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HomeMy WebLinkAboutCRA-R-22-0033 MemorandumSEOPW Board of Commissioners Meeting July 28, 2022 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King and Members of the CRA Board From: James McQueen Executive Director Date: July 22, 2022 File: 12349 Subject: Emergency Rental Assistance Program Enclosures: FILE #12349 - Backup BACKGROUND: This Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") authorizes a grant, in an amount not to exceed $1,000,000.00, the funding of an Emergency Rental Assistance Program ("ERAP") to be administered by the SEOPW CRA. The ERAP is in response to the recent rent spike crisis in the area, to help re -stabilize the housing situation for many of our residents, during a projected, oncoming economic recession and eviction predicament in the SEOPW CRA zone. Since the overall impact of the pandemic, including rising inflation and a real estate boom, SEOPW CRA has quickly become the most housing costs -burdened, major metropolis in the nation. Moreover, in the backdrop of the end of eviction moratoriums, the SEOPW CRA jurisdiction is even more vulnerable due to the areas low income within the redevelopment area. The recent federal economic stimulus packages inspired a plethora of similar programs in municipalities across the county. The SEOPW CRA essentially models them, prioritizing tenant households failing at or under 50% Area Median Income ("AMP') over 80% AMI threshold requirement. JUSTIFICATION: Florida Statutes, Section 163.335(6) of the Community Redevelopment Act (the "Act"), found and declared that there exists "... a severe shortage of housing affordable to residents of low or moderate income, including the elderly... [and] such condition[s] affect the health, safety and welfare of the residents ... and retards their growth and economic and social development ...." Section 2, Goal 3, on page 10 of the 2018 Southeast Overtown/Park West Community Redevelopment Plan (the "Updated Plan") lists "encourag [ing] ... affordable ...housing within the CRA" as a stated redevelopment goal; and Section 2, Principle 2, on page 13 of the "Updated Plan" also provides that "the neighborhood must retain access to affordable housing even as the neighborhood becomes more desirable to households with greater means" as a stated redevelopment principle; and Section 2, Principle 14, on page 15 of the "Updated Plan" also provides to "restore a sense of community and unify the area culturally... to do whatever is in [the CRA's] power to bring back... Overtown its... sense of place [and] cultural distinctiveness" as a stated redevelopment principle. FUNDING: $1,000,000.00 allocated from SEOPW "Other Grants and Aids" Account No. 10050.920101.883000.0000.00000. FACT SHEET: Company name: Southeast Overtown/Park West Community Redevelopment Agency (Emergency Rental Assistance Program) Address: 819 NW 2nd Ave., 3rd floor, Miami, FL 33136 Number of participants: Estimated impact of over 170 jurisdictional tenant households and property owners combined. Funding request: $1,000,000.00 Term: Payments will start in August 2022 over the maximum period of six months' worth of rental payments; January 2023 is when the earliest grantees would be exiting the program Stipend provided? Yes, a stipend to participants. Maximum allotted rent increase payment of $500.00 a household for a maximum period of six months, making for a cap of $3,000.00, to be paid directly to the property owner after passing a unit inspection. Age range of participants: Adults of legal tenant and property -owning age, 18+ Scope of work or services (Summary): We are largely modeling from similar ERA programs of local municipalities. A marketing campaign will follow, including the distribution of informational flyers or brochures. Paper applications will be disseminated throughout the jurisdiction with both tenants applying and landlords being given the opportunity to approve or refer their tenants to the program, all with the submission option to mail in or drop off directly to CRA Office. We will use our rubric to help determine prioritization and eligibility. Alternatives may be sought for eligible tenant grantees with uncooperative landlords. Page 2 of 5 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: July 28, 2022 CRA Section: Brief description of CRA Agenda Item: Authorizing an expenditure, in an amount not to exceed $1,000,000.00, to the funding of an Emergency Rental Assistance Program. Project Number YES, there Account Code:10050.920101.883000.0000.00000 (if applicable): are sufficient funds in Line Item: Amount: $1 , 0 0 0, 0 0 0.0 0 NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUMBER TOTAL Project No./Index/Minot Object From $ To $ From $ To $ Comments: Approved by: Approval: Executive Director 7122/2022 Miguel A Valentin, ririarice Off;cer 7122/2022 Page 3 of 5 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-22-0033 File Number: 12349 Final Action Date:7/28/2022 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, AUTHORIZING THE FUNDING, TO ITS EMERGENCY RENTAL ASSISTANCE PROGRAM ("ERAP"), IN AN AMOUNT NOT TO EXCEED OF $1,000,000.00; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AND PROVIDING FOR THE INCORPORATION OF RECITALS A AN EFFECTIVE DATE. ALLOCATING FUNDS FROM SEOPW, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. WHEREAS, Florida Statutes, Section 163.335(6) of the Community Redevelopment Act (the "Act"), found and declared that there exists "... a severe shortage of housing affordable to residents of low or moderate income, including the elderly... [and] such condition[s] affect the health, safety and welfare of the residents ... and retards their growth and economic and social development ...." WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2018 Updated Southeast Overtown/Park West Redevelopment Plan (the "Updated Plan"); and WHEREAS, Section 2, Goal 3, on page 10 of the 2018 Southeast Overtown/Park West Community Redevelopment Plan (the "Updated Plan") lists "encourag [ing] ... affordable... housing within the CRA" as a stated redevelopment goal; and WHEREAS, Section 2, Principle 2, on page 13 of the "Updated Plan" also provides that "the neighborhood must retain access to affordable housing even as the neighborhood becomes more desirable to households with greater means" as a stated redevelopment principle; and WHEREAS, Section 2, Principle 14, on page 15 of the "Updated Plan" also provides to "restore a sense of community and unify the area culturally... to do whatever is in the CRA's] power to bring back... Overtown its... sense of place [and] cultural distinctiveness" as a stated redevelopment principle. WHEREAS, The ERAP is in response to the recent rent spike crisis in the area, to help re - stabilize the housing situation for many of our residents, during a projected, oncoming economic recession and eviction predicament in the SEOPW CRA zone. Page 4 of 5 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Executive Director is authorized to execute all documents necessary for said purpose. Section 3. The Executive Director is authorized to disburse funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory documentation. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: e Br ounsel 7/22/2022 Page 5 of 5