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HomeMy WebLinkAboutR-99-0654J-99-754 8/31/99 • � RESOLUTION NO. 0 40 — I i A RESOLUTION OF THE MIAMI CITY COMMISSION, DIRECTING THE CITY MANAGER TO REVISE THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM GUIDELINES IN CONNECTION WITH THE ASSISTED SINGLE FAMILY RESIDENTIAL, REHABILITATION GRANT/LOAN PROGRAM; FURTHER AUTHORIZING THE CITY MANAGER TO IMPLEMENT AND ADMINISTER THE PROGRAM. WHEREAS, pursuant to Resolution No. 78-141, the City Commission authorized the implementation of the Community Development Block Grant Assistance Single Family Residential Rehabilitation Loan Program ("Program"); and WHEREAS, the Program is designed to encourage neighborhood revitalization and the conservation of the City's existing residential housing stock (1-4 units); and WHEREAS, since 1978 the cost of building materials and construction labor has increased dramatically due to overall inflation and the aftermath of Hurricane Andrew; and WHEREAS, Resolution No. 99-429 passed and adopted the i City's Five Year Consolidated Plan; and WHEREAS, the five year focus of the City's efforts emphasizes a long term homeownership strategy for stabilizing cm- mmms its. MEETING OF SEP Z 1' 1999 aflfi*11010n rk. aI 0 9 `$ the City's predominately residential neighborhoods through the establishment of seven "Homeownership Zones;" and WHEREAS, the need exists to insure that the existing residential housing stock remains safe, decent, sanitary and affordable to both owner occupants, the elderly and renters through various rehabilitation activities; and WHEREAS, the Program is a key element for the revitalization of a substantial number of single family homes that fall below the minimum housing standards, owned by low and moderate income homeowners, who lack the financial capacity or credit worthiness required to obtain home repair financing; and WHEREAS, due to the number of families and individuals living below the poverty level, the number of overcrowded and substandard housing units in the City, the City Commission on June 22, 1999, through Resolution No. 99-429, approved the City Administration's recommendation to modify the Program to provide home improvement assistance to homeowners throughout the City in the form of grants to upgrade properties to safe and sanitary housing standards, and to remedy existing code violations; and WHEREAS, a maximum of $40,000 will be available to homeowner(s) who reside in and maintain their property as a principal residence; and WHEREAS, eligible homeowners will receive a ten year deferred payment loan that will be reduced by ten (10%) percent 2 - per year as long as the homeowners continue to own and occupy the properties; and WHEREAS, if a property is rented or sold during the ten year period, the balance of the loan would be required to be paid to the City on a pro rata basis; and WHEREAS, in the event of death of the eligible homeowner, the heirs to the property would be able to assume the obligation of the original homeowner as long as the heirs occupy the property, and do not sell or rent the property for the remaining period of the deferred payment loan; and WHEREAS, certain revisions to the Program's implementation guidelines are necessary to increase the level of rehabilitation financing available in the form of grants from $15,000 to $40,000 for homeowner(s) to assist in the preservation of the City's existing residential housing stock; 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 directed to revise the City's Community Development Block Grant Assisted Single Family Rehabilitation Grant/Loan Program, and to increase the level of rehabilitation financing assistance available in the form of a grant from $15,000 to $40,000 for eligible homeowner(s) that occupy their home as their principal residence. Section 3. The City Manager is hereby authorized to implement the City's Community Development Block Grant Single Family Residential Rehabilitation Grant/Loan Program in accordance with said guidelines. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.'- PASSED AND ADOPTED this 21st day of September , 1999. JOE CAROLLO, MAYOR in accordance with Miami Code Sec. 2-36, since the Mayor did not indicate nnn— d of this legislation by signing it in the designated plac.-, o: becomes effective with the elapse often (10) da, . ;o regarding same, without the Mayor erci in f1velo, ATTEST: Wa er oetfian, City Clary WALTER J. FOEMAN 'NESS & =� 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. - 4 - J�- G CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 18 TO: The Honorable Mayor and Members of DATE: AUG 3 G FILE the City Commission SUBJECT ' Resolution Approving Revised Single Family Rehabilitation Grant/Loan Program Guidelines FROM jo REFERENCES: D/IdH. Warshaw ENCLOSURES: City Commission Agenda Item City Manager September 14, 1999 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution directing the City Manager to revise the Program guidelines in connection with the implementation of the City's CDBG Assisted Single Family Residential Rehabilitation Grant/Loan Program. The attached resolution further directs the City Manager to implement and administer the aforementioned program in accordance with the said revised Program guidelines. BACKGROUND: In February of 1978, through Resolution No. 78-141, the City Commission approved the implementation of the Community Development Block Grant Program funded Single Family Residential Rehabilitation Loan Program in the City of Miami. The Single Family Rehabilitation Loan Program is designed to encourage neighborhood revitalization and the conservation of the City's existing residential housing stock. Presently, the Program provides financing to owners of single- family properties (1-4 units) throughout the City. A family having a gross income of under fifty (50%) percent of median income for Miami -Dade County is eligible to receive a grant of up to $15,000 to rectify certain hazardous conditions or other code violations. The grant of up to $15.000 is forgiven by the City over a five (5) year period as long as the owner of the single family home continues to reside in the property during this period. Moreover, a family having a gross income up to eighty (80%) percent of median income is eligible to receive a loan to bring the property to safe, decent and sanitary housing standards and to correct all existing code violations. Presently, the loan amount may not exceed $35,000 for a single family home. The rate of interest on the loan is computed on a sliding scale between zero (0%) percent to three (3%) percent, depending on the family's household income. Since 1978, approximately 4,000 single family residential units have been rehabilitated citywide through the Program. At the June 22, 1999 City Commission meeting, through Resolution No.99-429, the City Commission approved the City's proposed Five (5) Year Consolidated Plan for submission to the U.S. Department of Housing and Urban Development. 01 0 1) _ 6 5 While the expansion of homeownership opportunities for very low, low and moderate income families in several of the City's economically distressed neighborhoods, over the next five (5) years will be emphasized through the establishment of seven (7) "Homeownership Zones" in the City, the need to preserve the City's existing residential stock through various housing rehabilitation activities remains equally important. Due to the large number of individuals and households living below the poverty level and the number of overcrowded and substandard housing units in the City, at the June 22, 1999 meeting of the City Commission, the City Administration recommended that the Program be modified to provide home improvement assistance to homeowners throughout the City in the form of a grant. The attached resolution directs the City Manager to revise Program guidelines in connection with the implementation of the City's CDBG assisted Single Family Residential Rehabilitation Grant/Loan Program. A household having a gross income up to eighty (80%) percent of the median income for Miami -Dade County would be eligible to receive home improvement assistance in the form of a grant to bring their property to safe, decent and sanitary housing standards, and to correct all existing code violations. A maximum of up to $40,000 would be available to eligible homeowners that reside and maintain the property as their principal residence. Eligible homeowners would receive a ten (10) year deferred payment loan that would be reduced by ten (10) percent per year, while the family continues to own and occupy the property. If the property is leased or sold during the ten (10) year period, the �t�}emain{ng balance of the deferred payment loan would have to be paid back to the City of Miami. 1IDBB/GCWW//JBH/mb 2 S0 - 6J4 RESOLUTION NO. 78.141 A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT APPLICATION TO THE UNITED STATES DEPARTMENT OF HOUSISG A,'U3 URBAN DEVELOPMENT FOR COM MUHITY DEVELOPMENT FUNDS AS SUMLYI:TED ni PUBLIC BEARING ON IZSRUARY 23. 1978, AT THE SECOND AND FINAL BEARING AND FURTHER AUTHORIZING THE CITY MARAGER TO ACCEPT THE GRANT AND F.SECUTE THE NECESSARY CONTRACTS AND AGItEFJ1ENTS TO IM PLE MiEMTT THE 1978-79 CO3MMUNM DEVELOPMENT PROGRAM - UPON RECEIPT OF TUB GRANT. BE IT RESOLVED BY THE COM^{ISSIOMI OF THE CITY OF NIJAM. FLORIDA: Section 1. The City Manager is hereby authorized to submit a grant application to the United States Department of Housing and Urban Development for proposed Coosmmity Development purposes during 1978-1979. pursuant to the Public Roaring held on February 23, 1978. Section 2. The City Manager, as Chief Administrative Officer for the City of Miami, upon approval of the application by the United States Department of Housing and Urban Development, is hereby authorized to accept the grant and execute the necessary contracts and agreements to implement the 1978-1979 Comonmity Development Program upon receipt of the grant. Pursuant to the Public Nearing held on February 2). 1978. PASSED AND ADOPTED THIS 23rd day of February. 1978. C ERR PREPARED AND APPROVED BY: ASSISTANT CITY Arm?ME D AS TO FORM CO iESS: OX. ili.( CITY ORNEY Maurice A. Perre MAYOR "'DOCUMENT INDEX ITEM NO �-�11 cn-Y COMMISSION MEEnNG OF FEB 331978 new_.. .. .. . 00- �tA RESOLUTION NO. 78.141 A RESOLUTION AUIHORI7ING THE C17T MANAGER TO SUBMIT A GRANT APPLICATION TO THE UNITED STATES DEPART!M OF HOUSING VND URBAN DEVELOPMENT FOR COMMUNITY DEVELOP19= FUNDS AS SULKITTED IN PUBLIC HEARING ON FEBRUARY 23, 1978. AT THE SECOND AND FINAL RZARING AND FURTHER AUTHORIZING THE CITY MANAGER TO ACCEPT THE GRANT AND EEECUTE THE NECESSARY CONTRACTS AND AGAEEKENTS TO IMPLE HEST THE 1978-79 COMMUNITY DEVELOPMENT PROGRA-14 UPON RECEIPT OF THE GRANT. BE IT RESOLVED BY THE COIniISSION OF THE CITY OF ML1MI. FLORIDA: Section 1. The City Manager is hereby authorized to submit a grant application to the United States Department of Housing and Urban Development for proposed Conmunity Development purposes during 1978-1979. pursUsnt to the Public Roaring held an February 23, 1978. Section 2. The City Manager, as Chief Administrative Officer for the City of Miami, upon approval of the application by the United States Department of Housing and Urban Development, is hereby authorized to accept the grant and execute the necessary contracts and agreements to implement the 1978-1979 Community Development Program upon receipt of the grant. pursuant to the Public Hearing held on February 23. 1978. PASSED AND ADOPTED THIS 23rd day of February, 1978. cLG yGIE � C "T&Z ERK PREPARED AND APPROVFJ BY: RO a T M� ASSIMiT CITY ATT014EY D AS O FORN CO LESS: CITY VrORM Maurice A. Ferre MAYOR "DOCUMENT INDEX ITEM NO- - 11 v �i 6 ,A 0 J-99-552 6J22/99 RESOLUTION NO. 9 9 429 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 co-m SSION RSELi::?G OF JOIN 2 2 1999 Rescauum Nc. -.99- 429 L 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 5. 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 Charter and Code provisions. Cl - 2 - 99- 429 LW immediately upon its adoption and signature of the Mayor.-: 6. PASSED AND ADOPTED this 22nd day of June , 1999. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2.36, since the Mgyor did not ind;ca ' ,a arrrova'• o` this legislation by signing it in the designa,e IacE rovidec. S-6 becomes effective with the elapse of t 0) ys m e date crnm,* regarding same, without the Ma r e ercis / ATTEST: �✓ er , eman, City Clerk WALTER J. FOEMAN CITY CLE APP D Tj� RM VO CORRECTNESS% 7Y ATTORNEY W3559:RCL:BSS If the Mayor does not sign this Resolution, it shall become j 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 i the City Commission. )04 i - 3 - zjg- 429 8.,A The Honorable Mayor and J U N 14 1999 Members of the City Commission Five -Year Consolidated � :='= - - Plan �ssv..�r Do d H. Warshaw City Commission Meeting City Manager - June 22, 1999 RECONEWENDATION: 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. 4 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 PARTICKPATION 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 Heating approving the City's Consolidated and Annual Plans: Each Public Hearing included S j - G-54 99-- 429 8,A The Honorable Mayor and J U N 14 1999 " Members of the City Commission Five -Year Consolidated Plan _. r /dH. DoWarshaw City Commission Meeting City Manager June 22, 1999 RECOMN[ENDATION• 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. ,j�- 6 " 4 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 finds. 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 4 99- 429 testimonies from recognized professionals in the areas of 'Housing, 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 inftastructure 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 area 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 heal 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 a - 615 4 99. 429 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 fimding 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 revitalisation 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. POLiICYRECOMMENDA77ONS FOR (?UAU77HOUSING OPPORTVA77= • 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 Revital4adon Districts 2J-p 6-)4 99- 429 • Award bonus points to proposals sponsoring homeownership projects • Modem 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 d 0, 000 per household • Establish a single family owner occupied emergency grantlloan program to meet immediate urgent household needs • Prioritize available public land in the first year of the Five Year Plan to develop in - fall 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 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 ECONOMC 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 S 9" G1) 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 Communhy Revitalization Districa 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. POLICYRECOMME"ATIONS 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 O, ff `-Street Parking to meet the parking requirements of the area, including the acquisition of property 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 ofpublic 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 Revitalisation 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 CDEG 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 S 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 maxims 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 N 1* _ � i' 0 �jV. f.� 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 arse 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 RECOMMRNDA PIONS FOR QUALITY OF LIFE EdFi[ NCEAMN S • 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 Distrim • Prioritize social program proposals to programs for the elderly and youth • Authorize City Departments to implement capital improvement pro, jects. • Prioritize capital improvement funds to projects located in the Community Revitalization Districts • Leverage CDBG public service allocations to insure maximum use of available f tnds (39 G--54 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 City's 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 25L' 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/GCWlDF 99- 429