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HomeMy WebLinkAboutR-98-0500J-98-448 4/20/98 RESOLUTION NO. 9 8- 5 0 0 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ACQUIRE THREE DUPLEXES LOCATED IN THE NARANJA AREA OF MIAMI-DADE COUNTY, FORMERLY OWNED BY CHRISTIAN COM1VfUNITY SERVICE AGENCY; ALLOCATING FUNDS FROM THE FY 1997 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) PROGRAM GRANT (ACCOUNT NO. 194005.590605.6860.94654) IN AN AMOUNT NOT TO EXCEED $200,000.00 FOR THE PROVISION OF HOUSING ASSISTANCE TO VERY LOW INCOME PERSONS WITH HIV/AIDS; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE FOR THE TRANSFER AND OPERATION OF SAID PROPERTIES WITH THE SOUTH FLORIDA JAIL MINISTRIES/AGAPE WOMEN'S CENTER (AGAPE); FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND ANY AMENDMENTS THERETO, WITH CERTAIN TERMS AND CONDITIONS, FOR THE CONVEYANCE OF THE SUBJECT PROPERTIES TO SOUTH FLORIDA JAIL MINISTRIES/AGAPE WOMEN'S CENTER, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, the Housing Opportunities for Persons With AIDS (HOPWA) Program was created under the AIDS Housing Opportunity Act, and revised under the Housing and Community Development Act of 1992; and F1 D CITY colonSION MEETING OF, MAY 2 6 1998 8AlOhaiQII kim 98- 500 WHEREAS, Section 606(d)(2) of the House and Community Development Act of 1992 stipulates that the City of Miami, being the most populous unit of general local government in an eligible metropolitan statistical area (EMSA), not including county government, must be the applicant for the HOPWA Grant and be allocated the related funding; and WHEREAS, the City of Miami has received funding from the U. S. Department of Housing and Urban Development (U.S. HUD) for the implementation of the 1997 HOPWA Program; and WHEREAS, on April 20, 1997, the City Commission, adopted Ordinance No. 11477, which established a special revenue fund entitled "Housing Opportunities for Persons With AIDS (HOPWA) Grant Program FY 1997," and appropriated $8,832,000.00 in funding from U.S. HUD for the implementation and administration of the 1997 HOPWA Program; and WHEREAS, the HOPWA Advisory Board, at its March 16, 1998 meeting recommended that the City use up to $200,000.00 in FY 1997 HOPWA funding to secure, and if necessary, acquire the three (3) duplexes formerly owned by Christian Community Service Agency; and WHEREAS, HOPWA Program funding is available from the City's 1997 HOPWA Program Grant in order to fund said purpose; 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 Commission hereby approves the allocation of funding from the FY 1997 HOPWA Program Grant (Account No. 194005.590605.6860.94654) in an amount not to -2- 98 - 500 exceed $200,000.00, for the purpose of securing and/or acquiring the three (3) duplexes formerly owned by Christian Community Service Agency in the Naranja area of Miami -Dade County (Folio numbers: 30-6934-004-0081, 30-6934-004-106, and 30-6934-004-0092), for the purpose of providing housing assistance to very low income persons living with HIV/AIDS. Section 3. City Manager is hereby authorized to negotiate with South Florida Jail Ministries/AGAPE Women's Center (AGAPE) for the transfer of said duplexes, and is further authorized' to execute the necessary documents, in a form acceptable to the City Attorney, with the South Florida Jail Ministries/AGAPE Women's Center for the conveyance of the subject property. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 26th day of May , 1998. JOE CAROLLO, MAYOR ATTEST: WALTER J. FOEMAN CITY CLERK In accordance with Miami Code Sec. 2.36, since the Mayor did not indicate approval of this legislation by signing it in the designated place (provided, said legislation rrnn ,jecomes effective with the elapse of ten (10) days from the date of Commissicel regarding same, without the Mayor exercveto. W J. Foeman, City Clerk 1/ The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including, but not limited to, those prescribed by applicable City Charter and Code provisions. -3- 98- 500 DEP TMENT ONF COMMUNITY DEVELOPMENT REVI AND OVAL: 1 � � I i i GWtNDOLyT C. WARREN, DIRECTOR OFFICE OF BUDGET AND MANAGEMENT ANALYSIS REVIEW: n Y DIPAK PARE I k CTOR OFFICE OF BUDGET AND MANAGEMENT ANALYSIS REVIEWED AS TO ACCOUNTING AND TREASURY REQUIREMENTS: -Z 4lbES REYES,OMPTROLLER ARTMENT O FINANCE PREPARED AND APPROVED BY: f' LINErA EtELY kARSo ASSISTANT CITY AT rRNEY LKK/pb/W2491 98- 500 CITY OF MIAMI, FLORIDA CA=7 INTER -OFFICE MEMORANDUM To : The Honorable Mayor, Joe Carollo and Members of the City Commission FROM : Jose Garcia -Pedrosa City Manager RECOMMENDATION: DATE : April 30, 1998 FILE : SU&JECT : Resolution Authorizing Acquisition of CCSA Rental REFERENCES: Properties City Commission Agenda Item ENCLOSURES: May 26, 1998 It is respectfully recommended that the City Commission adopt the attached resolution, allocating an amount not to exceed $200,000.00, for the purpose of acquiring three (3) duplexes owned by Christian Community Service Agency (CCSA), located in the Naranja community of Miami -Dade County. The attached resolution further authorizes the City Manager to acquire the subject properties, and to negotiate with the successful HIV/AIDS service provider selected by the HOPWA RFP Review Committee as a result of a request for proposals, for the conveyance and operation of the subject properties, if acquired by the City. Funding for acquisition of the subject properties would be provided from the U.S. Department of Housing and Urban Development (HUD) from the FY 1997 Housing Opportunities for Persons With AIDS (HOPWA) Program. BACKGROUND: In November of 1993, Christian Community Services Agency was awarded a grant in the amount of $569,652.00 from the FY 1993 HOPWA Program, for the acquisition, rehabilitation and operation of three (3) duplexes located in the Naranja area of Miami -Dade County. In October of 1994, the three (3) duplexes were acquired by Christian Community Service Agency and the rehabilitation work was completed in May of 1996. Currently, five (5) of the six (6) units are being occupied by low-income households wherein at least one (1) member has HIV. At the time Christian Community Service Agency acquired the properties, the City incorporated a deed restriction, which required in the event the properties were not used as affordable housing for low-income persons with HIV/AIDS, the said properties would vest in the City. Subsequently, City National Bank provided Christian Community Service Agency a mortgage for the subject properties in the amount of approximately $200,000.00. Although there was no restriction by the City against Christian Community Service Agency mortgaging the properties, it was the City's intent that the housing units would be operated and maintained with a minimal amount of rent payments being charged to the tenants by Christian Community Service Agency. 98- 500 The Honorable Mayor, Joe Carollo and Members of the City Commission April 30, 1998 Page 2 In September of 1997, Christian Community Service Agency ceased to operate and foreclosure proceedings have been instituted by City National Bank. City National Bank, as part of their foreclosure motion, has requested that the court set aside the City's deed restriction and allow the bank to foreclose on the mortgage, thereby, allowing the bank to sell the subject properties without said restriction. Previously, the HOPWA Advisory Board recommended against allocating any additional funds for the project. However, at the March 16, 1998 HOPWA Advisory Board meeting, the Advisory Board expressed a concern relative to not wanting to lose the properties as a result of foreclosure action. Subsequently, a recommendation was proffered by the Advisory Board, which requested that the City allocate up to $200,000.00 in FY 1997 HOPWA Program funds, for the purpose of acquiring the three (3) duplexes from City National Bank. The Advisory Board further recommended that in the event that the subject properties are purchased by the City, the subject properties should be provided to another not -for -profit agency. At the April 20, 1998 HOPWA Board meeting, the Board passed a resolution which requested that the City of Miami solicit proposals from local HIV/AIDS service providers, who would be interested in taking over the operations of the project. The Department of Community Development is in agreement with the HOPWA Advisory Board that the subject properties should continue to be utilized as affordable housing for low-income persons with HIV/AIDS. The attached resolution authorizes the City Manager to offer City National Bank up to $200,000.00 to purchase the first mortgage; however, this offer will be made only if the court rules in favor of the bank, relative to setting aside the deed restriction imposed on the subject properties by the City. The said resolution further directs the City Manager to negotiate with the successful local HIV/AIDS service provider selected by the HOPWA RFP Review Committee as a result of the City's Request for Proposals, for the conveyance and operation of the subject properties. The aforementioned action will only occur in the event the court sets aside the City's deed restriction and the City moves forward to acquire the subject properties from City National Bank prior to the final judgment, with respect to the foreclosure suit. The court hearing has been tentatively scheduled for Tuesday, May 26, 1998. Should the court rule in favor of City National Bank, the City would hive approximately thirty (30) days to cure the foreclosure action. -' Ja JGP/CMC/GCW/JBH:vh c: Gwendolyn C. Warren, Director <shared -memo svh>mayorcc 5 3 9©- 500