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HomeMy WebLinkAboutExhibit 1City of Miami: 4 Action Plan 31st Program Year Draft Community Development Fiscal Years: 2005-2006 DRAFT Table of Content I. INTRODUCTION 3 BACKGROUND 3 GOALS 4 II. GEOGRAPHIC DISTRIBUTION 6 COMMUNITY DEVELOPMENT TARGET AREAS 6 CDBG AND HOPWA TARGET AREAS 10 III. FUNDING RESOURCES 14 EXPECTED GRANT FUNDS AND OTHER INCOME 14 LEVERAGED FUNDS 17 IV. ANTI -POVERTY STRATEGY 18 USE OF FUNDS FOR FY 2005-2006 18 INSTITUTIONAL COORDINATION 19 V. ACTIVITIES TO BE UNDERTAKEN 20 HOUSING 20 FAIR HOUSING 23 PUBLIC SERVICES 24 ECONOMIC DEVELOPMENT 25 OTHER COMMUNITY DEVELOPMENT ACTIVITIES 26 VI. HOMELESS AND OTHER SPECIAL POPULATIONS 28 HOMELESS 28 CONTINUUM OF CARE FOR THE HOMELESS 28 OTHER SPECIAL NEEDS — ELDERLY 32 OTHER SPECIAL NEEDS -- PERSONS WITH HIV/AIDS 33 VII. OTHER ACTIONS 36 UNDERSERVED NEEDS 36 BARRIERS TO AFFORDABLE HOUSING 36 EVALUATE AND REDUCE LEAD -BASED PAINT HAZARDS 38 REDUCE THE NUMBER OF POVERTY -LEVEL FAMILIES 42 DEVELOP INSTITUTIONAL STRUCTURE 43 ENHANCE STAKEHOLDER COORDINATION 43 PUBLIC Housir[G (91.220 (F) (2)) 44 VIII. CDBG 46 REDUCTION OF CDBG FUNDS 46 COMMUNITY DEVELOPMENT STRATEGY 47 HOUSING 48 PUBIC SERVICE DELIVERY 50 ECONOMIC DEVELOPMENT 53 PUBLIC FACILITIES AND PARK IMPROVEMENTS 55 HISTORIC PRESERVATION 56 INFRASTRUCTURE 56 OTHER COMMUNITY DEVELOPMENT NEEDS 57 IX. HOME 58 2005-2006 Action Plan AFFORDABLE HOUSING STRATEGY 59 HOMEOWNERSHIP NEW CONSTRUCTION PROGRAM 60 FIRST TIME HOMEBUYER ASSISTANCE PROGRAM 61 MULTIFAMILY RENTAL HOUSING NEW CONSTRUCTION PROGRAM 62 COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDOS) 64 I TOME ACTIVITIES 65 X. AMERICAN DREAM DOWNPAYMENT INITIATIVE (ADDI) 67 ADDI FUNDS AND HOME 67 ADDI - ELIGIBLE ACTIVITIES 24 CFR 92.602 68 LOCAL USE OF ADDI FUNDS AND OUTREACH 69 ADDI ELIGIBILITY REQUIREMENTS 69 MONITORING 71 XI. SECTION 3 72 PROGRAM DESCRIPTION (24 CFR 135) 72 X1I. SHIP 74 PROGRAM DESCRIPTION 74 SHIP SINGLE FAMILY REHAB AND CODE VIOLATION ELIMINATION PROGRAM 76 SHIP EMERGENCY HOME REPAIR ASSISTANCE PROGRAM 78 SINGLE FAMILY REPLACEMENT HOUSING PROGRAM 79 SHIP HOMEBUYERS FINANCING PROGRAM 81 SHIP HOMEOWNERSHIP DEVELOPMENT PROGRAM 82 SHIP ACTIVITIES $3 XIII. LOCAL AFFORDABLE HOUSING INCENTIVES FOR DEVELOPERS 85 DESCRIPTION OF LOCAL AFFORDABLE HOUSING INCENTIVES 85 XIV. MONITORING $7 OUTCOME -BASED COMMUNITY DEVELOPMENT 87 CDBG- SUB -RECIPIENT CONTRACTS 87 HOME- CONTRACT EXECUTION PRE -REQUISITES 87 XV. CITIZEN PARTICIPATION 91 TABLE 1A HOMELESS AND SPECIAL NEEDS POPULATION 96 TABLE 1B SPECIAL NEEDS SUBPOPULATIONS 98 TABLE 1C SUMMARY OF SPECIFIC HOMELESS/SPECIAL NEEDS OBJECTIVES 99 TABLE 2A PRIORITY NEEDS SUMMARY TABLE 101 TABLE 2B COMMUNITY DEVELOPMENT NEEDS 103 TABLE 2C SUMMARY OF HOUSING AND COMMUNITY DEVELOPMENT OBJECTIVES105 TABLE 3 CONSOLIDATED PLAN LISTING OF PROJECTS 110 ATTACHMENTS 1 1 1 2005-2006 Action Plan ii I. Introduction The City of Miami Department of Community Development prepares the Annual Action Plan as part of a collaborative process to establish a unified vision of community development objectives. The planning process creates the opportunity for strategic planning and citizen participation to mesh together in a comprehensive context. It aims to minimize duplication of effort at the local level. Furthermore, it provides a method to measure progress of the various program goals, specific objectives, and annual goals set by the Community Development Department. In the development of the annual strategic plan the department coordinates a series of public hearings at the local district level, to induce citizen participation to the greatest extent feasible. The total number of public hearings orchestrated is five, one per City Commission District. The meetings are designed to integrate the goals and priorities identified in the strategic planning section of the Five Year Consolidated Nan (2004-2009), with current community needs. Throughout this planning process the citizens, government officials/representatives, and the Community Development Department will developed a unified vision for the allocation funding priorities in the upcoming fiscal year (FY 2005-2006). As such, the Action Plan identifies how the funds from the U.S. Department of Housing and Urban Development (HUD) will be spent in the forth corning year, taking into account the regulations governing the funded activities. For that reason, the Action Plan is a statement of how the City and the Department of Community Development intend to allocate its HUD entitlement funds in the areas of housing and community development, satisfying funding initiatives that benefit low and moderate income individuals, Background As per the Code of Federal Regulations 24 CFR 91.220, all entitlement jurisdictions are required to submit an Annual Action Plan to U.S HUD, for the purpose of carrying out the Tong -term strategic plan. The Action Plan shows how the jurisdiction will spend its Community Planning and Development (CPD) dollars in the upcoming year in ways which bring the jurisdiction closer to the goals set in the 2004-2009 Consolidated Plan. The Action Plan must identify all resources that will be used to meet housing and community development needs in the upcoming program year (FY 2005-2006). In accordance with federal regulations, the plan must identify Federal resources (Sec. 91.215) and other resources (Sec. 91. I) it plans to make available for the respective fiscal year. The purpose of the plan is to provide current information on housing and community development needs, to identify relevant issues, and to outline housing and development policies to address existing and future problems. The Action Plan incorporates the overall goals and objectives of the Consolidated Plan. -The plan works to integrate economic, community, housing, and human development needs in a comprehensive and coordinated effort. As a result, the plan summarizes the major housing and community development needs in the City set -forth by low -to -moderate income households (citizens). The Action Plan constitutes an application for funds under four Community Planning and Development programs from the Department of Housing and Urban Development (HUD): Community Development 13lock Grant (CDBG) Home Investment Partnerships (HOME) Housing Opportunities for Persons with AIDS (HOPWA) Emergency Shelter Grant (ESG) 2005-2006 Action Plan 3 This document represents a new program year for the Department of Community Development. The primary planning tactic is to tie the regulations more closely to the specific objectives identified in the Consolidated Plan. Goals The goals of the City of Miami are the following: elimination of slums and blight; elimination of conditions that are detrimental to health, safety, community development, economic expansion, preservation and expansion of housing stock; and quality delivery of human services. The grant funds received by the City of Miami from the U.S. Department of Housing and Urban Development are designed to benefit very low, low and moderate -income persons and are intended to meet the following objectives: • To enhance quality housing opportunities by increasing the availability of permanent affordable housing for low-income residents, retaining the affordable housing stock and increasing supportive housing to enable persons with special needs to live in dignity. • To create quality of life enhancements that increase access to quality facilities and services, improve the safety and livability of neighborhoods, restore and preserve natural and physical features of special value for historic or architectural reasons and conserve energy resources. • To stimulate economic revitalization that will create jobs for low-income persons; provide access to credit for community development that promotes long-term economic and social viability; and empower economically disadvantaged persons to achieve self-sufficiency. • To revitalize the City of Miami's communities and integrate economic, physical, environmental, and community and human development needs in the process. The City of Miami must continue to submit an Action Plan to U.S. HUD to remain eligible for federal funds. Depicted in the Action Plan are the activities which will address the housing, economic, and community development needs of the Neighborhood Development Zones (NDZs), Commercial Business Corridors (CBCs), and Model Blocks. These are the designated target areas for community development within the City of Miami. The target areas were identified in the 2004-2009 Consolidated Plan. To select the target areas, the City revisited the present dynamics, demographics and environments of the City's distressed neighborhoods. The analysis revealed that pockets of poverty had expanded and that there was a special need to assist those communities that had experienced the most housing and economic challenges. The analysis also revealed the need to reduce the isolation of income groups in distressed communities by increasing housing opportunities for low and middle -income persons and revitalizing deteriorating neighborhoods through quality of life enhancements and economic revitalization. As a result of the analysis in the Consolidated Plan, the City of Miami created Neighborhood Development Zones that focus on the revitalization of target Model Blocks and Commercial Business Corridors, as well as Quality of Life Enhancements in each Commission District. The Model Block program is_patterned after a program recognized as a "Best Practice" by HUD. The primary focus of the Model Block concept is to concentrate investment in a geographically defined area in order to create a substantial, visible improvement within that community. The intent is to revitalize the Model Blocks by providing homeownership opportunities and expanded housing choice for low and moderate -income families, together with other physical, social and economic development activities. It is anticipated that these Model Blocks will serve as a foundation to restore commercial and housing reinvestment in the Neighborhood Development Zones, as new homeowners create a demand for neighborhood economic activities, such as grocery stores and other retail. In addition to the Model Blocks, the City of Miami has committed to assisting the businesses operating within the targeted Commercial Business Corridors by providing a wide variety of business services and assistance. Such services include loan applications, the review of business operating systems, development of business plans, marketing plans, budget analysis, accounting and risk management procedures, insurance and bonding procedures, inventory control, personnel management and customer relations. The City will also place a strong focus on the recruitment anew businesses. In addition, the City will improve the physical appearance of the Commercial Business Corridors by providing commercial facade improvement assistance and by investing in sidewalk repairs, 2005-2006 Action Plan 4 new signage, parking, and other infrastructure improvements. The City will also work to coordinate projects such as road improvements with the County. The key to encouraging housing and economic initiatives in distressed communities is to ensure the livability of the neighborhoods. The two major mandates to enhancing the quality of life in the Neighborhood Development Zones and the Model Flocks are access to quality facilities and services and a safe/livable environment. Quality of Life Enhancements focus on the following: • A well coordinated life sustaining and community building program • An effective community -based delivery system • The most cost-effective use of limited resources to support children and families, their economic success and their abilities to meet basic needs The proposed projects included in the Annual Action Plan closely support the goals and objectives of the Model Block concept, Commercial Business Corridors and Neighborhood Development Zones and incorporate the leveraging of other funding sources to maximize available resources. 2005-2006 Action Plan 5 II. Geographic Distribution 24 CFR 91.220 (d) Community Development Target Areas The City of Miami is a compact microcosm of economic, social, and ethnic diversity. Over 88% of its residents come from minority backgrounds, with 65% Hispanic and 20% Black. Economically, the City is one of great contrasts. Though it serves as one of the nation's leading centers for trade, banking and finance, it is considered the poorest city in the country. In addition to poverty, problems such as unemployment, substandard housing, and illiteracy are widespread. All of these dynamics create great challenges for the City. Given the scope and the severity of the problems found in Miami and the limited amount of resources available to address these problems, the City has developed a two tiered approach to community development which seeks to concentrate funding in target areas. The target areas consist of Neighborhood Development Zones (NDZs) and Model Blocks, with priority given to the Model Blocks. Neighborhood Development Zones: The NDZs represent the most distressed neighborhoods in the City of Miami. These areas have the greatest concentration of poverty, unemployment, and housing problems within the City. By focusing resources in the NDZs, the City seeks to bring about improvements that can create a notable impact in these communities over time. The goal of the City of Miami is to bring about neighborhood revitalization in the NDZs by identifying community assets and opportunities and providing comprehensive long-term investments in these areas. As such, the City is committed to the following; • Identifying Model Blocks within the NDZs where there are opportunities for redevelopment • Building community -based leadership • Establishing a community decision support infrastructure • Providing an inventory of the built environment and social assets in the NDZs • Creating a neighborhood -level plan for providing City services Model Blocks: The Model Block concept enables the City to advance the principles of the Neighborhood Development Zones by focusing resources in areas within the NDZs that are poised for revitalization. Model Blocks are small geographic areas within each NDZ with no more than 1,000 housing units. The goal is to concentrate resources for housing, public infrastructure, slum and blight removal in these small geographic areas in order to assure that there is a visible and measurable impact of change in the Neighborhood Development Zones that can stimulate change in surrounding blocks. Specifically, the City will seek to accomplish the following in the Model Blocks: • Create physical improvements through infrastructure improvements, streetscape improvements, code enforcement, and removal of slum and blight • Improve housing conditions by targeting rehabilitation and new construction assistance in the Model Block area • Stimulate economic development through facade improvements and other forms of targeted business assistance • Improve the living condition of residents in the Model Block by targeting social service assistance 2005-2006 Action Plan 6 Each NDZ has at least one Model Block. The exceptions are Model City and Overtown. These communities have two Model Blocks, The following is a list of the NDZs. The Map at the end of this chapter illustrates the locations of the Model Blocks within the NDZs, Neighborhood Development Zones (NDZs) ■ Allapattah ■ Coconut Grove ■ Edison/ Little River/Little Haiti ■ East Little Havana • West Little Havana • Model City • Overtown • Wynwood Community Business Corridors (CBCs); In addition to the Model Blocks, the City has also identified Community Business Corridors (CBCs) within each NDZ. The CBCs serve as target areas for economic development activities. Like the Model Block concept, the City seeks to concentrate resources for economic development, public infrastructure improvements and commercial rehabilitation in these business corridors in order to provide a visible improvement that can create incentives for private investment. Each Model Block is in close proximity to a commercial corridor. Below is a list of the CBCs in each of the Neighborhood Development Zones: • Allapattah NDZ 20'h Street Merchant Corridor Civic Center Corridor ■ Coconut Grove NDZ Grand Avenue Corridor Edison/ Little River/Little Haiti NDZ Little Haiti Corridor East Little Havana NDZ Flagler Street Corridor • Model City NDZ Model City Corridor Martin Luther King Corridor • Overtown NDZ Overtown NW 2"d Avenue Corridor Overtown NW 3rd Avenue Corridor • Wynwood NDZ Wynwood NW 2"d Avenue Corridor • Commission District 4 Flagler Street and Coral Way on a case -by -case basis and pending eligibility Profile of NDZs The following provides a brief profile of the NDZs, including information on demographics, household income and housing. This information can be used a baseline indicator to track change in the NDZs over time. 2005-2006 Action Plan 7 Demographics: Almost half (43%) of the City's youth live within the NDZs, Most are found in Little Havana and Edison/ Little River/Little Haiti. Approximately 28% of the City's elderly population also lives within the NDZs. The majority of these individuals reside in East Little Havana. These demographic indicators demonstrate the need to provide youth and elderly services within the NDZs. Education: It is estimated that 47.3% of the population in the City of Miami (25 years and over) do not have a high school diploma. Within the NDZs the number increases to 6I %. Wynwood, Allapattah and East Little Havana were found to have the highest percentage of individuals without a high school diploma, ranging from 74% in Wynwood to 64% in Allapattah, These figures indicate the critical lack of educational attainment among the residents of the NDZs. Table 1: Demographic Profile of the NDZs, 2000 Neighborhood Development Zone Allapattah Number of Children living in the NDZs 4,282 Population 65 and Over Living in the NDZs 2,598 % of Persons with No lligh School Diploma in Nl)Zs (25 years+) 64% % Female Ifeaded 1111 with children I8 and under in the Nl)Zs 13% Coconut Grove 643 37% 24% Edison/Little River/Little Haiti 9,306 3,377 57% 20% 10,183 8,446 66% 10% Model City 4,844 MEI 48% 36% Overtown 3,315 915 54% 27% Wynwood 1,307 380 74% 20% Total in NDZs 33,880 17,289 61% 17% City of Miami 78,797 61,768 47% 9% Source; U.S. Census, 2000 Income: Approximately 27% of the City of Miami's households make $12,000 or less per year. While this is a large proportion of the City's households, the NDZs fair much worse. With the exception of Coconut Grove, most of the households in the NDZs bring in an income of less than $12,000. Over 40% of the households in East LittlrHavana, Model City, Overtown and Wynwood are in this category. In order to reduce poverty in the NDZs and improve the quality of life of its residents, the earning potential of families living within these communities needs to increase, 2005-2006 Action Plan 8 Table 2: Household Income in the NDZs, 2000 Neighborhood Development Zone Total households 6,123 Median Income $17,865 '%, of 1111 with income $12K or less: 37% Allapattah Coconut Grove 912 $28,043 25% Edison/Little River/Little Haiti 9,850 $19,526 35% East Little Havana 17,501 $14,910 40% Model City 4,449 $15,615 43% Overtown 3,646 $13,212 46% Wynwood 1,361 $14,794 44% Total in NDZs 43,842 - 35% City of Miami 134,344 S23,483 27% Source: US Census Bureau, 2000 Housing: There are an estimated 49,311 housing units in the NDZs. The majority of these units are renter occupied. Indeed, homeownership rates are extremely low, ranging from 32% in Coconut Grove to 9% in East Little Havana. In addition to low homeownership rates, most of the housing stock in the NDZs is over 30 years old. The neighborhoods with the highest percentages of older housing include Edison/Little River/Little Haiti, Coconut Grove, and Wynwood. These findings indicate that most of the housing units in the NDZs are rental properties in need of deferred maintenance. Table 3: Housing Characteristics of the NDZs, 2000 Neighborhood Development Zone I lousing units 6,489 '%, Owner Occupied Housing Units 20% '%, housing Stock Built Before 1970 (Over 30 yrs old) 77% Allapattah Coconut Grove 1,094 32% 89% Edison/Lithe River/Little Haiti 11,617 28% 90% East Little Havana 18,572 9% 83% Model City 5,288 25% 84% Overtown 4,841 13% 82% Wynwood 1,504 21% 87% Total in NDZs 49,311 18% 84% City of Miami 148,554 35% 81% Source: U.S. Census, 2000 2005-2006 Action Plan 9 CDBG and HOPWA Target Areas Although the City of Miami intends to concentrate funding within the NDZs and the Model Blocks, it is important to note that there are a few community development programs which target a broader geographic area. This includes activities funded by CDBG and HOPWA. Funding for CDBG activities are divided among the City's five Commission Districts based an the HUD formula allocation. As such, public service needs and other CDBG funded activities are generally determined by Commission District. These activities include social services for the elderly and the disabled and economic development programs. The HOPWA program targets the entire geographic area of Miami -Dade County. The goal and intent of the local HOPWA Program is to ensure that a continuum of housing options and related housing services is available to low income persons with HIV/AIDS and their families. Commission District Profile The following provides a brief profile of the City of Miami Commission Districts, including information on race and ethnicity, educational attainment, poverty, and employment. This information will serve as a baseline indicator for change in the Commission Districts. Race and Ethnicity; Of the five commission districts in the City of Miami, District 5 has the greatest number of Blacks, Approximately 66% of the Black population in Miami lives in this district. The Hispanic population is almost evenly distributed among Districts 4, 3, and 1. Table 4: Race, Ethnicity, and Language by Commission District, 2000 Commission District Total population 71,342 While alone 53,292 Black alone 7,705 Oilier alone 6,686 21 races 3,659 Iispanic 60,484 English 1,VW'• 39,657 District 1 100% 75% 11% 10% 5% 85% 56% District 2 72,701 50,624 15,488 4,256 2,333 33,862 19,301 100% 70% 21% 5% 3% 47% 27% District 3 72,824 59,960 2,486 6,479 3,899 65,472 45,813 100% 82% 3% 9% 5% 90% 63% District 4 74,180 7,481 728 3,263 2,708 66,179 42,042 102% 93% 1% 4% 4% 89% 57% District 5 71,318 10,263 53,147 2,171 5,737 11,822 13,452 100% 14% 75% 3% 8% 17% 19% Total 362,369 241,623 79,554 23,799 18,336 237,822 160,267 100% 67% 22% 7% 5% 66% 44% Source: U,S. Census, 2000 *LVW: Less than Very Well Educational Attainment: Approximately 47.3% of the population in the City of Miami (25 years and over) do not have a high school diploma. Of these individuals, 30% have a 9`h grade education or less. Among the Commission Districts, it was found that the greatest number of individuals with less than a 9'h grade education were concentrated in Districts 3, 1, and 4. These figures indicate the critical need to increase the educational attainment among City of Miami residents. 2005-2006 Action Plan 10 Table 5: Educational Attainment of Persons 25 Years or Older by Commission District, 2000 Commission Population 9111 grade Iligh school Bachelor's Master's Doctorate 1)istric•t 25years 4 education graduate degree degree degree or less (including ctluivalenc•y) District 1 49,091 18,668 9,664 2,318 100% 38% District 2 54,206 l._ U 9.013 734 1"/0 4,868 2% l)lcrrir{ -. 100% 41% 16.., :., . . - , District 4 56,188 16,734 11,142 4,751 1,62', 100% 30% 20% 8% 3% 1% District 5 41,620 11,377 10,541 1,597 564 76 100% 27% 25% 4% I% 0% Total 252,494 75,213 49,978 21,750 8,834 2,432 100% 30% 20% 9% 3% 1% Source: U.S, Census, 2000 Persons in Poverty by Age: Approximately 28% of the City's residents live in poverty. The poverty rate in most of the Commission Districts is similar to that of the City. The exception is District 5, With 43% of its residents living below poverty, this district has the highest concentration of poverty in the City of Miami. District 5 also has the highest concentrations of children living in poverty. In terms of raw numbers, District 3 has the most elderly living in poverty. Table 6: Persons in Poverty by Age and Commission District, 2000 Commission Districts District 1 Persons with income below poverty 19,564 Under 5 years 1,509 5-11 years 2,397 12-17 years 1.101EI 18-t -I years 10,014 65-years and older MEM 20% 100% 8% 12% 9% 51% District 2MEM 100% 1,040 1,425 1,264 9,576 1,952 7% 9% 8% 63% 13% District 3 23,564 1,792 2,355 1,880 12,144 5,393 100% 8% 10% 8% 52% 23% District 4 13,104 567 1,049 849 6,837 3,802 100% 4% 8% 6% 52% 29% District 5 28,680 2,998 4,819 3,954 14,263 2,646 100% 10% 17% 14% 50% 9% Total 100,169 7,906 13,803 9,718 52,834 15,908 100% 8% 14% 10% 53% 16% Source: U.S. Census, 2000 * Total numbers of persons that Poverty can be accounted for, 2005-2006 Action Plan 11 Employment: According to the 2000 Census, only 50.3% of the population in the City of Miami is in the labor force. This is considered the lowest labor force participation rate in the nation. The average among large cities is 63%. When comparing this data at the Commission District level, it appears that the only district that comes close to the national average is District 1, with a labor force participation of 59%. District 5 has the lowest labor force participation in the City. Only 44% of the working age adults in this District are in the labor force. This means that 66% of the potential labor force in District 5 is not actively seeking employment. Table 7: Employment for Population 16 Years and Over by Commission Districts: 2000 Commission District Population 16 and Over 56,782 In Labor Force 26,991 Civilian 26,991 Employed 23,504 Unemployed 3,487 Not in IAthol- Force 29,791 District 1 100% 48% 48% 41% 6% 52% District 2 61,366 36,475 36,357 33,415 2,942 24,891 100% 59% 59% 54% 5% 41% District 3 59,157 28,951 28,934 25,367 3,567 30,206 100% 49% 49% 43% 6% 51% District 4 63,126 31,631 31,619 28,956 2,663 31,495 100% 50% 50% 46% 4% 50% District 5 52,126 23,192 23,184. 18,640 4,544 29,077 100% 44% 44% 36% 9% 56% Total 292,7000 147,240 147,805 129,882 17,203 145,460 100% 50% 50% 44% 6% 50% Source: U.S. Census, 2000 2005-2006 Action Plan 12 Figure 1: NDZs and CBCs in the City of Miami 2005-2006 Action Plan 13 III. Funding Resources Expected Grant Funds and Other Income Within the City of Miami, the Community Development Department is responsible for operating most of the City's housing assistance programs and community development programs. The following provides a list of the funding sources that the Community Development Department has available to support such activities, Description of Federal Funding Sources American Dream Downpayment Initiative (ADDI): ADDI will provide downpayment, closing costs, and rehabilitation assistance to eligible individuals. The amount of ADDI assistance provided may not exceed $10,000 or six percent of the purchase price of a home, whichever is greater. The rehabilitation must be completed within one year of the home purchase. Rehabilitation may include, but is not limited to, the reduction of lead paint hazards and the remediation of other home health hazards. Community Development Block Grant Entitlement Program (CDBG): As an entitlement City, Miami receives an annual CDBG grant on a formula basis. The formula takes into account total population, overcrowding and poverty. CDBG funds must be used for activities that benefit low- and moderate -income persons. Eligible activities include affordable housing, job creation, business expansion opportunities, and services to the most vulnerable in the community. HOME: The purpose of the HOME Program is to increase the supply of safe, decent, sanitary, and affordable housing for low and very -low-income households. HOME also seeks to expand the capacity of nonprofit housing providers through CHDOs. Jurisdictions can use HOME funds to carry out a wide variety of housing activities for low- and very low-income families, including; • Homebuyer programs, which may include downpayment and closing costs assistance, construction loans, or loan guarantees for acquisition, rehabilitation, or new construction ■ Rental housing programs, consisting of construction loans, permanent mortgage loans, bridge loans, or loan guarantees for acquisition, rehabilitation, new construction, and refinancing ■ Homeowner rehabilitation programs, including grants, loans, interest subsidies, and loan guarantees to pay for hard costs, related soft costs, and refinancing expenses • Tenant -based rental assistance (TBRA) to pay for rent, utility costs, security deposits, and utility deposits Emergency Shelter Grant Program (ESG): The ESG program is a formula grant program that allocates monies to improve the quality and number of emergency homeless shelters and related social services for the homeless. ESG provides a foundation for homeless people to begin moving to independent living. The current level of funding is based on the yearly homeless assistance appropriation, as well as the demand of HUD's other McKinney-Vento Act programs. The City of Miami does not provide homeless shelters, since this is a function of the County. The City uses ESG funds to provide outreach services to the homeless. Housing Opportunities for Persons with AIDS (HOPWA): The City of Miami serves as the administrator of the formula grant -funded Housing Opportunities for Persons with AIDS (HOPWA) program for the entire geographical area of Miami -Dade County. The goal and intent of the local 2005-2006 Action Plan 14 HOPWA Program is to ensure that a continuum of housing options and related housing services is available to low income persons with acquired immunodeficiency syndrome or related diseases to prevent homelessness of such individuals and their families. HOPWA funds may be used for a wide range of housing, social services, program planning, and development costs. Section 8 Moderate Rehabilitation Program (Rental Assistance): Housing choice vouchers allow very low-income families to choose and lease or purchase safe, decent, and affordable privately -owned rental housing. Though the City of Miami does not operate any public housing, it is responsible for a limited number of Section 8 Tenant Based Assistance. This is 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. Section 108 Loan Program: The CDBG Section 108 Loan Guarantee allows CDBG entitlement communities to use their CDBG funds to guarantee loans/notes for large development projects. Under this program, the applicant pledges current and future CDBG funds as principal security for a loan guarantee. Eligible activities include acquiring real property, rehabilitating publicly owned real property, housing rehabilitation, and certain economic development activities. Federal Funding Source * *ADDI City of Miami Programs ■ Downpayment Assistance Program Funding $137,000.00 Community Development Block Grant (CDBG) ■ Section 108 * Economic Revitalization • Housing • Quality of Life Enhancement $9,398,140,00 CDBG Program Income $1,000,000,00 HOME Program • New Construction: Homeownership and Rental • Homebuyer's assistance $4,920,334.00 Emergency Shelter Grant Program (ESG) • Homebuyer's assistance $363,122.00 Housing Opportunities for Persons with AIDS(HOPWA) 1 New Construction ■ Rental Assistance ■ Support Services $10,351,000.00 Miami Unleaded ■ Eliminate Lead base paint hazards $1,000,000.00 Section 8 Moderate Rehabilitation Program ■ Rental Assistance $3,794,265.00 Total S30,964,161.00 *Funds Include: 30` Year, Administration, Housing, Quality of Life **ADDI 2003 Funds $204,049 are not accounted for on the table. Description of Non -Federal Funding Sources State Housing Initiatives Partnership program (SHIP): State Housing Initiatives Partnership is the first permanently funded state housing program in the nation to provide funds directly to local governments to increase affordable housing opportunities on a noncompetitive basis. The funds are used to produce and preserve affordable homeownership and multifamily housing for very low, low and moderate income families. The City of Miami may use SHIP dollars to fund emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy -downs, acquisition of property for affordable housing, matching dollars for federal housing grants and programs, and homeownership counseling. 2005-2006 Action Plan 15 Miami -Dade County Documentary Stamp Surtax Program: The Documentary Stamp Surtax program is a dedicated source of revenue for affordable housing collected from commercial real estate sales in Miami -Dade County. The Surtax Program subsidizes both development and consumer financing to make home ownership more affordable for low-income working families. Low -Income Housing Tax Credit Program: The Low -Income Housing Tax Credit Program is a tool for private developers and non-profit entities to construct or rehabilitate affordable rental units. This program gives developers tax credits in exchange for substantially rehabilitating or constructing rental housing projects that set aside 20% or more units for individuals or families with low incomes. Miami -Dade County Food and Beverage Tax Funds: The Food and Beverage tax is levied to provide a dedicated source of funding for homeless assistance centers and projects. Table 8: City of Miami Programs by Non-federal Funds Non -Federal Funds: State SHIP Program City of Miami Programs • Rehabilitation • Homebuyer Assistance • New Construction Funding $1,755,441.00 Miami -Dade County Documentary Stamp Surtax Program • Acquisition ■ New Construction • Homebuyer Assistance Competitive State of Florida Low Income Tax Credits • New Construction • Rehabilitation, Acquisition Competitive Miami -Dade County Food and Beverage Tax Funds Homeless Assistance/Prevention Competitive Private Foundations Public Services Competitive Projected Revenue and Expenditures The following tables provide detailed information on how the City of Miami will utilize the resources it receives during FY 2005-2006 to carry out its community development functions. Table 9: City of Miami Community Development Department Projected Revenue and Expense Projections: FY 2005-2006 Category CDBG 31" YEAR $9,398,140.00 Adminis. $1,879,628.00 !lousing $0 Quality of life $2,566,876.00 Economic Development $4,000,000.00 Section I08 $951,636.00 I'(1'1'Al. $9,398,140.00 ESG $363,122,00 $10,894.00 . $0 $352,228.00 $0 $0 363,122,00 HOME $4,920,334.00 $492,033.00 $4,428,301.00 $0 $0 ti. $0 $4,920,334.00 ADD1* $137,300.00 50 $137,300.00 $0 $0 $0 5137,300.00 HOPWA $10,351,000.00 $310,530.00 $10,040,470,00 $0 $0 $0 $10,351,000.00 SHIP $1,755,441.00 $175,544.00 $1,579,897.00 $0 $0 $0 $1,755,441.00 Section 8 Housing $3,794,265,00 $360,301.00 $3,433,964.00 $0 $0 $0 $3,794,265.00 Lead -base Grant $1,000,000.00 $0 $0 $0 $0 $0 $0 Program Income $1,000,000,00 $200,000.00 $700,000.00 $0 $0 $100,000.00 $1,000,000.00 TOTAL $32,719,602.00 $3,428,930.00 $20,319,932,00 S2,919,104,00 $4,000,000.00 $1,051,636.00 $31,719,602.00 *The figures on the table account for the 31" Year 2004 ADD! funds. ADD! 2003 Funds, whtcn total $1U4,049, are not listed. 2005-2006 Action Plan 16 Table 10: CDBG Funding Recommendations by Categories CDBG FUNDING RECOMMENDATIONS By CATEGORYEntitlement Allocations 108 Debt Service $951,636.00 Administration $1,879,628.00 Economic Revitalization $4,000,000.00 Housin: $20,319,932.00 Qualit of Life Enhancement - $2,919, I04.00 TOTAL S30,070,300.00 Table 11: Municipal Programs MUNICIPAL PROGRAMS: 108 Debt Service Code Enforcement TOTAL 200,000 200,000 ('ominents: Scheduled Section 108 Loan payments for Wynwood Foreign Trade Zone and S.E. Overtown Park West. Unsafe Structures/ City of Miami Building Department Leveraged Funds The following table provides detailed financial information on the agencies that the City of Miami will be funding during FY 2005-2006. The table demonstrates the other funds the City will be able to leverage in its efforts to carry out its community development functions. (See pages 16-17) Federal Funds include, but are not limited to: HOPE VI, USDA, US Housing and Urban Development (HUD), Federal Emergency Management Agency (FEMA), Economic Development Initiative (EDI), Volunteers in Service to America (VISTA), and Americorp. State Funds include, but are not limited to: Florida Department of Education, the Florida Department of Health, the Florida department of Juvenile Justice, the Florida Department of Children and Families, the Governor's Drug Free Communities, Florida Front Porch, the State of Florida Historic Preservation, and Florida International University. County Funds include, but are not limited to: Miami -Dade County, Miami -Dade County CDBG, Miami -Dade County Head Start, Miami -Dade County Office of Community and Economic Development (OCED), Miami -Dade County Department of Human Services, Metro -Miami Action Plan Trust (MMAP), Alliance for Human Services, and the Public Health Trust. City Funds include, but are not limited to: City of Miami Park and Recreation Department, City of Miami Redevelopment Agency, City of Miami CDBG, and the City of Miami LETF. Local Jurisdiction Funds include, but are not limited to: Fisher Island, City of Miami -Beach CDBG, and HOME funds. 2005-2006 Action Plan 17 Private Funds/Grants include, but are not limited to: United Way, Cora! Gables Plymouth Church, RSCJ Fund, Bank of America, Alliance for the Aging, Barry University, University of Miami, Haitian American Foundation Inc (HAFI), Kraft Foods, Lions Foundation, Knight Foundation, Key Biscayne Rotary Club, Women's Fund Dade County, Blue Cross Blue Shield, Coconut Grove Arts Festival, and other donations, fees and contributions. JV Anti -Poverty Strategy The City of Miami's Anti -Poverty Strategy describes the City's programs and policies to reduce poverty and provide affordable housing. The Department of Community Development will be responsible for executing this strategy and for carrying out programs that are responsive to the needs of low-income residents and disadvantage populations throughout the Five Commission Districts. The realization of this strategy has been sustained by the Mayor, City Commission and the Department of Community Development. The activities in the Action Plan are reflective of the Anti -Poverty Strategy. As such the Action Plan seeks to address: obstacles to meeting underserved needs; fostering and maintaining affordable housing; removing barriers to affordable housing; promoting fair housing; evaluating and reducing lead -based paint hazards, reducing slum and blight; infrastructure improvements; reducing the number of poverty level people; developing institutional structured and enhancing coordination between public and private housing. Use of Funds for FY 2005-2006 The following describes how the City of Miami will use the various HUD funds to advance the Anti - Poverty Strategy. Community Development Block Grant (CDBG): The Department of Community Development uses CDBG funds for comprehensive revitalization of designated neighborhoods. The department supports core programs that combat poverty by disseminating funds through a competitive request for proposals (RFP) process. The agencies awarded funding are designed to meet the priority needs of the citizens. The ffunded programs place an emphasis on neighborhood economic development, improving the physical environment and target the need for affordable housing. The use of CDBG funds are directed at senior centers, economic development activities, public facility improvements, homeownership activities, social services, and small business development initiatives. Investment Partnership Program (HOME): The City will allocate HOME funds towards the creation of quality affordable housing, acquisition, rehabilitation, and home buyer/owner programs. HOME funds will also be used to meet the reservation of funds for Community Housing Development Organizations (CHDO) and the City's administrative cost. Housing Opportunities for Persons with AIDS Program (HOPWA): The HOPWA program provides housing assistance supportive services to low-income persons with HIV/AIDS and their families. The City allocates funding to agencies that specialize in housing related services and supply such services to the HIV/AIDS infected community. The funding is provided through a competitive RFP process. 2005-2006 Action Plan 18 Emergency Shelter Grant Program (ESG): ESG awards grants for the assistance of homeless individuals. The funds are directed towards the provision of transitional services for the homeless population, ESG funds for the City of Miami are administered by the Miami Homeless Assistance Program. The funds cover operating costs, homeless prevention activities, and administrative costs. The funds provide a foundation for homeless persons to move into independent living. Institutional Coordination 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 CBOs, CDCs and CHDOs. These funded providers are the core of our operation attributed to their direct connection with the members of the local community. The coordination process analyzes the full local context and the connection established with the larger regions. The premise is directed at building on local assets and coordinating objectives and resources in a holistic approach, by means of securing partnerships with private, non -profits, State, Local and Federal agencies. The incorporation of such practice will coordinate economic development, affordable housing, and community development into a comprehensive and coordinated strategy, so that organizations can work together and thrive. The plan will institute goals, specific objectives, annual goals, and benchmarks for measuring progress. In so doing, the City will facilitate the accomplishments of such goals to citizens in the Consolidated Annual Performance Report (CAPER). The Community Development Department will strive to coordinate and develop individual plans containing goals and strategies reflective of distinctive community priorities sharing a cohesive vision. In subsequent years, the City's CDBG and other resources will be injected within the designated target areas, The City will pursue this venture in the forthcoming program year in coordination with the local HUD Community Development Planner (CPD). 2005-2006 Action Plan 19 V. Activities to be Undertaken Housing During the next year, 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 and preserving the social and historic character of low income neighborhoods threatened by gentrification. As such, the 2005-2006 Action Plan concentrates on the following activities: ■ Affordable housing preservation and new construction • Neighborhood revitalization through the creation of the Model Block concept • Mixed use/income redevelopment Below is a detailed description of the housing policies and activities that the City will undertake. The HUD Matrix at the end of the document provides a more detailed account of the activities that the various agencies funded by the Community Development Department will be undertaking. Preserve Affordable Rental Housing Activities 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 will encourage the construction of new rental units. Through this initiative, the City will increase the inventory of affordable rental housing available to low and moderate income households. As recommended in the Housing Needs Assessment in the Consolidated Plan, the focus will 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. Below is a description of the proposed programs. 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. Preserve Existing Affordable Housing - Homeowner Retention Activities 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 is important since there are a substantial number of the single family homes in the City that fall below minimum housing quality standards (disrepair) which 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 will 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 2005-2006 Action Plan 20 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. Emergency Grant Home Repair Assistance: The City will provide deferred payment loan assistance to an eligible homeowner to carry out limited repairs such as roofing, electrical and plumbing to immediately rectify life hazardous and potentially hazardous conditions that threaten the safety and health of the occupants of the home. Replace Unsafe Housing Structures: The City will provide assistance to replace dilapidated owner -occupied housing 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. Homeownership Activities 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. In addition, the City will provide second mortgage, down payment, and closing cost assistance to new homebuyers. Finally, the City will help renters to prepare for homeownership by referring them to Homebuyer Counseling Programs. The following describes the specific programs. Finance Construction of New Homeownership Units: The City of Miami will promote affordable homeownership opportunities for low and moderate income families by financing new construction. The City will provide hard and soft construction financing and permanent financing for affordable housing units. 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. Although this assistance will be available to anyone who -wants to purchase a home in the City of Miami, Gity 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, In the next year, the City of Miami will work closely with the Miami - Dade Dousing 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 goal, the City will conduct outreach in the Model Blocks, with the goal of referring residents to participate in the Comprehensive Housing Counseling Program. 2005-2006 Action Plan 21 Stimulate Housing Development Other Non -HUD Activities In addition to the activities listed above, it is important for the City of Miami to provide incentives to stimulate housing development. Such incentives help to off -set the barriers that make it difficult to undertake affordable housing projects. The following is a list of the incentives that the City of Miami will provide in order to facilitate the development of affordable housing. Tax Credit Assistance/Housing Credit Match: 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. To this end, the City of Miami will assist developers by providing matching funds and by making sure that the items on the LITHC application checklist that apply to the jurisdiction are completed promptly. 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 The requirements of the plan will be amended to limit incentives to projects that are located within the Model Block and the NDZ areas. Training/Workshops to Developers on City Programs and Regulations: 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. 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% partner that is a non- profit. Special Needs Affordable Housing Activities The City of Miami is committed to assisting persons with special needs 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. The programs for special needs populations are described below. 2005-2006 Action Plan 22 Housing Opportunities for the Elderly: The City will provide funds for rehabilitation and new construction of residence projects that are Section 202 Support Housing. 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. 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, Homeless Program: The Community Development Department will continue 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 provides outreach services in the form of referrals for a myriad of social services, to include behavioral, mental, health, and supportive housing. Other Housing Activities Fair Housing Fair housing practices are aimed at reducing predatory lending and housing discrimination, The City will ensure that fair housing laws are enforced and that low income groups, minorities, and special needs populations are protected against discriminatory practices. For the 315` Program Year the City of Miami contracted the services of CIVICA Consulting to assist in the preparation of its Analysis to Impediments (Al) to Fair Housing Choice. The new plan will deploy a strategy that will set a precedent for performance based tracking. As such, the plan will organize a comprehensive approach and methodology consistent with the Code of Federal Regulations, while simultaneously complimenting the goals and objectives set -forth in the 2004-2009 Consolidated Plan. The new Al will move forward seeking accountability contingent on performance measures integrated in the following manner: impediment, action, and record keeping. It is the responsibility of the Department of Community Development to ensure compliance with the recommended action steps formulated for each respective impediment. Nevertheless, the ultimate goal is to track performance implementing an input and output metric system. In previous years the Department of Community Development outsourced all activities responsive to fair housing matters to a private non for profit entity. Indiscriminately the City strives to internally administer its forthcoming AI Plan in an effort to centralize all major HUD reports, under the reporting umbrella of Community Development. This undertaking by the Department of Community Development attempts to satisfy federal regulatory compliance concurrently with performance measures. Most important the upcoming plan will concentrate in a citywide strategy for citizens residing within the boundaries of the City of Miami. All efforts and actions will grant priority to City residents only. Furthermore, the AI will execute a collaborative Strategic Plan through a Memorandum of Understanding (MOU) with the Miami Dade Equal Opportunity Board (EOB). The logistics in support of the MOU consist of the following initiatives: ■ Training of City staff, Developers, and Public on Fair Housing Guidelines; ■ A Referral System of fair housing complaints to the Miami Dade EOB; The Department of Community Development will refer all fair housing violation claims emanating within the City boundaries to the EOB Office and record all referrals; 2005-2006 Action Plan 23 • Miami Dade will investigate all complaints deemed of fair housing violations and provide a quarterly report to the Department of Community Development; • The City and the EOB Office will put into operation a partnership receptive to outreach efforts; • The EOB Office will deliver a report inclusive of all judicial determinations upon obtaining the final disposition of each case; ■ The EOB office will provide technical assistance to the Department of Community Development on fair housing matters on case by case basis. The execution of this agreement looks forward at diminishing the redundancy and inconsistency in the reporting of fair housing complaints. The City seeks to condense the reporting of complaints by the means of a centralize system. This new system will offer accuracy in the record keeping aspect of complaints and the actions carried out to address complaints. Lead Based Paint Hazards: The City of Miami is committed to significantly reducing lead base paint hazards and preventing childhood lead poisoning. To this end, the City aggressively sought a Lead - base paint grant for the reduction and stabilization of lead paint hazards in lower income neighborhoods. In addition, the City will administer the lead base program recognized as "Miami Unleaded". Miami Unleaded will be managed by the Community Development Department of the City of Miami. The Program will rely on an experienced Project Director to provide management of the program from initial intake to property clearance. The program will be managed directly by the Assistant Director of Community Development, Housing Division and the Housing Program Manager, The Lead Program Coordinator will report to the Housing Program Manager who has responsibility over all rehabilitation activities and will provide management direction for the program. Currently the community development Housing Specialist and a Lead Program Inspector will also work full time on this initiative. Public Services The main objective for addressing public service needs is to enhance the health, safety, and overall well being of low and moderate income residents and persons with special needs. The public service priorities established for disbursement of CDBG funds is reflective of the needs identified by the community at public hearings. These include elderly services, youth services, services for the disabled, childcare, job training, and programs ex -offender rehabilitation. The distribution of CDBG funds for -- these activities will be divided among the Five Commission Districts based on the HUD formula allocation. Below is a description of each public service program. 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. Youth Services: The Department of Community Development will secure special recognition to youth activities conducted on City Parks. Moreover, the department will provide funding to entities inclined towards youth enrichment activities, such as; health and 2005-2006 Action Plan 24 fitness programs; educational tutoring/counseling; alter -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: Community Development is committed to providing financial backing to childcare service providers that provide quality childcare to low and moderate income families. Childcare subsidies will also be 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. 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. Head start programs target low-income preschool age children and their families. Disabled Services: Community Development will continue to support and advocate on behalf of persons with disabilities through the provision of funding to programs that provide support services, nutritional meals, educational assistance, care giver support services, special transportation, in -home services, mental health, legal intervention/referrals, and outreach services. 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. Job Training: The City will support agencies that offer employment training and life skills to low to moderate income citizens. Organizations receiving CDBG dollars will be required to streamline services towards employability skills that expand and enhance employable proficiency. The challenge is to provide job training assistance to the underemployed subgroup of the local community. Economic Development Economic development activities will target job creation, micro enterprise assistance, technical assistance, Commercial/industrial improvements and assistance to private for profit entities within the identified Commercial Business Corridors (CRCs), The distribution of CDBG funds for economic development activities will be divided among the Five Commission Districts based on the HUD formula allocation. The funding priority for economic development activities will be awarded to the CBCs. The following provides describes the various economic development programs. Job Creation and Retention: Job creation and retention provides the stabilization and expansion of small businesses in areas stricken by economic disadvantages. 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% of the jobs identified by an activity will be held or made available to 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 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% of the retained jobs will be available to lower income citizens. Micro -enterprises Assistance: A micro -enterprise is defined in the regulations as a business that has five or fewer employees; and at least one of those employees is the owner. The Department of Community Development will channel funding to small businesses with the intent to restore economic soundness in neighborhoods economically distressed. 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 2005-2006 Action Plan 25 business. The overall mission is to assist small businesses to grow. in addition, services provided do not count against the 15 % public service cap. (24 CFR 570 Sec. 201) 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 ifa 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. Forms of assistance could be training, 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: The Code Compliance 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 may be severely impacted by the financial expenditures spent in correcting 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 targ.ed 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 private places can be 2005-2006 Action Plan 26 rehabbed if they are eligible 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: 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% of grant funds plus program income may be used for planning and administration; the cap limitations for the HOME program funds states that no more than 10% 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: Section 108 loan is an extension of the CDI3G program. It involves the pledging up to five years of a community's entire CDBG entitlement as backup collateral for a loan. 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 are 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) 2005-2006 Action Plan 27 VI. Homeless and Other Special Populations 24 CFR 91.220 (e) Homeless Background According to homeless enumerations conducted in December 2003, approximately 42% of Miami - Dade County's homeless population is located within the City of Miami. The high concentration of homelessness in the City can be attributed to the following factors: ▪ Three of the five major shelters in the County are located in the City; one of the two remaining is located across the street from the City limits • Jackson Memorial Hospital (the public hospital that serves the homeless and indigent) is located in the City of Miami • The County's major correctional facility is within the City and releases arrestees from throughout the County into the City of Miami Other factors that that attribute to the high homeless numbers and make Miami unique are the continual flow of immigrants and the warm weather conditions throughout the winter months. Continuum of Care for the Homeless The Miami -Dade Homeless Trust (Homeless Trust) is a County organization that serves as the coordinating link between five local entitlement jurisdictions, including the City of Miami, and multiple systems of care impacted by homelessness. The coordination is achieved through a local Continuum of Care Agreement which delineates a comprehensive strategy for the delivery and coordination of homeless housing and services for the entire County, including all its municipalities and jurisdictions. Key components of the continuum include: • Outreach assessment of needs, information, referrals, and transportation • Provision of emergency shelter/assessment effort which provides immediate shelter and ability to identify an individual's or family's need • Provision of transitional housing and the necessary social services. Such services include short-term mental health services, substance abuse treatment, case management, job training and independent living skills, etc. • Provision of permanent support housing or permanent housing for individuals and families The Homeless Trust serves to reduce duplication of efforts and resources and ensures collaboration between the entitlement jurisdictions, multiple funders and providers of services to special needs populations. 2005-2006 Action Plan 28 Miami Homeless Assistance Program (MHAP) As stipulated in the Continuum of Care agreement, the City of Miami does not operate any homeless facilities. Such services are provided by the County. However, since a significant number of the homeless population resides within the city limits, the City of Miami provides outreach services to homeless individuals and families within its jurisdiction through the Miami Homeless Assistance Program (MHAP). The Mission of MHAP is to provide outreach, assessment, placement, information, referral and transportation services to homeless individuals and families in a caring and professional manner and to employ and train formerly homeless men and women. MHAP's goals are to: • Identify, and engage homeless individuals and to place them into appropriate housing • Facilitate employability skills, a work history and instill life management responsibilities to our formerly homeless employees, thereby strengthening their ties to the community • Significantly reduce the number of homeless individuals and families in the City of Miami Current Homeless Enumerations in the City of Miami According to MHAP, there has been a decline in the homeless population in the City of Miami in recent years. The most recent count shows the City's homeless population within the Neighborhood Enhancement Team (NET) areas at 827 homeless; a 28% reduction since a peak in homelessness in April of 2003, Table 12: Homeless Enumerations, City of Miami: 1997-2003 NET AREA Allapattah 4/19/ 2000 85 11/16/ 2000 75 6/13/ 2001 96 11/7/ 2001 91 4117/ 2002 68 11/13/ 2002 80 4/16/ 2003 119 12/4/ 2003 44 4/16/ 21104 28 NE Coconut Grove 15 05 7 15 12 09 08 16 12 SW Coconut Grove 12 03 12 22 33 18 27 9 13 Coral Way 18 27 13 18 09 18 35 12 4 Downtown 399 310 327 307 321 346 381 350 291 Flagami 02 00 34 16 23 8 34 25 13 Little Haiti 30 47 69 39 93 89 98 127 86 Little Havana East 62 73 92 39 49 86 31 43 36 Little Havana West 11 49 30 12 04 01 13 6 2 Model City 53 59 135 107 33 76 27 52 120 Overtown 79 124 _ 187 115 132 170 246 186 128 Upper Eastside 49 24 89 26 97 _ 20 32 —20 42 Wynwood/Edgewater 23 26 56 55 51 6I 101 51 52 ll.A ',A ,. wpr .. '.rLi $3:)1,•F . :011a1i;it li 25 .?.'Y., ' , 7$ , A ! it ' Z t041 ,„ ,Y2 l'L .i. Snnrre• Miami i-Inmeless Assistance Program. Analysis of Homeless Enumerations City of Miami Homeless Population Characteristics Miami's homeless population is as diverse as its residents. Those facing homelessness have two main commonalities —they experience dismal poverty and they are unable to access safe and affordable housing. The following is a brief description of the City's homeless population based on data collected of the homeless served by the City of Miami Homeless Program in 2003. 2005-2006 Action Plan 29 • 49% of the homeless served by MHAP were male adults from the ages of 31 to 50 years • 72% of the homeless were non -Hispanic and 60% were African American • 51% of this population finished high school or completed the General Education Development (GED) program • 76% were single or never married • 23% of the homeless had health insurance • 37% had utilized an emergency room for medical care • 21% had been admitted into Detox or a Crisis Unit for treatment • 25% had been arrested because they had nowhere else to go • 48% had been jailed or in prison Homeless Needs Gap Analysis The existing inventory of shelter facilities for the homeless in the City of Miami includes emergency shelters, transitional housing and permanent housing for both homeless individuals and families. As indicated earlier, however, the homeless shelter facilities located within the City of Miami are not managed or operated by the City. The Miami -Dade Homeless Trust is responsible for funding and overseeing the operation of the homeless shelters. As such, the Homeless Trust tracks the demand for beds. The following tables summarize the unmet housing needs of homeless single adults and homeless families with children, Table 13: Housing Gap Analysis for Homeless Individuals and Families (by beds), Miami - Dade County: 2004 Current tinder llumet Type of [lousing Assistance Inventory Development Need/Cap 2004 2004 INDIVIDUALS Illi 773 0 710 Transitional Housin: 957 24 514 Permanent Su..ortive Housin: 710 197 1,967 TOTAL 2,440 221 3,191 PERSONS IN FAMILIES WITH CHILDREN 617 -- 0 60 Transitional Housin. 1,060 - 104 131 Permanent Su..ortive Housin: 751 200 2,329 TOTAL 2 428 304 . 2,520 Source: Continuum of Care Housing Gaps Analysis and Housing Population (revised Mar Homeless Program Activities Through the Miami Homeless Assistance Program, the Community Development Department will continue its efforts in the prevention of homelessness. As indicated previously, the assistance is limited to outreach services, mainly in the form of referrals to social services, including behavioral, mental, health, and supportive housing. The following provides a brief description of the various activities and Miami Homeless Assistance Program 2005-2006 Action Plan 30 strategies that the City of Miami will undertake in the next year in order to further reduce homelessness in the City. I. Activity: Homeless Prevention Strategy Consolidated Plan Reference Code: 4 SN (a) Strategy: Develop a homeless prevention strategy for City residents. Targeted Outcome: Adopt a plan to end chronic homelessness. 2. Activity: Limit Street Feeding Consolidated Plan Reference Code: 4 SN (b) Strategy: Develop a plan to limit street feeding, Targeted Outcome: Enact legislation. 3. Activity: Expand Outreach Services Consolidated Plan Reference Code: 4 SN (c) Strategy: 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: Increase outreach services for the homeless Source: ESG 4. Activity: Low/Demand Safe Haven Beds Consolidated Plan Reference Code: 4 SN (d) Strategy: Expand the availability of low -demand safe haven beds. Targeted Outcome: Increase availability of low -demand safe haven beds. 5. Activity: Mental Health Services Consolidated Plan Reference Code: 4 SN (e) Strategy: Fund the availability of mental health services at the street level by hiring a LCSW. Targeted Outcome: Increase the mental health services provided to the homeless at the street level. 6. Activity: Collaboration with City of Miami Police Department Consolidated Plan Reference Code: 4 SN (f) Strategy: Strengthen communication and collaborative efforts with the City of Miami- Police Department by participating in yearly training sessions, Targeted Outcome: Improve collaboration with City of Miami Police Department. 2005-2006 Action Plan 31 Other Special Needs - Elderly The City of Miami annually selects, through a competitive Request for Proposals process, agencies that can provide high quality and comprehensive services to the senior and frail elderly population. Many activities are carried out through non-profit sub -recipients that are Community Based Organizations and recognize the needs of the local neighborhoods and their respective communities as a whole. Background The City of Miami has the third largest elderly population in the nation, representing 20% of the population in the City. Of the 60,279 elderly, 49% are disabled. In total, the elderly population makes up more than 37,000 households, 38% of which are low-income. Approximately 76% of these low- income seniors live in rented housing and 52% of these individuals have incomes lower than 30% of MFI. Table 14: Population 65 years and over, NDZs and City of Miami, 2000 Neighborhood Development Zone 1 UIniI u IoI1 �1 and over '%, of Seniors ill the City of Miami Allapattah 2,598 4% Coconut Grove 321 t% Edison/Little River/Little Haiti 3,377 5% Little Havana 8,446 14% Model City 1,252 2% Overtown 915 1 Wynwood 380 ]% Total in NDZs 17,289 28% City of Miami 61,768 100% Source; U.S. Census, 2000 Elderly Housing Activities The City of Miami will continue to work with housing providers that assist the elderly and handicapped persons by supporting the development of housing for these special needs populations. Below is a description of the activities that the City will implement in the coming year. 1. Activity: Elderly Housing Consolidated Plan Reference Code: 1 SN (a) Strategy: Apply for special-purpose vouchers targeted to the elderly, should they become available, and target available assistance to the elderly. Targeted Outcome: Increase housing assistance to the eligible elderly population. Source: Section 8 2. Activity: Housing for Persons with Disabilities Consolidated Plan Reference Code: i SN (b) Strategy: Apply for special-purpose vouchers targeted at persons with disabilities and assure that housing providers follow ADA standards. 2005-2006 Action Plan 32 1) Apply for special purpose vouchers targeted to residents with disabilities, should the vouchers 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: Increase in housing assistance to residents with disabilities that is ADA compliant. Source: Section 8 Other Special Needs Persons with HIVIAIDs The City of Miami serves as the administrator of the formula grant -funded Housing Opportunities for Persons with AIDS (HOPWA) program for Miami -Dade County. The goal and intent of the local HOPWA Program is to ensure that a continuum of housing options and related housing services is available to low income persons with acquired immunodeficiency syndrome or related diseases and their families. Background Miami -Dade County ranks fourth nationally for the number of persons living with HIV/AIDS, with an estimated 11,314 persons.2 Blacks account for more than half of the cases; Hispanics represent 33% and whites 16%.3 Residents living with HIV/AIDS are concentrated in Central Miami -Dade County, primarily in low-income minority neighborhoods within the City of Miami. Table 15: Number oflIV/AIDS cases by Race and Gender, Miami -Dade County: 2002 Ethnic Group White His.anic Black Total Male 111V 83% 83% 55% 65% Number of Cases AII)S 90% 85% 61% 73% IIIV Female AII)S 17% 17% 45% 35% 10% 15% 39% 27% Source: Miami -Dade HIV/AIDS Partnership, Comprehensive Plan for HIV/AIDS (2003-2005), October 2002. Housing Gap According to an HIV/AIDS housing needs and gap analysis conducted in 2003, it is estimated that 35% of all HIV/AIDS cases need housing assistance. To meet the need, 6,996 affordable housing units or subsidies dedicated to households living with HIV/AIDS will be required. Of this total number, 1,610 units and/or subsidies are in place; thus, there is a need for an additional 5,386 units.4 Research also revealed that consumers and providers consider the following to be priority needs: assistance with rent or mortgage payments, locating and securing affordable housing, emergency rental, and mortgage or utility assistance. 2 Centers for Disease Control and Prevention, Characteristics of Persons Living with AIDS and HIV, 2001, HIV/AIDS Surveillance Supplemental Report, 2003; 9(No.2): I0. } Miami -Dade County Health Department, HIV/AIDS Surveillance Report Through October 2003. 4 Apple Tree Perspectives, Inc., 2003 HIV/AIDS Housing Needs Gap Analysis, October 2003. 2005-2006 Action Plan 33 Housing Activities for Persons with HIV/AIDS 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 HIVIAIDs. 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 following describes the various activities that the City of Miami will implement through the HOPWA program. 1. Activity: Long -Term Tenant -Based Rental Housing Strategy: Provide Long -Term Tenant -Based Rental Housing to persons living with HIV/AIDS I) Provide long-term tenant -based rental subsidy and the support of a Housing Specialist to individuals living with AIDS and their families. 2) Increase the current number of households that can be served by the program from 1,200 households to 1,250 households per year. 3) Continue to contract with community -based organizations to provide the services of HOPWA Housing Specialists, who are responsible for (i) determining client eligibility, program enrollment, and recertification, (ii) assisting clients with housing searches and lease -up; (iii) serving as liaison between landlords and clients, and (iv) performing housing stability assessment, intervention and referral assistance. Consolidated Plan Reference Code: 2 SN (a) Targeted Outcome: Increase housing stability of persons living with AIDS and their families and reduce homelessness among such persons, thereby facilitating increased access to care. Source: HOPWA 2. Activity: Project -Based Rental or Operating Subsidy Consolidated Plan Reference Code: 2 SN (b) Strategy: Expand the number of project -based, rent -subsidized units for low income persons living with AIDS and their families (currently there are approximately 60 units). Targeted Outcome: Expand existing inventory of project -based housing units. Source: HOPWA 3. Activity: HOPWA Emergency Assistance Consolidated Plan Reference Code: 2 SN (c) Strategy: Provide emergency rental, mortgage, and utility assistance to persons living with AIDS. Targeted Outcome: Reduce the number of low income persons living with AIDS who become homeless due to temporary financial pressures. Source: HOPWA 4. Activity: Housing Information, Referral, and Advocacy Consolidated Plan Reference Code: 2 SN (d) 2005-2006 Action Plan 34 Strategy: Maintain housing information, referral, and advocacy services (including a web -based housing referral site) for persons living with AIDS through contract with a community -based organization. Such services include generating and maintaining a web -based listing of decent, affordable rental units, housing advocacy for persons who experience difficulty in securing or maintaining rental housing, self -advocacy education and referral to HUD -approved housing counseling services for pre -purchase and default/foreclosure counseling. Targeted Outcome: Expand affordable housing opportunities to persons living with AIDS and their families beyond that which can be accommodated by the existing HOPWA-funded tenant and project -based housing programs. Source: HOPWA 2005-2006 Action Plan 35 VII. Other Actions 24CFR91.220(f) Underserved'Needs The City of Miami petitions for federal funds through the Action Plan to assist the needs of residents that have traditionally been underserved by existing local social service programs. The activities funded via the Action Plan are carefully designed to provide appropriate and needed services, particularly to those that may not be eligible for assistance from other local sources, those that are geographically isolated by lack of transportation and those that lack basic amenities in their neighborhoods. Such individuals include senior citizens, homebound frail elderly persons, physically and developmentally disabled persons, victims of domestic violence, and infants and youth. Funds provided through the Action Plan often make the difference between independent living and institutionalization. Barriers to Affordable Housing. This section identifies public policies and issues, which to some degree act as a barrier or tends to impede the production of affordable housing; especially housing that is targeted for low and moderate income households in the City of Miami. It also provides information on what the City is doing to address these barriers. Building and Housing Codes: The South Florida Building Code is a series of standards and specifications designed to establish minimum safeguards in the construction of buildings to protect the health and safety of the public. The problem is that some of these building codes increase the costs of housing production, such as the requirement to install shutters on all new construction projects. Through housing subsidies and other financial assistance, the City helps builders to meet the building code requirements while keeping the properties affordable. Davis -Bacon Prevailing Wage (Davis -Bacon Act of 1931): When federal dollars are used to pay housing construction or rehabilitation labor costs in contracts valued at more than $2,000, a prevailing wage must be paid to laborers and mechanics, which is usually higher than competitive wages. 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. Land and Construction Costs: Land costs are one of the most significant factors determining high housing costs, and vary considerably in different parts of the City of Miami, but in all neighborhoods, both land and construction costs are high. The high costs of land and construction have made it difficult for the private market to construct affordable housing for lower income households in Miami without government subsidies. As such, the City plans to raise its subsidies to keep up with the costs of real estate. Land Use and Zoning: City land use policies play a significant role in determining the amount and availability of affordable housing within a community. City land use policy guides the location of housing types and densities. Zoning is the planning tool for implementing housing development and regulating its construction. Through zoning incentives, private and non-profit developers can help a City address the housing needs of its low- and moderate -income population. Moreover, zoning incentives that increase the density of housing development and provide for mix uses including transit, 2005-2006 Action Plan 36 are important tools for expanding the local supply of both affordable homeownership and renter housing. Currently, the City of Miami uses "special districts" in locations throughout the City to provide for greater densities, uses and design standards. Similar districts will be considered for NDZs as part of larger neighborhood revitalization plans. Private Lending: A recent survey and analysis of private lending patterns in Miami and Miami -Dade revealed certain institutional barriers to affordable housing. Analysis of home purchase and refinance loans in Miami -Dade County market shows "several patterns of disparate service and under -service to minority markets." Hispanics and especially African Americans show significant racial disparities related to higher failure rates for conventional loan applications, unusually high levels of FHA lending and clearly higher levels of sub -prime lending when compared to whites or predominantly white areas (Calvin Bradford & Associates, 2003). The City plans to work closely with the Banking industry to address some of these issues and to encourage compliance with the Community Reinvestment Act (CRA) regulations. Public Infrastructure: Public infrastructure investment can be an important catalyst for housing development activity. Public infrastructure investment has been used successfully in South Florida when targeted to community redevelopment areas, Public infrastructure improvements have also been effectively used in conjunction with the Model Block purchase/rehabilitation programs, helping to insure the investment of both private lenders and first time homebuyers, It is clearly evident that most streets within the City's NDZs lack adequate public infrastructure. Not only does this detract from the physical aesthetics of the streets and surrounding neighborhoods, it also transmits a message that these neighborhoods are low priority. By focusing on infrastructure improvements in the Model Blocks, the City seeks to change this perspective. Real Property Tax: Real property tax normally constitutes the major source of income for most local governments. The City of Miami is no exception. In Miami, as in older cities, the tax base has stabilized over the years. As the buildings get older and begin to deteriorate and neighborhoods begin to decline, the tax base actually begins to decrease. As owners begin to reinvest and rehabilitate their properties, the value of the property begins to climb, as do the assessed values, resulting in higher property taxes. To address this issue, the City will encourage property owners to apply for tax exemptions. Other options are also being considered which would assist those who are most severely affected by increases in property taxes. Resistance to the Development of Affordable Housing: Developers of affordable housing have further challenges that increase the cost of housing, such as resistance in the form of active opposition to new housing projects by neighborhood residents. The Not in My Back Yard (NIMBYism) attitude can often play a critical role in impeding the development of housing affordable to low and moderate income families and individuals. Scarcity of Large Vacant Parcels: There are few large residentially zoned vacant tracts in the City of Miami as compared to other areas in Miami -Dade County. In addition, many of the City's available vacant parcels are scattered and situated in the City's most economically distressed neighborhoods and would have to be developed on an in -fill basis. The scarcity of large vacant residential parcels raises housing development costs since the private market is unable to realize cost -savings attributed to economy of scale or higher density housing projects. As a result of this problem, the City is in the process identifying city -owned properties that can be assembled and made available for the development of affordable housing. 2005-2006 Action Plan 37 Evaluate and Reduce Lead -based Paint Hazards. 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.5 Indeed, data collected by the Miami -Dade County Department of Health from 1999 to 2003 indicate that 66% of lead poisoning cases in the City of Miami occurred in some of the city's most distressed areas, including all of the Neighborhood Development Zones.6 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. As a result the City of Miami will be introducing its "Miami Unleaded Program" to alleviate the lead base paint hazards identified in the City of Miami. The Program will rely on a strong network of community -based referral sources to identify older, low income properties with pregnant women and children. Referrals sources include: City of Miami Neighborhood Enhancement Teams (NET offices), FCEHA, Miami -Dade County Health Department, schools, clinics and faith -based partners in the target area. In addition, residents will, as a result of community outreach and education, become a consistent source of referral and self - referral. The seven target neighborhoods include a large percentage of distressed pre-1950 low-income housing that historically will have a greater risk for lead hazards. Thus, the City's first-time homebuyer program using HOME and SHIP funds will become a natural source of referrals as homebuyers, with young children or pregnant women, known to be purchasing older units will be required to have a visual assessment done prior to funding. Should the unit be determined to have lead hazards, it will be referred for hazard control. Another source is the Health Department who will refer units with children with EBL's >l0pg/dL. Compliance assistance packets including information on the Miami Unleaded Program, Title X compliance, and lead safe work practices will be included in packages sent to all owners of referred properties and a Miami Unleaded staff member will follow with a call. Lastly, Miami Unleaded's media campaign will also market the Program in an effort to both recruit applicants and to alert the target communities to the dangers of lead poisoning. Application forms for the Program will include qualifying information such as income, date of construction of the property, number and age of children occupying property, and proof of ownership. Community Development is committed to linking owners and families who are currently a part of Community Development's Section 8/Housing Programs to Miami Unleaded, Section 8 owner mailings will be also be conducted to notify owners to ensure compliance with 1012/1013 regulations. By expanding the supply of safe, affordable housing (including Section 8) in these communities, Miami Unleaded will be expanding the housing choices of residents receiving housing subsidies or housing assistance. In addition, the project will aid rental owners by improve the marketability of their units through the rehabilitation of non -compliant units and the promotion of compliant rental properties on the Program's Lead Safe Housing Registry. All referrals received will be entered promptly into the Program's database and reviewed for eligibility for Program services. The City estimates to take an application within 48 hrs of receiving a qualified referral if the schedule of the applicant will permit. In the case of units known to have a child with an EBL , the application will be taken within 24 hours. For the grant period, the City estimates receiving between 325 to 375 applications. The Program's Intake Specialist will review all applications and accompanying documentation to verify that the property meets the eligibility standards for preliminary screening and enrollment in the program. Non -qualifying applications will be referred to more appropriate resources, where possible. Mandatory criteria for preliminary enrollment in the program requires that the property be constructed prior to 1978, that children under the age of 6 or a pregnant women reside in the property if occupied, that the owner submits proof of ownership, that the tenant and/or owner meet the 5 Gasana J, Chamorro A. Environmental Lead Contamination in Miami Inner-city Area, httpa/www.ncbi.nlm.Hillgov/entrez/query.fcgi?emd Retrieve&db=pubmed&dopt=Abstract&list uids 6 66 % 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 33150. 2005-2006 Action Plan 38 HUD program income guidelines, that blood lead testing of children under age 6 in the property will be conducted, and that the owner agrees to comply with all applicable Title X requirements. Housing Units Built Prior to 1949 and 1979 The leading factor attributed to the high number of lead cases in the City of Miami is exposure to dust from deteriorating paint found 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. Approximately 81% of the housing units in the City of Miami were constructed before 1979, compared to 67% in Miami -Dade County.? This indicates that 81.% of the housing units in the City of Miami are potential lead -paint hazards. In the Neighborhood Development Zones, the number of homes built before 1979 increases to 84%, with the following neighborhoods showing the greatest risk: • East Little Havana (15,343 units built before 1979) • Edison Little River (10,642 units built before 1979) 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. Approximately 77% of these units are located within the Neighborhood Development Zones, with Little Havana, Overtown and Wynwood showing the greatest number of units built before 1979 occupied by low to moderate income households. Number of Children at Risk 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% 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. integration of Lead Paint Policies into Housing Programs 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 to reduce the incidents of lead poisonings among children ages six and under caused by lead -paint exposure. To achieve this, the City will integrate the following lead hazard evaluation and reduction efforts into its existing housing programs. ■ Inspections: 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. 7 US Census data was used to determine the number of housing units that were constructed before 1978 in the City of Miami. It should he 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. 2005-2006 Action Plan 39 ■ Abatement of Lead Hazards: 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. ■ Education: 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). Strategies to Reduce Lead -Paint Hazards In addition to the activities listed above, the City will undertake the following strategies to reduce the serious health problems related to lead -paint hazards. Strategy is Grant/Loan and Financing Plan The Miami Unleaded Program will perform lead hazard reduction under a two -tiered lead hazard reduction intervention approach. The Program will perform Low Level Interim Control Hazard Reduction Interventions in 150 properties in the target areas at an average cost of $7,000 per unit. Low Level Interim Control Hazard Reduction will involve lead -based paint stabilization, HEPA- Vacuuming, and lead specific wet cleaning. The Program will also conduct larger scale Lead Hazard Reduction Interventions in 120 properties at an average cost of $15,000 per unit. Program anticipates that approximately 50 % of the units enrolled and completed by the Program will be rental units and 50% will be homeowner units. The vast majority of units will be single family structures rather than multi -family dwelling units. The Lead Hazard Reduction Interventions will include window replacement and some abatement of components where warranted in accordance with the Scope and assessment. Due to the age of Miami's housing stock and the difficulty of salvaging deteriorated leaded windows damaged by moisture, window replacement will be a significant intervention strategy for the Program. Properties that require large-scale structural repairs (roof repair, gutter replacement, plumbing repair) to correct underlying defects that are creating paint destabilization will be coupled with funding from Community Development's rehabilitation program to complete a comprehensive intervention. By coupling lead hazard reduction funding with rehabilitation funding, Miami Unleaded will produce stable, safe, and affordable housing in the targeted communities. Based on significant housing rehabilitation work in compliance with the HUD Lead Safe Rules and Guidelines, the Program projects that it will complete units in accordance with the following unit production schedule: 2005-2006 Action Plan 40 Activity Time frame (days) Application Intake 3 days Application processing 5 days Unit selection 5 days Risk Assessment 5 days Scope of Work and Review 7 days Contractor selection 14 days Hazard Control 5 to 15 days (Relocation) Clearance Testing 3 days Total Program Completion Time 45 to 60 days The Program's goal is to hire contractors who have the capability to perform both the lead hazard reduction and the rehabilitation portions of the Scope. In situations where there are separate contractors for different aspects of the project, the Program's Project Director and Lead Program Inspectors will coordinate the lead hazard reduction phase with the rehabilitation work to insure that lead clearance is obtained prior to re -occupancy of the property. All lead hazard reduction work undertaken by the Program will be performed by State certified and accredited Lead Workers, Inspectors, and Risk Assessors. All lead hazard reduction work will be performed in accordance with the provisions of Title X, the HUD Guidelines, EPA regulations, and the City of Miami Code. Strategy 2: Final Inspection and Lead Dust Clearance Testing. Following the completion of the lead hazard reduction, private, certified Miami Unleaded inspection companies will perform visual inspections and lead dust clearance examinations of the properties. Property clearance inspections will be performed in accordance with all HUD and EPA regulations and guidelines and all propec—ti ies will pass lead dust clearance standards of 40 ug/sq.ft2 for floors, 250 -ug/sq.ft2 for window sills,_and 400 ug/sq.ft2 for window wells. Any property that fails initial lead dust clearance will have problem areas addressed or re -cleaned and retested to insure clearance standards are met. Strategy 3: Temporary Relocation The City will contract with apartment owners or hotels in the community to ensure the availability of lead -safe relocation units for families while lead hazard control activities are being performed in their units. For larger scale rehab units, the cost of the relocation will be made part of the loan and in situations where there is an insufficient fund in the loan, additional resources from CDBG or SHIP will be used for the relocation. The average cost of relocation is estimated to be $150 a day. This includes the provision of storage and stipend to the family. It is estimated that an average of 8 days will be needed for relocation, resulting in an estimated total cost of $1,200.00. The Program anticipates the development of a Lead Safe House for longer term temporary relocations. The Lead Safe House will be used for occupants of properties that need more than 10 days of relocation. 2005-2006 Action Plan 41 Miami Unleaded will develop a relocation plan to detail the logistical protocols that will be followed by the Program in performing or contracting for moving, storage, payment of daily stipends, and the securing of temporary housing facilities for the relocated occupants. The Lead Program Inspector will be responsible for implementing the relocation plan and insuring that all relocations occur prior to intervention and that families are returned to their homes promptly following lead dust clearance. In response to a known EBL referral, the child and his or her family may be temporarily prior to the commencement work if major lead hazards exist in the property. Permanent relocation assistance may also be offered through other housing assistance programs if the family of a lead poisoned child is residing in a property that is unsafe and cannot be remedied through the Program. For any property going through the Program that is vacant due to permanent relocation prior to the intervention, priority for re -occupancy of the property must be given to pregnant women and families with children under six years of age. The Program will satisfy all regulations under the Uniform Relocation Act in conducting its relocation operations. When required by the Scope, all belongings and furniture in the property will be removed, HEPA vacuumed and placed in storage while the work is proceeding. When safe and reasonable, in place containment of belongings will be utilized to avoid the time and cost of off -site storage, The Program will secure the services of a moving company to provide for the transport of the occupant's belongings to the temporary storage facility. Once the property has been cleared for re -occupancy, the Lead Program Inspector will arrange for the return of the occupants and their belongings to the property. Reduce the Number of Poverty -Level Families As a result of the Anti -Poverty Strategy discussed earlier, the City of Miami has undertaken a number of efforts and programs to reduce the number of residents living in poverty. Jointly the Department of Community Development and the Mayor's Poverty -initiative have put into practice a partnership strategically designed to support a holistic approach to poverty reduction with activities that focus on human services, affordable housing and economic development. These activities include the following; Holistic Anti -Poverty Approach • Economic development activities that generate living wage jobs and community sustainability • 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 rationale behind the Anti -Poverty Strategy is to merge and invest all available resources in targeted areas in order to obtain the biggest impact for the dollar. As such, the City seeks to reduce the number of poverty -level families in the Neighborhood Development Zones and Model Blocks by 2005-2006 Action Plan 42 supporting human development and employment programs that facilitate the creation and retention of job opportunities. The mission is to provide programs that work towards getting families out of poverty. Thus, the City will implement a comprehensive plan that will use its resources and efforts to develop a skilled and employable resident workforce capable of receiving living wage jobs and conquering the need for affordable housing. Other activities to reduce poverty include legal assistance, childcare, healthcare, transportation, housing, social services, financial literacy, economic enhancement and educational attainment. The strategy to combat poverty is not only to accomplish the listed attributes, but to sustain those attributes when accomplished. Develop Institutional Structure During the process of developing the 2004-2009 Consolidated Plan, the City of Miami developed a unified vision for Community Development actions that will serve as the institutional structure for cooperation and collaboration among public and private agencies. Specifically, the Department of Community Development sought to identify opportunities for cooperation and collaboration among city departments and other entities. The goal was to encourage city departments to work together in addressing the needs of the target communities and to develop inter -departmental agreements for coordinating projects and maximizing the use of funds. In addition, the City drew upon its working relationship with the Miami -Dade Housing Authority (MDHA), the Miami -Dade County Office of Community and Economic Development (OCED), the local Continuum of Care for Homelessness, and the Alliance for Human Services in order to foster and enhance coordination between the City, public housing providers and assisted housing providers. Many social service agencies, non-profit agencies, youth organizations, and community based organizations were also consulted. After several consultations with these organizations, the City determined that the Consolidated Plan and the annual Action Plans should: • Provide an interdepartmental plan for housing, economic development, and social services that will inform the Anti -poverty strategy. • Facilitate greater efficiency in the use of resources through collaboration and coordination among departments and agencies ■ Encourage information dissemination regarding projects and programs By institutionalizing this collaborative structure, the City of Miami will shape various programs into effective, coordinated neighborhood and community strategies. This will also facilitate the opportunity for strategic planning and citizen participation to take place in a comprehensive context that will reduce duplication of effort at the local level. Enhance Stakeholder Coordination The coordination process provides for stakeholder agencies and all interested parties to analyze and discuss local housing needs, priorities, and program strategies. As explained above, the Department of Community Development has served as the facilitating agency for this local process. To this end, the 2004-2009 Consolidated Plan provides a blue print to guide City actions in the direction of performance outcomes, such as improving neighborhoods, increasing homeownership, and raising income levels for all city residents. Primarily the plan guides City leadership and financial resources in route with the priorities set forth by the community. The plan is aggressive in its approach to leverage other funding and build partnerships. The strategic approach builds on the City strengths safeguarding efficient city services, business retention, preserving the housing stock and increasing income levels for all residents, The overall strategy is for the City to: 2005-2006 Action Plan 43 ■ Provide clear and eloquent public leadership for the identified initiatives • Endorse a performance based operation for all of the department's divisions and contracted sub -recipients, where goals and priorities equal accomplishments • Put into effect a performance based request for proposal process for all categories of funding • Fortify the partnering and collaboration of local government agencies, private organizations, and non -profits to increase leveraging potential ■ Publicly market the City's assets and aggressively leverage other financial support • Establish a unified vision and focus for the Model Blocks, the Neighborhood Development Zones and the Community Business Corridors ■ Work with developers to achieve acceptable environmental standards while not compromising the health and safety of the public ■ Prepare a plan for the City which identifies gaps in the continuum of services and support projects which fill those gaps The Community Development Department will strive to coordinate and develop individual plans for each Neighborhood Development Zone containing goals and strategies reflective of distinctive community priorities; yet cohesive with the city-wide vision. In subsequent years, the City's CDBG and other resources will be injected within the Mode! blocks. The City will pursue this venture in the forthcoming program year in coordination with the local HUD Community Development Planner (CAD). Public Housing (91.220 (f) (2)) It should be noted that the City of Miami does not manage public housing units, The Miami -Dade Housing Agency (MDHA) is responsible for this function; however, a large portion of the County's inventory is located within the City limits. 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 -fill housing initiative. It should be noted that of the total number of public housing units, only.72% are occupied. ---. Public Housing Activities Though the City of Miami does not operate any public housing, it is responsible for a limited number of Section 8 Tenant Based Assistance units. This is 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 public housing strategies detailed in this section is a summary of the activities of the City's five-year plan for housing choice vouchers 1. Activity: Section 8 Housing Assistance Consolidated Plan Reference Code: 1 RH (c) Strategy: Provide rental assistance to very low and low income residents through the Section 8 Program. 2005-2006 Action Plan 44 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 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, 5) Apply for additional Section 8 units or vouchers should they become available, 6) Leverage affordable housing resources in the community through the creation of mixed - finance housing —in particular, the City of Miami will direct CDBG funds towards housing management support for new construction homeownership projects and will make available local Surtax funds for rehabilitation of Section 8 multi -family rental projects with predominately eligible elderly tenants that have met their affordability term requirements. 7) Affirmatively market families of races/ethnicities shown to have disproportionate housing needs Targeted Outcome: Increase the affordable housing options for all eligible populations, and increase awareness of housing assistance resources among families of races and ethnicities found to have disproportionate needs. Source: Section 8 2005-2006 Action Plan 45 VIII. CDBG Community Development Block Grant As an Entitlement City, the City of Miami is dedicated to complying with the goals of the federal statutes in providing decent housing, a suitable living environment and economic opportunity for low and very low-income residents through its Community Development Block Grant (CDBG) Program. As such, projects included in the Annual Action Plan are designed to give the maximum priority to feasible activities that implement the national objectives: ■ To provide benefits to low and moderate -income families ■ To aid in the prevention or elimination of slums or blight • To meet other community development needs that have a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community Grants under the CDBG Program are awarded by the City of Miami for projects and programs that further these national objectives. Specifically, the City utilizes CDBG funds to carry out the following: • 108 Debt Service • Administration • Economic Revitalization • Housing • Quality of Life Enhancement - Capital Improvements Quality of Life Enhancement - Social Programs Reduction of CDBG Funds — Program Year 31 promises to be a painful transition year for the City of Miami in the area of public services due to the lessening of financial support. Several factors have contributed to the current situation. First, the City of Miami has experienced a considerable reduction in Community Development Block Grant (CDBG) funds in the last few years. Second, the federal government has established that no more than 15% of CDBG funds can be used for social services in the community. As a result of the reduction in CDBG funds, the City has had to downsize a significant number of community service agencies that provide social services. This was achieved through a painstaking and competitive approach in concurrence with a point rating criteria set forth in the RFP process for CDBG subsidy. Nevertheless, the City of Miami will continue strive to improve the economic opportunities and quality of life of its residents through the use of its CDBG funds and other resources. 2005-2006 Action Plan 46 Table 16: CDBG Program Year Funding "D13(: Program Year Funding FY 2005-2006 FY 2004-2005 FY 2003-2004 FY 2002-2003 Entitlement Allocations $9,398,140 $ 9,928,000 $15,132,000* $15,904,263* *Including close-out funds Community Development Strategy According to the Five -Year Consolidated Plan, the community development strategy for the City of Miami is firmly rooted in the concept of neighborhood revitalization. The City understands the importance of a vital and diversified economy, a growing workforce with competitive skills, and how that relates to healthy neighborhoods. As such, the focus of the strategy will be to work toward these interrelated ends. The strategy seeks to promote not only strong economic growth in its major employment centers but, also, renewed economic development in commercial areas throughout its neighborhoods. Further, the strategy aims to empower residents economically and bring physical renewal to distressed areas through new business activity. Specifically, the City of Miami will seek to stimulate neighborhood revitalization by concentrating funding within the Neighborhood Development Zones (NDZs), the Model Blocks and the Community Business Corridors (CBCs). The intent is to fuel development and encourage investment by focusing on areas that are poised for revitalization. As such, CDBG dollars will be directed to these target areas as much as possible. In particular, CDBG funds used for economic development activities will be concentrated within the CBCs. It is important to note, however, that due to the tremendous need for social programs in the City of Miami, some of the public service activities funded by CDBG must target broader geographic areas. This includes services for the elderly, the disabled, youth and other underserved populations. As a result, funding for CDBG activities are generally divided among the City's five Commission Districts based on the HUD formula allocation. The HUD formula takes into account the total population, number of persons living in poverty, and the number of overcrowded units in each area. The table below indicates the percent of funds that each commission district will receive based on the HUD formula. Table 17: CDBG Funding Allocation Percentage by Commission District Commission District District 1 Total Population 67,847 Persons in Poverty 19,060 Overcrowding Entitling Allocation lly District 21.2% 8,463 District 2 72,008 15,157 IMMIN 15.2% District 3 72,824 23,564 8,920 23.9% District 4 75,528 13,352 6,294 16.1% District 5 73,247 29,272 6,915 23.6% Total 361,454 100,405 35,719 100.0% Source: City of Miami Planning & Zoning 2005-2006 Action Plan 47 The following sections provide a detailed description of how the City of Miami will use CDBG funds to carry out its community development strategy and provide social services in the various target areas. Housing Based on the findings of the Housing Needs Assessment and the Housing Market Analysis in the 2004- 2009 Consolidated Plan, the top priority for the City of Miami will be to preserve affordable housing. The City will seek to accomplish this through its CDBG funds by supporting the Section 8 Rental Assistance Program, providing single-family rehab and residential code compliance assistance, supporting fair housing activities, and developing a lead -based hazard program. Below is a description of the strategies and outcomes related to these activities. Activities for Section 8 Rental Housing Assistance 1. Activity: Section 8 Housing Assistance Consolidated Plan Reference Code: 1 RH (c) Strategy: Provide rental assistance to very low and low income residents through the Section 8 Program. 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 of minority and poverty concentration. 4) Maintain or increase Section 8 ]ease -up rates by effectively screening Section 8 applicants to increase owner acceptance of the program. 5) Apply for additional Section 8 units or vouchers should they become available, 6) Leverage affordable housing resources in the community through the creation of mixed - finance housing —in particular, the City of Miami will direct CDBG funds towards housing management support for new construction homeownership projects and will make available local Surtax funds for rehabilitation of Section 8 multi -family rental projects with predominately eligible elderly tenants that have met their affordability term requirements. 7) Affirmatively market families ofraces/ethnicities shown to have disproportionate housing needs Targeted Outcome: Increase the affordable housing options for ail eligible populations, and increase awareness of housing assistance resources among families of races and ethnicities found to have disproportionate needs. Source: CDBG, Section 8, and Miami -Dade County Surtax Activities for Homeowner Assistance 1. Activity: Single Family Rehab and Code Violation Elimination Assistance Consolidated Plan Reference Code: 1 HA (a) 2005-2006 Action Plan 48 Strategy: Provide rehab assistance to homeowners for deferred maintenance, home repairs and elimination of code violations. Targeted Outcome: Improve the quality of existing owner occupied housing through rehab assistance. Source: CDBG and SHIP Fair Housing Activities The Analysis of the Impediments to Fair Housing Choice (Al) is required of state and local governments that receive federal funds from HUD. This primarily includes Community Block Grants (CDBG) and HOME Investment Partnerships Program (HOME). AI is an assessment of housing and housing related policies and practices in use throughout the Jurisdiction that inadvertently or deliberately prevent its residents to choose where they live. The analysis includes a discussion of the barriers to housing choice within the City of Miami, a plan of action to overcome the identified impediments, and a strategy to maintain records and results of the actions taken. Although the AFFH obligation arises in connection with the receipt of Federal funding, the obligation extends to all housing and housing related activities in the City of Miami whether publicly or privately funded.' Factors that could restrict housing choice include, but are not limited to: ■ Discrimination based on race, color, national origin, sex, religion, familial status and disability; ■ In addition to the federally protected classes listed above, Miami -Dade County Code Chapter I IA prohibits discrimination on the basis of race, color, religion, ancestry, national origin, gender, pregnancy, age, disability, marital status, familial status, and sexual orientation in housing, public accommodations, and employment other than government employment; In 1998, the Human Rights Ordinance amended the Miami -Dade County Code by prohibiting discrimination based on sexual orientation in housing, credit and finance, public accommodations, and employment; Lack of affordable housing; • Lack of housing that is accessible to the disabled; ■ Lack of housing that is accessible to persons holding Section 8 vouchers due to discrimination; ■ Location -of jobs and availability of housing in the area; • Lack of reasonable and accessible transportation services; • Inability to obtain a mortgage; and • Inability to obtain homeowner's insurance because of where the individual lives. HUD recommends that the Al be updated every three to five years, or in accordance with the timeframe of the Consolidated Plan. The City of Miami last conducted an Al in 2002, The City's 2004-2009 Consolidated Plan, a required five-year plan that describes a community's needs, resources, a US Department of housing and Urban Development, Office of Fair Housing and Equal Opportunity, Fair Housing Guide. 2005-2006 Action Plan 49 priorities, and proposed activities to be undertaken with HUD funding. The City of Miami updated its Consolidated Plan in 2004 and is available to the public on the City of Miami Department of Community Development website: httn://ci.miami.il.us/communitydevelopment/ConPlan/index.hcm 1. Activity: Fair Housing Consolidated Plan Reference Code: 1 FH (a) Strategy: Provide funding for fair housing services, landlord tenant mediation services and analysis of Impediments to Fair Housing Study. 1) Support a program performing fair housing counseling, investigation, and mediation services to respective individual's victimized by discriminatory practices. Targeted Outcome: Guarantee and secure the fair housing rights of all individuals including special needs groups and minorities. Source: CDBG Lead -based Paint Activities 1. Activity: Lead -based Paint Hazard Program Consolidated Plan Reference Code: 1 LP (a) Strategy: Implement a comprehensive Lead -based Paint Hazard Program that provides lead -based paint mitigation, prevention, outreach and education services. 1) Strive to integrate lead hazard evaluation and reduction activities into existing housing programs. 2) Continue to provide quality assurance inspection monitoring and tenant education. Targeted Outcome: 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: Lead Base Grant Pubic Service Delivery Public Service activities must be directed toward enhancing the health, safety, and overall well being of low and moderate income residents and persons with special needs. The specific activities that will be funded with CDBG dollars include: elderly services, youths services, services for the disabled, childcare, job training, substance abuse programs, and ex -offender rehabilitation. 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% public service cap. The public services included are limited to HUD compliance regulations. (24 CFR. 570 2005-2006 Action Plan 50 Sec. 201 (e) and 207) The following provides a list of the public service activities and their respective strategies and outcomes. Activities for Elderly Services 1. Activity: Nutritional Services (elderly meals) Consolidated Plan Reference Code: 1PS (a) Strategy: To support agencies providing nutritional services and activities to low and moderate income senior citizens, in a manner where health, dignity, and nutritional needs are excelled. Targeted Outcome: Increase the quality of health for elderly citizens through the reduction of malnourishment. Source: CDI3G and Transportation Funds 2. Activity: Recreational Activities for the Elderly Consolidated Plan Reference Code: 1 PS (b) Strategy: To reduce isolation of income groups through de -concentration of housing for lower income elderly persons. Targeted Outcome: Reduce isolation and deprivation of elderly citizens by promoting quality of life enhancements in a supervised setting. Source: CDBG 3. Activity: Transportation Services Consolidated Plan Reference Code: I PS (c) Strategy: To link elderly persons in need of support services to essential community resources. Target Outcome: Provide elderly residents who are destitute with available community resources which fulfill social and monetary gaps in the continuum of care, Source: CDBG Activities for Youth Services 1. Activity: Recreational Activities, Tutoring, Arts, Counseling, and Mentoring (Preference given to activities executed on City Parks) Consolidated Plan Reference Code: 3 PS (a) Strategy: Sponsor programs that assist in the various stages of child development, such as physical, mental, social, nutritional and emotional development. Targeted Outcome: Prepare children and youth to transition into successful adults. Source: CDBG 2005-2006 Action Plan 51 Activities for Childcare/Head Start 1. Activity: Childcare Service Consolidated Plan Reference Code: 4 PS (a) Strategy: 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: 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 Activities for Disabled Services 1. Activity: Programs for the Disabled/Handicapped. Consolidated Plan Reference Code: 2 PS (a) Strategy: Amplify the supply of supportive and transitional services required to enable persons with special needs to live with dignity and independence Targeted Outcome: Promote a stable and economically sound environment coupled with a healthy supportive system through the provision of compassionate services. Source: CDBG Activities for Job Training 1. Activity: Job Skills Training Programs Consolidated Plan Reference Code: 6 PS (a) Strategy: Assist economically disadvantage individuals and others who face barriers to employment enhance their quality of life through the attainment of marketable labor skills —or by improving their earning capacity. Targeted Outcome: To prepare youth and unskilled adults for entry into the labor force. Source: CDBG 2005-2006 Action Plan 52 Activities for Substance Abuse Services 1. Activity: Substance Abuse Programs Consolidated Plan Reference Code: 5 PS (a) Strategy 5 PS (a): To support programs designed to reduce drug and alcohol dependency in selected neighborhoods by allocating funds to Commission Districts identifying this priority in the local public hearings, as part of the Citizen Participation process. Targeted Outcome: Provide a supportive network, structure and environment that will assist individuals in remaining drug -free and alcohol dependent. 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 moderate income persons attain employment in conjunction to facilitating small business development. The economic development 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, 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 Community Business Corridors. Below is a description of the economic development strategies and outcomes. Activities for Job Creation and Retention I. Activity: Job Creation Consolidated Plan Reference Code: 1 ED (a) Strategy: 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: Create employment opportunities in financially distressed neighborhoods while promoting job creation in the Commercial Business Corridors, to include areas within the vicinity of the corridors as well. Source: CDBG 2. Activity: Job Retention Assistance to Businesses Consolidated Plan Reference Code: 2 ED (a) 2005-2006 Action Plan 53 Strategy: To promote the long term viability of the local area residents expanding economic opportunities for extremely low, low and moderate income persons. Targeted Outcome: Develop business attraction and retention programs within the Commercial Business Corridors creating a chain reaction that will sprout economic development activities for low and moderate income residents. Source: CDBG Activities for Micro -Enterprises Assistance 1. Activity: Working Capital, Financial Support and Business Assistance Consolidated Plan Reference Code: 3 ED (a) Strategy: 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: Improve the financial growing potential of small business firms in the Commercial Business Corridors that wilt increase the demand for labor and create living wage jobs. Source: CDBG Activities for Technical Assistance 1, Activity: Technical Assistance for Start Up Businesses Consolidated Plan Reference Code: 4 ED (a) Strategy: 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: Secure smallbusiness incubators that provide inexpensive space to include support services, managerial advice aidconsulting services for business activities that benefit low and moderate income persons. Source: CDBG Activities for Commercial or Industrial Improvements (Rehabilitation) 1. Activity: The Facade Improvement Program Consolidated Plan Reference Code: 4 ED (a) 2005-2006 Action Plan 54 Strategy: Execute facade improvements along the Commercial Business Corridors where there is a prospect of serious business investment, dividing the cost with business owners. Targeted Outcome: The improvement of street trees, landscaping, sidewalk replacement, awnings, signs, lighting and other exterior facade improvements. Source: CDBG Activities for Code Compliance I. Activity: Code Enforcement Consolidated Plan Reference Code: 5 ED (a) Strategy: 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: Improved safety and appearance of commercial corridors and neighborhoods. Source: CDBG Other 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. 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. I. Activity: Provide funding for the acquisition, construction, reconstruction or installation of eligible public facilities in response to the specific priority facility needs of varying communities. 2005-2006 Action Plan 55