HomeMy WebLinkAboutR-84-0205J-8A-95
2/8/84
RESOLUTION NO.
a "" .
A RESOLUTION INDUCING THE wi,rHiN NAMED
PROJECT SPUP SORS TO IKC[3P CER; AIi,T COS'f'S GdI'I'H
RESPECT TO CERTAIW MUUTl—FAMILY RENTAL,
HOUSING DEVELOPMENTS.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI
FLORIDA:
Section 1. The Commission of the City of Miami, Florida
(the "Commission"), has found and determined and does hereby
declare that:
(a) Pursuant to the Florida Municipal Home Rule Powers Act,
Chapter 166, as amended (the "Act"), and the charter of
the City of Miami (the "Cite"), Chapter. 10847, Special
Laws of Florida, 1925 as amended, the Commission on
January 13, 1983 duly adopted Ordinance No. 9539
("Ordinance No. 9539") and made findings therein
recognizing and declaring that there exists in the City
a serious shortage of safe and sanitary dwelling
accommodations available at rents and costs which
families and persons, including the elderly, of low or
moderate income can afford; and that the shortage of
such dwelling accommodations constitutes a menace to
the health, safety, morals and welfare of the people of
the City, impairs economic values and imposes excessive
burdens upon the City.
(b) The City is
a political
subdivision of
a state within
the meaning
of Section
103(a)(1) of
the Internal
.Revenue Code
of 1954, as
amended (the
"Code"), or a
constituted authority authorized to issue obligations
for and on behalf of such a political subdivision, all
within the meaning of the applicable regulations under
the Code,
CITY COMMISSION
MEETIT TG OF
FE B 9 1984
RESDIUliu.,
REWMS.
(c) Certain private developers (the "Developers")t own or
propose to acquire real property at the following sites
and construct or rehabilitate the following multi-
family housing developments (the "Developments"). The
Developers# the Developments# the estimated number of
units# the presently estimated reimbursable cost of
construction or rehabilitation and the locations
thereof are as follows:
1. Related Housing with Consort# Ltd.# Thacker
Construction and Marbilt, Inc.# Melrose Nursery#
426 units of new construction, $24,000,000
estimated reimbursable costs, 2741 Northwest 27th
Avenue;
2. Related Housing with Consort, Ltd., Thacker
Construction and Marbilt, Inc., Police Benevolent
Association, 430 units of new construction,
$24,000,000 estimated reimbursable costs, 2300
Northwest 14th Street;
3. Circa, Ltd. with The Barness Organization,
Highland Park, Ill units of new construction,
$9,200,000 estimated reimbursable costs, Northwest
8th Street Road, Northwest loth Street, Northwest
llth Street and Northwest 7th Avenue;
4. Related Housinq with Consort, Ltd., Thacker
Construction and Marbilt# Inc., Civic Center, 135
units of new construction, $7,800,000 estimated
reimbursable costs, Northwest 18th Street and
Northwest 14th Avenue.
The Developments will alleviate the shortage in the
City of Miami of multi -family rental housing available
at rents which persons and families of low and moderate
income, including the elderly, can afford.
(d) The Developers have requested that the City issue its
revenue bonds (the "bonds") in an amount which,
together with other available funds, will be sufficient
to pay the cost of acquisition and construction of the
Developments, and to fund other costs and amounts
incidental to the issuance thereof, such Bonds to be
- secured by certain assets, revenues and money described
in the trust indenture securing the Bonds, and by
virtue of the provisions of Section 103(b)(4)(A) of the
Internal Revenue Code of 1954, as amended, and the
a2z
Treasury regulations in effect thereunder, the interest
on the Bonds will be exempt from Federal income
taxation if certain criteria fixed by said provisions
(the "Tax Requirements") are met,
(e) The Tax Requirements provide, among other things, that
obligations such as the Bonds must be in registered
form and that where, as in the case of the
Developments, original use of facilities commences (or
the acquisition of facilities occurs) on or after the
date of issue of obligations to provide such
facilities, costs of the facilities paid or incurred
prior to the adoption of a bond resolution with respect
to such obligations or some other similar official
action toward the issuance of such obligations cannot
be reimbursed with the proceeds of such obligations.
The Tax Requirements also provide that no portion of
the proceeds of such obligations may be used to retire
existing debt that users, such as the Developers, have
incurred with respect to the facilities, except for
temporary construction financing. The Tax Requirements
further provide that users, such as the Developers,
from the first date that 10% of the units in a facility
such as the Developments are occupied or the date of
issuance of the Bonds, whichever is later, to the later
of (1) 10 years after over one-half of the facility is
first occupied, (2) the end of the time interval
measured as the length of a period beginning with
occupancy of the first unit and ending with 50% of the
number of days of the longest maturing obligation, or.
(3) the date on which any subsidies under Section 8 of
the United States Housing Act of 1937, as amended (the
"Housing Act") terminate (the "Qualified Project
Period"), (A) maintain at least 20% of the housing
units of each Development for occupancy by tenants of
low or moderate income determined in a manner
W.3W,
Treasury regulations in effect thereunder# the interest
on the Bonds will be exempt from Federal income
taxation if certain criteria fixed by said provisions
(the "Tax Requirements") are met,
(e) The Tax Requirements provides among other things# that
obligations such as the Bonds must be in registered
form and that where# as in the case of the
Developments# original use of facilities commences (or
the acquisition of facilities occurs) on or after the
date of issue of obligations to provide such
facilities# costs of the facilities paid or incurred
prior to the adoption of a bond resolution with respect
to such obligations or some other similar official
action toward the issuance of such obligations cannot
be reimbursed with the proceeds of such obligations,
The Tax Requirements also provide that no portion of
the proceeds of such obligations may be used to retire
existing debt that users, such as the Developers, have
incurred with respect to the facilities# except for
temporary construction financing. The Tax Requirements
further provide that users, such as the Developers,
from the first date that 10% of the units in a facility
such as the Developments are occupied or the date of
issuance of the Bonds, whichever is later, to the later
of (1) 10 years after over one-half of the facility is
first occupied, (2) the end of the time interval
measured as the length of a period beginning with
occupancy of the first unit and ending with 50% of the
number of days of the longest maturing obligation, or
(3) the date on which any subsidies under Section 8 of
the United States Housing Act of 1937, as amended (the
"Sousing Act") terminate (the "Qualified Project
Period"), (A) maintain at least 20% of the housing
units of each Development for occupancy by tenants of
low or moderate income determined in a manner
�3s
i
�200 : 0
consistent with detertinations of lower income families
under Section a of the Housing Act` except that the
percentage of medium gross income qualifying as low or
moderate income shall be 80$, ($) maintain all units in
the facility for rental by members of the general
public and (C) rent no unit to the owner of the
facility or any person related (as defined in said
Treasury regulations) to the owner; The Tax Require-
ments also provide that at all times after the termina-
tion of the Qualified Project Period and while any of
the Bonds are outstanding, all of the units in the
Development will be rented to or available for rent by
persons and families of low or moderate income.
(f) The Developers have agreed or will agree to maintain,
for the Qualified Project Period, at least 20% of the
housing units of its respective Development for
occupancy by tenants of low or moderate income
determined as described in Section l(e)(A) above and to
comply with the other requirements mentioned in
subsection (e) above.
(g) The Commission has preliminarily determined, based upon
representations made by the Developers and without any
independent investigation having been made by the City,
that the construction of the Developments by the
Developers and the financing of all or a portion of the
cost of the Developments and the provision of long-term
financing for the Developments by the City will be in
furtherance of the purpose of the Act and that the
Developments are eligible for financing under the Act
and are projects for which the City may issue its
revenue bonds.
Section 2. The Commission hereby determines that it will
issue its multi. -family housing bonds in an aggregate principal
amount sufficient for the purposes of financing, together with
any other funds 4vailable therefor, the cost of the acquisition
4
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and construction of the Developments, including, without
limitation, the reimbursement for costs incurred subsequent to
this date and prior to the date of the issuance of the Bonds,
which amount is presently estimated not to exceed $65#000#000 and
of funding other costs and amounts necessary in connection with
the issuance and sale of the Bonds.
Section 3. The terms and details of the Bonds will be
determined by a bond purchase contract to be entered into between
the City and one or more banks, underwriting firms or other
financial institutions as approved by the Commission:
Section 4. The Commission has determined that this
resolution constitutes official action within the meaning of the
Tax Requirements.
Section 5. In the event that the City and the Developers
are unable to reach an agreement with respect to the terms and
details of the Bonds or the contracts therefor, or if other
circumstances prevent the issuance of the Bonds, there shall be
no resultant liability on either the City or the Developers nor
shall any third party have any rights against either the City or
the Developers by virtue of this resolution.
Section 6. Any bond resolutions or trust indentures
shall, when appropriate, contain an express provision that such
multi -family housing bonds shall be payable solely from the
revenues derived from the repayment of any loan made to finance
the Developments, and from certain assets, revenues and money
described in the trust indenture securing such Bonds and neither
the taxing power nor the faith or credit of the City or the State
of Florida, or of any political subdivision thereof, nor any
other funds of any nature whatsoever of the City or the State of
Florida, or any political subdivision thereof, shall ever be
pledged to the repayment of said multi -family housing bonds or
the interest thereon,
Section 7, This resolution shall take effect immediately
upon its adoption and shall be binding, subject only to the
W5W
84"a' 0 a
qualifications stated herein] upon the successor's and assigns of
the Developets,
PASSED AND ADOPTED this � _9th day of Febtuaty 1984:
_ _ ._.
ATTEST!
f
G.ONGIE
y Clerk
PREPARED AND APPROVED BY:
rr
G. MIRIAM MAER
Assistant City Attorney
_- _Mautice.. As.. _Ferre _ _ _
MAURICE A. FERRET Mayor
APPROVED AS TO FORM AND CORRECTNESS:
GARCIA—PEDROSA
/'SE
ty Attorney
GMM/wpc/pb/201
ZC
11
i
Citi' ok MIAMI. PL61415A
t6 Howard it+ Cary
City Manager
IWL1416PPI€E MFEM614ANCIUM
bAtt February 8, i§84 •PILU
tubjEGT Approval of Inducement
Resolution Affordable Rental
Housing Development prografn
raom Dena Spillman, Director AEFEAtNCES City Commission Agenda Item
Department of Community Development February 9, 1984
ENCLOSU4ES
It is recommended that the City
Commision approve the
attached Resolution inducing the
within named project sponsors to
incur certain costs in connection
with the development of certain
multifamily rental housing
development projects under the
City of Miami Affordable Rental
Housing Development program.
On October 7, 1981, through Resolution No. 81-848, the City
Commission approved Implementation Guidelines for the Affordable
Rental Housing Development Program. The program is expected to
generate approximately 1,000 new units of rental housing affordable
to low and moderate income families.
Under the program, the City plans to provide Project Sponsors with
below -market rate project financing through the issuance of tax
exempt mortgage revenue bonds. Development sites are being acquired
by the City and will be conveyed to the Project Sponsors. City
G.O. Housing Bond proceeds are being used to acquire the
development sites.
On December 15, 1983, through Resolution No. 83-1165, the City
Commission approved the following development groups as Project
Sponsors for the respective development sites:
Melrose Nursery
2741 N.W. 27 Ave.
Police Benevolent Assoc.
2300 N.W. 14 Street
Related Housing w/Consort,
Ltd., Thacker Construction and
Marbilt, Inc.
Related Housing w/Consort,
Ltd., Thacker Construction and
Marbilt, Inc.
84-205-4
0
s ,,
. . s
Highland Park
N.W. 8th St. Road
N.W. 10th Street
N.W. lith Street
7th Avenue
Civic Center
N,W, 18 Street
N,W, 14 Avenue
Circa, Ltd./The Barnes§
Organization
Related Housing w/Consort,
Ltd., Thacker Construction
and Marbilt, Inc.
The City
Commission
l
Resolution whichauthorizerequested
sxpendoapprove
o itursfor various hcomponentsed eof
the housing projects to be financed by tax exempt bonds. Moreover,
the attached Resolution allows the Project Sponsors to incur
certain costs with respect to the undertaking. The estimated
number of units and estimated reimbursable cost of construction
are as follows:
Number
Proiect Sbonsor Development Sites Units
Related Housing w/ Melrose Nursery 426
Consort, Ltd., Thacker
Construction and
Marbilt Inc.
Related Housing w/ Police Benevolent 430
Consort, Ltd., Thacker
Construction and
Marbilt Inc.
Related Housing w/ Civic Center 135
Consort, Ltd., Thacker
Construction and
Marbilt, Inc.
Circa Ltd./The Highland Park ill
Barness Organization
Total
Commission approval of this item is recommended.
/wh
Estimated
Reimbursable
Costs
$24,000,000
$24,000,000
$ 7,800,000
$ 9,2009000
$659000,000