HomeMy WebLinkAbout2013-050-1846 - MOU with Dade County Credit Union 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 City of Miami Gardens Agenda Cover Memo Council Meeting Date: February 13, 2013 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading:(Enter X in box) 1 st Reading 2 nd Reading X Public Hearing:(Enter X in box) Yes No Yes No X Funding Source: Dade County Federal Credit Union ‐Federal Home Loan Bank 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) N/A X Sponsor Name Dr. Danny O. Crew, City Manager Department:Community Development Short Title: A RESOLUTION OF THE CITY CO UNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZIN G THE CITY MANAGER AND THE CITY CLERK TO EXECUTE AND A TTEST RESPECTIVELY, THAT CERTAIN MEMORANDUM OF UNDERST ANDING WITH DADE COUNTY FEDERAL CREDIT UNION (DCFCU) FOR THE ACCEPTANCE OF GRANT FUNDS FOR THE CITY’S AFFORDABLE HOUSING PROGRAM, A COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT “A”; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESEN TATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: Background
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 Since 2007, the Department of Community Development (CD) has successfully completed 161 housing rehab projects and 94 energy efficient retrofit projects in its Housing Rehabilitation Program. This number amounts to approximately 51 projects per year. In addition to Community Development Block Grant (CDBG) funds, a significant portion of the funding for this program has come from the federally funded Disaster Recovery Initiative (DRI) and Energy Efficiency & Conservation Block Grant (EECBG) program, as well as the State Housing Initiatives Partnership (SHIP) Program funds received from the State of Florida. Despite these notable accomplishments, the number of rehab projects represents only a fraction of the need in the community. Demand for this program continues to be very high and far surpasses the City’s financial resources with which to address the need. Furthermore, over the past two years, the City has seen significant funding cuts to its CDBG allocations; a 16.7% reduction in the 2011 ‐12 and a 25.3% reduction for the 2012 ‐13 program years. Additionally, the City’s DRI and EECBG funds have been fully expended; and the State is not anticipated to continue funding the SHIP Program. Based on this trend, City Staff expects future funding to continue to decline as well. Therefore, the City must be creative with its reduced funds and actively seek out other resources in which to continue the Housing Rehabilitation Program. Limiting the scope of the work and requiring a repayment of the loan amount, will reduce the amount of assistance needed for each home and enable funds to be recycled, thereby allowing the City to continue to assist more low ‐to ‐moderate income homeowners. City Staff has continued to reach out to non ‐governmental entities to identify potential partnerships in order to bring needed financial resources to the City. Current Situation Recently City staff was contacted by the Dade County Federal Credit Union (DCFCU) about their interest in partnering with the City in carrying out desired housing programs with funds from the Federal Home Loan Bank. Staff had established a professional relationship with the DCFCU several years ago and had always sought an opportunity to have that relationship materialize into a mutual and meaningful agreement. Through its affiliation with the Federal Home Loan Bank, the DCFCU sought to identify appropriate organizations/entities that could utilize funds from its affordable housing program to benefit qualifying households. Because of the City’s successful housing rehab program, the DCFCU thought the City would be an ideal candidate for this affiliation. The Federal Home Loan Bank will provide (thru the DCFCU as intermediary) $1.5M in funding to the City of Miami Gardens to carry out activities covered under the bank’s affordable housing program. Most of the products covered under this program are consistent with the City’s rehabilitation program. Moreover, the intake process required will be incorporated into the City’s current process for determining participant eligibility. One key element incorporated in this funding commitment will be the requirement of households receiving these funds to open an account with the DCFCU. City Staff has no objection to this requirement because Staff finds that many of the applicants to the rehab program either do not have bank accounts, or have accounts with institutions charging higher fees than those
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 proposed by the DCFCU. Notwithstanding, should an applicant under the rehab program not agree to open an account with the credit union, the City will process that applicant using its regular CDBG Funds. In order to proceed, an execution of a Memorandum of Understanding between the parties is required. Execution of the MOU constitutes a funding commitment by the Federal Home Loan Bank in the amount stipulated, and commitment by the City to carry out the activities listed therein. City Staff requests that Council authorize the City Manager to execute the MOU. Proposed Action: That the City Council approve the attached resolution. Attachment: Memorandum of Understanding