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HomeMy WebLinkAboutExhibit C SUBCity of Miami Miami For Everyone Program Guidelines THIS FILE IS A SUBSTITUTION. THE ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. Background: On April 13th 2023, the Miami City Commission approved Resolution No. R-23-0178 establishing the Miami For Everyone ("MFE") program. The following Miami For Everyone guidelines were adopted in said Resolution R-23-0178, to ensure the accountability and utilization of the program funds meets the intent of the MFE Program. Funding for the MFE Program will be allocated by the City. Commission. Purpose: The purpose of the Miami For Everyone program is to assist communities facing the long-term complications resulting from declared emergencies and to address the specific needs of the most vulnerable residents and businesses, through a strategy of focusing the provision of support towards priority areas of need that will further stabilize economic conditions within City District(s). The City of Miami created the Miami For Everyone program to address the needs of the most vulnerable residents who continue to experience hardships due to a declared emergency (pandemic, natural disaster, etc.). Miami For Everyone focuses on projects and programs providing services directly benefitting City of Miami residents in the following priority areas: • Affordable Housing' • Educational Programs for children, youth and adults • Elderly meals, direct financial assistance, transportation, recreational and health/wellness related. activities • Direct financial assistance, food assistance (gift card programs, voucher programs) • At -risk youth or youth summer job programs • Transportation services and programs • Job development, retention and training programs • Homeless Services • Food Distribution programs • Necessary climate and resiliency improvements in compliance with program purpose and guidelines • Essential supplies, during a State of Emergency, natural disaster, or economic crisis. • Necessary infrastructure improvements in compliance with program purpose and guidelines The expenditure of Miami For Everyone funds allocated under this Initiative shall only be expended to benefit the interest of disadvantaged residents of the City of Miami. Eligible Entities and Organizations: Miami For Everyone fund recipients must be an active and registered State of Florida entity: 1 All Affordable Housing projects shall be managed by the City of Miami's Department of Housing and Community Development ("HCD")'and subject to compliance with HCD's applicable rules, guidelines,. processes, and procedures, including but not limited to, relevant funding agreements. FILE NO. 14653 EXHIBIT C SUB City of Miami Miami For Everyone Program Guidelines (I) For Profit2; (2) Not -for profit organizations (5O1(3)(c)}; (3) Governmental units; (4) Educational and academic institutions; (5) City of Miami departments, Offices of City Elected Officials, agencies, or boards. Additional Program Guidelines and Requirements • Any organization considered for or selected to receive Miami For Everyone funds must comply with any and all local, state and federal laws, rules, regulations, or guidelines associated with the programs funded, and such allocations may be revoked at the sole discretion of the City Commission. • Organization must complete a Miami For Everyone funding request form. • MFE programs are subject to funding availability. • MFE fund recipients will use funds for a program or initiative that reaches a significant number of individuals and/or significantly mitigates the impacts of a declared emergency. • Recipients will be required to enter into a grant agreement with the City of Miami prior to any funding being disbursed. Said agreement shall include program/activity information and language regarding: o Resolution stating who is authorized to execute agreement with City of Miami o Scope of Services including but not limited to number of residents being served, City of Miami District/Location where services are being provided, program focus/priority area, frequency of service, performance measures and any other performance metric deemed relevant to the program priority area o: Budget detailing how funding will be utilized to provided services to City/District residents as described in the Scope of Services o invoicing for activities and services provided and residents assisted or served o Conflict of Interest o Insurance as required by the City of Miami, which said requirements may be amended by the City's Department of Risk Management ("Risk") and approved by Risk, which may be withheld in the City's sole discretion. o Any other material terms deem applicable to ensure appropriate use of public funds • If an agreement is not executed in six (6) months from the date of Commission approval, the recipient will be recommended for de -obligation. • Unless otherwise approved or extended by City Commission, the agreement term will end a year following contract execution. • Recipients will be required to complete an end of program close-out report certifying the services provided, performance metrics, location of services, timeline for the provision of MFE related services and a narrative of the overall accomplishments of the program. The City, from time to time, may conduct on -site monitoring and/or audits of the MFE funded program/activity/service. • Funds cannot be used to pay expenditures such as: o Lobbying Activities o Traveling for non -program participants o Meals for non -program participants o Pay bad debt 2 Only eligible to be awarded funding for affordable housing projects. City of Miami Miami For Everyone Program Guidelines o Defense and prosecution of criminal and civil proceedings o Donations or fund raising activities o Individual or Personal expenses o Pay same expense charged to other funding source (e.g. CDBG funds) o Sponsorship of events and activities o Any other expenditures deemed ineligible by the City of Miami Organizations that discriminate based on race, color, sex, religion, national origin, age or disability will not be recommended for funding. Administrative/Indirect expenses cannot exceed 10% of the budget allocation. • These guidelines are further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. • The attached Funding Request Form (pages 1-6) must be completed in its entirety by the applicant. The completed form must besubmitted to the Office of Management and Budget before the entity may added to the Commission Agenda for approval. (March 28, 2023) City of Miami Miami For Everyone Program Funding Request Form CONTACT INFORMATION: Contact Person: Paul Bilton Title: Project Manager Phone number: 786-399-4210 Email Address: pbilton@centennialmgt.Com Name of Person completing this form: Paul Bilton Legal Name of Organization: Liberty Renaissance Apartments LLC Address (Street, City, State, Zip Code): 7735 NW 146 Street, Ste 306 Miami Lakes, FL 33016 Executive Director of organization: Lewis Swezy Executive Director email: ISwezy@centennialmgt.com Executive Director Contact Phone Number: 305-720-3350 The organization is a registered and active State of Florida Corporation (select one): nFor -profit organization Not -for profit organization {501(3)(c)} Local governmental unit State governmental unit Educational and academic institution City of Miami department, office of elected official, agency or board Page 1 of .6 Return this form to: gbrito@miarnigov.com (March 28, 2023) City of Miami Miami For Everyone Program Funding Request Form ORGANIZATION AND PROGRAM/PROJECT INFORMATION Organization History and Background information:. 40 years of experience in land acquisition, finance procurement, development and construction in Miami -Dade Broward and Palm Beach counties. We have developed, constructed and continue to manage about 4,000 apartment units, most of which is residential Affordable Housing. Is your program/project providing direct services to residents of the City of Miami? Yes ❑No ❑ Number of residents your entity will serve: Frequency of Service: Age Group Served: 1s your program/project related to a declared emergency in the City of Miami? Yes❑No❑ Name of Declared Emergency: Date of Official Declaration: Is your program/project impacting one of Miami's afflicted communities? Yes ❑ Non Geographic Area Served (specific to this project/program) District Served (1, 2, 3, 4, 5, Citywide) Citywide Neighborhood/Community being served: Liberty City Program/Project Priority area (Select one): ❑ Affordable Housing u Educational Programs for children, youth, and adults Elderly meals, direct financial assistance, transportation, recreational and health/wellness related activities InDirect financial assistance, food assistance (gift card programs, voucher programs) nAt -risk youth or youth summer job programs Paget of.6 Return this form to: gbrito@miamigov.com (March 28, 2023) City of Miami Miami For Everyone Program Funding Request Form Transportation services and programs Job development, retention and training programs Homeless Services Food Distribution programs Climate Resiliency Improvements Essential supplies, during a State of Emergency, natural disaster, or economic crisis Allowable Infrastructure Improvement per program purpose and guidelines Page 3 of 6 Return this form to: gbrito@miamigov.com (March 28, 2023) City of Miami Miami For Everyone Program Funding Request Form Program/Project Title: Liberty Renaissance Project/Program Description: 98 1- and 2-bedroom Affordable Housing units in one three-story and one five -story building. 68 Units will be provided on the north side and 30 units on the south side of NW 61 Street Rents will be restricted to 30-70% of Area Median Income. Elderly demographic. Program Start Date: 9/28/2023 Program End Date: First Quarter 2027 Please describe how this program/project and funding will assist the community overcome the adverse effects of the declared emergency: IMPACT AND PERFORMANCE: Describe overall expected outcomes and performance measures for this project/program: Provide 98 Affordable Housing units for the Elderly. Please attach additional pages to the back of this packet, if the space above is not s: fficient. Page 4 of 6 Return this form to: Rbrito@miamigov.com (March 28, 2023) City of Miami Miami For Everyone Program Funding Request Form FUNDING REQUEST INFORMATION: Amount Requested: $ 3,000,000 Explain how the City of Miami's Miami For Everyone funding will be utilized: It will be used as gap funding to pay construction cost. The devlopment will be located at 1305-1361 and 1320-1370 NW 61 Street. Itemize MFE funding related to expenditures below: Personnel Salaries & Wages: $ Personnel Benefits $ Space Rental: $ Utilities (Electricity, Phone, Internet): $ Supplies: $ Equipment $ Marketing: $ Transportation (Participants): $ Meals (Participants): $ Professional Services (fist each): $ Construction (attach schedule of costs): $ 3,000,000 Other (please describe): Other (please describe): Other (please describe): Page 5 of 6 Return this form to: gbrito@miainigov.com (March 28, 2023) Commission Meeting Date: Additional Comments: City of Miami Miami For Everyone Program Funding Request Form To be completed by the Entity/Recipient By signing below you agree to the guidelines and stipulate that t accurate and complete. Completed by (Print & Sign): Lewis Swezy Date: 9/25/2023 Additional Comments: n provided • is form is To be completed by District Commissioner/Mayor's Office Recommended for funding: Yes ❑x No❑ $3,000,000.00 Funding Recommendation: 09/28/2023 DocuSigned by Completed by (Print & Sign):611 9"@964oy..- September 26, 2023 1 15:21:30 EDT Date: Yvette Harrell To be completed by the Department OS rab Received by (Print & Sign): SFtlEtiJ1l96[;5495 September 26, 2023 1 15:51:07 EDT (—DocuSigned by: Date: Marie Gouin Additional Comments: Page 6 of 6 Return this form to: gbrito@miamigov.com (March 28, 2023) Members of the Housing and September 26, 2023 Commercial Loan Committee George Mensah, Director Department of Housing & Community Development BORROWER: Liberty Renaissance Apartments, LLC: Liberty Renaissance Liberty Renaissance Apartments, LLC, a Florida limited liability company created for the development of the project. The Managing Partners are Lewis V. Swezy (99.9%) and Liberty Renaissance Apartments MINI LLC (0.01%). Mr. Swezy is the Principal of the Centennial Management Corp. Centennial Management Corp. is a full service real estate development company with the vast experience in all aspects of development. It is a part of a family companies owned and operated by Lewis Swezy. Mr. Swezy has been developing, constructing and managing real estate properties in Miami -Dade and Broward Counties for the last 30 years. As a developer, licensed real estate broker and licensed general contractor Centennial Management and its affiliates handle every step of the development process: land acquisition, financing, construction, marketing and property management. Properties currently owned and managed include over 3,000 residential housing rental units, as well as 900,000 square feet of commercial space. Vacant land owned in South Florida totals roughly 250 acres (of which two properties are in underwriting at this time). Centennial Management worked directly with a number of municipalities in meeting their housing objectives including the City of Miami, City of Hallandale Beach and Town of Davie. PROJECT Liberty Renaissance will be a new construction. The development will be located on non- contiguous sites. It will be a combination of sites, currently owned by the City of Miami. 1305-1361 NW 61 St site, on the north side, will be a 5-story mixed use building that will have total of 68 units, fifty-six (56) units, one bedroom and one bath, and twelve (12) units, two bedroom and two bath. Building will have leasing office, laundry room, community, and fitness center. 1320 and 1370 NW 61 St, on the south side, will be a 3-story mixed use building that will have total of thirty units, twenty-seven (27) units, one bedroom and one bath and three (3) units, two bedroom and two bath. Building will have a community room. Liberty Renaissance Apartments, LLC: Liberty Renaissance 2 September 26, 2023 The project will have nighty -eight (98) City of Miami For Everyone ("MFE') assisted units. The project will provide an affordable housing for extremely low, very low- and low-income persons, ranging from 30% up to 70% of the area median income. BACKGROUND On November 21, 2016, the City of Miami issued a Request for Proposals ("RFP") inviting qualified private real estate developers to propose developments of Affordable/Workforce rental housing on certain City -owned parcels of land. One of the two successful bidders was Centennial Management Corp. On November 16, 2017, pursuant to Resolution 17-0512, the City Commission authorized the transfer with affordable/workforce rental housing restrictions and automatic reverter provisions, of the City -owned properties located at 1305, 1321, 1331, 1341 and 1361 NW 61 St to Centennial Management for the construction of affordable/workforce housing for eligible low to moderate income persons. On November 15, 2018, pursuant to Resolution 18-0506, the City Commission authorized the transfer with affordable/workforce rental housing restrictions and automatic reverter provisions, of the City -owned properties located at 1320 and 1370 NW 61 St to Centennial Management for the construction of affordable/workforce housing opportunities. Centennial Management will be required to pay back the City of Miami $364,530.25 for all of the sites as Homeland Defense Limited Ad Valorem Tax Bonds were used at acquisition and, therefore, the City of Miami is required to be reimbursed back. On March 14, 2019, pursuant to Resolution 19-0100, the City Commission authorized the conveyance of the sites to Liberty Renaissance Apartments LLC. On March 14, 2019, pursuant to Resolution 19-0111, the City Commission authorized the issuance and Bond validation for the Liberty Renaissance project in the amount of $1,000,000. On September 27, 2019, Members of the Housing and Commercial Loan Committee approved the allocation of Miami Forever Bond ("GOB") in the amount of $1,000,000 for the development of 98-unit, Liberty Renaissance project. The original development plan was to build two structures containing a total of ninety-eight (98) units. North side building located at 1305-1361 NW 61 St sites to contain sixty-eight (68) units and the South side building to be built on 1320 and 1370 NW 61 St sites a total of thirty (30) rental units. The developer made two unsuccessful attempts to secure 9 % tax credits from the State of Florida Low Income Housing Tax Credit program. Subsequently, it was determined that to meet the priorities of the District, the Developer was asked to restructure the proposed plan to include a rental development on parcel 1305-1361 NW 61 St and a homeownership development on parcel 1320 and 1370 NW 61 St. Liberty Renaissance Apartments, LLC: Liberty Renaissance 3 September 26, 2023 On October 29, 2021, Members of the Housing and Commercial Loan Committee approved a new modified rental project. The new modified project would provide sixty-eight (68) rental units for households ranging from 30% up to 80% of the area median income. The project would be built on the City of Miami -owned parcels 1305-1321-1331-1341-1361 NW 61 St. The City of Miami -owned parcels located at 1320 and 1370 NW 61 St would not be used for this project as originally projected. At that time, additional funding in the amount of $2,064,070 in GOB funds was approved for the new 68-unit project, bringing the total GOB financing to $3.064M. The originally proposed homeownership project did not materialize due to the lack of funding and change in the District 5 Commissioner's Office. The new and fully rental project is now being supported by the current District 5 Commissioner's Office. BORROWER' S REQUEST On July 26, 2023, Developer submitted a Letter of Request to the City of Miami with a proposal of the new modifications to the project. The new modified project will provide (98) rental units for households ranging from 30% up to 70% of the area median income. The project will be built on North Side on the City of Miami -owned parcels 1305-1321-1331-1341-1361 NW 61 St and on South Side at 1320 and 1370 NW 61 St as originally projected. The proposed project mix is as follows: Previously approved: 10 units at 28% AMI 5 units at 30% AMI 5 units at 50% AMI 63 units at 60% AMI 0 units at 70% AMI 15 units at 80% AMI Total 98 units DEPARTMENTAL RECOMMENDATION Proposed: 0 units at 28% AMI 20 units at 30% AMI 0 units at 50% AMI 33 units at 60% AMI 45 units at 70% AMI 0 units at 80% AMI Total 98 units Based on the Borrower's request, the Department recommends de -obligating the past allocation of $3,064,070 in Miami Forever Bonds ("GOB") funds and now allocating $3,000,000 of City of Miami For Everyone ("MFE") Funds to Liberty Renaissance Apartments, LLC for the development of Liberty Renaissance project. The City of Miami For Everyone Funds dollars shall be contingent on but not limited to the following terms and conditions: Liberty Renaissance Apartments, LLC: Liberty Renaissance 4 September 26, 2023 1. Project Financing: Evidence of the project securing a construction/permanent loan(s) acceptable to the Department of Housing and Community Development and the City Attorney's Office. 2. Permitting: Evidence that the project secured full construction building permit form the City of Miami. 3. Use of Funds: City funds will be used for the construction hard costs. 4. City Assisted Units: 98 project units shall be assisted with MFE funds for low and very low-income households. 20 units will be at 30% AMI, 33 units will be at 60% of AMI, and 45 units will be at 70% of AMI. 5. MFE Funding approval. The requested allocation of the MFE funding requested is subject to City of Miami Commission approval. 6. Maximum Rent Levels: Rents charged on MFE-assisted units will be subject to Florida Housing Finance Corporation for Multifamily Rental Programs and CWHIP Homeownership according to the income target proposed by the Borrower. The rent and income limits are published annually by the US Department of Housing and Urban Development ("HUD") and Florida Housing Finance Corporation ("FHFC"). 7. Affordability Period: an affordability period of 30 years will apply commencing from the date the City approves the closeout of the project. 8. Loan Repayment & Interest Rate Terms: This is a deferred loan provided to the Borrower with no debt service payments required. The property must maintain the required affordability structure for a period of 30 years. Failure to comply with these requirements will result in the full repayment of principal and interest at an agreed upon interest rate. Upon completely upholding 30-year affordability requirement, deferred loan may be forgiven. 9. Draw Disbursements: The City shall not fund any draw request in an amount that exceeds the City's initial contribution percentage of the entire development cost of the proj ect. 10. City Incurred Costs: Borrower understands and agrees that $10,000 of the MFE funds may be used by the City to cover costs incurred by the City on behalf of the project. 11. Increase in Project Costs: If the project costs increase ten percent (10%) or more of the original budget, and the Borrower is not able to secure additional funding within 60 days before the project commencement, the project will be subject to recommendation to the Housing and Commercial Loan Committee for de -obligation of the project funding. 12. Retainage(s) : Five percent (5%) of each draw request will be retained until the City has received as part of the close-out, at the Borrower's sole cost, a Final Cost Certification prepared by an independent certified public accountant, both in form and substance acceptable to the City. 13. Commitment Fee: There will be a $5,000 commitment fee. 14. Eligible Project Costs: Eligible project costs will be effective from the date of environmental clearance. 15. Reporting Compliance: Borrower is subject to compliance reporting requirements in the process of construction and during the affordability period. 16. Development Benchmarks/Scope of Work: The project shall: (a) commence construction within six (6) months from the Effective Dated' of the contract; (b) obtain all certificates of occupancy required for the project within 18 months from the Effective Date; and (c) have all project units rented within 12 months after the issuance of [i] The "Effective Date" is the date on which the contract has been signed by the City Manager and attested to by the City Clerk. Liberty Renaissance Apartments, LLC: Liberty Renaissance 5 September 26, 2023 project's certificate(s) of occupancy, but in no event later than 30 months from the Effective Date. 17. Insurance Requirements: Borrower shall obtain and furnish evidence of insurance coverage as the City may require in connection with the Project. 18. Affirmative Marketing Plan: Borrower shall provide an Affirmative Marketing Plan using HUD's approved form and report to the City annually on all actions taken to comply with said plan. Borrower shall comply with the requirements of the affordable housing notice to City Officials Ordinance #13491. 19. Lottery: Selection of eligible tenants shall be from the results of a tenant lottery, which shall be conducted with a representative of the City of Miami present. In addition, the project shall comply with the requirements of the City of Miami Ordinance 13645, Resident Preference. 20. Project Signage: Borrower shall furnish signage identifying the Project and shall acknowledge the contribution of the City by incorporating the seal of the City and the names of the City commissioners and officials in all documents, literature, pamphlets, advertisements, and signage, permanent or otherwise. All such acknowledgments shall be in a form acceptable to the City and its costs should be covered under the City Incurred Cost line item. 21. De -obligation of Funds: The City may at its sole discretion de -obligate the funding approved herein, if by no later than six (6) months from the date of approval of the City funds, the Borrower has failed to close on all funding commitments represented herein. 22. Discretionary Action by Administration: Staff shall have the discretion to approve and, by way of Memorandum, authorize the City Manager to execute any and all documents needed to further the Project Completion, provided, however, that the lien position nor the project terms are not materially affected. 23. Project Default: If the City determines that the project is in default, the following conditions will apply: • The highest interest rate available under the law will be applicable for the funds disbursed from date of disbursement. • The Restrictive Covenant will remain as a restriction on the Project property throughout the Affordability Period; and • The borrower, project developer, managing partner(s) of the borrower and/or other individuals, principals and/or other entities as determined by the City will be debarred from receiving any City funding for a period of five (5) years. 24. Compliance with Ordinance #13491 Notice to Residents, and Ordinance #13645 Resident Preference. 25. Compliance with the provisions of Davis Bacon Act, and regulations, as amended and if applicable. Liberty Renaissance Apartments, LLC: Liberty Renaissance 6 September 26, 2023 HOUSING AND COMMERCIAL LOAN COMMITTEE DECISION: Approved as Recommended by Staff To Include Additional Conditions or Restrictions Disapproved To Include Further Action Specify any further action, conditions or restrictions: Yes ❑ No ❑N/A ❑ Yes ❑No ❑ N/A ❑ Yes ❑No ❑ N/A ❑ Yes ❑No ❑ N/A ❑ Chairperson or Representative Stamp Date SUBSTITUTED. Exhibit C To Be Distributed File ID 14653