Loading...
HomeMy WebLinkAboutexhibit-plan 3without children and without disabilities make up 17 percent of public housing residents. Elderly households with a disability but without children make up 12 percent of public housing residents and nine percent of voucher -holding households. Households that include a person with a disability who is not elderly make up 20 percent of public housing residents and 19 percent of voucher holders. "OtitAki4tiverit•iitiNs All of the public housing units within the City of Miami are managed and operated by MDHA. MDHA provides federal -subsidies for 10,500 units of public housing, which it manages and maintains, and for 17,700 units of private housing, which it inspects annually. It also provides limited supportive services and programs to improve the quality of life and general environment of public housing residents, and coordinates most of the County's affordable housing programs, including the in-flI housing initiative. Of the total number of public housing units, only 77 percent are occupied. Due to the amount MDHA properties that are in disposition status, only 77 percent of public housing units are occupied. The following tables show the existing inventory of public housing and Section 8 units: Table 42: Public Housing/Section 8 Inventory, 2004 I uraliun MDHA-County MDHA-Miami MDHA-Section 8 Vouchers MDHA-Section 8 Mod Rehab MDHA-Section 8 Sub Rehab/New Construction MDHA-Section 8 Preservation Vouchers Section 8-City City of Miami Total hits 3,038 2,579 11,189 3,700 1,295 500 209 1,048: 3,662 215 22,510 4,925 1 !of+ 2Z�1•.5::: Source: Miami Dade Housing Agency & City of Miami Department of Community Development Public Housing and Section 8 Tenant -Based Waiting List According to the Public Housing Authority Plan, Miami -Dade County has 44,091 families on the public housing waiting list. It is clear from the Public Housing/Section 8 Waiting List Table below that the greatest rental needed is for the extremely low income (<=30 percent AMI). It is also evident that families with children comprise the largest percentage (48 percent) of households in need and that most households, including elderly and families are Hispanic (52 percent) or Black (41 percent). The following tables show the current waiting list information detailing household profiles. City of Miami Consolidated Plan DRAFT 91 Table 43: Public Housing/Section 8 Wailing Lists, Miami -Dade County: •1004~ I'ubli, Housing Waiting List. Total Characteristics by Income .Extremely tow income <- 30%•AM1 41,564 94% 49,564 96% 32A34' s : Very low-income >30% but <50°1° 1,969 4% 1,803 Low income >50%.but'' • 510 ..- 1414 ; _341 • Moderate. income 0vor80%.AMI; 48 0.1% 39 Characteristics by Family Type Families with children . ` • 21,439 •48% 36,626 71°/v Elderly families 11,199 • 25% 15,116 '•29%-' it-:',4:1410413 • Families with disabilities 4,150 • ... 9% • 6,108 • 12%` Characteristics by Race/Ethnicity White/Non-Hispanic Black/Non-Hispanic White/Hispanic Black/Hispanic• • Native American Asian Characteristics by Bedroom sire ti r,'Iiuu H I ruaut • li;nc,i ties 14:nr,1 OBR 1BR• 2BR 3BR 4BR 5BR 5+BR 44,091 : .100% • 51,752 -100% " '? 55►877._ , ,.. , 1,048 2% 1,230 2% • •'=919 18,082 :41% . 20,701 • - .40% 23,094 52% • • 27,545 • 1,136 • :2% .1,470 356"`Wigan 34 .08% 40 0.08% 45 ,1%. 58 0.11% Q1Q!!%4 14,477 32% 2,438 5% A9a' 15,266 34% 31%r 9,990 22% 24%; 1,265 2% uSi 66 0.15% ► lti 52 0.12% .'!.'14,34014 Source: PHA Plan/Miami Dade Housing Agency, 2003 Income and Family Type The majority of families (over 90 percent) on the Miami -Dade County waiting Iist are extremely low-income and over half of these families have children. Elderly families are the second largest group on the•waiting Iist after families with children. Elderly families represent 30 percent of public housing, 26 percent of Section 8 tenant -based assistance, and 31 percent of Section 8 project -based assistance. Families with disabilities only represent 11 or 12 percent of the waiting list. • City of Miami Consolidated Plan DRAFT 92 Figure 7: Number of Families on Public Housing Wailing Lisl by Income Level, Miami -Dade County, Low Income 510 Very low - Income 1,989 Moderate Income 48 Extremely low- income 41,584 Figure 8: Public Housing Wailing list by Family Type, Miami -Dade County Families with disabilities 11% Elderly families 30% Families with children 59% Race & Ethnicity The majority of individuals on the waiting list are White/Hispanics, representing 53 percent of public housing, 54 percent of Section 8 tenant -based assistance, and 56 percent of Section 8 project -based assistance. Blacks/non-Hispanic make up the second largest group, representing, 42 percent of public housing, 41 percent Section 8 tenant -based assistance, and 39 percent Section 8 project -based assistance . White / non -Hispanic, black / Hispanic, Native American and Asian only represent a small portion of the waiting list. City of Miami Consolidated Plan DRAFT 93 Figure 9; Public Housing Wailing List by Ethnicity in Miami -Dade County 35,000 - 30,000 - 25,000 - 20,000 - 15,000 - 10,000 - 5,000 - 0 • Public Housing o Section 8 tenant -based assistance ■ Section 8 project -based assistance 21,554 20,701 18,092 1.048 1,2301,407 30,758 27,545 23,094 1,470 1,136 1,319 white / non- black 1 non- white / hispanic black / hispanic hispanic hispanic Geographic Distribution An analysis of the MDHA Public Housing Waiting List by U.S. Zip Code indicates that the largest percentage of households, and particularly Waiting List "family households", are from neighborhoods within the City of Miami that have been designated as Neighborhood Development Zones (NDZs). The largest percentages are found in the Allapattah (16 percent) and Little Haiti/Model City (10 percent) Zip Codes. City of Miami Consolidated Plan DRAFT 94 : Kh01 ryp49110td a ra5` l; ear, The public housing goals detailed in this section is a summary of the goals and objectives of the City's five-year plan for housing choice vouchers. Though is City of Miami does not operate any public housing, it is responsible for a limited number of section 8 Tenant Based Assistance —a housing choice voucher program developed to assist eligible low-income families to receive housing assistance through a rental subsidy that enables tenants to afford standard units. The Department of Community Development is the City's designated Housing Agency (HA); as such, the Department submitted to HUD the Streamlined Five -Year PHA Plan for Fiscal Years 2005-2009. Below are outlined the key goals and objectives identified in the plan: Strategic Goal: 1 Increase the Availability of Decent, Safe, and Affordable Housing OBJECTIVE 1: Expand the supply of assisted housing units: ■ Apply for additional housing vouchers. In particular, apply for HUD NOFAS as vouchers become available. ■ Leverage private or other public funds to create additional hosing opportunities. The City of Miami will make available $1,000,000 in Miami -Dade Surtax award to the City (contract pending) for rehabilitation of Section 8 multi -family rental projects with predominantly elderly tenants that have met their affordability term requirements. OBJECTIVE 2: Improve the quality of assisted housing: • Improve voucher management (SEMP score). Due to recent conversion of Section 8 moderate rehabilitation subsidy contract to Housing Choice Vouchers, the HA has not yet been subject to SEMP review. The HA's goal is obtain a high SEMP score. • Increase customer satisfaction and commence regular customer satisfaction surveys. • Provide replacement vouchers y applying for replacement vouchers in the event that expiring Section 8 Moderate rehabilitation contracts are not renewed. OBJECTIVE 3: Increase assisted housing choices: • Conduct outreach efforts to potential voucher landlords. The City will offer regular outreach through the distribution of program marketing materials targeting multi -family housing landlords. Also, the City will conduct prospective landlord workshops to explain program rules and administration. • Implement voucher homeownership program. Planning for the voucher homeownership program will begin in FY 2005 and the full program implemented in FY 2007. Strategic Goal: 2 Improve Community Quality of Life and Economic Vitality OBJECTIVE 1: Provide an improved living environment. • Designate developments or buildings for particular resident groups (elderly, person with disabilities). City of Miami Consolidated Plan DRAFT 95 As mentioned above -hi -Strategic Goal 1, Objective 1, The City of Miami will make available $1,000,000 in Miami -Dade County Surtax award for the rehabilitation of Section 8 multi -family rental projects with eligible predominantly elderly tenants. ■ Create Neighborhood Development Zones/Model Blocks that target homeownership. Also, target vacant residential parcels through the City of Miami for extensive development and community revitalization efforts. Strategic Goal: 3 Promote Self-sufficiency and Asset Development of Families and Individuals OBJECTIVE 1: Increase independency of families receiving housing assistance. ■ Provide or attract supportive services to increase the independency for elderly or families with disabilities. Strategic Goal: 4 Ensure Equal Opportunity in Housing OBJECTIVE 1: Affirmatively further fair housing. • Undertake affirmative measures to provide a suitable living environment for families living in assisted housing, regardless of race, color, religion, national origin, sex, familial status, and disability. City of Miami Consolidated Plan DRAFT 96 XI. Lead -Paint Hazards Protecting Children and Families According to several recent studies, the City of Miami is one of the highest risk areas for lead poisoning in the nation, with the City's poorest neighborhoods demonstrating the highest risks. t Because lead poisoning is a serious yet preventable health problem that can cause long- term neurological damage among young children, the City of Miami is committed to addressing this health hazard. The leading cause of lead -based poisoning is exposure to dust from deteriorating paint in homes constructed before 1978. This is due to the high lead content used in paint during that period, particularly in homes built before 1950. Pre-1978 housing occupied by lower income households with children offer particularly high risks of lead exposure due to the lower levels of maintenance among lower -income households. This is an important factor since it is not the lead paint itself that causes the hazards, but rather the deterioration of the paint that releases lead -contaminated dust and allows children to peel and eat lead -contaminated flakes. Risk Factors of Lead Poisoning • Living in a home built before 1950 ■ Living in a recently remodeled home built before 1978 Lead Poisoning Definition: Blood lead level greater than or equal to 10 ug/dL of whole blood. Such levels can adversely affect intelligence, learning, behavior, and development. Extremely high levels (45 J4g/dL or higher) can cause seizures, coma, and even death in children. Lead Hazards in the City of Miami Lead Poisoning Cases in the City of Miami The City of Miami has some of the highest concentrations of cases related to lead poisoning within Miami -Dade County. From 1999 to 2002, the City of Miami accounted for 34 percent of all the cases reported in the county. In some years, the cases were as high as 40 percent. The greatest concentration of lead poisoning cases within Miami -Dade County and City of Miami occurred in minority and low-income neighborhoods. According to reports from the Miami -Dade County Department of Health, Blacks accounted for 48 percent of the lead poisoning cases within Miami -Dade County, with Non -Hispanic Blacks making up 13 percent of the cases and Haitians 35 percent. Hispanics represented 36 percent of the lead poisonings. It is estimated that 66 percent of lead poisoning cases in the City of Miami reported from 1999 to 2003 occurred in 9 zip codes. These zip codes contain some of the city's most Gasana J, Chamorro A. Environmental Lead Contamination in Miami Inner-city Area. http:i/www.ncbi.nlm.nih.gov/enirez/query.fcgi?cmd=Retrieve&db=pubmed&dopt=Abstract&list uids City of Miami Consolidated Plan DRAFT 97 distressed areas, including all of the Neighborhood Development Zones.2 Inspections of homes with children found to have elevated levels of lead in the blood conducted from 1999 to 2003 revealed the following: 65 percent of the housing units found to have actual lead hazards were concentrated in seven zip codes clustered around the Neighborhood Development Zones.3 ■ The zip codes representing Allapattah, East Little Havana, Little Haiti, Model City, and Overtown reported the highest number of units with lead hazards. Table 44: Lead poisoning cases reported: January 1999-December 2002, City of Miami • 1999 2000 2001 2002 Total Average tad I•i oiii 1 ayrti �li,,r,ii I).ulr 560 553 472 371 1956 489 134 223 135 168 660 165 ccnl ul 1 :Itin iii Ilic 1 It\ ul \lidnii ilhili \li:uui Dad, 24 % 40 % 29 % 45% 34 % 33 % Source: Miami -Dade County Health Department, Childhood Lead Poisoning Prevention Program, 2003 ° Lead poisoning is defined as a blood lead level >= 10 mg/dL Housing Units Built Prior to 1949 and 1979 Although there are various factors that can be attributed to the high number of lead cases in the City of Miami, the leading factor is exposure to lead -based paint found in homes constructed before 1979. As can be seen on Table 45, 81 percent of the housing units in the City of Miami were constructed before 1979, compared to 67 percent in Miami -Dade County.4 This indicates that 81 percent of the housing units in the City of Miami are a potential lead -paint hazard. In the Neighborhood Development Zones, the number of homes built before 1979 increases to 84 percent, with Coconut Grove, Edison Little River, and Wynwood showing the greatest risk. Because of the high number of homes built before 1979 in the City of Miami„lead paint hazards pose a potential health risk to many households living in the city. 2 66 percent of the lead poisoning cases in the City of Miami reported from 1999 to 2003 were located in the following zip codes: 33125, 33127, 33128, 33133, 33135, 33136, 33142, 33147, and 33I50. ' According to the Childhood Lead Poisoning Prevention Program of the Miami -Dade County Health Department, 65 percent of the housing units in the City of Miami found to have lead paint hazards after inspection were located in the following zip codes: 33125, 33127, 33128, 33135, 33142, 33147, and 33150. 4 US Census data was used to determine the number of housing units that were constructed before 1978 in the City of Miami. It should be noted that the year 1979 was used in the analysis instead of 1978 due to the manner in which the Census reports this type of data. Data is reported in ten year intervals. City of Miami Consolidated Plan DRAFT 98 Table 45: Housing Units Built Before 1979 and 1949 in iheCity of Miami \riq,hlwt hu1111 IIr1 rlupnu nl /nurti Allapattah Coconut grove Edison Little River Uttle Havana Model City.;; Overtown Wynwood Total In NDZi City of Mlaml Miami -Dade Iuln1 Ilnu,1Hr, I Wily US Census: 2000 Census 6:489' 1,094 11,617 18,572 5,288 '4,841 1,504 49,405 148,554 852,278 1 nil1 Iiuill MI ur Ilrlury 11) 1') 1 IIIl1 llll ill 111101 Eirh,l r 1,050. , 386 3,643. 5,264 1,246' .014 '. 972; 10,462 15,343 83 g 4030 43,967 1,315 87.%'. 41,503 841 120,276 81 567,582 671 1'rrllnt n11 Illl\ Iiuill ill] u1 IiJnrr I'1''1 Low Income Households in Units with Lead -Paint Hazards Estimates show that extremely low income, low-income and moderate income households occupy 73,406 of the housing units that have a potential for lead hazards. As Table 46 demonstrates, approximately 77 percent of these units are located within the Neighborhood Development Zones, with Little Havana, Overtown and Wynwood showing the greatest number of units. Households with very low income ($12,100 or less) occupy the largest number of units with lead -paint hazards. In some Neighborhood Development Zones, these households are estimated to occupy over 40 percent of the units built before 1979. \rlr.1111ul hued I).11lupuu'u! /uur, Allapattah Coconut Grove. Edison/Little River. Little Havana Model City Overtown Wynwood Total In NDZa City of Miami Table 46: Low to Moderate income Households Living in Units with Potential Lead Hazards 5,014. 972 10,462 15,343 4,430 3,967 1,315 41,503 120,276 I'rlrrul uI I 11111 Iiuill WI III lit 1111 r I'I' Ilcritltictl1,1 11111111 \Intl Inrnllir III1IJ t1 1111� 3,801 76 % 37% 554 57% 25% 7,484 72 % 35 % 12,217 80% 40% 3,502 79 % 43 % 3,245 82 % 46 % 1,094 83 % 44 % 31,972 77 % 39 73,406 61 % 27 % 1 1.1, Iurwily 191 1496 i87 18% 18% 21 % 19 % 181 1.8 % 19% 17.1 17% 22% 19'/e 19 %. 16% 18%:: Source: US HUD Special Tables Note: Estimates of low to moderate income households living in units built prior to 1978 were determined by using the percentage of households under each income category as a proxy for units occupied. The following calculation was used: ((Low to Mod Income Households/Total City of Miami Consolidated Plan DRAFT 99 Householl3s)}100= percent low to mod income Households)*Units Built on or before 1979=Estimated number of units built on or before 1979 occupied by low to moderate income households.)) Number of Children at Risk Because 81 percent of the housing structures in the City of Miami were constructed prior to 1979, it is estimated that most of the children in the City are at risk of being exposed to lead - paint hazards at some point in their Iives. Those that are most vulnerable to lead exposure are children under the age of six, due to the harmful effects that lead can have on the development of the brain. According to the 2000 Census, there are a total of 27, 358 children in the City of Miami that are five years of age or younger. It is estimated that 43 percent of all the children in this age group reside within the Neighborhood Development Zones, with the highest number of children found in Edison Little River/Little Haiti and in Little Havana. These are also some of the areas reported as having the highest potential for lead -paint hazards. In an effort to reduce lead -paint poisonings among children in the City of Miami, the Miami - Dade County Health Department has targeted all children under six years of ages who live in the City's zip codes to be tested for childhood lead poisoning. The Department offers free screenings for families that do not have health insurance and that are not covered by Medicaid. But more needs to be done to prevent the exposure. Table 47: Children in Neighborhood Development Zones N rl{thhoi hum! 11rl a•Inl,nunf /one Allapattah Coconut Grove Edison -Little Haiti Little Havana Model City Overtown Wynwood Total in NDZi City of Miami Source: US HUD Special Tables 1 Il llll rCEI 5 cnnl l udrr 1,561 171 3,009 3,768 1,687 1,061 438 11,695 27,358 I'rrcrul of Iulal Nulullat+ou lilal i,5...nl I ull)) luIhr 1 itt lit NIlamt 6%. 1% 11 % 14 % 6% 4% 214 43 % 100% Strategies to Reduce Lead -Paint Hazards As the findings in the lead analysis indicate, lead -paint exposure poses a serious health hazard to the children of the City of Miami, particularly those residing in the Neighborhood Development Zones. To address this health issue, the City of Miami has committed to take active steps within the next five years to reduce the incidents of lead poisonings among children ages six and under caused by lead -paint exposure. The following describes the strategies that the city will undertake to address this serious health problem. Strategy 1: Develop a comprehensive lead -paint hazard reduction program for identifying and abating lead -paint hazards in the Neighborhood Development Zones and the Model Block areas. To accomplish this, the Community City of Miami Consolidated Plan DRAFT 100 Development Department will hire a consultant to conduct a lead -paint hazard analysis and develop a lead -paint hazard program. Strategy 2: Apply for additional funding to HUD and other grant programs to address the lead -paint hazards. The funding will be used for lead testing, education, hazard control and abatement, and temporary relocation of families during lead -hazard control activities. Strategy 3: Establish coordination between public and private organizations in reducing lead -based hazards and the incidence of lead -based cases in the Neighborhood Development Zones. • Work with the Miami -Dade County Health Department to assure that all families with children under six years of age that receive housing assistance participate in the free Lead Poisoning screening program. • Cooperate with Schools, Day Care Facilities, Youth Programs, and Health Clinics in the Neighborhood Development Zones to encourage parents to screen their children for lead poisoning and to educate them regarding hazards and programs to abate the problem. Integration of Policies Into Housing Policiesend Prog In the next five years, the City of Miami will undertake several activities to integrate lead hazard evaluation and reduction activities into its existing housing programs. The primary focus will be on units built prior to 1978. These activities include education, inspections, and abatement of lead -paint hazards. • Prior to issuing any type of housing assistance for properties constructed on or before 1978, the City of Miami will inspect the units for lead -paint hazards. Special attention will be given to units that will house children less than six years of age. • The City will provide housing monies to abate lead paint hazards in properties that have been reported to have a lead problem. Priority will be given to families with children under six years of age. • A notice will be given to each family or applicant with a child six years or younger, who is receiving housing assistance for units built before 1978. Families will be required to sign the notice to ensure awareness of any potential problems. Families are to report paint and dust hazards (i.e. the chipping, peeling and scaling of paint). City of Miami Consolidated Plan DRAFT 101 XI. Housing Strategy Priorities and Outcomes for Housing Programs The Housing Strategic Plan identifies the goals and objectives that the City of Miami will undertake in the next five years to address the housing needs of extremely low income, low income and moderate income households within the city. The priority needs, goals and objectives described in the Strategic Plan are based on the findings of the Housing Needs Assessment and the Housing Market Analysis; as well as input received by residents and stakeholders through the Citizen Participation process; and the Agency Coordination and Consultation efforts. The goals described in this section are designed to meet the intent of the National Affordable Housing Act of 1990: • Provide decent affordable housing to lower -income households • Expand the capacity of non-profit housing providers • Strengthen the ability of state and local governments to provide housing • Leverage private -sector participation City Mlmmt:Housing and commerclallown,Committee. It is important to acknowledge that all funding recommendations pertinent to housing development activities are administered and approved by the city of Miami Housing and Commercial Loan Committee. The city of Miami Housing and Commercial Loan Committee is an eleven person board authorized by the City Manager to approve certain housing and commercial loans and grants provided by the city of Miami Department of Community Development through the Housing CDBG, HOME, State Housing Initiatives Partnership (SHIP) and Housing Opportunities for Persons With AIDS (HOPWA) programs. City-wide Challenges and Needs In the last five years, the City of Miami's urban core has undergone a dramatic transformation that has had a profound impact on the housing market. Once regarded as blighted high crime areas, many of the distressed urban core neighborhoods that were targeted during the last Consolidated Plan are now considered among the Nation's most sought-after real estate markets. Although this renewed interest in the urban core has led to a surge of new construction and a dramatic increase in property values, the lives of the low to moderate income residents living in or near these neighborhoods have not improved. In many ways, their living conditions have become more difficult. Indeed, all of the distressed neighborhoods in the City of Miami experienced the following in various degrees: • Loss of businesses City of Miami Consolidated Plan DRAFT 102 ■ Loss of.resic "ents ■ Loss of affordable housing All of these factors indicate that the City of Miami is experiencing signs of gentrification. This is evident by the dramatic increase in real estate values, the shortage of affordable housing, and the growing interest of investors in urban core communities, where many of the City's low income families reside. Clearly, the effects of gentrification have had a positive impact on some communities by helping to improve the housing stock, attracting new businesses and increasing the tax base; however, it has also lead to the displacement of low income residents, conflict among old and new residents and the disruption of the social fabric of existing neighborhoods in some communities. To reduce poverty and revitalize these distressed communities, the City of Miami must balance the need to preserve affordable housing opportunities with the need to attract investors and residents that will help to create economic growth. The Consolidated Plan seeks to address these issues through a holistic neighborhood approach that focuses on reducing poverty and potential displacement. PdMiti910,for Investment The intent of the Consolidated Plan is to put in place policies that will help to preserve affordable housing opportunities for low and moderate income residents in a chain reaction that will help preserve the social and historic character of low income neighborhoods threatened by gentrification. Specifically, the Consolidated Plan seeks to focus on the following priority needs: ■ Affordable housing preservation and new construction • Neighborhood revitalization through the creation of the Model Block concept. ■ Mixed use/income redevelopment. Housing Preservation The top priority for the City of Miami within the next five years will be to preserve affordable housing. Based on the findings of the Housing Needs Assessment and the Housing Market Analysis, the City will adopt a four -tiered investment strategy that will focus on: ■ Preserving affordable rental housing for those mgst in need of housing assistance Priority will be given to the rehabilitation and new construction of affordable rental housing for small families, single person households, and special needs populations who are below 80 percent of the median income. These household types were found to be in most need of housing assistance, particularly the elderly at 30 percent below the median income. ■ Assisting existing homeowners to retain and maintain their homes through rehab assistance. Priority will be given to elderly households and households that are between 5 l to 80 percent of the MFI. These households appear to be experiencing the greatest cost burden among homeowners. • Preserving affordable homeownership opportunities for working families who may be eligible for homeownership but may be priced out of the market due to the escalating cost of real estate. The priority will be families that are between 5 l to 80 Percent of the MFI. City of Miami Consolidated Plan DRAFT 103 • Stimulating affordable housing development through the creation of a land acquisition program and other incentives. Priorities for investment are based on the HUD Housing Needs Table 2A. Neighborhood Revitalization through Model Blocks In addition to housing preservation, the Strategic Plan calls for the City of Miami to focus on neighborhood revitalization through the implementation of the Model Block Concept. The model block program calls for the City to target public infrastructure, housing and community development resources to a specific neighborhood location. By applying a variety of funding mechanisms, such as rehabilitation grants, public infrastructure improvements and slum and blight removal, the aim of the model block concept is to provide a visible and concentrated neighborhood revitalization initiative that can serve as a catalyst for further private investment and change in surrounding blocks. The model block program also provides the opportunity to integrate neighborhood conservation, historic preservation and cultural initiatives. In addition to physical improvements, area residents are targeted to receive job training, job placement, homeownership counseling, and other special services. The program also calls for police, code compliance, solid waste and other public services to work with residents to address specific community problems. GeographlC Flrioi itles for Investment As described earlier, the geographic distribution of housing resources should be prioritized as follows: • Model Blocks: The first priority for investment will be given to the Model Blocks. The goal will be to concentrate housing resources in these small geographic areas in order to assure that there is a visible and measurable impact in the housing conditions of the community. The focus will be to: ► Provide streetscape and infrastructure improvements ► Improve the existing housing stock in the Model Blocks through rehabilitation of single family and multi -family structures. ► Encourage new construction of affordable housing units on available properties. ► Target homeownership counseling and housing finance assistance within the Model Blocks. ► Aggressively acquire land/properties within the Model Blocks for affordable housing. • Neighborhood Development Zones (NDZs): The second priority for investment will be the NDZs. Possible investments include land acquisition and large scale construction projects. Such projects should be approved only after the projects in the Model Blocks have been funded. Obstacles to Meetlng Underserved Needs The following is a description of obstacles that the City of Miami faces in trying to meet the underserved needs in the jurisdiction. The national rankings discussed below reflect a City of Miami Consolidated Plan DRAFT 104 comparison among the 100 largest cities in the U.S. These figures are provided by the Brookings Institute.' The other figures are derived from the needs analysis discussed in previous chapters. The issues listed below are both an expression of need and of the potential barriers that may affect the City's ability to carry out the strategic plan: Housing ■ Growing shortage of affordable housing for very low income families (particularly rental). ■ Deteriorating housing stock (over 80 Percent of homes in the City of Miami and the NDZ were constructed before 1979). • Low production of affordable housing compared to need. • Scarcity of affordable sites due to escalating costs of real estate. High cost of land and construction and low profit margin to developers. • Lack of capacity among non-profit developers to meet need. • Reduction in government funding for affordable housing. • Shortage of qualified buyers who can meet FNMA or FHMC standards. • High cost of housing (homeownership and rental) compared to salaries. • Lack of protection for tenants facing displacement. • High number of housing units built before 1978 that are be potential lead hazards. Non -Housing ■ High poverty rate (I" in the nation). • Low median household income (1" in the nation; almost half of national median). • Low percent of labor force participation (1`` in the nation). Poor credit, low wage incomes and high job turn -over among low to moderate income families. • Language barrier in providing services to non-English speaking residents. Miami has a high share of foreign born residents (2" In the nation). • Third lowest share of population with a high school degree in the country. Brookings Institute. Growing the Middle Class: Connecting All Miami Residents to Economic Opportunity. Oct. 86, 2003 (Slide show presentation). City of Miami Consolidated Plan DRAFT 105 • High concentration of public schools with a grade of "D" in Miami -Dade County. The majority are located in the Neighborhood Development Zones. • Highest concentration of lead -based poisonings in Miami -Dade County is found within the Neighborhood Development Zones. ■ Highest concentration of non -elderly uninsured persons in Miami -Dade County, mainly in the Allapattah and Little Havana area. Special Needs Populations • High concentration of homeless in the City of Miami (42 percent of the County total). • Large elderly population (3r4 in the nation). ■ Large numbers of persons with disabilities (26 percent). • High number of persons living with HIV/AIDS (41h the nation). Government Coordination • Lack of a strong coordinated lobbying effort at the State and National level to represent local interests. • Length of time it will take to develop a coordinated policy among local government and community groups • Limited number of foundations and philanthropic organizations in Miami • Need for political support and advocacy ROM Conditions in the NDZs and Model Block$ In addition to the obstacles listed above, the following is a description of the key issues and opportunities that can affect housing in the Neighborhood Development Zones and the Model Block areas. These issues should serve as a guide in determining the five -year housing strategies for the Consolidated Plan. Rental Assistance The Housing Market Analysis determined that existing contracts rents in all of the City's Model Blocks and Neighborhood Development Zones (NDZs), with the exception of Coconut Grove, exceed 30 percent of household income. The highest percentages are found in Overtown (38.8 percent), Wynwood (36 percent), Little Havana (35 percent) and Edison/Little River (33.7 percent). As such, rental assistance strategies should target these NDZs and other neighborhoods that are experiencing escalating rents coupled with low rental vacancy rates. 2 Alliance for Human Services. Comprehensive Health and Social Services Master Plan: 2001-2004, Volume 2.2001. City of Miami Consolidated Plan DRAFT 106 Production of Units There is a significant level of multi -family rental housing construction occurring within both the City of Miami and Miami -Dade County. However, the vast majority of both new and planned multi -family housing starts are for upscale or luxury apartments. Given the need for affordable rental housing in the City, and particularly in low-income neighborhoods, the City should guide new rental housing production to the Model Blocks and the NDZs areas and assist private and non-profit housing developers in securing public and private financing for such projects. There are opportunities for new construction in Overtown, Model City and some areas of Little Haiti and Little Havana, particularly if unsafe structures are demolished and made available for affordable housing development. Rehabilitation of Old Units The City of Miami has lost many of its traditional multi -family housing structures, and specifically, 5-9 and 11-20 unit structures. The City should consider housing rehabilitation programs that target smaller multi -family rental structures that are vulnerable to deterioration. The Housing Market Analysis also determined that the City's older single-family housing stock is concentrated in the NDZs and the Model Blocks. Much of this housing stock requires either code improvements or deferred maintenance. As a result, homeownership programs should include appropriately designed purchase/rehab that considers the costs for preserving this older single-family housing supply. Acquisition of Existing Units The Housing Market Analysis identified a growing market for condo conversions in certain neighborhoods, most notably Little Havana. This trend should increase in several of the NDZs and Model Blocks given the escalating housing market that is occurring. Multi -family housing structures, especially older ones, will also be targeted by private developers for rehabilitation, acquisition and conversion and/or demolition for more upscale apartments or condominiums. As such, multi -family structures in these escalating neighborhood markets should be considered for acquisition to preserve their affordability. Genemt:Housing Policy Recommendations and,Strateglect During the next five years, the City of Miami will focus on implementing policies that advance housing preservation and neighborhood revitalization, with the overall goal of improving the quality of life of the residents in the target communities. The Housing Preservation component of the Strategic Plan calls for the City to adopt four broad policies. Below is a detailed description of the policies and the activities associated in the implementation of those policies. Policy 1: Preserve Affordable Rental Housing In order to preserve affordable rental housing opportunities within the City of Miami, and more specifically, within the Model Blocks and NDZs, the City of Miami will seek to rehabilitate the existing affordable rental housing stock that is vulnerable to deterioration. Furthermore, the City will encourage the construction of new rental units. Through these two initiatives, the City will increase the inventory of affordable rental housing available to low and moderate income households. As recommended in the Housing Needs Assessment, the focus should be on serving those that are most in need of rental assistance, namely small families and single person households, such as the elderly and persons with HIV/AIDS. The scale of the projects should be relative to the neighborhoods. Below is a description of the proposed program strategies. City of Miami Consolidated Plan DRAFT 107 Provide Multi -family Rental Rehabilitation Ais3s'ance-(Ntw Program): To prevent the affordable rental housing inventory from continuing to decline and to improve the quality of the rental stock available to low and moderate income families in the NDZs and the Model Blocks, the City will develop a new program for Multi -family Rental Rehab. Under this new program, owners of multi -family rental units will receive assistance for rehabilitation in the form of a loan. In return, the owner will guarantee that a certain number of housing units remain affordable for a specified period of time. The remaining units can be offered at market rates. As the Market Analysis indicated, such a program will not only help to improve the condition of the housing stock, it will also assure that rental units remain affordable. Furthermore, it will encourage mixed -income development and the spatial deconcentration of affordable housing. There are a significant number of small -scaled (under 50 units) multi -family properties in the NDZs and the Model Blocks that can provide basic and affordable housing for low income households. While many of these properties have become obsolete and will ultimately be razed, there are many that could be rehabilitated to provide both quality of life and affordable rental housing for local residents. Finance Construction of New Rental Units: To increase the inventory of affordable rental housing in the Model Blocks and the NDZs, the City of Miami will continue to encourage the construction of new rental units. The City will finance project costs for site development and will offer hard and soft construction financing and permanent financing associated with the development of affordable housing units. Continue to Provide Section 8 Rental Housing Assistance: The City of Miami will continue to provide rental housing assistance to very low income households through the Section 8 Program. This assistance consists of Project Based and Tenant Based vouchers. The Project Based units are privately owned buildings. The owners of these rental structures were given moneys to rehabilitate the buildings in return for securing all the units for very low income residents. Through this program, very low income residents are able to live in safe, decent, and affordable privately -owned rental housing. Policy 1 Strategies PRIORITY_] _GM Preserve Affordable Rental Housing Strategy 1 GH (a): Create a Rental Rehabilitation Program to help preserve affordable rental housing (New Program) Activity 1 GH (a): Provide multi -family rental rehabilitation loans and grants Targeted Outcome 1 GH (a); Improve the quality of existing affordable housing rental stock Source: Surtax Strategy 1 GH (b): Increase the supply of affordable rental housing through new construction Activity 1 GH (b): Provide financial assistance for new construction of affordable rental housing Targeted Outcome 1 GH (b): Improved quality of existing affordable housing rental stock City of Miami Consolidated Plan DRAFT 108 Source: HOME and SHIP e:Rtoitiratop Continue to Implement a Housing Choice Voucher Program Strategy 2 GH (a): Maximize the number of affordable units available to the City within its current resources. Activity 2 GH (a): 1) Maintain or increase section 8 lease up rates by establishing payment standards that will enable families to rent throughout the jurisdiction. 2) Undertake measures to ensure access to affordable housing among families assisted by the City, regardless of unit size requirements. 3) Maintain or increase section 8 lease -up rates by marketing programs to owners, particularly those outside those outside of minority and poverty concentration. 4) Maintain or increase section 8 lease -up rates by effectively screening section 8 applicants to increase owner acceptance of the program. Targeted Outcome 2 GH (a): Increase the affordable housing options for all eligible populations. Source: Section 8 Strategy 2GH (b): Increase the number of affordable units. Activity 2GH (b): 1) Apply for additional section 8 units should they become available. 2) Leverage affordable housing resources in the community through the creation of mixed -finance housing —in particular, the City of Miami will funds towards housing management support for new construction homeownership projects and will make available funds for rehabilitation of section 8 multi -family rental projects with predominately eligible elderly tenants. Targeted Outcome 2GH(b): Increase the number of affordable units for all eligible populations. Source: CDBG, Miami -Dade County Surtax, Section 8 Strategy 2 GH (c): Increase awareness of public housing assistance resources among families of races and ethnicities with disproportionate needs. Activity 2 GH (c): Affirmatively market to races/ethnicities shown to have disproportionate housing needs Targeted Outcome 2 GH (c): Increase in the cross section of race/ethnicities that inquire and/or apply for services. Source: Section City of Miami Consolidated Plan DRAFT 109 Policy 2: Preserve Existing Affordable Housing - Homeowner Retention In the next five years, the City of Miami will focus on providing housing rehabilitation assistance to low and moderate income households in order to help them maintain and retain their homes and in order to prevent the existing housing stock from continuing to decline. This program is a key element to the revitalization of the City's neighborhoods since a substantial number of the single family homes in the City fall below minimum housing quality standards (disrepair) and are owned by low and moderate income homeowners who lack the financial capacity and/or credit history required to obtain home repair financing from private lenders. Special outreach should be done to target housing units in the Model Block areas. The goal will be to assist homeowners with deferred maintenance, emergency repairs, removal of code violations, and replacement of unsafe structures. Preference will be given to the elderly, disabled and persons with HIV/AIDS. Below are the specific programs that will be used to implement this policy. Rehab Existing Homeowner Units and Correct Code Violations: The City of Miami will provide home improvement and rehabilitation assistance to homeowners throughout the City in order to improve the condition of existing housing stock. Under this rehab program, homeowner(s) that reside and maintain a property as their principal residence in the City of Miami will be able to obtain a deferred loan to bring their property to decent, safe and sanitary housing standard, or to correct existing code violations. Through this program, the City will be able to encourage low to moderate income owners that have illegal units to bring their properties up to code or to remove the illegal structures. To do this, the Community Development Department will work closely with Code Enforcement to target areas that have a high number of code violations. The intent is to provide incentives for homeowners to correct code violations. In addition to the rehab program, the City will provide funding for emergency repairs to rectify conditions that could endanger the health and safety of occupants. Replace Unsafe Housing Structures: In order to reduce the number of homeowners who live in unsafe structures, the City will provide assistance for replacing dilapidated owner -occupied housing units. These are typically units which are not suitable for rehabilitation. Funds will be used to defray the cost of temporary relocation expenses, demolition of the dilapidated structure, and soft and hard construction costs associated with the reconstruction of the new home. This strategy will be used only where the most appropriate solution would be to demolish the existing housing structure and replace it with a newly constructed housing unit on the exiting lot. Policy 2 Strategies PRlORITY$GHr Preserve Affordable Owner Housing — Homeownership Retention Strategy 3 GH (a): Preserve the quality of existing owner occupied housing through rehab assistance Activity 3 GH (a): Provide rehab assistance to homeowners for deferred maintenance, home repairs and elimination of code violations Targeted Outcome 3 GH (a): Improve the quality of the housing conditions for existing homeowners Source: SHIP and CDBG City of Miami Consolidated Plan DRAFT 110 Strategy 3 GH (b): Reduce the number of unsafe structures that are owner occupied Activity 3 GH (b): Provide assistance to homeowners to replace unsafe housing structures Targeted Outcome 3 GH (b): Improve the quality of life of existing homeowners by providing them with safe housing Source: SHIP and HOME Policy 3: Assist Residents to Achieve Homeownership The City of Miami will continue to assure that affordable homeownership opportunities are available for working class and moderate income families who are seeking homeownership opportunities but may be priced out of the market due to increasing real estate costs. To do this, the City will seek to increase the inventory of affordable homeownership units through new construction and the creation of a Purchase Rehab program. In addition, the City will provide second mortgage, down payment, and closing cost assistance to homebuyers. This will be supplemented by a Homebuyer Counseling Program that will help residents prepare for homeownership. Finally, the City will create a Lease to Purchase Program that will help renters to save money toward a down payment and stabilize their financial condition through homebuyer counseling. Finance Construction of New Homeownership Units: The City of Miami will seek to increase the supply of affordable homeownership units though new construction. The focus will be to promote and create affordable homeownership opportunities for low and moderate income families and individuals. This will be achieved by financing project costs associated with the development of affordable housing units and by providing hard and soft construction financing and permanent financing. Create a Purchase Rehab Program (New Program): Given the rehabilitation needs of the existing housing stock in the Model Blocks and the NDZs, it is recommended that a Purchase Rehabilitation Program be developed. Under this program, the City will provide financial assistance for the purchase and rehabilitation of existing homes. Qualified applicants would receive first time homebuyer assistance for the purchase of the property and rehab assistance to pay for the deferred maintenance or the repairs that the home may require. Provide Homeownership Financing: To assist homebuyers in the purchase of a home, the City of Miami will provide down payment, closing cost and/or second mortgage financing assistance to eligible persons and households who are first time homebuyers. Such assistance can be used for the purchase of newly constructed or existing residential properties within the City. Although this assistance will be available to anyone who wants to purchase a home in the City of Miami, City residents will have access to the maximum allowable subsidy. Residents who are moving into the City will be eligible for assistance, but at a lower cap. Provide Homeownership Counseling: Homebuyer counseling is a vital component of any homeownership program. Such programs assure that prospective homebuyers receive training in financial management, budgeting, mortgage financing, home maintenance and community improvement. In the next five years, the City of Miami will work closely with the Mianu- Dade Housing Agency and Greater Miami LISC to assure that families who are interested in homeownership are referred to their Comprehensive Housing Counseling Program. The goal is to create a pipeline of qualified buyers who will be able to purchase a home. To achieve this •x City of Miami Consolidated Plan DRAFT 111 goal, the City will conduct outreach in the Model Blocks, with the goal of referring residents to participate in the Comprehensive Housing Counseling Program. Create a Lease to Purchase Program (New Program): In order to help a greater number of renters move from rental to homeownership, the City will create a Lease -Purchase Program. This program will afford a prospective homebuyer the opportunity to rent a home while simultaneously saving funds for down payment and/or closing costs. In such a program, tenants pay their monthly lease and set -aside a small percent of funds in a savings account for down payment and closing costs. Once the family is able to purchase a home and move out of the rental unit, another family is able to move in and start the saving process. Such a program would assure the availability of potential homebuyers to purchase the new housing units being planned in the Model Blocks and the Neighborhood Development Zones. In the next five years, the City will adopt such a program and explore providing other types of Lease to Purchase options. Policy 3 Strategies PRIORITY;4 GH; Assist Residents to Achieve Owner Housing - New Homeowners Strategy 4 GH (a): Create a Purchase Rehab Program for homeowners (New Program) Activity 4 GH (a): Provide assistance to purchase and rehab existing housing Targeted Outcome 4 GH (a): Improve the housing stock and increase the number of residents able to achieve homeownership. Strategy 4 GH (b): Increase the supply of affordable homeownership units through new construction. Activity 4 GH (b): Provide financial assistance for new construction of affordable rental housing. Targeted Outcome 4 GH (b): Provide greater opportunities for low to moderate income families to achieve homeownership and improve their housing conditions. Source: SHIP and HOME Strategy 4 GH (c): Increase the number of households able to achieve homeownership through financing assistance Activity 4 GH (c): Assist low to moderate income families obtain homeownership by providing down payment, closing cost, and finance assistance Targeted Outcome 4 GH (c): Increase homeownership in Model Blocks and NDZs Source: HOME, SHIP and ADDI City of Miami Consolidated. Plan DRAFT 112 Strategy 4 GH (d): Improve the ability of low and moderate income households to purchase a home through financial literacy and homebuyer education. Activity 4 GH (d): Create a referral program that will encourage residents to participate in a Homebuyer Counseling program that will provide education on homeownership, assistance in addressing credit problems and assistance in applying for homeownership financing programs. Targeted Outcome 4 GH (d): Create a pipeline of households who are pre -qualified for home loans and who become homeowners Strategy 4 GH (e): Assist very low and low income families achieve homeownership through the creation of a Lease to Purchase Program Activity 3 GH(e): Create a Lease to Purchase Program that will enable very low and low income families to save for down payment and receive homebuyer counseling while renting Targeted Outcome 4 GH (e): Increase the number of homeowners able to save for down payment and closing costs toward the purchase of a home Policy 4: Stimulate Housing Development — Other Non -HUD Policies In addition to the policies listed above, it is important for the City of Miami to provide incentives to stimulate housing development. Such incentives should help to off -set the barriers that make it difficult to undertake affordable housing projects. The following is a list of the policies that the City of Miami will implement in the next five years in order to facilitate the development of affordable housing. Create a Land Acquisition Program for Infill: To assure that there is sufficient land available for the construction of affordable housing, the City of Miami will create a Land Acquisition Program for Infill. The purpose will be to secure properties for the development of affordable housing in an already dynamic market. City -owned residential parcels will be declared surplus and will be made available to developers of affordable housing in the form of a grant in order to assure that the cost of development remains low. The City will work with the Miami -Dade County and the State of Florida to help meet the goals of the program, which are to: • Make government -owned properties available for development by clearing encumbrances and liens • Make land available for scattered site development • Assemble parcels of land for large scale projects The initial priority of the City's Land Acquisition Program for lnfill will be the acquisition and disposition of parcels in the Model Blocks. Identify Additional Funding for Affordable Housing: Within the next five years, the City of Miami must identify additional funding sources for affordable housing. Greater diversity in funding resources will help to protect the City in the event that State and Federal resources continue to decline. The Housing Trust Fund offers such a possibility. The City of Miami Housing Trust Fund is available for the construction of affordable housing; however, the regulations that govern the program do not provide the flexibility needed to focus the City of Miami Consolidated Plan DRAFT 113 resources in the Model Block areas. Furthermore, the definition of "affordable" is too broad, allowing projects that are market rate to benefit from the program. To assure that the Model Blocks have access to funding from the Housing Trust Fund, the regulations will need to be modified. Help Expedite the Tax Credit Process (New Program): Targeting of existing housing resources alone will not enable the level of housing production that is needed in the Model Blocks and the NDZs. Untapped resources such as the Low -Income Housing Tax Credit (LITHC) program will need to be creatively utilized and combined with private financing to create a viable housing production incentive. The LIHTC has become the nation's primary mechanism for encouraging the production of housing to be occupied by low -or moderate - income households. Nationally, the LIHTC program has worked effectively for smaller -scale multi -family rental projects of 40-50 units. Although the Market Study showed that the City of Miami has been successful in attracting such programs, more can be done to assure that applications for affordable housing projects that are within the Model Blocks and NDZs are expedited through the City. To this end, the City of Miami can assist developers by making sure that the items on the LITHC application checklist that apply to the jurisdiction are completed promptly. Develop a Mixed -Income Housing Set -Aside Program (New Program): To assure continued production of affordable housing, the City of Miami will develop a Mixed -Income Housing Set -Aside Program. Under this program, developers seeking subsidies or zoning variances from the City will be required to set aside a percent of units for affordable housing. Should they not wish to offer affordable housing opportunities in their project, they will be required to pay an impact fee. Funds obtained through the impact fee will be used exclusively for affordable housing projects. Create Special Districts: Another means of attracting potential development projects that may not otherwise be possible in the Model Blocks or NDZs is through the creation of Special Districts (SDs) in the Business Development Corridors. Through the Special District classification, it will be possible to have mixed -use zoning along the key business corridors of the Model Blocks. Mixed -use zoning will allow for various housing types in combination with commercial uses and other amenities. Mixed -use zoning will also allow for denser, compact urban communities, creating the critical mass of residents that is needed to stimulate economic revitalization. Over the next five years, the City of Miami will work to obtain Special District designations for all of the Business Development Corridors within the Model Blocks and will seek to attract mixed -use and mixed -income projects for these corridors. Continue to Provide Affordable Housing Incentives: The City of Miami will continue to provide incentives to developers through the Affordable Housing Incentive Plan. This plan provides developers of affordable housing projects with a number of local incentives that are intended to expedite the pre -development process and reduce certain cost(s) in connection with the production of affordable housing projects in the City of Miami. The incentives include: • Expedited Permitting for Affordable Housing Projects ■ Review of Legislation, Policies and Plans that Impact Affordable Housing. ■ Impact Fee Wavier / Exemption • Interim Proprietary and General Services Fee Waiver / Exemption • Reduction of Parking and Setback Requirements • Interim Proprietary and General Services Fee Waiver / Exemption City of Miami Consolidated Plan DRAFT 114 The requirements of the plan will be amended to limit the incentives to projects that are located within the Model Block and the NDZ areas. Provide Training/Workshops to Developers on City Programs and Regulations: In addition, the Community Development Department will work with other City departments and Miami -Dade County to provide training to developers on the rules and regulations that govern the development process. Such training may include workshops on the permitting process, zoning, and environmental clearances. Streamline the RFP Process and Provide Multi -Year Funding: The City of Miami will seek to create a more effective and efficient funding process by streamlining the RFP process and providing multi -year funding for housing projects. To simplify the RFP process, the City will adopt a two part application process, similar to that instituted by Miami -Dade County. The first phase will be a short application open to any organization or individuals that wish to participate. The City will select among the short applications those who will be invited to participate in the second phase. The second phase of the application will have more thorough submission requirements. In addition to simplifying the RFP process, the City will provide multi -year funding for housing projects. As such, developers will not have to undergo the rigorous application process on a yearly basis. To assure that funding is utilized effectively throughout the multi- year period, the allocation of funds will be based on performance. Increase Capacity of Non-profit Housing Providers: To help improve the capacity of non- profit housing providers, the City of Miami will provide various services intended to assist these organizations. Specifically, the City will provide local government matching for community development corporations (CDCs) applying for tax credit financing for affordable housing projects. Furthermore, the City will encourage CDCs to partner with private developers by giving developers extra credit points in their RFP applications if they have a 51 percent partner that is a non-profit. Policy 4 Strategies PRIORITY $-GH: Stimulate Housing Development (Non -HUD Related) Strategy 5 GH (a): Create a Land Acquisition Program for Infill Activity 5 GH (a): Create a Land Bank Targeted Outcome 5 GH (a): Increase number of properties made available for affordable housing Strategy 5 GH (b): Develop a Mixed -Income Set -Aside Program for affordable housing Activity 5 GH (b): Develop a Mixed -Income Housing Set -aside Program that requires developers to set -aside a percentor units for affordable housing or to pay an impact fee. Targeted Outcome 5 GH (b): Decrease spatial concentration of affordable housing stock and increase affordable housing units available to residents City of Miami Consolidated Plan DRAFT 115 Strategy 5 GH (c): Assist developers to obtain Tax Credit Assistance for the construction of affordable housing (New Program) Activity 5 GH (c): Create a Tax Credit Assistance Program that helps developers expedite the application process by assuring that all municipal items on the application checklist are addressed in a timely manner Targeted Outcome 5 GH (c): Increase the number of Tax Credit applications for projects located in the Model Blocks and NDZs Strategy 5 GH (d): Facilitate the development process of affordable housing by providing training on regulations, expediting the pre -development process and reducing costs associated with development. Activity 5 GH (d): Expedite the permit process, provide waivers/exemptions of impact fees, and reduce parking setback requirements for affordable housing projects. Targeted Outcome 5 GH (d): Make the development process more user-friendly to developers of affordable housing Strategy 5 GH (e): Increase the capacity of non-profit developers to build housing Activity 5 GH (e): Provide capacity building support to non-profit developers. Targeted Outcome 5 GH (e): Augment the production of local non-profit developers in the area of real estate development Policy Recommendadons,and Strategies for Special IleOdai.rg004in Continue to Provide Affordable Housing to Special Needs Populations In addition to some of the programs described above, which give preference to special needs populations, the City of Miami is committed to assisting persons with special needs populations and their families obtain affordable housing. Special needs populations include the elderly, individuals living with HIV/AIDS, and persons with disabilities who are within the very low'to moderate income range. increase Housing Opportunities for the Elderly and the Disabled: The City of Miami, with one of the highest elderly populations in the nation, will continue to work with housing providers that assist the elderly and handicapped persons by supporting the development of housing through HUD's Section 202 Support Housing for the Elderly Program. Specifically, the City will provide funds for rehab or new construction of senior citizens residence projects that are Section 202 housing. Due to the fact that the percentage of disabled in the City of Miami is higher (26 percent) than the percentage of elderly (20 percent), additional effort will be given to increase the amount of housing assistance made available to the disabled. This is particularly important since only 5 percent of assisted units are exclusively for the disabled. Furthermore, 37 percent of the disabled population in the City of Miami resides within the NDZs. City of Miami Consolidated Plan DRAFT 116 PAR MMI SN; Provide housing assistance to the•elderly and to families'with disabilities. Strategy 1 SN (a): Target available assistance to the elderly. Activity 1 SN (a): Apply for special-purpose vouchers targeted to the elderly, should they become available. Targeted Outcome 1 SN (a): Increase in public housing assistance to the eligible elderly population. Source: Section 8 Strategy 1 SN (b): Target available assistance to families with disabilities Activity 1 SN (b): 1) Apply for special purpose vouchers targeted to families with disabilities, should they become available, 2) Support an intensive effort to educate and encourage housing providers using City funds to use universal design features in new construction and rehabilitation projects whenever possible. Targeted Outcome 1 SN (b): Increase in public housing assistance to families with disabilities Source: Section 8 Expand Housing Opportunities for Families with AIDS through HOPWA: Through HOPWA, the City of Miami will work to expand housing opportunities for county residents that are low to moderate income and have been diagnosed with HIV/AIDs. Current programs include project -based rental subsidies, the Emergency Rental, Mortgage and Utility Assistance Program, and the Housing Information, Referral & Advocacy Program. Preference will be given to units that have a mix of residents with various household incomes. The Emergency Assistance Program is a short-term emergency assistance pilot program executed in a well coordinated process with AIDS of Washington and HUD. PRIORITY2 SN: Provide long-term tenant -based rental subsidy for families with AIDs Strategy 2 SN (a): Provide tenant vouchers Activity 2 SN (a): Maintain the current level of tenant -based rental housing for 1,200 households. Targeted Outcome 2 SN (a): Stabilize the -housing situation for HIV families and avoid the need for emergency housing assistance. Source: HOPWA City of Miami Consolidated Plan DRAFT 117 Strategy 2 SN (b): Implement housing lease -up, recertification, and landlord relations. Activity 2 SN (b): 1) Contract out support for the Long-term Housing Assistance Program in the form of Housing Specialist. 2) Housing specialist will serve as a liaison between the landlord and the case manager. 3) Housing specialist will be responsible for determining eligibility, program enrollment, and recertification. Targeted Outcome 2 SN (b): Stabilize the housing situation for HIV families and avoid the need for emergency housing assistance Source: HOPWA P OFJTY4 $N; Provide project -based rental subsidy program for families with AIDS. Strategy 3 SN (a): Continue/expand support for subsidized units (currently there are approximately 60 units). Activity 3 SN (a): Consider proposals from project -based housing programs not currently receiving HOPWA rental subsidies Targeted Outcome 3 SN (a): Protection of the HIV families' preference for mixed resident communities with varying incomes and HIV status. Source: HOPWA PRIORITY 4 SN: Provide emergency rental, mortgage, and utility assistance for families with AIDs Strategy 4 SN (a): Increase funding for emergency rental, mortgage and utility assistance. Activity 4 SN (a): HOPWA emergency assistance. Targeted Outcome 4 SN (a): Reduce the risk of HIV families in becoming homeless as a result of temporary financial pressures. Source: HOPWA PRIORITY S SN: Provide housing information, referral, and advocacy for families with AIDS Strategy 5 SN (a): Identify and fund a community based agency (or agencies) that would offer housing information, referral, and advocacy services (including a web -based housing referral site) Activity 5 SN (a): 1) Develop a special needs housing clearinghouse, 2) Provide housing advocacy for persons who experience difficulty in securing rental housing due to their disability. 3) Offer self -advocacy education. 4) Provide referrals to HUD -approved housing counseling services for pre -purchase and default/foreclosure counseling, City of Miami Consolidated Plan DRAFT 118 Targeted Outcome 5 SN (a): Expand the housing to persons with HIV/AIDS and their families beyond that which can be accommodated by the existing Long Term Assistance Program. Source: HOPWA Continue to Support the Homeless Program: The Community Development Department continues its efforts in the prevention of homelessness by supporting the City of Miami's Homeless Program and its outreach programs. The City's Homeless Office tends to homeless individuals and homeless families. The office provides outreach services only in the form of referrals for a myriad of social services, to include behavioral, mental, health, and supportive housing. The Homeless Office operates in synchronization with the Miami Dade Homeless Trust office in a coordinated effort; to exhaust all available resources disposable for concentrations of homeless individuals drifting through the City's roadways. Note: For more specific strategies, please refer to the Homeless Needs Assessment chapter in this report. PRIORITY •7$N Reduce Chronic Homeless Activity 7 SN (a): Expand the availability of outreach services. Strategy 7 SN (a): Sustain support services to meet the needs of the homeless population and the development of a continuum of care system on a City wide basis. Targeted Outcome 7 SN (a): Enhance outreach services and the availability of low - demand safe haven beds. Source: ESG Provide Tax Assistance to Homeowners with Special Needs (New Program): To reduce the housing cost burden of homeowners with special needs who live in neighborhoods that are experiencing high levels of gentrification, the City of Miami will create a Tax Assistance Program for longtime homeowners that are elderly, disabled or that have HIV/AIDS. Throygh outreach, the City will assist these homeowners to apply for the various tax exempt programs offered by Miami -Dade County. These programs include tax exemptions for the elderly, disabled, and for widows. Other Housing Recommendations and Strategies Another face of community development is the need for fair housing practices aimed at reducing predatory lending and housing discrimination. Lower income groups, minorities and special needs populations experience discrimination in seeking out rental or home ownership units. This priority contains programs to ensure that fair housing laws are enforced in both the City of Miami and Miami -Dade County. Last, but not least, one of the overall goals of the strategic plan is to significantly reduce lead base paint hazards and prevent childhood lead poisoning. The City will support and coordinate its efforts in securing the services of a consulting firm specializing in the reduction and stabilization of lead paint hazards in lower income neighborhoods. The City takes precautious measures providing pamphlets and guidelines to all public housing residents illustrating the hazards of lead base poisoning. • City of Miami Consolidated Plan DRAFT 119 P,R+!'QRIT 4 firfi.. Fair Housing . Strategy 6 SN (a): Support a program performing fair housing counseling, investigation, and mediation services to respective individual's victimized by discriminatory practices. Activity 6 SN (a): Provide funding for fair housing services, Landlord tenant mediation services and Analysis of Impediments to Fair Housing Study. Targeted Outcome 6 SN (a): To guarantee and secure the fair housing rights of all individuals including special needs groups and minorities. Source: CDBG PRIORITY1 LP: Lead -base Paint Activity 1 LP (a): Seek the services of an experienced consulting firm specializing in lead -base paint reduction and prevention. Strategy 1 LP (a): Strive to integrate lead hazard evaluation and reduction activities into existing housing programs through continued quality assurance inspection monitoring and tenant education. Targeted Outcome 1 LP (a): To prevent and reduce lead poisoning of children and fully developed adults in low income neighborhoods stricken by the deterioration of building structures and housing units built prior to 1978. Source: CDBG • City of Miami Consolidated Plan DRAFT 120 XIU Community Development Profile Non Housing Community Development Opportunities in the City of Miami The City of Miami aims to reduce the high levels of poverty that exist in the City through its community development efforts. The plan is to revitalize distressed neighborhoods by implementing people -based and place -based community development strategies. People -based development focuses on improving the quality of life of individuals in a community by creating access to jobs and self-sufficiency among the disadvantaged. As such, the emphasis is on individuals rather than on location. Place -based development seeks to improve the physical infrastructure of an area in order to attract businesses and create market opportunities. These policies focus on location rather than the individuals. To assure comprehensive development, the City will try to achieve both people -based and place -based development through the Model Block concept. The goal is to stimulate neighborhood revitalization by improving the physical condition of the Model Blocks and the Community Business Corridors (CBCs), while simultaneously improving the quality of life of the residents living in these communities. In order to achieve this, however, it is imperative to have a clear understanding of the social service and economic development needs of the low to moderate income target areas. The following chapter provides an assessment of the community development needs of the City of Miami. The chapter is divided in three sections. The first section provides an analysis of the public service needs of the elderly, youth and disabled, as well as an assessment of people living in poverty and the chronically unemployed. The second section focuses on economic development and examines the need for business development assistance, such as facade improvement, technical assistance and micro -loans. The chapter concludes with recommendations for implementing a comprehensive community development strategy. Coordination The City's community development efforts will involve many players, with the understanding that the vitality of low income neighborhoods depends on the links that are established with the broader economy. To diminish the concentration and isolation of low-income families in the regional context, structural changes will be necessary. This will require the City to build a network of key stakeholders. Such a network would include developers, community advocates, CDCs and religious organizations as well as representation from municipal, state and federal government. The intent is for city departments as well as other public and private organizations to work together to coordinate planning, economic development, social services, infrastructure improvements and other services in these communities. Methodology Since funding for CDBG activities is divided among the City's five Commission Districts based on the HUD formula allocation, the following analysis provides an assessment of the public service needs at the District level. Economic information is also provided for the Districts and for the Neighborhood Development Zones (NDZs). It should be noted, however, that the economic data reflect the market areas of the NDZs. These market areas are broader than the previously defined City of Miami Consolidated Plan DRAFT 121 NDZ boundaries based on the assumption that businesses within these communities have clientele that reside in the general area, and not just in the NDZ boundaries as defined by the City of Miami. Census tract and zip code information was utilized to determine the economic characteristics of the NDZ market areas. (See Attachment 4 for a list of the zip codes and census tracts). The following section summarizes the findings of the public service and the economic development analysis. Dependency Ratio In order to determine the need for public services, it is important to analyze the dependency ratio of a community. The dependency ratio serves as an indicator of social service needs by providing a measure of the population who are too young or too old to work, but who may require special services.' In 2000, the City of Miami scored a dependency ratio of 63.3, indicating that City of Miami had 63 children and seniors for every 100 working age adults. Among the 100 largest cities in the United States, the City ranked 26i11 in dependency. This high dependency ratio indicates that there is great the burden on the working age adults in the community to support the dependent population. It also indicates that government has greater responsibility to provide basic consumption needs and social infrastructure, such as schools and health care, for those people who are dependent. The following provides a more detailed description of the various sub -populations in the City of Miami that depend on government services, including special needs populations, the chronically unemployed and those living in poverty. Table 48: Persons in Poverty by Age and Commission District, 2000 11 lllllllrilllll I}itilritI' District 1 District 2 District 3 District 4 District 5 Total I',•iSC1111»ilh Incourt IIflirA 1115 CI 11 I nllii 1 +.fill' 19,564 1,509 100% 8% 15,257 1,040 100% 7% 23,564 1,792 . 100% 8% 13,104 567 100°% 4% 28,680 2,998 100% 10% 100,169 7,906' �Il�carti 2,397 12% 1,425 9% 2,355 10% 1,049 8% 4,819 17% 13,803 12 1' 1CAI 1 1,771 9% 1,264 8% 1,880 8% 849. 6% 3,954 14% 9,718 10,014 51% 9,576 63% 12,144' 52% 6,837. 52% 14,263 50% 52,834 115 raIti :Intl nlilrr 3,873 20% 1,952 13% 5,393. 23% 3,1102 29% 2,646 9% 15,908 100% 8% 14% 10% 53% 16% Source: U.S. Census, 2000 * Total numbers of persons that Poverty can be accounted for. Poverty Households living in poverty represent the greatest segment of the population that is dependent on government assistance and other forms of support. If the City is to be successful in reducing poverty, its community development efforts must seek to increase the earning potential of poor families. Findings indicate that over 18 percent of the City of Miami's households make less than $10,000 per year. While this is a large proportion of the City's households, the NDZs fair much worse. With the I The dependency ratio is determined by dividing the number of children and elderly with the working age population. City of Miami Consolidated Plan DRAFT 122 exception of Coconut Grove, most of the households in the NDZs bring in an income otl"ess tflier $10,000.Over 40 percent of the households in East Little Havana, Little Haiti/Model City, Overtown and Wynwood are in this category. As can be seen on the dependency subsidy table below, the cost burden of these families is alarmingly high, creating the need for government to provide support and transferring the cost burden to tax payers. As housing costs continue to increase, the subsidies to support families who live in poverty will also rise. This is particularly true in Wynwood, Coconut Grove and Overtown, where the signs of gentrification are strong. Increasing the earning potential of these families will help to improve their living conditions and will help to stimulate the neighborhood economy by creating greater buying power. The challenge is that many of these individuals face barriers that make them unemployable. Table 49: Dependency Subsidy for Single Family Households with a Household Income of $10,000 \IUlitllll ( u.h hit IncI%ALtli anti ()ur Iwulrr Housing* Childcare" Food Total Expenses (Less taxes)*** Monthly. Earnings (Annual $10,000) Required Monthly Subsidy Annual Subsidy Estimated Subsidy for Households that Earn Lest than $10,000 *Rents are based on current market values for derived from research conducted by Urbana Research & Consulting, Inc. **Child Care estimates are derived from the following source: Greater Miami Prosperity Campaign. Building Community Prosperity in Miami -Dade. The Self -Sufficiency Standard for Selected Family Types in Miami - Dade County (Excluding Hialeah and Homestead). Page29. ***Does not include federal income taxes, payroll taxes or sales taxes. \11/ 11;irl,rl I lit \rat \Ltak 1.i ( HAW lit Mal I ;iir \I.0 6t t I(rnt $444 $399 $176, $1019. $833 ($186) $2232 $34 Million 1004 $399. $176 $1079. $833; ($246) $29$2 $44 Miltiau $176. 51227 $833 ($344) $4121 $62Mlllion Elderly One of the most vulnerable and most dependent groups in the City of Miami is its elderly population. According to the 2000 Census, 20 percent of Miami's population is 65 years of age or older, and 30 percent of this population lives below the poverty line (15,908). As a result, Miami ranks 314 in the nation in greatest share of elderly and 181 in elderly poverty rate. Within the Commission Districts, the area with the greatest need for elderly services is District 3. This District accounts for over a third of elderly living in poverty, with a total of 5,393 people. The second highest concentration of are found within Districts 1 and 4, respectively these areas account for 3.,873 and 3,802 of the elderly poor. Approximately 28 percent of the City's elderly population lives within the NDZs, and almost half of these individuals reside in East Little Havana. High priority should be given to assure that elderly services are targeted in these high need communities. Because many of the elderly live on public assistance, their income is minimal. As such, they have a limited amount of income for services such as transportation. To maintain the quality of life of the seniors in the City of Miami and assure dignity and human connectedness, the following services are needed: senior center programs, adult day care, congregate meals, transportation services, multicultural/multilingual services, home repair and maintenance assistance, legal and insurance assistance, health care education, and homebound services for those unable to leave their homes. Youth According to the 2000 Census, children make up 21.7 percent of the total population in the City of Miami. Although the City ranks 88'h in the nation for its share of youth, it ranks 4th for the number of children under 18 living below the poverty line. Approximately 39 percent of the City's children City of Miami Consolidated Plan DRAFT 123 are considered poor. This is an important factor given that the City's youth is primarily concentrated within poor communities. Indeed, of all the Commission Districts, District 5 has the highest concentration of poverty, with 43 percent of its residents living in poverty. This district also accounts for the highest number of poor children (31 percent). Interestingly, almost half (43 percent) of the City's youth live within the NDZs. Most are found in Little Havana and Edison/ Little River/Little Haiti. To assure that children who live in poverty in the City of Miami have a high quality of life, it is important to provide services that create access to education and other life enhancing opportunities. Such services should deter at -risk behavior and high school drop outs. Services for youth that are considered priority needs include school readiness programs, after school services, recreational activities, and tutoring services. Because many of these children live in single female headed households, child care is also a top priority. Disabled According to the 2000 Census, approximately 26 percent of the population in Miami is disabled (for a total of 95,240 people). The largest segments of this population (65 percent) are individuals' ages 21 to 64 years of age. Approximately 24 percent are seniors over the age of 65. Those who are 75 years of age and over make up the largest portion of the disabled seniors. Interestingly, 71 percent of the disabled are Hispanic. Only 29 percent are Black. It is estimated that 33 percent (35,367) of these individuals live in the NDZs. East Little Havana has the almost half of the disabled in NDZs (with 14,635 people).2 Because there are various levels and types of disabilities, further analysis is required to determine the extent of the need of these individuals. Priority services for this segment of the population include child care, youth programs, education, adult day care, in -home support, transportation, self-sufficiency/independent living, screening, family advocacy, and support services. Chronic Unemployment An analysis of the labor force in the City of Miami revealed that a large portion of the City's population may be chronically unemployed. This is yet another sector of the population that may be dependent on government services. Chronic unemployment refers to individuals who have permanently dropped out of the workforce due to the perceived lack of employment opportunities. These individuals generally represent persons who have not benefited from welfare employment programs. Adult males generally make up a significant portion of this population. Unlike single mothers, males are not eligible for welfare benefits, making it difficult to reach this particular population. People who are unable to find employment within two years are also likely to join the ranks of those who have dropped out of the labor market. The end result is a pocket of the population that is isolated from the economy. Many of these individuals find their way onto other benefit programs (most frequently disability benefits), and the remainder rely on family and friends for support. The informal sector also provides a source of income for many. According to the 2000 Census, only 50.3 percent of the population in the City of Miami was in the labor force. This is considered the lowest labor force participation rate in the nation, The average among large cities is 63 percent. From 1990 to 2000, the number of working age adults not in the labor force grew by almost 37,000, an increase of 37 percent. When comparing this data at the Commission District level, it appears that District 5 has the lowest labor force participation in the City. Only 44 percent of the working age adults in this District are in the labor force. This means that 66 percent of the potential labor force in this area is not actively seeking employment. Within the Neighborhood Development Zones, the numbers of the chronically unemployed are more severe. Except for Coconut Grove, over 50 percent of the working age population in all of the NDZs is not in the labor force. In Overtown and Little Havana, the number of working age adults not actively looking for work was as high as 63.5 percent and 58.2 percent respectively. In order to reduce poverty and improve the economic condition of the individuals in the NDZs, it is important to 2 US HUD Special Tables on Disability. City of Miami Consolidated Plan DRAFT 124 understand why such a large segment of the population is not in the labor force and to address the barriers that are keeping them from obtaining employment. Job training programs can be tailored to meet the needs of those individuals who are chronically unemployed that are interested in entering the labor force. 50: Employment for Population 16 Years and Over by Commission Districts: 2000 1/1111IIi11iun 1)iti11 icl laisirict ',District 2 District 3 District 4 District 5 Total I'ulnll.11iun II, 4u111 1 h 56,782 100% 61,366 100% 59,157 100% 63,126 100%. 52.126 100%° 292,7000 En I dlnn I liar 6,991 48%. 36,475 f itili.lu 28,951 49% 31,631 50% 23,192 44% 147,240 100% 50% Source: U.S. Census, 2000 26,!991 41 36,357 33,415.t` 59% 54 5 > 1 I111111IN Ca Ill'IIIIYI.��c11 \il in Alkr 28,934 25,367 3,567 Q06;`. 49% 43% >; 69%': 31,619. 28,956 2,663 r 310595; 50% 46% 4"/b 50% 23,184 18,640 4,544 29,077 44% 36% 9% 5634 147,805 129,882 17,203 145,460. 50% 44% 6% 50% Education and Job Training There are many job -training opportunities in the City of Miami for individuals seeking employment; however, workforce agencies have found that many of the individuals that participate in these programs need remedial education in reading, writing and math. Part of the problem is that approximately 47.3 percent of the population in the City (25 years and over) do not have a high school diploma. In some poor communities, the numbers are even higher. In Allapattah, Overtown and Wynwood, for example, over half of the population does not have a high school diploma. Among the Commission Districts, it was found that Districts 3 and District 1 have a great number of individuals with less than a 9th grade education. To make the issue more complicated, it should be noted that most of the public schools that have earned a failing grade for poor performance are located in the City's distressed areas. For job training and job placement programs to be successful, participants must have basic educational skills. As such, more needs to be done to provide remedial education to adults. Furthermore, an emphasis must be given to assure that school age children receive the necessary educational and tutoring assistance needed for them to graduate high school with a full grasp of the core competencies. City of Miami Consolidated Plan DRAFT 125 Table 51: Educational Attainment of Persons 25 Years or Older by Commission District, 2000 Ui ti t1 Total 100% .. Source: U.S. Census, 2000 252,494 I'u11.ir I i nI '� :49,091 100% 71li j;,�ulr cllura[inn 41 RN', 18,668 38% 54,206 7,367 100% 14%; 51,385 21,067 100% 41% 56,188 16,734 100% 30% 41,620 11,377 100% 27% 75,213 30% It.I4'I,4'l1II''% 9,t64 20% 9,618, 18% 9,0.13 18% 11,142 20% 10,541 23% 49,978 20% 2,318 5%: 9=947. 18%, 3,137 8% 1,597 4% 21,750 9% \Ia%Iri'% I� 694a. 4,751 1,62T ,356,d x^ 564 f"+fit t 8,834 Akale 3% I1o41L+I.111. Job Placement For those who require job skill training, there are a myriad of programs, many of which are located in or near distressed communities. The problem, however, is that some of these programs do not guarantee job placement. As a result, finding a job may be difficult once training is complete. To address this issue, it is important for workforce programs to have an accurate understanding of local industries and their labor needs. Furthermore, the programs need to establish agreements with private sector companies to guarantee that graduates have jobs once they complete the training. Within the NDZs, there are opportunities to stimulate development and improve the labor force by matching existing training programs to growing industries. For example, the City of Miami Target Industry Study, indicates that there is a shortage of skilled labor in several key industries: furniture, fabricated metals, plastics, and the motion picture and entertainment industries. These are high paying industries that required specific skills. Job training and job placement programs need to target these industries. Rather than focusing on large corporations, the study emphasized the importance of finding industry clusters that create employment opportunities. Below is a list of the opportunities that exist in the various Neighborhood Development Zones: ■ Wynwood has most of their working population employed in the either the Arts/Entertainment/Recreation or Construction industries, which could possibly support the growing entertainment and design industries in their neighborhood. ■ In Coconut Grove, Overtown and Wynwood , a significant proportion of the working populations are employed in the educational, health and social services industries. ■ The construction and manufacturing occupations dominate in Allapattah,. ■ In Model City, Little Haiti, Wynwood and Edgewater, the majority of the establishments are made up of wholesale and retail businesses. City of Miami Consolidated Plan DRAFT 126 Anti -Poverty Policy Reforms As was discussed earlier, if the community development strategy is to truly fight poverty, it is imperative to increase the earning potential of the very low to moderate income families living in the City of Miami. The leading problem with the current system of job training and job placement is that individuals are being placed in low -skill low -paying jobs. Outputs such as job placement and earnings are the focus of these programs, since continued funding is based on these measures. To assure that employment and job training programs help to eliminate poverty, policy reforms are needed. One of the most important changes that can be made is to reform the funding standards. If funding standards require programs to develop strategies to help participants obtain employment that places them above the poverty line, programs will shift their attention toward achieving that goal. Given that many individuals who live in poverty lack the basic skills to be employable, such a policy will be challenging. This will require programs to develop long-term strategies that enable participants to move from basic life skill courses, to adult remedial education, to more advanced job training programs. Special services, such as child care and substance abuse programs, must also be provided. Within the next five years, the City of Miami will take active steps to address these challenges. 4060.1}A,MDT.F.7f,Fl!rRl'!fr.nt,-';.Place .Based . Nee Through the concept of the Model Block and the Community Business Corridors (CBCs), the City of Miami will implement a cohesive community development strategy that identifies target areas and sets priorities for development. This place -based economic development initiative focuses on business corridors in which public / private partnerships are already in place. The City's function is to trigger development by providing infrastructure, facilitating business development, being proactive in marketing the communities, and providing the resources that are lacking to complete the deals. The following is a brief discussion of the challenges and opportunities that the City faces in trying to stimulate business growth and investment in the CBCs. Business Development and Job Creation and Retention There are approximately 238,602 business establishments in Miami -Dade County. Over half of all firms are owned by minorities, mostly Hispanics.3 Blacks only make up 7 percent of the businesses. The sales of minority business establishments, however, fall proportionately below those of all firms. This is due to the fact that minority businesses tend to be smaller with fewer employees. Minority businesses generally constitute small retail ventures that employ one or two people. These businesses tend to fail or barely survive because they have to compete with larger companies for market share. If minority firms are to have a competitive advantage, the focus should be on building industries, not just businesses. Industries are self-sustaining niche markets in which it is possible control all facets of trade, including production, distribution, and retail. There are many opportunities to 'create minority industries that cater to specific niche markets, but few of these industries exist, The Black beauty industry is an example. In addition to beauty salons, it is possible to encourage businesses to become manufactures and distributors of beauty supplies. Rather than focusing on individual business development, economic development efforts should support the development of industries. Loan programs, business grants, tax abatements, and other business assistance programs should target companies that foster minority industries. 3 The U.S. Census Bureau conducts an economic census which surveys minority and women- owned businesses every five years. It should be noted that the lowest geographical analysis available is at the county level. However, County data can serve as an indicator for the City. It should also be noted that the available data from the economic census is outdated (1997) and the most recent survey conducted in 2002 has not been released at the county level yet. City of Miami Consolidated Plan DRAFT 127 As was mentioned earlier, the furniture, business development, job creation and job retention programs should target the fabricated metals, plastics, motion picture and entertainment industries. These cluster industries are located in the NDZs and have great potential for growth. Opportunities Table 52: Minority and Women Owned Businesses, Miami -Dade County: 1997 (.1 uup ' ,All:Firm Total minorities Black Hispanic Women 1111iiins 238,602. 138,848 16,918 120,605 56,234 ';142,668,840' • 31,723,15T 1,069,790 26,730,034 8,134,996 Source: U.S. Economic Census, 1997 1 lull% 11 I111 ,:I111 l'Ol(11i11 CPS 136,329,069 � t 29,141,189 153,772 1,806 672,746 26,332 24,516,150 9,352 7,172,946 9,830. 128,135 4,r"" ,�..y 55,734 > `'lealn also exist along the commercial corridors. For example, there exists a market for personal services (i.e. beauty salons and coin laundries) along the Martin Luther King Boulevard and the 54's Street Corridor. Drive -by businesses, such as grocery stores and pharmacies, also offer potential business opportunities. Currently, 27 percent of the area's expenditures are on convenience goods and personal, for a total of $59 million. But not all of it was spent in the community, By encouraging these types of establishments, it will be possible to attract a greater share of the market locally. Access to Capital) Business Loans and Grants For commercial revitalization to take place, capital investment is needed. The problem is that the level of capital investment in distressed communities is negligible. Much of this is due to fear that such investments are high risk. Although government agencies provide some influx of funds, in the form of business loans, grants, and tax incentives, the investments are scattered. There is generally no strategy for using these investments to spur economic growth in key corridors or business sectors. In order to maximize the use of limited resources, it is important to understand the various types of funds that are available for investment and to develop a strategy for using these funds to create economic stimulus in the CBCs. For such a strategy to be successful, more needs to be done to educate businesses that low to moderate -income communities are viable markets for goods and services. There is a perception that private sector investors are hesitant to invest in distressed comtunities because they fear loss of investment. To overcome this problem, it is important to understand what the private market is looking for before investing in a community and where the investments are being made. Government agencies need to work together to encourage private sector investment and business growth in low income communities. According to the Miami Targeted Industry Study, there is an opportunity to attract business by developing special incentive packages for certain targeted industries. These incentives include the following: • Creating a retention/attraction strategy for small businesses in high growth industries located in the NDZs, including incentive packages such as loans, grants and tax exemptions. • Providing partial exemption from certain taxes for local businesses that make capital improvements and provide long-term employment to local residents. City of Miami Consolidated Plan DRAFT 128 ' 'In addition to government funds, private investment is crucial in order to stimulate revitalization. However, some contend that there is a subtle type of redlining in Miami -Dade. Although the Community Reinvestment Act (CRA) is supposed to prevent such practices, some believe that relining still exists and is a real barrier. To address this issue, it is important to determine whether existing banks are complying with CRA requirements for mortgage loans as well as for business loans. In the next five years, the City of Miami is committed to leveraging government funds as a means to encourage CRA investment. The City will also work with local financial establishments to assure CRA compliance. In order to leverage public dollars, it is important to know what is available in private resources and how those resources have been utilized. HrIMMPt9 i0• In order to facilitate business growth, it is important to have site readiness. Factors that affect site readiness include infrastructure, zoning, water & sewer connections, and the appearance of slum and blight. It is difficult to attract, expand, or retain businesses if sites are not "business ready". Various studies, including the FEC Corridor Study and the Miami Target Industry Study, have indicated that such issues have discouraged investors from engaging in projects in these communities. Those who have ventured as pioneer investors have been frustrated by the City's lack of visible commitment in addressing these problems. For the CBCs to be competitive, site readiness must be achieved. By investing in the infrastructure and streetscape of CBCs, the City of Miami will be sending a clear message to potential investors that it is committed to revitalizing these areas. This can be done by setting priorities for each of the Corridors. Business owners need to see that the City is willing to address the following problems: • Street conditions (Le. paving) • Street lighting • Street Signs • Sidewalks • Curbing • Crosswalks (ideally pavers) • Adequate parking • Adequate storm water drainage • Landscapes/Streetscapes (including signage) Historic Preservation Facade Improvements The NDZs, the Model Blocks and the CBCs are rich in ethnic and cultural character. Facade improvement and other revitalization efforts should take into account the cultural heritage of these communities. The focus should be to create a "sense of place" that helps to preserve the cultural and ethnic make up of the neighborhoods. Indeed, the NDZs are rich with culture, representing African - American, Cuban, Haitian, Jamaican, Bahamian, Puerto Rican, and other nationalities from the Caribbean and North, Central and South America. Furthermore, these communities are home to some of the oldest structures in the City of Miami, many of which have historic value or represent an architectural style specific to a particular period or community. As has been witnessed in Miami Beach and Little Havana, historic preservation and cultural heritage programs can serve as a catalyst for economic revitalization, creating opportunities for dining and entertainment destinations. Attachment 5 provides a list of the historic sites that have been identified in each of the NDZs. In the next five years, the City of Miami will seek to preserve the historic and cultural character of the NDZs through its historic preservation and facade improvement programs. City of Miami Consolidated Plan DRAFT 129 ey Areas of Need Public Services Special Needs Services: The segments of the population which have the greatest needs for public services are the elderly, youth, individuals with disabilities and households living in poverty. Households living in poverty represent the largest segment of the population dependent on government services. As such, the greatest public service need of the City of Miami is to reduce poverty. To do this, the City will focus on improving the earning potential of poor families and on providing public service programs that will help to reduce poverty. Job Training: Chronic unemployment along with low educational attainment indicates a strong need for workforce development in key industrial sectors. Key industrial sectors in the NDZ tend to support manufacturing and service occupations, which do not always require upper level education, but do require sometimes specialized technical skills (i.e., plastics manufacturing or entertainment industries). Economic Development Job Creation and Retention: Attraction of new businesses that have the potential for growth within the CBCs, but that reflect the broader trends of the area. For example, entertainment, furniture, fabricated metals and plastics industry show positive growth potential. These industries already have begun to show their presence in Little Haiti, Wynwood and the Downtown. Critical to the success of local economic development strategies is the ability of city governments to forge the institutional support for industrial clusters. New and heightened global competition across all industrial sectors suggests that cities and regions with strong levels of institutional support for specific industrial sectors will garner a competitive edge in the global marketplace. Technical Assistance: Connecting business owners and managers with assets in and around their communities is a vital need. Institutions (i.e., non -profits) already provide business start-up assistance, but small business owners and employees are either unaware of them or their services. Commercial/Industrial Improvements (Rehabilitation): Most of the CBCs need large-scale renovation along strategic commercial corridors. This can be done by providing incentives to businesses for significantly improving the visual appearance of the properties. Specifically, the facade renovation includes painting, signage, awnings, storefront improvements, limited landscaping, lighting, and other design elements. For example, the Overtown and Allapattah CBCs, which gives the perception of vulnerability to crime, can overcome that with renovation improvements. Historic Preservation and Facade Improvements; Because each CBC is ethnically/culturally unique, it is important to take into consideration the character of the neighborhood when investing in. improvements in the commercial districts. For example the Little Haiti Park Project on N.E. 2"d Avenue hopes to revitalize the Caribbean Market with a "cultural component." •Thus, commercial rehabilitation to the Caribbean Market should consider the district's "sense of place" when implementing the improvements. Other targeted neighborhood business districts have a distinct cultural flair worth preserving- i.e. the Bahamian motif in Coconut Grove, the African American folklife village theme in Overtown, and the Puerto Rican O1d San Juan design incorporated into the streetscape in Wynwood. Infrastructure Improvements: Poor infrastructure, lack of parking and the appearance of blight and crime are among the leading factors that have impeded private investors and businesses from investing in the Conununity Business Corridors. In order to encourage revitalization and make a community "bankable", investors need to see visible results. As such, the City needs to focus on improving the public infrastructure and streetscape of the CBCs. Below is a checklist of public improvements that are most likely to make an area "bankable" and that will have a positive visible City of Miami Consolidated Plan DRAFT 130 impact. Within the next five years, the City should use the checklist to assess the public improvement needs in each of the CBCs. These items should be given top priority for funding. • Street conditions (i.e. paving) ® Street lighting ® Street Signs ® Sidewalks ® Curbing ® Crosswalks (ideally pavers) ® Adequate parking m Adequate storm water drainage m Water and Sewer improvements (for Community Business Corridors) m Landscapes/Streetscapes (including signage) City of Miami Consolidated Plan DRAFT 131 XIV Anti -Poverty Strategy A Unied Vision to Alleviate Poverty in the City ofMiami a iry { , .. U " :'r . n ,.,0«H h fit•t pi " The Anti -Poverty Strategy describes the programs and policies, which will be utilized to reduce the number of households with incomes below the poverty Tine, in coordination with affordable housing efforts. The Department of Community Development will deploy a strategy responsive to the needs of low-income citizens and disadvantage populations throughout the five Commission Districts. The realization of this strategy has been sustained by the Mayor, City Commission, City Departments and the Department of Community Development. The Department of Community Development will further the U.S. Department of Housing and Urbana Development (HUD) national objectives by coordinating the priorities collectively established in the public hearings with goals and objectives. The strategy will synchronize: • The Mayor's Anti -poverty initiative; • The existing funded programs; • The coordination process, policy development and leveraging potential of CDBG eligible activities with private, state, and local funds. The developed strategic plan will target the Neighborhood Development Zones (NDZs) adopted by the Miami City Commission. The City, coupled with Community Based Organizations (CBOs), Community Housing Development Organizations (CHDOs), non- profit developers, private non-profit corporations, private for -profit corporations and private non- profit Community Development Corporations (CDCs), will position a plan of action design to declare a "War on Poverty". Programs and projects that are in line with the goals and objectives in this strategy will enhance economic opportunities and quality of life to low and moderate income families, as defined by HUD: • Extremely Low Income Family- Family whose income is between 0 and 30 percent of the median income for the area as determined by HUD with for family size. • Very Low Income Family- Family whose income is between 30 and 50 percent of the median income for the area as determined by HUD with adjustments for family size. 132 • Low-o]�Moderate lncatite family- Family whose income is between 50 and 80 percent of the median income for the area as determined by HUD with adjustments for family size. ▪ Middle Income Family- Family whose income is between 80 and 95 percent of the median income for the area as determined by HUD with adjustments for family size. Furthermore, the 2004-2009 Consolidated Plan's poverty strategy shares a unified vision with the Mayor's city-wide master plan. The city-wide master plan identifies priorities with a focal point, on the following objectives: • Improving the economic situation of our citizenry through responsible tax cuts; • Making capital investments that will facilitate future economic growth; • Safeguarding the City's fiscal solvency; and • Ensuring the delivery of quality services to enhance quality of life. The Mayor's enhancement of quality life services compliments HUD's CDBG national objectives by seeking to expand a modern communication system, reduction of crime, quality park system, clean streets, suitable living environment and adequate transportation infrastructure. NOTE: the Mayor's Poverty initiative is not dependent of HUD funding, but instead it shares a unified vision with the HUD National Objectives, striving to promote community development and economic revitalization through potential leveraging and coordination with HUD programs. Mayo!', Anti overly. initiative In November 2001, the voters of the City of Miami elected a new mayor, Manny Diaz. Upon, his appointment in office Mayor Diaz set goals for the City's revitalization strategy. Specifically, he called for all the City departments, as well as stakeholders, to work towards restoring the economic growth of Miami's poverty-stricken neighborhoods. The mayor stated that we have the authority to make changes. Some changes can be implemented immediately; others require a longer timeframe. Therefore, our task is to provide leadership to address the challenges facing the City. The challenges will be defeated through core competency, inter - department collaboration and the active involvement of citizen participation. Two and a half years later, and after the publication of the Mayor's "State of the City Address" there is evidence that the City is making progress towards its goal. Changes are taking place, with positive outcomes and significant implications for the coming years. The Mayor's Anti -Poverty plan illustrates the provision of stability for local City residents, with a unified vision executed through superb leadership. The emphasis of the plan is to make neighborhood investment a priority. As a result, the plan seeks to replace traditional government bureaucratic structure and inject a private sector model driven by efficiency and performance outcomes. Undoubtedly, the plan has been embraced and supported by the City Commission and the City Manager. The plan will engage in a series of priorities recognized, as a result, of findings via a myriad of studies and analyses, executed by City staff members and private consulting entities. The philosophy behind the plan is to make all of our neighborhoods safer and better places to live. The following is a list of priorities and projects identified in the Mayor's • 133 poverty plan established by City Departments that mirror the HUD CDBG national - • ,, objectives: Department: Capital Improvement Projects ■ Objective # 1: Giving priority to capital needs. • Objective #2: Development of a Capital Improvement Plan. Department: Public Works ■ Objective # 1: Developing a flood mitigation plan. Department: Police • Objective #1: system. • Objective #2: Implement the COMPSTAT Program a crime tracking Increase the number of police officers on the streets. Department: Solid Waste • Objective #1: Deliver the Clean Up Miami campaign by deploying daytime street sweepers, litter and graffiti busters in teams, to beautify residential and commercial areas. • Objective #2: Implement neighborhood trash centers to supplement weekly trash pickup. • Objective #3: Put into operation a bulk trash pick-up in an effort to phase out the crane operation that causes infrastructure damage to roadways. Department: Neighborhood Enhancement Team (NET) Offices • Objective #1: The net offices will become more responsive to the needs of out citizens by becoming direct points of contact between citizens and government, • Objective #2: NET offices will operate as One Stop Centers further empowering our residents to explore potential eligibility for public assistance benefits (TANF, Food Stamps, Medicaid, Kid -Care, SSI/SSA, and lifeline) and providing referrals to distinct locations for services. Department: Parks and Recreation • Objective #1: Create vibrant green spaces for our residents to enjoy in harmony with their loved -ones. 134 • Objective #2: Assist.our parks in becoming places of academic, artistic and athletic excellende foi low to moderate income families. • Objective #3: Support the implementation and development of after - school tutoring programs and youth activities. • Objective #4: Establish an atmosphere where tutoring and mentoring will be available, in a proactive approach to reduce juvenile delinquency. • Objective #5: Implement the CITSTAT and 311 Programs a service delivery and complaint tracking system allowing management and our citizens to access services and monitor accountability for city services. Department: Code Enforcement • Objective #1: Sustain the Quality of Life Task Force to reduce illegal cafeterias, illegal units, illegal dumping, and motels that harbor prostitution and drugs. Department: Economic Development Objective #I: Patronage the Mayor's citywide PovertyInitiative through committed funding targeted specifically for poverty reduction by adhering and closely monitoring the City's Economic Revitalization Plan. • Objective #2: Support local Urban Development with the objective being to further develop residential units, retail space, and commercial corridors. • Objective #3: Pursue joint ventures with other government entities for the purpose of leveraging funds for specific revitalization projects. • Objective #4: Provide assistance in the local businesses located within economic revitalization corridors/projects, to conduct facade improvements, paint buildings, plant trees, and maintaining the street-scape clean on a weekly basis. • Objective #5: Continue backing the Martin Luther King (MLK) economic corridor by identifying capital improvement dollars together with Miami -Dade County and the City of Hialeah; to partner local residents with franchises and local small businesses; to create jobs and economic stimulus in the area. • Objective #6: Maintain support for the Wynwood Buena Vista Yards that will sprout economic growth and residential development in the area. • Objective #7: Retain back-up for the Allapattah Wagner Square which will germinate economic opportunities and provide affordable housing residential units. • Objective #8: Sponsorship of the Civic Center area by promoting the Miami Partnership between the City of Miami, University of Miami (UM), State, and local stakeholders, to promote investment and economic opportunities in the Overtown area. 135 • Objective #9: • Support the construction of two biomedical facilities by UM in the Overtown area that will spring economic growth and investment for the local residents. • Objective #10: Put into effect economic development and renovation of Grand Avenue (Coconut Grove). Department: Mayor's Office • Objective #1: Continued support of the Earned Income Child and Tax Credit outreach. • Objective #2: Endorsement of the Financial Literacy Campaign to develop individual financial accounts and to incentive assets building. • Objective #3: Confirmation of the KidCare and Jackson Health System Programs designed to provide health coverage for uninsured children and adults in the City. • Objective #4: Compliment the Micro -Lending Program designed to provide much needed capital to new and existing small businesses. • Objective #5: Implement a Citywide Transits Plan to guide the development of future growth envisioned in the urban core. The goal of the poverty initiative is to combat poverty within the City of Miami to the greatest extent feasible with tangible resources and realistic objectives. The Department of Community Development is actively working with the Mayor's Office to accomplish some of the priorities recognized in his plan. The plan serves as a "tool -kit" to initiate the war on poverty. The department of , Community Development in mutual endeavor with Mayor's Office will deliver a plan of action targeted at the grass roots of poverty joining forces with a shared interest and vision "To decrease poverty in the nation's poorest City". Collectively with City general funds allocated to the Mayor's poverty initiative and with the mix -use of CDBG funding, Community Development will coordinate a crusade directed at eliminating poverty. Unquestionably, the existing CDBG funded activities will assist in this crusade offering leveraging potential. Moreover minimizing duplication of services to a shared an identical interest group. A collaborative effort has taken place in coordination with the Mayor's Office, City Commission, City Manager, City Departments and Local CDBG funded providers aimed at disarming poverty in the City's impoverished neighborhoods. This effort could not be catapulted without the funding and coordination of services of the local CEOs, CDCs and CHDOs. These funded CDBG providers are the core of our operation attributed to their direct connection with the members of the local community. The aforementioned serve as the eyes, ears and voice of the community advocating on behalf of their low and mod income clientele. Nevertheless, the City of Miami has exercised a series of public hearings to greatest extent possible attempting to identify the need of the community, in an effort to disseminate funding in those areas acknowledged by the recipients of CDBG funding, low to mod income citizens, public assistance recipients, elderly citizens, 138 disabled individuals, and special needs subgroups (AIDS/HIV infected, Homeless, drug addicts). The City has undertaken a number of efforts and programs to reduce both the number of citizens living in poverty and the percentages of the population living in families below the poverty line. However, it is important to acknowledge the vitality of CDBG funding while attempting to address even a partial list of issues pertinent to indigent City residents. The City strives to reduce the number of poverty level families by supporting human development and economic development activities that facilitate the creation and retention of employment opportunities. In addition, the Department of Community Development Housing Programs work closely with the City's Economic Development Planners, to ensure that affordable housing efforts are properly coordinated with economic development activities to reduce the incidence for poverty in the City. The department's housing programs also exercise coordination with Community Housing Development Organizations. Traditionally the norm has been to provide funding to organizations rendering social services, housing services/activities, economic development activities, and special needs populations. As such, a series of funding gets committed to agencies identified as providers catering to the needs recognized in the public hearing process. This upcoming five year consolidated planning period will commensurate funds to entities pursuing the reduction of poverty in the City, sharing a concurrent ideology with Community Development Department and Mayor's poverty initiative. The rationale supporting this strategy is to merge and invest all available resources at targeted areas and identified priorities, while injecting funds in concentrated areas (pockets) to obtain the biggest impact for our dollars. In general, the Department of Community Development supports a wide range of programs that help people develop the skills and the stability needed to secure steady housing and income. Various poverty studies have noted that persons living in destitute have a variety of needs for legal assistance, childcare, healthcare, transportation, housing, social services, employment training, financial literacy, economic enhancement and educational attainment. The strategy in combating poverty is not only to accomplish the listed attributes. However, the goal is being able to sustain those attributes when accomplished. The human services delivery strategy provides focus on programs that support education, counseling, prevention programs, case management and other capacity building functions. The City seeks to reduce the number of poverty -level families by supporting human development and employment programs that facilitate the creation and retention of job opportunities. The mission is to evaluate programs that work towards getting families out of poverty. Thus, the City will implement a comprehensive plan that will use its resources and efforts, on developing a skilled and employable resident workforce capable of receiving living wage jobs and conquering the need for affordable housing. The City also works to develop infrastructure support to assist economic development projects that compliment workforce enhancement. Another tool the City plans to implement in the near future is the introduction of Neighborhood Revitalization Strategy Areas (NRSA). Jointly the Department of Community Development and the Mayor's Poverty -initiative will put into practice a partnership strategically designed to support a holistic approach in activities that focus on human services, affordable housing and economic development. Holistic Anti -Poverty Approach ■ Economic development activities that generate living wage jobs and community sustainability. 137 • Access to a variety of housing options that promote family and community stability. • Neighborhood -based safety strategies that help residents create safer neighborhoods. • A comprehensive financial education system that prepares citizens for participation in the economic and social fabric of the community. • Coordinate Community -based services that nurture and support young people and their families. The main objective of addressing public service needs is to develop a diverse network of social services directed toward enhancing the health, safety, and overall well being of low and moderate income residents and persons with special needs. The City of Miami Commission recognizes the extreme need to supplement social service programs intended for City of Miami residents and has established the following priorities to meet basic needs with the limited City funds available for public services. The priority established for disbursement of funds is reflective of the needs identified by the community at public hearings, for example; elderly services, youths services, services for the disabled, childcare, job training, programs for substance addicts, and ex -offender rehabilitation. Nevertheless, the Department of Community Development must exercise a rigorous competitive Request for Proposal (RFP) process to ensure that only the most qualified and committed organizations receive CDBG public service dollars, due to the limited amount funding available attributed to the 15 percent public service cap. The public services included are limited to HUD compliance regulations. (24 CFR 570 Sec. 201 (e) and 207) Description of Activities Elderly Services: One of the fastest growing segments of the City of Miami's population is seniors. The Department of Community Development is responsible for the design and implementation of programs that assist seniors and the frail elderly in providing a variety of benefits. In general, service needs of the elderly include adult nutritional services, home services (medical), transportation, mental health, protective services, day care, basic needs life skills, and health information. The City is conscious of the needs of this segment of the population ghat has been impacted with the advent of welfare reform. Thus, anticipated changes in managed care may dramatically curtail senior citizens household income. As a result, the agencies awarded funding are organizations that recognize the needs of the local neighborhoods. Additional needs for the elderly include: • Affordable housing for seniors. • Maintain long term care and support for aging families. • Support transportation activities. Youth Services: The expansion of youth activities and programs will continue to be needed to help divert energy from delinquent behavior to positive directions. It is eminent that due to an increase in single -parent homes many children spend a significant amount of time without adult supervision. As such, these children need supervised recreational activities and social services in an effort to keep them occupied while simultaneously • 138 securing their safety. Furthermore, a wide range of youth services and facilities is supported through CDBG funding The Department of Community Development will secure special recognition in the Request for Proposal (RFP) process, to youth activities conducted on City Parks. Moreover, the department will seek to provide funding to entities inclined towards youth enrichment activities, such as; health and fitness programs; educational tutoring/counseling; after -school activities; youth mentoring training; character development services; cultural and historical services; anti -gang outreach; advocacy for abuse; and neglected children; music and art education. Childcare/Head start: Research demonstrates that early childhood is one of the most critical stages of development, one which can define a child's likelihood of success over time. The main objective is to foster and improve the "quality of life" of disadvantaged children including their families by providing superior childcare and social supportive services. Lack of inadequate nutrition, physical, mental, and emotional stimulation can significantly affect childhood outcomes. Conununity Development is committed to providing financial backing to childcare service providers sustaining quality childcare activities to low and moderate income families. The City will assist in meeting the demand for comprehensive programs that meet the educational, social, health, dental, nutritional, and psychological needs of children living in poverty. The City strives to develop into a place desirable for families to live and raise their children; while simultaneously preparing them into a successful transition to adulthood; supporting the environment throughout their development. Consequently, childcare assistance subsidies allow low-income families to enter the workforce. Childcare is a vital component for those attempting to take steps towards self sufficiency. As such, childcare subsidies are made available to low income working groups so that the cost of day care does not serves as barrier in families striving to increase their earning potential through employment. Head start programs target low-income preschool age children and their families. The main objective sought through funding is to counter the social and educational disadvantages of toddlers living in poverty. Disabled Services: Community Development will continue to support and advocate on behalf of persons with disabilities through the provision of funding to programs that promote quality services, uphold dignity, independence, and health awareness. Furthermore, Community Development promotes and secures the rights of the disabled population by demanding compliance with the "Americans with Disabilities Act of 1990" (ADA) in all of its existing funded programs. The ftmding priority for allocation of CDBG dollars focuses in providing financial support, to agencies that serve low to moderate income economically disadvantage individuals. One of the main problems impacting the disabled population is attributed to inadequate income levels. This segment of the population with the inclusion of the elderly is living at or near the poverty level. Therefore, it has been deemed as "vital" for agencies to provide services responsive to the needs of the disabled. The disabled population is in need of support services, nutritional meals, educational assistance, care giver support services, special transportation, in -home services, mental health, legal intervention/referrals, and outreach services. Job Training: In general job training is not an easy task, as area employers are concerned in securing job applicants who posses basic educational skills. This concern arises based on the fact that today's applicants do not meet the job requirements set -forth by employers. This paints a bleak picture and starkly outlines the challenges presented to those who provide job training and service programs. The City aims to address this phenomenon by securing funding to agencies that offer 139 employment training and life skills to low to moderate income citizens. The challenge is to provide job training assistance to the underemployed subgroup of the local community. Organizations receiving CDBG dollars are required to streamline services towards employability skills that expand and enhance employable proficiency. I.illk tom» The economic development five-year initiative will integrate job creation, micro enterprise assistance, technical assistance, Commercial/industrial improvements and assistance to private for profit entities, within the identified Commercial Business Corridors (CBCs). The distribution of CDBG funds for economic development activities will be divided among the Five Commission Districts based on the HUD formula allocation. It has been noted that Economic development and Urban renewal are some of the battles in the war against poverty that must be subjugated in order proclaim victory. As a result, the funding priority for economic development activities will be awarded to the CBCs. The City aims at reducing the number of poverty level families by supporting human development and employment programs that facilitate the creation and retention of job opportunities. This will be accomplished by developing business attraction and retention programs which will result in the expansion of the economic corridors. Description of Activities Job creation and retention: Provides the stabilization and expansion of small businesses in areas stricken by economic disadvantages. This section of economic development may be interpreted very broadly by presumably including all endeavors aimed at sustaining or increasing the level of business activity. The primary focus is directed at the provision of jobs involved in carrying out activities under programs covered by this plan to low and moderate income persons. An activity claiming job creation must comply with the regulations set -forth by HUD. The entity seeking credit for job creation must be able to verify that at least 51 percent of the jobs identified by an activity are held by lower income people or it must be able to verify that at least 51 percent of the jobs will be available for lower income people. Pertinent documentation for each distinct scenario must be secured for compliance monitoring purposes, as identified in 24 CFR 570 Sec. 203 and 208. Conversely, when an activity secures credit for job retention proclaiming salvage of jobs held by lower income persons, it must provide evidence that the jobs held by lower income people would have been lost without the assistance of CDBG funds. Primarily the entity must justify how the assistance meets the national objective of benefiting lower income people. Consequently the business must execute a written agreement that contains a promise by the business that at least 51 percent of the retained jobs will be available to lower income citizens. Micro -enterprises Assistance: This is defined in the regulations as a business that has five or fewer employees; and at least one of those employees is the owner. Job growth and expansion occurs in small businesses. It is eminent that in the past few years large firms have downsized while small firms have grown. Therefore, the Department of Community Development will channel funding to small businesses with the intent to restore economic soundness in neighborhoods economically distressed. The majority of micro -enterprises are in need of working capital. The assistance provided can be in the form of credit, technical assistance, loan guarantees, financial support, and general support. Under this category funds may be used to provide services of any kind that are needed by the owner for the expansion of the business. The overall mission is to assist small businesses to grow. In addition, services provided do not count against the 15 percent public service cap. (24 CFR 570 Sec. 201) 140 Technical Assistance: CDBG assistance can be used to pay for technical assistance to build the capacity of nonprofits to carry out eligible neighborhood revitalization or economic development projects. In order to make use of available funds under this category the grantee must determine, prior to providing assistance, the eligibility of the activity for which the capacity is to be built and that such activity meets a national objective. The subsequent factors must be evaluated to determine, if a national objective will be met; the nature of the organization receiving the assistance; the type and eligibility of the activity to be carried out; the location of the activity; and clientele expected to be served. For instance, the assistance may be in the form of training to a nonprofit organization to help improve its abilities to conduct work write-ups. Other forms of assistance could be loan underwriting, rehab loan program and capacity building. (24 CFR 570.201 (p)) Commercial or Industrial improvements (rehabilitation): Community Development provides funding under rehabilitation for a commercial facade treatment program. CDBG funds may be used to finance the cost of rehabilitation for commercial and industrial improvements where such property is owned by a for profit entity. The facade treatment program deems the following, as eligible projects; pressure cleaning, painting, awnings, doors, store showcase windows, signs and shutters, fences, resurfacing of parking lots and parking lot infrastructure. If a business is classified as for -profit the facade is limited to the outside of the building. The primary objective of the program is to provide assistance to business owners attempting to rectify code compliance violations. (24 CFR 570,202 (a) (3)) Code Compliance: This program consists of residential and commercial components. The program is designed to alleviate economic strain on low income business owners in violation of city codes. Without the implementation of this program small business owners will be severely impacted by the financial expenditures spent in correcting the code violations. The commercial component is designed to provide financial assistance to eligible businesses in violation of codes. The business must have a violation notice as a pre -requisite for assistance. The conditions that qualify for assistance are electrical, building, fire, plumbing, mechanical and ADA compliance. Special Economic Development Activities: CDBG assistance can be utilized to assist private for -profits businesses when the assistance is deemed appropriate or in observance with the regulations under 24 CFR 570.203 (a). The assistance must be classified as appropriate in order to assess the degree to which the public benefits from the aid to a business. The assistance may be in the form of grants, loans, loan guarantees, interest supplements, and technical assistance. Other ,Community Development Activities Infrastructure: Community Development allocates funds under this category to improve the safety and livability of targeted revitalization areas and secure economic development growth :.incentives by upgrading, replacing or developing necessary infrastructure systems, in response to the priority needs of distinct neighborhood areas. The repairs further the needs and requirements of the economic development areas identified in the CBCs. The goal is geared at stimulating private investment in distressed economic development areas through the improvement or renovation of streets, sidewalks, flood drains, water system upgrades, flood drains and solid waste disposal sites. The assistance can be provided to community facilities, such as; senior centers, youth centers, parks, and childcare facilities. Infrastructure improvements will sprout quality of life enhancements through the elimination of deteriorating conditions, in conjunction with the facilitation of economic development opportunities. The funded projects or activities must take place in low to moderate income neighborhoods. Historic Preservation: The National Historic Preservation Act of 1966 directs federal agencies to take into account the effects of their undertakings on historic properties. The regulations are mandated under Section 106 (36 CFR 800). Furthermore, this implies that public or 141 private places can be 'rehabbed if they artligible to be on the national list of Historic Places or are officially recognized by state or local law, as such. This category also authorizes the costs of preserving or restoring properties of historic significance, whether publicly or privately owned. The following are potentially eligible categories for CDBG assistance under historic preservation: 1) events significant in the broad patterns of our history; persons significant in our past; distinctive characteristics of type, period, method of construction, or the work of a master, or possessing high artistic values; yielding information important to history of prehistory. (24 CFR 570.202 (d)) Administration and Planning: CDBG and HOME funds are allowed to cover general and reasonable costs related to the planning and execution of community development activities, assisted in whole or partially. These costs are not directly related to providing a specific activity. Program administration includes items such as overall management, coordination, monitoring, and evaluation of the jurisdictions programs. Some of the tasks affiliated with program administration are preparing budgets, performance reports, and staff salaries. The use of program administration has a monetary cap responsive to distinctive grants. The following are the cap limitations set -forth for the subsequent categories: the cap limitation for CDBG funds states that no more than 20 percent of grant funds plus program income may be used for planning and administration; the cap limitations for the HOME program funds states that nor more than 10 percent of grant funds plus program income may be used for administration costs. (24 CFR 570.206 (a) (1)) (24 CFR 92.207HOME) Section 108 Loan; This is a very technical aspect of CDBG but very practical if put into practice accordingly. Section 108 loan is an extension of the CDBG program it involves the pledging up to five years of a community's entire CDBG entitlement as backup collateral for a loan. In other words, if something goes wrong with the project financed with a loan guaranteed by Section 108, then CDBG money must be used to pay off the obligation. Section 108 loans serve as the following: a tool to accelerate current CDBG activities; an opportunity to match sources; a means of providing long-term fixed rate financing; and a tool to receive funds without obligating general tax funds. The loan terms may last up to twenty (20) years. Some of the eligible activities under a 108 loan include but not limited to acquisition for economic development activities, acquisition, rehabilitation of real property owned or acquired by a public entity, clearance, demolition, site preparation for construction or reconstruction of public site improvements, and housing rehab and preservation. (24 CFR 570.703 & 705) 142 XV. Non -Housing Strategies Priorities and Outcomes for Community Development Programs It is the intent of the Department of Community Development to pursue the US Department of Housing and Urban Development's (HUD) National Objectives through the implementation of a strategic plan consistent with the code of federal regulations. The plan will identify priorities and specific targeted outcomes to carry out its housing and community development programs. The plan is also an offspring of the anti -poverty strategy responsive to the needs of the community, Mayor's objectives, and specific program activities. Ip Public Service Recommendations: Enhancing quality of life • Allocate the maximum allowable 15 percent to public service programs. • Provide reimbursement for public service activities per unit of service rate. • Provide payments to childcare providers based on the maximum daily reimbursement rates established by Miami -Dade County for the City of Miami service area. • Provide reimbursement to agencies providing elderly meals based on established program delivery cost per unit of service. • Leverage Community Development Block Grants (CDBG) public service allocations to insure maximum use of available funds such as the transportation fund and Prioritize capital improvement funds to projects located in the Community Revitalization Districts. • Provide letters of support to community based organizations seeking outside funding. • Recognize quality of life enhancements needs in developing the City's Legislative Agenda. • Actively and aggressively research grants sources to enhance program delivery. • Co-sponsor social service grants with Community Based Organizations and Award bonus points to agencies proposing to operate programs in City Parks. • Pursue the implementation of Neighborhood Revitalization Strategy Areas. • Focus funding priority within the established Model Blocks. r. 143 Economic Development'Recommendatibns: Expanding economic development activities ■ Job Creation through expanding the City's economic base and promoted greater employment opportunities, for extremely low, low, and moderate income persons. ■ Provide financial assistance to the City of Miami Public Works Department and the Department of Capital Improvement Projects. • Attract and retain businesses that provide jobs with good wages and desirable conditions to local residents. Continued support of existing micro -enterprise businesses located within Commercial Development Corridors (CBCs). Recruit firms in expanding target areas (CBCs) that offer entry level jobs to local area residents. • Work with the Department of Off -Street Parking to meet the parking requirements of the area, including the acquisition of property to be used for parking. • Continued support of the Facade Program, to provide large scale renovations along strategic CRCs with emphasis on correcting code violations to upgrade storefronts resolve code violations and purchase equipment for business located in the CBCs. • Advocate the promotion of public transportation as a legislative priority to access to job centers located outside of the City. • Provide technical assistance on as needed basis and per -hour rate, to businesses located in the CBCs and areas deemed eligible for economic development activities. ■ Support the existing right-of-way improvements plan along the CRCs. • Support Micro -business loans programs which provide small direct loans to start up minority and women owned businesses contingent upon the presentation of a cogent business plan. The City of Miami's anti -poverty strategy focuses on partnerships, linkages, and coordination between the City, County, non -profits, for -profits, State, Social Services Agencies, Urban Planning, private sector agencies, public safety and Federal agencies. One of the goals is to build community capacity to monitor and improve community health and related social services (to include housing and public safety) through community involvement. The Department of Community Development proposes to build and maintain an ongoing community profile using key community indicators to guide community planning in the areas of housing, public service and.economic development. The priority for ranking needs established for the Consolidated Plan uses three ratings; high, medium, or low. A high priority indicates a need for funding and will be supported in the Five -Year period. Next, a medium priority indicates that if funds are available the existing need may be funded. Consequently, a low priority rating signifies that such activity will not receive funding. Although the City will consider certifications of consistency for agencies seeking other means of Federal assistance. City of Miami Consolidated Plan DRAFT 144 ' Residents and organizations communicated their thoughts, concerns, aspirations and ideas through public hearings and roundtable discussions with a diverse array of impacted individuals. In addition, the Department of Community Development seeks to revitalize inner City areas while promoting economic development and citizen involvement as means to empower disfranchised persons and sustain diversity. The Key Strategies include: • Provide opportunities for low-income persons to accumulate assets through homeownership and economic development. • Coordinate support services for persons with special needs. • Support training and education that leads to self sufficiency and healthy families. • Enhance quality of life for disadvantaged working families endorsing financial literacy. A coordinate effort will be designed to integrate social services and housing activities for households living below the poverty line. Integrating social services and housing activities will stabilize the business development zones. Thus, creating a triangle effect of mixed services aimed at combating poverty. In addition to housing needs, the need for improved public services was among the highest priorities identified through the public involvement process. Elderly service programs, disabled services, youth services, childcare and head -start programs, substance abuse programs and employment training programs were all emphasized repeatedly at the public hearings. As a result, the ability of the Department of Community Development to provide quality public services in accessible means to the community is essential to the neighborhood viability. The role of the Department of Community Development is important in providing public services functioning as a facilitator in partnership with numerous local organizations to deliver services. Various organizations on the "front line" have assisted in determining priority needs and programs for the planning period. Their input through the means of public hearings and agency surveys has been invaluable in defining the extent of the problems impacting local neighborhoods and in developing solutions. PRIORITY 1PS: Elderly Services Activity 1PS (a): Nutritional Services (elderly meals) Strategy 1PS (a): To support agencies providing nutritional services and activities to low and moderate income senior citizens, in manner where health, dignity, and nutritional needs are excelled. Targeted Outcome 1PS (a): Increase the quality of health for elderly citizens through the reduction of malnourishment. Source: CDBG and Transportation Funds Activity 1 PS (b): Support Groups Recreational Activities 145 Strategy 1 PS (b): To reduce isolation of income groups through de -concentration of housing for lower income elderly persons. Targeted Outcome 1 PS (b): Reduce isolation and deprivation of elderly citizens by promoting quality of life enhancements in a supervised setting. Source: CDBG Activity 1 PS ( c ): Transportation Services Strategy 1 PS ( c ): To link elderly persons in need of support services to essential community resources. Target Outcome 1 PS ( c ): Provide elderly residents in destitute with available community resources which fulfill social and monetary gaps in the continuum of care. Source: CDBG 1.= ORITX 2 PS: Disabled Services Activity 2 PS (a): Fund programs responsive to the special needs of the disabled/handicapped. Strategy 2 PS (a): Amplify the supply of supportive and transitional services required to enable persons with special needs to live with dignity and independence Targeted Outcome 2 PS (a): Promote a stable and economically sound environment coupled with a healthy supportive system through the provision of compassionate services, Source: CDBG PRIORITY3PS: Youth Services Activity 3 PS (a): Sustain a variety of programs supporting recreational activities, tutoring, arts, counseling, and mentoring. (Preference given to activities executed on City Parks) Strategy 3 PS (a): Sponsor programs that assist in the various stages of child development such as physical, mental, social, nutritional and emotional development. Targeted Outcome 3 PS (a): Prepare children and youth to transition into successful adults. Source: CDBG PRIORITY4PS: Childcare and Head -start Activity 4 PS (a): Provide funding to childcare service providers. City of Miami Consolidated Plan DRAFT 146 Strategy 4 PS (a): Assist low income families and poverty stricken children by supporting childcare facilities that offer quality childcare services and promote a safe environment, while simultaneously enabling low to moderate income parents to join the workforce. Targeted Outcome 4 PS (a): Endow a suitable living environment to low income children and families that helps to meet both quality of health and sustains economic self- sufficiency. Source: CDBG Substance Abuse Services Activity 5 PS (a): Recommend funding through a competitive RPP process for agencies operating substance abuse programs located within districts identifying this need as a district priority and to include districts open to all facets of public service. Strategy 5 PS (a): To support programs designed to reduce drug and alcohol dependency in selected neighborhoods by allocating funds to Districts identifying this priority in the local public hearings, as part of the Citizen Participation process. Targeted Outcome 5 PS (a): Provide a supportive network, structure and environment that will assist individuals in remaining drug -free and alcohol dependent. Source: CDBG PRIORITY6PS: Employment Training Activity 6 PS (a): Allocate funds to agencies providing an array of job skills training programs. Strategy 6 PS (a): Assist economically disadvantage individuals and others who face barriers to employment enhance quality of life through the attainment of marketable labor skills or by improving their earning capacity. Targeted Outcome 6 PS (a): To prepare youth and unskilled adults for entry into the labor force. Source:+CDBG Economic Development The Department of Community Development strives to enhance and increase economic opportunities for City residents through support of programs and activities that help low and 147 moderate income persons attain employment in conjunction to facilitating small business development. The primary focus is to promote long-term economic viability and by doing so to expand the business development corridors. This will be accomplished by developing business attraction and retention programs that will expand the economic base. The City will take a proactive approach to business retention and attraction by developing and maintaining working partnerships with local lenders, local investors, developers, local government entities, chamber of commerce, and other agencies interested in business growth and development. Job Creation Activity 1 ED (a): Continue support to organizations creating job opportunities for low and moderate income people. Strategy 1 ED (a): Support economic development designed to create job opportunities while simultaneously supporting business expansion and recruitment; to include funding priorities directed at the commercial business corridors. Targeted Outcome 1 ED (a): Create employment opportunities in financially distressed neighborhoods while promoting job creation in the business development corridors, to include areas within the vicinity of the corridors as well. Source: CDBG PRIORITY2 ED: Job Retention Activity 2 ED (a): Secure assistance to local businesses experiencing economic hardships and such assistance will retain jobs held by low and moderate income individuals. Strategy 2 ED (a): To promote the long term viability of the local area residents expanding economic opportunities for extremely low, low and moderate income persons. Targeted Outcome 2 ED (a): Develop business attraction and retention programs within the business development corridors creating a chain reaction that will sprout economic development activities for low and moderate income residents. Source: CDBG PRIORITY 3 ED: Micro -enterprise Activity 3 ED (a): Assist small business enterprises in targeted industry sectors. Strategy 3 ED (a): Support small businesses and entrepreneurship development through the provision of working capital, loan guarantees, and financial support to continue emphasis on the delivery of strategic technical assistance and business modernization services which raise firm productivity and help companies align entry level jobs. Targeted Outcome 3 ED (a): Improve the financial growing potential of small business firms in targeted business corridors that will increase the demand for labor and create living wage jobs. City of Miami Consolidated Plan DRAFT 148 Source: CDBG Technical Assistance Activity 4 ED (a): Assist start up businesses in securing financial stability and sound business practices. Strategy 4 ED (a): Offer technical assistance to start up businesses structured upon the successes of the organization in an effort to safeguard the company's future investment building a network of private and public investors. Targeted Outcome 4 ED (a): Secure small business incubators, loans that provide inexpensive manufacturing space to include support services, managerial advice and consulting services for business activities that benefit low and moderate income persons. Source: CDBG PRIORITY 4ED; Commercial and Industrial Improvement Activity 4 ED (a): Support the facade improvement program through code compliance thereby creating more attractive, productive, and a safe business environment for customers and business owners. Strategy 4 ED (a): Execute facade improvements along business development corridors where there is a prospect of serious business investment dividing the cost with business owners. Targeted Outcome 4 ED (a): The improvement of street trees, landscaping, sidewalk replacement, awnings, signs, lighting and other exterior facade improvements. Source: CDBG PRIORITY 5 ED: Code Compliance Activity 5 ED (a): Allocate funding to the code enforcement department. Strategy 5 ED (a): To support the use of coordinated enforcement of building and zoning codes in order to ensure the safety and health of low and moderate income residents. Targeted Outcome 5 ED (a): Improved safety and appearance of commercial corridors and neighborhoods. Source: CDBG Historic Pr o8ervaatlon Preserving the historic resources of the City of Miami is essential because of its importance to the City's common history and community pride. The City will work with the structures it has inherited in the course of historical transformation. The mission is to properly restore historic `r. 149 sites by reversing the cycle of decay through reconstruction and rehabilitation of the identified monument. Historic Preservation Activity 1 HP (a): Provide funding of special projects directed toward the rehabilitation, preservation, and restoration of historic properties. Strategy 1 HP (a): Encourage and support the restoration and preservation of sites and structures that have historical significance when such restoration activities comply with CDBG program national objectives. Targeted Outcome 1 HP (a): Meeting the needs of the City's historic sites on a case by case basis as the needs arise during the time frame of the Consolidated Plan. Source: CDBG Public Facilities and Park improvements The main objective is to provide assistance for public facilities and parks to improve the health and welfare of revitalization neighborhoods and augment the availability of local services to low and moderate income persons. Public facilities are the primary vehicle for neighborhood services delivery. It is essential to the long term stability of City neighborhoods that these facilities continue operating and providing services to residents. The assistance will be directed towards neighborhood facilities, child care centers, parks and recreation facilities, health facilities, and parking facilities, where activities benefit low and moderate income citizens. Consequently the City's parks and recreation facilities are in need of repair. The need to repair and maintain them is critical. Revitalization of City parks is an important aspect of community development. These facilities are a safe haven for many city youth. The restoration and rehabilitation of parks is a key component in the recruitment of non-profit organizations to conduct business on city parks. PRIORITYIPP: Public Facilities and Park Improvements Activity 1PP (a): Provide funding for the acquisition, construction, reconstruction or installation of eligible public facilities in response to the specific priority facility needs of varying communities. Strategy 1 PP (a): Achieve identified projects for quality public facilities which are responsive to the unique character and differing needs of individual neighborhoods, taking into consideration the needs of low and moderate income community members. Targeted Outcome 1 PP (a): Improve the health and welfare of target neighborhoods through the revitalization of public facilities and parks open to the general public. Source: CDBG • City of Miami Consolidated Plan DRAFT 150 montrieeds The City will ensure that targeted revitalization areas are adequately served and well- preserved. Community development studies have demonstrated a need to replace deteriorated streets, curbs, sidewalks, lights, and community facilities. The Department of Community Development will contribute CDBG dollars in eligible projects and neighborhoods, to address such conditions. Nevertheless, due to insufficient funds in other City departments committed to such improvements, the Department of Community Development will allocate funding to those projects and neighborhoods deemed as CDBG compatible and as opportunities arise on a case -by -case basis throughout the life of this plan. PRIORITY 1 IF: Infrastructure Activity 1 IF (a): Ensure that CDBG target areas are adequately restored and preserved to current City standards. Strategy 1 IF (a): Provide, to the greatest extent possible all necessary public infrastructures to support the development of lower -income neighborhoods. Targeted Outcome 1 IF (a): Create safe, attractive and accessible neighborhoods through the stimulation of economic growth and infrastructure improvement. Source: CDBG Non -Community Development Objectives Objective 1: Administration and Planning Strategy: To sustain and improve grant management activities to ensure effective use of grant investments. Funding in this area will be used to efficiently and effectively monitor the use of CDBG grant funding and explore new and innovative ways of using and leveraging federal resources. CDBG funds will be managed in compliance with federal regulations and in the best interest of the low income population. Consequently the City will professionally manage all entitlement HUD grant funds in accordance with all applicable federal regulations. 151 XVI. Monitoring Tracking Performance and Creating Accountability K�. YAW The Community Development Director, Assistant Director and Program Managers oversee the planning process and budgeting process to ensure that projects are developed consistent with grant requirements. This planning process also ensures that each funded project is consistent with the Consolidated Plan and makes progress toward identified community development objectives. The aforementioned staff members make certain that projects are being completed in a timely manner and that the expenditure deadlines for various grants are being met. CDBG- Sub -recipient Contracts For sub -recipient contracts, the Contract Compliance Analysts approves the scope of service. As a result, the contract analyst engages in contract negotiations consistent with HUD regulations and with the priority needs identified in the Consolidated Plan. This process will ensure compliance with applicable laws and HUD guidelines. Then, the plan is reviewed by the program manager who makes sure conformity is exercised and that the plan coincides with program directives. Finally, the City Law Department prepares a contract consistent with applicable laws and guiding principles. Upon, the Law Department endorsing the contract for execution of services the agency will commence program operations. The agency will then forward expenditures for reimbursement to the Fiscal Department. The Fiscal Assistants will process payments and review the information rendered for eligibility, compliance, and reasonableness with the scope of service. Once a payment reimbursement has been processed by the Finance Department, it is given to the Assistant Director for final approval. The Contract Compliance Analyst also administers implementation of the funded request for proposal, to secure that the work is carried out in accordance with the guidelines stipulated in the contract. The forthcoming sub -recipient agencies will be monitored at a minimum of once per year for compliance with administrative, financial, and internal control guidelines. The targeted goal for compliance monitoring will be twice per year for every agency. Each agency with significant findings on such a monitoring will be typically monitored, on a more frequent basis in the future. All recipient agencies must provide periodic reports which describe the activities carried out and identifying the beneficiaries for the project. Moreover, the agencies must also submit performance and reimbursement reports on a monthly basis. These reports help to identify and ensure that minority outreach is occurring in conformity with HUD's program objectives. City of Miami Consolidated Plan DRAFT 152 For projects carried out with the use of HOME funds Contract Compliance Analysts are assigned to monitor the progress of each project and submit invoices for payment. All payment requests for HOME construction projects will be cleared and verified by City of Miami Inspectors. The inspectors will assume responsibility for inspecting construction projects prior to authorization of payment. Payments for reimbursement are reviewed and approved by the Fiscal Assistants, whom obtain the final approval from the Finance Assistant Director. This operation protocol preserves a checks and balance system that minimizes overpayment and promotes sound fiscal management practices. In addition, the Contract Analyst assures that all prerequisites have been finalized, as it concerns environmental reviews, Section 3 compliance, and Davis -Bacon monitoring in an attempt to coincide with Federal Regulations. Consequently, all pertinent documentation will be in accordance with Federal Mandates prior to submission for reimbursement and payment. The Department of Community Development will implement and outcome -based Consolidated Plan. The goal of this initiative is to increase the focus, accountability, impact, and ease of monitoring funded projects. Funds expended through the fiscal years will be tied to performance benchmarks. A forma monitoring strategy will de developed to evaluate the viability, reliability and impact of funded projects. The decision to provide continuing funding for an organization should be shaped, in large part, upon review of their success in meeting established outcomes. The City understands that all efforts using Federal, State and Local resources must be in accordance with established laws, regulations, and sound management accounting practices. All programs awarded Federal monies will be monitored and reported according to the program statutory and regulatory rules of those programs. Affordable housing programs will be monitored on an ongoing basis by contract compliance analysts. CD will establish a sub -recipient monitoring plan at a minimum establishing the submission of periodic reports and audited financial statements. A description of the standards and procedures that the City will use to monitor activities carried out in furtherance of the plan and will ensure long term compliance with requirements of the programs involved including minority business outreach. The objectives of CD's monitoring system are: • To minimize the City's liability by identifying and correcting major program deficiencies before resulting in financial payment or funding sanctions. • To conduct production monitoring as part of ah overall process: • To conduct quality control and compliance monitoring, by assessing the quality of the process and product delivery. CD will continue to comply with HUD's requirements by preparing the following documents: • Five Year Consolidated Plan • Annual Action Plan • Consolidated Annual Performance and Evaluation Report City of Miami Consolidated Plan DRAFT 153 Damolgon prey This section provides a brief overview of Davis -Bacon Streamlining and Labor Standards Administration and Enforcement Objectives: • Apply Federal labor standards properly. Make certain that labor standards, including Davis -Bacon prevailing wage rates, are applied where required. Ensure that any exemptions or exclusions are identified. • Through education and advice, support contractor compliance withlabor standards. Provide basic training and technical support to contractors to ensure that they understand their obligations under prevailing wage and reporting requirements. • Monitor contractor performance. Perform reviews of payroll submissions and other information to help ensure contractor compliance with labor standards provisions and the payment of prevailing wages to workers. • Investigate probable violations and complaints of underpayment. Thoroughly explore any evidence of violations, especially allegations of underpayment. • Pursue debarment against repeat labor standards violators. HUD will not tolerate contractors who violate the law. The Davis -Bacon Act (DBA). The Davis -Bacon Act requires the payment of prevailing wage rates (which are determined by the U.S. Department of Labor) to all laborers and mechanics on Federal construction projects in excess of $2,000. Construction includes alteration and/or repair, including painting and decorating, of public buildings or public works. As stated a prevailing wage must be paid to laborers when federal funds are used to pay labor costs for any project over $2,000 or any multi -family project over eight units. The prevailing wage is usually higher than competitive wages, raising the cost of housing production and rehabilitation activities. Davis -Bacon requires extensive paperwork that adds to housing costs by requiring documentation of the prevailing wages for compliance with labor monitoring requirement. Additionally, federal paperwork requirements are extensive, which increase housing costs. While the objective of the prevailing wage requirements is to protect workers from being paid less than their labor is worth, the increased cost results in higher housing construction expenses. These requirements often restrict participation by small, minority contractors. Conversely, many of the workers hired for such projects are better paid attributed to Davis -Bacon requirements. This is vital for low income limited skilled workers who are intended to be the beneficiaries of this federal law. The City of Miami will continue to enforce Davis -Bacon compliance to the greatest extent practicable. Section 3 In compliance with the Code of Federal Regulations 24 CFR 135, recipients and covered contractors must demonstrated compliance with the "greatest extent feasible" requirement of Section 3 by meeting the goals set forth for providing training, employment and contracting opportunities to section 3 residents and section 3 business sectors. Under Section 3 of the Housing and Urban Development Act of 1968, wherever HUD financial assistance is give for housing or community development, to the greatest extent feasible, economic opportunities will be given to residents and businesses in that area. The -�,. - City of Miami Consolidated Plan DRAFT 154 assistance may be in the form of job training, employment or contracts. The Housing and Urban Development Act was amended by Congress in 1994 to help give citizens deprived of economic activity increased access to employment and job training. The Section 3 Act requires recipients of HUD funds and the contractors they employ to ensure that the economic opportunities generated by the expenditures go to benefit low-income persons "To the greatest extent feasible". The City of Miami will continue to enforce Section 3 compliance in all applicable programmatic requirements. r, The environmental review process for entitlement jurisdictions is outlined in the Code of Federal Regulations 24 CFR 58. The procedures outlined in this regulation are used by entities that assume HUD's environmental review responsibilities in determining program compliance with the intent of satisfying the National Environmental Policy Act (NEPA). Jurisdictions must assume this responsibility in all applicable federal programs through a system of enforced rules and policies. CD maintains an effective system of communication with HUD to sustain departmental regulatory compliance. The City endows compliance monitoring by adhering to the following categories: • Exempt • Categorically Excluded ➢ Not Subject to 58.5 ➢ Subject to 58.5 • Environmental Review Assessment The City's Environmental Review Process is explained in detail the subsequent flowchart. Conclusion This Consolidated Plan is a tool that serves as: • A compendium of information about the City. • A recent history of community issues and recommendations. • A look at the challenges that can be expected in the upcoming years. • An articulation of the City's priorities and initiatives. It is eminent that the Consolidated Plan is an attempt to describe what is needed to increase homeownership and improve economic development, quality of life, homeless continuum of care and the delivery of public services; to transform Miami into a better place to live, work, and visit. The Department of Community Development will pursue its activities and targeted outcomes to the greatest extent feasible in a collaborative planning process. Foremost the Consolidated Plan to an extent delivers a useful snapshot of where the City is today, and blue print for what the City's priorities should be for the next five years. City of Miami Consolidated Plan DRAFT 155 The work in this document was placed in draft. form, in the local library branches, City NET Office, public buildings, as well as on the internet, for public review and comments. For more information on the planning process, or to request additional copies of this report, please contact Axel Rizo at 305-416-2142. • City of Miami Consolidated Plan DRAFT 156