HomeMy WebLinkAboutR-98-0584J-98-286
05/11/98
RESOLUTION NO. 84
A RESOLUTION AUTHORIZING AND DIRECTING THE
CITY MANAGER TO ENGAGE THE SERVICES OF AN
INDEPENDENT CONSULTANT TO PERFORM A PROJECT
ANALYSIS OF THE NORTHWESTERN ESTATES HOUSING
PROJECT IN RESPONSE TO THE CONCERNS AND ISSUES
CITED BY THE U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT'S DISTRICT OFFICE OF THE
INSPECTOR GENERAL IN ITS AUDIT REPORT DATED
MARCH 26, 1998, FOR A FEE NOT TO EXCEED $10,000,
WITH FUNDS THEREFOR BEING AVAILABLE IN THE
HOME INVESTMENT PARTNERSHIP PROGRAM,
ACCOUNT NOS. 198001.630101.6.270 AND
198006.630101.6.270; FURTHER DIRECTING THE CITY
MANAGER TO SUSPEND ALL FUTURE PAYMENTS TO
LIBERTY HOUSING ASSOCIATES AS THE DEVELOPER OF
THE PROJECT UNTIL SUCH TIME AS THE ISSUES AND
CONCERNS AS CITED BY THE OIG IN THE AUDIT HAVE
BEEN RESOLVED BY THE CITY ADMINISTRATION.
WHEREAS, pursuant to Resolution No. 95-853, passed and adopted on December 7,
1995, the City Commission allocated $4.8 million in HOME Program funds to the Urban League
of Greater Miami, Inc., in connection with the development of the proposed 134 unit housing
project known as Northwestern Estates (f/k/a "Knight Manor") in the Model City Community
Development Block Grant target area; and
WHEREAS, the Urban League formed a Florida general partnership with Knight Manor
Homes of Miami, Inc. to develop the Project under the name of Liberty Housing Associates
("Developer"); and
=3 7 COM MSION
DMETING OF
JUN 0 9 1998
Resolution No.
98- 584
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 ("Audit"), cited
several findings and concerns relating to the City's ineffectiveness in requiring the Developer to
demonstrate that the Project would be affordable to very low income families and requiring the
Developer to obtain adequate financing to complete the construction of the Project, and
WHEREAS, the OIG has required the City to obtain from the Developer approximately
$144,000 in program income received by the Developer from the Dade County School Board for
the sale of approximately one (1) acre of land originally purchased with HOME funds for the
Project; and
WHEREAS, the OIG has also required the City to reevaluate the affordability and
economic feasibility of continuing to fund the development of the Project;
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. In response to the issues and concerns cited by the U.S. Department of
Housing and Urban Development's District Office of the Inspector General in its Audit Report
dated March 26, 1998 the City Manager is hereby directed to engage the services of an
independent consultant to perform an economic and affordability analysis of the proposed 134
unit Northwestern Estates Housing Project, for a fee not to exceed $10,000, with funds therefor
being available in the Home Investment Partnership Program, Account Nos.
198001.630101.6.270 and 198006.630101.6.270.
98- 584
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Section 3. The City Manager is hereby authorized and directed to suspend all future
payments to the Liberty Housing Associates. as the developer of the Project until such time as the
issues and concerns as cited by the OIG have been resolved by the City Administration.
Section 4. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 9th day of June , 1998.
ATTEST:
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not indira a approw-1 ¢N
this legislation by signing it in the designated place proOded, said lec� lar .r
becomes effective with the elapse of ten (10) days date of Cc�slcn La'6=n
regarding same, without the Mayor exercising a�qV ,
WALTER J. FOEMAN
CITY CLERK
PREPARED AND APPROVED BY:
LINDA KELLY SO
ASSISTANT CITY ATTORNEY
LKK/csk/W2355
WRI, iOwls
-3 98- 584
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO The Honorable Mayor, Joe Carollo and
Members of the City Commission
FROM fonakt.Wwlarshaw
City Manager
RECOMMENDATION:
27e
DATE : May 11, 1998 FILE
SUBJECT : Resolution to Engage Independent
Consultant —Northwestern Estates
REFERENCES: Housing Project
ENCLOSURES: City Commission Agenda Item
May 26, 1998
It is respectfully recommended that the City Commission adopt the attached resolution, directing the
City Manager to engage the services of an independent consultant to perform a project analysis of
the proposed Northwestern Estates Housing Project, in response to the concerns and issues cited by
the District Office of the Inspector General. The attached resolution also establishes a fee, not to
exceed $10,000.00, with funding to be made available from the City's Home Investment Partnership
Program to defray the cost of the aforementioned consultant services.
Lastly, the attached resolution further directs the City Manager to suspend all future payments to
Liberty Housing Associates, as developer of the proposed project until such time as all of the issues
and concerns cited by the Office of the Inspector General have been resolved by the City
Administration.
BACKGROUND:
In March of 1998, the U.S. Department of Housing and Urban Development's District Office of the
Inspector General, in its audit report of March 26, 1998, determined that the City of Miami did not
require the developer for the proposed Northwestern Estates Housing Project to demonstrate that the
housing units would be affordable to very low-income families or require the developer to obtain
adequate financing to complete the construction of the proposed housing project.
In an effort to resolve the finding which has been cited by the District Office of the Inspector
General, the City is required to demonstrate how the Northwestern Estates Housing Project can be
made affordable to very low and low-income families by obtaining sufficient subsidies,
reconfiguring the housing project and/or by reducing the project's costs. As a result, it is
recommended that the City Commission approve the attached resolution, which authorizes the City
Manager to retain the services of an independent consultant to perform a project analysis of the
proposed Northwestern Estates Housing Project.
-i .
98- 584
The Honorable Mayor, Joe Carollo and
Members of the City Commission
May 11, 1998
Page 2
The attached resolution further directs the City Manager to suspend all future payments to the
developer of the project, until such time as the issues and concerns which have been cited by the
Office of the Inspector General in the audit report have been resolved by the City Administration.
JGP/CMC/GCW/JBH:vh
c: Gwendolyn C. Warren, Director
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