HomeMy WebLinkAboutR-98-0586J-98-289
5/ 18/98
RESOLUTION NO.J 8 - 586
A RESOLUTION AUTHORIZING AND DIRECTING THE
CITY MANAGER TO ENGAGE THE SERVICES OF A CIVIL
ENGINEERING FIRM TO PERFORM CONSTRUCTION COST
ANALYSES OF CDBG AND HOME PROGRAM FUNDED
MULTI -FAMILY REHABILITATION LOAN PROJECTS
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 CONCERNING THE CITY' S
MULTI -FAMILY REHABILITATION LOAN PROGRAMS
AND TO PERFORM CONSTRUCTION COST ANALYSES OF
ALL HOUSING PROJECTS WHICH ARE BEING
CONSIDERED FOR HOUSING FUNDING FROM THE CITY
THROUGH CDBG, HOME AND SHIP PROGRAMS;
AUTHORIZING AND DIRECTING THE CITY MANAGER TO
ENGAGE THE SERVICES OF APPRAISAL FIRM(S) TO
PERFORM UPDATED APPRAISALS OF EACH
MULTI -FAMILY PROJECT TO DETERMINE THE FAIR
MARKET VALUE OF SUCH PROJECTS TO ASSIST THE
CITY IN ITS EFFORTS TO REACH A NEGOTIATED
SETTLEMENT WITH DEVELOPERS OF SAID PROJECTS
WITH DEFAULTED CITY LOANS AND/OR TO INSTITUTE
FORECLOSURE PROCEEDINGS AGAINST SAID
DEVELOPERS; PROVIDING THAT THE HEREIN
AUTHORIZATION TO ENGAGE SUCH PROFESSIONAL
SERVICES SHALL BE SUBJECT TO COMPLIANCE WITH
ALL REQUIREMENTS THAT MAY BE IMPOSED BY THE
CITY ATTORNEY, INCLUDIING, BUT NOT LIMITED TO,
THOSE PRESCRIBED BY APPLICABLE CITY CHARTER
AND CODE PROVISIONS; FURTHER AUTHORIZIING AND
DIRECTING THE CITY MANAGER TO IDENTIFY FUNDING
TO DEFRAY THE COST FOR THE AFOREMENTIONED
PROFESSIONAL SERVICES.
CITY colp cw
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JU N 0 9 1998
Resolution NO.
98- 586
WHEREAS, in its Audit Report dated March 26, 1998 of the City's Multi -family
Rehabilitation Loan Programs, the U.S. Department of Housing and Urban Development's Office
of the Inspector General ("OIG') cited several problems and concerns relative to the City's
housing loan portfolio; and
WHEREAS, in an effort to address the OIG's concerns with respect to the number of
defaulted loans in the City's loan portfolio, it is necessary that construction cost analyses and
appraisals of the subject multi -family projects be performed by a civil engineer and an appraiser,
respectively; and
WHEREAS, in an effort to improve the City's overall loan/grant underwriting procedures,
it is recommended that the civil engineer be retained to also perform construction cost analyses of
all housing projects which are being considered for funding through the CDBG, HOME and SHIP
Programs;
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 authorized' and directed to engage the services
of a civil engineering firm to (a) perform construction cost analyses of the CDBG and HOME
Program funded multi -family rehabilitation loan projects ("Projects") to assist the City in
'-/ 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.
98- 58-6
addressing the problems and concerns relative to said Projects as cited by the Department of
Housing and Urban Development's District Office of the Inspector General (" OIG") in its Audit
Report dated March 26, 1998 and (b) perform construction cost analyses of all housing projects
which are being considered for funding by the City through the CDBG, HOME and SHIP
Programs.
Section 3. The City Manager is hereby authorized and directed to engage the services
of appraisal firm(s) to perform updated appraisals of each of the Projects to determine their fair
market value to assist the City in its efforts to reach a negotiated settlement with the developers of
said Projects with defaulted City loans and/or to institute foreclosure proceedings against said
developers.
Section 4. The City Manager is further authorized and directed to identify funding to
defray the cost for the aforementioned professional services.
Section 5. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 9th day of June , 1998.
JOE CAROLLO, MAYOR
In accoidance with Miami Code Sec. 2-36, since the Mayor did not Indicate approval of
Obis legbllation by signing it in the designated place prodded, said I&gg ,3lat,on
becomes effective with the elapse often (10) dav� ,'i the date of Ccmmissicrj
ATTEST: 8801% t the Mayci exercisi
r
Walter . Fo an, lty Clerk
WALTER J. FOEMAN
CITY CLERK
2/ 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.
98- 586
PREPARED AND APPROVED BYt,-z
LINDA KELLY ARSO
ASSISTANT CITY ATTORNEY
LKK/W2358
98- 586
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
27g
TO The Honorable Mayor, Joe Carollo and
DATE : May 11, 1998 FILE
Members of the City Commission
SUBJECT : Resolution to Engage Services of
Civil Engineering and Appraisal
-_---- -,
A
Firms for Housing Programs
FROM OCl(IShaW
REFERENCES:
City Manager
CityCommission Agenda Item
ENCLOSURES: g
May 26, 1998
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached resolution, directing the
City Manager to engage the services of a civil engineering firm to perform inspections of all CDBG
and HOME Program -funded Multi -Family Rehabilitation Loan Program -assisted housing projects,
which have been identified in the audit report issued by the District Office of the Inspector General.
-a The attached resolution further directs the City Manager to engage the services of an appraisal firm
to also perform updated appraisals of each of the multi -family apartment buildings in order to
determine the fair market value of the subject properties.
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 dated March 26, 1998, cited weaknesses in the City's loan
collection procedures, and recommended a strategy to aggressively pursue legal actions against all
delinquent loan accounts under the City's Multi -Family Rehabilitation Loan Programs. As part of
the City's corrective action plan relative to this finding, it is necessary for the City Administration
to ascertain the existing conditions of multi -family apartments which have been identified in the
audit report, in addition to determining the fair market value of each property. Both the inspection
report and the appraisal report would be a valuable tool in assisting the Department of Community
Development in performing the appropriate project analysis required to determine whether the
institution of a foreclosure suit against a delinquent borrower is the appropriate remedy.
In addition, the civil engineering firm to be retained by the City of Miami would also perform a
complete construction cost analysis of housing projects which are being considered for housing
funding by the City through the CDBG, HOME and SHIP Programs. This cost analysis will be
utilized by the Department of Community Development staff, as a valuable tool to assist in the
overall loan/grant underwriting analysis which is presented to the City's Housing Loan Committee.
JGP/CMC/GCW/JBH:vh
c: Gwendolyn C. Warren, Director
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