HomeMy WebLinkAbout2011-029-1422 - Amendment to the 2010-2011 Action Plan (NSP3)
City of Miami Gardens Agenda Cover Memo Council Meeting Date: February 23, 2011 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance
Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: Neighborhood Stabilization Program (NSP) Advertising Requirement:
(Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: N/A X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational
Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address)
Obj. – Enhance overall quality of life for residents and businesses of CMG. X Sponsor Name Danny Crew. City Manager Department: Community Development Short Title: A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA APPROVING A SUBSTANTIAL AMENDMENT TO TO THE 2010‐2011 ACTION PLAN FOR THE ALLOCATION OF ONE MILLION, NINE HUNDRED FORTY THOUSAND, THREE
HUNDRED THIRTY‐SEVEN DOLLARS ($1,940,337.00) AS DESCRIBED IN THE NSP3 APPLICATION, ATTACHED HERETO AS EXHIBIT “A”; AUTHORIZING THE CITY MANAGER TO SUBMIT THE NSP3 APPLICATION TO THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING AN EFFECTIVE DATE. Staff Summary: Background On July 30, 2008, President Bush signed
the Housing and Economic Recovery Act of 2008 which authorized a one time appropriation of $3.92 Billion to the Neighborhood Stabilization Program (NSP) ITEM J-1) PUBLIC HEARING RESOLUTION
NSP 3 Application
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 now referred to as NSP1. The City of Miami Gardens received an allocation of $6,866,119.02. These funds were to
be used by local governments to acquire abandoned and foreclosed upon properties for demolition, rehabilitation, and resell to income eligible households. Thus revitalizing and stabilizing
neighborhoods impacted by the housing crisis. On July 21, 2010, the Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010 was passed. This bill provided for a third, one‐time
appropriation of $970 million in additional Neighborhood Stabilization Program (NSP3) funds. As with the first appropriation, NSP3 funds were allocated to entitlement States and Cities
by a formula based on (a) The number and percentage of home foreclosures in each State or unit of general local government; (b) the number and percentage of homes financed by a subprime
mortgage related loan in each State or unit of general local government; and (c) the number and percentage of homes in default or delinquency in each State or unit of general local government.
The City of Miami Gardens has been allocated $1,940,337 in NSP3 funds. Current Situation In order to qualify to receive the funds allocated, grantees are required to submit a Substantial
Amendment (NSP 3 Application) to their 2010‐2011 Annual Action Plan. The Draft of the NSP3 Plan was made available for public comment on the City’s website and copies were made available
at City Hall and at the Department of Community Development. City staff conducted a public meeting/workshop on February 10, 2011 where the City’s NSP3 Application and the method of determining
the Areas of Greatest Need were explained in greater detail. The workshop was open to the general public and was advertised on the City’s website as well as in the Miami Herald Neighbors
Section for Miami Gardens. Comments received at the workshop have been considered for incorporation into the NSP3 Application. The attached NSP3 Application reflects the the proposed
activities to be carried out with NSP3 funds. The activities are in line with the parameters set by HUD in their notice of allocation. Staff utilized the HUD provided NSP3 Mapping tool
and data files, USPS vacancy data, and local research, as well as analyzing the areas where the City’s NSP1 activities have already commenced the stabilization process, to determine
the areas of greatest need within the City. The NSP3 Application must be submitted to the local HUD office no later than March 1, 2011 in order to be considered for approval. A resolution
is needed to approve the NSP3 Application and to authorize the City Manager to submit the application to HUD. Proposed Action: It is recommended that the City Council approve the proposed
Substantial Amendment to the 2010‐11 Action Plan (NSP3 Application) for the allocation of $1,940,337 as described in the attached NSP3 Application, and further authorize the City Manager
to submit the NSP3 Application to HUD.
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 Attachment: • Substantial Amendment (NSP3 Application) to the 2010‐11 Annual Action Plan
NSP3 Application -Draft City of Miami Gardens “DRAFT” 2010 Community Development Consolidated Annual Action Plan Substantial Amendment Neighborhood Stabilization Program Round 3
NSP3 Application -Draft City of Miami Gardens NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) Valera, Elizabeth Email Address evalera@miamigardens-fl.gov
Phone Number 305-622-8041 Mailing Address 1515 NW 167 St., Bldg 5 Suite 200, Miami Gardens, FL 33169 1. Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping
Tool for Preparing Action Plan website is included as an attachment. Data Sources Used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest
need. Response: Miami Gardens primarily utilized the NSP3 Mapping Tool and HUD provided Downloadable Data Files to determine the areas of greatest need within the City. The data provided
included the NSP3 Index Score per census block. All the blocks in Miami Gardens had an Index Score of 20, determining that all blocks meet the criteria of greatest need as the State’s
minimum index score is 17. The data also provided the total number of housing units per block, the percentage of persons earning less than 120% of Area Median Income, the percentage
of persons earning less than 80% of area median income, the number of high cost/subprime loans, the number of foreclosure starts, the number of mortgages past due 90 days or more and
the number of REO’s. HUD also provided data from the USPS which detailed the number of vacant residential units and the number of units of unknown vacancy status. To assess the current
situation, we obtained data from Foreclosures.com, Zillow.com, Trulia.com and Realty Trac.com. They reported an average of 360 bank owned properties and over 1,110 preforeclosures currently
available within the City. The City also analyzed areas where NSP1 activities already commenced the stabilization process. The NSP1 projects were mapped out to show the clusters of concentration.
We found that there was a concentration of acquisitions in two specific areas within the City. Determination of Areas of Greatest Need and Applicable Tiers Describe how how the areas
of greatest need were established and whether a tiered approach is being utilized to determine the distribution of funding. Response: A combination of local research, HUD provided data
and the NSP3 guidelines and limitations were used to determine the City’s Area of Greatest Need (AGN). Two areas comprise the AGN and these were
NSP3 Application -Draft City of Miami Gardens chosen because they met the NSP3 criteria and our analysis of the data and local research indicates that the program’s impact will have
a good potential for success. The data demonstrated a concentration of foreclosures and vacant/abandoned properties in both areas. More than half of the housing units in those two areas
received a mortgage between 2004 and 2007, when market values were at their peak. The delinquency rate is over 26% and the total number of households that are either vacant properties,
in foreclosure or are REO’s is 22%. Our assessment of both areas demonstrated a foreclosure rate significant enough to provide for the acquisition of the minimum number properties required
by HUD to make an impact on the neighborhood. It was also determined that the prices of the available qualifying properties will be low enough and the potential of program income will
assist in purchasing the number of units recommended by HUD. Under NSP1, the City has already started its stabilization efforts in both areas. In the first area, Census Block 010001-1,
“Riverdale”, located between from N.W. 207 and 215 Street and 27 thru 37 Avenue. The City has purchased a total of 6 properties in this area, 3 of which have been sold to LMMI households,
generating over $200K in Program Income. The second area, adjoining Census Blocks 00403-1, 00403-5 and 00403-6, “Rainbow Park”, located between N.W. 151 and 155 Street and 17 thru 27
Avenue. The City purchased has 6 properties in this area where rehabilitation is underway. In addition to the acquisitions, the City has also demolished 1 blighted property in Riverdale
and 2 in Rainbow Park. When combined into a single “Area of Greatest Need”, we estimate that the cost of acquiring and rehabilitating the number of properties needed to make an impact
will exceed the amount of available funding. However, we are anticipating receiving program income from the sales and are seeking partnerships with organizations and agencies that can
provide funding to leverage the overall costs. • 2. Definitions and Descriptions Definitions Term Definition Blighted Structure Blighted structure is a building that is not being maintained
to the City’s minimum housing standards and exhibits common housing violations such as broken windows, missing doors, severely damaged electrical and plumbing systems, roof in disrepair,
and other violations that are typically indicative of poor maintenance or neglect, unsanitary or unsafe conditions. Affordable Rents Affordable rents will be based on the maximum rent
levels as published by HUD annually and will ensure that any housing provided through this initiative is affordable. Affordable is defined as monthly mortgage payments including taxes
and insurance to not exceed thirty five percent (35%) of the maximum monthly income allowed for the applicant’s income category. Descriptions
NSP3 Application -Draft City of Miami Gardens Term Definition Long-Term Affordability To ensure long-term affordability as it relates to homeownership, buyers will receive subsidy assistance
of up to $55,000. Buyers will execute a Promissory Note in the amount of subsidy assistance which will be secured by a recorded Mortgage and Security Agreement. The terms of the subsidy
assistance will stipulate that they buyer must continue to occupy the property throughout the 15 year affordability period. If they buyer ceases to own or occupy the property, repayment
will be required and the amount of repayment will depend on when this occurs and will be based on a scale which could include some shared appreciation. In the case of rental housing,
the City will assure long-term affordability by executing a sub-recipient agreement with the entities managing the properties and recording a restricted covenant on the property that
will uphold the affordability requirements. Housing Rehabilitation Standards The housing rehabilitation standards for the NSP3 activities will be consistent with the City’s existing
Housing Policy which includes Housing Quality Standards and compliance with current building codes. In addition, the gut rehabilitations or new construction will be designed to meet
or exceed the standards for Energy Star Qualified New Homes while other rehabilitation projects will include replacement of older obsolete products and appliances with Energy Star qualified
products. 3. Low-Income Targeting Low-Income Set-Aside Amount Enter the low-income set-aside percentage in the first field. The field for total funds set aside will populate based on
the percentage entered in the first field and the total NSP3 grant. Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide
housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Total low-income set-aside percentage (must be no less than 25 percent): 25.00%
Total funds set aside for low-income individuals = $485,084.25 Meeting Low-Income Target Provide a summary that describes the manner in which the low-income targeting goals will be met.
Response: The City of Miami Gardens intends to rehabilitate vacant abandoned, foreclosed or demolished residential properties to provide housing for households with incomes at or below
50 percent of the area median income. The City intends to identify income eligible households who are able to secure a mortgage to purchase a home. The City will provide subsidy assistance
to assure affordability. The City also intends to convey approximately 4 to 5 homes to one or more local non-profit organizations to manage the rental of said units. The organizations
will be selected by way of a formal Request for
NSP3 Application -Draft City of Miami Gardens Qualifications process. The City will monitor the organizations to assure compliance with program requirements, most importantly income
eligibility and affordable rents. 4. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low-and moderate-income dwelling
units (i.e., ≤ 80% of area median income)? Yes If yes, fill in the table below. Question Number of Units The number of low-and moderate-income dwelling units—i.e., ≤ 80% of area median
income—reasonably expected to be demolished or converted as a direct result of NSP-assisted activities. 5 The number of NSP affordable housing units made available to low-, moderate-,
and middle-income households—i.e., ≤ 120% of area median income—reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing
such housing (including a proposed time schedule for commencement and completion). 5 The number of dwelling units reasonably expected to be made available for households whose income
does not exceed 50 percent of area median income. 0 5. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this
proposed substantial amendment or abbreviated plan. Response: The City of Miami Gardens posted this NSP3 Draft Action Plan Substantial Amendment on the City’s website on February 7,
2011. In addition to posting it on the website, the Draft was made available for public review and comment at City Hall and the Department. Notice of the public review period was published
in the newspaper of most circulation. The City also hosted a public meeting/workshop on February 10, 2011 to share the approach utilized to finalize the proposed activities and areas.
The public meeting/workshop was also advertised on the City’s website and in the newspaper of most circulation. Summary of Public Comments Received. The summary of public comments received
is included as an attachment.
NSP3 Application -Draft City of Miami Gardens 6. NSP Information by Activity Activity Number 1 Activity Name Single Family Acquisition, Rehabilitation and Resale Uses Select all that
apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG
Activity or Activities 24 CFR 570.201(a) Acquisition and (b) Disposition National Objective Low Moderate Middle Income Housing (LMMH) Activity Description This activity entails the City
or a Developer solicited through an RFQ process to acquire abandoned and or foreclosed single family properties, rehabilitate the homes to meet all codes, be energy efficient and hardened
against storms. The properties will be sold to eligible buyers for which the City will provide assistance in an amount of up to $55,000. Program income derived from the sales of these
properties will be used to acquire, rehabilitate and resell additional housing units. Location Description Riverdale and Rainbow Park (Census Blocks 10001.1, 00403.1, 00403.5, 00403.6)
Budget Source of Funding Dollar Amount NSP3 $1,211,220.00 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $1,211,220.00 Performance Measures 23 Projected
Housing Units Projected Start Date 5/2/2011 Projected End Date 5/1/14 Responsible Organization Name City Of Miami Gardens Location 1515 N.W. 167 St., Bldg. 5, Suite 200, Miami Gardens,
FL 33169 Administrator Contact Info Elizabeth Valera (305) 622-8041, evalera@miamigardens-fl.gov
NSP3 Application -Draft City of Miami Gardens Activity Number 2 Activity Name Single Family Acquisition, Rehabilitation and Resale-LH25 Use Select all that apply: Eligible Use A: Financing
Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG Activity or Activities 24 CFR 570.201(a)
Acquisition and (b) Disposition National Objective Low-Income Housing to Meet 25% Set-Aside (LH25) Activity Description This activity entails the City or a Developer solicited through
an RFQ process to acquire abandoned and or foreclosed single family properties, rehabilitate the homes to meet all codes, be energy efficient and hardened against storms. The properties
will either be sold to eligible buyers or conveyed to non-profit organizations to be managed as a rental property. Location Description Riverdale and Rainbow Park (Census Blocks 10001.1,
00403.1, 00403.5, 00403.6) Budget Source of Funding Dollar Amount NSP3 $485,084.00 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $485,084.00 Performance
Measures 10 Projected Housing Units Projected Start Date 5/2/2011 Projected End Date 5/1/2014 Responsible Organization Name City Of Miami Gardens Location 1515 N.W. 167 St., Bldg. 5,
Suite 190, Miami Gardens, FL 33169 Administrator Contact Info Elizabeth Valera (305) 622-8041, evalera@miamigardens-fl.gov
NSP3 Application -Draft City of Miami Gardens Activity Number 3 Activity Name Demolition of Blighted Properties Use Select all that apply: Eligible Use A: Financing Mechanisms Eligible
Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG Activity or Activities Demolition of vacant/blighted
structures-24 CFR 570.201(d) National Objective Low Moderate Middle Income Housing (LMMH) Activity Description This activity involves the elimination of approximately 5 blighted structures
that are beyond repair, and pose a health and/or safety hazard in eligible neighborhoods Location Description The City will only demolish properties in the identified Areas of Greatest
Need Budget Source of Funding Dollar Amount NSP3 $50,000.00 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $50,000.00 Performance Measures Demolition
of Five (5) Blighted Structures Projected Start Date 5/1/2011 Projected End Date 5/1/2014 Responsible Organization Name City Of Miami Gardens Location 1515 N.W. 167 St. Bldg. 5, Suite
190, Miami Gardens, FL 33169 Administrator Contact Info Elizabeth Valera (305) 622-8041, evalera@miamigardens-fl.gov
NSP3 Application -Draft City of Miami Gardens Activity Number 4 Activity Name Program Administration Use Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition
and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG Activity or Activities Program Administration: Administrative duties relative
to the overall grant program and fair housing activities. This activity is assumed to benefit low and moderate income persons and is eligible under 24 CFR section 570.206. National Objective
(Select One) Activity Description NSP3 regulations allows grantees a maximum of 10% of their NSP allocation to be utilized for planning and administrative costs overseeing the program,
reporting and other general administrative activities. Location Description N/A Budget Source of Funding Dollar Amount NSP3 $194,033.00 (Other funding source) $0.00 (Other funding source)
$0.00 Total Budget for Activity $194,033.00 Performance Measures (Enter all performance measures here) Projected Start Date 5/2/2011 Projected End Date 5/1/2014 Responsible Organization
Name City Of Miami Gardens Location 1515 N.W. 167 St., Bldg. 5 Suite 200, Miami Gardens, FL 33169 Administrator Contact Info Elizabeth Valera (305) 622-8041, evalera@miamigardens-fl.gov
NSP3 Application -Draft City of Miami Gardens 7. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies
that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate
actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti-displacement and
relocation plan. The applicant certifies that it has in effect and is following a residential anti-displacement and relocation assistance plan. (3) Anti-lobbying. The jurisdiction must
submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of
jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction
possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency
with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition
and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD.
(7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR
part 135. 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements
of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing
Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will
comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of
its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: a. that all of the NSP funds made available to it will
be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and
NSP3 Application -Draft City of Miami Gardens b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108
loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low-and moderate-income, including any fee charged or assessment made as a condition
of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements
(assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a
source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate-income (but not low-income) families, an assessment or charge may be made against
the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment.
(12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction
against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit
from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti-discrimination laws. The jurisdiction
certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619),
and implementing regulations. (14) Compliance with lead-based paint procedures. The jurisdiction certifies that its activities concerning lead-based paint will comply with the requirements
of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction
certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are
owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures
described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. _________________________________
_____________ Signature/Authorized Official Date ___________________ Title