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HomeMy WebLinkAboutCC 2020-01-31 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Friday, January 31, 2020 10:00 AM Special Meeting City Hall City Commission Francis X. Suarez, Mayor Keon Hardemon, Chair, District Five Ken Russell, Vice Chair, District Two Alex Diaz de la Portilla, Commissioner, District One Joe Carollo, Commissioner, District Three Manolo Reyes, Commissioner, District Four Emilio T. Gonzalez, City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk City Commission Meeting Minutes January 31, 2020 10:00 AM INVOCATION AND PLEDGE OF ALLEGIANCE Present: Chair Hardemon, Vice Chair Russell, Commissioner Diaz de la Portilla, Commissioner Carollo and Commissioner Reyes. On the 31st day of January 2020, the City Commission of the City of Miami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, in special session. The Commission Meeting was called to order by Chair Hardemon at 10:20 a.m., and adjourned at 2:32 p.m. ALSO PRESENT: Joseph Napoli, Deputy City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk Chair Hardemon: Welcome to the January 31, 2020, special meeting of the Miami City Commission. The commission are Alex Diaz de la Portilla, Joe Carollo, Manolo Reyes, Ken Russell, the Vice Chairman, and myself, Keon Hardemon, the Chairman. Also on the dais are Emilio T. Gonzalez,, our City Manager, Victoria Mendez, the City Attorney, and Todd Hannon, our City Clerk. Commissioner Carollo: If1 could make a correction. Chair Hardemon: We don't see him on the dais, but that is what the -- that is what, yeah, at least what the government represents as our City Manager is Emilio T. Gonzalez. The special meeting will be opened with a prayer by Commissioner Reyes, and the Pledge of Allegiance will be led by Commissioner Diaz de la Portilla. All rise, please. Invocation and Pledge of Allegiance delivered. ORDER OF THE DAY Chair Hardemon: We will now begin the special meeting. The City Attorney will state the procedures to be followed during this meeting. Victoria Mendez (City Attorney): Thank you, Chairman. Any person who is a lobbyist pursuant to Chapter 2, Article 6 of the Code of the City of Miami, Florida, must register with the City Clerk and comply with the related City requirements for lobbyists before appearing before the City Commission. A person may not lobby a City official, board member, or staff member until registering. A copy of the section about lobbyists is available at the City Clerk's Office or online at www.municode.com. Any person making a presentation, formal request, or petition to the City Commission concerning real property must make the appropriate disclosures required by the City Code in writing. A copy of this code section is available at the Office of the City Clerk or online at www.municode.com. The material for each item on the agenda is available during business hours and at the City Clerk's Office and online 24 hours a day at www.miamigov.com. Any person may be heard by the City Commission through the Chair for not more than two minutes on any proposition before the City Commission unless modified by the Chair. If the proposition is being continued or rescheduled, the opportunity to be heard may be at such later date before the City Commission takes action on such proposition. The chairman will advise the public when the public may have the opportunity to address the City Commission during the public comment period or at any other designated time. When addressing the City Commission, the member of the public must first state his or her name, his or her address, and what item will be spoken about. A copy of the agenda item titles will be available at the City Clerk's Office and at the podium for your ease of reference. Anyone wishing to appeal any decision by the City Commission may get a verbatim record of the item City of Miami Page 1 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 at the Office of Communications or online at www.miamigov.com. No cell phones or other noise -making devices are permitted in chambers. Please silence those devices now. No clapping, applauding, heckling, or verbal outbursts in support or opposition to a speaker or his or her remarks shall be permitted. Any person making offensive remarks or who becomes unruly in Commission chambers will be barred from further attending commission meetings and may be subject to arrest. No signs or placards shall be allowed in Commission chambers. Any person with a disability requiring assistance, auxiliary aids, and services for this meeting may notify the City Clerk. The lunch recess will begin at the conclusion of the deliberation of the agenda item being considered at noon. The meeting will end either at the conclusion of the deliberation of the agenda item being considered at 10: 00 p.m. or the conclusion of the regularly scheduled agenda whichever occurs first. Please note commissioners have generally been briefed by City staff and the City Attorney on items on the agenda today. Thank you. Chair Hardemon: Thank you, Madam City Attorney. Gentlemen, as we know this is a discussion item regarding the Affordable Housing Master Plan, and so I thought that what we should do is at least hear from the drafters of that plan. I believe they have a short presentation they would like to make to us, and then from there we can lead the discussion. There is not necessarily -- there is not a requirement for public comment. However, if there is a time in which we are decision -- making decisions or you want to hear from the public themselves, we can make that decision to do that as well. SPECIAL MEETING ITEM(S) SP.1 DISCUSSION ITEM 7131 Commissioners and Mayor A DISCUSSION OF THE MIAMI CITY COMMISSION FOR THE PURPOSES OF TAKING ANY AND ALL ACTIONS RELATED TO THE CITY OF MIAMI'S AFFORDABLE HOUSING MASTER PLAN INCLUDING BUT NOT LIMITED TO THE ADOPTION OF ANY RESOLUTIONS FROM SAID DISCUSSION. RESULT: DISCUSSED Chair Hardemon: So, with that being said, I want to move and acknowledge FIU (Florida International University), for the presentation that they have for us today. Is anyone from Florida International University here? Ned Murray: Good morning. My name is Ned Murray. I'm the Associate Director of the George M. Perez Metropolitan Center at Fill. I'm with my colleagues today, Kevin Greiner and Nika Landgren (phonetic). Kevin will also be addressing you as well. We do have a fairly compact presentation. Many of you have seen much of it before, along with your staffs, over the past year. So we've streamlined it a bit and focused in a little bit since the last meeting to help answer some of the questions and provide some further clarification. I first, though, would like to just provide some perspective on the importance and the magnitude of this particular plan. Eighteen years ago, the City of Miami entrusted us, the Metropolitan Center, to take on a major study. The study was called the Florida East Coast Railway Strategic Plan. Many of you probably remember it. At the time, the railway corridor, including the neighborhoods around it, Wynwood, Little Haiti, Edgewater, the whole Biscayne corridor, in fact, were languishing. Wynwood was just a bunch of boarded up factory and warehouse buildings. We had 56 acres of land sitting just south of the design district, which also wasn't doing very well at the time. It had gone through a downturn. 56 acres of railroad cars, a staging facility, and a lot of dirt. But you entrusted us to do something bold, and back then there was nine of you. And you entrusted us to come up with something that was innovative and that could stimulate economic development reinvestment along this area that had lost 18,000 jobs over the previous two decades. That plan, of course, ended up with Midtown, the development City of Miami Page 2 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 of Midtown, and the revitalization of Wynwood. This all occurred before Tony Goldman even got involved, but he was a smart guy. He saw that Art Basel had come to Miami and he had this $1.1 billion investment in Midtown going forward, the largest urban infill project in the country. It was a congratulations. So I came before you 17 years ago, one year after that plan started, and we had a similar audience, actually even a bigger audience, people standing out there, all from the neighborhoods of Wynwood, Little Haiti, Edgewater, Overtown, all here because it was their plan. It was their plan and the commissioners who were involved, particularly the district commissioners at the time, felt it was their plan and we must have gone through dozens upon dozens of community workshops and meetings to make sure that it was the community's plan but also represented the interest and what the commissioners felt was important to them in advancing the economies of these neighborhoods. So here we are, 17 years later, and people have asked me, how would you rate this plan relative to that landmark plan of 17 years ago? In many ways, it's more important. It's of the same magnitude, certainly, in terms of its development potential, but in other ways, it's more important because back then we weren't salvaging or trying to preserve neighborhoods, we were trying to revitalize neighborhoods. We were trying to bring back economic investment. We are now dealing with what this plan is all about, the soul of Miami, and the soul of Miami that we've made very clear are its people, its culture, and its neighborhoods. That's what we're here fin-. That's what this plan represents. It's more than just an affordable housing master plan. Its a plan for the future of Miami and to preserve and protect., but also provide economic opportunities and wealth building opportunities for our residents. And that's the critical element that some folks maybe don't understand when you're doing an affordable housing master plan is the economic development aspect of this and the wealth building aspect of this, which is critically important to the success of the plan itself. So with that, I'm going to provide a few slides that gets into the planning process, an overview of some of the key data points that we've already talked about, but I want to highlight again. And then I want to share with you, I think some of you have already seen it, we put together a two -and -a -half -minute video that was presented at the open houses and workshops. I think some of the commissioners have seen it as well. Two and a half minutes, it's really a wonderful and compelling video that I think will even further advance the plan as we begin to promote it, not just in terms of the city, but what you are doing today, hopefully, is something that's truly landmark and will put Miami ahead of every major city in this country. You'll be the first to do a affordable housing master plan that's as comprehensive and innovative as this one is. There's nothing else like it. So with that, a little bit about the planning process itself. You've asked us, as I said, to prepare this plan, to engage the community, many of whom have attended the open houses and the district workshops over the past year, many who are represented today, neighborhood residents, stakeholders, developers, builders, lenders, we've had focus groups throughout the city as well. They're all represented in this plan. It's their plan and it's the city's plan. We're only here as your technical advisors basically. So it was that one-year planning process. It's actually been probably over a year right now. But the primary goal was really important because we realized that when you're talking about affordable housing, you're really talking about housing in general, housing for everybody who lives and would want to live in this city. So, when we talk about a spectrum, a spectrum of choice, opportunity, and quality of affordable housing and rental housing, it's for the residents, but hopefully for those who want to come here, work here in our city in the future. It's a 10-year plan, but what we're doing is providing the institutional infrastructure with this plan to make this truly sustainable and resilient for years and years to come, well beyond the 10-year timeline of the plan itself. So, with that, the primary objective of the plan is to keep Miami residents in their homes. This wasn't an original thought when we began the plan, this came from you, in particular Commissioner Reyes, which I had met -- which we had met earlier on, and really made it clear to us what was really going on with your constituents, how distressed many of them are, both renters and owners. So we knew at that point that's City of Miami Page 3 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 our number one priority. We need to keep people in their homes, and then to provide opportunities not only for them, but for their children and grandchildren to stay in our great neighborhoods here in the city and be able to build wealth through home ownership. A real important aspect of the plan itself. The plan itself which we're going to go over in outline form, I'm going to let Kevin do that in a minute, has five major elements. And we're going to go through those. And we've talked about those at the last meeting. But we'll get a little bit more specific today, particularly some of the details in terms of the opportunities that are in the plan for home ownership. But today, all we're really asking, and the city is asking you, is to accept the plan as you did 18 years ago. The FEC (Florida East Coast) Corridor Study was presented to you and with a series of resolutions for you to send it back to the City Manager and to direct his departments to implement it. That plan was implemented within six months. Midtown Miami, a $1.1 billion investment, happened within six months of this meeting that took place 18 months ago -- 18 years ago. Because we had really clear direction from you to the City Administration, we had a real idea of what needed to be done, there was a big financing aspect of this, if you remember, we had to create a CRA (Community Redevelopment Agency), we had to create a community development district. We had to change the zoning and we needed to get the zoning in quickly because there was concern about what Miami 21 might bring. You don't want that uncertainty when you're putting together a massive plan like this. There was a lot of pieces that had to fall into place. So same thing today. If we can direct the City to begin to work on some of these details, we'll be able to move very quickly. And we're here to help you with that as well. We don't go away. We're FIU. We're here to help you even on an in -kind basis. So we're asking you to authorize the City Manager and his professional staff to do that work and we're certainly going to be here to help you with that. Before I go further though, I do want to share this two -and -a -half -minute video that all your constituents have seen. Most of the folks that are here have seen. It really is compelling. And when we create the website for the plan, we already had a website during the process, but we're going to recreate a website domain where your residents, the city, the country, will be able to lock into this and be able to see what you've accomplished. Two and a half minutes. Audiovisual presentation made. Mr. Murray: Thank you. That video, as I said, will be on the City's website for everybody to see, along with all the presentations and all the information. So, we start with the problem. !just wanted to highlight a couple of data points before we get into the five elements, and these reinforce what the video was all about. When you do an affordable housing master plan as an economic development plan, you have to remember, we come from economic development backgrounds. We are not housing advocates per se. What we do is economic development, as we did with the FEC Corridor study, the targeted industry study we did a few years ago. This is really our forte. But if you understand economic development, you also understand you have to have a workforce and you have to have housing that accommodates them. So when we do an affordable housing master plan, the first thing we do is to do a needs assessment, which is really an economic development study to look at the supply and demand factors that are impacting Miami's affordable housing issues. Number one is we all know this, we're predominantly a low -- low-income occupation and earnings community, not just us, but South Florida in general, Florida in general. We have high income disparity, we are the tale of two cities as you know, a lot of wealth and a lot of obviously, economic distress, rapidly rising home values and so much of this is being impacted of course by foreign investment. I think we are recognized here today and I think it's becoming more and more obvious we're a global city. We are truly a global city and we have to look at the market and the real estate market in particular as a global city for investment. And we have been that way for some years now, and we will continue to be that way. So the question is, what does that mean. for our residents? What does that mean, for your constituents going. forward as land values City of Miami Page 4 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 and construction costs and all these things continue to rise? So, that's really the emphasis of this, is going back to the original point, how do we keep our residents in their homes? How do we preserve our neighborhoods? Little Havana, Allapattah, Little Haiti, Coconut Grove, I mean, if they go away, if we lose them, what's then? We've become just this one big Brickell of a downtown location, which is slowly happening. But all the great cities, as you know, Boston, New York, Chicago, they all have, what makes a great city in their regard is the fact that they all have great districts and neighborhoods that make them great. And we are the same. We have those districts. We have those neighborhoods. But they're under threat. They are seriously under threat because no other city in the country has experienced the level offoreign investment that we are, we are truly a global city. So obviously with that, the fact that we are a basically a low -wage economy, that is obviously impacting the ability of a lot of our residents to be able to pay those rents or to be able to afford those kind of mortgages. So, obviously, we need to be able to address that as part of the plan itself That's why this is as much an economic development plan as it is an affordable housing master plan. We don't have a lot of land, but we do have redevelopment capacity, and we're going to get into that a little bit more because we think there are some real opportunities there, particularly on the commercial corridors. And then this issue of appreciation, it's happening so rapidly since the recovery about 2012 or so. We're seeing that year over year these rent and home price increases, that we're losing -- we're losing upwards of almost 1,300 units a year just through appreciation, just through market appreciation. So, it's not just the fact that we need to put forward a plan to build and preserve 32,000 units to address our need over the next 10 years. We're kind of running in -- on a treadmill truing to keep pace because we're losing almost 1,300 units a year through market appreciation, which by the way is just going to continue. We're not going to have that kind of downturn we had 12, 13 years ago. There may be a downturn, but not in terms of values, not in terms of rents. So with that, I want to turn it over to Kevin Grinder, my colleague. He's going to get into the specifics of the plan itself the five elements of the plan, and also talk a little bit more about why it matters, particularly from this economic development perspective, because that is so critical to wealth building and making sure that our residents, our citizens, can stay in their homes and create wealth for both them and their future generations. So with that, Kevin, thank you. Kevin Grinder: Morning Commissioners, Mayor Suarez, Kevin Grinder, Senior Fellow at the George M. Perez Metropolitan Center. I'm going to take about 10 minutes to go through the broad strokes of the plan. I do want to elaborate on why investing in affordable housing really does matter, and three major points. The first is that it's an investment that pays back almost instantaneously to the city. When families pay less of their income, when they pay a more reasonable portion of their income, closer to 30 percent of their income on housing costs, that frees up millions of dollars a year that goes back into the local economy. So, by investing in affordable housing, you're not just doing, not only just doing the right thing, it's supporting your workforce, but supporting families, you're putting money directly back into the city's economy every single year. It's a payback you see almost instantaneously as soon as you start reducing the percentage of cost on housing. The second point is that the downside is, if we fail to invest in affordable housing, this is a cost that can't be escaped. Can't run, can't hide, but you've got to invest now or pay a bigger price later. By not investing in affordable housing, you're forcing residents to move out of the city, seeking lower costs elsewhere, but they're still commuting back in because they still work in the city. The city is the major employment zone of the entire county. So, we're actually increasing transportation costs, and that bill is going to come due. Medical costs, when -- especially low-income families are spending too much on housing, public medical costs go up. Public health -- public health outcomes drop. Educational outcomes drop. Your labor force doesn't improve as quickly because people can't spend as much on education. So, there are real costs you can't escape. Investing right now in affordable housing actually saves you money in the long term City of Miami Page 5 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 because you're not having to do those costs later. The third is that in Miami, which in my humble opinion, I'm a student of cities around the world, I've lived in cities around the world, Miami is one of -- well, the most interesting city in North America, one of the most interesting cities in the world just because it is so diverse. It has such dynamism, such energy, and it's driven by the cultural fabric of its neighborhoods. What we're really fighting for here, this is a fight for the soul of Miami. Those neighborhoods are under assault. Little Havana, Little Haiti, those neighborhoods are being gentrified rapidly. Imagine a situation where we've gentrified a big chunk of the city. We don't have those neighborhoods anymore. What is Miami at that point? Is it Miami anymore? I don't think so. So, this is a real fight for what makes Miami -- keeping Miami what makes Miami. And that's a real value there. I'm going to go quickly through the broad strokes of the plan. It is a bold plan. We're actually suggesting a recommendation based on population increase as expected increase over the next 10 years if we continue to lose units to appreciation. We're recommending raising the percentage from right now it's about 19 percent of the total market that's affordable to families earning 80 percent of the city's median income. We're moving that needle from about 19 percent of the total market to 25 percent, which makes Miami look more like the rest of the country in terms of total percentage. But to do that, if price appreciation continues, number of units, those 1,200 units continue to be lost and population increases as expected, that's about 32,000 units. Now, we're not talking new units, but that's either acquired, rehabbed, and some new units, but in total combination, about 32,000 units to move that percentage up to about 25 percent. That equals about a $4 to $6 billion total investment in our estimate. To get there, we've recommended a plan that has the scale to deliver those units. That is unprecedented, both in Miami's history and the rest of the country. Speed, flexibility, and doing it with as much intelligence as possible so we're spending money, we're investing money as wisely as possible. We're also leveraging the city's money. It's largely a privately funded plan that we've recommended. The key strategies that are going to make this work, the opportunity to preserve existing affordable housing is the low -hanging fruit. And I'll show you the actual numbers on that. That's your real opening, quick and very affordable opportunity. That's also a way you start stemming that 1,200 unit a year loss. You've got to eat into the number of units that are that are being taken off the market through price appreciation. Preserving is affording through acquisition as well as loans. Simple, tinge -tested, proven, and one of the more interesting findings through the study, proven out through our focus group work with investors, bankers, real estate developers, this is a plan that's going to need to rely on not 200, not 300 unit projects because there isn't much land left and the size of the parcels that are left. The City's looking at the sweet spot of building on this plan, 1 to 5 to 50 unit projects. And that changes the game dramatically. Right now affordable housing is a game built for large developers because it's difficult, complex, hard to finance. All of the recommendations of the plan are aimed at democratizing the affordable housing process in the city, opening it up, small owners, small developers, single family homeowners, opening it up to a new class of investors in affordable housing that really hasn't happened before. So we're talking about opening this up to a whole new set of investors, builders, owners, developers, but in that 5 to 50 unit is a real sweet spot, and that's what these recommendations are built around. Some of the key strategies to make this happen, aggressive land banking looking at acquiring lending to properties that are currently affrrdable, repurposing an expansion of commercial uses, strip malls, T5, T6 uses, and tapping the strength of the city's existing real estate development talent. That's critical. We've got one of the smartest, best, fastest, most talented real estate development ecosystems in the nation. I've never seen a city where towers go up as fast and are sold as fast. We've got some real talent here. Let's capitalize on that and use it. The plan does that. We need to build local not -for -profit development capacity. Let's look at innovating the technology. Let's make this an investment in new types of housing, more efficient housing, green housing, focusing on ownership and management. Let's use these investments as much as possible. Let's leverage them with other economic development, small business, to City of Miami Page 6 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 really start investing in a large way in communities that need it most. Let's make this the anchor of rebuilding entire communities, not just providing housing units, but really fostering the whole economic development of the most distressed communities within the city, and a focus on mixed -use, mixed -income development. Those are the ones that work best. Geographically, where this plays out in the city, we've looked at where the greatest opportunities are in terms of developing affordable housing. The City's T5 and T6 corridors, lithe RAD (Rental Assistance Demonstration) program progresses, there's significant opportunity to provide new mixed -income, mixed -use units within the existing public housing projects. Single-family neighborhoods, an important part of Miami's fabric and a huge opportunity to protect and preserve affordable housing and help keep homeowners in their affordable homes. Limited single-family accessory dwelling units. We're being cautious about the development of micro units because that will serve such a small slice of the market. And as I said, repurposing, converting commercial properties, and then future TOD (Transit Oriented Development) development. Those are your best opportunities. In terms of the numbers, you can see those immediate opportunities on the chart, the numbers of existing units that are affordable. If you look just at the T5 and T6 corridors, that's 42,000 units right there existing that are currently affordable. So, the units are out there, and it doesn't mean spending all on new units at all. We wouldn't recommend that. But the opportunities to develop rental and ownership housing is already there, just focusing on existing units. There's a significant wealth of those units across the city, and you see that play out throughout the rest of the city. Single family, the RAD program, TOD sites, but really T5, T6, and the single family opportunities are tremendous within Miami. Serves a large part of the market and demographics. Geographically, you see where it plays out. The yellow is single family home opportunities, affordable. The purple and blue are TOD sites, or sorry, the purple is RAD program targeted sites, and the green are the T5 and T6 corridors. So really the opportunities are in the communities that need it most, those are where your opportunities intersect. We've looked actually across the entire city, district by district, and summarizing the exact needs. When you total the gap between units in each district. And we've even taken, we had a large discussion at the last workshop about use of median income, and we've used the city's median income, we've even refined that now. We're looking at median income by district because each district has such a different median income compared to each other. So, you look at really, really expressing who's in need, you can see that there is -- there is large rental demand in each of the districts and there is significant demand for ownership units. This represents the gap between the number of families at 80 percent of median income and the shortage of units, both renter and owner. So there is opportunities to develop significant ownership and rental properties. And as we've said, it's not an either or proposition, because when you're developing ownership, and increasing the city's percentage of ownership is important, but investing in renter housing is actually a pipeline to develop future owners. If you're getting renters into properties at a more affordable rate, they're immediately saving owners, they become future homeowners. They're actually building your home ownership base through building affordable rental housing wells. It's a continuum. The first -- the five point -- the second point of the five point plan, we're recommending creating an affordable housing finance corporation. This also is a time -tested, traditional methodology to bring focused resources and talent to a problem. And you see that play out across the United States over the last 50 years. Development of development corporations, finance corporations, controlled by the City but given speed, flexibility and the ability to pool funds, finance property acquisition, own property if they had to, and really coordinate and leverage the City's investment, leverage the City's money to build a pool of funding. We're also recommending that this is an opportunity to tap into the city and the region's considerable development talent. This entity should really be the best and brightest of our real estate talent so that we can really focus on the scale of this problem. You've got that opportunity with a development corporation. To find it, a corporation needs a creative fund. We've recommended building a layered. fund City of Miami Page 7 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 looking at a number of sources to get to a $4 to $6 billion total investment. You're going to need over ten years, probably about a billion dollars in different incentives, tax credits, other types offunding, public investment, and also low interest loans. So, you've got to build a layered fund from a number of sources. Reaching scale on that quickly is really important. We think it's not only doable, the one thing that it's doing, and you look at the available sources, we're not proposing anything that's radical or anything that's rocket science. One of the keys here, remember that we talked about making affordable housing development accessible to smaller players. One of the keys here, one of the reasons affordable housing is tough to do is as an affordable housing developer, you may have to go to 10 or 12 different places to stitch together funding. We're recommending that because you've got a corporation, you've got a And that's managed by the corporation, you're creating a one -stop shop. This now makes it much easier for smaller owners, builders, developers to access funding, get service and get support, these are sources that you can easily layer together to build a capital stack. Leveraging the City's $85 million and that really, that first $85 million is key because that that not only leverages, it puts the City as the driver of it and it gives you the leverage to bring other players to this party that really need to come to it, especially the large banks, the large local banks. We have been making investments, but it's time to ramp that up. This gives you the real key to do that. The type o f products that you can then create from this fund, shared equity investments, pre -loans and pre - acquisition loans are really important. Smaller developers have difficulty acquiring property to develop affordable housing. It's hard to hold a property when you start having to make payments and it takes you a year and a half or two years to get it permitted. They often lose the opportunity. So let's support the front end for the smaller developer's property acquisition. Again, that used to be done years ago, lost in federal programs. We're talking about rerunning it through the City's mechanisms here, down payment system, lease purchase agreements and development of housing co-ops. You can also do customized loan products. You've also got the opportunity and you may not call them abatements, but you can investigate the opportunity to do rebates. Much easier to do. You have that opportunity as well through this vehicle. Fourth point in the plan, as I said, opening affordable housing development to all is really key to make this work. It's not going to happen just through large developers. It's not going to happen through large products. It's going to be a mix. Single family, up to 50 units is your sweet spot. So let's simplify access. As I said, let's make a one - stop shop with a corporation, the best talent we have to service it and access to funding all in one place. That is a new -- that is a new and innovative approach to affordable housing. That's not being done anywhere right now. Making it streamlined easy. The City's already streamlining the zoning process. Continue that. We heard loud and clear from the development community the amount of time it gets -- takes. Affordable housing is difficult as it is. If it takes a year or more to get permitted, that can kill a project extremely quickly. So turning up the timetable on that, providing better expertise, the City's working on that, and we hope you continue to move down that road. Part of the opportunity here is to invest in new technologies. Part of the funds can actually sponsor development of more affordable, mass-produced, greener housing as a part of this. And you can drive the City's climate change agenda as well. The last point, and fifth point, we would be making a grave error if you are going to invest $4to $6 billion in the city's economy and not be very conscious about the opportunities to create new small businesses and jobs. If you look at the opportunities here, there is an opportunity to create actually incubators, accelerators, provide training for new contractors. There's grants for small and women -owned minority entrepreneurs, equipment loans, development incubators, a simplified, continuous, and consistent community benefits agreement that applies to all investments conning out of this fund would be of a great benefit to the city and its residents. It would also simplify the process. Let's have a standard community' benefits agreement that everybody knows is going to apply walking into projects. You can also offer preferred access to the rest of the City's investments if you're investing in affordable housing. So there's an opportunity. We conservatively estimate that this will create about 12,000 City of Miami Page 8 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 jobs and ifyou go $4 to $6 billion of total investment, that will actually generate, through multipliers, anywhere between $11 to $20 billion of new economic activity over 10 years in the city of Miami. That is extremely significant and that's what we mean about an investment in affordable housing being a dividend that keeps paying every year. It's a gift the city gives to itself on an annual basis. It really is. We've also recommended a standard practice in peformance management so that ifyou do succeed in creating this arm's length controlled by the City entity, there's standard practices in keeping tight, clear, controlled management of this entity. So you're managing performance and you're watching the books each year. I just want to reiterate what Ned said, that the City, by accepting, adopting, and hopefully implementing the plan, puts the City of Miami in a national leadership position. Nobody else has taken on the problem at this scale, not even New York. This really would put Mianii instantly on the national scene, on the national stage, as a real leader in affordable housing development and economic development. With that, we'd like to entertain your questions. Thankyou. Chair Hardemon: Thankyou very, much. Commissioners, do we have any questions for the gentleman? Vice Chair Russell: Good morning. Thank you, Mr. Chairman. Chair Hardemon: You're recognized. Vice Chair Russell: Thank you for the presentation and all the work that you all have done. What is your take on how we have spent the first -- or how we have allocated the first tranche of the bond? And I've asked Mr. Mensah if he could answer any questions about that with regard to the millions that we've set aside for that, how we divided it up in different categories, single family home versus multi family, and then how we leveraged it through an RFP (Request for Proposal) looking for matching dollars in stack. I'd love to understand what would be different moving forward if we adopt the plan from what we've done up to now. Mr. Grinder: Well, I think the mechanics of how you -- well, the categories, the opportunities that you've taken, I think those are, that's the low -hanging fruit. I think they've been really smart in terms of what your immediate opportunities are. The issue that going forward is going to be, is going to be one of scale. You really do need to ramp it up. And it's -- I think the Community Development Department and Director Mensah, we've seen, gets one of the best leverage rates of any community development department in the country. They're getting someplace between six and nine for every public dollar spent, they're getting back six to nine dollars of private investment, which is a great leverage ratio, but it's a question of scale, speed, which you probably won't get through a City department. And this was actually guidance that we took from City staff. They looked at this, we laid out a number of options, and they were very clear to us that to reach this target, we really need to create an entity that's focused on this, focused on it full-time, and has the tools, talent, time to build this kind of scale. Because this scale is absolutely unprecedented. Vice Chair Russell: What is the leverage rate that you're recommending through this - - through the loan program, through everything? What would you hope and expect that we could do with this 85 million as a multiplier? Mr. Grinder: It's going to be a range and you get, the thing is when -- ifyou look at kind of the instant opportunities, you can make, low-cost, sometimes $25, 000 will go an extremely long way in keeping somebody in a home, maybe rebuilding a roof and in exchange, they're keeping the home affordable, even if they choose to sell it. That's the typical arrangement that you make on a home preservation. And these are HUD (Housing and Urban Development) programs that used to have millions attached to City of Miami Page 9 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 them that don't exist anymore. Home improvement, home renovation loans. We're talking about recreating this through the City's entity. So it's going to be a range. But then you're leveraging, you might be leveraging a value on the home of 100, 125, 250 thousand dollars. So you're getting a tremendous leverage ratio. It going to range by the type of products. Typically, I mean, if you're doing really good work, you get on renovation projects on existing properties, you may get up to a 10 or 12 leverage ratio if you look at what comes in in value. On new projects, it's harder to get that. That's where you get a five to six to seven type of ratio, if you're really good. So anywhere from 5 to about a 12 is what you expect across the range, depending, it's project by project. Vice Chair Russell: Interesting, so for example, today we're working with Rebuilding Together. We're doing an event this very morning, actually. Nine homes are being renovated, single family homes. There's different stacks that they're pulling from, but what my understanding is they're able to take a government dollar that we give them and multiply it on a renovation, minimum double, and in best case, about four. And I was thinking that's a huge win, but you're saying we should be starting at the thought process of about a five. Mr. Grinder: You can do that, yeah. They do great work. They're also working with families, I'm working with them in South Dade as well. They're actually working with families at the very lowest end of the income scale. A lot of the homes that they work on, they actually target homes that are the most difficult to renovate. These are homes that require significant, sometimes handicap improvements, entire bathrooms, kitchens, entire roof. So, they are actually -- they are spending a lot of money. They leverage a lot of it through volunteer help, volunteer labor, sponsorships, and that is a good leverage ratio, but when you're really looking at the ability and you look at the work that Director Mensah does, 6 to 9 to 10 leverage ratio, when you start getting low interest loans, you really get the private players piggybacking on to the public investments with the higher, you get the higher leverage ratios. Vice Chair Russell: Mr. Chairman, could I ask Mr. Mensah about our leverage ratios on what we've allocated already? Chair Hardemon: Yes, and then once you're finished with your line of questioning, I'm going to call on Commissioner Carollo. Vice Chair Russell: Thank you. George Mensah (Director, Housing and Community Development): Good morning, Mr. Mayor and Commissioners. Yes, we've actually achieved about 24.3 leverage ratio, if you look at your screen, you'll see that for the tranche one, we have 621 units, the amount of City funding is 10,000, sorry, 10,150,000, and the leverage is 260,750, and when you look, it becomes 24.83. For 16, 344,000 no, 16,344, is actually the average cost per UB (Unit Built) housing unit built. So, that's what we achieved so far. Vice Chair Russell: So that's a 24? Mr. Mensah: That's 24, yes. Vice Chair Russell: That seems incredible. Mr. Mensah: Yes, it is. Vice Chair Russell: So -- City of Miami Page 10 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mr. Grinder: It is. Vice Chair Russell: So, the loan fund concept is a departure from what we've done in the first tranche. And so as we choose to adopt a plan and move forward, that's why I'm trying to really understand what's broken with what we're doing and what would we be -- what would be better than what we're doing by adopting the plan and following it through. Mr. Mensah, what's your opinion on it? Mr. Mensah: The difference between this methodology and what the innovation fund does is that, as you can see, this is purely city funding, which is -- the 10 million is purely city funding. With the innovation find, you also got philanthropy that will come in to be able to provide something that is in addition to what the city has provided, so we could get an even higher ratio than what we are currently getting. 1 also think that you have to look at the fact that this leverage ratio we have achieved is partly most because of the tax credit program. So, if you take the tax credit program out there, the ratio definitely will go down. And because of the competitive nature of the tax credit programs, if we want to rely only on the tax credit programs, we will never reach the 32,000 units that we're thinking about because of the competitive nature. So this innovation fund brings in additional dollars which could be used instead of the tax credit price. So, when the city developers go to Tallahassee and they only get three projects, we can do two or three additional projects that are not tax credit related but will be made up of this innovation fund. Mr. Grinder: And one of the key differences is that a corporation that's then qualified as a CDFI (Community Development Financial Institutions) under federal guidelines, opens it up to a whole nother set of funding sources that the city typically can't get a hold of or can't use, new markets tax credits. It could have its own source of significant new markets tax credits. It could participate either as an equity or debt participant in opportunity zone investing, which is some of the fastest growing investment vehicles in the United States right now. So it opens it up to a -- using the corporate -- development corporation format allows you to use a lot of sources that the city really can't get a hold of on its own. It brings a lot more tools to the table. Commissioner Reyes: Mr. Mensah. Chair Hardemon: Commissioner Carollo, Commissioner Reyes. Commissioner Carollo: No, no -- Commissioner Reyes: Oh, I'm sorry. Chair Hardemon: Commissioner Reyes. Commissioner Carollo: I'll let him go. Commissioner Reyes: No, no. I want to hear what you've got to say (INAUDIBLE). Commissioner Carollo: Well, I'm going to be taking quite a bit, I think. Commissioner Reyes: Well, that's usual (INAUDIBLE) -- Commissioner Carollo: Alright. Thank you. Commissioner Reyes: I'm used to it. Commissioner Carollo: Well,. first of all, thank you all for being here this morning. Mr. Mensah the -- I see the leverage amount that you're putting here and everything City of Miami Page 11 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 else, and 1 was, just thinking about something that I learned at a very young age in life, that paper would hold as much ink as you want to put into it. Interpret that any way that you would like to. But on the amounts that you've shown us here overall, the $16,344.61 that was the City's average cost for housing unit built, how much was the average cost of that unit? Mr. Mensah: I didn't do that, butt can do that right now. It should be -- ifvou look at the number of units that we have here, it translates to, I don't know if I'm doing it right, but about 419,900. This is all in. Commissioner Carollo: Excuse me, 419,000. Mr. Mensah: That's what is shown here, if you divide it by that. Commissioner Carollo: Okay, so you're telling me that the average cost of these units were 419,000. And we contributed 16,344.61 towards the cost of those units. Is that correct? Mr. Mensah: That's what I have here, 16,344 average cost per UB housing units. Commissioner Carollo: Chairman. Chair Hardemon: Yes. Commissioner Carollo: You're going to become very focal in your district in some of the information I'm going to bring out. How many people do you think you have in your district that can afford a unit that's 419,000? Chair Hardemon: In ownership? Commissioner Carollo: Yeah. Chair Hardemon: With the down payment? Commissioner Carollo: Yeah. Chair Hardemon: In mortgage and interest? Commissioner Carollo: Yeah. Chair Hardemon: In the district, quite a bit. I mean, I have a district that's very diverse, so a lot ofpeople make good money that live in the district. My community is on the upper eastside, Buena Vista East. Commissioner Carollo: But I'm not talking about the wealthy part of your district. I'm talking about the bulk of your district that's not as wealthy. We all have wealthy parts in each of our districts, but they're minorities. Chair Hardemon: The -- the other -- Commissioner Carollo: Especially in the bay. The closer you get to the water, the wealthier they are. Chair Hardemon: The more expensive, right, and it becomes more expensive. But other parts of my district, there's a great deal of people who live in the district who cannot afford a mortgage of that amount, of course. Unless they have -- unless of course, and this is what happens a lot I've seen in the district, they've maintained the City of Miami Page 12 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 cost of the housing as far as the sale price, but they found programs. I've seen instances they find programs that reduce the liability of the debt that the hone purchaser has. So, for instance, if a house costs -- they sell it for 300,000 in the neighborhood to maintain the home values in the neighborhood, they have $100,000 or $200, 000 in some sort of mortgage assistance grants that the homeowner does not have to meet that financial obligation for. So I've seen them do that. Mr. Mensah: Okay. I have just been corrected that the 16,000 is bond eligible units, because not all the -- how many is bond eligible units, which means that not all the 600-something thousand are bond units. Because when we -- do you want to come and explain? Commissioner Carollo: Just explain to me, since you can't figure this one out yourself right now. The 16,344.61 that we're investing in leveraging these units, what are those units actually costing? You first told me 419,000. It's obvious to everyone here that it's a very high number that most Miamians can't afford, whether it's to buy or to rent, because even if it's to rent, based on the cost of that unit then, it's going to be a very high rent, unless they're getting subsidies from somewhere. Alfredo Duran: Alfredo Duran with Housing and Community Development. The 621 units are bond eligible units, meaning that they are up to the workforce level, which is what the bond is intended to assist. The total cost of this development is for projects that the total development cost, which some projects had market rate units, which were not bond eligible units. So, our investment of $16,000 is for bond eligible units. 621 of those units were bond eligible units. So, the question that you're asking is hard to figure out right now until we have all the spreadsheets of all the projects costs and how many units were non -eligible. Commissioner Carollo: So, you can't tell me right now? Mr. Duran: No, sir. Commissioner Carollo: When do you think you'll be able to give me a number on that? Mr. Duran: We would have to go back to the file and check the total unit mix. Commissioner Carollo: We're starting the day in the wrong foot. But anyway, I appreciate that. Mr. Duran: The $16,000 is with the Citv's investment, not the cost per unit, the City's investment per unit. Commissioner Carollo: I know that. Now, using the last member you gave me until you figure out whatever number, new number you want to give me, how many of these units do you really feel would not have ever been built if we had not given them 16,344.61 per unit. Mr. Mensah: Your question is, Commissioner, I can't hear very well. So your question is, how many of these would be built if we didn't give them money? Commissioner Carollo: How many would not have been built if we had not given them money? Mr. Mensah: I cannot tell you how many wouldn't be built, because obviously if the City didn't provide them money and if the developers have skin in the game, they will scramble anywhere to -- but there are some people that we didn't give them money City of Miami Page 13 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 that currently cannot build. Because we had 24, 27 projects that applied for funding. There are some that we didn't give them funding that have no longer moving forward. So I can 't tell you that. Commissioner Carollo: Do you think that these units would have been built or not if we had not given them that money per unit? Mr. Mensah: Maybe not. We can't say, but I think that not all of them would have been built. Like I said, there are some that we didn't give them money, that didn't build. Commissioner Carollo: So you think not all of them would have been built? Mr. Mensah: No. Commissioner Carollo: Well, I'm going to give you my opinion. I think that probably all, if not many, would still have been built if we had not given this. This is why this high leverage that you've given me, I just don't buy that we're given this huge leverage. First of all, and I'm glad Mr. Duran clarified that, on the workforce, this is on the probably high end of workforce housing amounts in our city, $419, 000. This is very different than the cost for the biggest need that we have, which is the low-income housing. The people that make up the vast majority of Miami. They can't afford high- level housing, either to rent or to own. When you're getting into this $400, 000 plus range, you're getting into a whole different ballpark. And this is, while it's needed, I'm going to tell you where basically you're getting the people for these units. They are coming from outside the city of Miami. They are not coming from the city of Miami itself, that have lived here, and in other words, they are leaving an inferior unit for something better. Mr. Duran: If may go back to your -- again, the $400, 000 per unit is not the right figure because it is not counting -- these are only the bond eligible units. So, that per unit count would go down significantly. When you add those, it will not. Now going back to whether or not the projects would be built with or without our money, perhaps they would, perhaps they wouldn't. However, there is no guarantee that those income levels, which is not only, up to workforce, there is also 80 and lower, would have been provided to the City with the guarantee and the commitment that the City would obligate them for a long period of time. So we are securing these units for a very long period of time, the affordability period, which is what our dollars are intended to do. Commissioner Carollo: (UNINTELLIGIBLE). Mr. Grinder: Point of clarification? Sony, Commissioner. Commissioner Carollo: Excuse me, I am with them. I will get to you in a minute. I thank you for those words and information, but I think you've made my point in what I'm trying to show here, that this leverage of 24 to 1, or whatever it is that you're saying, this is all assumptions that we've really got all this leverage. Because most of these would most likely have been built, whether they had that or not. In a way, it just made it cheaper to developers to build, especially big developers. Small type of developer is a different story now. The one that's going to go out there and build the dozen to maybe 50 units, it's a whole different ball gaine. And those, I believe are the ones that this city needs to get involved with the most because we have the most amount of small land available, it's empty all aver the city, that you can only build those sizes. The big boys, like some that I see here, they don't care about that. They want to go with the big units that they can get $419, 000 jor, because there's a lot of money involved in that. These same units. for $419, 000 that are probably a two - bedroom, two -bath, with the plan that we're proposing in the city, at best we could bill City of Miami Page 14 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 them for about $175,000 and give it to the public for that same amount of dollars to buy. But let me move on. Before 1 get to you, sir, 1 asked the deputy manager -- by the way, Mr. Manager, did we ever get anything from the mayor so that the Commission could approve the vacancy that we've had with the City Manager that's not around so that you or somebody could be confirmed? Or did I forget something in the last meeting? Joe Napoli (Deputy City Manager): Commissioner, I don't think anything has been sent to you. The city manager is currently on the leave. Commissioner Carollo: We'll deal with it at the end if this commission would like to, but maybe we can't because of the special commission meeting. The amount of costs that the City paid for this study, do you know what it was, sir? Mr. Napoli: The Commission approved 125,000 and the cost — the cost is 110,000. Commissioner Carollo: Okay. Was there any additional monies that were spent on this outside of that? Mr. Napoli: No. Commissioner Carollo: Okay. When did this study begin? Do you remember? Mr. Napoli: I don't know the exact date, but it was about a year, a little over a year ago. About a year ago. Commissioner Carollo: About a year ago. Mr. Napoli: (UNINTELLIGIBLE). Commissioner Carollo: Okay. And do you have the timetable of how long it took to get the study back from the actual date that the commission approved dollars for? Mr. Napoli: The initial draft, I mean I can get that date, but it's been an iterative process up until now. Commissioner Carollo: Alright. My next question is, did you check District 4 for accuracy in the information we were given or you just take it at face value that everything we were given was accurate and correct? Mr. Napoli: I was briefed on it several times, Commissioner, with staff I know there were a lot of questions asked during all of those iterative sessions we have. I think our staff, as they were going through and working with them,, were checking information all along. Commissioner Carollo: What was the input or involvement of the city manager with this process, if I could get that on the record? Mr. Napoli: The city manager received a copy of the draft and was briefed on it. Like I said, I was involved throughout the process with our affordable housing steering group where we were consistently briefed and updated on the project. Commissioner Carollo: You would just send him drafts of what was going on, basically? Mr. Napoli: I'm sorry, Commissioner, I couldn't hear you. City of Miami Page 15 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Carollo: You would send him drafts of whatever they gave you or whatever you were told? Mr. Napoli: Correct, and he was briefed by our station it. Commissioner Carollo: Okay. So, to go back to my, original question, did you check, when I say you, I'm talking the city manager, yourself, or anyone that you could point to in your administration under you that you could give directions and orders to, was there anyone that checked for the accuracy of the different information that we were given in this report. Mr. Napoli: Like I said, Commissioner, in all of our meetings there were a lot of questions asked. I'll ask George Mensah to see if he and his staff were checking for — Commissioner Carollo: I'm talking about the final draft, as we have here. Mr. Napoli: I'm sorry, I didn't hear your question. Commissioner Carollo: The final draft that we have here. Mr. Napoli: Right. Commissioner Carollo: Was there any checking into the accuracy of the information in this report that we have received? Mr. Mensah: George Mensah, commissioner — Commissioner Carollo: Hold on for a minute. I just want him to answer the last question. Mr. Napoli: Commissioner, like I said, during all of our sessions on the iterative process, there were a lot of questions asked, and several of those questions were on accuracy. Our staff I'll ask George Mensah to ask how his specific procedure was for fact checking. Commissioner Carollo: Okay, so at least from you and the manager, I see that there's no checking for accuracy. Maybe your people that work under you did some of that. So I'll go to Mr. Mensah, if you want to punt it. Mr. Napoli: No, I'm not punting, Commissioner. I'm just telling you what occurred. Commissioner Carollo: Thank you. Sir. Mr. Mensah: Yes, Commissioner. Commissioner Carollo: Did you do any checking or did anyone in your department under you do any checking for accuracy in the final draft of this report here? Mr. Mensah: Commissioner, I reviewed all the 82 pages on the report. I also had my staff review all the 82 pages. We also have another group of community residents who are part of Connect Capital, it was to send to them all to review and see if they have anything that they can correct. And we did make FIU make some corrections on our suggestions and make some changes on our suggestions. Yes. Commissioner Carollo: Okay. But this final draft here, the administration is .fine with it, correct? City of Miami Page 16 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mr. Mensah: Yes, yes, to the best of nay abilities. Commissioner Carollo: Okay. Madam City Attorney, did your office use the stats in this report to validate our bonds? Victoria Mendez (City Attorney): In the City Attorney's Office, pursuant to resolution -- to certain resolutions that passed by the City Commission, was able to use the raw data in the needs assessment as -- and the needs assessment report, the original phase one, for the bond validations. Commissioner Carollo: Okay. So it was used for the bond validation? Ms. Mendez: It was used. The raw data was used. Commissioner Carollo: So we already put out one portion of it, 15 million, correct? Ms. Mendez: No, it was just we've just gone to the bond validation portion. Commissioner Carollo: I understand that, but I'm talking out of the 100 million that we had, 15 million went out already. That we put out, out of the 100 million and the $400 million package that we had, we worked out so that 15 million would go out in the first tranche of the bonds that we're putting out? Ms. Mendez: Pursuant to the bond validation, 1 don't think we've put anything out to market. I know that there have been certain placements that have been done and we may have reimburse ourselves, but I can -- Commissioner Carollo: But this is what I'm talking about in the placements of what we have identified that's going to be going out. There's 15 million that has been taken out of the $100 million already. Ms. Mendez: Give me one second. Commissioner Carollo: The 100 million was for housing. Chair Hardemon: Mr. Mensah. Commissioner Carollo: She's giving me an answer to everything. Robin Jones -Jackson (Senior Assistant City Attorney): Mr. Commissioner, no, there has been no borrowing since the bond validation. Commissioner Carollo: Excuse me? Ms. Jones -Jackson: There has been no borrowing. The City has had -- there's been no borrowing, there's been no bonds put out yet. Commissioner Carollo: I think you're all not understanding what my question is. Ms. Jones -Jackson: Thank you, sir. Commissioner Carollo: Out of $100 million that we have with bonds, we have taken $15 million out of the 100 million that we already have identified where it's going. Ms. Jones -Jackson: Yes, we have identified that 15 million, when the City does go out for the. first tranche would be for affordable housing, but that has not occurred yet. City of Miami Page 17 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Carollo: 1 understand. Ms. Jones -Jackson: Thank you. Commissioner Carollo: And this is where we are now putting the bond validation based upon the stats that we have gotten here, correct? Mr. Mensah: Can I, Commissioner -- Commissioner Carollo: We're using the stats that are here to validate the bonds once we put them out. Ms. Jones -Jackson: Among the different types of evidence that are in the bond validation are the Phase 1 needs assessment as well as other studies for the local community. That is one of the pieces of evidence. Commissioner Carollo: That's what 1 wanted to get on the record, that we are using this and you've confirmed that. Thank you. Commissioner Reyes: May I add to that? I just want to, Mr. Chair, I want to clarify from the Attorney's answer. What you're saying is that the validation took into consideration the findings of the analysis that was part of the -- of the argument presented to the court? Ms. Mendez: What we placed in our bond validation was the first part of this report. Commissioner Reyes: The first? Ms. Mendez: Not what's here before you. Commissioner Reyes: Not the implementation. Ms. Mendez: Right. Commissioner Reyes: They --just the findings of this report. Ms. Mendez: Right. So in the needs assessment -- Commissioner Reyes: Is that right? Ms. Mendez.: The needs assessment and technical compendium that had all sorts of raw data, all that information was used towards our bond validation. Commissioner Reyes: And in order to clari_fy what we are doing here today. Does what -- according to what you're saying is if we -- in order to validate, in order to be able to sell our bonds, we have to accept the findings from the analysis since they were used for validation purposes. Ms. Mendez: So let me clarify that. What you have before you today is the Affbrdable Housing Master Plan. Commissioner Reyes: Yes. Ms. Mendez: That, in just certain pages 13 through 19 and 34 through 48, you have certain raw data and certain information. Commissioner Reyes: That's right. City of Miami Page 18 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Ms. Mendez: If you decide -- whatever you decide to do with that Affordable Housing Master Plan, 1 just want the record to reflect that in those pages, there's raw data that was in the original needs assessment compendium that we put in the -- Commissioner Reyes: That -- it's -- Ms. Mendez: But that raw data was obviously -- Commissioner Reyes: Yes. Ms. Mendez: -- manipulated and worked on by FIU to make certain other conclusions. Commissioner Reyes: Okay. Ms. Mendez: We just need -- we just relied on the raw data, which is all the different studies that were done and things of that nature. Commissioner Reyes: Okay. But, but the question is, in order for that validation to take place, I mean, we already validated it, the deal, in order, for us to be able to sell the bonds, we have to accept the findings. Ms. Mendez: You have to accept the raw data. You do not have to -- Commissioner Reyes: The raw data. Ms. Mendez: Right. You do not have to -- Commissioner Reyes: Okay. You can call it, you can call it, the raw data in the second, in the implementation, and the raw data that is in here, in the first phase. Ms. Mendez: Right. In the raw data that's in the needs assessment and technical compendium, which was the first phase. Commissioner Reyes: The first phase. Ms. Mendez.: And the raw data that's in pages 13 through 19 and 34 through 48. But remember that data is different from the conclusions that FIU mav have come through by manipulating that information and the recommendations. You do not have to accept the recommendations. Commissioner Reyes: That's right, but we have to accept that all the findings that FIU because we using it -- Ms. Mendez: The raw data. Commissioner Reyes: Yes, ma'am, I know what raw data is, but that raw data is included in this report. Ms. Mendez: Yes, it is. And that what we are discussing is we're going to accept this report. Ms. Mendez: Yes. Commissioner Reyes: And it is needed to accept this report in order for us to be able to sell the -- City of Miami Page 19 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Ms. Mendez: You can bifurcate it. I'm not telling you that you have to accept all the recommendations. Commissioner Reyes: I'm not talking about the recommendation. The recommendation is Phase 2. Ms. Mendez: Right. Commissioner Reyes: Okay. Ms. Mendez: But in Phase 2 you have -- Commissioner Reyes: 1 know, 1 know you are -- your concern. When we get to Phase 2, if we're going to accept it or not, we will exclude those paragraphs. Ms. Mendez: Okay. Thank you. Commissioner Reyes: Okay. Yes, I know you're concerned about that. My concern is about accepting the -- what do we have to accept in order for us to be able to sell the bonds? Ms. Mendez: The raw data. Commissioner Reyes: The raw data, which is in Phase 1. Ms. Mendez: Right. Commissioner Reyes: And you would just have to accept the report, that's it. Ms. Mendez: Right. The original report that you've already accepted. You've already accepted that report, so you really don't have to do anything with regard to that. Commissioner Reyes: Okay, that's -- Ms. Mendez: The only thing, the only -- Commissioner Reyes: I misunderstood when we met, that it was needed for us, I mean it was a requirement for us to accept, for this Commission, to accept Phase 1, just the findings. Ms. Mendez: Right, you already accepted that needs. Commissioner Reyes: We already accepted that. Okay. Commissioner Carollo: Well -- Ms. Mendez: But that report, in certain pages of this Affordable Housing Master Plan, it's referenced in there. So, if you decide that you are not happy with certain things with this -- with regard to this Affordable Housing Master Plan, then you don't have to necessarily accept it right now. You can still work on it and things, you know, move further. Commissioner Reyes: I just wanted to clarify° that. I just wanted to clarify that. Chair Hardemon: Commissioner Carollo. City of Miami Page 20 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Carollo: What 1 believe we had done was we had acknowledged receipt. Ms. Mendez: Yes, you did. You already did that. Commissioner Reyes: We acknowledged receipt. Commissioner Carollo: Acknowledge receipt. Ms. Mendez: Yes. Commissioner Carollo: Let me explain why I'm going through all these series of questions. And a lot more that I'm going to be bringing out. And that is because the City of Miami, bar no other city in America, has had the worst record of any city once we go out for bonds. The last two bond issuance that this city went out to, we got slapped down by the Securities and Exchange Commission. In fact, the last one, we became the only city in the country that was ever taken to court by the Securities and Exchange Commission, and we were found guilty and had to pay, I believe, ifI recall, around a million dollars for not being truthful, not being accurate to bond investors. I was not here during those last two go-arounds. I am here now, and I'm certainly going to make sure that 1 do everything that is within my responsibility and reach so that that won't happen again, even if it means that 1 will not vote for something. Now, having said that, let me go into the actual report. So your turn is going to be up in a minute. Thank you. On pages 36 to 44 of the FIU Miami Affordable Housing Master Plan, on page 47 of the Needs and Assessment Technical Componium [sic] that provides the underlying basis for the plan. It seems that there is incorrect data. And let me go into the area that 1 want to bring up. Page 40 of the plan lists the median household income for renters as being $22, 760 for residents of District 3, my district, while on page 44 of the plan, it lists the very same amount of the median household income for renters being at $22,760, the very same amount, for the median household income for renters who reside in District 5. In addition, in page 47 of the assessment, likewise contains the same amount of $22, 760 as being the median house income for renters in District 1, Commissioner Diaz de la Portilla. It is my understanding that the American Community Survey, upon which this portion of the plan is based, is not supportive, it's not supportive of FIU's finding with regards to all three districts having the same median income for renters. We all know the city, we all know our districts, and I submit to you that all three of our districts do not have the same median income of $22, 760 for renters. In addition, on page 41 of the plan, it states that 60.6 percent of housing units in D3 (District 3) are 50 years or older. Page 44 of the plan lists the exact same percentage, 60.6 percent, for the number of housing units in District 5 that are over 50 years of age. The housing units in District 3 are listed as 34,420, of which using the 60.6 percent, are 20,858, slight difference, just a few less units. That, personally, I find insignificant, but I'm still bringing it out because it's supposed to be accurate. But what is truly most striking is that the plan states that there are 41,525 -- 41,525 housing units in District 5, of which 60.6percent would equal 25,164 units over 50 years old. Not the 20,584 as the plan claims, so it's a big difference of about 18, 19 percent within what the plan says and what it should be. In page 53, the plan calls for the creation of an affordable housing innovation fund with a 10-year capitalization of 1 billion 360 million. 1 billion 360 million. 2 billion 985 million. With that amount, the plan suggests that 200 million to 800 million is big swing, big, big swing, be obtained through a vacancy tax, which they were told that it's illegal under the Florida State laws. State of Florida says it's illegal. But nevertheless, we're being given another $200 to $800 million that would be coming from this. Madam City Attorney, did you ever have any conversations with the administrations or the authors of the plan that this was illegal in Florida law? Ms. Mendez: I did not. I know that my staff and the -- City of Miami Page 21 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Carollo: Did anyone from your staff have any conversations with them? Ms. Mendez: Correct. My staff and the administration had mentioned it, that the -- that that's something we could not do. Commissioner Carollo: Okay, so your staff did mention it -- Ms. Mendez: Yes. Commissioner Carollo: -- that this is illegal within the state of Florida, but nevertheless, this is still in this plan as part of the gaps that we're filling. So, in essence, we're being asked for $85 million in a plan that, just in this area alone, we have a gap of between $200 to $800 million. Now let's go through -- let's go to page 53. (COMMENTS MADE OFF THE RECORD) Commissioner Carollo: 53 of the plan. Although this plan identified funding sources of 1 billion 360 million to 2 billion 985 million. And let me rephrase that. When it identifies sources, a lot of big ifs and a lot of big ranges of sources. Page 51 of the plan states, the total investment required to reach the 25 percent affordable unit market share target will require somewhere between 4 and 6 billion of total investments over 10 years. 10 years that I don't think none of us are going to be up here on the elected side. The language, I believe, is suggesting that the funding gap, then, even if we take at face value that all these dollars are going to come from all these other pockets, that is not clear and doubtful, that the gap that we have is actually somewhere in the range of $3 to $4 billion. Now, given all these imaginary funding sources and discrepancies, I would have a very tough time in approving our $85 million to be used as the so-called seed money or the experimental money. If you can acquire, like you're stating here, and this has never happened in the history of Miami -Dade County, $300 to $500 million from philanthropy, and I suggest that you come up with those people that you're figuring are going to come with $300 to $500 million for the $85 million initial money that supposedly is going to spark everything else in here. And what I'm seeing is that the only money that I can ident is hard money, it's already five million for the bonds. There's a series of commercial loans, private loan pool that is between $400 and $500 million. That's not very well explained. The philanthropy monies, 300 to 500 million. Real estate investment trusts, 100 million. New market tax credits, 75 to 200 million. The proposed empty vacancy tax, which you heard the Citv Attorney state that it's illegal under Florida law, and her staff made it clear it was. They got it down here as filling the gap between $200 and $800 million. And then there's an affordable housing linkage, fee of between $200 and $800 million, which brings it to, on page 53, between 1 billion 360 million to 2 billion 985 million. But page 51 says that the total investment required to reach the 25 percent affordable unit market share target will require between $4 and $6 billion of total investments over 10 years. Further, for everything that I read here, which basically it's all the different ideas that have been thrown out there jbr years here and every other city in America, just about, I don't see why we have to create a finance corporation. I don't see why our own department can't handle it. The one thing they will need is that we bring in additional people that you will need, because you don't have enough personnel. But to create a separate finance corporation for what is being shown to us here, you basically have been doing a lot of this, if not most of this, for quite a few years. So, I don't see that. It's another thing, if we're going now into the phase that this Commission already stated that we're willing to put in, I believe it was $250 million, that we're going to be bringing it back and studying it, for the construction of low-income housing and real workforce housing in the city so people City of Miami Page 22 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 can own their own properties. That's a different story where you might need some other mechanism outside of a City department. But in this whole master plan, there's only three paragraphs, one, two, three, that talk about home ownership. And this is really what it's all about. We have been kicking the can in America with rental and rental and rental, and what we need to be speaking about in Miami and in the rest of America is home ownership, home ownership, home ownership, where instead of people throwing their money out the window every month, we can show them and help them into owning their own home. They'll take care of it much more. They'll feel a lot better, and frankly, we could do it at a cost to them that would be equal to what they're paying in rental right now. Because the beautiful condominiums that are built Jro400 plus, $500,000, we can build those in the city of Miami for around $175, 000. The difference is we're going to give them at cost, not be looking to making a big profit from them. And this is where the housing problem has come in this city, that developers, they're not going to make big money, and I'm talking about the big boys, in real low-income housing, real low -workforce housing, they're going to make their money in what we all know, the foreign investors, others that are coming in here and paying high prices. And this is why we have such an unbalance in the market that we have. And the only way that that's going to get straightened out is for government to have to come in with some, the few in the developing world that truly have a heart and want to do something for those that are in most need, and that's the majority of our city, and that they're going to be willing to make a small profit and make their gain in volume. Volume. Not in just make a hit and bring in the millions in every single project. So, I have brought quite a few points up, that just in these alone, we got a problem with our bonds, unless this could be figured out right here, if we're going to be using this. Chair Hardemon: You're recognized, Commissioner Reyes. Mr. Grinder: We'll take each one in turn. You asked the question of whether these -- whether units would be built in the city without subsidy or not. It's clear market failure. We're not aware of any affordable housing being built in Miami -Dade County, for that matter, the entire metro area, without some type of subsidy. There's no developer doing this out of their heart. There are no developers doing this for not making a profit, so that government has to intervene in some way to start delivering these units. And that's where it's at. It's either free land, tax credits, grants. There's no housing, no affordable housing being built in this region without active intervention, active subsidy from government and other sources. It's just not happening. That's why where we're at. It's too easy to make a huge profit in Miami because there is such demand. And that's what we're working against in terms of delivering affordable housing. So there isn't any being built without this. If there was, we wouldn't be here today. There'd be no need to do this. That's why there's such a crushing need to do this. As far as the numbers on age of households, we'd be happy to share those raw data with you,, that's U.S. Census Data. We'd be happy to share those by district, any way you want it, census tract. We're happy to share with you the raw data files. That's directly from census. In terms of the median household income numbers, I'll let Ned handle that. Mr. Murray: And to reemphasize the point, we consider ourselves data experts, but we don't create the data. We rely on the U.S. Census as every other unit of local government in the United States does, including businesses, corporations, marketing firms. No one is going to build a project anywhere in this country without market data. And guess what the source is? The U.S. Census. So we use the U.S. Census. We rely on standard data sources. We have other local sources. Miami Realtors Association are very accurate with their data, obviously, from listing. Every data source we use is legitimate and used by everybody as throughout the country. And it is important though when we start to look and drill down to your districts, if we had come in with citywide data, it certainly would not have addressed your specific City of Miami Page 23 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 questions about your residents and your constituents. So we are able to drill down to the block group level in your districts, in your neighborhoods, to be able to determine who's actually living there, what their incomes are, what their housing issues are, and that's all there. But once again, that's still census data at the block group level. And as you can see, as you pointed out, Commissioner Carollo, renter median incomes are much, much less than even the citywide or obviously owner incomes. And they do vary. There are two districts that have the same amount. That is not unheard of to have two districts. Commissioner Carollo: Three. Mr. Murray: 1 only saw two. But even if that is the case, that is not unheard of. And once again, this isn'tFIU, this is census data at the block group level. So, we are giving you -- we are giving you standard data. So all the information, all the data that was shared with the city as part of the housing needs assessment and the technical compendium that was discussed earlier is almost predominantly U.S. Census Data, very current U.S. Census Data. We've done trend analyses, we've extrapolated in every possible way to give you the best idea of what's going on in your particular districts. Thank you. Mr. Mensah: Mr. Chair. Chair Hardemon: I'll let you respond because I know there were a lot of questions that were asked and once we're finished with responses, I'll call on Commissioner Diaz de la Portilla. You're recognized. Mr. Grinder: As far as the capital stack, again, these are recommendations. These are amounts we look at, we look at what's being done across the rest of the country. We look what's' being done in Florida. And these are amounts that we've seen in other cities, in other cities in Florida and across the state. In fact, new markets tax credits alone, three banks every year get an allocation between $75 and $100 million a year in Florida. new market's tax credits are rarely used in South Florida. It stays up in the rest of the state, but they are collected every year. We're looking at philanthropy that's now moving into affordable housing. In other cities, significant funds have been put in by corporate donors and others, bank foundations. We think Miami is actually fertile ground for philanthropic participation given high net worth and the activity of the philanthropic sector here. So, these are all target amounts. We don't know how these will play out and that's the hard work that needs to be done to put this fund together. It ain't easy. It's going to be real difficult. The start is putting together the team, the expertise to go out and leverage all of this funding. We don't know where the eventual pieces will come out. As far as a vacancy tax, that was kicking back and forth during the -- from the very start of the study, through the end. We left it in with a recommendation to study it. It's worth studying because of the potential amount. We recognize it's a severe uphill climb, but again, that's a projected possible amount, probably not likely, now that the State has firmly closed down on vacancy taxes. That wasn't the case when we started. In terms of linkage fees, those are legal in Florida. In fact, we're looking at -- we've done three studies for Broward County that is looking at implementing countywide linkage fees, which would generate huge numbers for their affordable housing program. So that's a program that the city really needs to look at. It is being done in the state of Florida. These sources are going to have to be put together. It's going to take time. It's going to take tireless effort. If they all existed, again, we wouldn't be here today. If this was all pooled in one place, if there was a vehicle to put these sources together, and if the affordable housing ecosystem delivered this type of expertise, pulled these sources in one place, and made it easy for developers, we also wouldn't be here, but that's clearly not happening. That's another market and institutional, failure. The system is built against smaller players in the affordable housing system we have right now. The only players City of Miami Page 24 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 who can afford to do it are the very, very large developers because there is such huge upfront cost. That's again what this plan is talking about reducing and delivering so that we can actually produce this level of units or to die trying to get there. Chair Hardemon: Mr. Mensah. Mr. Mensah: Yes, Commissioner. Just as an -- I just want to show you this slide that is on your display right now. This is the homeownership units that we've done in the city of Miami. Some of them we built it ourselves. We hired contractors to build. And as you can see, this is the challenge that we have. And 'just want you -- help you in the discussion when you discuss this. Is that if you can see, the total cost per unit is 163,913. The average subsidy that we put in is 67,791 to be able to make it affordable to our residents, which is about 41 percent of the subsidy needed jor each home assisted. So, I just want you to get these numbers so that you know that not that the city has not done home ownership we've done some. It's not where we need to be, and the challenge is that because we have to have a lot of leverage to be able to do that. And I'll just quickly go through some of the houses. This is River Run, which is in District 1, which is a condo, which will help provide units in this, affordable housing. This is -- I believe this is Villa Godoy, which is in District 3. Condo Association -- condo for just low-income residents. This is in District 5, which we built, we hired contractors to build. And we have Ralph Plaza in District 1 and Frow Avenue in District 2, which Ralph -- Frow Avenue, we hired contractors to build, Ralph Plaza was built by a non-profit. And then this is St. John's in District 5, which was built by a nonprofit. So we do, do these home ownership units, unfortunately the financing is what has made it difficult for us in today's market to be able to do more of it. So I just want you to know. Thank you. Mr. Grinder: Mr. Chairman? Chair Hardemon: I need to recognize. Commissioner Diaz de la Portilla: Pm going to be -- I'm going to say just so far -- less than a minute really. Chair Hardemon: Go ahead. Commissioner Diaz de la Portilla: Because this is all very interesting and I appreciate the academic exercise. I think it's important. I think it's significant. I think it's important so that you're informed of what's going on. But all we've heard in the previous workshop, and now what I consider this is turning into a workshop, is from FIU, from two academics. And I see there're builders and people that actually build homes in the audience, and no one has addressed this commission and with their opinion about this study. I think it's important that we hear from the people that actually do the work and not the people that theorize about it. So Mr. Chairman, I don't know what your plan is, Mr. Mayor, but I think it's important that we have a workshop that's really workshopping. And instead ofjust going back and forth between the academic, going through this academic exercise, which is important, but again, we're not in a classroom here. We're looking for results and we need to get the information, but from different parties, from different sources, so we can come to the best possible solution for the citizens of Miami. So again, I'll say it over on issue after issue. We need to move forward, we need finality, and this back and forth is not productive for what -- where we want to get eventually. I think we've done enough of the academic exercise. I've read the study twice. I don't think we need to continue the back and forth, except the questions are important. I understand that part. But Mr. Mayor, maybe if fyou would allow us to have that conversation today. City of Miami Page 25 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mayor Suarez: Absolutely. And I think you expressed it at the last meeting at the workshop. Commissioner Diaz de la Portilla: Yes. Mayor Suarez: You wanted to have the development community, members of the community that are non-profit agencies as well that have spent a lot of time and energy, members of the public who have been waiting here and some of which took days off from work to be here and speak on this issue. And I think you wanted to get input from a variety of different sources -- Commissioner Diaz de la Portilla: Yes sir. Mayor Suarez: -- before making final decisions on what the strategies were that were going to potentially be implemented to execute this plan. So I agree. Commissioner Diaz de la Portilla: Thank you. Chair Hardemon: Commissioner Reyes. Commissioner Reyes: Yes, I do agree that we need to input -- the input of those that are really building. But I also want to make something perfectly clear, and that was one of my concerns when Mr. Mensah came to us with the, 1 mean leveraging of the first tranche and what we did in my district, remember? You had -- you were levering 19 unit apartments. We were getting four apartments and it was close to a million dollars that we were providing those builders. And my main concern was all the time, how are we determining the rent that these people are going to use? Are we using the County AMI or are we using the City AMI? And according to the study of the analysis, the median income of all our districts, it might differentiate to be around 2,000 to 3,000 more than more. And I do understand why we -- some of us, we can doubt that, the way that it was done, because since we traveled all over the district, we see pockets that they are more, I mean, they are poorer than others. And the median income is when you place all of them and the one in the middle, that's the median income. But then you are including all of them, you see. Now, the -- my concern and main concern was and still is, that if we are going to leverage, because one way or the other we're going to leverage this. We're going to leverage this money either through an institution that we're going to create or through your department, but the final analysis, you're going to leverage because that is the only way that we can develop affordable housing, because we don't have the billions of dollars to engage ourselves into a massive, a massive building project. And besides that, we are not builders. You see we need the builders. We need, ifwe want ownership we need the participation of financial institutions. Because if we build ten units and we said, okay, this is going -- ten units are going to be for home ownership, we have to find people that qualms. And the qualification is done through the financial institutions. You see, we need to create all of that. You see, if we are going to go into this, we need to create the mechanism to be able to provide assistance to builders that they are willing to participate in the program and also offer different amount of units. And but what we have to create a methodology that really, that really represents the needs or take care of the needs of the population that we want to serve. Because if you are creating what is called workforce and you are charging $16,000, $18,000 and 140 percent of county AMI that's for people that have median income of $77, 000. You see, we are not creating the right housing units for the people that live in the city of Miami. Now, granted, some people that live outside of the city of Miami could take advantage of that, okay that are making that much money. So what 1 want to know is, can we -- can we really count on the developers that ifwe leverage that money, if we offer them that money, I mean, we are leveraging, we are assisting them in the building, that they are committed to provide that type of I mean, the apartments or the housing units at a City of Miami Page 26 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 cost that really reflects the needs of our population, you see, that it -- that will not burden the actual population of our city, which is --1 mean, AMI is about, no. Mr. Mensah: It's 60 percent. Commissioner Reyes: It's about 60 percent of County AMIs, 60 and below. And that's what I've been fighting all along since Ifirst got here, trying to make people understand that if we want it, we really are serious about providing affordable housing. We have to really build housing units that our people will only be able to pay. People will be able to pay. And the formula is very easy. Thirty percent of your gross income, if anything higher, as (UNINTELLIGIBLE) very well expressed, that it is important that 30 because at any, 1 mean, any percentage above 30 percent precludes you that you have to pay for the housing. Then it leaves you very little money to consume. And as consumption conies down, economic activity comes down because there's less demand for products. See, it's very basic economics. Okay? And the question is, in my question, are we going -- and this is what we have to decide, are we going to leverage this $85 million with, with, I will say, with a covenant or with a compromise, I mean, with the builders, are they willing to offer that type of housing when we are, I mean, when we are giving them incentives to build? Mr. Mensah: Yes, Commissioner. Commissioner Reyes: I mean, and that thing is very important, and 1 want to hear from the builders, you see, because they are the ones that have the last word. Because if they don't build, we won't be able to build. Mr. Mensah: Commissioner, typically what we do is that when we do an RFP, we give minimums. You have to provide, let's say, 20 percent at 30 percent, 40 percent at 60 percent, and then the rest at 80 percent. So something like that. If it's the will of the Commission, and the Commission wants us to be able to enter intoff an RFP be able to say that 50 percent has to be at 30 percent and 20 percent has to be at 60 percent or what the ratios will be, then that's what the RFP will put out. Now, when we put out the RFP, then the builders know what the rules are, so that if they think they can meet those terms, then they will apply for it. Now, what always happens is that once it goes very deep, then the amount of subsidy they will require, they will come and tell you, well, to be able to do this I need $2 million or $3 million. And in most cases when we use the home funds, our total allocation is $3 million. So with only one project, you can get maybe 20, 30 units, and that's all you can get in a year. And so that's the reason why sometimes we've not gone as deep as it is. Butt agree with you, the needs are much more at the 60 percent AMI levels. Commissioner Reyes: Absolutely. Mr. Mensah: And so whatever we can do to be able to bring in additional funding, philanthropy money, that will allow us to be able to go very deep. I think that's what we need to do. So I agree with you. Commissioner Reyes: So what you're trying to say is that we could leverage our money plus try to obtain additional incentives that they are proposing. Mr. Mensah: That's correct. Commissioner Reyes: Either from philanthropy, I mean, I haven't seen any philanthropic money. Mr. Mensah: Well, I'll give you an example. City of Miami Page 27 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Reyes: But it exists. Mr. Mensah: 1'll give you an example. Microsoft just provided $500 million to City of San Francisco to help them. Commissioner Reyes: Can we get our hands into that pot? Mr. Mensah: That's what we're trying to do. Commissioner Reyes: Okay, if we can get our hands into that pot. But what we have to do is we have to develop the methodology that our funds, coupled with any other fiords that are available, will provide the type of housing that our people can pay. That's it. It's very simple. It is simple. If we cannot offer them, 1 mean, it's going to be based on County AMI and 120 percent of County AMI, which is $66,000, as median income, we are doing nothing. We are just lying to ourselves and to the public. That's it. That's it. I mean, and how are we going to do that? That's what we have to determine. If we want housing, I mean, we want ownership, which I really believe it is very important. We have to create the system of building it and also financing it, which is very complicated. And that's, I think we should be working, your department and with everybody else, should be working on it. And by the way, sir, thank you very much for your job. I was -- I have done plenty of this, and I, not this type, but I have done many, many, many analysis, and I know where we get the data from. You see, get the data from the sources. And then the sources, unless there is no data, and you create it, it is raw data, you have to create it. But you get it from the sources. And the main source when we are dealing with economics is the Census Bureau. Mr. Grinder: Thank you. Four quick points, and I'd like to go back to a couple of Commissioner Carollo's, actually, very good points. In terms of leverage, Commissioner, you're absolutely right. And this was -- this was the work of working extensively with about 10 different departments in the City, looking at how do we generate the maximum amount of leverage. Director Mensah does a great job with the very limited funds that he has and the limited tools that he has. Collectively, the decision was that this is the best vehicle to get that type of leverage. And also those other types of sources that replace a lot of money that's drying up right now. Federal and state money is just running out of town on affordable housing. It's not there. And I don't know if it's going to be there. So to leverage the rationale behind the fiord and the corporation as well as the -- what's the fastest, most efficient, best way to leverage these types of funds. In terms of this study, it is not an academic ivoly tower study. We are not ivory tower academics. We don't do that type of work. This was built on exhaustive research. The input from over a hundred of the area's leading bankers, investors, developers, and builders, all who do affordable housing, their direct input, as I said, at least 10 different City departments looked and reviewed, commented, gave us actually great comments throughout the process as well, and we had over 200 attendees at the various public events. Citizens came out and commented as well, and we recorded those comments. This is built on input from the best professional sources as well as the public already. Commissioner Diaz de la Portilla: How many, may I ask, how many community events, public events did you do? Mr. Grinder: We did one in each district to begin with and then we did another follow-up open house in each district as well. So we did 10 different events over the course of the year. Commissioner Diaz de la Portilla: And those 10 events were attended by 200 people total? City of Miami Page 28 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 NA.1 7154 City Commission Mr. Grinder: We had, actually, 1 will get you the total numbers on that. We had at least 200 people in the first round and then we had more people at the second round in the open houses as well. We'll get you the total number of attendees. Commissioner Diaz de la Portilla: Because my understanding, and I was not there, I was not elected, but my understanding was that it was a handful of people that went to the District 1 event, a handful. Mr. Grinder: It started slow. Commissioner Diaz de la Portilla: You're counting on one hand, right? Mr. Grinder: It started slow. Commissioner Diaz de la Portilla: Okay. Mr. Grinder: It started slow and we built more as word got out and we got better attendance at each of the events. And we had good attendance at each of the open houses as well. That was the second round. So we did two rounds ofpublic engagement on this. One was to get their input on the plan, then was to get reaction to the plan. That was the second round. So we not only had attendance, but then we recorded all the comments as well. People left us comment sheets. NA - NON -AGENDA ITEM(S) RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING THE PORTION OF THE CITY OF MIAMI AFFORDABLE HOUSING MASTER PLAN ENTITLED THE NEEDS ASSESSMENT & TECHNICAL COMPENDIUM ("STUDY") SUBJECT TO THE REPRESENTATIVES FROM THE FLORIDA INTERNATIONAL UNIVERSITY ("FIU"), JORGE M. PEREZ, METROPOLITAN CENTER (I) SHARING THEIR DOCUMENTATION ON WHICH THE STUDY WAS BASED, AND (II) EXPLAINING/DEMONSTRATING THEIR METHODOLOGY IN OBTAINING AND CALCULATING THE DATA FOUND IN THE STUDY, INCLUDING BUT NOT LIMITED TO THE METHODOLOGY USED TO DETERMINE THE NEEDS, ESTIMATES, AND PROJECTIONS FOUND IN THE STUDY REGARDING THE CITY ITSELF AS WELL AS THE DISTRICT - SPECIFIC DATA; DIRECTING THE CITY MANAGER TO ANALYZE THE FEASIBILITY OF ANY AND ALL RECOMMENDATIONS FOUND IN THE REMAINING PORTION OF THE CITY OF MIAMI AFFORDABLE HOUSING MASTER PLAN ("RECOMMENDATIONS"); FURTHER DIRECTING THE CITY MANAGER TO ESTABLISH ONE (1) OR MORE WORKSHOPS WHERE THE FEASIBILITY OF THE RECOMMENDATIONS SHALL BE PRESENTED TO AND DISCUSSED BY THE CITY COMMISSIONERS AS WELL AS EXPERTS FROM THE AFFORDABLE HOUSING INDUSTRY AND WHEREBY THE WORKSHOPS SHALL INCLUDE A DETAILED ANALYSIS THAT ILLUSTRATES HOW THE HOUSING FINANCE CORPORATION MODEL, AS DESCRIBED IN THE RECOMMENDATIONS, HAS WORKED IN OTHER MAJOR CITIES IN THE UNITED STATES. ENACTMENT NUMBER: R-20-0031 City of Miami Page 29 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 MOTION TO: Adopt RESULT: ADOPTED MOVER: Ken Russell, Commissioner SECONDER: Keon Hardemon, Commissioner AYES: Hardemon, Russell, Diaz de la Portilla, Carollo, Reyes Chair Hardemon: Vice Chairman? Vice Chair Russell: Thank you. I'd like to make a motion in the same spirit of Commissioner Diaz de la Portilla, bringing some finality, bringing some action. Obviously, there's more to be heard and more to work out, but through a motion, and if there's a second, it'll open up the discussion, I mean, the public comment, which we'll hear from developers, stakeholders, agencies, and residents. Chair Hardemon: I'm willing to open up public comment if there's no objection. I mean, that's perfectly fine. That's part of what we said when we started in the beginning. I know there was a lot of discussion from the community. Vice Chair Russell: Just to sort of set the stage, because I think it'll really start to let us know where each of us is on this issue, the motion I'd like to make is that we adopt the Miami Affordable Housing Master Plan as presented by FIU (Florida International University), with direction, including the finance corporation and the innovation fund, with direction to management to analyze all points that are legal and feasible, and for those that are legal and feasible, to bring us back an action plan, a timeline action plan for implementation that we can then move forward. That would be my motion. Commissioner Reyes: Sir, I -- as much as I like the findings, I am not going to jump into accepting the recommendation, all the recommendations, withoutfurther analysis. You see, I am very cautious. Further analysis. I know that this finance department that you want to create, I mean, that you are suggesting has been done in other areas. I want to analyze all of them, the pros and cons, see what they have done or not. What I will accept and will move, that we accept the findings, which is Phase 1, and that we further analyze each recommendation to determine the feasibility of implementing them in this area. Because sometimes we try to import ideas or departments from other areas, and given our different circumstances, we cannot implement them. So, I will hold on that, on accepting the whole thing, and -- but yes, what I want to do, I want to schedule working sessions. Working sessions where we hear from the developers, what do you need? How much do you need to build? Given the cost, the construction costs and cost Oland, how much assistance do you need? Where the assistance is going to come from. You understand? Commissioner Diaz de la Portilla: Is there a second? Chair Hardemon: Commissioner -- Commissioner Diaz de la Portilla: Is there a second -- Vice Chair Russell: I just want to clarify to see if we can. Commissioner Diaz de la Portilla: Well we don't have a second to the motion. Commissioner Reyes: No, there's no -- I haven't second. Chair Hardemon: Let the -- can the Chair please decide whether or not we have a second? City of Miami Page 30 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Reyes: Yes, I'm sorry. Commissioner Diaz de la Portilla: Okay. Chair Hardemon: Right. Commissioner Diaz de la Portilla: Well, you'll be the second. Chair Hardemon: It sounds like you all are saying much of the same thing. And so, with that being said, the Chair would second the notion, because 1 think that what you said, Commissioner, and what the Commissioner recommended is about the same thing. We can clarify it as we go along through discussion, but it's obvious that it's about trying to decipher what is within this plan. It's something that is either feasible for us, something that we'd like to do, something that we don't want to do, and for us to really give input to the City Manager's Office regarding whether or not how we move forward with the recommendations, of course, of the industry. You're recognized, Commissioner. Commissioner Diaz de la Portilla: Thank you. I don't think it's the same thing. They're saying two different things, actually. I think what he's saying is to accept the findings, and I believe even that, Commissioner, is a little bit premature. I think we need to have finality is important, but so is due diligence, right? So, it's important that we go through the process. 1 think the Mayor was clear, I think, I understood him correct that he wants a workshop, that he wants input from developers and the people that actually build houses. 1 think it's a better product at the end of the day if we discuss it, that we have a sense of order here that we're going before any motion before we take a vote on anything. It may send the wrong message that we're not in agreement and that we're not getting things right. On the contrary, we're truing to get things right. We're trying to be thorough and deliberative and thoughtful in our process. Andl think perhaps today we can move the ball forward instead of trying to throw a 40- yard pass, obviously Super Bowl week, let's, you know, get 4 yards here, 7 yards there, first down, and we'll get there. But think it's important that we have all the stakeholders, many stakeholders here that took time off from work, as the Mayor said, to at least address this commission and give us some preliminary thoughts on this study, which is really the base, the foundation of what we're going to do on affordable housing, or at least we think it's going to be the foundation as we move forward. So I'm not even ready to accept findings until I hear more. I really want to be deliberative and thoughtful. I want to get it right. I want to do it quickly, but want to get it right. So I think that we take our time that we have dedicated to this process today to hear from some other stakeholders. That's my two cents. Commissioner Reyes: Commissioner, as I remember, I recall we were here because we were debating accepting the findings -- on accepting the findings. That's why we're here. And we knew there was going to be a discussion. Now I don't think that is nothing wrong with saving, listen, I hear you. We have your findings here, okay? Now we're going to take it, we take over from here on. And we are going to have work -- I want to have work sessions, and I want to hear from everybody, the people that really are going to build. I agree with you, but I don't see anything wrong on just saying, I accept, I mean, face you're (UNINTELLIGIBLE). We know, and it's been proven, in my opinion, you see, let's validate, and I don't want to start taking so much credit, but this validates what I have been saying from day one, you see. That the system that we had implemented throughout these years doesn't work for the people of the city of Miami, you see? Because we are charging, I mean we are allowing developers that get benefits to charge rents that it goes -- it's totally above what people could pay basing the calculations on accounting AMI (Area Median Income), you see? Which is not the AMI of our residents. City of Miami Page 31 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Carollo: That is a motion that 1 can second. Commissioner Reyes: Okay. Commissioner Diaz de la Portilla: Commissioner. Chair Hardemon: You're recognized. Commissioner Diaz de la Portilla: You may get me there on accepting the findings, but 1 really want to hear. I mean you make a strong argument, you may, get me there to begin to move forward with accepting the findings. Commissioner Reyes: Just accepting the findings, accepting the data. Commissioner Diaz de la Portilla: I am not there yet, I am not there yet, but you know. Commissioner Reyes: Okay. Commissioner Diaz de la Portilla: But 1 'm not, you're moving me there. Commissioner Reyes: Well, I am truing to move you. Let's accept the data. Commissioner Diaz de la Portilla: It is not easy to move me, but you're moving me there. Commissioner Reyes: You know what, Mr. Chairman, what I want to do is I want to set the record straight that that we -- those findings, they clearly state that our residents, the residents, I mean, that we have a great shortage of affordable housing, and that the cost of the affordable housing has to be in line with the AMI of our residents. That's what 1 want to make clear and set the record straight. I mean, set that record, you see. What we are doing accepting AMI that is not real for the city of Miami, then we are not offering affordable housing. That's the only thing. Chair Hardemon: I want to recognize the Mayor. Mayor Suarez: Thank you, Mr. Chair. I think we're a little bit talking past each other because I think the findings can be in two components, statistical findings and testimonial findings. Right, we've had -- they've had multiple community meetings, but this is also a community meeting, right? And so we've had two meetings where the public hasn't had an opportunity because we had the workshop where the public didn't speak and now they're here again. And I think out of respect, for their time and their participation, I think we should listen to the Commissioner's suggestion and incorporate that into our findings because you're going to have testimony from community groups, from the development community, from citizens that are concerned and that are going to have -- yeah, they're concerned and they're going to have -- they're going to give testimonial findings, testimonial evidence that we can then incorporate into strategies, which I think is another component. Commissioner Reyes: Sir, that -- I'm not saying that we will not hear from them. On the other hand, I want their input, butt want to make sure that it is in line with the needs of our residents. Mayor Suarez: Sure. Of course. Commissioner Reyes: That is my only concern. They have to be in line with the needs of my residents. City of Miami Page 32 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mayor Suarez: Of course. Commissioner Reyes: Are they willing, can they provide housing units that they are going to be -- I mean that they're going to cost our residents 30 percent of their AMI, of City AMI, which is $35, 000? You see? I mean, those are the things that I want to hear, and what else do you need? You see? But ljust want to know that -- I mean, I want to make clear that according to these findings, the AMI of our residents is not the AMI of the County. And if we are going to offer affordable housing, it has to he in line with the needs of our residents, not with the County. So that's my only point. Chair Hardemon: You know, Commissioner, in regard to that, one of the things that I think in the city of Miami we've had some issues with, and we talked about creating funding sources to kind of get our hands wrapped around this, is actually making housing available to the people that live here. So, what that means is a combination of what Commissioner Carollo says, that we create affordable housing through especially rental units. The community who lives in the neighborhood many times are not eligible to live in those buildings. And I think that's a travesty of justice. And I think that's part of the reason why there's been such low morale around housing, and why we created the need to renovate existing housing in the neighborhood so that the woman who's owned her home for 35 years but now can't afford to fix her windows, roofs and doors, she can have that and remain in the neighborhood, pass that home down to her child or her grandchild, et cetera. And so with that being said, we have to -- for the housing that we're -- for the housing that we're developing, we have to consistently think of a way to ensure that the people who live in the neighborhood have an opportunity first to move into those spaces. And 1 know there's a motion that's on the floor, so at this time I'm going to recognize the community for public comment. So, if you're here for public comment, on the motion that's on the floor, you are allowed to speak at any of the two lecterns. State your first name, your last name, you may state your address, and we can move from there. Commissioner Diaz de la Portilla: I have a question. Chair Hardemon: Yes. Commissioner Diaz de la Portilla: It's public comment. Are they going to be limited to two minutes again, and that's going to be it? Is that the workshop we're doing, the two -minute comments -- Chair Hardemon: Public comment is -- Commissioner Diaz de la Portilla: -- from experts and developers and builders. Chair Hardemon: We can, I mean, public comment is two minutes, but as a matter of we can hear discussion or if you have a question for anyone, you can ask what you want. Commissioner Carollo: Now and this is what I'm saying here. The majority of the people that are going to get up and speak here, they don't live in the city of Miami. And that's the point that I've been trying to make. I'm interested in building affordable housing for the people that live in the city of Miami. And as much as I would like to help those that live in unincorporated Dade County or other cities of our county, in Broward, or the transplants that move here when they see an opportunity to get good housing that our people can't afford, but we create it for them to be able to afford it. I'm not interested in that. I'm not interested in changing the demographics of our city, where those that live here, we're pushing out, and then we're bringing in new people, the wealthy and beautiful people for these new so-called workforce housing City of Miami Page 33 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 that are not so workforce and they're certainly not low-income housing. And what we're doing is changing the basis, the people of our city. And that's -- you know, one person's opinion up here, but unfortunately we can't get into the address anymore where people live, but just by the faces and some of the statements that have been made from some here before, I know that the majority of people that are going to be speaking here are not from our city. Chair Hardemon: That's probably true. And the one person I do know for a fact that lives in the city of Miami, besides the gentleman smiling to my right, is the gentleman that lives to the left of me. Commissioner Diaz de la Portilla: Well, this is one of my opponents, so 1 know he lives there. Chair Hardemon: May or may not. It hasn't been proven, right? Horacio Aguirre: Former; former, former, former opponent. We're now working together. Commissioner Diaz de la Portilla: But you were a nice opponent, so you're okay. Mr. Aguirre: Thank you. Chair Hardemon: So I'll recognize you first, and then the gentleman to my left. You're recognized, sir. Mr. dAguirre: Mr. Chairman, thank you very much. City Commissioners, Horacio Stewart Aguirre, and I am a proud resident of the city of Miami, 1910 Northwest 13th Street, on the Miami River. I'm delighted to see that this proposal references the financing vehicle because I first proposed that idea in April of 2018 and brought it up at about 100 forums with your esteemed colleague, Mr. De la Portilla [sic], and suggested this type of creation. The idea, however, was not really mine. It existed in the 1980s and 1990s, and I'd like to suggest two names, Community Financing Consortium and Homes for South Florida. And perhaps your staff can research who they were, what their experience was. My recollection of having worked with them was that: A) they were successful and they were staffed by bankers that were loaned from major banking institutions and made it function that way. And another example I'd like to bring up is something that was done by the Northern Trust Bank, and by the way, I am not an employee of Northern Trust, but applause to them. About 20 years ago, they bought up an entire neighborhood on US-1 and about Grand Avenue, Commissioner Russell, maybe somewhere around there, and renovated what, about 50 houses, made them affordable housing. Very nice example of a successful recreation. Thank you very much. Chair Hardemon: Thank you, sir. Commissioner Carollo: By the way, you're not the $150,000 man, right? Chair Hardemon: You're recognized. Thank you, former representative Roy Hardemon. Commissioner Diaz de la Portilla: It's 270, but that's okay. Commissioner Carollo: I didn't want anybody getting the wrong ideas, since I heard you were an opponent of Mr. Diaz de la Portilla. (COMMENTS MADE OFF THE RECORD) City of Miami Page 34 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Roy Hardemon: Well. Commissioner Diaz de la Portilla: Yes, he was a friendly opponent. Mr. Hardemon: All right, friendly opponent, now it's my time. Former Representative Roy Hardemon. You know, I look at this plan and, you know, ponder on page 5, a fight for the soul of Miami. And I see a lot of division going on. And I look at the part where we've got seven different communities that we're fighting with. And one -- two of them is Model City and Little Haiti. very dear to my heart. And 1 say that because in 2005, Jeffrey Allen, Commissioner Jeffrey Allen, appointed me to the Model City Advisory Board. At that time, the City of Miami had not constructed one house. 1 took the leadership of Model City, now it's called the Liberty City Trust, and we constructed over 40 houses in less than 6 months to a year. We put something on the ground. We made it happen. So to see Model City or Liberty City Trust not at the table, not making no input in this plan, I got a problem with that. And we want to continue to not only fight together, but work together to make sure that when y'all split this money up, the Liberty City Trust, they need at least $25 million to actually fill in those lots that the City of Miami tore down on 61st Street and 13th Avenue. They tore down over 200 homes and apartments on 62nd and I7th Avenue, again, you know, 61st and 13th, 62nd and 17th, all along the major corridors in our neighborhood was demolished and the City of Miami yet to replace them. And I'm saying give us some of that money. Thank you. Commissioner Carollo: Can 1 make a statement to what he said, and ask him a question, Chairman? Chair Hardemon: Sure. Commissioner Carollo: Roy, what was the approximate average cost for you in each of those homes? Mr. Hardemon: When we constructed those homes under Palmetto Homes and Patricia Dean, we went like $105, 000 per house, brand new. Commissioner Carollo: How many bedrooms, how many baths? Mr. Hardemon: We went from two -bedrooms to four -bedrooms. Commissioner Carollo: Right. Mr. Hardemon: Two baths. Commissioner Carollo: Right. How long ago was that approximately? Mr. Hardemon: 2005. Commissioner Carollo: 2005. Well, you know, maybe today it might cost you 150, 000, more or less, maybe a little more, a little less to build. So, you're making any point that we could build at an amount that, you know, would be affordable for our residents. And you've also made a very good point of what 1 tried to point to before, and that is the small builders are very important to us, extremely important, because we have hundreds of lots scattered through the city. And the big boys, there's no money in there for them, so they don't want to get into that. And it's going to be small builders like your organization, many others around Miami, that will be the ones that we have to assist and help to.1111 in all the empty lots that we have in real affordable housing. Thank you. City of Miami Page 35 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Willie Allen-Faiella: Good afternoon, Mr. Mayor and Commissioners. My name is Reverend Willie Allen-Faiella. My address is 16745 Southwest 74th Avenue in Palmetto Bay. No, I do not live in the city of Miami, but as director of St. Stephen's Episcopal Church on McFarland Road for the past 18 years, the issue of housing is extremely important to me and I care deeply about it. To our east, we have a population of people who live in the park, and to our west, just blocks of my church, as I drive through the West Grove, I see people being kicked out and -- kicked out and displaced on a regular basis as that community continues to quote, gentrify. I am here today representing PACT, People Acting for Community Together. We are a coalition of 40 congregations in Miami -Dade, representing 50,000 residents. It should be noted that at our annual meeting, the Metropolitan Center of FI U presented the master plan to the 224 attendees, and it was overwhelmingly approved. It is one of the issues that PACT has been working on and we have been involved in the creation of the master plan from its very beginning. We are here today once more to ask the Commission to adopt it. Please don't continue kicking it down the road. Specifically, we support the recommendations in the master plan to to create an affordable housing finance corporation and a new affordable housing innovation fund to be managed by the corporation. Yes, there is financing. Yes, there is oversight. We urge the Commission to approve a set of guidelines for this fund so that the finance corporation will invest in the best projects that benefit all of us. The guidelines should prioritize projects that are the most racially and economically equitable, that are resilient to sea level rise, and that will prevent displacement. The Commission has a real opportunity here this morning. As the prophet Amos said, let justice roll down like waters and righteousness like an ever -living stream. Thank you. Commissioner Diaz de la Portilla: Amen. Chair Hardemon: You're recognized. Norman White: I'll make this short and brief Good afternoon, Commissioners, Chair Hardemon, good to see you again. Congratulations Alex -- Commissioner Diaz de la Portilla, congratulations Commissioner Ken Russell. I read -- had this -- quickly read this summary, well 82 pages of the extensive study done by FIU. I'm here representing the Miami -Dade Democratic Black Caucus and the caucus president of the state of Florida as well as stands with us. My concern is the interest in the African American and the community. of Color diaspora, Haitian, Jamaican Americans, African Americans. This is my interest. And so without being long-winded, you all know that these communities are in dire straits. I mean, we're hanging on a thin string, gentlemen. And so to put it bluntly, the African American community is in last place when it comes to economics across Dade County. And so, my stake in this fight is to make sure that the Commission allocates a decent proportion of money to the cash - starved Liberty City Trust so that the small developers can have a play at this. You know, I'm proud to hear so many concerns from the commissioners here, the chair, Commissioner Reyes, Commissioner Carollo, and de la Portilla's [sic], Commissioner de la Portilla's [sic], that you guys are fighting for what's right and doing the right thing. And so, hopefully, you all won't leave us behind as we have been over the past, what, 50, 60 years. And so I think that if we -- and I'm not blaming the Commission, but I think that if things were done differently back then, we wouldn't be in this mess. So, thank you all. And on the way here, I got some phone calls from some lawyers who are hungry, to be quite frank, to file lawsuits and to stand in the paint to do what's right for the community. So I thank you all for your time, and I hope that we, when it's all said and done, that the community, I can proudly say that we did what's right. Thank you. Chair Hardemon: Thank you, sir. You're recognized. City of Miami Page 36 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Todd B. Hannon (City Clerk): Chair, ifI could get the speaker's name. Chair Hardemon: Sir. Mr. White: I apologize, Dr. Norman White, the Vice President of the Miami -Dade Democratic Black Caucus. Chair Hardemon: Thank you. Annie Lord: Good afternoon, Mr. Chairman, Mr. Vice Chairman, Mr. Mayor, and all commissioners. My name is Annie Lord. I'm the Executive Director at Miami Homes for All. Our work address is 1951 Northwest 7th Avenue in Miami, but 1 do also reside in Miami and born and raised. I'm just here to -- well, first of all, 1 wanted to thank you for taking the time to quickly begin to discuss this important master plan and also to attempt to take action today. We're, as everyone has said, we're in a terrible crisis and the moment is now. We have incredible pressure and you've also already taken action that tees up great opportunity that we could lose if we don't mow fast enough. From making sure that the people who need it the most are served, to ensuring that home ownership is an important element of the plan, to ensuring that we depoliticise any actions that are taken to implement the plan. And in particular, I wanted to express my support fbr the plan's recommendations to create both the innovation fund and the finance corporation. In particular, I hope that you all will create, of course, guidelines that guide the funding and the criteria for any projects, and as has been said before, to put a preference on racial equity, on sea level rise, resilience, and ensuring that we don't have displacement of residents who live here to the greatest extent possible. Additionally, we're going to have to seed that fund. That $85 million, if it's legally permissible, would be an important signal to other investors from the philanthropic community, from the banking community, from national funders. So I hope you'll consider that as well as a recurring source of revenue. And finally, just to focus on that corporation, it's very important that you set up a board, and I believe you've discussed it, Commissioner Diaz de la Portilla, it's very important to set up a board that will govern that corporation and that will do it in the most -- according to the criteria set out by the fund guidelines that you all would set up. And hopefully you'll include expertise, required expertise, for the people who sit on that board. Thank you so much for your time and I'd be more than happy to discuss with you further at a later moment. Thank you. Commissioner Carollo: Can I ask her one brief question? I'm curious of something. Ms. Lord: Yes Commissioner. Commissioner Carollo: I'm only asking that because a lot ofpeople say that. When you say you reside in Miami, are you talking about the actual city of Miami? Ms. Lord: The city of Miami, sir; yes. Here in Coconut Grove. Commissioner Carollo: Okay, yeah. Well, that's certainly it. Ms. Lord: Thank you very much. I went to Coconut Grove Elementary. Thank you. Commissioner Carollo: Thank you. Chair Hardemon: You're recognized. Natalie Duran: Hi, Natalie Duran. My office is at 1815 Southwest 8th Street, Little Havana. I'm coming in and speaking on behalf of small infill developers. I have right now almost -- City of Miami Page 37 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Chair Hardemon: Can you do me a favor? Can you turn the mic towards your face? Ms. Duran: Yes. Okay, better? I have had the pleasure of sitting down with some of you and discussing some of my projects. I have now about 300 units just in the city of Miami in the pipeline and an additional about 100 units going up in Miami -Dade County, all with an affordable housing component to it. I'm here to discuss some of the hindrances that have faced, and mainly with the City ofMiami and the kind of public benefit program that have had to work with. There are plenty of incentives that come with it, but when you put -- when you have to start building it, you realize that everything is beautiful on paper, but you can't actually build it, right? For instance, 1 have noticed that infill development with the affordable housing density program doesn't really work on zonings that are T6 because you cannot build on 5,000 square feet, 34 units, and provide the parking, right? So you want to buy this property but you can't build it so the benefit programs go out and out go the incentives for a developer to even want to do affordable housing in these type of transit zones. So that's one of the issues that have faced. Another issue is water and sewer connections. So for instance, I'm -- most of my projects are in Little Havana, and I've had to meet on several occasions with Water and Sewer, and Commissioner Higgins from the County level, to mitigate some of these costs because I've had water and sewer connections that have gone up to $700, 000 fbr an eight -unit building. And you're like, what? So, for instance, Commissioner Higgins had offered me a parcel of land that was abutting mine so that could create a more affordable -- a larger affordable housing project. And when I did all my due diligence, I was like, thank you, but no, thank you, I'm not paying $700, 000 for a water connection. So, you know, these water connection fees are really making it difficult for small developers to have to build because we are not going to supply the water line for an entire area of Miami. Another thing that Ifind difficult is sometimes the City ofMiami has more stringent building codes than the actual Florida Building Code. One of them being like minimum unit sizes for one -bedroom apartments. I think that it should be a little bit smaller, maybe for affordable housing. I'm not saying that it should be all of the units, but am I out of time? Chair Hardemon: Yeah, your time is up. Ms. Duran: I'm sorry about that. Okay. Chair Hardemon: It's okay. You can come through. Ms. Duran: And then can I just do like two other things? Chair Hardemon: Sure. Ms. Duran: So another issue that I find is, I'll make it quick, is tax exemptions are only provided for larger buildings of 70 units, so these small infill developers have to pay property taxes on these units as if they were market rate, but the larger developments can qualify for property tax exemptions. And truing to receive any type of tax credits or bonds is extremely difficult for the small developer, so I think that we need to recalibrate the zoning to help the smaller infill developments. Chair Hardemon: Thank you. Commissioner Carollo: That's some really good, informative information. I appreciate it. Chair Hardemon: You're recognized, ma'am. City of Miami Page 38 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Karina Ron: Good afternoon, Mr. Mayor, Mr. Chair, Mr. Vice Chair, and Commissioners. My name is Karina Ron, and I'm the Director of the Center for Financial Stability at United Way of Miami -Dade. Our headquarters are located in the city of Miami, and we advocate for the families of the city of Miami every day. Thank you for taking the time to hold this important meeting and for all your efforts in tackling this critical issue. United Way of Miami -Dade does support the comprehensive work that has been completed by the FIUMetropolitan Center and its partners. We agree that an affordable housing master plan is crucial to the future of our city and our families. This particular plan offers sustainable solutions that address a major barrier to prosperity that so many of our families are facing. In fact, according to United Way's ALICE (Asset Limited, Income Constrained, Employed) Report, nearly 60 percent of Miami -Dade households are living in or are on the verge of poverty. The latest report shows that for some households, like those headed by single females, for example, close to 84 percent struggle to make ends meet. An innovative, comprehensive, and inclusive housing initiative such as this one can become the beacon of hope for so many of our families in order to thrive. And we believe that the goal of growing the supply of affordable housing from 20 to 25 percent of all housing units by 2030 is bold yet attainable if we work together. Miami is a city of the future, but we should not just be defined by our magnificent skyline. We are a diverse community and that is part of the richness of the Miami experience, but that diversity does extend to income levels and we cannot turn our backs on those that are struggling with housing insecurity. A true test of our collective leadership and vision is the ability to face our challenges head-on and meet them. We applaud the Commission for proactively seeking to address the affording housing challenges in our community, and we reiterate that an affordable housing master plan, comprehensive in scope and bold in its vision, is crucial to the future of our city and all of its current and future residents. Thank you. Chair Hardemon: Thank you. You're recognized, sir. Jorge Jaen: Thank you, Commissioners, and thank you, Mayor, for allowing us the opportunity to speak in front of you guys today. My name is Jorge Jaen. I'm a licensed real estate agent. I'm also a real estate developer. I've been involved in affordable housing for almost 25 years within the city of Miami. I'm born and raised in Allapattah, so I know what the city is all about. The situation that we have is very crucial. We're working. We have right now properties that are slated. We have skin in the game. We're building today. I've been building, myself and my partner are building in the inner cities for the last 25 years, as I said. And some of the situations that we've been facing is there's been several issues where buyers can't qualify for properties because the buyers that we deal with in the affordable housing range have to qualify through the FHA (Federal Housing Administration) guidelines. A lot of them don't have those 20 percent downs to put down on the properties. That's one of the problems that we're dealing with, and I haven't seen that issue being addressed in the scope of the information that's getting thrown around. The other issue that we've been facing is a lot of the times we have -- we've seen where our projects get hampered either through a slow process through the Building Department, or we get stuck in environmental because there's a tree, a mango tree, that needs to be cut down. Situations like that where you find it funny, but, you know, we got our money. I don't ask, we don't ask money from the city, we don't ask money from anywhere. We do build affordable housing. I could take each and every one of you to go touch the homes and see the homes. But those are the issues that we see, and then when you actually put money into and you acquire the land and you're paying for it out of your pocket and you're doing your things and you start getting hampered, that eats up on your profit. So what happens is we've been able -- we've had to scale back. Just recently in November, the Commission took a great vote which was allowing the unity of title, an issue that was addressed in the County years ago where you could actually have, through the unity of title, have two individual owners own the same property. City of Miami Page 39 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 You have two different owners on each side. You know, that's a great step because now that allows to have two property owners within one property. We weren't able to do that and it took a long time. It took a process. We've spearheaded that issue since 2017 and it just got approved in November. One of the projects that we're starting to slate, that we're actually going to build now, beginning -- we're trying to see if we start on March 1st, is one of those first units that we're actually going about and applying that new resolution that the City of Miami did. You know there's been a lot of talk. We're small developers. And because we're small developers, we get hit the hardest. A lot of people coming out here to ask for a handout, we don't want a handout. We want the process to facilitate us, to allow us to build. There is a lot of situations, there is a lot of property out there. We've spoken about infill lots that are available. You know, the situation that you have, some of us get hit with situations where you acquire a land, you acquire a lot, you're going to go for affordable housing. All of a sudden that lot that you just acquired had 50,000 in overgrown land. Chair Hardemon: Sir, your time expired a minute and 11 seconds ago. One second, I want to recognize the Commission if they have something to ask you. Commissioner Diaz de la Portilla: How many units, George, do you build on average per building? How many units on average do you have in your buildings? Mr. Jaen: Right now we have 12. We have 12 units and in the process that we either have designs right now for we're going to start four hopefully. Commissioner Diaz de la Portilla: 12 buildings? Mr. Jaen: 12 -- 12 units what we do we build Commissioner Diaz de la Portilla: 12 units in one -- Mr. Jaen: No, no, not one developer. We do is we go to infill lots. We spread it around. Commissioner Diaz de la Portilla: Okay. So in one infill lot, what's your average? 4 units, 5 units? Mr. Jaen: In infill lots we do per year? We by to do it if we do 20 to 25 homes in the inner city. We focus -- Commissioner Diaz de la Portilla: That's not what I'm asking. One of those lots how many units you put in that lot? Mr. Jaen: Depending on the zoning, but right now we have two. The duplex, we have a duplex lot that we're actually putting two units. Commissioner Diaz de la Portilla: You have duplexes, is what you have. Mr. Jaen: We have duplexes, we have lburplexes. Commissioner Diaz de la Portilla: Fourplexes. Mr. Jaen: We have an 8-unit building that we have in design right now. It's with the architect. We're finishing up right now. All of these are within the -- Mr. Hardemon's District and within Allapattah, because we try to focus on the inner cities. Our situation is to try to -- we need to find a way, a process where we can have the process streamlined, where we can go ahead and build these projects. It's a need, I see it, I see it in the individual's faces when you're actually about to close and these City of Miami Page 40 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 people don't qualify because they don't meet the small requirements of the 25 or 15 percent down. Chair Hardemon: So, and I'm going to move on to the next person, but one of the things I want, you know, to remind this Commission about is that if we have the cash, then we can lower the barriers of entry for home ownership for our residents. Because we can build and we can -- we as in either can be through community development or it can be through another entity that's created, but what it can do is it can ensure that there's the financing there to build those homes, mortgage those homes, allow the residents now to pay a mortgage on a home without having to come up with a 20 percent or 5 percent, depending on where they are, you know, or 3 or whatever. But nonetheless, lowering the barriers of entry so we have more home ownership. Because at the end of the day, when they move into these rental units, they're still providing first, last, and security. I mean, so that is a significant setback in trying to purchase your first home, when you have to provide someone else first, last, and security. So I think it's certainly within our purview. We understand it, and I think it's going to be a part of what we're doing. Mr. Jaen: Well, and I'll be really brief with this. The other situation that we have is trying to -- when you're building affordable housing, sometimes you have to -- you have impact fees, you have situations that we try to stay within a medium range. We try to stay within a medium range. And I've worked very closely with George Mensah for many, many years. And sometimes when you get hit with these tremendous impact fees, or you get hit with other fees, it eats up on your margins. It eats up on your margins. And that's what makes it a little bit difficult for us. I'm not a not -for -profit. I don't get subsidies from anybody. This is how we do it and how it gets done. Chair Hardemon: Thank you. Mr. Jaen: So we're a capitalist. So my company has to make money. If not, I don't pay bills. But if there was a way of streamlining that process where everything becomes easier, maybe one department, one individual that can handle that, that would be a good idea for you guys too. Chair Hardemon: Thank you, sir. Mr. Jaen: And thank you. Thank you for your time. Commissioner Carollo: My compliments, because where I see the future of real, real, real low-income housing lies with guys like you and the city. Mr. Jaen: Thank von. Commissioner Carollo: The big boys, they'll give us a beautiful talk here. They'll put all kinds of sweeteners on it. But at the end of the day, you ain't going to find the beef. They want to make big, big bucks. Your margins, they're going to be smaller, and you're going to fill in the needs that we need for the people that live here, not for those who want to move into the city of Miami. So before you leave here, I'd appreciate it if — you could go by my office and give your name and number, because I would like to meet with you and get a lot more of your ideas and how we could help because all we've gotten is the beautiful political tweeters and clips from the administration of how beautiful and wonderful everything is, but it's people like you that 1 hear from all the time of what the problems are. And we have many of them that are preventing you from being able to not only build more, but to provide a better price to a resident. Because if we're killing you in time, it's something that should take just a few months, if that. You've got to wait a year, a year and a half sometimes even more, you're City of Miami Page 41 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 going to have to raise your prices a lot more. And that makes it harder for our residents. So I thank you. Mr. Jaen: Thank von. Aaron Lauer: Good morning. Thank you, Commissioners. My name is Aaron Lauer. I am a pastor at Coral Gables Congregational United Church of Christ, and I reside at 1207 Malaga Avenue in Coral Gables. I'm here today to represent a lot of stories from members of my congregation who live in the city of Miami, and there's one story in particular that 1 want to tell you. It's a young Haan in my congregation who, over the past two years, has had to move three times, first from Brickell, all the way out to Kendall, and now into Liberty City, and he's having to move again. He has two jobs and he lives with roommates and still he has had to move three times because of the affordable housing crisis that we face in this city, especially for young people in our city who we want to keep here, who we want to keep contributing to our economy and our way of life. Through this master plan, our goal is to preserve or build 32,000 affordable housing units in Miami by 2023, and that is a serious goal. Because we have a serious problem, I have sat here today and listened to each of you commissioners talk about the concern that you have for your constituents, the love that you have for this city, the way that you want to keep the people in this city here, the people in your neighborhoods in their neighborhoods. And if we are losing 1,200 affordable housing units every year in Miami, it's because they are falling into disrepair and we need a bold vision to move forward to help solve this affordable housing crisis. So thank you for your time. Thank you for all of your work on this because it's going to be a lot of work and we look forward to partnering with you on it. And I've asked that you vote yes to move forward with this plan today. Thank you so much. Mileyka Burgos -Flores: Good afternoon. My name is Mileyka Burgos -Flores from the Allapattah Collaborative CDC (Community Development Corporation) located at 1951 Northwest 7th Avenue. I am here to urge you to implement the financial cooperation and the fund. This plan is a starting point to make Miami a leader in housing equity and rise above our current affordable housing crisis by implementing housing and economic development best practices. Miamians' inability to afford rising housing costs affects the disposable income they have available to spend in other expenses that stimulate our local economy. This takes a big toll in our quality of life and the ability to save, purchase a home, or invest in a new endeavor. According to the Harvard Joint Center for Housing Studies, between 2011 and 2017, the metro area lost almost 40 percent of the rental units affordable to average city of Miami households. I am an advocate for ownership over rental, and we should pursue both avenues in order to meet residents where they are. In order to properly address the housing crisis, we also must acknowledge that low wages are a major factor in our regional economy. Many jobs in our main industries like tourism, healthcare, and education do not pay a living wage. Unfortunately, Miami ranks amongst the worst cities in the country for low wages. We encourage you to take immediate action by establishing an affordable housing finance corporation and a new affordable housing innovation fund to be managed by the corporation. You have laid the groundwork by commissioning several studies and initiatives, including this one, to ensure we pave a better future for Miamians. If we want Miami to be for Miamians, we must take steps to improve housing affordability. Approving this affordable housing master plan is a great start. Thank you. Natalie Castellanos: Good afternoon. My address -- my work address is 2 Biscayne Boulevard, Suite 1710, Miami, and I am also a resident of District 2, City of Miami. Good morning Mr. Chair, Mr. Vice Chair and all the commissioners and Mr. Mayor. My comments today on behalf of the Health Foundation of South Florida, we are South Florida's largest health -related philanthropic grant maker. As the Policy City of Miami Page 42 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Director of the Health Foundation of South Florida, I've been at the table with many of these organizations for the past year working very hard and diligently to present this master plan. We know how much time and effort and energy has been there and as a philanthropic entity, we've also been at the table supporting this effort. There's no question that affordable housing greatly impacts health. There is a lot of research to support that. We know that the city of Miami's shortage of affordable housing limits families' and individuals' choices about where they can live and makes it more likely that low-income families will live in unsafe housing with physical and environmental hazards or, like the gentleman before me mentioned, be moving around regularly. We know that the impact on health is severe. People are less likely to have a regular source of care. They're more likely to end up in our emergency rooms and those are costs that we all face as a community. Given the connection between affordable housing and health, we support the recommendations in the master plan to create an affordable housing finance corporation and a new of ordable housing innovation fund to be managed by the corporation. And we support that that board, the corporation have a board that includes family, community members and folks from the communities and neighborhoods that are impacted. Thank you. Thaddeus Scott: Good afternoon, Commissioners. My name is Thaddeus Scott. I live at 3794 Florida Avenue in what is, I believe, the most diverse community of all the communities that comprise the city of Miami. Diverse in the fact of not only ethnically diverse, but also economically diverse. And the part that's getting harmed, the part that's getting hurt, the part that's the most vulnerable to being diverse is the low- income section of Coconut Grove here. As we speak, as I'm standing here today, they're tearing down, they're demolishing some affordable, what could be affordable units in my community. And they're building, and 1 mean more power to the millionaires and billionaires, nothing against being a millionaire or billionaire, right, or owning a million -dollar home or whatever the case may be, but what developers are building right now in my community does not afford me to live there anymore. And that's what's going to make my community, I believe, less diverse. That's going to turn it into an elitist community. That's what it's turning into. So I think and I hope and pray, and it was wonderful to hear Commissioner Reyes and Commissioner Carollo speak of providing true affordable housing, true affordable housing so that my community can still sustain itself. The first community, the first settlement of the city, of Miami. It's a shame, it's a shame. I'm brought to tears sometimes just to see how it's being wiped off the face of the earth. No one cares about the people that actually came and built Miami before the drug trade, actually came and built Miami. No one is hearing about those people anymore. So if you guys will please, please, please take into consideration accepting or approving this Affordable Housing Master Plan, I think it would help my community, those of us who remain. Thank you. Chair Hardemon: Thank you sir. Dean Taylor: Good afternoon, Commissioners. My name is Dean Taylor and I'm a property owner along with my wife at 1370 Northwest 69th Street in District 3. I attend Holy Redeemer Catholic Church in the district at 1301 Northwest 71st Street. I am here today representing PAC and as a member of my church that we have families that struggle to pay rent, especially those that have, through all the changes in public housing in Liberty City. However, I'm also a previous director, my professional interest, with respect to my professional interest, going back as far as the model cities program with operated in Liberty City. Also became a director of the County's Community and Economic Development Department and rising to the position of assistant county manager, responsible for community development and housing areas. Throughout my year, the way we think about affordable housing has changed a lot. We can no longer focus on building massive units. This plan focuses on the sweet spot between 50 -- between 5 and 50 units so we can preserve the integrity of our neighborhoods. It employs innovative strategies like the, formation of the affordable City of Miami Page 43 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 housing finance conznzittee, which is a model that has been successfully used in New York City and Atlanta, and the housing innovation fund. In respect to these strategies, I want to address a few details that we feel are important to incorporate. As the master plan says, the Commission should invest $85 million from the Miami Forever Bond into the innovation fund. This will attract potential investors who will see that the Commission is serious about addressing affordable housing. The funding guidelines should set a limit on the maximum percentage of total funding that the City is willing to put into a project so that the public dollars are leveraged wisely and that all projects will be largely privately funded. From the beginning, the Commission should also establish a dedicated recurring source of funding. This is a best practice among other organizations across the country, and it will be critical to make sure that the plan will be viable. The affordable housing crisis has only gotten worse as I was working in this field, not better. But now 1 know that we can do better and with your leadership this is all possible. Please vote to adopt the Affordable Housing Master Plan. Chair Hardemon: Thank you, sir. Luis Herrera: Good afternoon. My name is Luis Herrera, President of the Vizcaya Homeowners Association. First of all, a master plan in Miami should be doing by corporation. The portable house [sic], four years back, they were trying to come in front of the City of Miami. They said affordable housing, affordable housing for the people, they need the houses. No one yet they can be living in affordable housing because of the cost of the rent or whatever they are going to do with it. 1 believe before you apply for any kind of plan, master plan, talk to the neighbors, the associations. They have to be changing the land use. The people, they need some houses, but not the way they do the corporation, because you got use the -- what you call it the -- the bonds, and we got to pay for it. The residents, we have to be pay for it. So we need to have another way to do this job. So in other words, before you do any master plan, make a big study around the neighborhood, what are you going to do, because it's citywide, and they're going to destroy some property next to it that they don 't need affordable housing. Thank you. Mikal Hamin: Good afternoon, Mr. Mayor, Mr. Chairman, and Commissioners. My name is Mikal Hamin. Here representing PAC. I'm also an Imam, a minister at the mosque at 5245 Northwest 7th Avenue. The mosque has been there since 1966. We are a fixture in the community. We're a historical preservation there in the Liberty City area. I also previously worked in affordable housing development. I was here last week encouraging the implementation of the master plan to better Liberty City and to take into consideration that there is a trust, as two other speakers before me, the Liberty City Trust, that help and support minority -owned businesses as well as the African -American community by which Liberty City Trust reside in, and that's Liberty City. It is also -- pays attention to the redevelopment ofpublic housing into mixed - income housing with the intention of keeping folk in place and also integrating housing as to not concentrate poverty. Today I wanted to discuss the composition of the proposed finance corporation governing board. We believe that it should be comprised of people with the necessary expertise, including knowledge of affordable housing development finance and construction, and it should also include people who actually need or have needed affordable housing, who have lived the struggle and know firsthand what needs to be done, people from our neighborhoods and other neighborhoods where affordable housing is usually built. We believe people should have to apply to be on the board and not simply appointed by the commissioners. Applications should be reviewed by the Department of Housing and Community Development and then approved by the Commission. This board will make an investment -- an investing decision but should not report regularly to the Commission. I encourage you to support this plan and vote yes. Thank you. City of Miami Page 44 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Chair Hardemon: Thank you sir. You're recognized ma'am. Kimberly Henderson: Good afternoon. My name is Kimberly Henderson. I'm president and CEO (Chief Executive Officer) of Neighborhood Housing Services of South Florida, an organization that has served this area for over 40 years. It's at 300 Northwest 12th Avenue, and I should also mention that I live in Little Havana as well. We are a lender, a developer, and a HUD -certified (Housing and Urban Development) housing counseling agency. We see about 1,500 people a year and we're only able to get about 230 of them to home ownership. And one of the things that we notice is that we pre -approve, as a lender, far more clients than actually go on to buy a home. And so when I inquire to the staff, why is that? Well, they can't find a house. Most people who are low and moderate income and those that you say, Mr. Reyes, you want to help, they can't get pre -approved much above 100, 000. And as a developer, I can tell you we can't build for under 200, 000. So we really have a major issue and crisis here, which everyone knows. What can tell you is that we're at this tipping point and this really interesting time both across the country and here in Miami where there is interest from the private sector, from philanthropy, somewhat from government as well. And when you look at cities that are winning at this game, they understand that you have to -- you have to have leadership that pulls you behind a plan, behind a framework and a way to go forward. And I think this plan is a good plan. It may not be a perfect one, but it is a good plan and a very good starting point for us to get behind. This will not be solved by just one sector. You need philanthropy, you need the private sector, you need government, you need non-profit, we all need to be in this together. I want to acknowledge Ms. Hallbrook, one of our clients, because of something that she said to us. She was able to buy a home through our program and she said, I feel secure now. I know that 1'll be able to afford to live here and to stay here and I won't get pushed around. And so it's really important that we give people this sense and this -- these opportunities. We'd be happy again as a developer, we're also a certified development financial institution, we would be very happy to share with you what our specific challenges are in moving the agenda forward of bringing more affordable housing units to Miami. Thank you. Chair Hardemon: Thank you. Gabriele Campana: Good afternoon, Chairman, Commissioners, and Mayor. My name is Gabriele Campana. The company I represent is New Habitat. We have a temporary office here in Bordeaux on Main Highway and I reside in Coral Gables. I come here as a concerned citizen that see the affordability housing as a tsunami that is coming to Miami, where we have a combination of real estate values that are going up, income that is stable or going down, the water that is going up, construction costs that are going up, and I don't see it clearly how we can solve it. I think the master plan is a very good guideline to get to it. I've been in many of the meetings, at least maybe 15. I feel it's very professionally done. All the research that was done, background was excellent. And the workshops, and I went into the developers' workshops, the real estate workshops, all kind of workshops, many people attended. And I think it's very valuable. And here we're receiving it in a concise way, a distillation of that information. So I'm all for it. And I want to put on the table one additional information as far as like my background. I am a social entrepreneur and I'm a ecological entrepreneur. And one solution that is mentioned in the roaster plan that I want to expand on is ADUs (Accessory Dwelling Unit). I don't know if you're familiar with ADUs, Accessory Dwelling Units. I bring it to the table because I see it as a very good solution, not the solution, but one of them. And look at Los Angeles, what they have done. They used to have 95 permits per year. They changed the law in 2017. It went up to 3,000. Last year, almost 6,000. It's 25 percent of the total residential construction in Los Angeles. And Los Angeles is the number two least affordable city after Miami. So they have some knowledge that I think we should look into it. Accessory dwelling units, as you know, they can be attached to the main house, City of Miami Page 45 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 detached, in the garage. So there are many different options. The good thing is that you can deploy them very fast. In Los Angeles, they give the permits in two weeks. And again, a number like 7,000 to me is a good potential solution. Of course, not at the cost of Los Angeles, that over there, those ADUs can cost like 350, 000, 250, 000. The solution is pre -crafting these products with $60,000 to $100,000. And ifyou look at the AARP (American Association of Retired Persons) that the Mayor had an interview for housing for seniors, they have the ADUs as one of the top solutions for all groups. So it's one that some part of the cities, they are allowed. We have 9,000 illegal ones probably, but it is good to make it legal and to make it part of the economy and it can complement what the big developers are doing, what the small developers are doing, and what the mom -and -pops can do as ADUs. So that's -- I put that to the table to expand on that one. Chair Hardemon: Thank you sir. Mr. Campana: Thank you. Chair Hardemon: You 're recognized ma 'am. Danielle Blake: Good morning, oh good afternoon, sorry. Danielle Blake with Miami Realtors. I want to tell you that one, our realtors are out right now rehabbing those homes. We have 40 out there, so thanks for putting that together. And 1 also want to talk to you about single family homes, excuse me, and condominiums. As of this morning in our MLS (Multiple Listing Service), at 150,000 and below, you have 18 single-family homes for sale and 17 of them are mobile or manufactured homes. Condominiums in the same price point, you have 182 right now on the market at 150,000 and below. Compare that to 150 to 300,000, you have 306 single family homes and you have 1,362 condominiums. Out of those 1,500 units on the condo, what is the issue? Why are they not being absorbed? And the issue is really your financing. You have FHA, so you could come in with that. There are 9 buildings that are FHA approved in all of Miami -Dade County. You know how many are FHA approved in the City of Miami? Zero, not one. That's a loan program where you can come with 3.5 percent down. What's your alternative? Fannie and Freddie. If you do a full review through Fannie and Freddie, you could come in with 3 to 5 percent down. That requires budget reserves from the association. Most of our associations are not budgeting 10 percent of their annual budget to a reserve account. That only leaves the option of limited or streamlined review. That means the buyer needs to come up with 25 percent in order to purchase that condominium. Our buyers do not have 25 percent to put down on those 1,500 units that are there today. This is the crisis that we have. We talk about affordability and density, we are building more multifamily. This is the problem that's going to continue. I got off a conference call before I came here about how to fix this. How can we address this with Fannie and Freddie, and I'll share it more with you later because I want to hit on just a couple more things on the single family. We did a container home project in South Miami, and to echo some of the small developers, the issues that we incurred were the sewer lateral. Our first float came back at $48,000, second one at $30, 000, and our third one at $20, 000. This is a 480 square foot home. Tiny house does not mean tiny prices. Some of the architect engineering jees are the same if we built a 3,000 square foot house as opposed to 480. So those are some of the things you want to look at with your infall program. Also landscaping. There was excessive landscaping in the area. It was 25,000 for the quote, which should have been 5,000 for an affordable project. So those are some of the things you want to keep an eye on. And the last thing I'll leave you with is what they call missing middle housing. How do you increase density through duplexes, triplexes, quadruplexes without disrupting a neighborhood? You put it on the outer perimeter. We have a speaker, from California who would like to come and speak about that, and also ADU's is part of that study as well. Accessory dwelling units. California prohibited local governments from prohibiting it. You can City of Miami Page 46 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 only regulate it. So what some of the cities did was pre -- do pre plans. You can pick model A, B, and C and they built in those costs into it making it more affordable. So I just want to share that information with you. Thankyou. ChairHardemon: Thankyou. Linda Smith: Good afternoon. My name is Linda Smith. Address is 15815 East Bunche Park Drive, Miami Gardens, Florida. I'm here representing PAC as a member of St. Philip Neri Catholic Church. I also spoke to you last week. Once again, as a disabled Vietnam veteran, I fought for the services that 1 now do, and now a proud owner, homeowner. However, many of my family members in Liberty City and beyond are constantly struggling to pay their rent. Over the years, many of them have been forced to move in with me. I look around at affordable housing in the city and I often ask, affordable who? One of the reasons that we support this plan is because it focuses on how much money people actually make who live in this city, which is much lower than other areas in South Florida. Itfbcuses on affordable housing for people that make 80 percent of that minimum income. These are also the kinds of people that need to sit on the corporation board and help make decisions about what kinds of projects should be built and where. People are going through or have been through the same struggle and know what the community needs. Again, what the community needs. I frequently use public transportation to get around the city, especially to get to the City and County offices downtown to get to services. One of the reasons we support this plan is because it's focused on developing housing near public transit options. In fact, 1 took buses, the Metro, and a car to get down here last week and again this morning because 1 believe in this so much. The Affordable Housing Master Plan will benefit me, my family, my community. Please vote yes today. Thank you. Andrew Lenahan: Good afternoon, Commissioners. My name is Andrew Lenahan. I'm here on behalf of Rebuilding Together in my stead as the Chairman of the Board, address 3628 Grand Avenue. I also stand before you as a licensed general contractor with First Florida, located at 31 Northwest 23rd Street in Wvnwood. I have spent the better part of my career building affordable housing around the city', around the county, and around the state. Within the city and county, we've built several thousand units. I'm very familiar with the troubles and challenges of programs that help fund adequate affordable housing in numbers that move the needle. We have extensive experience with the Florida Housing Finance Corporation and their low-income housing tax credit program, as well as neighborhood stabilization programs, home funding, sale funding, as well as complying with Section 3, transit -oriented development sites, very well versed in the challenges that face affordable housing community, developers, contractors, and owners, tenants. And I've also seen the challenges of keeping people in their homes. As I stand before you right now, we're proud to have 200 volunteers gathered at Elizabeth Virrick Park on behalf of Rebuilding Together, helping people stay in their homes. The simple common denominator is not enough supply. And the simple answer for getting that is a comprehensive plan that offers funding that can generate more supply. If we can get adequate funding, we can put people in their homes in safe environments and do so responsibly. We know how to get it done. We know how to develop and build at the most cost-effective prices, the fastest schedules, and deal with the daily ebb and flow of the difficulties in the system. We certainly appreciate that this is a difficult plan to come up with and find comprehensive approaches, but we absolutely support its cause and are looking to enable our residents cheaper, affordable, safer housing for many, many years to come. Thank you for your consideration. I urge you guys to vote yes. John Newcomer: Commissioners. My name is Dr. John Newcomer I'm the President and CEO of Thriving Minds South Florida. You may know us as South Florida Behavioral Health Network. We're the nonprofit managing entity funded by the Department of Children and Families, as well as federal, state, and other county City of Miami Page 47 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 sources, to provide over $90 million in funding for mental health and substance abuse services for the uninsured and underinsured in our region. There are approximately 300,000 folks in our region who have a serious mental illness or substance use disorder. Each year, we can help about 50,000 people. Of the population that we serve, almost 10 percent have homelessness as a complicating factor. We have treatments that work. The problem is that when you don't have stable housing, it's very difficult to get those treatments to finally lock in and succeed. And then we aren't able to help more individuals. So I'll be brief. You know, we're very grateful that the Commission is looking at this plan. It's critical that we come up with some solutions Jroadditional affordable housing. We're especially, of course, interested in housing solutions for our population, but we thank you for your support on this and your consideration. ChairHardemon: Thank you, sir. Mr. Newcomer: And my address is, our address is 6205 Northwest 19th Street. That's the location of the corporation. Caroline Donaldson: Good afternoon. My name is Caroline Donaldson. I live in Miami Lakes, but my heart really is in Coconut Grove. I grew up in Coconut Grove and continue to worship there at Macedonia Missionary Baptist Church, which is the oldest black Baptist church in Miami. Today, however, I'm going to be speaking on behalf of GRACE (Grove Rights and Community Equity). And GRACE is the Grove Rights and Community Equity, Inc., which is a coalition of the Coconut Grove churches in West Grove, civic groups, non-profit organizations, small business owners, and also the homeowners and tenants there. And certainly one of our primary goals is the -- is equitable economic development. However, we address this Commission today in an effort to show our support for the efforts that have been taken on by FIU in putting together an affordable housing master plan, which we feel is so needed by the City of Miami. But it is our hopes that we do not lose sight of some of those communities that are severely suffering from things like gentrification, which Coconut Grove has experienced now for a number of years, to the point that you really don't recognize what used to be the Grove, or specifically the West Grove. We also ask that in these efforts you also take into account, and it has not necessarily been clearly stated, which I think is part of the reason there's such a debate around affordable housing, but the ability to protect minorities, I'm speaking specifically, on Blacks, but protecting those minority homeowners that are at risk currently of eviction, displacement, and also resegregation from certain communities. I also ask that as we look at this comprehensive plan, we also take into account that there is some need for restoration of rights for some individuals that have already been wrongly displaced. There are people that have been moved from their communities and would like to get back in their communities, and this affordable housing in various formats might enable some of these individuals to do it. And I also really plead with the Commission, as we put together a comprehensive affordable plan, that we also take into account the preservation of our communities and the culture within those communities and the history. Let's not lose sight of the history that some of these communities bring to Miami. Thank you. Jim Fried: Hi, Jim Fried, 555 Northeast 34th Street. The city of Miami needs more affordable housing units. We all know that. As some of you might know, we have over 500 units of affordable housing at Northeast 54th Street in the Buena Vista area. These units have been in Miami -- these units have been occupied for more than 50 years, but your Planning Department is recommending the destruction of all of these units to be replaced by up to 3,000 market rate units. That means the rent is going to go from $1,250 a month to over $3,000 a month. Please direct your planning department to protect our inventory of affordable housing units. Please do not make our terrible situation worse. Thank you so much. City of Miami Page 48 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Chair Hardemon: You're recognized. Albert Milo: Good morning, Mr. Chair. I guess good afternoon now. Albert Milo, President of Related Urban offices in 444 Brickell Avenue. As someone who was born and raised in the city of Miami, this is obviously an important topic that continues to get discussed and unfortunately is not getting any better, right? Since I started doing affordable housing over 20 years ago, it's continuing to be a bigger, bigger, bigger problem. But on the plan itself I think the plan is not, every single idea in that plan is not an idea that is necessarily, going to work to its intended purpose, but at least it sets a blueprint for you as the Commission and the Administration to try to work towards. But I do want to focus on certain aspects of it that I think are important because 1 think it was Commissioner Diaz de la Portilla said, you know sometimes, and though the plan is ambitious and that's great, you also you know need to, in order to score a touchdown you need to score first downs a lot of times first, right? So you have to move those chains. And there are some things that are in that plan that think could help you guys do that. I couldn't agree more with you, Commissioner Carollo, and it might be surprising to this board to say, but main solution to this problem is small builders. You have empty lots in every single one of your districts throughout the city that the small builders are the ones that can tackle that problem. 2 units, 4 units, 8 units, 20 units. You know, that is a product that is that is simpler to build, less expensive to build, and therefore more -- can provide more affordability. However, however, you have a very, very unfriendly process for those builders. Your process, and they touched on it in the plan, your permitting process in the City of Miami is probably the most unfriendly process that there is. So, if it is difficult for us as larger builders, it is almost impossible for small builders to do what they have to do. You heard from a few of them today. It is impossible for them to wait because they are truing to invest their money and the biggest thing that investors need are entrepreneurs like those small developers that you heard talk before. They need certainty. Certainty of what? Certainty of the outcome. You start the process, you have no idea when you will finish the process. So they have a bid from one of their general contractors, they think they're going to build a house for $80, 000, $90,000. It takes them a year and change to build a permit. Construction cost goes up. They have the challenges of infrastructure. Their deal can't get built anymore. They have no way to make it up. Why? They have small projects that have no economy of scale. Can we absorb that sometimes? Sometimes. Why? Because we have a larger project to be able to take the hits. Doesn't mean that the hits don't hurt, doesn't mean that the hits don't hurt affordability. They are just as important. So one of the lowest lying fruit that this Commission can take is let's codify. Let's put an ordinance in place. Let's get permits that are truly affordable and developers that are going to sign affordable housing covenants of all sizes to say we will give you a permit in this amount of time. You know, let's start construction when they have financing or we bring other financing. Because yes, ultimately it's about production. You need to produce units. You won't solve the problem without production. You need to preserve units, and that's a cheaper approach. You need to help homeowners stay in homes. That's one of the things in the plan. But you need to produce units. You can't produce units if you can't start, and you can't start without permits. Chair Hardemon: Thank you, sir. Mr. Milo: I mean, it is the most, the biggest impediment that we have for production of affordable housing. Separate from leverage, separate from the loophole, those are all things that you'll have time and the devil's in the details to chime into, but you've got to get out of the gate, and you can't get out of the gate without a permit. Chair Hardemon: Commissioner Reyes has the floor. City of Miami Page 49 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Reyes: Milo, I understand clearly what you are saying.l know that the permitting process is a mess. I have encountered that with constituents that have come to my office because not only building, not only building, establishing a business. Establishing a business, it takes, it has taken over a year for a restaurant to open. And most of the people that are processing those, and I don't want to, I don't know if it is the system, if it is the culture, I don't know what it is. But when we established our e- permitting, it was supposed to expedite every type of permit. And I have seen that the feedback that I have received, it is working a little better, but not as it should be working. And another thing that 1 would like to ask Mr. Mensah, don't go away, man, Okay, you're sneaking out, right? You were going to eat? Don't you think that we're hungry also? Okay, let me ask you something. A long time ago I asked you for an inventory of all the land that we have available, all the empty lots that the City owns throughout the city of Miami. I got, there's plenty of them and it is true. But how do we engage or try to inform developers, small and big, that that land is available and we are willing to do a partnership with them and provide all the incentives that we can so they start building there? George Mensah: Commissioner, we've done -- typically when we have the land, typically we do RFPs. And we've done probably about 5 RFPs in the last 10 years about all the lots that we have. And the issue is that whenever you do the lot, for example, if somebody comes to you for a lot, they have to show that, one, they can build it, two, that they want the building to be affordable to somebody in the community who makes, we use 80 percent of median income. And I think the issue that we've been having is that when the applications come in, first of all, there are some of the lands that nobody applies for. We have a lot of them like that. And there are some that when they apply, they are not able to show that when they build it, somebody in the community can afford it. And that's been our issue. Commissioner Reyes: Are you offering the land as a partnership with the City of Miami at no cost, or you are charging for the land? Mr. Mensah: No, it's zero. We don't charge for the land. Commissioner Reyes: You're not charging for the land. Okay, well, we have to make a better effort. Mr. Mensah: Yes, we have to. Commissioner Reyes: And, Mr. City Manager, this complaint that Mr. Milo was expressing about permitting, it's not only at the -- I mean, at the larger, I mean, it's not only faced by the big builders, it is faced by small builders. Even people that are going to build a house, a single family home, they are get -- and they are bottlenecks that some of them we cannot control within this term. But planning and zoning, we can control. And that's a bottleneck right there, and I had that complaint many, many, many, many times. And we have to do something. We have to change the culture. That the culture is, we are here to serve. We are here to promote development. We are here to promote housing. And we cannot do it without the help of those departments that are responsible. And they could expedite the process, or they could drag their feet and it would be unbearable for some of'those small businesses, particularly business people that rent a place and they spend -- I know a guy that in order to opera a restaurant in downtown Miami, that person has lost close to $100,000 in rent because he hasn't been able to get the permits. And it is, I mean, not only that, they get some -- every time that they bring the permits, they send them with some request, I mean, you have to do this, it faxes, he sends it back, and then he receives it back. My God, see? So we have to promote business development and also construction. Thank you, that was a good point. City of Miami Page 50 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mr. Milo: Can I just chime in one more thing, Commissioner, please, on just hack on this permitting issue is that the E-Permit is helping and it is helping because it allows you to use technology and do simultaneous reviews, right? So if you need 10 departments to review your permit and you submit them electronically and all 10 can look at them at the same time, that inherently helps. However, it is not the end all, be all. What you need to do, and there was a time, I guess, when I started doing this, you know, there used to be a system where there was, and I think there might be something in the books to truly help expedite affordable housing projects. That doesn't really happen. So unless -- Commissioner Reyes: Should 1 flag them? Just flag the affordable housing? Is that legal? Mr. Milo: The flag -- there used to be like a little green paper or something on part of your plans, but I think what you really need to do is you need to codify the issue. You need to have an ordinance that says, and if that requires dedicated staff from the departments to review the permits in a joint setting, what does that mean? Yeah, you can submit them electronically, but if have 10 reviewers, then let's bring the 10 reviewers with the architect and engineering team and the development team. Let's sit at the table. Let's talk about the comments. Let's give a feedback time for the developers to come back. Let's bring those plans. Let's sit around here. Everyone look at the plans and let's walk out with approvals. You know, it has to be a true joint effort. Without that, you can have great plans. Commissioner Reyes: Mr. Manager, are you taking notes? Joe Napoli (Deputy City Manager): Yes, Commissioner, I am taking notes. Commissioner Reyes: Okay. Chair Hardemon: You are recognized. Commissioner Carollo: What for? So he can take it in Cooper City with him? Chair Hardemon: You are recognized, sir. Francois Alexandre: Thank you. Thank you, Mr. Chair. Thank you to the rest of the commission. My name is Francois Alexandre. I live at 120 Northeast 78th Street. There is a statement that says it is better late than never. So, I would highly urge, given the fact that I have not really read the entire master plan that has been produced by FIU, but just coming here and I was able to listen to some of the presenters and the bullet points they presented. So I highly urge you guys to adopt that plan. And I like the fact that when this presenter spoke, it is a master, it is a housing master plan, but first and foremost it's also an economic development plan that we sorely need. I know that you all have heard that our community is the fastest gentrified community, that's Little Haiti, (FOREIGN LANGUAGE) and prior to Magic City, prior to the SAP (Special Area Plan) approval of Magic City, it was and it still is the fastest gentrification community. So with the leadership of Keon Hardemon, Chair, Commissioner Keon Hardemon, you also created a Little Haiti Revitalization Trust to help mitigate the process of affordable housing and economic development plan. At this point in time, there is no money in that trust. So I also would like to have a motion that you guys, in the process with the bond money or whatever else money that you guys are going to be allocating to affordable housing economic development plan, that the Haiti Revitalization Trust also gets a percentage. Thank you so much. Chair Hardemon: Thank you, sir. Hello. City of Miami Page 51 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Leonie Hermantin: Good afternoon. My name is Leonie Hermantin. Pm with the Haitian Neighborhood Center, Sant La, as well as Concerned Leaders of Little Haiti. As Francois said, Little Haiti, first of all, let me thank you for this process. It's been fascinating to hear it from the perspective of the community, the challenges that we face as a community in terms of housing, as well as the challenges that developers face. It's been a real interesting learning experience just sitting here. But what I'd like to say is that we support the FIUs -- the housing plan. We also support the housing corporation and we would like to echo some of the concerns made that this corporation be something that is depoliticized and truly inclusive of all the communities represented so that you all can -- will know that you have left a model for hardworking people, people struggling to pay housing. You will be creating a national model, and that will be a source of for all of us to know that the City of Miami can be looked at as one of the cities that has created a model that supports the rights of hardworking people to live in dignity. Thank you. Chair Hardemon: Thank you very, much. Seeing no other persons here for public comment, I want to close the public comment period at this time. Vice Chairman, I know you had a motion that was on the floor that was seconded. Can you repeat the motion so that everyone understands exactly what the motion is before we vote or have any more discussion? Vice Chair Russell: Thank you very much, Mr. Chairman, and thank you for everyone who spoke. 1 don't believe 1 heard a single voice out of the dozens who spoke that said let's hit the brakes or keep, you know, trying to figure this out without taking positive action today. So my hope is that this motion gets support to send a message that we are on the track, we are putting this train on the tracks, moving it forward, and we will eliminate the parts that are either illegal or unfeasible as we go. We obviously don't want to accept that. But to accept the plan and give direction, the motion is to accept the plan and give direction to our Administration to come back with a timeline and action plan for the legal and feasible parts of this plan to be implemented as soon as possible. Commissioner Reyes: Mr. Chair? I mean, I cannot support to accept the whole plan. I mean, because I think that before you accept the whole plan we have to determine if it is feasible or not, and analyze each part of the plan, and all the -- the components of the plan, like the financial department or whatever it is. What I could have said and I would modem that motion, that we accept the first phase, the data on the first phase, and that no further action could be taken unless it comes back to the Commission, without Commission approval. Chair Hardemon: So, if I may, as I always understood the motion, it was to accept the data. Vice Chair Russell: Yes. Chair Hardemon: As far as this was necessary, and the distinction I think is prominent. And so to accept that data, one. And then two, have Administration, as you put it, to look at the plan that was presented and to come up with what they believe is feasible or not feasible. Basically bring it back to the commission for us for further consideration because it's going to need to be implemented. We need to understand how much time is going to be needed for it to be implemented, and what should be implemented, and then this board makes a decision about what we do moving forward. You're recognized. Commissioner Diaz de la Portilla: I'mstill hearing two different things. He moved to accept the plan. City of Miami Page 52 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Chair Hardemon: That's why I'm trying to say to him that 1 agree about the data -- Commissioner Diaz de la Portilla: I cannot support what he's -- Chair Hardemon: As the seconder -- Commissioner Reyes: The data. Chair Hardemon: I'm saying that if you can aniend it, so you include the data. Vice Chair Russell: Yes. Thank you, Mr. Chairman, if I could. I'm very open to amendments because 1 want us to have a consensus moving forward with a positive action and message today of some sort. Commissioner Reyes: Okay. Vice Chair Russell: So, if we're not ready to move forward on the entire plan, and I certainly did not say let's move forward on the entire plan, it's to accept the plan but weed out the parts that are unfeasible or illegal. If there's policy differences that we don't like about the plan, that's something we should definitely get on the table as soon as possible. Commissioner Reyes: I --1 don't know if the word plan kind of scares me, because that could be interpreted as the whole thing. I want to analyze this very, very, very deep and see what is feasible, what is not feasible, and let's accept the data. Vice Chair Russell: Accept the data. Commissioner Reyes: Accept the data and any further action has to come to the City Commission for approval. And we get -- I mean we direct the Administration to establish workshops that we can -- each implementation of the plan could be discussed and it could be decided by us if it is feasible or not and with the help of the professionals. Commissioner Diaz de la Portilla: That -- may I ask Commissioner Reyes a question? That would include the AMI district specific data? Commissioner Reyes: Well, the -- Commissioner Diaz de la Portilla: That's in there. Commissioner Reyes: The AMI is in the data. We are accepting their findings about the City AMI. Commissioner Diaz de la Portilla: There are also findings by district AMI I think Commissioner Carollo -- Commissioner Reyes: Yes, and he has a valid question, but all those data, I mean none of them it is higher than the real -- I mean what the Census Bureau claims that is the city of Miami, which is 35,000. They're claiming that there is between 21, 22, and 31. I mean, it is not higher. What my concern is that if we keep on building and offering the supposedly affordable housing using, I will say, using the data that provides the County as the AMI for the whole county, which is not the real, I mean, we are not doing the work that we want to do. You see and I will accept only the data, and the data is, it says, for example, Flagami, what is the AMI of Flagami? Between 21,000 and 31,000. It is. It is very close, you see. And the areas as Liberty City is not City of Miami Page 53 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 even 22,000. I had -- I presented once a report here that says that it's around 18,000, you see, the AMI for -- and it moved, but it is not as high as the County. What I wanted to do is stop anybody from using county when we are doing -- I mean, we are doing affordable housing in the city of Miami. Commissioner Carollo: The issue, if I may, Chairman, is not with the census data. The census data is what it is. But as I see it, the issue is with how the data has been calculated and used. They made a statement, but I haven't seen anything in numbers, in writing, that backs what they're saying. I want to see how they came to these numbers, because to me, based on everything that we've seen, it's impossible that in your district, Commissioner Hardemon, in Diaz de la Portilla's District, in my district, we have the same medium household income number for renters. Furthermore, it never was answered how there is such a discrepancy from the 20,584 units that they're talking about that are 50 years or older in your district Commissioner Hardemon to the one that comes out by using their same 60.6 percent numbers that is 25,164 in your district. You have close to 5,000 difference there which brings it you know nearer to 20 percent, actually probably around 18 plus, 19 percent difference. And that's in the data. Beyond that, the numbers that we're given here, I mean this is not a monopoly game that you can throw hundreds of millions this way, a couple of billion the other way. The numbers don't add up to what they're giving us. How can the public be told that in 10 years we're going to come up with 32,000 new units. And in their own numbers they've given us, even without getting into a lot of the exaggerations, they're off with a gap of somewhere between $3 and $4 billion, depending on, you know, what it is. And that's not even including some of the other exaggerated numbers. So 1 go back to the City Attorney and ask her, Madam City Attorney, can you use these stats to validate the bond without us correcting any mistakes that there might be in the data that they have presented to us and the numbers that they presented to us. Victoria Mendez (City Attorney): At this time, what we used as the basis as one of the evidence for the bond validation was the needs assessment and technical compendium. That included lots of raw data. There is a discrepancy that you pointed out. Commissioner Carollo: There's several discrepancies, they're serious. Ms. Mendez: Based on how FIU extrapolated that data or calculated that data. So, does FIU at this time have an answer as to why that was potentially a scrivener's error or do you know? Commissioner Reyes: Mr. Chair, from what -- I think that Commissioner Carollo here wants to take a look at the methodology that they used for the calculation. Do you have the methodology that will satisfy, I mean, will show how you reach those figures? If you have the methodology, let us have it. Mr. Murray: Yeah, I mean, the U.S. Census data is pretty straightforward, pretty easy to navigate. It's the same data, like I said, not only would we use it, but any other local government, bond companies, lenders, developers, marketing people, we all use the same data. It's not rocket science, to tell you the truth. The only difference here is that in the case of the city, and it's really important for you and certainly for all of us, to understand what -- how the neighborhoods and districts break out relative to the city, at large and district to district. But that's all U.S. Census data and it's provided at a number of different levels, citywide, census tract and block group, and that's essentially what the data. Commissioner Carollo: Then you should not have any problem then, sir, in providing us in writing with how you came with the U.S. Census numbers to this data that you City of Miami Page 54 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 provided to us. Give me your working numbers and how you came to that so that we see it. Because this is beyond the $110, 000 that we pay you. This has to do that if we're using erroneous data to validate these bonds, the City of Miami's got two major strikes against it. We get a third strike with the Securities and Exchange Commission, you know what? Game's over. Three strikes and you're out. So. Chair Hardemon: If I may? Mr. Murray: Well, we -- Chair Hardemon: Ultimately, before you answer the question, we understand where you get the numbers from. And so what the Commissioner pointed out was something that is not necessarily nefarious, it is not necessarily incorrect. It may be what it is, but what we're requesting is for you to at least give us how you arrived at that. If, in fact, it's a document, you can direct us to the website and it says this is the information, we plugged it in, it is correct as per the census data. Because I will tell you, in my neighborhood, they avoid census people. I think that's something that is typical of a lot of us. In neighborhoods that are immigrant heavy, they avoid census people. And so it wouldn't surprise me if the information or the area median income in my neighborhood is not reflective of what it actually is. It's just like talking about the unemployment rate. In our communities, it is typically not reflective of what it actually is. And so I just want you to do that. And the reason being is simply because the information was relied upon by our City Attorney's Office through our bond validation. I want to believe that our bond validation, because it went through much scrutiny, is something that we can stand on so that we can go out and by to do good for the city of Miami. It is by no means me, as an individual commissioner here, do I want to invalidate our bond or cause doubt as to our bond issuance. This is probably one of the best times in the City of Miami's bond rating history that we have to actually do this. So it is imperative that we just address the questions that the Commissioner has and then we can come back and finish this process. You can respond. I want to give you an opportunity to respond if you have a response. Mr. Murray: Well U.S. Census data, just to be clear here, is standard baseline data that everybody uses. And you wouldn't prepare a bond, you wouldn't prepare to do anything, including a market study in terms of its release, without using Census data. It's baseline data that everybody can agree upon. It's when you start mixing other data with that, that's when you can create some really strange kind of calculation. But it's, remember this too, the U.S. Census estimates -- Chair Hardemon: Before you continue, did you do that? Did you mix other numbers with the U.S. Census data? Mr. Murray, • Never, never, never. Chair Hardemon: Commissioner, you're recognized. Commissioner Reyes: Chair. You see, I know you can have many questions about how the census, the federal government, developed this data. You can be arguing here until tomorrow about if the data is correct or not correct because you claim, I mean you know somebody that is making 13,000 and you claim it. It is median. It's median. There's half of them is making more and half is making less. It's what it is. And it is the same measurement that is used by government agencies, including HUD (Housing and Urban Development), to assign funds to the area. They don't use any other measurements. The Census Bureau -- I mean when HUD is going to assign the funds for of fordable housing to Dade County, what they look at is the median income from the Census Bureau. That is what is used by every governmental agency. Now, Madam City Attorney, the question is very valid, what Commissioner Carollo said, but since City of Miami Page 55 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 there is no other data, and that data is used by even the federal government, there is no problem.1 mean, there can be no problem that we are using data that it is not -- that we are creating data in order to validate, because as long as you have the -- I mean, proof that it is the Census Bureau, there is no other type of data unless you go household by household and you create the data. Commissioner Carollo: I'm not asking for that, Commissioner. And you are, I think, correct, even though I understood what Commissioner Hardemon was saying, and we all did, that the census data, as I said before, is the census data. Commissioner Reyes: It is. That's the only thing there is. Commissioner Carollo: I'm not questioning that. What I am questioning, though, that has not been presented to us, I want to see 2 plus 2 equals 4, how you came to that. I'm questioning the calculations and how they use those calculations to come to these same exact figures in three of our districts based on the census data. And he's danced around the question, I don't know how many times already, I want to see numbers. I want to see their work on the raw data from the census numbers. Commissioner Reyes: Do you have copies of the -- I mean the publications, the federal government publications, which states that this are the median income fbr those areas? Mr. Murray: Yes. Commissioner Reyes: Well, bring it over. That's it. Mr. Murray: Yeah let me, let me be clear. There were two reports as part of the master plan, as was referenced earlier on. There was the housing needs assessment technical compendium, which we shared with all of you, well, most of you, early on. This was the hard data from the census. We had those assessments and we had all the data that we brought to your offices, shared it with your staffs. Some of your staffs actually did follow up with us and said, can we get a further elaboration, a clarification of this data. So this was an ongoing process, not only that, but obviously we sat down with the housing and community development staff and went through all the data time and time again. So it's -- Commissioner Diaz de la Portilla: How old is this data? How old is it? Mr. Murray: The data? Commissioner Diaz de la Portilla: Yeah. Mr. Murray: We used the most current US Census data at the time, which was 2017. Ms. Mendez: 2013 to 2017, I believe. Commissioner Reyes: I have another question -- Commissioner Diaz de la Portilla: Hold on, hold on, hold on. Commissioner Reyes: I have another question, and it's just a simple question, which, and excuse my ignorance. Mr. Mensah, when we ask for -- when we askforfunds that are available for affordable housing, we have to include information and analysis of the need. And this is why I said that let's accept the data, because this proves that there is a felt need for funds to try to solve the -- we're not going to solve it, but try to ease the problem that we have. And we have to send a report based on an analysis, City of Miami Page 56 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 you see. And the data that is going to be used is the census data. But nevertheless, having said that, if everybody wants to see your methodology, I think that it is fair, bring the methodology in and then everybody will be happy. Commissioner Carollo: This is what I'm asking for. Commissioner Diaz de la Portilla: Well, yeah, and I agree with Commissioner Carollo on this and with you too, Commissioner Reyes, but she said -- the City Attorney made a -- I heard you say the data is from 2013 to 2017. Ms. Mendez: Right, it's 2013 to 2017 is the 5-year American Community Survey estimate. Commissioner Diaz de la Portilla: Right, and 1 don't know, I'm not in your world, in your field, but is that data current enough? The way, the rapidly changing nature of the housing market in Miami? Mr. Murray: Well, that was the most current census data. We now have 2018, that came out in December, as you know. Commissioner Diaz de la Portilla: Right, that's why I'm asking. Mr. Murray: That wasn't included in this plan. Commissioner Diaz de la Portilla: It was not included in this plan. Mr. Murray: Not included in this plan, because obviously we started over a year ago. Commissioner Diaz de la Portilla: Did you cross-reference anything with the Florida Housing Finance Corporation? They have a study group. They did a great study that I've read. Mr. Murray: Yeah, yeah. And that's where I think the value added really comes in because when we work with other municipalities, other counties around the state, the question always comes up, well, the census, well, number one, it's based on estimates. We all agree with that, we know that, but also a dynamic market like Miami or South Florida, where if you are talking 2017 or 2018 data, and we have shown you the charts and the tables how quickly the market is appreciating, that's not that data -- Commissioner Diaz de la Portilla: Well, that is my point, right. Mr. Murray, • Yeah some of that data, we have real-time data that we have provided you, but we don't mix and match. We layer. Here's' the baseline data, which is the census, and this might be data that comes from POSTAR or some other, yeah. Commissioner Diaz de la Portilla: Right, but you would agree that the 2018 data is critical because of the tremendous appreciation that we've seen in property values. I mean, just District 1 alone, I think I read 20, 25 percent over the course of 3 years. So it is a rapidly changing market. Mr. Murray: Well, on an annual basis. Commissioner Diaz de la Portilla: Let me ask, instead of making a statement, let me ask the question. Do you think it makes a difference to have 20 -- have you used 2018 data versus 2017 data in drawing conclusions? City of Miami Page 57 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Mr. Murray: Yeah. There's not, on an annual basis there's not, the census will not pick up on a market like Miami. We obviously want to show year to year, that's why we do the trend analysis. Commissioner Diaz de la Portilla: So then the logical follow-up would be what picks up on that changing market. If the census data does not pick up on it, then the data you have is not an accurate measure of the market because it doesn't pick up on those rapidly changing dynamics, right? Mr. Murray: Well -- Commissioner Diaz de la Portilla:: So -- hold on, let me finish. So what measures do you use to get to that -- to draw proper conclusions from available data? Mr. Murray: Yeah, well, it's a really good question. What the census does for us, it's a census, as a population and housing. We're only going to get income from the census. There's no market data out there on income -- Commissioner Diaz de la Portilla: Of course. Mr. Murray:: -- and occupations, things like that. What gets tricky, and that's what we call the demand side of the equation, the supply side, we know that the census data does not reflect market dynamics. We still have to use it because we don't want to mix and match. So what we do is we base our affordability calculations based upon the income within the census and what the census is showing as median rents and median home values. But in order to make everyone understand, we also layer other input into that in terms of whether it be the Miami Realtors Association data, you're probably familiar with Reinhold Wolf, there's a lot of market data we introduce just so we have another perspective on that. Commissioner Diaz de la Portilla: And that's included here? Mr. Murray: Yes. Yes. Yeah. Commissioner Reyes: Listen. We're going back and forth on this on data. I mean, there is no other data. But now -- Commissioner Diaz de la Portilla: Well, there's always other data, Commissioner. Commissioner Reyes: That's right. You have, I mean, listen, I used to be a consultant. Commissioner Diaz de la Portilla: You're an economist and you know there's other data. Commissioner Reyes: No, no, and I used to use the old sources of data, and I know unless you go out there and you go household by household by household, you are not going to have any other type of data. Now, I think that, and I stand by my motion, I mean my amendment to the motion, that we accept the data and also providing and subject to you bringing all the paperwork, all your methodology and all the backup where you got it, but we have to get this thing moving, you see. And also, I want -- also, I want to direct the motion will include -- my amendment will include, to direct the Administration into analyzing the feasibility of every single recommendation. The feasibility to be discussed by this body and by experts on the feasibility of adopting any of the recommendations. We are not adopting any of the recommendations. The only thing that we are adopting, it is a true, finding that there is a need for housing and that our neighborhoods and our population is poor, is below the median income not only of a metropolitan Dade County, of the rest of the nation, I would say it could City of Miami Page 58 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 he among one of the lowest, one of the lowest in the nation. That's all. That's all. And there is a need for housing. Now, you have made the recommendations that we do this, we do whatever. Those recommendations should be analyzed by our Administration. And even if I will suggest, or I think that I would require that we do workshops in each one of the recommendations and bring outside people from the industry, experts in the industry in finance, in construction, and everything. You see, experts from the industry to come and assist you and us in the feasibility, on the feasibility of each one of the recommendations. And also we like to have an analysis of you said that this finance housing authority, whatever it is, that it was used in Atlanta or some other places. Well, let's bring them and let's analyze the pro and the con and all the literature that has been written about that particular agency. And that is my, I mean, it is my amendment to the motion that was presented. Vice Chair Russell: Mr. Chairman? Chair Hardemon: Mr. Vice Chairman. Vice Chair Russell: The mover accepts the amendment. Ready to vote when you are. Chair Hardemon: So does the seconder. Any further discussion? Commissioner Carollo: Yes. Chair Hardemon: You're recognized. Commissioner Carollo: For the last time, I'm not asking for a door-to-door study or anything other than saying the following. The census data is the census data. I certainly understand that. My concern here is on how that was used and calculated. I have asked numerous times for that information here. I don't have it. They keep telling me that they use the census data, but I don't have the simple information how they got to that in three districts that we had the same medium household income for renters of 22,760, nor how they came to the number of 20,584 instead of 25,164 units that are over 50 years old in District 5. The numbers in mind were minimal in difference, so I'm not even going to bring them up. Now, what I want to see is the raw number, how they came to that. I want to make sure that I don't have an intern that partied too much after they unfortunately beat UM (University of Miami) in the football game, and they weren't being careful in the numbers they were inputting or looking at. Or that, you know, maybe you had an intern that, you know, felt overly stressed that week, and they overdid their medical marijuana prescription. Commissioner Reyes: They were trying it, right? Commissioner Carollo: Didn't get the numbers right. Commissioner Reyes: Was testing it. Commissioner Carollo: So I simply want to see, based on the census data, how they came to those exact numbers in three districts that while we have similarities, we have major differences, economic differences, and at the same time how they came to such a wide difference in numbers in District 5 on how many buildings are in 50 years or older, in stock. So that is something that is simple. And I think that we have an obligation that that would be settled, that we have that information in black and white, clearly. Commissioner Reyes: My amendment also takes -- directs you guys to bring all the raw data, I mean to bring all the data and your methodology for us to analyze. If we have, I personally have any doubt, I will -- can I call back the vote? I mean, can I call City of Miami Page 59 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 hack the issue and revisit it? 1 will, l promise that 1 will call back and revisit it myself. So, hut what I'm saying is 1-- include that please in my amendment. Ms. Mendez: And if I may, because, you know, pictures sometimes are worth a thousand words and just a highlighted -- so Commissioner Carollo is specifically showing two sentences in your District 3 analysis and your District 5 analysis that are exactly the same. Commissioner Carollo: In District 1. Commissioner Reyes: In District 1. And the similarity between -- Ms. Mendez: But two -- right, so it's in three places, it's in three places, but the ones that, District 3 and District 5 have two sentences that are exactly the same. District 1 has one sentence that's exactly the same. So, and I highlighted them for you here if you want to look at them. And what he is trying to ask is how can three districts or three things have the same exact medium income, and how can two districts for the same thing have the same amount of units? Commissioner Reyes: Madam City Attorney, I want to also add to that, add to that, the methodology used to determine the need of the number of housing that is needed, and then all the analysis that was made on the status, housing status in each district. That's it. Ms. Mendez: Yes, and I will have to re -listen to the minutes because since he used to be a professor of statistics and economics, he was able to articulate that better than we ever would on a document. But that's the -- we understand, everybody' understands, it's the same raw data. We just want to know the methodology and how you arrived at your calculations. So that's what he's asking because they're exactly the same. Chair Hardemon: And I'm going to recognize you sir. Mr. Murray: And we can do that. The technical compendium itself has all the data and a lot of the methodology laid out, but if there's points of clarification that have been raised here today, we're going to go back and look at that. We'll provide you with the raw data. We'll provide you with the Excel files if need be. I know some of your staff have asked for that in the past, especially Commissioner Reyes's staff. (COMMENTS MADE OFF THE RECORD) Mr. Murray: Yeah. We'd be glad to meet with any of you. We already have met with some ofyou. I know, Commissioner, you're new. but we have met and we'll be glad to meet with all ofyou individually again. But we will get -- Commissioner Diaz de la Portilla: Have you requested a meeting from my office? Mr. Murray. We met with Commissioner Gort. Commissioner Diaz de la Portilla: Excuse me? Mr. Murray: Your predecessor, yeah. Commissioner Diaz de la Portilla: Yeah, but I've been here two and a half months, sir. Mr. Murray: Yeah. City of Miami Page 60 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Diaz de la Portilla: I mean, I was here November 19th. Mr. Murray: Yeah, but the process -- Commissioner Diaz de la Portilla: Well, hold on. Don't you think that, I mean, it's February, 1st tomorrow. Don't you think that you should meet with me? Mr. Murray: Well, we'd be glad to meet with you. Commissioner Diaz de la Portilla: I think it's a good idea and it's just my gut. Mr. Murray: We'd love to be able to sit down with you like we have with other commissioners, go over the data. 1 know we've met with Commissioner Hardemon's staff and Commissioner Russell's and Commissioner Reyes. So, yeah, we'd be glad to do that. But we will get this larger communication back to you that you've been questioning relative to both the age of the housing and the rental incomes and the methodology that you requested. A lot of it, like I said, is in the technical compendium. It is very technical, but it appears that we need to do something maybe on a one pager, two pager that clarifies some of these points and the exact source of the data and methodology. We'll do that. Commissioner Carollo: Commissioner Hardemon. Commissioner Reyes, 1 want to see how your motion is dealing with two points. One, all these billions of dollars that are unfunded, or is pie in the sky, including the 200 to 800 million of the proposed empty home vacancy tax that they themselves have acknowledged now that they know it's illegal, but nevertheless they put it in here. But does that, in your opinion, is that part of the data that you're approving? Commissioner Reyes: No, that's not part of the data. The data is at base of the need. The need is the one. And also, I want to know, I want to know the, the methodology that you used to calculate or to estimate that too. I want to know what, I mean, anything that you took in consideration, how you reach those numbers. And you know, I know that you have to go through a process, the process that you went through. I want all your working papers and you can, you can, I mean, we might ask you to, either you do it individually or just come here, and you will, I mean, explain all your - - how do you reach those conclusions. And that's it. Commissioner Carollo: Last but not least. Commissioner Diaz de la Portilla: Next to last. I have one quick comment. Commissioner Carollo: Well from me. Commissioner Diaz de la Portilla: Okay. Commissioner Carollo: The only thing that's definitely real here is our $85 million. That seems to be the grab bag here. That certainly is not part of the data or anything that we're doing. Commissioner Reyes: No, no, no. You know, what we have to determine, and what is important here, what we have to determine is how we're going to use those $85 million. You see, that is what it's really -- it's determining. Commissioner Diaz de la Portilla: Well, I mean, there's a reality here, right? Commissioner Reyes: There's a reality. City of Miami Page 61 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Commissioner Diaz de la Portilla: There's a reality here that the only thing that's real, as Mr. Carollo said, is not the $300 or $500 million in philanthropic contributions that you haven't identified. You didn't identify a single company that's going to give us that. The only thing that's real here is this Commission, this Commission will give up control of $85 million the voters in the city of Miami gave the commissioners the right to allocate as they see fit because they are representative of the people of the city of Miami. So it is basically taking 85 million and putting it in a different bank account with different shareholders that were not the people that the city of Miami voters voted for when they voted for the Miami Forever Bond. They voted for this Commission, the commission of the duly elected representatives in each district to allocate those $85 million. And that's the reality here. So this is a grab or the potential shift of dollars away from this body, the duly elected body to a non- elected entity, to you know, Florida House of Finance Corporations, will be Miami House of Finance Corporation, appointed by us and by the Mayor, but still taken away from the direct representatives of the people of the city of Miami. And I think at the end of the, if you put aside all the conversations of back and forth, that's really the biggest thing that's happening here. How do we allocate those $85 million? As this study, that's a reality, right? I mean, let's not beat around the bush here. But on top of that, Commissioner, if I may, Mr. Chairman, if -- I'll finish up quickly. I'm not one to speak for a long time, don't worry. But I do have to make my point when I want to make it. It's very brief. So 1 think that's going to be the real big debate here, and obviously the governance, if we do decide to give up that responsibility, that the governance, who's going to govern, what's going to make up the governance of that new entity is going to be a significant debate on this dais, 1 would venture to say. So I appreciate what you've done, I appreciate the study. 1 know it's hard work, it's not easy. I know we're not an easy political body to deal with, so I appreciate your patience with us today, and we're grateful for your work. But you have to understand that we have a very deep and serious responsibility to the people who elect us to get this right and to address it for future generations. So you have to understand our due diligence and that we're not rushing things here. And I agree with Commissioner Reyes 's motion. I'm going to vote for your motion to move it forward. I think Commissioner Russell is correct. We need to move it forward. But let's not be too hasty. Let's get it right. And let's make sure that we keep true to our commitment to the people who elect us by spending those 85 million, and more, and that you come to us eventually down the line with an explanation of how you get from 85 million to 6 billion, because I'm very curious in finding out if those are real numbers or just pie in the sky thinking. Okay, so that's my only comment. Thank you. Chair Hardemon: I want to remind us that when this bond initiative passed, three commissioners voted for it, two voted against it, and one of the things that two of the commissioners, one sitting to your left and one to your right, that we were adamant about was that we maintain the ability to allocate those dollars how we saw best fit, especially as related to how we tackle issues of affordability in our neighborhoods, in our districts. And so this is one of those things that is germane to the passing of this piece of legislation that led to the passing of the referendum. And so, with that being said, you should know that we all take it very seriously and we know and we understand why certain entities were involved and showed interest once that money was set up. And so we're all very cautious of that and how we move forward to address affordability in our communities. Commissioner Reyes: And I will add, if I may, that the decision, how we're going to use that $85 million, I mean, it's ours. We are the ones that are going to decide. By voting this way, we're not touching it, and that doesn't matter. We decide what projects are going to be done, and how we're going to do it, and how we're going to use the money. City of Miami Page 62 Printed on 09/10/2024 City Commission Meeting Minutes January 31, 2020 Chair Hardemon: Seeing no further discussion, all in favor of the motion say aye. The Commission (Collectively): Aye. Chair Hardemon: None against. Motion carries. This meeting is adjourned. Commissioner Reyes: Thank you. Vice Chair Russell: Thank you everyone. ADJOURNMENT The meeting adjourned at 2:32 p.m. END OF SPECIAL MEETING City of Miami Page 63 Printed on 09/10/2024