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HomeMy WebLinkAboutR-19-0239City of Miami 1 i.RR cl Legislation alldl 1lm Resolution: R-19-0239 File Number: 6021 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 6/13/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING ALL FUNDS AGREED TO OR AWARDED AS SANCTIONS AFTER ATTORNEYS' FEES AND COSTS ARE DEDUCTED ("FUNDS") IN ANY CASE WHERE BRUCE JACOBS, ESQ. OR HIS LAW FIRM OBTAINS SANCTIONS AGAINST BANK OF AMERICA, JP MORGAN CHASE, U.S. BANK, FANNIE MAE, OR ANY OTHER MORTGAGE SERVICERS OR ANY OF THEIR COUNSEL FOR FRAUD ON THE COURT INVOLVING FORGERY, PERJURY, OBSTRUCTION OF JUSTICE, DESTRUCTION OF EVIDENCE, BACKDATING OF RECORDS, AND/OR DEFIANCE OF COURT ORDERS; DESIGNATING THE SPECIAL REVENUE ACCOUNT TITLED "FORECLOSURE SANCTIONS AFFORDABLE HOUSING TRUST FUND" TO RECEIVE THE FUNDS; DIRECTING THE CITY MANAGER TO DEVELOP A FRAMEWORK IN ORDER TO UTILIZE OR DISTRIBUTE THE FUNDS TO CREATE AFFORDABLE HOUSING THROUGHOUT THE CITY OF MIAMI AND THE STATE OF FLORIDA. SPONSOR(S): Commissioner Ken Russell, Mayor Francis X. Suarez WHEREAS, the City of Miami ("City") is a national leader in holding major banks accountable for improper actions in their handling of mortgage loans; and WHEREAS, the City has initiated litigation against Bank of America, J. P. Morgan Chase, Wells Fargo, and Citibank (collectively, "Banks") for violations of the Fair Housing Act seeking damages caused to the City as a result of discriminatory and predatory loans resulting in expedited foreclosures; and WHEREAS, the litigation against the Banks has been fought to the United States Supreme Court and has resulted in new law helping local governments to address issues relating to housing in their communities; and WHEREAS, the improper actions of the Banks that resulted in foreclosures have significantly harmed the City, the State of Florida ("State"), as well as other communities across the nation; and WHEREAS, the harm caused by the improper actions includes, but is not limited to, reducing the availability of affordable housing; and WHEREAS, the affordable housing crisis is a serious issue in the City and the State that requires substantial additional resources in order to make a significant impact; and WHEREAS, the City has just completed the largest and most comprehensive affordable housing study in its history; and WHEREAS, the City is well prepared to dispense funds in a manner that aligns with the needs of the State to address affordable housing issues; and City of Miami Page 1 of 3 File ID: 6021 (Revision:) Printed On: 6/27/2019 File ID: 6021 Enactment Number: R-19-0239 WHEREAS, Bruce Jacobs, Esq. and his law firm (collectively, "Jacobs") have committed to tender to the City, for the purpose of advancing affordable housing, all funds agreed to or awarded as sanctions against Bank of America, JP Morgan Chase, U.S. Bank, Federal National Mortgage Association ("Fannie Mae"), or any other mortgage servicers or any of their Counsel, after attorneys' fees and costs are deducted ("Funds"), in any foreclosure involving fraud on the court including but not limited to forgery, perjury, obstruction of justice, destruction of evidence, backdating of records, and/or defiance of court orders related to evidence of standing to foreclose or any false claims about a loan boarding process used to admit documents under false pretenses; and WHEREAS, the City agrees Jacobs shall be entitled to a contingent attorney's fee equal to eighteen percent (18%) of any funds awarded or agreed to as sanctions, less any attorneys' fees separately awarded to Jacobs for his work by any Court imposing sanctions; and WHEREAS, the Funds are to be appropriated by separate Resolution; and WHEREAS, it is appropriate for the City Commission to (i) accept all Funds in any case where Jacobs obtains sanctions against Bank of America, JP Morgan Chase, U.S. Bank, Fannie Mae, or any other mortgage servicers or any of their counsel in any foreclosure involving fraud on the court including but not limited to forgery, perjury, obstruction of justice, destruction of evidence, backdating of records, and/or defiance of court orders related to evidence of standing to foreclose or any false claims about a loan boarding process used to admit documents under false pretenses (ii) designate the special revenue account titled "Foreclosure Sanctions Affordable Housing Trust Fund" to receive the Funds, and (iii) direct the City Manager to develop a framework in order to utilize or distribute the Funds to create affordable housing throughout the City as well as the State; 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 accept all Funds in any case where Jacobs obtains sanctions against Bank of America, JP Morgan Chase, U.S. Bank, Fannie Mae, or any mortgage servicers or any of their counsel for fraud on the court involving forgery, perjury, obstruction, destruction of evidence, backdating of records, defiance of court orders, false, forged, fraudulent evidence of standing to foreclose, and/or any false claims about a loan boarding process used to admit documents under false pretenses. Section 3. The special revenue account titled "Foreclosure Sanctions Affordable Housing Trust Fund" is hereby designated to receive the Funds. The funds shall be protected and dedicated solely to creating affordable housing throughout the City and the State and for no other purpose unless ordered by the Court(s) imposing sanctions. Section 4. The City Manager is directed' to develop a framework to utilize or distribute the Funds to create affordable housing throughout the City and the State. ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. City of Miami Page 2 of 3 File ID: 6021 (Revision:) Printed on: 6/27/2019 File ID: 6021 Enactment Number: R-19-0239 Section 5. The City agrees Jacobs shall be entitled to a contingency fee equal to eighteen percent (18%) of any Funds awarded or agreed to as sanctions, less any amounts separately awarded to Jacobs for his work by any Court imposing sanctions. Section 6. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: Un ndez, City Attor iey 6/4/2019 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. City of Miami Page 3 of 3 File ID: 6021 (Revision:) Printed on: 6/27/2019