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HomeMy WebLinkAboutR-77-0659140 77,659 ttaoLUtiot4 ..,,VRESOLUTION APPROVING THE FINANCIAL PLAN AND IDROJECT CONTRACT FOR 156 SECTION 8 HOUSING UNITS FOR HOUSEHOLDS OF LOW AND MODERATE INCOME LOCATED IN LUMMUS PARK, LITTLE HAVANA, COCONUT iROVE AND MODEL CITIES; SUCH APPROVAL IS CONSISTENT AND IN ACCORDANCE WITH THE AGREEMENT FOR FINANCING HOUS ING IN THE CITY or MIAMI BY AND BETWEEN DADE COUNTY AND THE CITY oF MIAMI DATED JULY 19, WntRtAS, there is a shortage of adequate households of low and moderate income; and WHEREAS, the City of Miami passe 25,000,00 using Bond Issue to alleviate this crucial nee and WHEREAS, the U.S. Dopartm sing Urban Development has allocated subsidies for 6 Sect w truction dwelling units for households of 1 income; and WHEREAS, Dad prepared a Financial Plan and Pro - Contract for said u aecordance with the Agreement for Financing Uousi n Ci f r 1 by and between Dade County and the City Mlami, ated Ju 19. 1976; and h Financial Plan and Project Contract requires appro de sion of the City of Miami t sing units; proceed with the FORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY "DOCUMENT INDEX ITEM NO..90 ion 1. The Financial Plan and Project Contract for the Section 8 housing units located in Lummus Park, Little Havana, onut Grove and Model Cities are hereby approved. Section 2. The City Manager is hereby authorized to coordin- ate with Dade County in the development of said housing units in accordance with the guidelines established in the Agreement for Fin- ancing Housing in the City of Miami by and between Dade County and the City of Miami dated July 19, 1976 CITY COMMISSION MEETING OF JUL 2 3 1977 7 7 - 6 5 RE61117:,J4 NO. 9 Repealed by R-78-0012 MM N E▪ N Emm MEM BEE SEb ANb AbbP1 b TNtS Z TH.. day of RA G. CIT CLERK PREPARED AND APPROVED BY: MIQiEL E. ANDERSON ASSISTANT CITY ATTORNEY APPROVFti-D AS TO FO_IMAND COR GEORGE F. KNO CITY ATTORNEY Repealed by R-78-0012 MAURICE ^.. FERRE MAURICE A. FERRE MAYOR .5r11 , Joseph R, GYasaie ``� �t"''f' 1.J77 ,. City Manager Richard L. Fosmoen, Director Department of Planning t ' • , lGi-► =� Financial Plan and Project Contract for 156 Section 8 Housing Units City Commission Agehda July 28, 1977 The U.S. Department of Housing and Urban Development, in response to Miami's housing efforts as demonstrated by the passage of the $25,000,000 Housing Bond Issue in 1976, has allocated Section 8 subsidies for 156 dwelling units for households of low and moderate income. Funds from the sale of City of Miami's Housing Bonds in the amount of $321,915 will be used to support $3,903,000 worth of Dade County's revenue bonds. The attached Financial Plan and Project Contract have been prepared by Dade County's Department of Housing and Urban Development and reviewed by the City of Miami's Planning and Finance Departments. Both documents were found to be in accordance with the Agreement for Financing Housing in the City of Miami by and between Dade County and the City of Miami, dated July 1'), 1976. Review and approval by the City Commission are now neces- sary to proceed with the development of the 156 housing units. E Vatt .Ot1'f F?f (i , aE.i,.'.TT t "' g0L'Stc 0.):2CT3 tii2 f}t.:qtIi1ATrD DADE 3t; Lt1rMtlS bADE 8=='i MODEL CITY); DADE•8 -o • (RIVERSIDE) ; AND DADE 8-1 (COCOHtJ ' .1110:VS.)` `t' tLL PR'OJECT CONTRACT, dated as of 191.by and between THE CITY •OF `tIAMI, a municipal cornot'atioh (hereinafter called the "City") and DADE COUNTY, FLORIDA, a couhty (hereinafter called the "County"), in the State of Florida: • w1Tr)a s • consideration of the covenants and agreements herein cO - tained to be performed by the City and the County and other good valuable consideration paid by each of the parties to the other, the receipt of which is hereby severally acknowleded, THE CITY OF MIAMI, FLORIDA, and DADE COUNTY, FLORIDA, hereby agree as follows Section 1. This Contract is executed and delivered pursuant ;rtain A reement designated, :AGREEMENT FOR FINANCING HOUSING IN THE CITY OF dIP t BY AND BETWEEN • DADE COUNTY AND THE CITY CF MIAMI, by ar.d between the City and the County, dated as of July 19 197E (herein called the "Basic Agreement"). This Contract supplements the Basic Agreement and it is intended that the Basic Agreement and this Contract shall be part of an overall agreement between the City and the County. Words and terms used in this Contract which are defined in the Basic Agreement shall have the same meaninzs as in the Basic Agreement. If any provision of this Contract shall be in conflict with the Basic Agreement, the Basic Agreement shall be controlling unless this Contract expressly provides to the contrary. Section 2, The County and the City hereby covenant and reUresent that each of them is authorised to enter into and to be boon; by tnis Project Contract and to do all of the acts and things and to perform all of the obligations undertaken by each of them pursuant to the Project Contract and the Basic Agreement. • ctiuh 3 t The yo C' t tiri�,ya.hd the city hereby agrees to 'oet�ate in br.3V Aihq' and flnancir P cettain- Housing Pebjeotd legated within the Corporate boundaries of the City described acid located as follOWs t Dade ,3Y-2 Fit'ty unit medium -rise for the elderly to be located on the Southwest corner of N.W. 2nd Street and N . t'1. 3rd Avenue .(Also known as F129-0012-005) Dade 8-5 Seven townhouse units for families to be located on the East side of N.W. 12th Avenue between N.W. 53 and 59 Streets. (Also known as F129-0028-005 ) Dade 8-6 Seventy-five unit medium - rise for the elderly to be located in the Little Havana area on the South side of S.W. 1st Street between 9th and loth Avenues. (Also known as F129-0028-O0b) Dade 8-7 Twenty-four units for families located on the East side of Douglas Road between Day and Oak Streets. (Also known as F129-0028-007) the "Housing Projects." Section 4. It is estimated that the total cost to the. Counaty.of providing the Housing Projects, including financing casts, shall be Three million, nine hundred and two thousand DOLLARS (w3,902,000). The County agrees to undertake, carry out and complete the Housing Projects in accordance with the plans, specifications, contracts and other contract documents approved by the City, as ex- peditiously as practicable. The County further agrees that it shall issue its revenue bonds (herein called the "County Obligations") in the principal amount of $3.902,000 to pay, with other funds available therefor, the entire cost of the Housing Projects. In addition, Federal assistance through an annual contribution of $5 74,'a'1O• will be provided for the Housing Projects by contract with the United States Department of Housing and Urban Development through the Section 8 program o+' the Housing and Community Development Act of 1974, the d' ttht / ih t irra f .th41116.ilsir g Projects and to indreaSo the sed►.trity at-ti marke ability of the County Obligations, the City, pursuant to the paid Areetent and this Contract, hereby cjven,ants and agrees to proVide City Assistance for f'inancin:_ the Housing Projects through the use oti proceeds of City Bonds as herein broviued. A$ City ponds are issued and sold by the City from time to time, the net proceeds thereof remaining after deducting all costs and e rpenses of or attributable to such issuance and sale shall be paid into a trust fund or other earmarked account established in a bank or other depositary by the City and shall be held, administered, invested and reinvested by the City for the purposes provided in the Ordin- ance, the Basic Agreement and this Project Contract. Earnings and profits derived from such investments shall be credited and losses shall be charged to such fund. Section 6. From the monies paid into such fund, the sum of shall be made available by the City as City Assistance to assist the County in financing the Housing Projects. Such sum shall be transferred by the City to the County contem- poraneously with the deliver;,- by the County of its County Obligations and/or the receipt by the County of the proceeds of such obligations. Such transfer shall be effected by the payment or deposit to the credit of the Special Housing Fund as provided for in Section 501 of the Trust Indenture for the County Obligations which will be adminis- tered by a trustee or other fiscal agent to be appointed by the County pursuant to a trust agreement, ordinance or resolution, executed or adopted by the County securing the County Obligations issued for the Housing Projects. Such fund shall be held and administered by the trustee or fiscal agent as additional security for the County Obliga- tions issued or incurred for the purpose of financing the Housing Projects and shall be held, administered, applied or otherwise used for the Housing Projects in the manner and for the purposes provided in the 'easic Agreement, in this Project Contract and in the aforesaid 3?1,915 ut,hot'iz in the •use �y 11. r+ �.y Y�uA . � i �' - in the b 'o�.�i d ioh o the Hous Irv; L-1 o�j �� uSO Y h f Ond to aSS iS , edtioti 7. Zn addition to the City Assistance pro Tided t{ t' l.n Se tiob 5 and 6 Of thin Project Contract, the County and pity agree to pledae their# shares of PitJOT from County -owned public housing, in Manarerttent a5 Of December 31, 1976, and to pled5e the entire PILOT ft'orn the Housing' Projects until such time as the PILOT Cxcrow Fund, established in Section 501 of the Trust Indenture, equals of exceeds an amount equal to one year of debt service on the County Obligations as provided for in Section 502 of the Trust Indentures In WITNESS WHEREOF, the CITY OF MIIAMI, FLORIDA, has caused this Contract to be executed in its name and behalf by its Mayor - or Vice Mayor and its official seal to be hereunto affixed and attested by its City Clerk or a Deputy City Clerk thereunto duly authorized; and DARE OOi:NTY, FLORID., has caused this Contract to be executed in its name and behalf by its Mayor or Vice Mayor and the official seal of the Board of County Commissioners to be hereunto affixed and attested by the Clerk or a Deputy Clerk of said Board thereunto duly authorized as of the ATTE. 3T : City Clerk (CITY SEAL) ATTEST..; day of , 1977. Clerk of the Board County Commissioners (COUNTY SEAL) CITY OF MIAMI, FLORIDA ADE COUNTY, FLORIDA P I NANO 1 APLAN FOR SECTION 8 HOUSING MAGI'S CITY OF MIAMI i0c6irdante with tedtion 9 of the Agreement for Finantin§ Flbusitig if.tl 41if Miami by and between Dade County and the City of MiaMi, dated JUiy 19, 1976, the following data constitutes the Financial Plan for the do,tr'eIbprnent of four housing projects consisting of 156 units. illustrated in Exhibit "A", the annual total project income for the projects totals $550,883., which is more than necessary to meet both projected operating expenses of $220,282 and debt service of $321,915. The slight,projectcd surplus of $8,686. would be deposited into the Redemption Account, in accordance with Section 503 of the Trust Indenture. Included in the bond issue will be a debt service reserve account equal to one year of debt service. the intention to request proposals for the design and construe; ion' of the projects. Bid proposal documents, containing minimum' ysical requirements, have been prepared for each of the four projects, and have been approved by the City of Miami, and by the S. HUD on February 24, 1977. These minimum requirements define the', building type, unit size and distribution, equipment schedule, utility; combinations and other similar improvements. /` As shown on Exhibit B, the County expects to pay $3,198,000 for the acquisition of the four housing projects. the maximum net interest cost anticipated to be incurred by the County on the County obligation is 7 , the Project Contract for the four housing projects, consistent with this Financial P1an,will be prepared and submitted for approval and execution for and on behalf of the City and the County. k) A payment in lieu of taxes (PILOT) will be paid annually based upon 8% of the annual rental income collected, including the Federal Housing Assistance Payments. The City of Miami will receive its pro-rata share of the total PILOT, or an amount equal to approximately $13, 400. however, in accordance with the Trust Indenture and Project Contract, the County will place the total ,PILOT into the Pilot Escrow Fund, until the fund equals one year debt service on the County Bonds. lNANC!AL PLAN FOR 3EMON A HOUS114 PROJEM CITY OF MIAM| rd6Mt'd with Section 9 of the Agreement for P11hehdM§ HbUs^hg "M thet ' � ~ iam� and between bade �oun�y and the �"�V of 4^ �m�, da��� vty �f 1� � ^ �..� Jul / lq� 1 76, the fbl lowing data Con5ti1utes the r1hand61 Plan fOP thd`�'' -d|Velopmgoi of four housing projects consisting of 156 UMlt5, ' ` ' ~ j; ^ ' ` 'Illustrated in [nhY6\t ''/Y/° the annual total project income for /. , "',��I''the pro^ects totals $550^883., which is more than necessary to ^` ^ neet both projected operating expenses of $220,282 and debt service of $321,915, The slighL^proJecLcd surplus of $8,686. would be deposited into the Redemption Account, in accordance with Section 503 of the Trust Indenture, �' ^ ^.|ntluded in the bond issua w! I be a debt servi cc rmservei accoun t oqua1 to one year of de6t serv'icm. '^ ]t is the intent ion to request proposals for the design and construc- tion of the projects. Bid proposal documents, containing minimum ' l h b d f h f h [ ' physical r�qu requirements, have been prepared for cacti o the four ` ' .` `projects, and have been approved by the City 'of Miami, and by the ' U, S. HUD on February 24, 1977' These minimum requirements define the ' 6u| ldYn8 type , un| t s i zc and di sLr|but ion , equ ipnent scheduie, ut i l i ty .' ,,combinations and other similar improvements. ` ` � ~ - _ - ~_ - - _ 1101 III 111111111111111111M II It estimated aggregate amoUht of bonds to be issued ii1 connection x - h the projects will be $3,903,000. This figure i§ based on the projected total development costs, which are illustrated in Exhibit "But The U.S, Department of Housing and Urban Development had approved these projects and assistance under Section 8 of the Housing and Community Development Act of 1974 (42 U.S.C. 1437). Assistance in the amount of $321,915 is needed to support the financing of the housing project. This assistance is equal to one year of debt service and must be made available to the County prior to the sale and delivery of the County bonds. The total estimated Operating Expenses for the projects is $220,282, pet year. This is based on experience in the operation of similar rojects. Exhibits "C-1" through "C-4" illustrate the projected i►icome, operating expenses, and the net amount available for debt service for each of the four proposed projects. The estimated annual amount required for the payment of debt Service on the Revenue Bonds is $321,915. The County expects to issue 30 year revenue bonds at an interest rate not to exceed 7, During the first two years, interest only will be paid. The bonds will be amortized over the remaining 28 years. 111■11t11■III As shown on Exhibit11 Bi, the County expects to pay $1,198,000 for the acquisition of the four housing projects, the maximum het interest cost anticipated to be incurred by the County on the County obligation is 7%. The Project Contract for the four housing projects) consistent :with this Financial Plan,will be prepared and submitted for approval :lid execution for and oh behalf of the City and the County. payment ih lieu of taxes (PILOT) will be paid annually based upon 8% of the annual rental income collected, including the Federal Housing Assistance Payments. The City of Miami will receive its pro-rata share of the total PILOT, or an amount equal to approximately $13,400. However, in accordance with the Trust Indenture and Project Contract, the County will place the total PILOT into the Pilot Escrow Fund, until the fund equals one year bf'debt service on the County Bonds. iiiii■t■■iiiiiiui■uuii 110 L.tininus R1vetslde 6othhUt 6t-bvd FkdE:1 ti lI Y DEVELOPMENTS N 0P BR. CONTRACT ANNUAL OPERAtIN6 'RODE, UNA 1-5 SIZE RENT INCOME EXPENSES 30 0-BR $277 $ 99,720 20 1-BR 295 ) 70,80o $ 71,556 45 0-BR 277 149,580) 30 1-BR 295 106,200) 107,334 16 3-BR 339 65,088) 4-BR 391 37,536) 32,034 43-BR 339 16,272) 3 4-BR 391 14,076) 9,358 Less: Reht Loss 559,272 3,389 Total Project Income 550,883, Less t Operating Expenses inc. PILOT & R.R. Net Available for Debt Service 'Amt. Needed for $3,902,000 $220,282 330,601 321,915 urplus = $ 8,686. 11 k�� o�� ' .r' Special Housing Revenue Bond ~ City Developments Series A USE OF PROCEEDS = Lummus 50 Riverside 75 Coconut Grove 24 Model Cities 7 Subtotal City 156 Acquisition of Projects � 18,500/du 925,000 S 18,000/du 1,350,000 30,000/du 720,000 29,000/du 203,000 /'5 3~198,OO[ Debt Service Reserve ' | 321^915 Net Interest During Const. 917,56C ^ 7,OO{ Prepaid Insurance � -- '���.��`'���� Bond Counsel � � ' ' ' ' ' 7,31S Financial Advisor ' ' 9^755 Other Issuance Costs | ) 7,805 Development Administration 62,40O Construction Supervision ' 4D~000 Dwelling Equipment 19,000 28,500 11,800 3.500 | | 6%` 8DO Ma,intenance Equipment 10,000 18^750 7,200 3,100 31,0500 ,Operating Reserve 12,000 18,500 5,000 1,500 3/,000 ' ~ N � � III 11 IIIIIIIIIIIIIIIIIIII N � U � � 1111 N 1111 � Construction contingencies U U n |� | �� TOTAL 1111111111 11 S 3,889,625 \2,4OO S 3,952,000 C m�iiii�illillillll III 1111 111111 11 1111111 ` III 11111 $ I c • i • Propted/Projedt 1464 lummus Pt!pject Income.: Uhit Size 0 BR BR Operating Expenses: FINANOAL _PLAN P1 29.0012-005 50 uhits for elderly No1 of Uhts PUM Administration $ 15.45 Tenant Services 3.96 Supplied Utilities 24.00 Ordinary Maintenance 29.86 General Expenses 13.19 Renewal/Replacement Fund - 12.00 Pilot (8% of T.P.I.) 20.80 Less: Total $119.26 Contract keit 277 295: Annua 1 Income $ 99,720. 70,800. 170,520. - Total Project Income $167,962. Anhual $71,556 Amount available for Debt Service $96,06. tiOXJ*6M AuthQrsty 17.0'.,520j owilqtit6liqloom(otk! riNANCIALPLAN 'posed/Project Noa f~1 29-0028-006 Riverside Project Income:, Unit Size 0 BR 1 BR: - Operating Expenses: No, of Units 45 Administration Tenant Services Supplied Utilities Ordinary Maintenance General Expenses Renewal/Replacement Fund Pilot (8% of T.P.I.) tohtraot Rent 277 295 Atthue 1 Income $149,580, 106,200, 255,780. Less: Rent Loss @1.5% 3,837. =,Total Project Income $251,943. PUM $ 15.45 3.96 24.00 29.86 13.19 12.00 20.80 Less: Total $119.26 Annual t}a: ; Amount available for Debt Service �_..���f;..,,`ti�ij�:�����..._r.......,-- $144 , 609 u Pra osr3d/F roject No Coconut Grove Project Income: Unit Size INAUCIAL PLAN,_ F1 29-002C-00/ _ 24 Units for farm t; its Not of UNias 3 BR 16 Operating Expenses: Administration Tenant Services Supplied Utilities Ordinary Maintenance General Expenses Renewal/Replacement Fund Pilot (8% of T.P.I.) PUM $ 15.45 3.96 5.00 36.62 13.19 12.00 25.01 Less: Total $111.23 Amount available for Debt Service xlmwm Contract Author.it COhtraet Refit 339 Annual Indomr $ 65,088. 391 37,536. 102,624. Less: Rent Loss 0.5% 1,539. Total Project Income $101,085. Annual $69,051. f 11111111111■■II ■1•111 FINANCIAL PLAN Pfbposed/Ptojeet Nit * P1 29-0026-005 Model City Project Income:, Unit Size 3 BR 4 BR Operating Expenses: 7 Units for family Not Of Units Administration Tenant Services Supplied Utilities Ordinary Maintenance General Expenses Renewal/Replacement Fund Pilot (8% of T.P.I.) Less: Total PUM $ 15.45 3.96 5.00 36.62 13.19 12.00 25.18 'Contract 339 Annual h, come S16,272. 1 it 14,076. 30, 34$. Total Project Income $29,893. Annual_ v i ce =,r. , y;.f; : wa 4Y $ 2 0 5 3 5 Amount available for Debt Service � rti, �� .�: rw �?,,