HomeMy WebLinkAboutR-98-0583J-98-285
05/18/98
RESOLUTION NO. 9 8- 583
A RESOLUTION ESTABLISHING A MORATORIUM, FOR A
PERIOD OF SIX (6) MONTHS, IN CONNECTION WITH THE
ADMINISTRATION OF THE CITY'S COMMUNITY
DEVELOPMENT BLOCK GRANT ("CDBG") AND HOME
FUNDED MULTI -FAMILY REHABILITATION LOAN
PROGRAMS IN RESPONSE TO THE FINDINGS IDENTIFIED
BY THE U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT'S DISTRICT OFFICE OF THE INSPECTOR
GENERAL ("OIG") IN ITS AUDIT REPORT DATED MARCH 26,
1998 ("AUDIT"); DIRECTING THE CITY MANAGER TO TAKE
THE NECESSARY CORRECTIVE ACTIONS TO ADDRESS
THE FINDINGS AND CONCERNS IDENTIFIED BY THE OIG
IN THE AUDIT.
WHEREAS, since the 1980's, the City of Miami has provided both low interest loans and
grants to owners of multi -family apartment buildings (5 units or more) for the rehabilitation of
substandard rental housing units in the City's Community Development Block Grant ("CDBG")
target areas; and
WHEREAS, pursuant to the City's Multi -family Rehabilitation Loan Programs funded
through the CDBG Program, Rental Rehabilitation Grant Program and HOME Program, the City
has provided approximately $61,900,000 in funds for the rehabilitation of approximately 3,620
substandard rental units in the City's eight CDBG target areas; and
CITY COMUSSION
MEETING OF
JU N 0 9 1998
Resounim No.
98- 583
WHEREAS, the U.S. Department of Housing and Urban Development's District Office of
the Inspector General ("OIG") in its Audit Report dated March 26, 1998, identified several
findings and concerns relating to the City's Multi -family Rehabilitation Loan Programs; and
WHEREAS, in an effort to address the programmatic deficiencies which were identified
by the OIG, it is recommended that a moratorium be imposed on the City's Multi -family
Rehabilitation Loan Programs until such time as the appropriate corrective actions have been
taken and all programmatic deficiencies have been resolved with HUD;
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. A moratorium is hereby imposed. for a period of six (6) months, in connection
with the administration of the City's Multi -family Rehabilitation Loan Programs, until such time
as all programmatic deficiencies which were identified by U.S. Department of Housing and Urban
Development's District Office of the Inspector General ("OIG") in its Audit Report dated March
26, 1998 ("Audit"), are appropriately resolved.
Section 3. The City Manager is hereby directed to take the necessary corrective actions in
order to address the findings and concerns cited by the OIG in the Audit with respect to multi-
family loan underwriting and collection policies and procedures.
Section 4. This Resolution shall become effective immediately upon its adoption.
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98- 583
PASSED AND ADOPTED this 9th day of June
1998.
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 designated place provided, said aegis!-aior ow
becomes effective with the elapse often (10) days from the date of Ccmrr`ss'C,, _..;on
regarding same, without the Mayor exercisi ve
ATTEST:C�`-e�
Walter . m n, City Clerk
WALTER J. FOEMAN
CITY CLERK
PREPARED AND APPROVED BY:
ASSISTANT CITY ATTORNEY
W23 54/csk/LKK
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98- 583
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
27d
To The Honorable Mayor, Joe Carollo and May 8, 1998
TO : DATE: FILE
Members of the City Commission
FROM: Donald H. Warshaw
City Manager
RECOMMENDATION:
SUBJECT: Resolution Establishing Moratorium
for CDBG and HOME Multifamily
Rehabilitation Loan Programs
REFERENCES:
City Commission Agenda
ENCLOSURES: Item - May 26, 1998
It is respectfully recommended that the City Commission adopt the attached resolution,
establishing a moratorium in connection with the administration of the City's CDBG
funded Multi Family Rehabilitation Loan Program and the HOME funded Multi Family
Rehabilitation Loan Program. The moratorium is being recommended by the City
Administration in response to the findings which have been identified by the U.S.
Department of Housing and Urban Development's District Office of the Inspector
General ("OIG") in its audit report dated March 26, 1998.
BACKGROUND:
Since 1980, the City of Miami through the CDBG funded Multifamily Rehabilitation
Loan Program, Rental Rehabilitation Grant Program and the HOME Program, has
provided approximately $61,900,000 to owners of multifamily apartment buildings (5
units or more), for the rehabilitation of substandard rental housing units in the City's
CDBG target areas.
In March of 1998, the U.S. Department of Housing and Urban Development's District
Office of Inspector General, in its audit report dated March 26, 1998, identified numerous
deficiencies in the City's loan underwriting and collection procedures with respect to the
administration of the City's Multifamily Rehabilitation Loan Programs.
In an effort to address the programmatic deficiencies which have been identified by U.S.
HUD's District Office of the Inspector General, it is recommended that a moratorium be
imposed on the City's Multifamily Rehabilitation Loan Programs, until such time that all
the City's proposed corrective actions have been implemented and all programmatic
deficiencies have been resolved with U.S. HUD.
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9 583
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