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HomeMy WebLinkAboutExhibit 3AMINORITY BUSINESS ENTERPRISE (MBE) OUTREACH The City of Miami promotes minority services by awarding outside work to Minority Business Enterprises (MBEs). Ordinance No. 10062, as amended, entitled the Minority and Women Business Affairs and Procurement Ordinance of the City of Miami, Florida sets forth ". . . a goal of awarding at least 51 percent of the City's total annual dollar volume of all expenditures for all goods and services, to Black, Hispanic, and Women minority business enterprises on an equal basis." In this regard, extra efforts are made by the department to ensure that minority and women -owned businesses (WBEs) are aware of the programs of the department and the ways they can do business with the City. MBE outreach efforts ensure that Proposals and Request for Qualifications include criteria regarding a plan to recruit MBE/WBE businesses related to contractors, consultants, and services. A developer will be required to demonstrate outreach to M13E/WBE businesses for contracted services including but not limited to its General Contractor (GC) selection of its subs. The requirement will be included in the Loan Agreement and disclosed at pre -construction conferences. Through the City of Miami Community Development Department's First Time Homebuyer and Single Family Program, there are outreach efforts include presentations to various minority business associations in the City. The businesses include realtors, mortgage professionals, contractors, and consultants. The department through its section 3 and Davis Bacon Staff obtains a record of MBE/WBE. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 61 IMPEDIMENTS IMPEDIMENTS TO FAIR HOUSING CHOICE AND THE RECOMMENDATIONS TO ADDRESS THEM PUBLIC SECTOR Impediment FH1: Lack of Inclusionary Zoning Current Zoning does not provide for more inclusive development of housing for lower -income people and families. However, this and other issues will be addressed in `Miami 21", the master planning process currently underway in the City of Miami. Inclurionary zoning are laws that require part of each new housing development to be affordable. This is an approach to address affordable housing that hasn't been attempted in Miami. In fact, few, if any, are on the books in Florida. Locally the concept of inclusion y Zoning has gained in importance and _political will as an option to address the need for low- and moderate income housing in a real estate market eclipsing wage increases. .Both the County and City mayors have recently expressed their interests in developing inclusionay Zoning. City of Miami Mayor Manny Diaz stated in his May 2005 Slate of the City address that he was directing the Miami 21 effort to incorporate inclusionary Zoning so that the City's new code include incentives for developers to build and finance affordable housing. Miami -Dade County Mayor Carlos Alvarez stated in his Mayors 2005 message that the County will continue to develop an Inclusionay Zoning Ordinance for Workforce Housing to allow developers to voluntarily increase and integrate low to moderately priced housing with market -rate housing to achieve a more diverse and well -integrated community. Recommendations FIi 1.1 The Community Development Department will work together with the City of Miami Planning Department's Miami 21 master plan in evaluating the strategies for inclusionary zoning for the City of Miami. FH 1.2 Request updates on new policies and identify opportunities for collaboration with the Miami -Dade County Planning and Zoning Department and the Miami -Dade Inclusionary Housing Task Force. _ FH 1,3 Develop a coherent Citywide affordable housing policy that includes strategies to integrate mix -income households FH 1.4 Explore the possibility to adopt incentives to promote mixed -income housing development, such as increasing the number of new units that can be built in a given development in exchange for dedication of a certain percent of the units for low -and moderate -income households. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 62 Impediment FH2: Scarcity of Developable Vacant Parcels There are few developable residentially zoned vacant tracts in the City of Miami,' a lot is determined to be developable for a single family dwelling :fit meets the minimum criteria of 4,000 square feet. In addition, it should be noted that many of the City r available vacant parcels are scattered and situated in the City s most economically distressed neighborhoods. These lots would have to be developed on an in -fill basis rather than developed on assembled land that would realize the cost - savings attributed to economies of scale or higher density housing developments. Recommendations FH 2.1 Develop a formalized infill program in which the City would make available city -owned parcels to developers through a Request for Proposal (RFQ) process. FH 2.3 Include in the infill Program a strategy to address the minimum square footage problem through changes to regulations and the modification of the design of infill housing to fit on smaller lots. Impediment FH3: High Rates of Segregation in Public Assisted Housing The City of Miami : r responsible for administering a portion of the Section Program as well as the County s HOPWA program. Currently, there are high rates of segregation with both these programs —but it is self imposed segregation. African American and Hispanic voucher clients tend to choose to rent in neighborhoods that are majoriy African American or Hispanic respectively; likewise single White men tend to prefer to live in Miami Beach. Recommendations FH 3.1 Continue to educate clients about the Fair Housing Act that allows clients to choose where they want to live and place no limitations on that choice other than a rent cap (It should be noted that all policies and procedures are consistent with the requirements of Federal, State, and local law and HUD regulations and guidance). FH 3.2 Provide technical assistance and training in affirmative marketing to recipients of City administered federal funds. In particular, provide strategies tharreach and appeal to all segments of the community. Impediment FH4: Federally Funding Decreasing Annually for Public Housing Assistance Due to a reduction in funding from HUD, the City has had to make a difficult decision between providing fewer vouchers or serving as many clients as possible but reducing the coverage. Effective Fiscal Year 31, HOPWA will establish a rent standard of 95 percent of the Fair Market Rent (FMR) and Section 8 will be at 90 percent of FMR. Therefore, extremely low income families that participate in the voucher program are left vulnerable to due to the gap. If current landlords do not accommodate the reduction, many families may be displaced and find it difficult to find new housing options below FMR, especially in u real estate market in which rent prices are increasing. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 63 Recommendations FH 4.1 Continue to attempt to accommodate as many HOPWA clients as possible. FH 4.2 Possibly tighten restriction on the number of bedrooms allowed per household size to reduce the amount of subsidy per household. Impediment FH5: Federally Funded Public Assisted Housing Clients May be Occasionally Turned Downby Landlords DUE to prior Experiences with Assistance Programs Occasionally landlords deny individuals that use public assistance vouchers because they do not want to participate in public housing programs. The lack of interest is in pail due to the infciencies of a number of the other PHAs; in particular, complaints have focused on past due rent. Recommendation Fll 5.1 Provide information that demonstrates the City's successful history of timely payments to other landlords. In addition, post on the City's website the problems standard policies, changes to polices (i.e. the reduction in FMR coverage), and Frequently Asked Questions (FAQs) by landlords. wt Impediment FH6: No Area -wide Cooperative Effort to Address Fair Housing Issues Despite the great need to address fair housing issues in the region, there isn't any formal mechanism to for cooperation to develop regional solutions among jurisdictions that constitute the Miami -Dade metropolitan area. In particular, there has been no or little cooperation between the agencies responsible for housing in the City of Miami and Miami -Dade County. Responses to challenges are not coordinated and opportunities for collaboration are never communicated Recommendations FH 6.1 Identify fair housing activities and efforts that can be coordinated with the Miami -Dade County Office of Egual Opportunity Board (MDCEOB). FH 6.2 Develop a Memorandum of Understanding (MOU) with the MDCEOB to implement the identified activities. PRIVATE SECTOR (js - /y7}a�1 �gq� p�,TIQ 5� Impediment FH7: Disparate Service/Under-service in Private Lending to Minorities 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 64 Despite claims from key informants that federally regulated banks and credit unions have been Jairly aggressive in complying with the Communi y Reinvestment Act ((RA) commitments, the analysis of past and present HMDA data shows a continuing pattern of disparate service and underservice in private lending to minorities. When the HMDA data as analyzed individually by race and ethniciy, African Americans and sometimes Hispanics showed higher rates of failure for conventional loans applications and a higher level of FHA lending. A high number of FHA loans are an indicator of discrimination in the conventional market. Recommendations FI 7.1 Develop and implement steps to foster conventional lending and other banking services in neighborhoods that appear to be underserved or to specific groups of citizens that appear to be underserved, in particular in the African American neighborhoods. FH 7.2 Target existing financial literacy programs (ACCESS Miami) in African American neighborhoods. During outreach efforts, try to determine causes for the low percentage of Black applicants for home loans. FH 7.3 Regularly monitor reports of Financial institutions subject to HMDA. Obtain reports from banks and other financial institutions showing their investments in lower -income neighborhoods; the data should indicate the location, race, and ethnicity of loan recipients. Impediment FH8: Predatory Lending and Abuse of the Subprime Market Predatory lending: South Florida, with its high concentration of African Americans, Hispanics and senior citizens, is considered "a prime target" for predatory loan companies that seek out financially unsophisticated consumer. Key informant interviews have indicated that minorities, the elderly, and women are particularly targeted by predatory lenders in the City of Miami. The lack of a coordinated anti predatory lending effort by the multiple agencies attempting to address the issue, the lack of reliable data about predatory lending and the victims, and language proficiency issues among the City s diverse population all complicate effective outreach efforts to vulnerable populations. Abuse of subprime loans: Today s issue isn't so much the access to loans as it was in the past, but the access to fair loans. Key informant interviews have indicated that abuse of subprime loans are commonplace. There are reports of lenders that exploit borrowers, for example, by charging unfair interest rates that do not reflect the real risk of the borrower (especially to minorities) or adding to the loan unnecessay fees and charges for unrelated services. Language proficiency issues among the City's diverse population and a lack of understanding of the lending industry (particularly by the City's large immigrant population) make the City'.r residents especially vulnerable to abuses of the subprime market. Compounding the problems are that many unregulated companies offer subprime loans to individuals as ways to get ea y credit. Recommendations FH 8.1 Develop and implement financial literacy programs through the Mayor's ACCESS Miami program. Ensure that programs are available in English, Spanish, and Creole. FH 8.2 Explore opportunities to collaborate and/or leverage funds for anti -predatory initiatives with the County and other local agencies. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 65 FH 8.3 Develop media campaign that will educate the City's residents about fair housing rights, including the right to fair loans and the dangers of predatory lending. FH 8.4 Though the City does not underwrite predatory loans and has standards (based on debt to income ratios) in place to deny loans that appear predatory, more specific policies are needed that restrict interest rates, points charged on a loan, and disallows certain loan products deemed unnecessary. A new anti -predatory underwriting policy for First term mortgages that receive the City's assistance for down payments or closing costs should include the following: - The term of the loan must be 30 years -- The interest rate must be fixed and cannot be more than 7.00 percent (review and adjust for changes in interest rates periodically) - No adjusted rate mortgages - No prepayment penalties - Loan must be full documentation only. No stated income and/or assets loans. - The total percentage charged for Discount, Origination and Broker fees cannot exceed 2 points. - All other lending fees (example, application fees, processing fees, tax service fees, administration fees, etc) must be reasonable. However, they cannot exceed $500 or 0.5 percent of the loan amount, whichever is greater. gkfer,t, to •yr" Impediment FH9: Lack of a Coherent Citywide Affordable Housing Policy The unprecedented real estate market described earlier in this report has heightened the need for a coherent city-wide affordable housing policy. The increasing home prices and rents are an impediment to low-income and moderate -income populations because they cannot afford to continue to live in many of the neighborhoods that are being revitalized. Thus an affordable housing poliy will provide clear and formulated strategies for oversight to maintain the current affordable housing stock and increase the inventory of affordable hosing stock to comply with fair housing laws. Land based policies can also be addressed (such as mixed use and transit -oriented development) which can diversi§ where affordable housing is built and bring affordable housing to places where affordable housing in needed in the City. Recommendation FH 9.1 Develop a clear affordable housing policy. The policy should include program strategies that coordinate and integrate the use of the city's future affordable housing trust fund. Impediment FH10: Not Enough Affordable/Workforce Housing Units to Meet the Needs of City Residents 2005 -- 2010 City of Miami Analysis of Impedirnents to Fair Housing Choice Page 66 It is eminent that the terra affordable housing is no longerjust a euphemism Ibr low income families. Recent studies reveal that many middle-class working citizens cannot afford to live in the communities where they live. In fact, home prices in Miami -Dade County have risen 85 percent .since the start of 2001, nearly double the national average; home prices in the first quarter of 2005 were 21 percent higher than ayear ago.S2 The greater Miami area, in terms of increasing price and the amount of new construction, continuer to lead in the nation's real estate market. In 2000, the median price of a home was $137,800, now in 2005 that same home has a median price of $333,600; a home in the area has appreciated 27 percent just in the past 12 months.53 Therefore, many neighborhoods in the City of Miami are experiencing significant deterioration in housing affordability. Some of these reasons for the lack of affordable housing are outlined in the findings section of this chapter; they include, but are not limited to: the high cost of land and subsequent result of affordable .housing developers changing to market rate projects, strict building codes, high property taxes due to increases in properly values, the high cost of obtaining home insurance, red tape/government bureaucracy, and Davis -Bacon Prevailing Wage regulations. Recommendations FH 10.1 Continue to advocates on behalf of affordable housing developers streamlining the application process, in the course of endorsing the following: - Impact Fees; - Streamlining the Administrative Process; i. Community Development Department ii. Building Department iii. Planning Department iv. Zoning Department — Release of Liens. FH 10.2 Continue to implement the actions to increase affordable housing identified in the 2004- 2009 Consolidated Plan. FH 10.3 Adopt a formal Infill Program. FH 10,4 Establish an Affordable Housing Trust Fund. FH 10.5 Identify opportunities for intergovernmental collaboration to address housing affordability issues. In particular, examine the most effective manner to partner with the County, State, and Federal to coordinate activities and leverage funding. FH 10.6 Require strong affirmative marketing programs for all affordable housing developments using City administered Federal funds. Impediment FH11: Housing Discrimination on the Basis of Race, Color, National Origin, Religion, Sex, Familial status, and Disability 52 f bid. 53 [bid. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 67 1-IIJD research suggests that as much as 80 percent of housing discrimination goes unreported. If this is true, then the Ciy of Miami has many more cases of housing discrimination than it currently known. Recommendations FI-T 11.1 Develop a educational fair housing rights campaign for City residents that will help them identify and challenge discrimination (see FH 15.1 for more details) F1-I 11.2 Consolidate the fair housing complaint intake process and improve the monitoring system (see FH 12 and FH 13 for more details) FH 11.3 Conduct fair housing testing within the City of Miami (see FH 13 for more details) FH 11.4 Ensure the continued availability of comprehensive fair housing enforcement by entering into an agreement with MDCEOB. Fl-i 11.5 Provide fair housing education and training to housing providers to ensure compliance with fair housing laws. PUBLIC AND PRIVATE SECTOR IFiA,I;_ Asitilifte arxt�;n.Nxustd Mai:ar, ikxr� rx'. Impediment FH12: Improve Monitoring of Housing Discrimination Complaints that Occur within the City's Jurisdiction Though the MDCEOB is charged with conduct fair housing enforcement, the City of Miami can assist by improving the monitoring of complaints that occur within its jurisdiction. In particular, City should better compile complaint information that includes: 1) .Basis for which the complaint was made (ie. race, national origin), 2) Issues (i.e. terms and conditions, eviction), 3) Disposition (status of the complaint, i.e. settled, no cause), and 4) Respondent .zip codes (where the discrimination took place). This information would allow the City to identifytrends in fair housing discrimination and take proactive solutions. -_ Recommendations FH 12.1 Establish an agreement with MDCEOB to provide fair housing complaint intake training to the City of Miami to ensure that all the necessary information is acquired to effectively conduct monitoring. FH 12.2 Explore an agreement with the various fair housing agencies to provide the City of Miami the information collected from the complaints; ideally complain data would be reported on a quarterly basis. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 68 Impediment FH13: Housing Discrimination Complaint Intake Process is Fractured Currently there is a fractured complaint intake process for the individuals that report a housing da.rcrimination incident. A complaint may be reported with HOPE, the MDCOEOB, the local and national HUD office, or with the City of Miami; all of which have not coordinated nor shared information. The lack of a centralized system to intake complaints leads to redundancy from a programmatic standpoint and public confusion on where to place a claim. Recommendations FI-I 13.1 Centralize fair housing complaints that occur within the City by directing complaints to 311 CitiStats and/or the City's Hotline. Impediment FH14: Improve the Amount of Fair Housing Testing within the City of Miami Currently there isn't a targeted effort to conduct testing for fair housing discrimination within the City of Miami. Recommendations FH 14.1 Enter into an agreement with a fair housing testing trainer to provide services to the City of Miami and recruit new testers. FH 14,2 Conduct random fair housing testing in the City. FH 14,3 Conduct targeted fair housing testing based on the quarterly reports if trends (i.e. geographic concentration of complaints by zip code) are identified in the monitoring process. V. Impediment FH15: Lack of Public Awareness of Fair Housing Rights Though the Fair Housing Act prohibits discrimination, HUD research suggests that more than 80 percent of people that experience housing discrimination fail to report the incident. One can infer that fair housing complaints have also been underreported in the City of Miami (approximately a total of 127 complaints were made in 2003 by ay residents). A key informant interviewed for this report speculates that underreporting may be due to a lack of knowledge of fair housing rights (especially in the immigrant communiy) nor may they know where to report an incident. Recommendation FH 15.1 Implement a fair housing information campaign that specially targets City residents and clearly informs the public about fair housing rights and the Miami -Dade County Human Rights Ordinance. — Develop marketing collateral (i.e. brochures, post cards, Public Service Announcements (PSAs), web site) in English, Spanish, and Creole; all material 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 69 should specify where a resident should call to report a complaint. Use HUD developed collateral (i.e. print, radio, and television ads)." - Include fair housing information during the Section 8 and HOWA intake process and at the time of recertification. - Establish a mailing list of existing Section 8 and HOP\VA clients and periodically mail fair housing information. — Identify where it is best to provide fair housing collateral (i.e. Neighborhood Enhancement Team (NET) offices, public places such as libraries, and social agencies such as the welfare office). — Develop a media campaign using the 311 system - Coordinate with local fair housing agencies (i.e. MDCEOB) to find opportunities to leverage resources and organize outreach activities. — Conduct an annual mass media campaign during the Fair Housing Month each April. FH 15.2 Continue to implement the Affirmative Fair Housing Marketing Plan; ensure that outreach includes developers, realtors, landlords, financial institutions and the minority community. Wiitatt Impediment FH16: Mobility Impaired Individuals Lack Access to Housing with Accommodations and Modifications for the Disabled Under current law, the majority of federally supported homes do not have to meet any accessibility standards other than the seven requirements /fisted previously in this report. This creates unnecessary barriers for people with mobility impairments. Although there's no legal requirement, the U.S. Dept. of Housing and Urban Development encourages vuitability features in single family housing built with federal dollars. 'Visitability" refers to single family housing designed in such a way that it can be lived in or visited by people with disabilities. In particular, visitabiliy as defined by the legislation, the Inclusive Home Design Act. H.R. 2353, are three specific accessibiliy standards: (1) at least one accessible, or "<ero step, "entrance into the home; (2) 32" clearance doorways on the main level,' and (3) one wheelchair accessible bathroom. Recommendations FH 16,1 Incentivize local affordable housing developers to adopt the visitability standards by providing bonus points on responses to Request for Proposals (RFPs) that meet the criteria. FH 16.2 Conduct random testing of the new housing developments to ensure that technical requirements are in place for accessibility to buildings and facilities by individuals with disabilities under the Americans with Disabilities Act (ADA) and the Fair Housing Act. 54 To sec [-IUD developed collateral, please visit HUD's website at: http://www.hud gov/offices/rhea/adcampaign.cfm 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 70 OTHER IMPEDIMENTS NEIGF3, Qi�1 ,O Td t � 4 q11 . 3.w}geff z: .,.: Impediment FH16: Weak Participation in the Labor Market Despite the falling unemployment rates in the Greater Miami area, there isn't any updated information regarding labor participation. According to the 2000 Census, there is a weak participation of the City'.r residents in the labor market. The Brookings Instituter Living Ciy report `Miami in Focus, "states that only half of the working age adults in the CO) were employed or looking for work in 2000 (the lowest participation among the nation'r largest 100 cities). Furthermore, the report found that the Ciy of Miami has the lowest median income among the nation's largest 100 cities, a shrinking middle class, and has neighborhoods where 40 percent of the residents live in poverty. The lack of padicipation in the labor force and its impact on income can significantly hamper a family's choice in housing,• particularly when income has remained flat but the housing costs are at an all time high. Recommendations FH 16.1 Continue to address the economic development component of fair housing through the existing Minority Business Enterprise (MBE) Plan. FH 16.2 Create job opportunities in financially distressed neighborhoods (as identified in the 2004-2009 Consolidated Plan). FH 16.3 Develop business attraction and retention programs (as identified in the 2004-2009 Consolidated Plan). Impediment FH17: Spatial Mismatch -Homes/Jobs/Public Transportation According to the Brookings Institute's Living City report `Miami in FOCUS," only 45 percent of the C'iy :r working residents are employed within the City. De. pite the fact that the Count's Central Business District (CBD) is located in the City, the employment market has become increasingly suburbanized. The consequences have been a disconnect from the growing suburban employment market due to the lack of and/or inefficient public transportation options from the ciy core to the suburbs. In particular, the report found that the Ciy's Black residents may be especially disconnected from the job market outside the City since 40 percent do not have access to car. Recommendations FH 17.1 Continue to address the economic development component of fair housing through the existing Minority Business Enterprise (MBE) Plan. FH 17.2 Encourage a transportation Link with affordable housing by providing bonus points in the RFPs for proposals that develop affordable housing opportunities near public transportation 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 71 FINDI NGS The real estate boom the City of Miami has experienced in the past few years has brought a new set of challenges. Among these challenges is the mounting pressure of gentrification brought about by the City's historic population boom; in particular, for working families that live in neighborhoods in close proximity to downtown (i.e. Overtown, Wynwood, and Little Havana). Thus, while the available land supply is being consumed for more expensive housing, a significant gap between what the City's families earn and the cost of housing continues to widen. In conducting research for this report, a number of affordable housing barriers were identified that may in one way or another impact fair housing. The barriers listed below are beyond the scope of this plan, but were deemed important enough to mention as findings. Rising land and construction costs are the most significant factors determining high housing costs: 'l'he rising cost of land available for development serves as a significant barrier to development of affordable housing. Though the price of land varies considerably in different parts of the City of lvliami, all neighborhoods are experiencing both land and construction costs. 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 —even with government subsidies many private affordable housing developers are exiting the market due to the minimal profit margins that could be improved by developing market rate projects. Upscale development, has inundated the local housing market. Thus, creating an unbalance for the local market by pricing out the cost of land available at fair market value. As the assessed values of real property has increased in the City of Miami, so has the property taxes: Despite the City of Miami having continually lowered the millage rate over the past five years (the rnillage rate is at its lowest point in a half a century), property taxes have skyrocketed nonetheless due to increases in property values. Property taxes are not only a problem for new home owners, but also for current owners that are rehabilitating aging housing stock. The upgrades impact the value of the property and the assessed value and, therefore, resulting in higher property taxes. South Florida building codes increases the cost of affordable housing production: 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 these building codes increase the costs of affordable housing production (i.e. the requirement to install hurricane shutters on all new construction projects). The 50 percent rule increases the cost of affordable rehab: Archer impediment includes a regulatory barrier known as the "50-percent rule: that mandates new construction standards if rehabilitation costs exceed 50 percent of the value of the home being renovated. Similar to the South Florida Building Code, the 50 percent rule also ensures that rehabilitated buildings are safe (i.e. hurricane shutters are added, electricity updated, sprinklers added to multifamily housing). However, the increase in cost to rehabilitate these structures also affects the affordability. This is particularly a concern with multifamily structures that do not have funds set aside, except for tax credits, to offset the cost of bring the building to code. As stated in the housing section of the chapter "Jurisdictional Background" in this report, the City of Miami has lost in the past decade a significant portion of its multifamily housing stock of structures containing 5 to 19 units; a housing stock size that that the City consider ideal for affordable rent. The loss in these structures is in part due to the fact that it is more profitable for the owner of the buildings to sell their properties to developers of market rate new construction, than it is to assume the expense of rehabilitating the building. 2005 -- 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 72 Current land use and zoning regulations have been a "disincentive" to develop housing, especially affordable housing: Currently, the City of Miami uses "special districts" in locations throughout the City to provide for greater densities, uses and design standards. The problem is that the existing code focuses on what is allowed, rather than what is desired. It has been further complicated by additional amendments, resulting in a voluminous set of regulations that creates conflict and frustration amongst developers and residents alike and is clearly one of the greatest "disincentives" in developing housing, especially affordable housing. The City's Miami 21 project is expected to address many of these issues. The cost of home insurance can put homeownership out of reach: The increasing cost of home insurance can put homeownership out of reach especially for many of Miami's families. In Miami, the problem is aggravated due to a variety of factors that impact the cost of insurance: 1) The increasing value of the real estate market 2) the exposure to hurricanes, 3) the escalating costs of building materials that leave many homes underinsured (especially condos), 4) the aging housing stock of which the majority -- 62 percent were built prior to 1970, and 5) the high percentage of low- income families (41 percent make $18,000 or less) that may have higher insurance scores. There is an assumption that the Davis -Bacon prevailing wage increases the cost of affordable housing: Davis -Bacon Prevailing Wage (Davis -Bacon Act of 1931 goes into effect when federal dollars are used to pay housing construction or rehabilitation labor costs in projects with multifamily with more than 11 units. This 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, developers often complain that the increased cost results in higher housing construction expenses. A cost analysis would be necessary to determine how much the costs are truly impacted by the Davis -Bacon Prevailing Wage. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 73 CONCLUSIONS AND RECOMMENDATIONS IDENTIFIED ACTIONS AND TIMELINE FOR RECOMMENDATIONS This chapter will provide the City of Miami's strategy to address fair housing from 2005 to 2010. In the first section, the City's fair housing program will be discussed. Afterwards, a table is provided that identifies the actions that the City plans to implement to overcome the impediments to fair housing choice identified in the pervious chapter. STRATEGY TO MAINTAIN RECORDS TO SUPPORT THE AFFH CERTIFICATION MONITORING OF COMPLAINTS The City of Miami will monitor the fair complaints that occur within its jurisdiction by requesting quarterly reports of claims received by the MDCEOB, the City's NET offices, and the Citi Stats 311 and/or City Hotline. The City will keep records of fair housing complaints that organized by basis, issues, disposition, and zip code. Quarterly reports will allow for the City to identify trends in fair housing issues as they arise. MONITORING OF FAIR HOUSING ENFORCEMENT In lieu of creating a new enforcement mechanism which would have a significant fiscal impact as well as create redundancy of efforts, the fair housing enforcement of claims occurring within the City of Miami will be conducted by the Miami Dade County Equal Opportunity Board (MDCEOB). The MDCEOB currently is charged with the responsibility of conducting investigations and processing fair housing complaints in its jurisdictions which extends countywide into incorporated and unincorporated Miami -Dade County. Also, it should be noted that the MDCEOB is currently being certified by I -IUD to be a Substantially Equivalent Agency. The MDCEOB will provide the City of Miami quarterly reports of fair housing claims that have been settled. MEMORANDUM OF UNDERSTANDING (MOU) WITH THE MDCEOB The City of Miami will enter into a MOU with the MDCEOB for the following: 1. The MDCEOB will provide training on fair housing complaint intake to City's staff from the Community Development Department and the Neighborhood Enhancement Team (NET). 2. The City will report any fair housing complaints to MDCEOB who will be responsible for processing the complaints. 3. The MDCEOB will notify the City of fair housing complaints on a quarterly basis. The reports will contain information on each individual complaint. The information in the report will include, but is not limited to: Date of complaint, basis for complaint, issues, zip code where complaint originated. 4. The MDCEOB will provide annual training to developers regarding fair housing compliance. Example workshops include construction designs that meet fair housing requirements and ADA compliance. 5. The City and the MDCEOB will ordinate annual fair housing month activities and other community out reach efforts. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 74 ACTIONS TO OVERCOME THE IMPEDIMENTS TO FAIR HOUSING CHOICE IMPEDIMENT FH1: LACK OF INCLLJSIONARY ZONING FH 1.1 FH 1.2 FH 1.3 Recommendation The Community Development Department avill work together with the City of Miami Planning Department's Miami 21 master plan in evaluating the strategies for inclusionary zoning for the City of Miami. Request updates on new policies and identify opportunities for collaboration with the Miami -Dade County PIanning and Zoning Department and the Miami -Dade Inclusion. Housin• Task Force. Develop a coherent Citywide affordable housing policy that includes strategies to integrate mix -income households Action Steps To be determined To be determined To be determined Timeline To be determined To be determined To be determined Measurable Results To be determined To be determined To be determined IMPEDIMENT FH2: SCARCITY OF DEVELOPABLE VACANT PARCELS FH 2.2 Recommendation Formalize an infill program in which the City would make available city -owned parcels to developers through a Request for Pro.osal • .rocess. Include in the Infill Program a strategy to address the minimum square footage problem through changes to regulations and the modification of the design of infill housin• to fit on smaller lots. Action Steps To be determined To be determined Timeline Measurable Results To be determined To be determined To be determined To be determined 2005 — 2010 City of Miarni Analysis of Impediments to Fair Housing Choice Page 76 IMPEDIMENT FH3: HIGH RATES OF SEGREGATION IN PUBLIC ASSISTED HOUSING FH 3.1 FH 3.2 Recommendation Continue to educate clients about Fair Housing Act that allows clients to choose where they want to live and place no limitations on that choice other than a rent cap. Provide technical assistance and training in affirmative marketing to recipients of City administered federal funds. In particular, provide strategies that reach and appeal to all segments of the commun . Action Steps Continue educating clients about the Fair Housing Act and who to contact if they think their rights have been violated. Training for developers Timeline 2005 — 2010 2005 — 2010 Measurable Results Fair Housing materials provided to all clients receiving housing assistance through our HOPWA & Section 8 programs at time of (re certification. One training session per year IMPEDIMENT FH4: FEDERALLY FUNDING DECREASING ANNUALLY FOR PUBLIC HOUSING ASSISTANCE Recommendation Continue to attempt to accommodate as many HOPWA clients as possible. Possibly tighten restrictions on the number of bedrooms allowed per household size to reduce the amount of subsidy per household. Action Steps Evaluate current Rent Standard based on Unit Size. Explore the possibility of reducing the current Rent Standard to allow the City to continue serving same number of clients even as federal funds decrease. Evaluate current City policies regarding "Minimum & Maximum Household Unit Size allowed" per number of members in a household. Timeline 2005 — 2010 2005 — 2010 Measurable Results Maintain at least 1000 clients receiving Housing Assistance Payments. Maintain at least 1000 clients receiving Housing Assistance Payments. IMPEDIMENT FH5 FEDERALLY FUNDED PUBLIC ASSISTED HOUSING CLIENTS MAY BE OCCASIONALLY TURNED DOWN BY LANDLORDS DUE TO PRIOR EXPERIENCE WITH HOUSING ASSISTANCE PROGRAMS Recommendation Action Steps Provide information that demonstrates the City's successful history of timely payments to other landlords. In addition, post on the City's website the problems standard policies, changs to polices (i.e. the reduction in FMR coverage), and Frequently Asked Questions (FAQs) b landlords. Utilize the City's website to include information on the City's Housing Assistance Programs, including a special Q&A section for landlords to obtain more details about the programs Timeline 2005 — 2010 Measurable Results Create a section for landlords to find information about our Housing Assistance Programs 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 77 IMPEDIMENT FH6: NO AREA -WIDE COOPERATIVE EFFORT TO ADDRESS FAIR HOUSING ISS1 ES FH 6.1 FH 6.2 Recommendation Identify fair housing activities and efforts that can be coordinated with the Miami -Dade County Office of Equal Opportunity Board (MDCEOB). Establish an agreement with the MDCEOB to implement the identified activities. Action Steps 1) Annual Fair Housing Month activities 2) Community forums (for residents) 3) Presentations to City organizations 4) Training for developers. Example workshops include construction designs that meet fair housing requirements and ADA compliance. 1) Draft MOU with MDCEOB Timeline 1) 2005 — 2010 2) 2005 — 2010 3) 2005 — 2010 4) 2005 —2010 2005 — 2006 Measurable Results 1) Work with MDCEOB to coordinate marketing efforts & activities. 2) 2 workshops per year 3) 2 training sessions per year. 4) 1 training sessions per ear Execution of MOU IMPEDIMENT FH7: DISPARATE SERVICE/UNDER-SERVICE IN PRIVATE LENDING TO MINORITIES r Recommendation FH 7.1 Foster conventional lending and other banking services in neighborhoods that appear to be underserved or to specific groups of citizens that appear to be underserved, in particular in the African American neighborhoods. FH 7.2 FH 7.3 Target existing financial literacy programs (ACCESS Miami) in African American neighborhoods. During outreach efforts, try to deternune causes for the low percentage of Black applicants for home loans. Regularly monitor reports of financial institutions subject to HMDA. Obtain reports from banks and other financial institutions showing their investments in lower -income neighborhoods; the data should indicate the location, race, and ethnicity of loan recipients. Action Steps Develop, test, and implement a banking module associated with the tax preparation campaign that would allow low-income residents to open a bank account when filing taxes. Lending opportunities will be increased as more residents become banked. Timeline 2006 — 2010 Measurable Results 2006: 200 accounts opened 2007: 300 accounts opened 2008: 500 accounts opened 2009. 500 accounts opened 2010. 500 accounts opened 1) Locate on of the Parent Academy financial literacy programs in an African American neighborhood. 2) Dedicate at least one of the new VISTA volunteers to enlist African American residents into the various ACCESS Miami financial literacy and incentive programs Obtain and HMDA reports for the City of Miami. Identify trends based on past reports; especially any changes to service to minority communities. 1) 2005 — 2007 2) 2006 2005 — 2009 1) 50 participants per year 2) Biannual workshop Annual HMDA reports 2005 — 2010 City ofMiatni Analysis of Impediments to Fair Housing Choice Page 78 IMPEDIMENT FH8: PREDATORY LENDING AND ABUSE OF THE SI BPRIME MARKET FH 8.1 FH 8.2 FH 8.3 FH 8.4 Recommendation Develop and implement financial literacy programs through the Mayor's ACCESS Miami program. Ensure that programs are available in English, Spanish, and Creole. Explore opportunities to collaborate and/or leverage funds for anti -predatory initiatives with the County and other local agencies. Execute a media campaign that will educate the City's residents about fair housing rights, including the right to fair loans and the dangers of predatory lending. Though the City does not underwrite predatory loans and has standards (based on debt to income ratios) in place to deny loans that appear predatory, more specific policies are needed that restrict interest rates, points charged on a loan, and disallows certain loan products deemed unnecessary. Action Steps 1) Host 3 training day sessions with the Mortgage Bank Association. 2) Host teacher training of financial literacy 3) Co -host the Parent Academy with the Miami -Dade School System to provide a 4 tier financial literacy program: i) Homeownership, ii) Money management, iii) Credit protection, and iv) Freddie Mac's "Credit Smart" program for building good credit (includes predatory awareness). Contact County's Anti -Predatory Initiative and inform them of City's interest to be included in future meetings and activities. 1) Develop marketing collateral New anti -predatory underwriting policy for first term mortgages that receive the City's assistance for down payments/closing costs: — The term of the loan must be 30 years — The interest rate must be fixed and cannot be more than 7.00% (review/adjust for changes in interest rates periodically) — No adjusted rate mortgages — No prepayment penalties — Loan must be full documentation only. No stated income and/or assets loans. — The total percentage charged for Discount, Origination and Broker fees cannot exceed 2 points. — All other lending fees (example, application fees, processing fees, tax service fees, administration fees, etc) must be reasonable. However, they cannot exceed $500 or 0.5% of the loan amount, whichever is greater. Timeline 1) 2005 2) 2005 3) 2005 — 2007 2005 2006 — 2010 2005 (Implemented) 2006 -- 2009 (Review and adjust interest rate cap) Measurable Results 1) 100 participants 2)1500 participants 3)1000 participants per year Meetings attended Creation & distribution of marketing material Eliminate underwriting loans that may appear to be predatory. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 79 IMPEDIMENT FH9: LACK OF A COHERENT CITYWIDE AFFORDABLE HOUSING POLICY FH 9.1 Recommendation Develop a clear affordable housing policy. The policy should include program strategies that coordinate and integrate the use of the city's future affordable housin: trust fund. Action Steps To be determined Timeline To be determined Measurable Results To be determined IMPEDIMENT FH10: NOT ENOUGH AFFORDABLE/WORKFORCE HOUSING UNITS TO MEET THE NEEDS OF CITY RESIDENTS FH 10.1 FH 10.2 FH 10.3 Recommendation Continue to advocates on behalf of affordable Dousing developers streamlining the application process. Continue to implement the actions to increase affordable housing identified in the 2004- 2009 Consolidated Plan. Action Steps Streamlining the application process by: — Impact Fees; — Streamlining the Administrative Process; I. Community Development Dept. II. Building Department III. Planning Department IV. Zoning Department — Release of Liens. Timeline 2005 — 2010 Measurable Results To be determined To be determined 2005 — 2010 To be determined FH 10.4 FH 10.5 FH 10.6 Adopt a formal Infill Program. Establish an Affordable Housing Trust Fund. Identify opportunities for intergovernmental collaboration to address housing affordability issues. In particular, examine the most effective manner to partner with the County, State, and Federal government to coordinate activities and leverage funding. Require strong affirmative marketing programs for all affordable housing developments using City administered Federal funds. To be determined To be determined 1) 2) Continue the Match Savings Program where each dollar saved by the resident is matched with two dollars by both the City of Miami and the Federal Government. A maximum of $2000 from each may be matched over a two-year period. Savings may only be used towards homeownership. Contact the County's Office of Community and Economic Development. Establish the most effective manner to collaborate and coordinate housing affordability issues. To be determined To be determined To be determined 1) 2005 — 2010 2) 2005 — 2010 To be determined To be determined To be determined 1) 80 participants per year 2) Formalize partnership with County; at a minimum coordinate RFPs To be determined 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 80 IMPEDIMENT FH11: HOUSING DISCRIMINATION ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, FAMILIAL STATUS, AND DISABILITY FH 11.1 FH 11.2 FH 11.3 FH 11.4 FH 11.5 Recommendation Develop a educational fair housing tights campaign for City residents that will help them identify and challenge discrimination (see FH 15.1 for more details) Consolidate the fair housing complaint intake process and improve the monitoring system (see FH 12 and FH 13 for more details) Conduct fair housing testing within the City of Miami (see FH 13 for more details) Ensure the continued availability of comprehensive fair housing enforcement by entering into an agreement with MDCEOB. Provide fair housing education and training to ensure compliance with fair housing laws. Action Steps Develop marketing collateral 1) Draft MOU with MDCEOB 2) Promote City's Hotline and/or 311 Call Center 3) Inform MDCEOB of Fair Housing complaints on a regular basis To be determined Draft MOU with MDCEOB Community forums (for residents) Presentations to City organizations Training for developers. Timeline 2006 — 2010 2005 — 2006 2005 — 2010 2005 — 2006 2005 — 2010 Measurable Results Creation & Distribution of Marketing material 1) Execution of MOU 2) Creation & Distribution of marketing material 3) Define process to communicate complaints To be determined Execution of MOU 1) 2 workshops per year 2) 2 training sessions per yr. 3) 1 training sessions per yr. IMPEDIME'_\T FH12: IMPROVE MONITORING OF Hot SING DISCRIMINATION COMPLAINTS THAT OCCUR WITHIN THE CITY'S JURISDICTION' FH 12.1 FH 12.2 Recommendation Establish an agreement with MDCEOB to provide fair housing complaint intake.training to the City of Miami to ensure that all the necessary information is acquired to effectively conduct monitoring. (probable claims will be forwarded to MDCEOB) Explore an agreement with the various fair housing agencies to provide the City of Miami the information collected from the complaints; ideally complain data would be re,ort}ed on a puarterl basis. Action Steps 1) Sign MOU with MDCEOB 2) Develop checklist tool for City employees to conduct screening of fair housing complaints 3) City staff will be trained by MDCEOB for fair housin . compliant intake 1) Request quarterly reports from MDCEOB of total housing complaints received by zip code, basis, issues, and disposition Timeline 1) 2005 — 2006 2) 2005 — 2006 3) 2005 — 2006 2005 — 2010 Measurable Results 1) Execution of MOU 2) Creation of checklist. 3) One or two training session per year Receive 4 housing complaint reports per year. 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 81 IMPEDIMENT FH13: HOUSING DISCRIMINATION COMPLAINT INTAKE PROCESS IS FRACTURED FH 13.1 Recommendation Centralize fair housing complaints that occur within the City by directing complaints to 311 CitiStats and/or the City Hotline. Action Steps 1) Draft MOU with MDCEOB 2) Promote City's Hotline and/or 311 3) Inform MDCEOB of Fair Housing complaints on a regular basis Timeline 1) 2005 — 2006 2) 2005 — 2006 3) 2005 — 2006 Measurable Results 1) Execution of MOU 2) Creation & distribution of marketing material 3) Define process to communicate complaints IMPEDIMENT FH1.I:LACK OF FAIR HOUSING TESTING WITHIN THE CITY OF MIAMI FH 14.1 Recommendation Enter into an agreement with a fair housing testing trainer to provide services to the City of Miami and recnut new testers. Conduct fair housing testing in the City; including targeted fair housing testing based on the quarterly reports if trends (i.e. geographic concentration of complaints by zip code) are identified in the monitorin• s!ocess. Action Steps To be determined To be determined Timeline 2005 — 2010 2005 — 2010 Measurable Results To be determined To be detennined IMPEDIMENT FH15: LACK OF PUBLIC AWARENESS OF FAIR HOUSING RIGHTS FH 15.1 Recommendation Implement a fair housing information campaign that specially targets City residents and clearly informs the public about fair housing;righfs and the Miami - Dade County Human Rights Ordinance. Action Steps (1) Develop marketing collateral in English, Spanish, and Creole. (2) Include fair housing information during the Section 8/HOWA intake process and at the time of recertification. Establish a mailing list of existing Section 8/ HOPWA clients. Periodically mail fair housing information. Develop a media campaign using 311 Coordinate with local fair housing agencies to Find opportunities to leverage resources and organize outreach activities. (6) Conduct an annual mass media campaign during the Fair Housing Month each April. (3) (4) (5) Timeline 2005 — 2010 Measurable Results Creation & distribution of marketing material 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 82 FH 15.2 Continue to implement the Affirmative Fair Housing Marketing Plan; ensure that outreach includes developers, realtors, landlords, financial institutions and the minority community. To be determined To be determined To be determined IMPEDIMENT FH16: MOBILITY IMPAIRED LOW-INCOME INDIVIDUALS LACK ACCESS TO HOUSING WC"ITH ACCOMMODATIONS AND MODIFICATIONS FOR THE DISABLED Recommendation FH 16.1 FH 16.2 FH 16.2 Incentivize local affordable! housing developers to adopt the visitability standards by providing bonus points on responses to Request for Proposals (RFPs) that meet the criteria. Action Steps To be determined Timeline To be determined Measurable Results To be determined Increase the number of units available to persons with disabilities. Conduct random testing of the new housing developments to ensure that technical requirements are in place for accessibility to buildings and facilities by individuals with disabilities under the Americans with Disabilities Act (ADA) and the Fair Housing Act. Incentive rental projects to set aside units for persons with disabilities by providing an extra 5 points for setting aside at least 5 percent of the units. 2006 — 2010 Increased percentage of rental units available to persons with disabilities To be determined 2005-2010 To be determined IMPEDIMENT FHIG: WEAK PARTICIPATION IN THE LABOR MARKET FH 16.1 Recommendation Continue to address the economic development component of fair housing through the existing Minority Business Enterprise (MBE) Plan. Action Steps Ensure that Request for Proposals (RFPs) and Request for Q'na]ifications (RFQs) include criteria regarding a plan to recruit MBEs/WBEs related to contractors, consultants, and ervices. A developer will be required to demonstrate outreach to MBE/WBEs for contracted services including, but not limited to its General Contractor (GC) selection and the GC's selection of its subs. Timeline 2005 — 2010 Measurable Results Increased percentage of MBEs/WBEs contracted by the City 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 83 FH 16.2 FH 16.3 Create job opportunities in financially distressed neighborhoods (as identified in the 2004-2009 Consolidated Plan). This requirement will be included in the Loan Agreement and disclosed at the pre - construction conference. Develop business attraction and retention programs (as identified in the 2004-2009 Consolidated Plan). To be determined To be determined To be determined To be determined To be determined To be determined IMPEDIMENT FH17: SPATIAL MISMATCH -HOMES/JOBS/Pi;BLIC TRANSPORTATION FH 17.1 FH 17.2 Recommendation Continue to address the economic development component of fair housing through the existing Minori Business Ente .rise :E Plan. Encourage a transportation link with affordable housing by providing bonus points in the RFPs for proposals that develop affordable housing o..ortunities near .ublic trans.ortation Action Steps To be determined To be determined Timeline To be determined To be determined Measurable Results To be determined To be determined 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 84 SIGNATURE PAGE CHIEF ELECTED OFFICIAL To be inserted 2005 — 2010 City of Miami Analysis of Impediments to Fair Housing Choice Page 85