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HomeMy WebLinkAboutR-87-0619F J - 8 7 - 5 7 3 6/24/87 RESOLUTION NO.'���? A RESOLUTION DECLARING A HOUSING EMERGENCY IN THE CITY OF MIAMI RELATIVE TO THE SEVERE SHORTAGE OF HOUSING WITHIN THE AFFORDABILITY RANGE OF FAMILIES AND INDIVIDUALS OF LOW AND MODERATE INCOME; FURTHER AUTHORIZING THE IMPLEMENTATION OF THE CITY SPONSORED SCATTERED SITE HOUSING DEVELOPMENT AND AFFORDABLE HOMEOWNERSHIP OPPORTUNITY PROGRAM DEMONSTRATION PROJECT PLANNED ON THE CITY - OWNED CARVER BRANCH -YMCA SITE IN THE MODEL CITY COMMUNITY DEVELOPMENT TARGET AREA AND AUTHORIZING THE CITY MANAGER TO WAIVE THE REQUIREMENT OF SALE, CONVEYANCE OR DISPOSITION TO THE HIGHEST RESPONSIBLE AND RESPONSIVE BIDDER IN CONNECTION WITH THE DISPOSITION OF SEVEN OWNER -OCCUPIED SINGLE FAMILY HOMES PLANNED FOR DEVELOPMENT ON THE AFOREMENTIONED CITY -OWNED PARCEL LOCATED AT 5770 N.W. 15TH AVENUE WHICH IS LEGALLY DESCRIBED AS LOTS 1,2,3, 21,22,23 AND 24 IN BLOCK 32, FIRST AMENDED PLAT FLORAL PARK, RECORDED IN PLAT BOOK 8, AT PAGE 5, OF THE PUBLIC RECORDS OF DADE COUNTY, FLORIDA. WHEREAS, since 1980, the Federal government has drastically decreased its previous commitment to serve as supplier and sustainer of affordable housing; and WHEREAS, the Federal government's withdrawal is evidenced by the budget cuts which the U.S. Department of Housing and Urban Development has experienced since 1981 when its net budget authority for low income housing programs was over $30 billion dollars while the proposed 1988 budget calls for a budget authority of only $3.9 billion dollars; and WHEREAS, this withdrawal by the Federal government, ending 50 years of federal involvement in providing funding for housing assistance programs to provide new affordable housing opportunities for the elderly and for low -moderate income families has resulted has resulted in a severed shortage of housing within the affordability range of families and individuals of low and moderate income in the City of Miami and throughout the nation; and CITY COMMISSION M E E lWG Cr JUN 25 +937 m tip:, 8 -619 WHEREAS, the national inflationary spiral of the late 1970's and early 1980's brought about a dramatic and unprecedented increase in the value of residential real estate in the South Florida market place with which the personal economic growth of thousands of Miami families was unable to keep pace; and WHEREAS, today, according to the first quarter statistics of the Federal Home Loan Bank Board, the average price of a new or preowned home in the Greater Miami market area is $93,500, representing a 3.6% increase in the price of the average home just one year ago; and WHEREAS, from 1976 to 1986, home prices have risen by approximately 112%, on average; and WHEREAS, the average cost of a home in Greater Miami is reported to be $93,500, the median family income in the area is reported by the Federal Government to be $29,688, vastly insufficient to support the mortgage related costs associated with purchase of such a home; and WHEREAS, a median priced home in Miami requires an annual income of approximately $35,000 to sustain, the median family income of families living in the City's Community Development Target Areas is by definition less than $23,750 which is sufficient to support the monthly mortgage related costs of a home in the $50,000 price range; and WHEREAS, in the City's Community Development Target Areas the carrying costs associated with the purchase of a home in the Target Areas is substantially beyond the economic reach of most target area residents; and WHEREAS, this problem is even more critical in the City's Community Development Target Areas where there exists a severe shortage of homeownership housing in the $50,000 price range; and WHEREAS, the costs of land, materials and labor in the Miami market place effectively preclude the development of single family homes within the purchasing power and affordability range of the City's low and moderate income residents by the private housing industry City-wide, but more particularly in the City's Community Development Target Areas; and 2 87 -613 WHEREAS, in an effort to address this tremendous need for new affordable homeownership opportunities in the City's Community Development Target Areas, the City Commission, in October of 1986, approved the implementation of the City's Scattered Site Housing Development and Affordable Homeownership Opportunity Program; and WHEREAS, in an attempt to further address this City wide shortage of affordable sales housing for City residents, particularly in the Model City Target Area, seven units of sales housing have been planned for development on the City -owned Carver Branch -YMCA site as a demonstration project; and WHEREAS, Section 18-78.1 of the Code of the City of Miami, Florida, requires that competitive bidding methods be used for the sale or disposition of City owned real estate, and WHEREAS, the application of Section 18-78.1 of the Code of the City of Miami, Florida, would preclude the City from achieving its objective of providing affordable housing opportunities to low and moderate income families and individuals due to the requirement of this Section which requires the sale of City -owned property housing units to the highest responsible and responsive bidder; and WHEREAS, the City Charter and Section 18-78.2 of the Code of the City of Miami, Florida, authorize the City Commission to waive the requirement of sale, conveyance or disposition of City - owned property to the highest responsible bidder based on a written finding by the City Manager supported by reasons that a valid emergency exists; and WHEREAS, the City Manager has made such finding in regard to the herein property; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Commission, by an affirmative vote of two-thirds of the Commission, hereby ratifies the finding of the City Manager as set forth in the recitals of the preamble to this Resolution which recitals are all adopted by reference and made a 3 8 -6 1.s t, r part of this Section and further hereby recognizes and declares that a valid housing emergency exists in the City of Miami, Florida. Section 2. The City Commission hereby affirms the objectives of the City's Scattered Site Housing Development and Affordable Homeownership Opportunity Program and based on the herein emergency hereby waives the requirement of sale, conveyance or disposition to the highest responsible bidder in connection with the seven owner -occupied single family homes to be developed by the City on the publicly owned Carver Branch -YMCA site located at 5770 Northwest 15th Avenue, and which is legally described as Lots 1, 2, 3, 21, 22, 23 and 24 in Block 32, First Amended Plat FLORAL PARK, recorded in Plat Book 8, at Page 5, of the Public Records of Dade County, Florida. Section 3. The City Commission further authorizes the City Manager to market these units to prospective prequalified low and moderate income City residents to be selected through a public lottery. Section 4. For the purpose of this resolution, qualified low income City residents shall be those families or individuals, including the elderly, whose gross income does not exceed 80% of median income for the Dade County Primary Metropolitan Statistical Area (hereafter referred to as PMSA) nor fall below 50% of the median income for the PMSA, as reflected in the attached Schedule "A". Section 5. For the purpose of this resolution, qualified moderate income City residents shall be those families or individuals, including the elderly, whose gross income does not exceed 120% of the median income for the Dade County Primary Metropolitan Statistical Area (PMSA) and whose adjusted gross income does not fall below 80% of the median income for the PMSA as reflected in the attached Schedule "A". M 8 -61.9 t c PASSED AND ADOPTED this 25th day of June 1987. ATTEST: MATTY HIRAI, CITY CLERK LEGAL REVIEW: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED Acl-TO FROM AND CORRECTN S• LUCIA A. DOUGHE CITY ATTORNEY 5 8 -613 SCHEDULE "A" INCOME LIMITS Effective February 6, 1987 PMSA: MIAMI-HIALEAH, FLORIDA 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON Very Low income 10600 12100 13650 15150 16350 17550 18800 20000 Lower income 16650 19000 21350 23750 25250 26700 28200 29700 Median Income 20813 23750 26688 29688 31563 33375 35250 37125 120% of :Median 24975 28500 32025 35625 37875 40050 42300 44550 Note: Median .and 120% of median is based on Lower income figure. H.U.D. adjusts very low income and lower income figures so median would be different using either as base. 31 CITY OF MIAMI, FLOI1RIOA INTEROFFICE MEMOIRANDUM TO. Honorable Mayor and Members DATE: June 2, 1987 FILE: of the City Commission SUBJECT Resolution Declaring Critical Shortage Of Affordabie Home- ownership Opportunities; Further Cesar H. Odio Waiving Competitive Bidding FROM, City Manager 6P REFERENCE8:Requirements In The Disposition Of City Developed Sales Housing ENCLOSURES:Clty Commission Agenda Item: June 25, 1987 The national inflationary spiral of the late 1970's and early 1980's brought about a dramatic and unprecedented increase in the value of residential real estate in the South Florida market place with which the personal economic growth of thousands of Miami families was unable to keep pace. Today, according to the first quarter statistics of the Federal Home Loan Bank Board, the average price of a new or preowned home in the greater Miami market area is $93,500, representing a 3.6% increase in the price of the average home just one year ago. Indeed, between 1976 and 1986, home prices have risen by approxim.-tely 112%, on average. From the homeownership affordability standpoint, the advantages of the lower home mortgage interest rates of the last 18 months have been neutralized by steadily increasing residential real estate costs. While the average cost of a home in greater Miami is reported to be $93, 500, the median family income in the area is reported to be $29,688, vastly insufficient to support the mortgage related costs associated with purchase of such a home. The disparity that exists between average family income and average home purchase costs is best described as "the homeownership gap", and it adversely affects thousands of hard- working Miami families who aspire to homeownership, but have been virtually shut out of the home purchase market by home purchase costs that have risen much faster than has family income. The ramifications of this homeownership affordability gap extend well beyond the dampening of the homeownership aspirations of these families. In fact, the homeownership affordability gap in Miami adversely affects the quality and availability of Miami's rental housing inventory which is static and overburdened by families who cannot afford to move into the homeownership market, thereby limiting rental housing opportunities for young families not yet ready for or able to fulfill the responsibilities associated with homeownership. Most experts agree that the "anti -housing development" provisions of the Tax Reform Act of 1986, coupled with the federal government's nearly complete retreat in domestic housing spending will result in a private investment moratorium on the production of new, affordable rental housing. Unless efforts are undertaken at the local level to free up Miami's overburdened rental housing inventory through jointly sponsored public and private initiatives to bring homeownership opportunities within the economic reach of those working poor families often described as families of "modest" or "moderate" income, the already short supply of affordable rental housing will be overburdened to the breaking point. In recognition of the problem, the Florida State Legislature, in 1983, passed local option legislation allowing certain political jurisdictions the authority to double the cost of documentary stamps for the recordation of commercial mortgage documents. To date, Metropolitan Dade County's "Documentary Surtax" program has assisted 498 families in bridging the homeownership affordability gap through its deferred second mortgage home purchase financing program. However, the demand for such home purchase financing assistance far outstrips projected "surtax" revenues. Moreover, the surtax program alone does not address the need to decrease the "front loaded" costs of home production, equally important to bridging the housing affordability gap in Miami. It is clear that a meaningful response to Miami's homeownership affordability dilemma must involve public -private involvement to both reduce the basic cost of the housing product and reduce mortgage related carrying costs associated with homeownership. In the fall of 1986, the City Commission took a major step toward the ultimate resolution of the existing housing affordability gap in approving implementation of the Scattered Site Affordable Housing Development Program, which has as its major objective City sponsored development and "at cost" delivery of single family homes to be developed on an infill basis in the City's Community Development Target Areas. Construction funding for this unique program was also approved by way of the issuance of a special obligation housing bond issue, the proceeds of which will be used as a revolving construction fund. Last month, the City Commission approved, subject to a public hearing, the acquisition of 31 underutilized homesites in the Allapattah, Wynwood, and Manor Park neighborhoods, for development of the planned housing units. On June 25, 1987, the City Commission will be asked to take several additional steps necessary to the successful implementation of the program, including the approval of a Housing Development and Affordable Homeownership Opportunity Demonstration Program, which has as its objective the construction of seven affordable single family homes on a City- 2 8i owned parcel of land in the Model City Community Development Target Area. Among the actions the City Commission will be asked to take are: 1) Approval of the site plan, unit design, and configuration of the seven dwelling unit demonstration projects to be developed on a site presently owned by the City in the Model City Community Development Target Area. 2) Approval to request bids from private contractors for the construction of the demonstration homes. 3) Approval or the home buyer selection process, which will involve a two-tier application screening and public lottery process. 4) Approval of a two-tier mortgage financing program involving the provision of first mortgage buyer financing by Barnett Bank and second mortgage financing by the City of Miami with interest income derived from the investment of 1976 General Obligation Bond proceed principal. As the primary objective of the Scattered Site Aifordable Housing Development Program is to deliver quality homes to low and moderate income buyers at affordable prices, it will also be necessary for the City Commission, after a public hearing has been conducted, to make a finding that Miami's housing affordability crisis warrants waiver by the City of the Ch artar requirement that all City -owned property be sold to the highest bidder, which is allowed for in the City Code. It is recommended that the City Commission adopt the attached resolution. 9 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorab ' Mayor and Members DATE June 25, 1987 11LEJ-87-573 o th City Commission SV9.E_r Declaration of Housing Emergency -- Conveyance of Carver Branch YMCA Site: 2/3rds (or 4/5ths) vote FROM `�iuoi � . DO11 ty REFERENCES City Commission Agenda Cit Attorney d 6/25/87; Item #31 FNCL OSuPFS Public Hearing - 2 : 30 P.M. (2) We are attaching a copy of the City Manager's required finding of an emergency in connection with the conveyance of seven single- family owner -occupied dwellings at the above site. The attached approved Resolution contains the reference to the 2/3rds (4/5ths) vote needed for adoption of the resolution and a reference to the City Manager's emergency finding. LAD/RFC/bss/P413 cc: Cesar H. Odic, City Manager Matty Hirai, City Clerk 8 7 —61: CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO Fi le DATF June 24, 1987 FILE J-87-573 SUB_E-.' Conveyance of Carver Branch -YMCA Site rROA1 Cesar H. Odio (� �; ,j Nf-FI.RF�4,-L Agenda Item #31, City City Manager kCommission Agenda w t �June 2 5, 1987 I hereby find that there is an urgent and immediate need to make homeownership affordable and available on a non-discriminatory basis to that segment of the City's population whose members can survive without receiving direct substantial social service assistance but who face insurmountable difficulty in obtaining sufficient credit to finance private housing; further, the acute need for the City Commission to intervene and assist in strengthening the whole fabric of community living is hereby found to constitute a valid emergency warranting and supporting the disposition of the herein seven City -owned homesites, commonly known as the Carver Branch -YMCA Site, on the non- segregated basis which is proposed by this Resolution.