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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #18757 Date: 01/07/2026 Commission Meeting Date: 04/09/2026 Requesting Department: Department of Housing and Community Development Sponsored By: Christine King District Impacted: District 5 Type: Resolution Subject: Appropriate/Allocate - ARPA Program Income Funds Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO APPROPRIATE THE TOTAL AMOUNT OF FIVE HUNDRED THOUSAND DOLLARS AND 00/100 ($500,000.00) FROM AMERICAN RESCUE PLAN ACT OF 2021 ("ARPA") PROGRAM INCOME, GENERATED FROM THE SALES PROCEEDS FROM PREVIOUS SALES OF INFILL TWIN/SINGLE FAMILY HOME UNITS LOCATED IN DISTRICT 5, FURTHER ALLOCATE PORTION OF THESE FUNDS IN THE AMOUNT OF FORTY-NINE THOUSAND, SEVEN HUNDRED EIGHTY-EIGHT DOLLARS AND 20/00 ($49,788.20) TO RJ SPENCER ("DEVELOPER,") AS SPECIFIED IN EXHIBIT "A," ATTACHED AND INCORPORATED, TO BE UTILIZE TO COVER SUPPLEMENTAL CONSTRUCTION COST FOR THE UNIT LOCATED AT 5445 NW 1 COURT, MIAMI, FLORIDA, CURRENTLY UNDER CONSTRUCTION; FUTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, RENEWALS, EXTENSIONS, AND MODIFICATION, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY FOR SAID PURPOSE. THE APPROPRIATION, ALLOCATION, AND USE, OF THE FUNDS REFERENCED HEREIN ARE SUBJECT TO ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS AND THE RECEIPT OF ALL NECESSARY APPROVALS, INCLUDING, BUT NOT LIMITED TO THE CITY ATTORNEY, AUTHORIZING THE CITY MANAGER TO MAKE ANY CHANGES TO ADJUST, AMEND, AND APPROPRIATE THE CITY'S OPERATING BUDGET, FIVE-YEAR FINANCIAL PLAN, STRATEGIC PLAN, MULTI -YEAR CAPITAL PLAN, AND OTHER DOCUMENTS AS NECESSARY AND APPLICABLE, PURSUANT TO THE PROVISIONS OF THIS RESOLUTION, AUTHORIZING, RATIFYING, APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS BY THE CITY MANAGER AND THE DESIGNATED CITY DEPARTMENTS TO UPDATE THE RELEVANT FINANCIAL CONTROLS, PROJECTS CLOSE-OUTS, ACCOUNTING ENTRIES, AND COMPUTER SYSTEM IN CONNECTION HEREWITH. Background of Item: On April 1, 2021, the City of Miami ("City") issued a Request for Proposals ("RFP") inviting qualified private real estate developers to propose developments of single-family homes and/or twin homes on certain City -owned parcels of land (collectively, "Project"). On July 8, 2021, pursuant to resolution No. R-21-0281, the City Commission accepted the proposals received May 17, 2021, pursuant to RFP No. HCD 2021-03, from RJ Spencer and RF Construction Group. On September 13, 2021, pursuant to Resolution No. R-21-0352, the City Commission approved the allocation of American Rescue Plan Act of 2021 ("ARPA") funds in the amount of $137,639,417.00, which included an amount of $15,500,000.00 to the Department of Housing and Community Development ("Department"). The allocation to the Department included an amount of Two Million, Seven Hundred Fifty Thousand and 00/100 Dollars ($2,750,000.00) to establish a pipeline of new construction affordable housing projects, in which the Department would hire several developers to construct four (4) single family homes in District 4 and another six (6) homes in District 5 with the potential to add more. On January 11, 2024, pursuant to Resolution No. R-24-0009, the City Commission allocated an initial $1,000,000.00 from the total $2,750,000.00 allocated in R-21-0352 to develop single family and twin homes in District 5. Pursuant to Resolution No. R-24-0259, adopted on July 11, 2024, the City Commission approved the allocation of additional ARPA funds from the Department of Housing and Community Development, in an amount of 952,000.00 for the development of single family and twin homes projects, in District 5. On March 2025, RJ Spencer and RF Construction Group informed the City of Miami ("City") that the project's actual cost surpassed its original budget due to unforeseen events, specifically, economic fluctuations, supply chain issues, and changes in labor costs. On July 24, 2025, pursuant to Resolution No. R-25-0296, the City Commission approved additional funds, using the sale proceeds income generated from the sales of infill twin/single family home units located in District 5, in the amount of three hundred thirteen thousand seven hundred seventy-eight dollars ($313,778.00) to cover additional project costs. On October 30, 2025 the Department was informed by RJ Spencer that the approved first-time homebuyer for the unit located at 5445 NW 1 Court, Miami, Florida, has a disable child and there is a need to modify the physical structure of the original unit layout to accommodate the needs of the disabled child. The cost of the modification triggered additional expense in the amount of Forty -Nine Thousand Seven Hundred Eighty -Eight Dollars and Twenty Cents ($49,788.20). The City's ARPA consultant has reviewed the proposed allocation of American Rescue Plan Act of 2021 ("ARPA") Program Income and has determined that providing ARPA Program Income to supplement construction cost to advance the development of affordable single family homes, townhomes, twin homes, and condominium units in Districts 5 is an eligible use of ARPA Funds under the Final Rule, attached and incorporated as Exhibit "B"; and City's Administration authorize the City Manager to appropriate the total amount of Five Hundred Thousand Dollars and 00/100 ($500,000.00) from American Rescue Plan Act of 2021 ("ARPA") Program Income, generated from the sales proceeds from previous sales of infill twin/single family home units located in District 5, further authorize the allocation of portion of these funds in the amount of Forty -Nine Thousand, Seven Hundred Eighty -Eight Dollars and 20/00 ($49,788.20) to RJ Spencer ("Developer,") as specified in Exhibit "A," attached and incorporated, to be utilize to cover supplemental construction cost for the unit located at 5445 NW 1 Court, Miami, Florida, currently under construction. Budget Impact Analysis Item is Related to Revenue Item has NOT an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: Total Fiscal Impact: $500,000.00 Reviewed B Department of Housing and Community Development Review Completed 01/07/2026 1:56 PM Office of Management and Budget Luis Hernandez -Torres Office of Management and Budget Leon P Michel City Manager's Office Erica T. Paschal City Manager's Office Natasha Colebrook -Williams City Manager's Office Mabel Betancourt Legislative Division Valentin J Alvarez Office of the City Attorney Raymond Pereira Office of the City Attorney George K. Wysong III City Commission Nicole Ewan Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office Victor Turner Department Head Budget Analyst Review Completed Budget Review Completed Assistant City Manager Review Completed Approved on behalf of the City Manager City Manager Review Skipped Legislative Division Review Completed ACA Review Completed Approved Form and Correctness Completed Meeting Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 02/27/2026 12:40 PM 02/27/2026 1:49 PM 02/27/2026 2:01 PM Completed 01/29/2026 11:01 AM 03/05/2026 4:09 PM 03/31/2026 12:17 PM 03/31/2026 6:12 PM 04/09/2026 9:00 AM 04/16/2026 4:41 PM 04/16/2026 4:49 PM 04/16/2026 4:49 PM City of Miami Legislation Resolution Enactment Number: R-26-0150 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 18757 Final Action Date:4/9/2026 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO APPROPRIATE THE TOTAL AMOUNT OF FIVE HUNDRED THOUSAND DOLLARS AND 00/100 ($500,000.00) FROM AMERICAN RESCUE PLAN ACT OF 2021 ("ARPA") PROGRAM INCOME, GENERATED FROM THE SALES PROCEEDS FROM PREVIOUS SALES OF INFILL TWIN/SINGLE FAMILY HOME UNITS LOCATED AT 276 NW 53 STREET AND 278 NW 53 STREET, MIAMI, FLORIDA ("SALE PROCEEDS"), AS SPECIFIED IN EXHIBIT "B"; FURTHER AUTHORIZING A PORTION OF THE SALE PROCEEDS IN THE AMOUNT OF FORTY-NINE THOUSAND, SEVEN HUNDRED EIGHTY-EIGHT DOLLARS AND 20/100 ($49,788.20) TO RJ SPENCER CONSTRUCTION LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), AS SPECIFIED IN EXHIBIT "A," ATTACHED AND INCORPORATED, TO COVER SUPPLEMENTAL CONSTRUCTION COSTS FOR THE UNIT LOCATED AT 5445 NW 1 COURT, MIAMI, FLORIDA; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS, RENEWALS, EXTENSIONS, AND MODIFICATION, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY FOR SAID PURPOSE. THE APPROPRIATION, ALLOCATION, AND USE, OF THE FUNDS REFERENCED HEREIN ARE SUBJECT TO ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS AND THE RECEIPT OF ALL NECESSARY APPROVALS, INCLUDING, BUT NOT LIMITED TO THE CITY'S ARPA CONSULTANT, AND THE CITY ATTORNEY, AUTHORIZING THE CITY MANAGER TO MAKE ANY CHANGES TO ADJUST, AMEND, AND APPROPRIATE THE CITY'S OPERATING BUDGET, FIVE-YEAR FINANCIAL PLAN, STRATEGIC PLAN, MULTI- YEAR CAPITAL PLAN, AND OTHER DOCUMENTS AS NECESSARY AND APPLICABLE, PURSUANT TO THE PROVISIONS OF THIS RESOLUTION, AUTHORIZING, RATIFYING, APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS BY THE CITY MANAGER AND THE DESIGNATED CITY DEPARTMENTS TO UPDATE THE RELEVANT FINANCIAL CONTROLS, PROJECTS CLOSE-OUTS, ACCOUNTING ENTRIES, AND COMPUTER SYSTEM IN CONNECTION HEREWITH. WHEREAS, on April 1, 2021, the City of Miami ("City") issued a Request for Proposals ("RFP") inviting qualified private real estate developers to propose developments of single- family homes and/or twin homes on certain City -owned parcels of land (collectively, "Project"); and WHEREAS, a total of five (5) responses were received, two (2) of which met the minimum threshold and fulfilled all of the RFP's requirements as responsive and responsible bidders: RJ Spencer Construction LLC, a Florida Limited Liability Company ("RJ Spencer "), and RF Construction Group Inc., a Florida profit corporation ("RF Construction Group") (collectively, "Developers"); and WHEREAS, on July 8, 2021, pursuant to Resolution No. R-21-0281, the City Commission accepted the proposals received May 17, 2021, pursuant to RFP No. HCD 2021- 03, from RJ Spencer and RF Construction Group; and WHEREAS, on September 13, 2021, pursuant to Resolution No. R-21-0352, the City Commission approved the allocation of American Rescue Plan Act of 2021 ("ARPA") funds in the amount of One Hundred Thirty -Seven Million Six Hundred Thirty -Nine Thousand Four Hundred Seventeen and 00/100 Dollars ($137,639,417.00), which included an amount of Fifteen Million Five Hundred Thousand and 00/100 Dollars ($15,500,000.00) to the Department of Housing and Community Development ("Department"); and WHEREAS, the allocation to the Department included an amount of Two Million Seven Hundred Fifty Thousand and 00/100 Dollars ($2,750,000.00) to establish a pipeline of new construction affordable housing projects, in which the Department would hire several developers to construct four (4) single family homes in District 4 and another six (6) homes in District 5 with the potential to add more; and WHEREAS, on January 11, 2024, pursuant to Resolution No. R-24-0009, the City Commission allocated an initial One Million and 00/100 Dollars ($1,000,000.00) from the total Two Million Seven Hundred Fifty and 00/100 Dollars ($2,750,000.00) allocated in Resolution No. R-21-0352 to develop single family and twin homes in District 5; and WHEREAS, on July 11, 2024, pursuant to Resolution No. R-24-0259, the City Commission approved an allocation of additional ARPA funds from the Department, in an amount of Nine Hundred Fifty -Two Thousand and 00/100 Dollars ($952,000.00) for the development of single family and twin homes projects, in District 5; and WHEREAS, on March 2025, RJ Spencer and RF Construction Group informed the City of Miami ("City") that the project's actual cost surpassed its original budget due to unforeseen events, specifically, economic fluctuations, supply chain issues, and changes in labor costs; and WHEREAS, on July 24, 2025, pursuant to Resolution No. R-25-0296, the City Commission approved an allocation of additional funds, using the sale proceeds income generated from the sales of infill twin/single family home units located in District 5, in the amount of Three Hundred Thirteen Thousand Seven Hundred Seventy -Eight and 00/100 Dollars ($313,778.00) to cover additional project costs; and WHEREAS, on October 30, 2025, the Department was informed that the approved first- time homebuyer for the unit located at 5445 Northwest 1 Court, Miami, Florida, requires additional accessibility improvements to the home in order to accommodate the needs of a member of the homebuyer's household; and WHEREAS, the cost of the accessibility improvements incurred additional expenses in the amount of Forty -Nine Thousand Seven Hundred Eighty -Eight and 20/100 Dollars ($49,788.20); and WHEREAS, the City's ARPA consultant has reviewed the proposed allocation of ARPA Program Income and has determined that the use of ARPA Program Income to cover supplemental construction costs due to the costs of additional accessibility improvements is an eligible use of ARPA Funds under the Final Rule, attached and incorporated as Exhibit "C"; and WHEREAS, the City's Administration recommends the appropriation of the total amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) from ARPA Program Income, generated from the sales proceeds from previous sales of infill twin/single family home units located at 276 Northwest 53 Street and 278 Northwest 53 Street, Miami, Florida, as specified in Exhibit "B," attached and incorporated, and to authorize the allocation of ARPA funds in the amount of Forty -Nine Thousand Seven Hundred Eighty -Eight Dollars and 20/100 ($49,788.20) to RJ Spencer ("Developer,") as specified in Exhibit "A," attached and incorporated, to be utilized to cover supplemental construction cost due to the costs of additional accessibility improvements for the unit located at 5445 Northwest 1 Court, Miami, Florida; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION 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 as if fully set forth in this Section. Section 2. The City Manager is authorized' to appropriate the total amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) from ARPA Program Income, generated from the sales proceeds from previous sales of infill twin/single family home units located at 276 Northwest 53 Street and 278 Northwest 53 Street, Miami, Florida, as specified in Exhibit "B," attached and incorporated. Section 3. The allocation of funds to RJ Spencer, in the amount of Forty -Nine Thousand Seven Hundred Eighty -Eight Dollars and 20/100 Cents ($49,788.20), using the sale proceeds income generated from the sales of infill twin/single family home units located in District 5, to cover additional project cost of the unit located at 5445 Northwest 1 Court, Miami, Florida, as specified in Exhibit "A," attached and incorporated, is authorized.' Section 4. The use, allocation, and appropriation of ARPA Funds are subject to written approval by the City's ARPA consultant, and all federal, State, and local laws that regulate the use of such funds and the receipt of all necessary approvals, including, but not limited to the City Attorney. Section 5. The City Manager is authorized' to execute any and all necessary documents, in a form acceptable to the City Attorney, for said purpose. Section 6. Certain necessary actions by the City Manager and the designated City Departments to update the relevant financial controls, project close-outs, accounting entries, and computer systems in connection herewith are hereby authorized', ratified, approved, and confirmed. Section 7. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. APPROVED AS TO FORM AND CORRECTNESS: g III, C yE[ttorey J 313112026