through the One Stop Centers, including supportive services leading to self sufficiency POLICY RECOMMENDATIONS TO EXPAND ECONOMIC OPPORTUNITIES (CONTINUED) • Provide large scale renovation along strategic commercial corridors by creating incentives to improve the visual appearance of business properties (fapade renovation, including painting, signage, awnings, storefront improvements, landscaping, lighting and other design elements) • Hire economic development professionals or contract outside consultants to provide technical assistance to new and existing businesses • Provide low interest loans for physical improvements to upgrade storefronts, resolve code violations and purchase equipment for businesses located in the Economic Opportunity Zones • Advocate the promotion of public transportation as a legislative priority to access to job centers located outside of the City 99- 429 UALITY OF LIFE ENHANCEMENTS As the City of Miami develops targeted Community Revitalization Districts to create homeownership opportunities, economic stability through the strengthening of local businesses that provide services and jobs for neighborhood residents and skills training to prepare residents to successfully compete for these jobs, quality of life enhancements provide the final link to changed lives. This includes public service and capital improvement projects, such as street repairs, sidewalk replacements, park and public facilities to complement the physical and economic development activities in the Community Revitalization Districts. The City of Miami has been successful in its efforts to increase the 15% cap restriction for public services. Congress adopted legislation increasing the City of Miami's CDBG public services cap to 25% for a three (3) year period. The 10% increase in the public services cap must be used to provide services to persons impacted by welfare reform. This waiver will increase available funding that may be directed to public services by approximately $1.2 million annually for the next three (3) years. In addition to public services, the Plan includes quality of life enhancements through projects in what have been traditionally classified in the category identified as Public Facilities in previous Annual Action Plans. This includes capital improvement projects such as the completion of street repairs, replacement of sidewalks and improvements in parks and public facilities These programs must create an environment that addresses the needs of the neighborhood while simultaneously caring for its aging population and also providing opportunities for its future generation to succeed. While the piecemeal approach of allocating quality of life enhancement projects in the past may have been effective at minimally addressing specific needs in particular target areas, these projects, as effective, successful and beneficial as they may have been in providing services to the neighborhood, have not necessarily revitalized the City's impoverished communities. A comprehensive approach to meeting the quality of life needs in the Community Revitalization Districts is crucial to complement the physical and economic development activities to effectively improve the quality of life for the City's neediest residents. The proposed Community Revitalization Districts have been created to provide opportunities to make substantive changes in depressed areas of the City. It is essential to develop a coordinated approach to change the traditional cycle of poverty and maximize the use of available resources. A common concern identified in the public hearing process has been that City parks lack programs. Rather, than providing youth with opportunities to participate in recreational activities, the programless City parks have created an environment that spawns gang activity and illegal drug use and distribution. To compound this predicament, bond funds 99- 429 are available to make physical improvements in the parks and modernize or construct new facilities, but funding is still not available to provide viable programs in these parks. Creative approaches must be implemented to resolve this situation and make City parks places where viable programs are operating, citizens are utilizing these programs and the criminal element is forced to move elsewhere. There are obvious quality of life needs and limited funding is available to meet these needs. At the same time, City parks remain programless. It makes sense to fund social service agencies that can fill that void. If funds are available to make capital improvements in the parks, then it is logical to identify community based organizations providing essential services to operate these programs in City parks. This includes a full range of services that may include programs for the elderly or programs directed to youth. Active programs in the City parks will promote community residents to utilize neighborhood facilities while at the same time serving as a deterrent to crime in the community. This strategy can be instrumental in effecting quality of life standards in the Community Revitalization Districts. The basic concept is to promote proposals that will make the City's parks viable community based centers of activity. The concept is a win -win situation for the community -based organizations providing services in the City parks. Not only do these organizations receive public service funding, but there is also a tremendous opportunity to reduce operating costs. HUD funds for capital improvement projects must also be maximized to complete the quality of life cycle in the Community Revitalization Districts. This includes a strategy that specifically directs HUD dollars to improve streets, replace sidewalks and improve public facilities that enhance the quality of life for residents of the Community Revitalization Districts. POLICY RECOMMENDATIONS FOR Q UALITY OF LIFE ENHANCEMENTS • Allocate the maximum allowable 25% to public service programs • Award bonus points to Agencies proposing to operate programs in Cityparks • Award bonus points to proposals including coordinated services (elderly programs, youth programs, childcare etc) • Award bonus points to proposals establishing partnerships to provide coordinated, diverse services • Award bonus points to proposals serving the Community Revitalization Districts • Prioritize social program proposals to programs for the elderly and youth • Authorize City Departments to implement capital improvement projects. • Prioritize capital improvement funds to projects located in the Community Revitalization Districts • Leverage CDBG public service allocations to insure maximum use of available funds 99- 429 • Ensure that available Empowerment Zone funds meet social -service needs in the Community Revitalization Districts • Provide letters of support to community based organizations seeking outside funding • Refer community based organizations to appropriate funding sources • Recognize quality of life enhancement needs in developing the Citys Legislative Agenda • Actively research grant sources for community based agencies to apply for funding and provide technical assistance to prepare grant applications • Co-sponsor social service grants with community based organizations ,Therefore, it is respectfully requested that the proposed ordinance and resolution be adopted authorizing the City Manager to submit the FY-1999-2004 Consolidated Plan for the use of funds received by the City from the U.S. Department of Housing and Urban Development (HUD) to implement the Community Development Block Grant (CDBG) Program, Home Investment Partnerships (HOME) Program, Emergency Shelter Grant (ESG) Program and the Housing Opportunities for Persons With Aids (HOPWA) Program, establishes funding categories for the aforementioned programs in the 25' Year, authorizes the City Manager to accept and execute the necessary implementing agreements upon approval by HUD and establishes four (4) new Special Revenue Funds for the HUD programs as identified above. DHW/DB/GCW/DF 99- 429 The Honorable Mayor and J U N 14 1999 Members of the City Commission - Five -Year Consolidated Plan /aldH. DoWarshaw City Commission Meeting City Manager June 22, 1999 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the following attached legislation relating to the submission of the Five Year Consolidated Plan for Fiscal Years 1999-2004: A proposed resolution authorizing the City Manager to subn-dt the proposed FY-1999- 2004 Consolidated Plan for the use of funds received by the City from the U.S. Department of Housing and Urban Development (HUD) to implement the Community Development Block Grant (CDBG) Program, Home Investment Partnerships (HOME) Program, Emergency Shelter Grant (ESG) Program and the Housing Opportunities for Persons With AIDS (HOPWA) Program, authorizing funding categories for the aforementioned programs in the 25`h Year and further authorizing the City Manager, upon approval by HUD of said Plan and grants, to accept the same and execute the necessary implementing agreements with HUD. A proposed ordinance establishing four (4) new Special Revenue Funds for the HUD programs identified in the above proposed resolution and appropriating funds for each of the new Special Revenue Funds. BACKGROUND: The Department of Community Development has prepared the Five Year Consolidated Plan in accordance with federal regulations as stipulated in CFR Part 91, et.al. This statutory requirement consolidates submission of the planning and application process of the City's Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), Home Investment Partnerships (HOME) and Housing Opportunities for Persons With AIDS (HOPWA) formula programs administered by the Department of Community Development. 99- 429 The HUD grants are intended to meet the following three (3) objectives: • Enhance quality housing opportunities by increasing the availability of permanent affordable housing for low-income residents, retaining the affordable housing stock and increasing supportive housing to enable persons with special needs to live in dignity. • Quality of life enhancements that increase access to quality facilities and services, improve the safety and livability of neighborhoods, restore and preserve natural and physical features of special value for historic or architectural reasons and conserve energy resources. •� Stimulate economic revitalization to create jobs for low-income persons; provide access to credit for community development that promotes long-term economic and social viability; and empower economically disadvantaged persons to achieve self- sufficiency. The proposed strategic plan defines a specific course of action for the revitalization of the City of Miami's communities and integrates economic, physical, environmental, community and human development needs into a comprehensive and coordinated approach to address these issues. Total population, the percentage of poverty, age of housing, overcrowded housing, and growth lag determine entitlement eligibility. The national objectives include: providing benefits to low and moderate income families; aiding in the prevention or elimination of slums or blight; and meeting other community development needs that have a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. PUBLIC PARTICPIPATION In developing the Consolidated Plan, an extensive Citizen Participation process was conducted that included a series of public meetings at the Citywide Community Development Advisory Board level and District Public Hearings co-chaired by the Chairperson of the Advisory Board and the City Commissioner representing each of the City's five (S) districts. The District Public Hearing concept represents a new approach in the City of Miami's planning process to develop its five year plan for the allocation of HUD funds. For the first time, elected officials were involved in the Citizen Participation process from start to finish, beginning at the neighborhood level and concluding with the Public Hearing approving the City's Consolidated and Annual Plans. Each Public Hearing included 99- 429 testimonies from recognized professionals in the areas of mousing, Economic Development, Public Services and Workforce Development. The Public Hearings also gave neighborhood residents the opportunity to actively participate in the planning process to develop community revitalization strategies to positively impact local neighborhoods. The District Public Hearings clearly pointed to a Citywide need for affordable housing, (particularly homeownership), job creation, expanded social services with an emphasis on programs for the elderly and programs for youth, a concern for public safety, increased park programs and infrastructure improvements. COMIMIUNITY REVITALIZATION DISTRICTS It also became apparent through the public hearing process and analysis of available data that the composition of the City of Miami has dramatically changed over the twenty-four (24) year history of the City's entitlement Programs. When the City of Miami was designated an entitlement city in 1974, the initial HUD allocation was based on eligibility factors determined by the 1970 census. At that time, the City Commission designated eight (8) areas with the largest pockets of poverty as "CDBG Target Areas". The designated target areas included: Coconut drove, Little Havana, Downtown, Overtown, Wynwood, Allapattah, Edison/Little River and Model City. The City Commission has chosen historically to allocate these funds to eight designated target areas that have traditionally represented the most severely stressed areas of the City. In the twenty-five years since this designation, except for minor modifications, the target area boundaries have remained basically the same and entitlement allocations have been restricted to these areas. Through the lifetime of the entitlement program, the state of the City has dramatically changed. These changes did not occur overnight. In 1999, those areas that may have been considered middle class in the 1970's have deteriorated through the 1980's and 1990's. The housing stock has grown old and so has the general population. The City's population base has also been transient and the homeownership rate staggers substantially below the national, state and county averages. The City of Miami has been the center for refugee flight in the 1980's and 1990's from Cuba, Haiti, and various parts of South and Central America. In the 1980's, the streets of Miami were also the scenes of civil unrest and riots. Through a combination of these factors, Miami has evolved into a City rated as the fourth poorest City in the nation according to statistics derived from the 1990 Census and, according to updated mid -decade data from HUD, the 1995 poverty rate for the City has increased by 10%. It is time to recognize those changes and revise the target area funding strategies that have been used in the past. Through a coordinated effort of the Departments of Community Development, Planning and Development and Real Estate and Economic Development, a Study Group was formed and has been operating for almost 8 months. The Group's assessment of the City's history in utilizing HUD funding resulted in the development of strategies to more 99- 429 A aggressively respond to fulfilling the three goals of quality housing opportunities, quality of life enhancements and economic revitalization. The Group considered the present dynamics, demographics and environments of the City of Miami's distressed neighborhoods in reaching a conclusion. In weighing the strengths and weaknesses demonstrated in the history of the use of HUD funding, it was determined that there is a need to reassess and reevaluate the distribution of these funds. The pockets of poverty in the City have expanded and, twenty-five years later, it is time to also focus on these new areas that have previously been neglected. The concept of Community Revitalization Districts was developed to establish a meaningful investment of the residents through homeownership, which also translated into the need for goods and services conveniently available in the neighborhood to open a window for economic opportunity. The use of HUD funding is critical to provide a catalyst to propel change in the City's most impoverished neighborhoods by reducing the isolation of income groups within areas by increasing housing opportunities for low and middle -income persons and revitalizing deteriorating neighborhoods through quality of life enhancements and economic revitalization. These Districts will be the focus of intensive efforts to foster economic development, increased home ownership, and improved overall neighborhood quality. Specific initiatives within each Community Revitalization District will be developed based on the condition of the housing stock, ownership patterns, clustering potential of vacant land, market conditions, transportation conditions, and infrastructure and other needs for both the Homeownership Zone and the Economic Opportunity Zone. The goal is to engender viable and visible economic revitalization benefits in these Districts and promote intensive redevelopment to attract and retain businesses. Particular emphasis will be focussed on businesses that can supply unskilled, low skill and semi -skilled employment opportunities consistent with the existing and developing skills of the unemployed and underemployed. This should result in the reduction of unemployment and underemployment in and around these Districts. In the appropriate sections of this Plan, recommendations and policies for the disposition of the identified individual and clusters of properties will be suggested that will encourage the development of affordable housing, the revitalization of commercial corridors and the development of green and open spaces. The Plan also focuses on encouraging middle -income residents to relocate in the City, especially individuals employed by the City of Miami. The Plan provides financial incentives aimed at reintegrating middle -income residents back into the City and into the Cornmunh), Revitalization Districts and/or historic districts. The Plan proposes a proactive approach to address the quality of life issues in the Community Revitalization Districts. Because of the limited funds available for programs, service providers will be encouraged to coordinate their efforts and in many instances provide their services from a central location in the City parks. Cooperative efforts will 99-- 429 insure that all -available resources will be used to provide quality of -life enhancements in the Districts, such as affordable daycare, access to healthcare, access to early childhood education, and a substantial reduction in crime through targeted investments in community policing activities and investments in youth activities. The City will expand its legislative agenda to include improved transportation, the preservation of open space and other issues affecting the Districts. The City will also research grant sources for additional funding for quality of life programs and provide assistance and support to community based agencies in identifying additional funding sources and assist in the preparation of the application for those funds. HOME OWNERSHIP ZONES The establishment of Homeownership Zones in contiguous, geographically defined areas within Community Revitalization Districts, together with other physical, social, and economic development activities, makes a substantial, visible improvement in that community. The goal is to revitalize distressed areas by converting vacant, abandoned or blighted land and buildings into dynamic neighborhoods by developing single family homes for families with a mix of incomes, including low -and moderate -income families. This creates a foundation for bringing back commercial reinvestment and more, because new owners create demand for neighborhood economic activities, such as grocery stores and other retail. Since the CDBG target areas are no longer the only distressed areas, the Study Group developed conditions relative to levels of income and the percentage of homeownership throughout the City to establish the areas where reinvestment would create the most dramatic changes. Two benchmarks were established to measure these conditions: 1. A household income of less than 50% of the county median 2. A home ownership rate of less than 20%. Clusters of publicly owned land in the Community Revitalization Districts will be identified to serve as the starting point for infill housing and commercial development initiatives, as well as green space/open space initiatives. The development of city -owned properties, along with an effort to acquire or assist in the acquisition of adjacent privately -held properties and the improvement of existing properties through code enforcement, community policing and maintenance incentives, will serve as a catalyst in the revitalization efforts. POLICY RECOMMENDA TIONS FOR Q UALITY HO MING OPPORTUNITIES Establish home ownership as a funding priorityfor the allocation of HUD funds Prioritize the allocation of HUD funds to projects located in the Homeownership Zones of the Community Revitalization Districts 99- 429 • Award bonus points to proposals sponsoring homeownership projects • Modify the Single Family Rehabilitation Program for homeowners from a loan program to a grant program • Increase the maximum assistance available through the Single Family Rehabilitation Program from $35, 000 to 40, 000 per household • Establish a single family owner occupied emergency grant/loan program to meet immediate urgent household needs • Prioritize available public land in the first year of the Five Year Plan to develop in - fill affordable homeownership projects in the Homeownership Zones of the Community Revitalization Districts • Establish an Affordable Housing Land Disposition Policy that provides public land at no cost to develop affordable housing projects • Establish a leaselpurchase program for economically disadvantaged families • Establish a homebuver's counseling program • Establish Homeownership Incentive Programs to attract City employees and middle income families to relocate in the City of Miami • Establish an Affordable Housing Finance Committee to explore prospective financing mechanisms for the production of affordable housing ECONOMIC OPPORTUNITY ZONES Considerable effort will be devoted to businesses in the Economic Opportunity Zones. A wide variety of services will be provided by the City's Business Assistance Center, including the review of business operating systems, development of business plans, marketing plans, budget analysis, accounting and risk -management procedures, insurance and bonding procedures, inventory control, personnel management and customer relations. The recruitment of new businesses will be a strong focus with up front assistance in putting together business plans, loan applications, personnel screening and all other requirements in opening a new business. Fagade improvement, sidewalk repairs, new signage, parking and coordination with the County in road improvements will be provided. A coordinated effort to provide a "marketing theme" for the business corridor will be explored and the development of a joint marketing campaign to bring new customers to the Districts will be planned. Those businesses outside of the Districts who are pledging employment for District residents will receive financial incentives such as 108 loans, and others. The City's Office of Workforce Development, through its One -Stop Centers will be the source for training and job placement. Additionally, a corps of job developers in each Center is involved in creating jobs for the very low, low and moderate -income residents in the Districts. The Office of Workforce Development will utilize the City's First Source Hiring Ordinance in generating job opportunities for District residents and will work with 99- 4 �9 the Empowerment Zone Trust in assisting residents living in -Districts within the Empowerment Zone to access the thousands of jobs pledged for Zone residents. The Five -Year Consolidated Plan recognizes the growth opportunities in the older more urban corridors of the City and the development of the Community Revitalization Districts is the focus of that growth potential. The assets of these Districts include existing infrastructure; the opportunity for land assembly and residential development; access to transportation and proximity to jobs; the business and cultural center; an underutilized workforce; and proximity to the area's natural beauty. In implementing the strategies of the Five -Year Consolidated Plan, the City expects to build alliances with a broad range of partners including the business sector, developers, community -based organizations, government, environmentalists and community residents. These entities can unify to support a new approach to revitalizing our communities. POLICY RECOMMENDATIONS TO EXPAND ECONOMIC OPPORTUNITIES • Provide financial assistance to the City of Miami Public Works Department to upgrade the infrastructure of the Economic Opportunity Zones • Work with the Department of Off -Street Parking to meet the parking requirements of the area, including the acquisition ofproperty to be used for parking • Provide access to training and entrepreneurial opportunities through the One Stop Centers, including supportive services leading to selfsufflciency POLICY RECOMMENDATIONS TO EXPAND ECONOMIC OPPORTUNITIES (CONTINUED) • Provide large scale renovation along strategic commercial corridors by creating incentives to improve the visual appearance of business properties favade renovation, including painting, signage, awnings, storefront improvements, landscaping, lighting and other design elements) • Hire economic development professionals or contract outside consultants to provide technical assistance to new and existing businesses • Provide low interest loans for physical improvements to upgrade storefronts, resolve code violations and purchase equipment for businesses located in the Economic Opportunity Zones • Advocate the promotion of public transportation as a legislative priority to access to job centers located outside of the City 99- 429 QUALITY OF LIFE ENHANCEMENTS As the City of Miami develops targeted Community Revitalization Districts to create homeownership opportunities, economic stability through the strengthening of local businesses that provide services and jobs for neighborhood residents and skills training to prepare residents to successfully compete for these jobs, quality of life enhancements provide the final link to changed lives. This includes public service and capital improvement projects, such as street repairs, sidewalk replacements, park and public facilities to complement the physical and economic development activities in the Community Revitalization Districts. The City of Miami has been successful in its efforts to increase the 15% cap restriction for public services. Congress adopted legislation increasing the City of Miami's CDBG public services cap to 25% for a three (3) year period. The 10% increase in the public services cap must be used to provide services to persons impacted by welfare reform. This waiver will increase available funding that may be directed to public services by approximately $1.2 million annually for the next three (3) years. In addition to public services, the Plan includes quality of life enhancements through projects in what have been traditionally classified in the category identified as Public Facilities in previous Annual Action Plans. This includes capital improvement projects such as the completion of street repairs, replacement of sidewalks and improvements in parks and public facilities These programs must create an environment that addresses the needs of the neighborhood while simultaneously caring for its aging population and also providing opportunities for its future generation to succeed. While the piecemeal approach of allocating quality of life enhancement projects in the past may have been effective at minimally addressing specific needs in particular target areas, these projects, as effective, successful and beneficial as they may have been in providing services to the neighborhood, have not necessarily revitalized the City's impoverished communities. A comprehensive approach to meeting the quality of life needs in the Community Revitalization Districts is crucial to complement the physical and economic development activities to effectively improve the quality of life for the City's neediest residents. The proposed Community Revitalization Districts have been created to provide opportunities to make substantive changes in depressed areas of the City. It is essential to develop a coordinated approach to change the traditional cycle of poverty and maximize the use of available resources. A common concern identified in the public hearing process has been that City parks lack programs. Rather, than providing youth with opportunities to participate in recreational activities, the programless City parks have created an environment that spawns gang activity and illegal drug use and distribution. To compound this predicament, bond funds 99429 are available to make physical improvements in the parks and modernize or construct new facilities, but funding is still not available to provide viable programs in these parks. Creative approaches must be implemented to resolve this situation and make City parks places where viable programs are operating, citizens are utilizing these programs and the criminal element is forced to move elsewhere. There are obvious quality of life needs and limited funding is available to meet these needs. At the same time, City parks remain programless. It makes sense to fund social service agencies that can fill that void. If funds are available to make capital improvements in the parks, then it is logical to identify community based organizations providing essential services to operate these programs in City parks. This includes a full range of services that may include programs for the elderly or programs directed to youth. Active programs in the City parks will promote community residents to utilize neighborhood facilities while at the same time serving as a deterrent to crime in the community. This strategy can be instrumental in effecting quality of life standards in the Community Revitalization Districts. The basic concept is to promote proposals that will make the City's parks viable community based centers of activity. The concept is a win -win situation for the community -based organizations providing services in the City parks. Not only do these organizations receive public service funding, but there is also a tremendous opportunity to reduce operating costs. HUD funds for capital improvement projects must also be maximized to complete the quality of life cycle in the Community Revitalization Districts. This includes a strategy that specifically directs HUD dollars to improve streets, replace sidewalks and improve public facilities that enhance the quality of life for residents of the Community Revitalization Districts. POLICY RECOMMENDATIONS FOR Q UALITY OF LIFE ENHANCEMENTS • Allocate the maximum allowable 25% to public service programs • Award bonus points to Agencies proposing to operate programs in City parks • Award bonus points to proposals including coordinated services (elderly programs, youth programs, childcare etc.) • Award bonus points to proposals establishing partnerships to provide coordinated, diverse services • Award bonus points to proposals serving the Community Revitalization Districts • Prioritize social program proposals to programs for the elderly and youth • Authorize City Departments to implement capital improvement projects. • Prioritize capital improvement funds to projects located in the Community Revitalization Districts • Leverage CDBG public service allocations to insure maximum use of available funds 99- 429 • Ensure that available Empowerment Zone funds meet social -service needs in the Community Revitalization Districts • Provide letters of support to community based organizations seeking outside funding • Refer community based organizations to appropriate funding sources • Recognize quality of life enhancement needs in developing the Citys Legislative Agenda • Actively research grant sources for community based agencies to apply for funding and provide technical assistance to prepare grant applications • Co-sponsor social service grants with community based organizations Therefore, it is respectfully requested that the proposed ordinance and resolution be adopted authorizing the City Manager to submit the FY-1999-2004 Consolidated Plan for the use of funds received by the City from the U.S. Department of Housing and Urban Development (HUD) to implement the Community Development .Block Grant (CDBG) Program, Horne Investment Partnerships (HOME) Program, Emergency Shelter Grant (ESG) Program and the Housing Opportunities for Persons With Aids (HOPWA) Program, establishes funding categories for the aforementioned programs in the 25' Year, authorizes the City Manager to accept and execute the necessary implementing agreements upon approval by HUD and establishes four (4) new Special Revenue Funds for the HUD programs as identified above. DHW/DB/GCW/DF 9 9 - 442fo