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File ID: #5962
Resolution
Sponsored by: Commissioner Ken Russell
A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING ALL FUNDS
AGREED TO OR AWARDED AS SANCTIONS, AFTER ATTORNEYS' FEES AND
COSTS ("FUNDS"), IN THE CASES OF: THE BANK OF NEW YORK MELLON, F/K/A
THE BANK OF NEW YORK, AS TRUSTEE, VS JOSEPH BEHR, ET AL. CASE
NUMBER CACE 11023871 DIV11, THE BANK OF NEW YORK MELLON, F/K/A THE
BANK OF NEW YORK, AS TRUSTEE, VS VICKY LEE GRUSBY, ET AL. CASE
NUMBER CACE 11021448 DIV11, AND THE BANK OF NEW YORK MELLON, F/K/A
THE BANK OF NEW YORK, AS TRUSTEE, VS RICHARD VON HOUTMAN, ET AL.
CASE NUMBER CACE 08031773 DIV11; ESTABLISHING A SPECIAL REVENUE
ACCOUNT ENTITLED "AFFORDABLE HOUSING PROCEEDS FUND" IN ORDER TO
RECEIVE THE FUNDS; DIRECTING THE CITY MANAGER TO DEVELOP A
FRAMEWORK IN ORDER TO UTILIZE OR DISTRIBUTE THE FUNDS TO CREATE
AFFORDABLE HOUSING THROUGHOUT THE CITY OF MIAMI AND THE STATE OF
FLORIDA.
City of Miami
Legislation
Resolution
Enactment Number: R-19-0195
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 5962 Final Action Date:5/23/2019
A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING ALL FUNDS
AGREED TO OR AWARDED AS SANCTIONS, AFTER ATTORNEYS' FEES AND
COSTS ("FUNDS"), IN THE CASES OF: THE BANK OF NEW YORK MELLON, F/K/A
THE BANK OF NEW YORK, AS TRUSTEE, VS JOSEPH BEHR, ET AL. CASE
NUMBER CACE 11023871 DIV11, THE BANK OF NEW YORK MELLON, F/K/A THE
BANK OF NEW YORK, AS TRUSTEE, VS VICKY LEE GRUSBY, ET AL. CASE
NUMBER CACE 11021448 DIV11, AND THE BANK OF NEW YORK MELLON, F/K/A
THE BANK OF NEW YORK, AS TRUSTEE, VS RICHARD VON HOUTMAN, ET AL.
CASE NUMBER CACE 08031773 DIV11; ESTABLISHING A SPECIAL REVENUE
ACCOUNT ENTITLED "AFFORDABLE HOUSING PROCEEDS FUND" IN ORDER TO
RECEIVE THE FUNDS; DIRECTING THE CITY MANAGER TO DEVELOP A
FRAMEWORK IN ORDER TO UTILIZE OR DISTRIBUTE THE FUNDS TO CREATE
AFFORDABLE HOUSING THROUGHOUT THE CITY OF MIAMI AND THE STATE OF
FLORIDA.
WHEREAS, the City of Miami ("City") is a national leader in holding major banks
accountable for improper actions in their handling of mortgage loans; and
WHEREAS, the City has sued Bank of America, Wells Fargo, J. P. Morgan Chase and
Citibank (collectively "Banks") for violations of the Fair Housing Act seeking damages caused to
the City as a result of discriminatory loans resulting in foreclosures; and
WHEREAS, the litigation against the Banks has been fought to the United States
Supreme Court and has resulted in a new law helping local governments to address issues
relating to housing in their communities; and
WHEREAS, the improper actions of the Banks that resulted in foreclosures have
significantly harmed the City, the State of Florida, as well as other communities across the
nation; and
WHEREAS, the harm caused by the improper actions includes, but is not limited to,
reducing the availability of affordable housing; and
WHEREAS, legal counsel for numerous parties seeking major sanctions in the Circuit
Court, Seventeenth Judicial Circuit in and for Broward County, Florida, against Bank of America,
The Bank of New York Mellon and their legal counsel, Liebler, Gonzalez and Portuando, for
obstruction of justice, destroying evidence, defying court orders, forgery, perjury and violations
of Florida's Racketeering and Corrupt Organizations Act in the foreclosure process and litigation
related thereto has committed to tender to the City, for the purpose of advancing affordable
housing, all funds agreed to or awarded as sanctions, after attorneys' fees and costs ("Funds"),
in the cases of: The Bank of New York Mellon, f/k/a The Bank Of New York, as Trustee, vs
Joseph Behr, et al. Case Number CACE 11023871 Div11; The Bank of New York Mellon, f/k/a
The Bank of New York, as Trustee, vs Vicky Lee Grusby, et al. Case Number CACE 11021448
Div11; The Bank of New York Mellon, f/k/a The Bank of New York, as Trustee, vs Richard Von
Houtman, et al. Case Number CACE 08031773 Div11; and
WHEREAS, the affordable housing crisis is a serious issue in the City and the State of
Florida that requires substantial additional resources in order to make a significant impact; and
WHEREAS, the City has just completed the largest and most comprehensive affordable
housing study in its history; and
WHEREAS, the City is well prepared to dispense these Funds in a manner that aligns
with the needs of the State of Florida; and
WHEREAS, the Funds are to be appropriated by separate Resolution(s); and
WHEREAS, pursuant to Section 2-33(e) of the Code of the City of Miami, Florida, as
amended ("City Code"), the City Commission unanimously deems this Resolution to be of an
emergency nature; and
WHEREAS, it is appropriate for the City Commission to (i) accept all Funds in the cases
of The Bank of New York Mellon, f/k/a The Bank of New York, as trustee, vs Joseph Behr, et al.
case number CACE 11023871 DIV11; The Bank of New York Mellon, f/k/a The Bank of New
York, as trustee, vs Vicky Lee Grusby, et al. case number CACE 11021448 DIV11; The Bank of
New York Mellon, f/k/a The Bank of New York, as trustee, vs Richard Von Houtman, et al. case
number CACE 08031773 DIV11, (ii) establish a special revenue account entitled "Affordable
Housing Proceeds Fund" in order to receive the Funds, and (iii) direct the City Manager to
develop a framework in order to utilize or distribute the Funds to create affordable housing
throughout the City of Miami as well as the State of Florida;
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 City Manager is authorized' to accept all Funds agreed to or awarded as
sanctions, after attorneys' fees and costs, in the cases of: The Bank of New York Mellon, f/k/a
The Bank Of New York, as Trustee, vs Joseph Behr, et al. Case Number CACE 11023871
Div11; The Bank of New York Mellon, f/k/a The Bank of New York, as Trustee, vs Vicky Lee
Grusby, et al. Case Number CACE 11021448 Div11; The Bank of New York Mellon, f/k/a The
Bank of New York, as Trustee, vs Richard Von Houtman, et al. Case Number CACE 08031773
Div11.
Section 3. The special revenue account, entitled "Affordable Housing Proceeds Fund,"
is hereby established in order to receive the Funds.
Section 4. The City Manager is directed to develop a framework to utilize or distribute
the Funds to create affordable housing throughout the City and the State of Florida.
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 City Code
provisions.
Section 5. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
ndez, City Attor ey 5/23/2019
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.