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HomeMy WebLinkAboutR-88-0218IV V Revised 2/15/68 RLSOLUTiON NO. 9%— 1 1-1 A RESOLUTION AUTHURiiiNG THE Ci1'Y MANAGER TO EXLCUTL A14 AGkLLKL1%r, IN TtiL Fuhh SUBSTANTIALLY ATTACHED BERLTU, WITH BETTY BLUNT, A14 lNi)lVIuUikL, .N ttli i-%NuUi1'i tvUT TO EXCEED 411d,WOW TU PROVIDE ALCjUiSITION, RELOLATIUN kl�U PROPERTY hMii-.(jLtLLNT SL.RViLLS RELATED 'CO THE SUU'1'HEiAST OVLRTUWtq/ PaR1, WEST CUMP1UNITY RLUL:VLLOPDJ LNT PROJLLT Ai4b UThLR PROJECTS REQUIRING SAID SERViLLS; WITH MOI11Lb ThLALIUR ALLOCATED iAS FULLUWS: $2, bUU FROM 'i HL DEPARTMENT Or DEVLLOPMENT FY i` b6 GL14ERAL FUNDS, g4,vUU FRvN t1uU6iNG BU141) FUNDS AND $4,Uk)u FROM HUD SECTiuN iub LUA14 r'UNDS . WHEREAS, the United States Department of Housing and Urban Development (HUD) has monitored residential relocation files iu connection with displacement from the Southeast Overtown/Park West Redevelopment Project (Section luB Loan Guarantee); anti WHEREAS, the United States Department of Housing and Urban Development has made findings which require the city of k1ami to review, adjust and report all cases for compliance with HUD regulations, and WHEREAS, the City of Miami has purchased property in connection with the Northwest 1st AvenLe Realignment Project which requires business relocation and management services; and WHE:REaS, future proposed acquisitions will require relocation, acquisition and property management services. NOW THEREFORE, BE IT RESOLVED BY THE C0tiNiISS10N OF THE. CITY OF Niit0ll, FLORiDA: Section 1. The City i•,anager is hereby authorized to execute an agreement, in the form substantially attached, with Betty Blum, an individual, in an amount not to exceed 4110,000 to provide relocation, acquisition, and property management services related to the Southeast Overtown/Park West Community Redevelopment Project and other projects requiring said services. CITY COMMISSION MEETING Car MI"R 10 1.38 )r4 n . P N-21 b► Section 2. The City Manager is hereby authorized to utilize funds for said Agreement, as fol lows s *2, UUO from General fend allocated to the Department of Development F'Y 19tsd budget, $4,000 from HUD Section IUB Loan funds and $4,000 from General Obligation housing Frond funds. PASSED AND ADUPTED this loth day of March , 196d. XF►V R L. 5UAkE Mi�YUFt ATTESTS AY IRAI, CITY CLERK FINANCIAL REVIEW A14D APPRUVALs I)IIA61.1v CARL CIA, DIRECTOR FINANCI: EPARTMENT BUDGETARY REVIEW & APPROVALS FRANK MAY, ACTING DIRE UK MANAGEMENT AND BUDGE DEPARTMENT HOUSING CONSERVATION & DEVELOPMENT AGENCY RE IEW AND APPROVAL-. Y GER UK -,- DIRECTOR ING CCINSERTATION & DEVELOPMENT AGENCY DEPARTMENT OF COMMUNITY DEVELOPMENT REVIEW AND APPROVALS r 6— DEPARTMENT OF COMMUNITY DEVELOPMENT -z - fw PUPARED AND APPROVED BYe ,G A RT F . CL.ARK CHIEF DEPUTY CITY ATTORNEY APPROV4U �S TU FORM AM) CORRECTULMS: 0 1% & PROFESSIONAL SERVICES AGREEMLUT This Agreement entered into this day of , 1988, by and between the City of Miami, a municipal corporation of the State of F'loriaa, hereinafter referred to as "CITY", and Betty Blum, an individual, hereinafter referred to as "CONSULTANT." I. TERM The term of this Agreement shall be from March i, i988 through February 28, 1989. II. SCOPE OF SERVICES The CONSULTANT shall under the direct supervision of the Department of Development, provide acquisition, relocation and property management services for Phase I of the Southeast Overtown/Park hest Project and other projects requiring said services. The CONSULTANT shall perform at minimum, the following activities: a. Implement relocation assistance to businesses displaced by the Northwest 1st Avenue Realignment Project. b. Coordinate the completion of relocation assistance for Phase I of the Southeast Overtown/Park West Community Redevelopment Project. C. Prepare a response to the U.S. Department of Housing and Urban Development relocation audit for Phase I of the Southeast Overtown/Park West Community Redevelopment Project. d. Provide relocation, acquisition and property management services and expertise as required by the Department of Development . III. COMPENSATION A. The CITY shall pay CONSULTANT, as maximum compensation for the services required, pursuant to Paragraph lI hereof, $10,000.0U. R6-210_ 1b 6 B. Such compensation shall be paid on a $40 per Dour time - charge basis. C. CONSULTANT shall submit invoices and supporting documentation (i.e. time records) to request payment for services rendered on a monthly basis. D. CITY shall endeavor to pay CONSULTA1T within fifteen (15) working days from the time the invoice is approved for payment. E. CITY shall have the right to review and audit the time records and related records of CONSULTANT pertaining to any payments by the CITY. F. CITY will provide a suitable office together with telephone and secretarial services. IV. COMPLIANCE WITH FEDERAL, STATE A14D LOCAL LAWS Both parties shall comply with all appiicable laws, ordinances and codes of federal, state and local governments. V. GENERAL CONDITIONS A. All notices or other communications which shall or may be given pursuant to this Agreement shall be in writing and shall be delivered by personal service, or by registered mail addressed to the other party at the address indicated herein or as the same may be changed from time to time. Such notice shall be deemed ' given on the day on which personally served; or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. CITY OF MIAM1 Department of Development 3UO Biscayne Blvd. Way Suite 400 Miami, Fla 33131 CONSULTANT Betty Blum 19945 N.E. iO PL. Way Miami, Fla. 33179 B. Title and paragraph headings are for convenient reference and are not a part of this Agreement. C. In the event of conflict between the terms of this Agreement and any terms or conditions contained in any attached documents, the terms in this Agreement shall rule. D. No waiver or breach of any provision of this Agreement shall constitute a waiver of any subsequent breach of the same or -2- 919--218- 6 any other provision hereof, and no waiver shall be effective unless made in writing. E. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the States of Florida or the City of Miami, such provisions, paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable to conform with such laws, then same shall be deemed severable, and in either event, the remaining terms and provisions of this AgL'eement shall remain unmodified and in full force and effect. V1. OWNERSHIP OF DOCUMENTS All documents developed by CONSULTANT under this Agreement shall be delivered to CITY by said CONSULTANT upon completion of the services required pursuant to paragraph li hereof and shall become the property of CITY, without restriction or limitation on its use. CONSULTANT agrees that all documents maintained and generated pursuant to this contractual relationship between CITY and CONSULTANT shall be subject to all provisions of the Public Records Law, Chapter 119, Florida Statues. It is further understood by and between the parties that any information, writings, maps, contract documents, reports or any other matter whatsoever which is given by CITY to CONSULTANT pursuant to this Agreement shall at all times remain the property of CITY and shall not be used by CONSULTANT for any other purpose whatsoever without the written consent of CITY. VII. NONDELEGABILITY That the obligations undertaken by CONSULTANT pursuant to this Agreement shall not be delegated or assigned to any other person or firm unless CITY shall first consent in writing to the performance or assignment of such service or any part thereof by another person or firm. _,_ 96-219 The CONSULTANT agrees that there shall be no subcontracts in connection with the Agreement without the prior written approval of the CITY and that all such subcontractors or assignees shall be governed by the terms and intent of this Agreement. Anyone hired by the CONSULTANT (subcontractor or any other expense) is solely the responsibility of the CONSULTANT. Nothing stated herein will create an obligation on the part of the CITY to compensate the subcontractor. VIII. AUDIT RIGHTS The CITY reserves the right to audit the records of CONSULTANT at any time during the performance of this Agreement and for a period of one year after final payment is made under this Agreement. IX. WARD OF AGREEMENT The CONSULTANT warrants that it has not employed or retained any person employed by the CITY to solicit or secure this Agreement and that it has not offered to pay, paid, or agreed to pay any person employed by the CITY any fee, commission percentage, brokerage fee, or gift of any kind contingent upon or resulting from the award of this Agreement. X. CONSTRUCTION OF AGREEMENT This Agreement shall be construed and enforced according to the laws of the State of Florida. XI. SUCCESSORS AND ASSIGNS This Agreement shall be binding upon the parties herein their heirs, executors, legal representatives, successors, and assigns. XIII. CONFLICT OF INTEREST The CONSULTANT covenants that no person under its employ who presently exercises any functions or responsibilities in connection with this Agreement has any personal financial interest, direct or indirect, in the work product of this Agreement. The CONSULTANT further covenants that, in the performance of this Agreement, no person having such conflicting -4- 88-218_ interest shall be employed. Any such interests on the part of the CONSULTANT or its employees must be disclosed in writing to the CITY. The CONSULTANT, in the performance of this Agreement, shall be subject to the more restrictive law and/or guidelines regarding conflict of interest promulgated by federal, state or local government. The CONSULTANT is aware of the conflict of interest laws of the City of Miami (City of Miami Code Chapter 2, Article V), Dade County Florida (Dade County Section 2-11.1) and the State of Florida, and agrees that it will fully comply in all respects with the terms of said laws. XIV. INDEPENDENT CONTRACTOR The CONSULTANT and its employees and agents shall be deemed to be independent contractors, and not agents or employees of CITY, and shall not attain any rights or benefits under the Civil Service or Pension Ordinances of CITY, or any rights generally afforded classified or unclassified employees; further he/she shall not be deemed entitled to the Florida Workers' Compensation benefits as an employee of CITY. XV. TERMINATION OF CONTRACT CITY retains the right to terminate this Agreement at any time prior to the completion of the services required pursuant to paragraph II hereof without penalty to CITY. In that event, notice of termination of this Agreement shall be in writing to CONSULTANT, who shall be paid for those services performed prior to the date of its receipt of the notice of termination. In no case, however, will CITY pay CONSULTANT an amount in excess of the total sum provided by this Agreement. The CONSULTANT reserves the right to terminate the Agreement at any time prior to completion of the services required pursuant to Paragraph II hereof without penalty to the CONSULTANT. Notice of termination of this Agreement shall be in writing to the CITY and the CITY will pay for services performed prior to receipt of notice of termination. -5- ±�8-218- 6 It is hereby understood by and between CITY and CONSULTANT that any payment made in accordance with this Section to CONSULTANT shall be made only if said CONSULTANT is not in default under the terms of this Agreement. if CONSULTANT is in default, then LITY shall in no way be obligated and shall not pay to CONSULTANT any sum whatsoever. XVI. NONDISCRIMINATION The CONSULTANT agrees that it shall not discriminate as to race, sex, color, creed, national origin, or handicap in connection with its performance under this Agreement. Furthermore that no otherwise qualified individual shall, solely by reason of }pis/her race, sex, color, creed, national origin, or handicap, be excluded from the participation in, be denied benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. XV11. MINORITY PROCUREMENT COMPLIANCE The CONSULTANT acknowledges that it has been furnished a copy of Ordinance No. 10062, the Minority procurement Ordinance of the City of Miami, and agrees to comply with all applicable substantive and procedural provisions therein, including any amendments thereto. XVIII. CONTINGENCY CLAUSE Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and is subject to amendment or termination due to lack of funds, or authorization, reduction of funds, and/or change in regulations. XIX. DEFAULT PROVISION In the event that CONSULTANT shall fail to comply with each and every term and condition of this Agreement or fails to perform any of the terms and conditions contained herein, then CITY, at its sole option, upon written notice to CONSULTANT may cancel and terminate this Agreement, and all payments, advances, or other compensation paid to CONSULTANT by CITY while CONSULTANT was in -6- qw-. Its - 6 0 default of the provisions herein contained, shall be forthwith returned to CITY. XX. ENTIRE AGREEMENT This instrument and its attachments constitute the sole and only Agreement of the parties hereto relating to said grant and correctly sets forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. XXI. AMENDMENTS No amendments to this Agreement shall be binding on either party unless in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by the respective officials th ereunto duly authorized, this the day and year first above written. ATTEST: MATTI HIRAI City Clerk WITNESSESs As to CONSULTANT APPROVED AS TO INSURANCE REQUIREMENTS: Insurance Manager CITY OF MIAMI, a Municipal Corporation of the State of Florida By CESAR H. ODIO City Manager CONSULTANT: Betty Blum By Betty Blum APPROVED AS TO FORM AND CORRECTNESS: LU City Attorney CITY OF MIAM1. FLORIDA INTEROFFICE MEMORANDUM TO Honorable Mayor and Members DATE MAR _ 1 19eVVp `c I` of the City Commission 1� O� SUBJECT Authorization to execute an Agreement with Betty Blum, an Individual. FROM � REFERENCES Cesar H. Odio For City Commission Meeting City Manager ENCLOSURESOf March 10, 1988 Resolution, Agreement RECOMMENDATION It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to execute an agreement with Betty Blum, an individual, in an amount riot to exceed $10,000.00 to provide acquisition, relocation and property management services related to the Southeast Overtown/Park West Community Redevelopment Project including the realignment of Northwest 1st Avenue and other future relocation activities. Funding for this Agreement is available from HUD Section 108 Loan Funds, General Funds allocated to the Department of Development, and General Obligation Housing Bond Funds. BACKGROUND The Department of Development recommends that Ms. Betty Blum be retained by the City of Miami through a professional services contract to provide a range of relocation, acquisition and property management services. This contract will allow for Ms. Blum to assist the City in coordinating the relocation response to the U.S. Department of Housing and Urban Development (HUD) and to manage current and future relocation activities. Ms. Blum, by virtue of her long experience as a relocation administrator and her involvement with numerous development projects, including the Southeast Overtown/Park West Redevelopment Project is uniquely qualified to undertake these assignments. At the present time no one in either the City of Miami or Dade County has the expertise to complete the required services. Ms. Blum was previously employed by the City through a contractual agreement with Dade County. Under that contract she coordinated all the relocation for the Southeast Overtown/ Park West Project. Ms. Blum's duties would include the following: Review, adjust and report on all residential relocation cases displaced from the Southeast Overtown/Park West Redevelopment Project and to bring them in compliance with U.S. Department of Housing and Urban Development regulations. (See attached letters and reports from HUD) 803-21Q ^a A 0 Honorable Mayor and Members of the City Commission Page two Coordinate the completion of relocation assistance for Phase I of the Southeast Overtown/Park hest Community Development Project. Provide business relocation assistance and property management services for the Northwest lot Avenue Realignment Project. Provide professional assistance in connection with proposed projects that may require relocation, acquisition and property management services. Funding for this agreement is available frora the Department of Development. FY 1988 General Funds, General Obligation Housing Bonds Funds and HUD Section 108 Loan Funds. Attachments: Proposed Resolution Agreement HUD letters and reports a 88-21h tom' U S. Department dousing and Urban DeveloprneM i• A Jacksonville Office Region IV 325 Well Adams Skeet t S JecksonvMle. Flonda 32202•4303 4.6CMA JUL 0 6 ad? Mr. Frank Ca steneda, Director 13i Department of Community Development City of Miami CO M00— Post Office Box 330708 Miami, FL 33133 Dear Mr. Castaneda: SUBJECT: Community Development Block Grant (CDBG) Program Grant No. B-86-MC-12-0013 and Rental Rehabilitation Program City of Mimi, Florida Compliance Monitoring - Relocation/Acquisition On May 28 - 29, 1987, Mr. Gannon Coffey, Supervisory Relocation Specialist, and Mr. Ed Jennings, Realty Specialist, both from our Atlanta Regional Office, conducted the subject monitoring. The results of their review are contained in the enclosed report. Please provide us with the City's reply to the two correctable findings identified in the report, in accordance with the corrective actions specified, within 30 days of the date of this letter. Should there be any questions concerning these matters, please contact Mr: -Larry Gordon, Community Planning and Development Representative, at (904) 791-1202. Sincerely, �. ca Cleveland B. Talmadge Director Community Planning and Development Division, 4.6C Enclosure cc: Mr. Gannon Coffey 3• a ^ 0 RELOCATION/ACQUISITION MONITORING REPORT MIAMI, FLORIDA Project Number 8-86-MC-12-0013 and Rental Rehabilitation Program Date of Review: May 28-22, 1987 Reviewers: Gannon Coffey, Supervisory Relocation Specialist Ed Jennings, Realty Specialist Atlanta CPD Office 404/331-4096 Persons Contacted: Mr. Frank Castaneda, Director Department of Community Development, City of Miami Mr. Terry Griffin, Community Development Coordinator Mr. Mathew Schwartz, Assistant Director, Department of Development Mr. Jeff -Hepburn, Assistant Director, Housing Conservation and Development As. Betty Blum, Relocation Coordinator, Department of Development Ms. Diane E. Kraska, Principal Housing Specialist/Rehabilitation Mr. Nick Chickillo, Relocation Officer, Dade County DHUD Mr. Joe Armbruster, Acquisition Officer, Dade County DHUD The purpose of the monitoring visit was to determine the City's compliance with the Uniform Act and implementing regulations at 24 CFR Part 42 applicable to acquisition and to persons displaced as a result of acquisition of properties as a part of the City's Community Development Block Grant Program. The Dade County Department of Housing and Urban Development (Dade County DHUD) provided relocation and acquisition services for some of the Miami activities. This included tenant assistance.activities related to the City's Rental Rehabilitation program. Section 108 loan activity was involved in Southeast Overtown/Park Nest Redevelopment (Block 44). A. Relocation Review 1. MSG/Section 108 This review included a sampling of two (2) out of fifteen (15) residential displacement from the Highland Park area and three (3) out of one hundred eighty (180) residential displacements from Block 44 of the Southeast Overtown/Park West Redevelopment area (no review of nonresidential displacements attempted this visit). A follow-up *monitoring visit to obtain additional sampling in the Block 44 displacements will be made. y A8-216t ^ A ^ 0 E It was noted that a "Standard Form" dated 2-77 issued by GSA (entitled Supplemental Rental Assistance Payment for Replacement Housing) was used. Since there had been over 500 displacements from nearby blocks due to Metrorail acquisitions about two years earlier, it was considered that there may have been a preference on the part of the City to follow the Federal UMTA policies for computing rental assistance which apparently did not require a base rent adjustment. However, the 1979 HUD regulations at Section 42.453(b) were applicable. It was indicated during the review that the primary reason for not following the HUD regulations was because of the difficulty in verifying income for many single persons. However, we found among the cases sampled that about 50 percent had reliable sources of income and, in most cases, it was verified. It was also noted that about half of the cases had incomes which were such that 25 percent of the monthly gross income exceeded their previous gross monthly housing cost. This would mean that the rental assistance payments for those cases would not need to be increased. Since the workload of nontransients is estimated at 65-90 cases, adjustments may be needed in only about 45 cases. In connection with the follow-up monitoring review, the following additional findings were made (Findings 1 and-2 were shown in the previous report). Finding No. 3. Evidence of receipt of Replacement Housing Payment was not in file. See Section 42.225(h) relocation recordkeeping. In the following cases there was no evidence of payment: 6 Felix Joseph (Parcel 44-C) Benito Brocks or Brooks (Parcel 44-01— Luis Tomacen Merissier Petithomme (Parcel 44-C) Allen Cristobal (Parcel 44-A) V Prudent Elmeus (Parcel 44-QL__ Bob Sanders (Parcel 44-D)� Corrective Action Needed: Please provide 'photocopies of cancelled checks or receipts. In connection with those cases where adjusted payments are needed, provide evidence of receipt of both payments. Wn A8—Z1bi w Finding No. 4. Monthly housing cost at acquired dwelling and at replacement vL3 dwelling was not clearly shorn. Section 42.453 of the regulations indicates these costs are needed to determine if rental assistance payment is correct. In the case of Cleveland Allen, Jr. (Parcel 44-0, 50 N.W., 8th Street), the rent receipt for the dwelling from which he was displaced shows $40, but a site occupant record form shows $46. Rent at the replacement dwelling was shown as $195 per month, Plus utility cost for a space heater. The standard form for computing rental assistance was not used. The original payment was based upon $173 per month (acquired dwelling) and $195 per month (replacement dwelling). Corrective Action Needed: Based upon Mr. A11en's income, it will be necessary to recompute the rental assistance payment to adjust for ability -to -pay. In your response, please show the basis for allowance for heat at the replacement dwelling. )pad Finding No. S. Documentation in some files indicates that the comparable replacement dwelling used to establish the upper limit of the replacement housing payment was selected after the displacee moved. Section 42,457(a) of the September 1979 regulations concerns the matter of establishing the "upper limit.' Section 42.211(b) concerns relocation assistance advisory services and the matter of providing referrals or listings of comparable replacement housing (prior to the move). It was indicated during the review that the task of contacting and assisting between 80-100 persons to relocate• from several hotel -type facilities required the City to have relocation advisors in the lobbies and to post information on bulletin boards and tables. The information provided included addresses of comparable replacement dwellings and the offer of transportation to inspect them. Corrective Action Needed: Where it can be shown, as in the case of Felix Joseph, who acknowledged during a monitoring interview that he was referred to comparable housing prior to his move, the records should be corrected. Please advise us of cases where records cannot be corrected to show a referral to comparable housing prior to displacement and indicate what other corrective action is being taken instead. WO A 4 Please note the corrective action needed in the following two cases: a. Rob Sanders (Parcel 44-0). Document referral to a comparable dwelling prior to move. b. Cristobal Allen - Shows address and type of comparable replacement dwelling costing $295 which was used to establish the "upper limit." The date the dwelling was identified and referred to the displacee is needed. If a referral to a comparable replacement dwelling costing $295 did not occur prior to displacement, the rental assistance payment will need to'be corrected and evidence of adjusted payment provided. Noncorrectable Finding: There was no evidence of delivery of Notices of Displacement in the files reviewed. ' Section 42.205 of the regulations requires notices to be delivered within 30 days of date of initiation of negotiations. The reason for not delivering notices was that the City had agreements with owners of the property which limited the City's ability to provide services to residents until after the property was acquired. The owners could also collect rents for 90 days after date of acquisition. The City, in effect, negotiated away a right of a displaced person to be informed. Notices should have been delivered, at least to the permanent residents (estimated to be about 85 - 90 persorts). Language could have -been included in such notices to encourage nontransient tenants to remain and continue to pay rent to their landlord. Those persons who may have desired to move before acquisition would need to have been assisted to do so but the owner would still have had the right to re -rent the dwelling. It is recognized that the City could have additional relocation cost to provide comparable replacement dwellings and moving costs to those (nontransients) who move in and are in occupancy on date of acquisition. In summary, the City should have delivered Notices of Displacement even if they were late in delivery. The wording could have been modified to fit the circumstances. The City needs to, take steps to assure such a regulatory requirement is complied with in the'future. Section 42.203() of the "Common Rule," which is the new rule applicable to initiation of negotiations after May 1, 1986, does not specify a time period for delivery of a "notice of eligibility." Relocation costs can be greater, however, if notices containing the information in the guideforms are not delivered before displaced persons select replacement dwellings. This concludes our additional findings and corrective action needed. Please do not hesitate to call Gannon Coffey if there are any questions or you need technical assistance. The courtesies extended to Mr. Coffey by the City and Dade County DHUD staff during the monitoring visit are appreciated. , 7 88-21LO 0-, A ^ 0 1 ti`►wa`" SEP 9 1987 Mr. Frank Castaneda, Director Department of Community Development City of Miami Post Office Box 33070E Miami, FL 33133 Dear Mr. Castaneds: U S. Depo►tn+ent of Horsing and "an 04VOISP110ttl Jacksonvote Office Region tv 325 West Adorns Street Jacksonville. Florida 32202-4303 4.6CMA CEIVED • • UP 14 7"'7 SUBJECT: Community Development Block Grant (CDBG) Program Grant No. B-86-12-0013 (Section 108 loan Guarantee) City of Miami, Florida Compliance Monitoring - Relocation Wry On August 3 and 49 1987, Mr. Gannon Coffey, Supervisory Relocation Specialist in our Atlanta Regional Office, conducted the subject monitoring. Mr. Coffey's visit was a follow-up to his previous review made on May 28 and 29, 1987. The results of the August review are contained in the enclosed report. Our July 6, 1987, letter transmitted to you the results of the May review. Within 30 days from the date of this letter, please provide us with the City's reply -to both the two previous findings and the three findings identified in the enclosed report. The City's reply should be in.accordance with corrective actions specified. Should there be any questions concerning these matters, please contact Mr. Larry Gordon, Community Planning and Development Representative, at (904) 791-1202. Sincerely, Zleveland B. Talmadge Director ' Community Planning and Development Division, 4.6C Enclosure FIS AB-211R M RELOCATION MONITORING REPORT MIAMI, FLORIDA Section 108 Loan Guarantee Project Number 8-86-iC-12-0013 (Southeast Overtowns/Park West Redevelopment Area) Date of Review: August 3-4, 1981 Reviewer: Gannon Coffey, Supervisory Relocation Specialist Atlanta CPD Office 404/331-4096 Persons Contacted: a Mr. Terry, Griffin, Community Development Coordinator Department of Community Development City of Miami Mr. Mathew Schwartz, Assistant Director Department of Development City of Miami Mr. Thedford Johnson, Field Supervisor Dade County DNUD Ms. Betty Blum, former Relocation Coordinator Department of Development City of Miami Mr. Nick Chickillo, Relocation Officer Dade County DNUD (by phone) Manager, 1127 N.E. 1st Avenue (comparable) Mr. Felix Joseph (displacee) The purpose of the visit was to follow up on the previous review (May 28-29, 1987) which had included only a limited sampling of displacements from Block 44 of the Southeast Overtown/Park West Redevelopment Area. We indicated in Finding No. 1 of the relocation review that corrections needed to be made in computing rental assistance payments for tenants displaced from this area. This review included a sampling of records for an additional 8-residential and 1-nonresidential (out of 4-5 nonresidential) cases. An interviews with one displacee and an inspection of his replacement dwelling was conducted. An attempt was made to interview 5 other displacees and inspect their dwellings but they were not at home. The review confirmed the need for corrective action by recomputing the rental assistance payments to take into consideration ability -to -pay as a factor to base monthly housing cost as required by the regulations applicable to displacements resulting from initiation of negotiation occurring prior to May 1, 1986. ' 9 A ON a 11 The files reviewed %ere: Precynds Aguilar (tenant, Highland Part) Jeronimo Bermudez (tenant, Highland Part) Nelio Exalus (tenant, Southeast Overtown/Park West) Rochnel Marcelin (tenant, Southeast Overtown/Park West) Julio Velez (tenant, Southeast Overtown/Park West) Based upon the sample taken of the Highland Park displacement, it was indicated that the agency computed the rental assistance based upon the "Common Rule" method of rent -to -rent but the initiation of negotiations occurred on 1/23/86 in the two cases revie%:,ed. This is shown below as a correctable finding. There was another finding and a noncorrectable finding, also shown below. . Finding No. 1. Computation of Rental Assistance Payment Incorrect. Discussion: In cases where initiation of negotiations occurs prior to May 1, 1986, the rental assistance payment is to be computed in accordance with Section 42.453(b) of the regulations in Handbook 1376.1 which refers to base monthly housing cost. Corrective Action Needed: In the cases of Jeronima Bermudez and Julio Velez, the recomputation would provide additional rental assistance, unless they accept Section 8 or other subsidized housing where the monthly housing cost would not be as great. In addition, report on corrections made in connection with other tenants who were displaced in Highland Park and Southeast Overtown/Part West as a result of initiation of negotiations occurring prior to May 1, 1986, but whose rental assistance was computed without using the base monthly housing cost requirad by the regulations. Finding No. 2. Rent charged by City for temporary occupancy of acquired properties exceeded the fair rental value at Section 42.215 of the regulations. Discussion: Since initiation of negotiations occurred prior to May 1, 1986, t e rule in the 1979 regulations (Handbook 1376.1) applies. In the case reviewed (Jeronima Bermudez), the rent notice sent to her by the City showed $172 per month, with water only provided by the City. The cost for fuel would have added more to her total monthly housing cost. Her ability -to -pa ,y was estimated at =170 per month. IRS-2119 001N a 3 Corrective Action Needed: If Ms.-dermudet overpaid rent to the City, she is entitled to a rent refund. In addition, please check all others displaced from this area for possible rent overpa.-Awnt and report basis for computing refunds made in each case. Other property where rents were set by the City should also be reviewed for any needed correction (e.g., Southeast Overtown/Park Nest). Noncorrectable Finding: Late Delivery of Notices of Displacement In the cases sampled for both Highland Park and Southeast Overtown/Part Nest, the notices were delivered between four and ten months after date of initiation of negotiations. Under the regulations applicable to these cases, the notices were to be delivered within 30 days of the date of initiation of negotiations for the property which they occupied (Section 42.205). Although the finding is considered noncorrectable in regard to the cases monitored, there may have been a number of persons who resided in the apartments or hotel rooms who were residents at the date of initiation of negotiations who moved before the relocation staff interviewed the residents and before the date of acquisition. The City should, therefore, obtain information to determine the names of occupants at time of date of initiation of negotiations and compare this list with the list of persons shown on its workload. Persons who in occupancy on the date of initiation of negotiations but who move subsequent to that date, are considered displaced by acquisition (the effective date of the notice of displacement being the date of initiation of negotiations). (See Section 42.205.) It was noted during the review that two of the three persons sampled who occupied the Davis Hotel were shown as having resided there for four years, indicating long-term residency. A follow-up monitoring visit will be made soon to obtain an increased sampling of displacekients from Block 44 of the Southeast Overtown/Park West project. Mdves prior to acquisition will be one of the matters which - will be reviewed during that visit. 2. Rental Rehabilitation Program The review included an examination of the City's tenant assistance policy and a review of one project (979 S.W. 4th Street), where it was .indicated there were four units out of eight units occupied prior to rehabilitation. All four tenants were eligible for Section 8 assistance and remained in the apartments. It is part of the City's policy that no lower income tenants will be permanently displaced due to proposed rehabilitation in any projects. In the City's four projects completed to date, there were no, "over income" tenants displaced. The staff is aware of the applicability of Section 104 M to rehabilitation programs. 88-21Q OON 0 3 Corrective Action Needed: If Ms. -Bermudez overpaid rent to the City, she is entitled to a rent refund. In addition, please check all others displaced from this area for possible rent overpa;iment and report basis for computing refunds made in each case. Other property where rents were set by the City should also be reviewed for any needed correction (e.g., Southeast Overtown/Park West). Noncorrectable Finding: Late Delivery of Notices of Displacement In the cases sampled for both Highland Park and Southeast Overtown/Part West, the notices were delivered between four and ten months after date of initiation of negotiations. Under the regulations applicable to these cases, the notices were to be delivered within 30 days of the date of Initiation of negotiations for the property which they occupied (Section 42.205). Although the finding is considered noncorrectable in regard to the cases monitored, there may have been a number of persons who resided in the apartments or hotel rooms who were residents at the date of initiation of negotiations who moved before the relocation staff interviewed the residents and before the date of acquisition. The City should, therefore, obtain information to determine the names of occupants at time of date of initiation of negotiations and compare this list with the list of persons shown on its workload. Persons who in occupancy on the date of initiation of negotiations but who move subsequent to that date, are considered displaced by acquisition (the effective date of the notice of displacement being the date of initiation of negotiations). (See Section 42.205.) It was noted during the review that two of the three persons sampled who occupied the Davis Hutel were shown as having resided there for four years, indicating long-term residency. A follow-up monitoring visit will be made soon to obtain an increased sampling of displaceawnts from Block 44 of the Southeast Overtown/Park West project. Mdves prior to acquisition will be one of the matters which - will be reviewed during that visit. 2. Rental Rehabilitation Program The review included an examination of the City's tenant assistance policy and a review of one project (979 S.W. 4th Street), where it was .indicated there were four units out of eight units occupied prior to rehabilitation. All four tenants were eligible for Section 8 assistance and remained in the apartments. It is part of the City's policy that no lower income permanently displaced due to proposed rehabilitation In the City's four projects completed to date, there income" tenants displaced. The staff is aware of th tenants will be in any projects. were no 'over e A9-210 4 8. Acquisition Review' Ed Jennings, Realty Specialist, reviewed four (4) out of six (6) parcels acquired under the threat of eminent domain by Dade County for the Cit of Miami's Department of Community Development. He also reviewed four out of eight (8) parcels acquired by the City of Miami's Department of Community Development as part of Section 108 Loan activity. Mr. Jennings also met with Jeffrey Hepburn, Assistant Director of Housing Conservation and Development Agency, and three (3) members of his staff to give technical assistance in the acquisition of parcels to be acquired. The files for the following parcels were reviewed: 1. Parcels acquired by Dade County for the City of Miami: 11-13-06 5-61-04 9-02-04 11-13-04 2. Parcels acquired by the City of Miami in their Section 108 Program: 44-0 44-C 44-G 44-A The review indicated that the acquisition process was carried out generally in compliance with the Uniform Act of 1970 and the implementing regulations as set forth in HUD Handbook 1376.1 effective September 26, 1979. There was, however, one finding which is shown below: Finding: The four (4)'parcels acquired by Dade County for the City of Miami, an two (2) of the parcels acquired by the City of Miami did not have a written review in the files explaining the review appraiser's basis for his recommendation of fair market value as required by Section 42.109(b) of the HUD Handbook 1376.1. ' This is a noncorrectable finding relative to the parcels reviewed. However, beginning with the date this letter is received by the City of Miami, parcels not yet acquired by the threat of eminent domain must have a qualified professional appraiser (whether staff or independent fee appraiser) review the ap?raisal(s) and prepare a written report explaining the basis for his recommendation of fair market value. Additional Comments:. Current regulations, HUD Handbook 1377, effective May 1, 1986, requires that all appraisals must be reviewed (Section 42.104). 88—ZibN �a A S The Agency has the responsibility of reviewing the experience, education, training, and other qualifications of appraisers. including review appraisers, and utilizing only those determinel to be qualified. Appraiser qualifications must be consistent with the level of difficulty of the appraisal assignment. (Section 42.103(e)). The review appraiser has the responsibility of obtaining an acceptable appraisal or appraisals. He must determine the adequacy of the appraiser's supporting data and documentation, the soundness of the appraiser's reasoning and whether the appraisal conforms with recognized appraisal practices. In particular, the review appraiser shall determine the correctness of the appraiser's opinion of the fair market value of each parcel. He must try to obtain necessary corrections or revisions prior to acceptance of the appraisals) (Section 42.104). If he cannot recommend an appraisal as an adequate basis for the establishment of just compensation, the Agency should obtain an additional appraisal or the review appraiser can develop his own appraisal to support his recommendation of value. However, this alight be a conflict of interest if the appraisal is made by a staff review appraiser. This would -deprive the owner of the benefit of having a disinterested party determining the value of his property. The review appraiser should never average two (2) or more appraised values to arrive at his recommendation of fair market value, and he should never automatically recommend the higher or lower appraised value. His recommendation should be a matter of judgment based on his experience and education, and not a mathematical or mechanical process. l3 R8--21l� 4 ••�►.*..• . ` fit_• . November 1987 Mr. Frank Castangda Director Department of Community Development 1145 N.N. llth Street Miami, FL 33136 Dear Mr. Castaneda: ,..I.. U.S. D"Siln►ent of "outing and ikMm beveiap item Allanla Regional ollice, Reginn 1V Richard B Russell Federal Building IS Spring Street, S W. Allante, Oeewgia 30303.3366 SUBJECT: Compliance Monitoring - Relocation Community Development Block Grant Program . Project No. 8-86-MC-12-0013, Section 108 Loan Guarantee City of Miami, Florida .' • Enclosed is our review of information provided with your letter dated October 13, 1987, to Mr. Cleveland B. Talmadge which was in response to previous letters sent to you as a result of monitoring which was conducted in May and August 1987. We are responding directly to you from this office in accordance with current procedures. Please note the findings remain open due to the follow-up actions still needed in connection with the Southeast Overtown/Park West Redevelopment Area. We understand some files have been misplaced due to changes in staff assignments and office space but progress should be made in reviewing other cases. Mr. Gannon Coffey, Supervisory Relocation Specialist, is planning to visit Miami on November 30 and possibly December 1, 1987, to review corrective actions taken. At that time, he will be able to provide you with a preliminary determination as to whether the corrective actions being taken are satisfactory and perhaps provide technical assistance, if needed. In the meantime, please let us know if you have any questions. Monthly reports of progress in resolving the findings may now be sent directly to this office until all findings are cleared. Sincerely, rles N. Straub rector ffice of Community Planning and Development Enclosure /y 88-21A REVIEW OF RESPONSE COMPLIANCE MONITORING - RELOCATION CITY OF MIAMI, FLORIDA PROJECT NUMBER 8-86-MC-12-0013 SECTION 108 LOAN GUARANTEE The following comments and reconew ndat ions are made in resnrnise to City of Miami's letter dated October 13, 1987, which was in response to findings made as a result of monitoring visits made on May 28-29, 1987, August 3-4, 1987. Finding No. 1 - Computation of Rental Assistance Payment Incorrect the And A. Jeronima Bermudez: The information provided concerning Ms. Bermudez's income is sufficient to show the original computation of the payment was correct. • B. Julio Velez: This case remains open and will be included as part of the special caseload for the Southeast Overtown/Park West Redevelopment Area. C. In regard to other tenants displaced in the Highland Park Area, the response indicates the files were reviewed and computations found to be in accordance with base monthly housing cost requirements at Section 42.453(b).. This is satisfactory. Concerning tenants displaced in the Southeast Overtown/Part West Redevelopment Area, it was indicated that additional time will be needed. Some of the files have been misplaced. Please provide us with monthly progress reports until all follow-up actions are completed. Finding No. 2 - Rent Charged by City for T Properties Exceeded the Fair Rental Value Acquired The response is satisfactory relative to the Highland Park area. It was explained that the forms used to establish rents were not placed in the case file folders. The rent charged to Ms. Bermudez was found to be correct due to her income. However, as indicated in your response, the Overtown/Park West area cases still need to be reviewed. Please provide monthly progress reports until follow-up actions are completed. Finding No. 3 - Evidence of Receipt of Replacement Housing Payment Was Not in File The response included evidence of original rental assistance payment for all seven cases. The response did not address the matter of evidence of adjusted payments. We assume this is because no cases had been reviewed for adjustment prior to your response. The response is satisfactory relative to the original payments made. Information concerning adjusted payments in these particular cases should be provided when you review the larger number of cases in connection with Finding No. 1. The finding remain3 open. Re-z1N AW 2 Flndin� Ilo. si • Monthly Movsing Cost at Acavired and Replacement Dwell i The response indicates the Dade County relocation staff is in the process of recomputing Mr, Allen's Rental Assistance Payment. Please include resillts in your next monthly report. Finding remains open. Finding No. 5 - Documentation in Some Files indicates Comparable Replacement The response indicates listings of referrals were given to the tenants and should have been placed in each file folder and that it is the intention of the City to make adjusted payments where this cannot be docimmented. Wo recommend making adjusted payments in these cases in conjoinction with reviews being made in connection with Finding No. 1. the two findings could affect the some persons in a number of cases. This findingalso remains open pending completion of corrective actions. Please report progress being made on the finding and others as indicated above on a monthly basis.. kv A"1e Am 2 - nonthlY Mawsi%_C_ost at Acouired and Replacement Owell i the response indicates the Dade County relocation staff is in the process of recomputing Mr, Allen's Rental Assistance Payw.nt. Please inr.lude resioits in your next monthly report. Finding remains open. Findina No. 5 - Documentation in Some Files indicates Comparable Replacement The response indicates listings of referrals were given to the tenants and should have been placed in each file folder and that it is the intention of the City to make adjusted payments where this cannot be documented. NOO, recommend making adjusted payments in these cases in con,iomction with reviews being made in connection with Finding No. 1. The two findings could affect the same persons in a number of cases. This findl also remains ng open pending completion of corrective actions. Please report progress being made on the finding and others as indicated above on a monthly basis,. T. 16