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Home My WebLink AboutR-24-0472City of Miami Resolution R-24-0472 Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 16870 Final Action Date: 11/21/2024 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE ASSIGNMENT AND ASSUMPTION OF A FORGIVABLE LOAN IN AN AMOUNT NOT TO EXCEED TWO MILLION AND 00/100 DOLLARS ($2,000,000.00) IN AMERICAN RESCUE PLAN ACT OF 2021 ("ARPA") FUNDS ("ARPA LOAN") ORIGINALLY WITH CASA VALENTINA, INC. ("ORIGINAL DEVELOPER"), A FLORIDA NON -FOR -PROFIT ORGANIZATION, TO DFI MUNDY, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DFI MUNDY"), TO DEVELOP TWO (2) FOUR-PLEXES ON THE PARCELS DESCRIBED IN EXHIBIT "C," ATTACHED AND INCORPORATED, ON WHICH DFI MUNDY WILL CAUSE TO BE CONSTRUCTED A NEW AFFORDABLE HOUSING DEVELOPMENT TO BE KNOWN AS "DFI MUNDY AFFORDABLE HOUSING" ("NEW PROJECT") THAT WILL CONTAIN NO FEWER THAN EIGHT (8) CITY -ASSISTED RESIDENTIAL RENTAL UNITS FOR ELIGIBLE RESIDENTS WITH ANNUAL INCOME EQUAL TO OR LESS THAN EIGHTY PERCENT (80%) OF AREA MEDIAN INCOME AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("AMI"), AS FURTHER DESCRIBED IN EXHIBIT "B," PROVIDED THAT DFI MUNDY FULFILLS ANY AND ALL TERMS AND CONDITIONS SET FORTH HEREIN, IN THE CITY OF MIAMI ("CITY") HOUSING AND COMMERCIAL LOAN COMMITTEE APPROVAL ("HCLC APPROVAL"), THE CITY'S ARPA CONSULTANT APPROVAL ("CONSULTANT APPROVAL"), AND COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE OF FLORIDA, LOCAL, AND CITY LAWS, RULES, AND REGULATIONS FOR AFFORDABLE HOUSING PROJECTS ("LAWS"); FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER TO RE -ALLOCATE EXISTING FUNDING IN THE FORM OF A LOAN ASSIGNMENT AND ASSUMPTION IN AN AMOUNT NOT TO EXCEED TWO MILLION AND 00/100 DOLLARS ($2,000,000.00) IN ARPA FUNDS FOR THE NEW PROJECT; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING, BUT NOT LIMITED TO, AMENDMENTS, EXTENSIONS, AND MODIFICATIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY; PROVIDING FOR AN EFFECTIVE DATE. SPONSOR(S): Commissioner Damian Pardo WHEREAS, on September 23, 2021, pursuant to Resolution No. R-21-0387, the City Commission approved an allocation of Four Hundred Forty Thousand, Eight Hundred Forty Six and 00/100 Dollars ($440,846.00) in the form of a forgivable loan in Community Development Block Grant ("CDBG") funds to Casa Valentina, Inc., a Florida Not For Profit Corporation ("Original Developer") in order to purchase land, including land located at 3121 Mundy Street and 3173 Mundy Street, as described in Exhibit "C," attached and incorporated ("Parcels"), to City of Miami Page 1 of 4 File ID: 16870 (Revision:) Printed On: 8/11/2025 File ID: 16870 Enactment Number: R-24-0472 develop no fewer than fifty (50) City -Assisted Units to be occupied by eligible residents whose annual income is equal to or less than eighty percent (80%) of area median income ("AMI") as published annually by the United States Department of Housing and Urban Development ("HUD") for a period of no less than thirty (30) years ("Original Project"); and WHEREAS, on October 14, 2021, pursuant to Resolution No. R-21-0427, the City Commission approved an allocation of Two Million and 00/100Dollars ($2,000,000.00) in the form of a forgivable loan in American Rescue Plan Act of 2021 ("ARPA") funds ("ARPA Loan") to the Original Developer in order to complete the purchase of the Parcels and to develop and construct the City -Assisted Units to be occupied by eligible residents; and WHEREAS, in early March of 2023, the Original Developer notified the City of Miami ("City") that the Original Project as contemplated was not possible due to zoning restrictions; and WHEREAS, in September of 2023, the Original Developer notified the City that it will no longer be able to deliver or complete the Original Project; and WHEREAS, DFI Mundy, LLC., a Florida Limited Liability Company ("DFI Mundy") submitted a revised project proposal in response to the City's Request for Proposals ("RFP") #HCD 2019-01 Affordable Housing Pipeline Request for Proposals - Construction/Rehabilitation/Permanent Financing for Multi -Family Rental Developments and Multifamily/Single Family Homeownership Developments located in the City of Miami ("Affordable Housing Pipeline RFP") in order to assume the ARPA Loan, and to further develop, and take over the stalled Original Project and re -develop it as a new project as further described in Exhibit "A," attached and incorporated ("Affordable Housing Pipeline RFP Application"); and WHEREAS, DFI Mundy is wholly owned by Dragonfly Investments LLC, a Florida Limited Liability Company ("Dragonfly"), created for the sole purpose of assuming the original ARPA loan from the Original Developer and serving as the borrowing vehicle to accept any additional funds for the New Project; and WHEREAS, Dragonfly was formed in 2014 and currently has over 400 affordable housing units in various stages of development; and WHEREAS, DFI Mundy, will construct two (2) four-plexes on the Parcels, as described in Exhibit "B," attached and incorporated, to be known as DFI Mundy Affordable Housing ("New Project");" and WHEREAS, upon completion of the New Project, the development will house a minimum of eight (8) households whose income is equal to or less than eighty percent (80%) of area median income ("AMI"); and WHEREAS, on October 29th 2024, the City's Housing and Commercial Loan Committee ("HCLC") reviewed and approved the Affordable Housing Pipeline RFP Application for the New Project, and recommended the assignment and assumption of the ARPA Loan by DFI Mundy in the amount of Two Million and 00/100 Dollars ($2,000,000.00), and the supplemental allocation of an amount not to exceed Four Hundred Fifty Thousand and 00/100 Dollars ($450,000) in the City's Miami For Everyone Program Funds for the development of the new affordable housing project to be located at 3121 and 3171 Mundy St., attached and incorporated as Exhibit "B" ("HCLC Approval"); and City of Miami Page 2 of 4 File ID: 16870 (Revision:) Printed on: 8/11/2025 File ID: 16870 Enactment Number: R-24-0472 WHERAS, the City's ARPA Consultant, Atkins, a member of the SNC-Lavalin Group, or its successor ("ARPA Consultant"), has reviewed the New Project and HCLC Approval and provided an approval recommendation subject to the New Developer fulfilling, in a timely manner, any and all terms, requirements, and conditions set forth in the HCLC Approval in compliance with all Federal, State, and Local Laws that regulate the use of such funds for said purpose, attached and incorporated as Exhibit "D" ("Consultant Approval"); and WHEREAS, DFI Mundy submitted a Miami For Everyone ("MFE") grant application and was awarded an amount not to exceed Four Hundred Fifty Thousand and 00/100 Dollars ($450,000.00) in MFE Program funds in the form of a forgivable loan on September 12, 2024, pursuant to Resolution No, R-24-0346 for the New Project, attached and incorporated as Exhibit "E;" and WHEREAS, the City Manager is requesting authority from the City Commission to negotiate and execute any and all documents necessary, all in forms acceptable to the City Attorney, for the assignment and assumption of the ARPA Loan with DFI Mundy for the New Project; and WHEREAS, the assignment and assumption of the ARPA loan shall be in compliance with all applicable Federal, State of Florida, local, and City laws, rules, and regulations for affordable housing projects, including but not limited to ARPA (collectively, "Laws"); NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble of this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The City Commission authorizes the assignment and assumption of the ARPA Loan in the total amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) in ARPA Funds to DFI Mundy for the construction of the New Project, where the disbursement of the ARPA Funds is subject to DFI Mundy's fulfillment of any and all terms and conditions set forth herein, in the HCLC Approval, the Consultant Approval, and subject to compliance with all applicable Laws. Section 3. The City Commission hereby authorizes' and directs the City Manager to re- allocate existing funding in the form of a loan assignment and assumption in an amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) in ARPA funds for the New Project being developed by DFI Mundy, provided that DFI Mundy fulfills any and all terms and conditions set forth herein, in the HCLC Approval, the Consultant Approval, and subject to compliance with all applicable Laws. Section 4. The City Manager is authorized' to negotiate and execute any and all necessary documents, including, but not limited to, amendments, extensions, and modifications, all in forms acceptable to the City Attorney, subject to compliance with all applicable Laws and subject to DFI Mundy fulfilling all of the terms and conditions set forth herein, the HCLC Approval, the Consultant Approval, and subject to compliance with all applicable Laws. 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions City of Miami Page 3 of 4 File ID: 16870 (Revision:) Printed on: 8/11/2025 File ID: 16870 Enactment Number: R-24-0472 Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: City of Miami Page 4 of 4 File ID: 16870 (Revision:) Printed on: 8/11/2025