HomeMy WebLinkAboutR-85-0191:_;0 ',
J-85-62
RESOLUTION NO. 5645*%ft
A RESOLUTION APPOINTING CERTAIN
,
INDIVIDUALS AS MEMBERS OF A CITIZENS
ADVISORY COMMITTEE TO ASSIST THE
ADMINISTRATION IN DEVELOPING CITY-WIDE
POLICY FOR AN AFFORDABLE HOUSING TRUST
FUND AND FURTHER DIRECTING THE CITY
MANAGER TO PREPARE WITH THE ADVISORY
COMMITTEE ASSISTANCE, RECOMMENDATIONS FOR
APPLYING CITYWIDE, AN AFFORDABLE HOUSING
TRUST FUND CONCEPT.
WHEREAS, the City Commission on June 15, 1983, amended the
`
SPI-5 ordinance (M-83-548) to include an affordable housing bonus
to support the development of moderate cost in the City of Miami;
' and
t
3 WHEREAS, in a June 7, 1984, memorandum from Mayor Ferre, a
request was made to extend consideration of the affordable
housing trust fund to citywide applicability; and
WHEREAS, the impacts of applying housing trust fund
requirements to commercial and office development citywide are
extensive and complex therequiring an in-depth review of
potential policy options; and
WHEREAS, certain individuals engaged in private sector
_l business, development and civic activities can provide informed
review and comment to the administration and City Commission on
affordable housing policy citywide;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The following individuals are appointed to a
Citizens' Select Committee on City-wide Affordable Housing Trust
Fund policy and are hereby charged with assisting the
Administration in formulating recommendations to the City
Commission as to appropriate and necessary policies for
implementing City-wide the concept of an affordable housing trust
fund and upon concluding the formulation of said policies, report
its findings and recommendations to the City Commission.
cm C:OIQ i
MEETING Qp
M
1- ALLEN MORRIS, JR.
Allen Morris Co.- Property Management
2- ARMANDO CODINA
Interamerican Investments
3- JANET COOPER
Attorney
4- HILARIO CANDELA, Partner
Spillis-Candela, Architects
5- RON FRAZIER, Principal RON FRAZIER & ASSOCIATES
Urban Design / Architecture
6- MARTIN FINE
Greater Miami Chamber of Commerce, DDA
7- SANDY ROSENBLITH
Local Initiative Service Corporation
8- OTIS PITTS
Tacolcy Economic Development Corp.
9- BETTY WALKER
Wolman Housing
10- MARIA ELENA PRIO DURAN
East Little Havana Committee
11- DOUG BRASHMAN
Southeast Bank Enterprise Foundation
12- GEORGE PEREZ
Related Housing, Developers
13- HOWARD SCHARLIN
DDA Board Member / Katcher-Scharlin, Attorneys
14.
15- - - - -
16.
17- - - - -
18.
19• - - - -
20.
Section 2. The City Manager is hereby directed to prepare a
report to the City Commission on the need for impacts of and
implementation policies for an Affordable Housing Trust Fund for
the City of Miami in concert with the input, review and
recommendations of the above established Citizens' Select
Committee.
-2-
PASSED AND ADOPTED this 28 day of February , 1985.
ATTEST:
ndl}Ju u. v.,F,--
PREPARED AND APPROVED BY:
CHIEF DEP
APPROVED
City Attorney
ATTORNEY
D CORRECTNESS:
MAURICE A. FERRE
MAURICE A. FERRE, MAYOR
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23
COMMISSION ACTION
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO. Randolph B. Rosencrantz
City Manager
FROM>fe
o Rodriguez, Director
lanning Department
oATE: January 15, 1985 FILE,
SUBJECT: Citywide Off -site
Affordable Housing
Contributions
REFERENCES:
City Commission Meeting:
ENCtosuREs: January 24, 1985
It is recommended that the commission appoint
a Citizens Advisory Committee on City-wide
Off -site Affordable Housing Contri'butions for
the purpose of facilitating the cons ruction
or rehabilitation of affordable housing units
through developer contributions, per the
attached resolution.
The Planning Department and Community Development Department have
.•-N been conducting research concerning the potential application of
a "city-wide off -site affordable housing contribution" from
future office development and the establishment of an Affordable
Housing Trust Fund to subsidize the construction or
rehabilitation of affordable housing units. This concept was
initiated in cities such as San Francisco and Boston and recently
adopted by the City of Miami within the SPI-5 and SPI-7 zoning
districts in Brickell. (See Attachment "A" - Developer
Participation Programs in San Francisco and Boston).
It is recommended that a citizens advisory committee be
established to look at 'a city-wide approach, rather than
targeting the Brickell area on this subject. It is envisioned
that this committee would hold several meetings with technical
input from staff, and help to formulate a conceptual program for
recommendation to _the Commission -as early as April, 1985. The
following persons have been recommended for the citizens advisory'
committee, representing a cross section of office developers,
housing developers, attorneys, architects, and civic leaders
having particular involvement in this issue:
Allen Morris, Jr.
Allen Morris Co. - Property. Management
Armando Codina .
Interamerican Investments
.
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Randolph B. Rosencrantz
City Manager
Janet Cooper, Attorney
Hilario Candela, Partner
Soillis-Candela Architects
Ron Frazier, Principal
Ron Frazier and Associates
Urban Design/Architecture
January 15, 1985
Martin Fine
Greater Miami Chamber of Commerce, DDA
Laurie Raskin
Greater Miami United
Sandy Rosenblith
Local Initiatives
Service Corporation
Otis Pitts
Tacolcy Economic Development Corp.
Betty Walker
Wolman Housing
Maria Elena Prio Duran
East Little Havana Committee
Doug Brashman
Southeast Bank Enterprise Foundation
George Perez
Related Housing, Developers
Howard Scharlin
DDA Board Member
Katcher-Scharlin Attorneys
SR/JWM/dr
ATTACHMENT
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ATTACHMENT "An CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
To: Randolph B. Rosencrantz
City Manager
FROM: 4 4ningoDepartment
riguez, Director
DATM January 11, 1985 me.
sua,acT: Developer Participation
Programs in San Francisco
and Boston
9NCLOSUREs1
Per the request of Mayor Ferre information is
supplied to enable the Commission to discuss
developer participation programs in
ranc sco and Boston.
San Francisco and Boston have developer participation programs
that require developers of major projects to also participate in
housing programs within the respective cities. Developers of
major non residential projects are required to contribute a fee
based on the project's floor area. Fees are then utilized to
sponsor a housing development, provide financial assistance for
housing projects or contribute to a housing trust fund to
increase the supply of low and moderate income housing. Seattle
is considering a program to grant increased floor area ratios in
return for participation in housing programs.
j Chicago is currently considering a linked development program
focused on neighborhood redevelopment whereby major downtown
developers would provide seed capital for neighborhood
redevelopment, engage in joint ventures with neighborhood
developers and provide technical assistance to neighborhoods.
Attached are brief summaries of the existing and proposed
programs.
In comparison, the City of Miami currently allows developers in
the Brickell Area (SPI-5 and 7) to contribute to an affordable
housing trust fund in return for additional office space. The
developers of Brickell Key on Claughton Island are currently
identifying an appropriate developer participation program in
lieu of the requirement to provide 200 low income housing units
on the Island.
,-, It is requested that this
Agenda of January 24, 1985.
SR/JWM/dr
item be entered on the City Commission
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PROGRAM: San Francisco Office/Housing Production
Program
STATUS: Enacted in 1980, but currently under revision.
(See "Current Status" below)
PURPOSE: To promote housing production city-wide and to
balance office/commercial development.
-.� BACKGROUND AND
DESCRIPTION: Faced with a severe housing shortage coupled
with a boom in office development (which
further increased demand for housing), the
Office/Housing Production ' Program was
initiated in 1980 along with other financing
and zoning tools to encourage housing
production in the City of San Francisco. The
program requires all developers proposing at
least 50,000 square feet of office space to
contribute to the OHPP by sponsoring a housing
development, providing financial assistance
for other housing projects or contributing
' monies to. the Home Mortgage Assistance Fund.
The degree of participation is determined by a
housing demand formula. The formula,
calculates the housing demand created by new
office by projecting the number of workers
based on the assumption that one employee
would occupy 250 sq. ft. of space and that•40%
of the employees would reside in the City.
The formula requirement works out to be about
1 dwelling unit per every 1800 sq. ft. office
space.
In order to receive an occupancy certificate
from the City, developers must satisfy the
OHPP obligation. Once a development has
submitted a satisfactory plan for meeting the
obligation, the City issues a temporary
occupancy permit. The developer than has
three years to comply with requirements before
receiving the final occupancy certificate.
DEVELOPMENT AND
RESOURCES GENERATED: .__Since 1980, OHPP had generated 6000 units of
housing valued at $20,437,000, which have been
constructed directly or financially assisted
by 19 office developers. Fifty per cent of
the units have involved moderate or
substantial rehabilitation. The Housing
Mortgage Assisfancd Trust Fund has raised
r� approxim"ely $5 million from three office
developers ' that elected to contribute
specified monies rather than construct housing
directly.
Kim 14601
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CURRENT STATUS: The City is considering the adoption of the
OHPP formally in their municipal zoning
ordinance as an exercise of the local zoning
power delegated by the State of California.
Several revisions to the ordinance are
currently being considered which would
restrict the program to low and moderate
income housing (five developers- have been
allowed to satisfy OHPP requirements by
-� building luxury condominiums on the top of
their office - buildings), standardize the
amount of each developer's contribution,
eliminate the complicated , housing credit
system and simplify other 'procedural aspects
of the program. Another suggested. proposal is
to. exempt those office buildings where at
least half -the prospective tenant firms are
relocating to the City. This however has been
ruled out as being unenforceable and illegal.
COMMENTS: The OHPP is a citywide program that does
not geographically direct housing
placement.
The OHPP promoteshousing production but
does not target such development to low or
moderately priced housing-.
The program is dependent on continued
downtown office pressures -..-
The program has increased up front office
construction costs by $3.00 - $5.00.
The OHPP does not promote or encourage any
sort of minority participation.
Each participation agreement is handled•
case by case which is time intensive and
lacks standardized procedures and
conclusions.
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PROGRAM: Boston Linkage Program
STATUS:
PURPOSE: To generate additional funds to assist
development of low and moderate income
housing.
DESCRIPTION: Boston, like San Francisco, has experienced a
significant increase in downtown - development
in recent years, accompanied by an
increasingly tight rental housing market and
continuing disinvestment in " poorer
neighborhoods. With Bo►ston's. "Linkage
Program", developers making application for a
variance, conditional use permit, exception,
zoning map or text amendment to erect,
substantially rehabilitate, enlarge or extend
a building within the (designated) Downtown
Impact District must enter into an agreement
with the Boston Redevelopment Authority .and
the Neighborhood Housing Trust to be
responsible for a development exaction.
A fee of $5.00 per square foot of development
in excess of 100,000 sq. ft. of development is
required for office, retail business,
institutional, educational and hotel uses
within the boundaries of Boston's "Development
Impact District". The $5.00 exaction rate
shall be recalculated every 5 years on the
basis of changes in the relationship between
commercial development and housing need..
Theoretically, the formula could be
periodically readjusted to accurately reflect
changes in the rate of commercial development.
Unlike San Francisco, ' the fees are not.
required at time of occupancy but rather are
paid in 12 equal annual installments payable
over 14 years. The first installment is due
upon the issuance of a certificate of
occupancy for the project building or 24
months after the granting of the building
permit, whichever comes first. The remaining
eleven payments will be due on the ,
anniversary of the first payment. All
payments will be deposited in the Neighborhood
Housing Trust and all proceeds will be used to
increase the supply of low and moderate income
housing. — -.
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REVENUES OR
DEVELOPMENT GENERATED: No development will be generated until 1986
because of the structure of the exaction
payments.
Over a ten year period, revenues estimated
range from $37 million to $52 million.
COMMENTS: Made over a 12 year period, exaction
payments would amount -to app•roximately-•42
cents per square foot annually as opposed
to an upfront charge of $5.00. This allows
charges to be absorbed thro-ugh revenues
rather than initial capital costs.
Targets other developments- aside from
exclusively office as with most plans.-
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PROGRAM: City of Chicago's "LINKED DEVELOPMENT"
STATUS: Development Stage - currently being reviewed
by the Mayor's Advisory Committee on Linked
Development. Findings and recommendations due
in 1985.
PURPOSE: To generate quantifiable linked development
contributions or investments' (money and in -
kind services) for neighborhood development
and revitalization.
DESCRIPTION: The exact format for the Linked Development
program has not been determined. Forms
currently being considered include the
creation of a capital pool providing seed
capital for neighborhood development, joint
ventures between major downtown and
neighborhood developers, and technical
assistance in such areas as financial analysis
and packaging, leasing, construction
implementation and real estate brokerage. The
advisory committee has not yet determined if
revenues for linked development should be
generated through mandatory, negotiated or
voluntary approaches.
COMMENTS: 0 Focus is on development of neighborhoods not exclusively housing.
Literature indicates that concern is not in
exaction fee collections but rather with
the transfer of in -kind services to provide
needed training.
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PROGRAM: Seattle, Washington: Proposal of Interim
Development Guidelines
STATUS: Under Consideration
PURPOSE: To provide support for low and moderate income
housing in downtown area in exchange for
exceptions on building heights. _
BACKGROUND AND
DESCRIPTION: Previous zoning policies limited Floor Area
Ratios in Downtown Seattle to 10.0 The ratio
was later raised to 15.0 provided extra
amenities including pedestrian arcades and
street lighting were incorporated in
development plans. New rules currently being
debated, would permit an FAR- of -20.0 if
developers participate in low or moderate
income housing in the downtown area. To
qualify for the higher ratio 20.0, developers
must contribute $15.00 per 20 sq.. ft. of
office proposed or provide non -cash incentives
(specific alternatives. still being
considered). _
COMMENTS: Targets increases in housing and office
developments to downtown area only.
Requires only those developments in excess
of a 15 FAR to participate.
Proposal is considering in -kind services as
alternative to exaction fees. -
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