HomeMy WebLinkAboutR-81-0079RI71SOLUTION NO. 8 1 7 9 '
A RESOLUTION AUTHORIZING THE USE OF AN ADDITIONAL
$205,000 IN GENERAL OBLIGATION HOUSING BONDS TO
BE USED AS A CAPITAL CONTRIBUTION FOR THE DEVEL-
OPMENT OF FOUR SECTION 8 PROJECTS IN THE CITY OF
MIAMI, DESIGNATED DADE 8-1 (WYNWOOD), DADE 8-3
(COCONUT GROVE), DADE 8-11 (LITTLE HAVANA), AND
DADE 8-12 (TOWNPARK). SAID PROJECTS ARE PURSUANT
TO THE BASIC AGREEMENT FOR FINANCING HOUSING IN
THE CITY OF MIAMI, DATED JULY 19, 1976, AS AMENDED,
AND MAKING CERTAIN DETERMINATIONS WITH REGARD TO
SAID HOUSING PROJECTS IN ACCORDANCE WITH SAID BASIC
AGREEMENT.
WHEREAS, there exists a shortage of adequate housing in the City
of Miami for households of low and moderate income; and
WHEREAS, the City of Miami in 1976 passed a $25,000,000 General
Obligation Housing Bond Issue to provide funds in the development of
such housing to alleviate this crucial need; and
WHEREAS, the U.S. Department of Housing and Urban Development has
allocated subsidies for 424 Section 8 new construction dwelling units
for households of low and moderate income; and
WHEREAS, the City of Miami and Dade County, Florida on July 19,
1976, entered into an agreement for the financing of housing in the
City wherein the County agreed to finance housing projects through the
issuance of obligations of the County (Dade County Special Revenue Bonds),
secured in part by City assistEnce, including the proceeds of housing
bonds of the City to be issued for such purpose; such projects to be
self-liquidating in that the payment of the principal and the interest
on such obligation can be paid in full from rents, charges and fees
collected by the County therefore, together with such Federal, state
and private grants, contributions and other income and money which
may be made available therefore (exclusive of any proceeds of said
housing bonds of the City); and
1TEIM fV'u.
CITY COMMISSION
MEETING OF
FE;3I I 1981
RESOLUTION NO.,..,.,..........,...
REMAk► .............................
0
WHEREAS, on May 8, 1980, by Resolution No. 80-344, the City
Commission authorized the issuance of $1,400,000 in Housing Bond
Proceeds as a capital contribution to Dade County to address the
shortfall between the total amount of available Dade County Special
Revenue Bonds and the total development costs of the aforementioned
projects; and
WHEREAS, it is in the best interest of the City of Miami to move
forward with the development of these Section 8 projects prior to the
housing bond sale; and
WHEREAS, on July 24, 1980, by Ordinance No. 9141, the City
Commission authorized the transfer of funds in the amount of $1,400,000
from the Capital Improvement Funds, proceeds of the Interama Land Sale,
to the Housing General Obligation Bond Fund to provide funding for the
above -mentioned Section 8 projects; and
WHEREAS, there exists an additional $205,000 shortfall between the
total amount of available Dade County Special Revenue Bonds and the
total development costs of the above -mentioned projects.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to provide Dade
County an additional $205,000 in General Obligation Housing Bond proceeds
as a capital contribution to assist in the development of Four Section 8
projects in the City of Miami designated Dade 8-1 (Wynwood), Dade 8-3
(Coconut Grove), Dade 8-11 (Little Havana), and Dade 8-12 (Town Park).
Section 2. No additional city assistance will be provided to Dade
County as a capital contribution in order to develop the afore-mentiored
Section 8 projects.
81 - '7' g
PASSED AND ADOPTED this 11 day of
ATTEST:
Z—RALIPH G . 014GIE
CITY CLERK
PREPARED AND APPROVED BY:
(i l wW► lvrw
MAJK A. VALENTINE
AS ISTANT CITY ATTORNEY
FEBRUARY , 1981.
MAURICE A. FERRE
MAURICE A. FERRE, M A Y O R
APPROVED AS TO FORM AND CORRECTNESS:
ROBERT F. CLARK
ACTING CITY ATTORNEY
BUDGETARY REVIEW
BY:
MANOHAR SU '
ACTING DI TOR
"SUPn i`JE
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1
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In
'1 J:i11 23 N ' • c
Richard L. Fosmoen
City Manager
Dena Spillman, Director
Department of Community Development
January 27, 1981 " °ILF
Resolution authorizing the use
of $205,000 in Housing Bond Funds
for Capital Contribution
Section 8 Housing Projects
City Commission Agenda
February 11, 1981
It is recommended that the City Commission
approve the attached resolution authorizing
the use of $205,000 in Housing Bonds to be
used as a capital contribution for the
development of Section 8 Housing projects Dade
8-1, Dade 8-3, Dade 8-11, and Dade 8-12 located
in the City.
On July 19, 1976, by Resolution No. 76-612, the City of Miami Commission
authorized the execution of an agreement for financing housing in the City of
Miami by and between Dade County and the City of Miami, for the purpose of
developing Section 8 housing projects in the City.
In total, seven (7) Section 8 projects (424 units) will be financed with
Dade County Special Revenue Bonds, to be retired from revenues generated by
tenant rents and subsidy payments from the U.S. Department of Housing and Urban
Development. The County bonds are backed by two one-year debt service reserves,
one of which will be provided from City of Miami Housing Bond funds. Approximately
$1,500,000 in bond proceeds have been pledged to secure Dade County Special
Revenue Bonds.
Originally, all seven projects were to be financed through Dade County Special
Revenue Bonds. However, due to the high interest rates Dade County has experienced
in the sale of its Special Revenue Housing Bonds, sufficient capital is unavailable
from the bond proceeds with which to develop the remaining four Section 8 projects.
In order to develop these projects, on May 8, 1980 by Resolution No. 80-344, the
City Commission authorized the City Manager to proceed with the issuance of
$1,400,000 in housing bond proceeds as a capital contribution to assist in the
development of the four (4) Section 8 projects listed below:
Dade 8-1 Forty (40) units of housing for families to be located
on scattered sites in the Wynwood neighborhood.
Dade 8-3 Sixty-five (65) units of housing --for elderly located
at Douglas Road and Day Avenue, Miami, Florida.
Ur MIAMI, FLORIDA:
'1 t...+ N -!
�_ •`1;i lit
- 8, _7q
Richard L. Fosmoen
Page 2.
Dade 8-11
Dade 8-12
January 27, 1981
Seventy-five (75) units of housing for the elderly
located at S.W. 17 Avenue and 4 Street.
Forty-five (45) units of housing for families located
at N.W. 19 Street and 5 Avenue, Miami, Florida.
Again escalating construction and interest costs have precluded the possibility
of developing the above -mentioned Section 8 projects in accordance with the
revised financing plans.
Dade County HUD has proposed the use of an additional S205,000 in housing bond
funds to cover the financing "short -fall" which currently exists.
The additional $205,000 capital contribution to assist in the development of
these Section 8 projects again will come from the Housing General Obligation Bond
fund which was established on July 24, 1980 by Ordinance No. 9141. Repayment of
the proposed $205,000 capital contribution plus interest for these projects would
occur over a long term period from operating revenues when the Dade County Special
Revenue Bonds have been retired.
Given the current market conditions, the additional $205,000 in the capital
contribution by the City of Miami appears to be the only and most expeditious way
to develop the remaining four Section 8 projects. Dade County is aware that no
additional assistance will be provided by the City of Miami in order to develop
these Section 8 projects.
Coinmissiun approval of this item is recommended.
/so
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