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2011-082-1475 - Conveyance of NSP Properties City of Miami Gardens Agenda Cover Memo Council Meeting Date: May 11, 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 Funding Source: N/A Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: YES 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 Danny Crew. City Manager Department: Community Development Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA AUTHORIZING THE CITY MANAGER AND THE CITY CLERK, TO EXECUTE AND ATTEST, RESPECTIVELY, THAT CERTAIN SUB‐RECIPIENT AGREEMENT WITH HARVEST FIRE WORSHIP CENTER, INC. AND MOUNT HERMON COMMUNITY ECONOMIC & HOUSING DEVELOPMENT CORPORATION, RESPECTIVELY FOR THE CONVEYANCE OF SPECIFIED PROPERTIES ACQUIRED THROUGH THE NEIGHBORHOOD STABILIZATION PROGRAM (NSP1), A COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT A”; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: ITEM K-7) CONSENT AGENDA RESOLUTION Sub-Recipient Agreement w/Harvest Fire Worshop Center, Inc. and Mount Hermon 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 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) 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 resale to income eligible households. Thus revitalizing and stabilizing neighborhoods impacted by the housing crisis. The NSP Federal Guidelines require every grantee to spend “not less than 25 percent of the funds … to house individuals or families whose incomes do not exceed 50 percent of the area median income.” As a result, the City of Miami Gardens, in the Action Plan Amendment presented to the Department of Housing and Urban Development (HUD), allocated $1,716,529.70 for the purchase and rehabilitation of foreclosed properties to provide housing for households earning up to 50% of the area median income, also known as NSP Set‐Aside. The City has purchased 22 properties to comply with the Set‐Aside provision and 3 of them have been sold to qualifying households. City staff will continue its efforts in identifying additional qualifying households who can purchase the properties; however, in order to comply with the expenditure of 100% of the funds by March 2014, the City is seeking alternative ways to offer these units to households that fall in the required income category. Current Situation The City advertised a Request For Qualifications (RFQ) on November 21, 2010, to seek submissions from non‐profit 501(c)(3) agencies or organizations for the management and operation of recently acquired and renovated single family properties. These units will be conveyed to the selected applicants with the expressed written condition that the units be occupied by persons and/or families whose total household income is at or below 50% of the area median income for Miami Gardens. The RFQ document was made available on the City’s website, as well as being available at City Hall and at the Department of Community Development. Additionally, staff sent notices of the RFQ to all of the agencies on the Community Development Department’s database, the churches in the City’s database, and any other agency/organization that has inquired with the Department about providing services under the NSP. City staff conducted two (2) Technical assistance workshops; one on November 30, 2010 and the other on December 2, 2010 where the City’s RFQ Application and related questions were explained in greater detail. The workshops were open to the general public and were advertised on the City’s website as well as in the Miami Herald Neighbors Section for Miami Gardens. Comments and concerns received were addressed at the workshops and were posted on the City’s website. The table below is a breakdown of the organizations that responded to the RFQ, their average score, and general comments related to their application and proposed approach. 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 Name of Organization Average Score Comments Mount Hermon Community Economic & Housing Development Corp. 108 Partnership with Miami Beach CDC Targeting HOPWA Qualified Applicants. Harvest Fire Worship Center 100 Existing Rental Program Targeting Homeless Applicants Opa Locka CDC 63.75 The submission failed to demonstrate the capacity or readiness to manage the proposed program. In addition, they have a property in receivership and now in foreclosure and the audit reported a violation of restricted funds that had to be paid back. C.A.R.E. 47.25 The submission failed to demonstrate their capacity or ability to manage the proposed program. Parkway Baptist Church Not Scored Proposal was non‐responsive and forms were unsigned. The RFQ document specified that only submittals that received a minimum score of 75 would be considered for property conveyance. Therefore, Staff is recommending that Harvest Fire Worship Center and Mount Heron Community Economic & Housing Development Corporation both be recipients of properties acquired thru the NSP that will be used to provide permanent housing to individuals or households earning less than 50% of AMI. The properties will be conveyed to the recommended organizations on a rotating basis with consideration being given to the location of the properties. The properties will be conveyed when they are ready for occupancy and only after not being sold to an eligible buyer following being made available for a specific period of time. At that time, the NSP Administrator will recommend the property 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 conveyance and obtain approval from the Department Director and City Manager. If approved, conveyance documents will be executed, including a restrictive covenant outlining specific requirements to assure compliance with HUD regulations and City policy. Staff will also monitor the organization’s management of the conveyed properties. If at any time it is determined that the covenant provisions are being violated, or if it is determined that the capacity of the organization is not meeting required standards, the City will have the right to recapture title of said properties. Proposed Action: It is recommended that the City Council approve the Resolution authorizing the City Manager to convey specified Neighborhood Stabilization Program (NSP) acquired properties to Harvest Fire Workship Center and Mount Hermon Community Economic Development Corporation in a frequency to be determined by the City Manager, to carry out their proposed rental programs benefiting persons at or below 50% of the area median income. Attachment: • Proposed Conveyance Agreement • Proposed restricted covenant with reverter clause