HomeMy WebLinkAboutPre Legislation and Pre ExhibitCity of Miami
Legislation
Resolution: R-09-0278
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 09-00645 Final Action Date:6/11/2009
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
APPROVING A REPAYMENT PLAN FOR FUNDS OWED TO THE UNITED
STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), IN
AN AMOUNT NOT TO EXCEED $4,027,824.76, AS SET FORTH IN EXHIBIT "A",
ATTACHED AND INCORPORATED, TO ALLOW THE CITY OF MIAMI ("CITY") TO
ACCESS NEIGHBORHOOD STABILIZATION PROGRAM FUNDS, IN THE
AMOUNT OF $12,063,702; AUTHORIZING THE CITY MANAGER TO NEGOTIATE,
TO AMEND, AND TO EXECUTE ANY SUCH REPAYMENT AGREEMENT
BETWEEN THE CITY AND HUD FOR THE IMPLEMENTATION OF SAID
PURPOSES.
WHEREAS, pursuant to Resolution No. 08-0641, adopted November 23, 2008, the Miami City
Commission approved the acceptance of a grant from the United States Department of Housing and
Urban Development ("HUD") under the Housing and Economic Recovery act of 2008 in the amount of
$12,063,702 for the implementation of the Neighborhood Stabilization Program (NSP"); and
WHEREAS, on March 13, 2009, the NSP grant agreement between the City of Miami ("City") and
HUD was executed by the City Manager, as indicated in Exhibit "B", attached and incorporated; and
WHEREAS, pursuant to Special Condition #1 of the NSP grant agreement, before the City can
access the NSP funds, the City is required to submii a repayment plan for the outstanding obligations
due to HUD because of certain compliance issues; and
WHEREAS, the City has negotiated with HUD to repay the outstanding obligations, as set forth in
Exhibit "A", attached and incorporated; and
WHEREAS, the Department of Community Development has made changes to its policies and
procedures which have been communicated to and accepted by HUD to ensure that these
compliances issues are never repeated; and
WHEREAS, the Administration recommends approval of the repayment plan between the City and
HUD to allow the City to access the NSP funds;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
adopted by reference and incorporated as if fully set forth in this Section.
Section 2. The repayment agreement between the City and HUD to allow the City to
access NSP funds is approved.
City of Miami Page 1 of 2 File Id: 09-00645 (Version: 2) Printed On: 11/4/2010
File Numbers 09-00645
Enactment Number: R-09-0278
Section 3. The City Manager is authorized{1} negotiate, to amend, and to execute,
any such repayment agreement between the City and HUD for the implementation of
said purposes.
Section 4. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.{2}
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be imposed
by the City Attorney, including, but not limited to, those prescribed by the City Attorney, including but
not limited to those prescribed by applicable City Charter and Code provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar
days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become
effective immediately upon override of the veto by the City Commission.
Ciry of Miami Page 2 of 2 File Id: 09-00645 (Version: 2) Printed On: 11/4/2010
EXHIBIT
City of Miami Repayment Agreement with HUD
REPAYMENT PLAN
a) HOPWA: Movers, Inc. resale of Sugar Hill Apartments: $935,556.20
City to use all avenues at its disposal to seek the repayment of the amount from Movers,
Inc. •Notwithstanding, within eighteen (18) months, the City hopes to reimburse its
HOPWA line of credit in an amount of $935,556.20 being the total amount disbursed for
the Sugar Hill Apartments project.
b) HOME:
i. Model City project land banking and consulting fee disallowance: $2.6 million
The City will make $250,000 payment for fiscal year 2009, $450,000 for fiscal year
2010 and a final payment of $1.9 million in the third year to the City's HOME line
of credit
ii. City employees down payment program conflict of interest: $87,685
The City will make the $87,685 payment within 120 days of approval by HUD.
c) CDBG: Downtown Facade Improvement Program: $404,583.56
This payment will be made within 120 days of approval of the plan.
.XHIBrT "B"
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGIIT3ORHOOD STABILIZATION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30, 2008)
NSP GRANTEE: City of Miami
NSP GRANT NUMBER: B-08-MN-12-0016
NSP GRANT AMOUNT: $12,063,702
NSP APPROVAL DATE: January 8, 2009
This Grant Agreement between the Department of Housing and Urban Development (HUD)
and the City of Miami (Grantee) is made pursuant to the authority of sections 2301 — 2304 of the
Housing and Economic Recovery Act of 2008 (Public Law 110-289 (July 30, 2008)) (HERA). The
program established pursuant to ..section 2301-2304 is known as the "Neighborhood Stabilization
Program" or "NSP." The Notice of Allocations, Application Procedures, Regulatory Waivers
Granted to and Alternative Requirements for Redevelopment of Abandoned and Foreclosed Homes
Under the Housing and Economic Recovery Act, 2008 published at 73 FR 58330 (October 6, 2008)
(Notice); HERA; the Grantee's submission for NSP assistance (Grantee Submission); the HUD
regulations at 24 CFR § Part 570 (as modified by the Notice and as now in effect and as may be
amended from time to time) (Regulations); and this Funding Approval, including any special
conditions, constitute part of the Grant Agreement
Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the
amount of $12,063,702 available to the Grantee upon execution of this Grant Agreement by the
parties. The Grantee shall have 18 months from the date of HUD's execution of this Grant
Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the
Notice. The Grantee shall have 48 months from the date of HUD's execution of this Grant
Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice. The NSP
Grant Funds may be used to pay eligible costs arising from eligible uses incurred after the NSP
Approval Date provided the activities to which such costs are related are carried out in compliance
with all applicable requirements. Pre -award planning and general administrative costs may not be
paid with funding assistance except as permitted in the Notice; the Notice limits such costs to those
incurred on or after September 29, 2008. Other pre -award costs may not be paid with funding
assistance except as permitted by 24 CFR § 570.200(h); for purposes of NSP, such costs are limited
to those incurred on or after the date that the NSP substantial amendment was received by HUD.
The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the Secretary
pursuant to Section 104(g) of Title I of the Housing and Community Development Act, as amended
(42 U.S.C. 5304) and published in 24 CFR § Part 58. The Grantee further acknowledges its
responsibility for adherence to the Grant Agreement by sub -recipient entities to which it makes
funding assistance hereunder available.
This Grant Agreement maybe amended only with the prior written approval of HUD. In
considering proposed amendments to this Grant Agreement, HUD shall review, among other things,
whether the amendment is otherwise consistent with HERA, the Notice, and the Regulations.
The Grantee may amend its Grantee Submission; however, such amendments, including
substantial amendments as defined in 24 CFR § Part 91, will be subject to the requirements of 24
CFR § Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or any
successor Notice or regulation).
The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission,
including all amendments approved by HUD, on its Internet website as required by the Notice.
Further, the Grantee shall maintain information on all drawdowns, deposits, and expenditures of
grant funds and program income under this Funding Approval and Grant Agreement and any other
records required by 24 CFR 570.506, in its files and shall make such information available for audit
or inspection by duly authorized representatives of HUD, HUD's Office of the Inspector General, or
the Comptroller General of the United States.
The Grantee shall submit information on performance measurement as established by the
Secretary for activities undertaken with NSP grant funds.
The Grantee is advised that providing false, fictitious or misleading information with respect
to NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC
-§ 1001, 18 USC § 1343, 31 USC §3729, 31 USC §3801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CFR § 570.509 or such close-
out instructions as may hereafter be issued by HUD specifically for NSP grants.
(1) Special Condition is attached to this Grant Agreement.
This NSP Grant Agreement is binding with resputt to HUD in accordance with its terms
upon the execution by HUD in the space provided above, subject to execution on behalf of the
Grantee.
The United States Department of
Housing and Urban Development
Signature of Authorized Official
Maria R Ortiz
Name of Authorized Official
Director
Title of Authorized Official
Date of Signature
Their t, City of Miami
Signature of Authorized Official
PEDRO HERNANDEZ
Name of Authorized Official
CITY MANAGER
Title of Authorized Official
3-13-09
Date of Signature
Grantee Tax Identification Number
Special Conditions to Funding Approval and Grant Agreement For
Neighborhood Stabilization Program (NSP) Funds
as Authorized and Appropriated by under the
Housing and Economic Recovery Act of 2008
(Public Law 110-289, July 30, 2008)
NSP GRANTEE: City of Miami
NSP GRANT NUMBER: B-013-MN-12-0016
NSP GRANT AMOUNT: S12,063,702
NSP APPROVAL DATE: January 8, 2009
Special Condition #1:
7 _ Pursuant to 24 CFR § 85.12 (a) (1) (2) (4) or (5), a special condition applies to this Grant
Agreement due to past performance in the CDBG program. The City of Miami shall
submit documentation describing how past CDBG performance issues have been
resolved or are now being resolved and explain how they will not impact the
administration of the NSP program. Our records show that there are several outstanding
monitoring findings that require resolution in the City's HOPWA, HOME, and CDBG
programs. In addition, the City has several outstanding issues regarding non compliance,
where it had agreed to reimburse its Line of Credit as identified below:
a) HOPWA: The amount of $935,556.20 for the unauthorized sell of the Sugar Hill
Apartments property.
b) HOME: The remaining balance of $ 2.6 million for the Model City occurrence; and
$87,685.00 for ineligible down payment assistance in a Conflict of interest
issue.
c) CDBG: In FY 2006 the amount of $404,583.56 for ineligible areas of assistance in the
Miami Downtown area.
The City must submit aplan of action to our Office addressing the above identified
issues, staling how it will resolve this deficiencies and a time frame for completion.
The City must also indicate how the past performance issues will not impact its
administration of the NSP program. If the City of Miami fails to submit such
documentation within 60 days from the date HUD signed this Grant Agreement HUD
may thereafter withhold authority to incur additional obligations of NSP Grant Funds or
take other actions authorized under 24CFR& 85.12(6).
City of Miami
Legislation
Resolution: R-08-0641
City Hall
3500 Pan American.
Drive
Miami, FL 33133
www.miamigov.com
File Number: 08-01224 Final Action Date:11/13/2008
A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING FUNDS, IN
THE AMOUNT OF $12,063,702, CONSISTING OF A GRANT FROM THE UNITED
STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FOR THE
IMPLEMENTATION OF THE NEIGHBORHOOD STABILIZATION PROGRAM
UNDER THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY
DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO
IMPLEMENT ACCEPTANCE OF SAID GRANT.
WHEREAS, on July 30, 2008 the President of the United States signed the Housing and
Economic Recovery Act of 2008 which includes the Neighborhood Stabilization Program; and
WHEREAS, the Neighborhood Stabilization Program provides emergency assistance to the City
of Miami to acquire foreclosed properties that might otherwise become sources of abandonment
and blight and rehabilitate, resell or redevelop these properties to stabilize neighborhoods and stem
the decline of house values on neighboring homes; and
WHEREAS, the United States Department of Housing And Urban Development ("HUD") has
advised the City of Miami that a grant in the amount of $12,063,702 in Community Development
Block Grants has been awarded for its Neighborhood Stabilization Program under the Housing and
Economic Recovery Act of 2008; and
WHEREAS, the Administration recommends the acceptance of a grant from HUD under the
Housing and Economic Recovery Act of 2008 in the amount of $12,063,702 for the implementation
of the Neighborhood Stabilization Program;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. A grant from HUD, under the Housing and Recovery Act of 2008 in the amount of
$12,063,702 for the implementation of the Neighborhood Stabilization Program is accepted.
Section 3. The City Manager is authorized {1} to execute the necessary documents, in a form
acceptable to the City Attorney, to implement acceptance of said grant.
Section 4. This Resolution shall become effective immediately upon its adoption and signature
of the Mayor.{2}
City of Miami Page 1 of 2 File Id: 08-01224 (Version: 1) Printed On: 11/412010
File Number: 08-01224 Enactment Number: R-08-0641
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including but not limited to those prescribed by applicable City
Charter and Code provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10}
calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by the City Commission.
City of Miami Page 2 of 2 File Id: 08-01224 (Version: 1) Printed On: 11/4/2010