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HomeMy WebLinkAboutM-76-0886CITY OF MIAMI. FLORIDA IN?Elq-CiFFICE MEMORANDUM 45teph f. GraSsie t y Manager Charles L. CruIptoh assistant City Manager DALE. OCT 5 re tII_1: Third Year (1977-78) Community Development Program ht:FE RENCE8: ENGLOSU ES: mikaoalairamor City Commission Agenda October 14, 1976 The purpose of this memorandum is to enable the City Commission to establish policies for the third year Community Development Program, specifically in the areas of housing, target area al- tocations, social services and economic development. .This action will enable staff to provide technical assistance bo residente of the CD target areas within the parameters estab- lished by the Commission,, as well as providing a planning structure.: 'to maximize the impact of CD funds. Crlclosed find the following information: I.e. Alternative Budget proposals for third year CD funds. Explanation of funding priorities, :A.detailed explanation of the questions raised on hoti .f by the City Commission. der the alternate budget proposals, we have offered three alter atives for Commission consideration: `Alternative A -- Would provide funds in the .land acquisition for housing, resulting in t ..approximately 320 units. :This aiternativc: would give target areas an amount similar to what they received during the second year program, in addition to land acquisition funds which will be programmed within target areas to some extent. Alternative B --- Provides for $1.5 million in funding for land ac- quiei.tion fur ho�7ing which would support approximately 160 units. ,Target areas vcui3 receive approximately $2 million more in funding tiley received last year. i tcrri��..iv_ C -- Shows no funding for land acquisition for housing n,d.woalt? hav' 3c rious implication in that no funds would be available 'Support_ t;l'^ dousing Bond Issue passed by the residents of the City i.s estimated -that to support 10.00,units of housing, acqui.Otion lclid W211 l:un o or $9 million, /v /I.i t�rii1. N) amount of $3 million for he ability to construct tyMatYager is reuomfnehded that the CurhMissioh be requested to approve tethative A which provides for a reasonable amount of money .to support the housing Band Issue and still gives adequate fund-. itg to target. areas. This recommendation assumes participation by Dade County in the housing program. (Because Dade County is still in the budget process, final dollar figures are not available. Dade County has funded the total amount allowable under Federal law in the City of Miami under CD in past years). Approval of Alternative A will insure the success of the Housing Bond Issue and will provide an orderly approach to third year CD funding. d Adquisition for Housing 4.Approximate number of units resulting L. Target Area Allocation ,-Social Services 10% of Target Area Allocation Air tiVs1A:,.1V. Ati_i0 . PROPO5At6 A. 3,000,000 320 4,634,000 1, s00, 000 160 6,134,000 (403,000) (633,000) (763,000) 0 0 ,834,000 200,000 200,000 300,000 3. ttonomic Development 'C. 600#OOb 500,000 500,000 4. City-Wide�'zojects ,���`��v��«(,, ,`,r+;`�";:<,�,,_: y� .700 000 560,000 660,00 5'. Contingencies `~. r�'nJ���<ly;�;;,��;';': '-"' ';�,' Administration (Includes assistance to other City Departments) TOTAL GRANT r~oun'�Y top participate artici. ate in land acquisition program. a iding not known at this time. See Attachment A. 600,000 ;:9,694,000 PXp1rAt3Arto't or'_ Fd:3bIWG ?r,tbR T>:1J5', dhd a.0q iitition for Housing bhe of the primary goals of the Community Development ptograifr &S didatlY - tpelled out by Federal guidelines, is to remove blight and use ufidetdtii°ra lied and vacant land in building better neighborhoods. The purchase of land for housing with CD funds ie a valid and necessary activity in aohiet=, ing this objective. Since available public lands are presently inadquate to meet forthcoming Federal housing subsidies for low and moderate income persons, it will be necessary to allocate CD funds for land acquisition purposes. In addition, the land to be acquired will directly complement and bring into fruition the $25 million Housing Bond Issue passed by City of Miami residents. Using recent, typical land acquisition costs within the City of Miami for family and elderly public projects, an average, per unit land cost of $9,300 was developed (see Attachment B). Although land costs vary greatly, this average figure ($9,300) can be used as a Measuring stick to estimate the necessary dollar allocations given desired production goals. The alternative budget proposals show the approximate number of units that Could be accommodated with land acquisition allocations ranging from $0 to $3,000,000. Target Area Allocation Residential Target Areas - It is recommended that funds be distributed to residential target areas using a formula allocation based on 21 urban in- dicators from the Miami Comprehensive Neighborhood Plan. These indicators include income, household characteristics, employment, housing condition and assorted socio-economic indices. Use of this type lts in an equitable distribution of funds to areas which are all in need of assistance. Downtown Target Area - As use of the urban indicator formula results in a low level of funding for the Downtown Target Area, and as infrastructure improvements in this area could result in private sector development activ- ity, it is recommended that a discretionary fund be set aside to fund viable downtown projects. This fund will be sufficient to allow the City to under- take projects which will have significant impact on the redevelopment of downtown. Social Service Funding - It is recommended, following the direction of the Commission as expressed during the second program year, the funding of social service programs in Community Development target areas in an amount up to 10% of their total allocations if: The social service program is related to ongoing Com- munity Development physical improvement activity. There are no other funds available as evidenced by appropriate turndowns of funding requests. The program is located within a Ce:~unity Development target area and serves only residents therein. the db ptogtam is designed fOr physical itproVeteht of heighbOthoods, this level of funding, combined With the proVision of social serVidet tregft Federal eVenue Sharing fUhds, is deemed adequate, teonOMic Development These funds will provide for staff and related expenses necessary tito the establishment of this ptogram. Program ditector and staff will develop and implement an Economic Development Plan for the City, that will pursue dual objectives: 1) local and neighborhood commercial revitalization and 2) special projects that will stimulate international investments in the Miami area. It should be noted that Community Development funds can only finance the local portion of the Economic Development program, i.e., those activities that will benefit low income residents of blighted neighborhoods. The U.S. Department of Housing and Urban Development recommends the use of Economic Development Administration funds for broad scale revitalization efforts. 4, City -Wide Projects C) Several Community Development activities address needs that exist on a multiple target area basis. Specific projects identified thus far are: • Tree Planting Program - It is recommended that the City start a tree planting project in those areas that severe- ly lack greenery in Greater Miami. A distance of 40 feet between trees has been recognized as the standard because this spacing lends itself to a more serene environment. Third year CD funds can begin this program. Demolition of Deteriorated Structures - Approximately 150- 250 unsafe and deteriorated structures can be demolished in the City. This will help remove extremely dilapidated buildings that invite blight into a neighborhood. Removal of Architectural Barriers to Handicapped - It is 'estimated that one out of every ten persons in the City of Miami has limited mobility due to a temporary or permanent physical handicap. The City's expanding population of older persons is increasing the number of citizens with limited mobility every year. Funds will be made available to make selected City -owned buildings accessible to the handicapped. Contingencies/Local Option To be used as source of funds for unforeseen costs resulting from the execution the Community Development program. Possible areas for such costs are; kelodation costs associated with land adeldititielh tot housing sites Unforeseen increases in costs for such projects as StrOdt iMprovements, etc. • Special studies or consultant services, Additional funding for second year projects. 4 Matching funds for other Federal grants. • Additional funds for City Bond Program projects (parka for people, etc.). 6 Administration This amount includes funding of CD staff, assistance to other City DepartMents for the execution of CD projects and general operating expenses. This figure represents 6% of the Cityls 8ntitlement funds, which is below the national average of 8.9%. rt4-k ti 4i41 oil toUptHOUSt h�ii44N1, i-L.OhlbA 3313t 'Mt.! StO-5111 a. tt . Dena Spillman. Adtinittrator Community Development City of Miami Office of the City Manager 5298 Mary Street #1 Miami, Florida 33133 1M'1;04,4A., '4.4.0. 1 .)t. ; M Il i Y� trASN.M4 f;f.& Dear Dena: I have received your letter of September 13 requesting an early county allocation of housing land acquisition funds for support of Section 8 housing in the City of Miami out of Dade's Community Development allocation for the third CD fiscal year. Since the County's third year CD planning process differs some- what from that of the City of Miami, I would like to explain why we cannot at this time allocate any third year CD funds for Specific activities. In our third fiscal year planning, we have established two parallel planning processes. At the countywide level, we invited Concept papers at an advertised public meeting on September 1, held jointly with you. We are analyzing the concept papers received and, with the assistance of the County Department Head CD Advisory Committee, we will work with project sponsors to submit a full proposal on October 5, the final public meeting on Countywide projects. At the target area level we are working with neighborhood residents in local public meetings to develop plans for their areas by November. Luring* December, we will review all of the project proposals from the two parallel planning processes and develop staff recotr►- mends+:ions, with the aid of our Department Head CD Advisory CoraritL:tre. After follow-up discussions with you and the City of iiiale%h, we make final staff recommendations in January to the County Manager. We will then conduct a final round of neighbor -- hood public meetings the same month to receive public reaction. orrice Or COUNTY MANAGER • September 16, 1976 i t r • Donn gpillmttn nootembtr 16, 1976 rage Two Atterr• differences are reconciled, A draft application will ubli be tubflitted to our board of County Comm tearing and Commission action. Following this process, the earliest date wedo canoestablish for staff recommendation is December, 97 6. We to establish allocations or set asidesfor andirecommendations :we have had the benefit of citizen opportunity for participa- tion in order. to allow the public maximum tion and input, We are hopeful that our planning timetable will not adversely affect your schedule for oor`erationrd year exhibited bylanning and ourthat twoecan officeour continue the excellent cooperation 3.s in full support of .I to date. Please know that Dade County City housing bond issue and will do all possible to assure its continued success. Sincerely, Sergio Pereira, Coordinator Office of Community Development • prepareas a response to key housing questions e following memo was p held urin and following the City Of Miami's Commission meeting xtaised d g a , September 9, 1976. The information presented herein was on Thursday, and prepared in coordination with Dade County's Department of Housing Urban Development using the most recent available data. SinCe the passing of the Housing bond Issue and the initial Federal Development of 500 Section 8 units, the Office of Community allocation resent finis Little HUD have been attempting tc assess the potential of P )and future housing opportunities within the City. Some 15 sites haye been tentatively selected and submitted to HUD's Jacksonville Area Office. rioritized Yn addition, over 60 sites are presently being studied and p forthcoming Federal allocations. to achieve latitude of choice in in addition to unit size and :Prototypical land and construction costs, p what the Housing project design have been prepared to better understand Bond Issue is providing and the additional funds that will be needed to achieve its goals. 'Specifically, the following topics provide detailed answers to the cues- axons raised: The initia l 500 units. On May 18, 1976, Federal HUD made available £ands to subsidize 500 Section 8 new construction units. The following ble provides the distribution of this initial allocation. s meeting map, are distributed Site # pho tireOdowh == tatvet. (eta. ) type of Stall Large Handi wx-- Ar9A (To 1'40) WAtitA struchure tiderly FaMily FaMily capped ;g_— _ Culter (51. NW 5 & 6 Sts. and townhouse NW 4 4 5 Ayes, CulMer 62 NW 5 St./NW 6 Ave. Hi.,Rise Culter 01 NW 19 St./5 Ave. Townhouse Allapattah 04 NW 17 & 18 St/ Hia,Pise NW 9 Ave. Model Cities 05 NW 12 Ave./58 St, Duple Little Havana 06 SW 1 St./9 Ave. • Hi -Rise Coconut 07 bay Ave. to Percival Townhouse, Grove to Oak, east of Doug- Duplex & single las Rd. Family TOTAL 18 54 100 100 These sites, with their proposed densities and household types, have been submitted to Federal HUD for. their approval. A response is expected within a month. 2. Other sites submitted for preliminary Federal approval. In addition to the sites for the initial 500 units, 9 parcels capable of housing approximatel 278 households have been submitted to HUD for their preliminary approval. The City and Little HUD have already received a positive Federal response as to the appropriateness of these sites for housing. The sites were submitted prior to any Federal allocations in order to accelerate the site selection process once new subsidies are announced by the Department of Housing and Urban Development. lhese additional sites, which are shown in the attached in the following way. See Attachment A), 2 rr iv'1"1':; iia'_':.': A ite # Type of `,fer S1Ze Existing Proposed Housing Proposed I.roi.'sed Estimated Map Location (Acres) Zoning Zoning (Proposed) it of Units Density Total Cost 3 i cst of NW 2 Ave.,/ i3/Acre $ 120, OOQ 47-48 Sts. 0.92 C-4/R-2 R-2 Family12: .-... : 9 East of NW 2 Ave/ 52-53 Sts. 0.98 c-2/B-2 R 2 Family 14 14/Acre $ 80,000 10 West of NW 2 Ave.,/ 11.5/Acre $ 114,000 52-53 Sts. 1.38 C-2/8-2 R 2 family 16 -NW Corner 1 Ave. 44 St. .82 t 2 R 2 Family 12 14/Acre $ 61,850 ,. � t 2 SE Corner 1 Ave,/46 St. _ .33 Family 12/Acre $ 35,000 -2 fi t y 3 Approx. 131 thru 2ipprox. p/ cze $ 275,000 163/NW 77 St. r -3 : Fam11y ' 4 Nursery bounded by NW 15 Ave. 18 St. Rd. & NW Approx. ly & 19 Sts. r- 5 R-3 15 SW 17 Ave/SW 4 St. 1.2 ]-4./C-4 R-4' 1. 534-564 SW 1 St. 1-32-4fC-1'_.4 S 13.93 Sstimated Cost per ArAcre- - 144.438 7,237 ; m Estimated Cost per ",Unit - 10/Acre $ 500,000 -58/Acre $ 294,615 58/Acre $ 531,550 $2,012,015 n�li�Ftiiilui�4ilGr:i4�i6ifialill�solilif�+YLi9'itf�gji��,6dei�suea,�±r�t�^ri i��r * p041ytypes„0f....nst uctu.f,es_,,..buil.t.. by,.,Dad_e..,_Co_unt.y,`_s,w=HU . This sectibn iS depicted by graphical material representing the types of projects that haVe been recently developed by Little HUD. Included are site and unit plans, schematic drawings of different projects and photographs of:some.of the most recent developments. As can be seen, the graphics portray both hi'rise elderly units and low-rise townhouse structures for family households 4. Typical size and square footage of.family and elderly units. The proto- typical square footage for different household types is as follows: A) For elderly units, using Jack Orr Plaza (Project 5-41) as an example: Efficiencies -- 400 Sq. Ft. 1 Bedroom -- 550 Sq. Ft. For family units, using the Goulds Townhouse Development (project 5-40) as an example: 2 Bedrooms -- 3 Bedrooms 4 Bedrooms -- 680 Sq. Ft. --1140 Sq. Ft. --1370 Sq. Ft, rpical acquisition and construction costs for previous developments the City of Miami. A) acquisition costs. Section 2 estimated the acquisition costs for those sites which have been tentatively submitted and approved by..the-De- ,pArtment of Housing and Urban Development. The estimated acquisition .cost (including relocation when necessary) was set at $144,438 peracre -i.diile the per unit cost was estimated at $7,237. Using these figures, the acquisition of sites accommodating 1000 units will run over seven (7) million dollars. In addition, acquisition costs are now presented for sites which have Pent11 acquired by Little iIUD...-.(Sce Attachment D), been ‘F4 ' Project Culmer village Culmer Project (5-49) IAison Park Project 15-56) 'Type of Housing Family Family Family Elderly Coconut 'Grov4 vsamilY s Elderlyl .$1,120,000 ATTACHMENT B Cost per Cost per Acquisition Cost # of Acres # of Units Acre Unit $1,140,000 8 Approx. 85 $143,750 $ 13,500 $1,640,000 $ 480,000 ' 13.86 151 $118,326 $10,850 112 $127,660 $ 4,300 ($3,900-elderly) ($5,000-family $165,926 $ 9,000 ($ 7,180-elderly) ($16,750-family) t eri be sash, the acquisition east§ very greatly depending en tip: 2bhing, present use and future possibilities Per Uhit cost for elderly and family units implies the loca- of the site. The average a total land acquisition coat Of over nine (9) million dollars for 1000 housing units. 0) Construction Costs. The following projects are construction costs for units it ale built by Little Project (5-49) in Culmer. 151 Family townhouses of 2,3,4 & 5 bedrooms in 13.86 acres. e Average construction cost per unit e Gross square footage .. Dwelling Construction $3,065,797 s With site improvements = $ 642,523 Project (5-60) in South Miami 58 Family townhouses of 2,3,4 & 5 bedrooms in 6.57 acres. - Average construction cost per unit. - Gross square footage - Dwelling construction = $1,328,676 - With site improvements = $ 249,324 Coconut Grove Elderly Project. • 100 Elderly units in a Hi -rise structure Dwelling constructions costs,in- cluding site improvements HUD. Proposed "Dade (8-1)" Section 8 Project - 175 Elderly units in a Hi -rise structure Approximate gross square footage Dwelling Construction = $2,371,200 With site improvements _ $ 405,600 examples of average ▪ $ 24,060.O0 • $177,072 .00 +� $ 17.24/sq.ft. • $ 20.85/aq.ft. $ 26,347.00 • $ 70,376.00 = $ 18.88/sq. ft. $ 22.42/sq.ft. $101,000.00/sq.ft. $ 23.50/sq.ft. $ 27.50/sq.ft. construction costs do not include architects fees, dwelling equipment, Counsel, project maintenance equipment interest during construction etc. 1 these additional costs will add approximately another $10 per square £c, f new construction projects. Selection of the sites for the initial 500 units. The letter from the li ted States Department of Housing and Urban Development notifying the City 6 e the County of their subsidy allocation for S O units arrived with a ab day deadline. Within this time the reCipienta of the alleeation had tC submit proposals showing the sites to be used in addition to demonstrat- ing control over these sitee. The ma)ority of the selected parcels were already under the ownership of Little HUD. Land had to be purchased in only two of the sites. But, the purchase of these sites had already been planned and discussed with city officials and funding was readily available. The residents of the target areas where the land was to be purchased had already been informed. Control+ therefore, could be easily demonstrated. As such, the City and Little HUD had to proceed with those sites that were available or could be 'readily obtained within the 35 day deadline. Other Mites (see section 2) were discussed and presented as possible alternatives one of the Culver sites which City personnel felt might overimpact the rea. Unfortunately, the money to purchase these properties was not avail-- ble within the specified time frame. The alternative locations were, tleverth•eless, submitted for HUD approval as possible housing sites for future subsidies. Most of the land owned by Dade County HUD has been consumed. Future sub- %ay allocations will require the purchase of housing sites. The.City of ani, in keeping with the goals of the Housing Bond Issue, should make that land (or funds to buy land) is readily available to effectively pond to any future subsidy allocations. Ar;l.icable Federal law on occupancy. Housing constructed under the Issue within the City of Miami cannot be restricted to Miami residents Under Federal law. The occupants of these units will therefore be selected ;' x.ou+ Dade County's HUD public housing list. , • '4. * * .•t 4, l•,.. IhstIti 40.• v1,p4,4 wit f:F.GIC.44 IV 141141.1t1114 IPS:011 PtethIrttSup. N. Attiee..6.tik 30300 gt I Nit.,14 Mdivin J. Adarob Executive Director Dade Count Dfla 1401 V.W. 7th Street Miami, Florida 33125 Dear Mr. Adamc: 6 Subject' Amended Not 7129-0028 f;:JACKtOliVIL LI ta•Ai). PPIINSUI1 rLA7A 661 ItIVI:FISWE AlCSUF. JACK&ONVILlt, FLORioA 32204 :14Nt 16, 1976 E.VC.LuPtAtEr•iT toll. 07 1;005 ification of §Und Availability Dy this letter we hereby amend the. eubject Notification to Fund o available: V1,859,286.00 Sub-AllocaVden ard oC mito: 0101/02 Elderly Fa;aily Larce Family :474,rfl 774.0) 62,45.00 C622,c6o.o0 250 Unite 150 Units 1001/hits fler#6, Iliket.:! to, 4644in read' 4hocerain3.1y the deadline date for receipt 'of preliminary propos:0.s is extended to 35 daya from the date of this Notification. In addi- tion, the bedroom diotribativn reflected in :the Developerspacket should be doubled for each cate3ory. Should :Nu have any questions, please contact use Sincerely, I \ !• I • , B. \.. Bur;'xirk. Area Director 1 cc: honorable nanrice A. Ferro Yazior of the City.of Xiomi P. 0. Box 330-708 Miami, Vlorida 33133 • • • • , I 4 *, • .•, 11 .,..;,!,.,!,1 :i1.;i''..f.Y1 • °.' .C•4.,ralLiali.:17[. • ',..f I' 1 •'•,, • .1k-•' I; '6 .6. • • 66•646 A.: • .66. 11!1:41: 6 fa& .. Oil i rc; ti.ra.kg. tr,,,teli 111' :Tr/ • V2.0'61;1211:::1:: 1401 N.W 7th Street brj2 2,50 - Riverside Station 1illan4 Florida 33135 6494,521 Department of HOUSING & UR13AN DEVELOPMENT ' t OP= OF DIRECTOR Charles Crumpton, Ats't. City Manager for Community Deveropment, City of iaii,., ' P. O. Box 330708, Miami, Florida 33133 Dear.Mr. Crumpton: This replies to your letter of June units of Section 8 housing. As I indicated to your staff, wo arc concerned that if we fail to submit projets for 500 units of housin-g to HUD by its Juno 22 deadline, We might lose some of the units.. Therefore, we are:submitting projects for all of the sites. We estimate that it will take HUD four to six weeks to re- view and act upon our proposals.. During t'his time we and you can review alternative sites to the six acres located along NW.Sth and Gth Streets. If feasible alternative sites.. are available, it is my judgment that there would be no Fed- • eral problems in changing the site.!' We will develop some plans which show mixed residential and commercial uses for the commercially zoned land along NW 19th Street. We would then wralt to discuss with you the financial implications and how these could be handled. • 14 concerning the SOO Sincerely, r1 Melvin J. Adams 11 ,, • . • rr Detailed 'Matrix (Staf ) Evaluation 4 Survel, HExzet rost Location of Pos- sible Site ate °appropriate Site Appropriate Eminent &orlin Willing Ipwrier Onwer Ownership Zoning --Water & Sewage Estimated Cost Estimated Size -Appropriate 2 Stop - Back to 1 Staff Recommends Site 1Proceectri, mission stating' Disapproval Site Inappropriate Site Federal Site Approval (L Disapproval IApproval Stop - Sack to 1 Proceed with Visual Site --Inspection --______-__ --____-__--_- Citizen Presenta- tion t input Proceed to Cour With Seller's Agreement Trial (usually By Jury) Judge Decides Settlement pocuTs2ntation of Appraisal s Neces- sity of acouisition 3 Strong Opposition 0 or Little Opposition Money Paid t tRCegistry of ourts____. -I_ j- ----.---1• _ Paid I- iltie Acuirelf -J to f',2,3iitryL of Cc.,Irts . Staff Re- views allin Site Appropriate Too High Price Appropriate Back to t Proceed with Si te Site ,appropriate • - ---- tSite Appropriate. Proceed with Site. Back to 1 12 Map Site Inspection ` e ta; le.d 'Matrix(Staff) Ewa1.uati:ant 4 Unit Survey Exact tort of 1;.'i 0fl t i on IRe l ncation rocation of Pos sate Site • • Ownership Zoning Water & Sewage Estimated Cost Estimated Size -2. Site Stop - inappropriate Back to Site Appropriate • Eminent Domain Willing Owne r Staff Recommends Site Unwilling Onwer 6 Proceed to Com-I mission stating Disapproval County Commission Site Inappropriate Site Appropriate Federal Site Approval 6 Stop - 3ack to 1 Proceed with Site Citizen Presenta- tion & input Disapproval} Proceed to Court With Seller's Agreement Trial (usually By Jury) Back to 1 Judge Decides Settlement • Visual Inspection 3 Strong Opposition No or little Opposition ffocurentat ion of --=Appra sal S Neces- sity of acquisition Appraisal Conducted 2 Ind. appraisers 9 Site Inappropriate Stop - Fack to 1 Proceed with ,Site Site Appropriate Staff Re- views again Site Appropriate Price Appropriate !Money Paid to Registry of Courts Site Inappropriate Proceed cud J\ rds — � or.-v P,.i ItO L Back. to !Title Acquired1 12