HomeMy WebLinkAboutItem #47 - Discussion ItemFROM s GERR I TO • 4t 16 ► 1991 5: d5AM R. 29
METROPOLITAN DADS COUNTY, FLORIDA
JEtfa onn>:
I 1
METRO -DARE CENTER
OFMCIE OF COUNTY MANAd6F1
SUITE 2910
11 i N.W. tat STAFET
MIAMI, FLORIDA 33128.1994
(30$) 3>5-ti311
Mr. W*Mll 7. baughtry, President
Rosiness Assistance tenter, Inc.
6600 N.W. 27th Avenue
Miami, Florida 13247•-0830
Dear Mr. DaughUy:
This correspondence is in response to yaur letter and proposal whereby you
requested the County s s consideration for a $1, 500, 000 Community Developrztent (CD)
Float loan to capitalize the Business Assistance 0anter.(HAC) Credit Union.
Pursuant to this request, the staff of the office of Cotwu City Development (OCD)
and the Department of Business and F-=Mic Development (DBED) reviewed wxl
discussed the Cmunity Develcpmextt Block. Grant (CDW) eligibility of the HAC
credit union in order to determine Whether or not it would eaply witfederal
regulations. Staff also reviewed appropriate circular letters which the United
States HUD area office regularly provides to Dade County.
After wttensive review, a determination was made that the proposed scope of
lending of the BAC Credit Union focus -ed primarily on' personal loans. Those
types of loans would than be used for new and used autos, boats, recreational
vehicles, motor homes, mobile hou es, home inprovement loans, eta. Activities
such as these do not meet the requirements of 24 Clot 570.204 (a) because they
are not directly related to neighborhood revitalization, commity eeoncmie
development or energy conservation and are not eligible C1DBG activities.
For you information, I am attaching a letter from the U.S. HUD area office that
they rent to Palm Heath County which referenced a credit union activity similar
to the one you are proposing. in this letter, it was determined that a credit
y union project is also not eligible as a public service activity due to the lack
of a relationship between the activity and improvements in public services aril
facilities. These same restrictions would also apply to the BOAC request.
j if any additional information or assistanoe in this matter is needed, please
feel free to contact M.
i Sincerely,
1
;j
2
Joaquin G. Avifio, P.E. , P.L.S.
jCounty Manager Submitted into V e public -
! cc: Cynthia W. Curry
record in
Gregory Owens
ice cn
i ldlafty HiLrai
City Clerk 7 4 4 -&
3
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lOh1 Gt�i� T TO
f 16 t 1"1 9 45AM P. 03
1
MC M
OCT
1987
Rr. Hesaar }laryin, Dihector
Division of Housing and
Ownunity Development
Pa1M $4ACb County ;
801 Eyer•nia Street ,
Nest Palm Beach, FL 3MI
' l
Dear Mr. Harvin:
SUBJECT: Cwvmunity Qevelopmnt Block Grant (CDBG) Program
Grant No. B-86- M-12-M4 '
Pa1w Beach County, Florida
Eligibility of Providing Assistance to a 1leighborhood
Credi t Union.
'
In response to your correspondence of July 7, 1967, • on the above
referenced subject, up- have the following co;=ents. First, in order for
the activity proposed by the County to weet the requirements of 24 CFR
$70 204 • (a) (21 `43 -a special -activity, bry'a-subrreciP i$nt tha •Cou' `
• nty.:eust
dete'mine.,that*..the acti�rity' is necessary or nppropriate'tao achieve its
toaxunity deYeloptint•obiectives. Secondly, a Su recipient eligible
under 24 CFR 570.244(c) mst carry out a naighborbood revitalization,
:
•coemunity economic development, or energy conservation project in order
�
• to be eligible for CDBG funds.
E
In regard to Ox first requireLent, there is w indication in the'
CounV's correspondence that a 'necessary or appropriate' determination
i.
has been made by the County regarding the proposed activity, In ragardt
.
to the second requiremnt, the Credit unions activities as outlined in
your le Ur of July 7, 1987, do not appear' to meet the requirements of24
CFR 570.ZX(a). A svl?recipient vh1ch makes personal 'loans r;tt '
rect�related to neiohbar!bod.reYi#aiizaticn, comity ecoca is
development or enemy conservation cannot qualify for CDBG funds; ear n
if it is a SgA 501(c)(3) development entity,,,. -in sumary, based on the
.material
material submitted by the County,.the proposed activity is not,an
under 24 CFR 570.204."
The proposed assistance cannot qualify as an eligible public
=�:;•,
service under 24 CFR 570.201(c). • There is no evidence of any
8;=:::.;•
relationship betxeeb the proposed utivity and ieptxive=nts is the
County's public services and facilities.
ubmitted into the public
record in conno pion
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Natty Hirai - 7 4
FROM: GERR I . TO:.
9:46AM F�4�
If you hate a '
r>a► questions t�lating to this correspondenc-a, please • .
ontact fir. flan Shargas, Cormnity planning and Det'elopmerit,
Representativa, at (904) 791-1202.
rcoleveland B. Talmadge
i rector
wunity Planning arA
Developm.nt Division, 4,6C
CITY OF MIAMI, FLORIDA
37
C
. WTER•OFFICE: MEMORANDUM
TO Cesar H. Odio, DATE September 13, 1991 FILE
City Manager
SUBJECT
FROM ( REFERENCES.
Xavier L. Suarez, /1
Mayor / ENCLOSURES
Please schedule for the next regularly scheduled Commission
Meeting of October 3, 1991, Mr. Newall J. Daughtrey, President of
Business Assistance Center Community Credit Union (BACCCU) on the
matter of their request for a one time donation of $100,000.
XLS/lr
_-1
CCCU Business Assistance Center Commur
Union
6600 N.W. 27th Avenue - P.O. Box 470830 • Miami, Florida 33247
Phone (305) 693-3550 • Fax: (305) 693-7450
September 5, 1991
Mayor Xavier Suarez
City of Miami
3500 Pan American Dr.
Miami, FL 33133
Dear Mayor Suarez:
The Business Assistance Center, Inc. has donated $20,000 capital
to the Business Assistance Center Community Credit Union and has
agreed to cover annual expenses of up to $50,000 for three years.
BACCCU had completed all Florida's Department of Banking and
Regulation requirements for a charter as of January 8, 1991. We
were scheduled to open on January 22, 1991, in celebration of Dr.
Martin Luther Kings' birthday. However, the State of Florida
changed the rules, where all state insured credit unions must
obtain insurance of accounts up to $100,000 through the National
Credit Union Administration, thus preventing us from opening.
We applied for insurance through NCUA, but was turndown for five
(5) basic reasons; insufficient capital, need for more evidence
of support, need to reduce field of membership, need to increase
provision for projected loan losses, and competition concerns.
We feel that we can satisfactorily answer all of the concerns of
NCUA, but we need the community's help in satisfying some of the
new requirements. We asked our current members to assist us with
a survey that will show support for the credit union.
At this time we ask that you help us by taking the lead and
presenting our request to the City of Miami City Commission for a
one time donation of $100,000, which would help satisfy our capital
requirements.
The benefits that the City of Miami and credit union members would
receive are many;
1). All residents including those who work in the targeted areas
of the City of Miami would be eligible to join the credit
union.
2
Mayor Xavier Suarez
Page 2
2). A financial institution owned and operated by members of the
community would provide it with continuous control of
financial resources.
3). As residents develop a savings habit, many will capatilize
businesses, which will provide the City of Miami with greater
tax benefits.
4). There would be numerous benefits for credit union members such
as reduced loans rates, financial counseling, dividends,
payroll deduction, and development of a regular savings habit.
Thank you in advance for your help.
Sincerely,
Newall J. Daughtrey
President