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Home My WebLink AboutR-92-0792J-92 --809 11. / 10/92 RESOLUTION NO. 92- 792 A RESOLUTION, WITH ATTACHMENT, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, APPROVING THE REFUNDING OF CERTAIN DADE COUNTY, FLORIDA, HOUSING BONDS TO FINANCE LOW OR MODERATE INCOME HOUSING IN THE CITY OF MIAMI, SAID BONDS HAVING BEEN ISSUED PURSUANT TO AN AGREEMENT BETWEEN THE CITY MANAGER AND DADE COUNTY, FLORIDA, FOR THE ABOVE SPECIFIED PURPOSE; FURTHER AUTHORIZING CONTINUATION OF EXISTING CITY ASSISTANCE FOR SAID PROGRAM. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized and directed to execute an Agreement, in substantially the attached form, approving the refunding of certain Dade County, Florida, housing bonds, to finance low or moderate income housing in the City of Miami, said bonds having been issued pursuant to an Agreement between the City Manager and Dade County, Florida, for the above specified purpose, and further authorizing continuation of existing city assistance for said program. Section 2. This Resolution shall become effective immediately upon its adoption. fATTACHMEMIT (S) CITY COP+IMISSIOP€ MEETING OF D E C 1 9 1992 Resolution No. 92- '792 PASSED AND ADOPTED this ATTEST' MATTI HIRAI CITY CLERK FINANCIAL REVIEW: CARLO E. GARCIA, DIRECTOR DEPAh MENT OF FINANCE PREPARED AND APPROVED BY: RAFAEL 0. DIAZ DEPUTY CITY ATTORNtY J Oth da,y o.--Doc,c_,m_bet_..----= 1�Jn2. "XAVIER L. UAREZ, AYOR APPROVED AS TO FORM AND CORRECTNESS: _� 4�,, 4 Aw'� -w A. Qzfift OWS, III CITY ATT Y ROD:csk:M3273 —2- 92- 792 AGREEMENT APPROVING THE REFUNDING OF IiOUSING BONDS ORIGINALLY ISSUED BY DADE COUNTY, FLORIDA, IN ORDER TO FINANCE CERTAIN HOUSING PROJECTS IN THE CITY OF MIAMI THIS AGREEMENT, made this day of , 1992, by and between DADE COUNTY, FLORIDA, a political. subdivision of the State of Florida (hereinafter_ called the "County") and the CITY OF MIAMI, FLORIDA, a Municipal corporation of the State of Florida (hereinafter called the "City"): W I T N E S S E T H WHEREAS, the Commission of the City on the 4th day of February, 1976, adopted Ordinance No. 8514 ( a true copy of which is attached hereto and marked as Exhibit "A"), authorizing the issuance of $25,000,000 housing bonds of the City for the purpose of providing housing in the City for families and persons, including the elderly, of low or moderate income, by assisting the County in financing the cost thereof; and WHEREAS, the Commission of the City on the 4th day of February, 1976, adopted Ordinance No. 8515 ( a true copy of which is attached hereto and marked Exhibit "B"), providing for the holding of a special bond election in the City on March 9, 1976 upon the question of issuing $25,000,000 housing bonds of the City as authorized under Ordinance No. 8514, and the qualified elector of the City, at such election held on March 9, 1976, approved the issuance of $25,000,000 housing bonds of the City, as determined by resolution of the Commission of the City, being Resolution No. 76- 92- '792 339, adopted on. the 25t1i clay of March 1976 ( a true copy of which is attached hereto and marked Exhibit "C"); and WHEREAS, Ordinance No. 8514 (hereinafter referred to as the "Ordinance") provides among other things, that the City shall enter into one or more agreements with the County respecting the application of the proceeds of said bonds in accordance with the provisions of the Ordinance, and the County desires to enter into such agreement or agreements with the City for the purposes of rehabilitating existing housing in the City pursuant to applicable law and the provisions of the Ordinance; WHEREAS, pursuant to certain Indentures the County issued its bonds as follows (the "Prior Bonds") to provide financing to develop the following multifamily rental residential developments (the "Projects") located in Miami, Florida, for occupancy by individuals of low income within the meaning of Section 8 of the U.S. Housing Act, all for the public purpose of assisting such persons of low income within the City to afford the costs of decent, safe and sanitary housing: Dade County, Florida Special Housing Revenue Bonds (City of Miami Development), Series 1978A in the amount of $2,520,000 Dade County, Florida, Special Housing Revenue Bonds (City of Miami Developments -Indenture VI), 1979 Series A in the amount of $4,540,000 Dade County, Florida, Special Housing Revenue Bonds (City of Miami Developments -Indenture V), 1979 Series A in the amount of $4,250,000 -2- 92-- 79`' Dade County, FIOUida, Spec,.i_al 11011Si_1-Ic1 RevO�ntle Bonds (Citty of Miami Developments --Indenture VIII ) 1981. Series A it-1 the amount_ of $2,605,000; and WHEREAS, pursuant to that certain Trust Indenture dated as December 1, 1992 (the "Indenture") by and among the Florida Housing Finance Authority of Dade County (Florida) (the "Authority") and Sun Bank, National Association (the "Trustee"), the Authority has determined to issue, sell and deliver its Multifamily Revenue Refunding Bonds, Series 1992 (Section 8 Projects) (the "Bonds"), all pursuant to the directions of the United States Department of Housing and Urban Development ("HUD") for the purpose of refinancing the Prior Bonds, which for federal income tax purposes, will constitute a refunding of the Prior Bonds; and WHEREAS, the Authority and HUD have determined that there exists a shortage of safe and sanitary housing for persons and families of moderate, middle or lesser income within. Dade County, State of Florida; and have determined to refinance the bonds for the following purposes: (1) To provide funds to rehabilitate the Projects, (2) To provide for more timely repayment of secondary debt owed to the City and the County, (3) To provide release of escrow funds originally required as collateral for the Prior Bonds, (4) To provide for earlier retirement of the Prior Bonds, and ( 5 ) To provide funds to protect the Projects from the loss of income caused by Hurricane Andrew and a consequent default on current debt. -3- 92- '792 WfI3?REAS, such shortage will he pert.-.i_alJ_y allev.i_i�)ted by the refinancing of the Prior Bonds; and NOW, THEREFORE, in consideration of the covenants and agreements herein contained to be performed by the City and the County and other good and valuable consideration paid by each of the parties to the other, the receipt of which is hereby acknowledged, it is hereby agreed by and between the City and the County, as follows: SECTION 1. The City hereby agrees to cooperate with the County and the Authority in the refinancing of the Prior Bonds for the purposes expressed herein. SECTION 2. The City and the County hereby agree that the Projects will continue to be financed by the Authority through Authority Obligations which shall be self-liquidating in that the payment of the principal of and interest on such Authority Obligations will be paid in full from rents, charges, and fees collected from the Projects together with such federal, state and private grants, contributions and other income and money which may be made available therefrom (exclusive of any proceeds of City Bonds). IN WITNESS WHEREOF, the CITY OF MIAMI, FLORIDA, has caused this Agreement to be executed in its name and behalf by its City Manager and its official seal to be hereunto affixed and attested by its City Clerk or a Deputy City Clerk thereunto duly authorized and DADE COUNTY, FLORIDA has caused this Agreement to be executed in its name and behalf by its County Manager and the official seal -4- 92- 792 of the Board of Country Cornmiss.i_oners to be herei.tnto )ffi_xed anCI attested by the Clerk or a Deputy Clerk of said Board thereunto duly authorized, as of the __ _ day of _y , 1992. ATTEST: CITY CLERK (CITY SEAL) ATTEST: CLERK OF THE BOARD OF COUNTY COMMISSIONERS (COUNTY SEAL) I:\LMR\COMB.AM -5- CITY OF MIAMI, FLORIDA By CITY MANAGER DADE COUNTY, FLORIDA By COUNTY MANAGER 92- 792 - nniE r' Honorable Mayor and Members O V ..;j of the C1-fiy Commission 1;U11A CT Agenda Item ( c�� nEFERFNCEs Cesar H. Odio City Manager ENCLOSURES RECOMMENDATION• mu It is respectfully recommended that the attached resolution, with attachment, authorizing and directing the City Manager to execute an agreement, in substantially the attached form, approving the refunding of certain Dade County, Florida, housing bonds to finance low or moderate income housing in the City of Miami, said bonds having been issued pursuant to an agreement between the City Manager and Dade County, Florida, for the above specified purpose; further authorizing continuation of existing City assistance for said program, be adopted. BACKGROUND: Resolution 76-63.2 of June 17, 1976 authorized the City Manager to execute an agreement with Dade County, Florida for the development of Section 8 housing for families and persons of low or moderate income within the City. To that effect the City contributed approximately $2.5 million in proceeds from its $25,000,000 general obligation housing bonds to fund debt service reserves and capital contributions towards the construction requirements for the following projects: _ 1. Riverside and Coconut Grove (75 unit elderly project and 24 family units) 2. Singer Plaza (100 units for handicapped) 3. Wynwood and Little Havana (22 townhouses, 18 duplexes and 75 elderly) 4. Theodore Gibson Plaza (65 units of elderly housing) Tionor_ able Mayor and Members of the City Commission Agenda, Item Page - 2 - Due to the recent reduction in interest rates Dade County HUD is proposing to refinance the debt that financed the major portion of these projects. The refinancing would provide funds to renovate the projects without increasing total debt service payments and without extending the life of the bonds. The original agreement between the City and the County requires repayment to the City of its contributions upon final redemption of the County bonds that financed the major portion of these projects. This refinancing would trigger the repayment to the City since technically a refinancing involves paying off the old bonds and issuing new ones. The Departments of Housing and Finance recommend the adoption of this resolution based on the following benefits resulting from the refinancing: It will improve existing Section 8 housing projects in the City. . It will provide earlier repayment of City's contributions. It will provide for a trustee to handle funds assuring the repayment schedule. 92- 792