HomeMy WebLinkAboutSummary FormDate: 5/19/2008
AGENDA ITEM SUMMARY FORM
FILE ID: O '00(00
PH.9
Requesting Department: Community Development
Commission Meeting Date: 6/12/2008 District Impacted:
Type: ® Resolution C
C Other
Ordinance (1 Emergency Ordinance Fl Discussion Item
Subject: Transferring funds to Model Housing Cooperative, Inc.
Purpose of Item:
AUTHORIZING THE TRANSFER OF 33RD YEAR COMMUNITY DEVELOPMENT BLOCK
GRANT ("CDBG") FUNDS, IN THE AMOUNT OF $3,000,000, FROM THE CITY OF MIAMI
DEPARTMENT OF COMMUNITY DEVELOPMENT CDBG HOUSING RESERVE;
ALLOCATING SAID FUNDS TO MODEL HOUSING COOPERATIVE, INC., AS SPECIFIED IN
EXHIBIT "A", ATTACHED AND INCORPORATED, FOR THE PURCHASE OF THE
SUNTRUST BANK LOAN IN ACCORD WITH THE DEVELOPMENT OF THE VILLAS DR.
GODOY PROJECT LOCATED AT 1465-1479 WEST FLAGLER STREET, MIAMI, FLORIDA,
LEGALLY DESCRIBED IN EXHIBIT "B", ATTACHED AND INCORPORATED;
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS,
WITH SAID ENTITIES, FOR SAID PURPOSE(S).
Background Information:
Please see attached.
Budget Impact Analysis
Is this item related to revenue?
Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Dept. Dir ` or
Chief I.
Final Approvals
(SIGN AND DATE)
City Manager
Page 1 of 1
AGENDA ITEM SUMMARY FORM CONTINUED
Background Information:
On September 13, 2002, the Housing and Commercial Loan Committee ("HCLC") approved the
allocation of $1,280,000 from Home Investment Partnerships ("HOME") Program funds to Model
Housing Cooperative, Inc. for the development of the Villas Dr. Godoy project ("Project") consisting of
thirty-two (32) condominium units located at 1455-1479 West Flagler Street, Miami, Florida of which
all would be HOME assisted. The Project started construction on December 20, 2004.
On February 4, 2005, the HCLC approved extending the project completion date, from September
2005 to June 30, 2006, in the agreement between Model Housing Cooperative, Inc. and the City of
Miami ("City") due to requirements set forth by SunTrust Bank to keep the completion date consistent
between all lenders.
On September 22, 2006, the HCLC approved an additional $270,000 in HOME Program funds to the
Project for costs related to the water and sewer connections and unforeseen project expenses. The
HCLC also approved an extension until December 31, 2006 to acquire the Certificate of Occupancy
and an extension of the project's completion date from June 30, 2006 to December 31, 2007.
On December 19, 2006, the HCLC agreed to modify the HOME Loan Agreement to allow for units to
close with a Temporary Certificate of Occupancy ("TCO") in order to reduce the amount of interest
payments on the construction loan with SunTrust Bank ("SunTrust") and extend the date to acquire
Certificate of Occupancy from December 31, 2006 to May 31, 2007.
On July 27, 2007, the HCLC Committee approved another extension, from May 31, 2007 to
December 31, 2007, to acquire the Certificate of Occupancy to and an extension of the project
completion date from December 31, 2007 to April 30, 2008, to account for the unforeseen setbacks
with the General Contractor, Zurqui Construction.
On said date, the HCLC approved an increase in the sales price of the Model B-1 units, $190,000 to
$209,000, and Model A-3 units from, 174,000 to $190,000.
On January 30, 2008, the City Department of Community Development ("CD") was copied on a letter
from SunTrust Bank to Model Housing Cooperative, Inc. threatening to put the project in default if the
following conditions were not met:
1. The City of Miami must approve additional funding to include funds to complete the project
and carry the SunTrust interest for the months of February, March, and April 2008;
2. The developer and contractor must obtain a TCO during February 2008;
3. The developer must fully submit buyers ready to close in such a number that SunTrust
judges sufficient to schedule closing by a reasonable date; and
4. The developer must pay for the general liability premium from January 26, 2008 to January
26, 2009 in the sum of $2,901.84.