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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