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Home My WebLink AboutCRA-R-26-0006 MemorandumOMNI Board of Commissioners Meeting February 12, 2026 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Damian Pardo and Members of the CRA Board From: Carlos I. Suarez Executive Director Date: February 5, 2026 File: 18892 Subject: Affordable Housing Project — 2003 N. Miami Avenue Enclosures: 18892 Exhibit A 18892 Backup 18892 Notice to the Public BACKGROUND: This memorandum recommends that the Board of Commissioners of the Omni Community Redevelopment Agency ("CRA") adopt a Resolution, by a four -fifths (4/5ths) vote following an advertised public hearing, to approve the Executive Director's recommendation. The Board is asked to find that competitive negotiation is not practicable or advantageous under Sections 18- 85 and 18-86 of the City of Miami Code, waive competitive sealed bidding, and authorize the Executive Director to amend the existing grant agreement to allocate additional funding in an amount not to exceed Two Million Dollars ($2,000,000.00) in additional funding for the mixed - use affordable housing project at 2003 North Miami Avenue, Miami, Florida 33127 ("Project"). The Project includes ground -floor commercial space and ten (10) residential units, eight (8) at 80% of Area Median Income ("AMI") and two (2) at 100% AMI. The affordability period will be extended to fifty (50) years, starting at the issuance of the Temporary or final Certificate of Occupancy, whichever comes first. Subsequent to the CRA's initial grant award, the Grantee has experienced unforeseen and unanticipated project costs, primarily attributable to additional requirements imposed by the City of Miami to bring the property into full code compliance, including life safety, structural, and building systems upgrades. These circumstances have created a funding gap that necessitates additional CRA assistance in order to complete the Project as previously approved. This Project aligns with the 2019 Redevelopment Plan, supports the rehabilitation of a blighted mixed -use property, and ensures long-term housing affordability in the redevelopment area. RECOMMENDATION: Based on the foregoing, it is recommended that the Board of Commissioners of the Omni Community Redevelopment Agency adopt the attached resolution. By a four -fifths (4/5ths) affirmative vote, the Resolution ratifies, approves, and confirms the Executive Director's finding and authorizes the allocation of additional grant funding in an amount not to exceed Two Million Dollars ($2,000,000.00) to Kush Property LLC for the completion of the Project and the extension of the affordability period to fifty (50) years. FUNDING: $2,000,000 allocated from CRA Reserve "Other Grant and Aids" Account Number 10040.920501.8830000.0000.00000. City of Miami Page 2 of 5 File ID: 18892 (Revision: A) Printed On: 2/24/2026 i Omni CRA City of Miami Legislation OMNI CRA Resolution CRA-R-26-0006 OMNI CRA 1401 N. Miami Avenue Miami, FL 33136 www.miamicra.com File Number: 18892 Final Action Date:2/12/2026 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING, ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A" THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTIONS 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AS ADOPTED BY THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING AN ADDITIONAL ALLOCATION OF GRANT FUNDS IN AN AMOUNT NOT TO EXCEED TWO MILLION AND 00/100 DOLLARS ($2,000,000.00) FOR THE MIXED -USE AFFORDABLE HOUSING PROJECT LOCATED AT 2003 NORTH MIAMI AVENUE, MIAMI, FLORIDA 33127, WITHIN THE CRA'S REDEVELOPMENT AREA TO KUSH PROPERTY LLC, A FLORIDA LIMITED LIABILITY COMPANY; EXTENDING THE AFFORDABILITY PERIOD OF THE PROJECT TO FIFTY (50) YEARS, COMMENCING AT THE ISSUANCE OF THE TEMPORARY CERTIFICATE OF OCCUPANCY ("TCO") OR CERTIFICATE OF OCCUPANCY, WHICHEVER IS EARLIER AND AMENDING THE MIX TO TEN (10) UNITS; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN AMENDMENT TO THE GRANT AGREEMENT AND SUPPORTING DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, INCLUDING ANY AND ALL OTHER NECESSARY DOCUMENTS, AMENDMENTS, AND MODIFICATIONS THERETO, TO EFFECTUATE SAID AMENDMENTS, ALL BEING SUBJECT TO THE AVAILABILITY OF FUNDING UPON THE PRESENTATION OF INVOICES OR SATISFACTORY DOCUMENTATION, AND RESTRICTIVE COVENANT BEING RECORDED IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA; PROVIDING FOR THE INCORPORATION OF RECITALS AND AN EFFECTIVE DATE. WHEREAS, the Omni Redevelopment District Community Redevelopment Agency ("CRA") is tasked with reducing slum and blight within its boundaries; and WHEREAS, the 2019 Redevelopment Plan ("Plan") on page 4-32 lists "to find ways to ensure housing remains affordable for all income levels within the district, but particularly for those households meeting workforce or lower income guidelines," as an objective of the CRA; and WHEREAS, the Plan on page 4-33 states the CRA can "create and implement programs to assist target income households rehabilitate and/or maintain units they currently own" and City of Miami Page 3 of 5 File ID: 18892 (Revision: A) Printed On: 2/24/2026 "devise and implement programs to assist housing providers in creating affordable units for target households"; and WHEREAS, on July 25, 2024, the CRA as part of its efforts to beautify the OMNI Community Redevelopment District adopted CRA Resolution No. CRA-R-24-0046 (the "Resolution"), which authorized the allocation of funds in an amount not to exceed Three Million One Hundred Thousand and 00/100 Dollars ($3,100,000.00) to Kush Property LLC, a Florida Limited Liability Company ("Grantee"), to rehabilitate the property located at 2003 North Miami Avenue, Miami, Florida 33127 ("Property"), located within the CRA boundaries, consisting of ground floor commercial space and residential units; and WHEREAS, subsequent to the adoption of the Resolution, the Grantee experienced unforeseen and unanticipated project costs, primarily attributable to additional requirements imposed by the City of Miami to bring the Property into full code compliance, including but not limited to life safety, structural, and building systems upgrades, thereby creating a funding gap necessitating additional CRA assistance to complete the project as approved; and WHEREAS, during project execution it was determined that the existing staircase did not comply with current building code and Americans with Disabilities Act ("ADA") requirements, requiring it to be widened, which reduced available floor area and necessitated a reduction in the unit count from eleven (11) to ten (10) units; and WHEREAS, the project now consists of ground floor commercial space and ten (10) total residential units, which after completion eight (8) units will be rented to Moderate -Income eligible residents whose annual income is equal to or less than eighty percent (80%) of the Area Median Income ("AMI") for Miami -Dade County, as published annually by the United Stated Department of Housing and Urban Development ("HUD"), and two (2) units will be for eligible residents whose annual income is equal to or less than one hundred percent (100%) AMI for Miami -Dade County, as published annually by HUD ("Project"); and WHEREAS, Grantee thereby submitted a request for additional funding in the amount of Two Million and 00/100 Dollars ($2,000,000.00) to continue the Project; and WHEREAS, the affordability period for the Project shall be extended to a total of fifty (50) years, commencing at the issuance of the Temporary Certificate of Occupancy or Certificate of Occupancy, whichever is earlier; and WHEREAS, the grant funding for the Project will not be disbursed until verification of the total project funding structure is complete; and WHEREAS, the success of the Project will result in accomplishing the stated objectives of the Plan; and WHEREAS, based on the recommendation and finding of the Executive Director, attached and incorporated as Exhibit "A", it is in the CRA's best interest to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures pursuant to Sections 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the CRA, for the allocation of additional grant funds to Grantee for the Project in an amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) to be disbursed subject to the availability of funding, upon the presentation of invoices or satisfactory documentation; City of Miami Page 4 of 5 File ID: 18892 (Revision: A) Printed On: 2/24/2026 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble of the Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written finding, attached and incorporated as Exhibit "A", pursuant to Sections 18-85 and 18-86 of the City Code, as adopted by the CRA, are ratified, approved, and confirmed and the requirements for competitive sealed bidding methods as not being practicable or advantageous to the CRA are waived. Section 3. Additional funds in an amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) for the Project are allocated from the CRA Fiscal Year 2025-2026 budget, subject to the availability of funding, presentation of invoices or satisfactory documentation, and a restrictive covenant being recorded in the public records of Miami -Dade County, Florida. Section 4. The Executive Director is hereby authorized to negotiate and execute an amendment to the grant agreement and supporting documents, including any and al other necessary documents, amendments, and modifications thereto, all in forms acceptable to the General Counsel, to effectuate said amendment, including but not limited to a restrictive covenant detailing the rental unit mix for rent restrictions as stated herein, with rents being restricted for a period of Fifty (50) years, commencing at the issuance of the Temporary Certificate of Occupancy or Certificate of Occupancy, whichever is earlier, to be recorded in the public records of Miami -Dade County, Florida. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: srF 26i4s ORGE rWYSON III. ENERAL COUNSEL City of Miami Page 5 of 5 File ID: 18892 (Revision: A) Printed On: 2/24/2026