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Home My WebLink AboutCRA-R-24-0040 ProposalProposal Omni CRA Rehabilitation Funding for 1437 NW 1st Place, Miami, FL 33136 Project Introduction 1437 NW 1st Place, a multifamily residential building located in Miami, FL, stands as a testament to the city's post-war development, having been erected in 1952 before the construction of 1-95. For decades, this property has been an integral part of the vibrant community of Overtown, providing a home to many residents. However, the passage of time has taken its toll, and the building now requires significant repairs and renovations. Deferred maintenance has led to issues such as mold and termite infestation, outdated plumbing and electrical systems, and general wear and tear. These challenges have resulted in decreased occupancy rates, putting the building at risk of further deterioration. To address these issues and restore the property to its full potential, a comprehensive renovation plan has is proposed here. This plan includes installing impact windows and doors, fixing the old electrical wiring, conducting roof repairs, performing stucco and painting work, and improving landscaping. These enhancements are not only aimed at revitalizing the building's appearance but also at enhancing its energy efficiency and overall durability. To ensure that the units remain accessible to low-income and workforce households, proposed rent caps have been established. This initiative seeks to provide stability for Overtown residents, safeguarding their ability to afford housing in the area. Upon completion of these renovations, 1437 NW 1st Place will once again be able to offer safe, affordable housing to the residents of Overtown. The improved energy efficiency of the building will also lead to lower utility costs for residents, and insurance costs for the owner, further enhancing affordability. Additionally, these renovations will help preserve the historic character of this pre -expressway, ensuring that it remains a valuable part of the community for years to come. Neighborhood Need The property at 1437 NW 1st Place, within the boundaries of the Omni CRA, is located in Overtown, a neighborhood with a rich cultural history and a deep-rooted sense of community. However, Overtown is facing significant challenges, including a severe shortage of affordable housing. Despite being in close proximity to downtown Miami, Overtown residents are experiencing the impacts of gentrification and rising housing costs. Many long-term residents, including low-income families and the workforce population, are struggling to afford housing in the area. The lack of affordable housing options has led to displacement and the erosion of the neighborhood's cultural fabric. The preservation of existing affordable housing, such as the property at 1437 NW 1st Place, is important to maintaining Overtown's character and ensuring that current residents can continue to call this neighborhood home. By investing in the renovation and maintenance of properties like 1437 NW 1st Place, the CRA can support the preservation of affordable housing in Overtown. This not only addresses the immediate housing needs of the community but also contributes to the long- term economic stability and cultural vitality of the neighborhood. Existing Conditions Malfunctioning HVAC System; Deteriorating exterior conditions; Damaged flooring and non -impact windows. Outdated kitchen; Wear and tear damage to non -impact door; Energy inefficient jalousie windows. Proposed Renovations Exterior: • Installation of impact windows & doors • Roof repairs • Stucco & painting • 40-year requirements Site Improvements: • Fire alarm system installation • Parking lot repaving and striping • Exterior lighting installation • Landscaping Interior: • Mold testing and mitigation • Termite mitigation • Flooring upgrades • Plumbing upgrades • Electrical upgrades • HVAC system upgrades • Insulation & drywall • Interior painting Additional Scope of Work • General Requirements: Scope of Work, Inspections, Architectural/Engineering Plans and Specifications, Permits (Building, Mechanical, Electrical, Plumbing) • Existing Conditions: Demolition (Remove all damaged and/or deteriorated materials throughout) Haul away from property. Existing parking lot install new asphalt overlay, provide required landscaping • Concrete: Remove and replace all damaged concrete due to spalling or cracking. Provide proper reinforcement throughout • Masonry: Patch and repair all masonry unit and stuccoed plaster. Add stucco band around windows and doors for beautification • Metals: Remove and replace metal railings • Wood Plastics and Composites: Carpentry work to include new framing at walls, ceilings and floors as necessary completely redeck all floor, Provide new kitchen cabinets and bathroom vanities. Paint Exterior and Interior • Thermal and Moisture: Provide insulation and soundproofing throughout smoke detectors to be hardwired • Openings: Windows and Doors to Hurricane Impact • Install Fire Rated Gypsum Board and Ceramic Tile Flooring • Specialties: Install New Postal Boxes • Mechanical: Install New HVAC Systems at Each Unit • Electrical: Upgrade electrical service to include addition house meter rewire throughout breakers, outlets and lighting to be in compliance with new codes • Plumbing: All water piping, drainage lines, fixtures, and accessories to be changed out Financing Plan & Request The project is seeking funding for construction and financing. We are requesting $470,800 from the Omni Community Redevelopment Agency (CRA) to support the renovation and maintenance of affordable housing at 1437 NW 1st Place (folio #: 01-3136-0510), granted to Gwendolyn Johnson TRS Overtown Family Landtrust. Affordability Plan 1437 NW 1st Place currently has 4 total units. One unit is the residence of property owner Gwendolyn Johnson, one unit is rented, and two units are vacant. We propose to cap rents on all units for a period of 25 years from the substantial completion of Project. Two units will be capped at rents affordable to residents at 50% of Area Median Income (AMI), and two will be capped at 80% of AMI. The current occupant of one unit is the building owner, Ms. Gwendolyn Johnson, who may stay for as long as she desires without income or rent limit. This will ensure that the property remains affordable for low-income and workforce households without displacing Ms. Johnson from her home. When she vacates the unit, it will need to be rented at rents affordable to resident at 50% of AMI. EXHIBIT A - LEGAL DESCRIPTION WADDELLS RE -SUB OF BLK 44 PB 1-169 LOT 6 LESS W5FT ST & W1/2 OF ALLEY LYG E & ADJ CLOSED PER ORD 13492 LOT SIZE 5050 SQ FT M/L EXHIBIT B Unit Breakdown UNITS Unit Type Set -aside: Unit Size (SF) Under A/C Unit Type Rent RENT LIMITS 2024 AMI 50% 60% 80% 100% 120% 140% 2024 Market - Overtown Unit 1 Unit 2 Unit 3 Unit 4 50% AM I 750 2/1 1,276 2-Bedroom Rent 1,276 1,531 2,042 2,553 3,063 3,573 $ 2,000 50%AMI 750 2/1 1,276 Gross / Year / Unit $15,312.00 $18,372.00 $24,504.00 $30,636.00 $36,756.00 $42,876.00 $24,000.00 80% AMI 750 2/1 2,000 2024 Income Limit 1 person 39,750 47,700 63,600 79,500 95,400 111,300 80% AMI 750 2/1 2,000 2024 Income Limit 2 people 45,400 54,480 72,640 90 800 $ 108,960 $ 127,120 6,552 78,624 EXHIBIT C - 10-year Projection 1437 NW 1st Place 30 YEAR CASH FLOW ANALYSIS INCOME INFLATOR EXPENSE INFLATOR INSURANCE INFLATOR 3.00% 5.00% 10.00°/, NUMBER OF UNITS 4 Assumptions Year 1 $ 78,624 $ 78,624 $ (19,656) 2 $ 80,983 $ 80,983 $ (20,246) 3 $ 83,412 $ 83,412 $ (20,853) 4 $ 85,915 $ 85,915 $ (21,479) 5 $ 88,492 $ 88,492 $ (22,123) 6 $ 91,147 $ 91,147 $ (22,787) 7 $ 93,881 $ 93,881 $ (23,470) 8 $ 96,698 $ 96,698 $ (24,174) 9 $ 99,599 $ 99,599 $ (24,900) 10 $ 102,586 $ 102,586 $ (25,647) Gross Rental Income Potential Gross Income Vacancy 25.00% Effective Gross Income $ 58,968 $ 60,737 $ 62,559 $ 64,436 $ 66,369 $ 68,360 $ 70,411 $ 72,523 $ 74,699 $ 76,940 Less: Operating Costs $ / Month $ 19,584 $ 21,542 $ 22,620 $ 23,750 $ 24,938 $ 26,185 $ 27,494 $ 28,869 $ 30,312 $ 31,828 Mortgage & Insurance $108,849 Principal $600/unitlyear $ 1,632 Landscaping $100/month $ 100 $ 1,200 $ 1,260 $ 1,323 $ 1,389 $ 1,459 $ 1,532 $ 1,608 $ 1,689 $ 1,773 $ 1,862 Maintenance $ 100 $ 4,800 $ 5,040 $ 5,292 $ 5,557 $ 5,834 $ 6,126 $ 6,432 $ 6,754 $ 7,092 $ 7,446 Management Fee 4.00% $ 197 F$ 2,359 F$ 2,429 F$ 2,502 F$ 2,577 F$ 2,655 F$ 2,734 F$ 2,816 F$ 2,901 F$ 2,988 F$ 3,078 Utilities $70lunit/Month $ 70 $ 3,360 $ 3,528 $ 3,704 $ 3,890 $ 4,084 $ 4,288 $ 4,503 $ 4,728 $ 4,964 $ 5,212 Real Estate Taxes est $ 758 $ 9,094.20 $ 9,549 $ 10,026 $ 10,528 $ 11,054 $ 11,607 $ 12,187 $ 12,796 $ 13,436 $ 14,108 Total Operating Expenses 68.51% $ 2,856 $ 40,397 $ 43,349 $ 45,468 $ 47,691 $ 50,024 $ 52,472 $ 55,041 $ 57,737 $ 60,566 $ 63,534 Net Operating Income $ 18,571 $ 17,388 $ 17,092 $ 16,745 $ 16,345 $ 15,888 $ 15,370 $ 14,786 $ 14,133 $ 13,406