The URL can be used to link to this page

Home My WebLink AboutR-80-0344<<SuPpor`-7�.!E s FOLLO,V' J�, RESOLUTION NO. 8 0- 3 4 4 A RESOLUTION AUTHORIZING THE SALE OF GENERAL OBLIGATION HOUSING BONDS IN THE AMOUNT OF $1,400,000 WITH THE PROCEEDS TO BE USED AS A CAPITAL CONTRIBUTION FOR 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 (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 DETEPMINATIONS WITH REGARD TO SAID HOUSING PROJECTS IN ACCORDANCE WITH SAID BASIC AGREEMENT. "DOCUMENT INDEX ITEM N0. 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 525,000,000 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 assistance, 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 CITY COMMISSION MEETING OF MAY 3 11980 FMA N 4 �N ...-...................so" WHEREAS, there exists a $1,400,000 shortfall between the total amount of available Dade County Special Revenue Bonds and the total development costs of the aforementioned projects. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City manager is hereby authorized to proceed with the issuance of $1,400,000 in Housing Bond Proceeds for a capital contri- bution 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 (Townpark). PASSED AND ADOPTED this 8 TH day of MAY 1980. MAURICE A. FERRE OR ATTEST: f' �.ow RAL G. ONGIE, CITY CLERK �.. PREPARED AND APPROVED BY: TTMICHAEL HAYGOOD ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: 80-344 /`4N A IO CITY JF W AS11. FLORIDA�- INTER-OFFICE 7AEMCRANDUM rc) Joseph R. Grassie City Manager FROM Dena Spillman, Director Department of Community Development May 2, 1980 Resolution for Sale of $1,400,000 in Housing Bond Funds for Capital Contribution Section 8 Housing Projects "'` City Commission Agenda May 8, 1980 IT IS RECOMMENDED THAT THE CITY COMMISSION APPROVE THATSALE "SUPPORTIVE SUPPORTIVE$1E400T000EIINRHODUSINGOBONDSHWITH ITHETHE PROCEEDSOTO 0 U i^>/I E1�1 S MENTBE SOFF SECTIONED P8THOUSOINGRPROJECCTSIBUTION FDADEH8-DEVELOP- " DADEC8-3, DADE 8-11, and DADE 8-12 LOCATED IN FOLLOW 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. The above mentioned projects (424 units) will be financed with Dade County Special Revenue Bonds, to be retired from revenue 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 pro- vided from City of Miami Housing Bond funds. Approximately $1,500,000 in bond proceeds have been pledged to secure Dade County Special Revenue Bonds. One of the Section 8 projects, a 100-unit housing development for the handicapped located in the Civic Center area is now under construction and will be ready for occupancy within the next twelve months. Construction will begin in June of this year on two of the six housing projects remaining to be developed, a 75-unit elderly project located adjacent to the Little Havana Community Center, and a 24-unit family project in Coconut Grove with comple- tion scheduled for June, 1981. However, escalating construction and interest costs have precluded the possibility of developing the remaining four Section 8 projects in accordance with the originally proposed financing plans. Listed below are the projects under consideration: 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. 80-344 Joseph R. Grassie Page two May 2, 1980 Dade 8-11 Seventy-five (75) units of housing for the elderly located at S.W. 17 Avenue and 4 Street. Dade 8-12 Forty-five (45) units of housing for families located at N.W. 19 Street and 5 Avenue, Viami, Florida Dade County HUD has proposed the use of approximately S1,400,000 in housing bond funds to cover the financing "short -fall" which exist between the total amount of Dade County Special Revenue Bond funds available to develop these projects and the esti- mated completion costs. Repayment of the proposed $1.4 million capital contribution plus interest for these projects, which have a combined value of $6,722,000, 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 capital contribution by the City of Miami appears to be the only and most expeditious way to develop the remaining four Section 8 projects. Commission approval of this item is recommended. /rjf LI L l V j1 { ( J � ` . �. ,.- 80-344 CITY or MIAMI. t-I_UR LIA � t�tNTER•OFFICE MEMURANDU':1 Joseph R. Grassie ��t. "LE City Manager . �. May 6, 1980 • J t 1, � • Use of Housing Bond Proceeds for "Gap" Financing of Section 8 Housing Projects in the City �Ho�� Dena Spillman, Director E °' j Legal Opinion of Bond Counsel Department of Community Development This transmits the opinion of the City's Bond Counsel, Joseph Guandolo, with respect to the utilization of City Housing Bond proceeds to finance, in part, the acquisition of four "turnkey" Section 8 housing projects proposed for development in the City by Metropolitan Dade County. Originally, these four projects, comprising 225 housing units, were to be financed through Dade County Special Revenue Bonds. However, due to the unexpectedly high interest rates Dade County is experiencing in the sale of its Special Revenue Housing Revenue Bonds, sufficient capital is unavail- able from the bond proceeds with which to acquire the projects. Therefore, the County has requested that the City utilize $1.4 million in Housing Bond proceeds to assist it in the acquisition of these projects. This capital contribution by the City would be retired upon amortization of the County's Special Revenue Bonds. This proposal was presented to the City Commission for its informal consider- ation at the Housing Workshop on April 25, 1980, and some questions were raised as to the validity of using Housing Bonds for this purpose. /rj f G 80-94:4 GUNDARS APERANS JOSCPN W ARMBRUST, JR OCORc[ B.BorLE C MICMAFL 89ADL[I W ILLIAM C CARTER WILL'AM A CARTCP P'C AnD CONWAT CASfr PMILIO W CT CIARA •EN4ETM 0" TMOMAS O CPEAN �O WARD G GOOWIN, JR JOSEPM GUANCOL:, RCGER J MA WAE J GOL...4t. IJE• C.ARL IS � �0%ON, JP RALPM L .ONE5 GEORGE R LASMNITS i LEE LIr BO LT..n JAMES • MAN 4ING JAMfS B NAT WAL-EP D MCNEILL •AD Y�T1(O IN fLOR•OA ONLY BROWN, WOOD, IVEY, MITCHELL & PETTY ONE LIBERTY PLAZA, NEW YORK, N.Y. 10006 212-349-7500 PETER J. MICMEL MENRr i MINNEROP ROB[RT L. MnCwELL ?[LEA 127724 JOMN M NEW -AN CABLE AOOPE55 BROACOOLAA PICM APO S PETTr PALL C PRINGLE TELECOPIEP 202-349.7516 JOM4 A OUISENBEPAT A iPANC IS NOBINSON,JR RICO ARD D RUDDER CHARLES J SAN:;ERS MOMEP D 5CMAAi NOPMAN O 5L_NA..ER TNGMAS P SM IT N, Jq EDWARD P T_LLE I,JR LAWPENCE C T04CEL r.ICMAE- JfI-CSTAO SEOGWIC- A WARD 11AREL *[STERLING NoAARD W WMITAKER, JR MENRT E NIL L'. AMS _q ' MICMAEL D WOLESON RECINED MAY 5 1980 COMMUNITY DEVELOPMENT Mr. Jerry Gereaux Assistant Director for Housing Department of Citizens Services 1145 N.W. llth street - Room 125 Miami, Florida 33136 Dear -Jerry: May 2, 1980 Re: Miami - Housing Bonds MAN FRANCISCO OFFICE ALCOA BUILDING ONE MARITIME PLAZA MAN r*ANCISCO,CALIF. 9A11, TELEPMONE.4I5-396.3909 TAMPA OifICE MAPNETT MAN■ MU ILOING 1000 ASMLEr DRIVE TAMPA, FLORIDA 33602 TELEPw ONE B13-223-960C TELECOPIER 813-22]-9652 In your telex -type letter of May 1, 1980 you have informed me that the City is considering the sale of approx- imately $1,400,000 in housing bonds "... for the provision of a capital con- tribution to I•letropolitan Dade County in financinE, the acquisition of four 'turnkey' Section 8 projects to be developed in the City of viiami . " You have rpc,ue2ted that I express my opinion regarding the authority of the City to use the proceeds of the City's housing Lonci; for such purpose. Under Ordinance 'Io. 8514, adopted February 4, 1976, it is provided, in Section 2), that for the purpose of pro- vidink; housin,; in the City for families and parsons, includ- in� the eld,_,v1; , of low or moderate income, by usin , hond proceed, to a:;s1. t Dade l.OuriLy in t'inanc inc", such h011sin". the :y25 million or hou:3in r bond:; 1,-iere authori :c:c: thereander. In :section 3 the term "families and persons, includintr the elderly, of low or moderate inco:ie" is ciefined Le ,:lean and include famil-ie:, or poi -son, whoi;e income is not sut'ficient to enable thi:m, without financial rassls*;ance, to live in 80-344 Wo -2- decent, safe and sanitary dwellings without overcrowding In the City. It is further provided that the term is intended to include only such families and persons whose annual income with any rent supplements, grants or other assistance provided by any Federal, state or private agencies shall be at least sufficient to enable them to pay the rent or other costs of such housing. There is expressly excluded from the purview of such term any families or persons whose annual income small be at so high a level that the City cannot under the law then in force assist the financing of housing available for occupancy by such families or persons. Ordinance No. 8515 provides for an election upon the proposition to issue the bonds " . for families and persons -of low or moderate income qualifying therefor under the then applicable law, by using the pro- ceeds of the bonds to assist Dade County in financing such housing in the City of Miami or to increase the security of any Dade County Obligations issued for such housing Suchrproposition was approved by the voters. In the judgment validating the bonds the Court determined that under the Constitution and laws of the State and the charter of the City, the City was fully authorized to issue the housing bonds for the purposes stated in said Ordinance No. 8514, the Basic Agreement between the City and Dade. County and Resolution No. 76-1104 adopted by the Commission on December 16, 1976. Said Resolution No. 76-1104 provides that such bonds are authorized to be issued for the purpose of providing housing in the City for families and persons, including the elderly, of low or moderate income, as such term is defined in Section 3 of said Ordinance No. 8514 above mentioned. It is further provided in such Resolution that such housing is to be provided by using proceeds of the City's housing Bonds "to assist Dade County in financing such housing in.the City, including increasing the security and marketability of County Obli- gations to be issued by Dade COUIlty to acquire,, construct and rehabilitate such housing; on a self-liquidating basis, as provided in said Ordinance." 11SUPP 0: -jV DQC Lf NTSE 80344 -3- It should be noted that under such basic documents per- taining to the authorization of the housing bonds the stated purpose for the issuance of the bonds is to provide housing in the City for families and persons, including the elderly, of low or moderate income, as such term has been defined as above -stated. Such housing is to be provided by assisting Dade County in financing the cost thereof. Two types of financial assistance to Dade County may be provided by the City. One type of assistance is to provide housing bond proceeds to the County for use by the County in financing the cost of such housing. The second type of assistance is the City's making available to the County housing bond proceeds to increase the security and marketability of any revenue bonds or other obligations that may be issued by the County to finance such housing; provided that the County shall determine and the City shall concur in such determination that such revenue bonds or other obligations of Dade County shall be self-liquidating. In my judgment, therefore, the use of the proceeds of