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Res No 019-17-14820RESOLUTION NO.019-17-14820 A Resolution relating to the review and acceptance of the Annual Housing Report of the RRC57 Avenue LLC (RedRoad Commons) WHEREAS,the owners and operators of the RedRoad Commons development,pursuant to the Development Agreement dated March 29,2007,between the Cityof South Miamiand RRC 57 Avenue LLC,is required to submit an annual housing report to the City Manager;and WHEREAS,Section 2(f)of the development agreement stipulates that a minimum often percent (10%)of the units will rent to individuals or families in the moderate income segment of the affordable housing group;and WHEREAS,Section 2(f)further provides that incomes shall be based on Area Median Income (AMI),as defined by the U.S.Department ofHousingandUrban Development (HUD);and WHEREAS,HUD has determined that the AMI for Miami-Dade County in 2016 was $48,100;and WHEREAS,the Affordable Housing Compliance Report for the year ending December 31,2016 shows that 356 units were rented,of which thirty-seven were rented to individuals or families whose incomes were within the moderate income segment,or eighty to one hundred twenty percent (80- 120%)oftheAMI;and WHEREAS,the Planning and Zoning Department reviewed the Report and finds that the Red Road Commons development isin compliance with the provision of Section 2(f)of the Development Agreement,based on the data reflected in the Report. NOW,THEREFORE,BEIT RESOLVED BYTHE MAYOR AND CITY COMMISSION OFTHECITYOF SOUTH MIAMI,FLORIDA: Section 1.The Affordable Housing Compliance Report for the RedRoads Commons development for the year ending December 31,2016is hereby accepted by the City Commission based on the assumption that the data reflected in the report is correct and without waiving the City'srightto investigate the truth of the representation made in the report at some future date. Section 2.This resolution shallbe effective immediately upon being approved. PASSED AND ADOPTED this7 th dayof February ,2017. EST:,APPROVED: COMMISSION VOTE:4-0 Mayor Stoddard:Yea Vice-Mayor Welsh:Yea Commissioner:Edmond:Yea Commissioner Harris:Yea Commissioner Liebman:absent SoutfrMiami THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To:The Honorable Mayor &Members of the City Commission From:Steven Alexander,City Manager Date:February 7,2017 Agenda Item No.:13 Subject: A Resolution relating to the review and acceptance of the Annual Housing Report of the RRC 57 Avenue LLC [Red Road Commons]. Background: OnApril5,2005,the City Commission approved Ordinance No.12-05-1834 allowing fora Planned Unit Development,Mixed-Use project known asRedRoad Commons to be constructed at 6600-6640 SW 57th Avenue.The project included up to 407 multi-family residential units, retail uses,office uses and a parking garage.Pursuant to Section 12of the Development Agreement between the City of South Miamiand RRC 57th Avenue LLC,executed March 29, 2007,the developer's legal counsel submitted their annual report on the Moderate Income Housing requirement of the agreement. Analysis: Pursuant to Section 2(f)of the Development Agreement, A requirement of ten percent (10%)of theunitswillrenttoindividualsor families inthe moderate income segment of theaffordablehousinggroup.Ifthe residentialunitsconverttocondominiums,ten percent (10%)of theunitswillbe soldtoindividualsor families inthe moderate income segment of theaffordable housinggroup.Inanalyzingcompliancewiththisparagraph,the City shall allow minor deviations resulting from short-term vacancies.Incomesshallbe based on AreaMedianIncome (AMI),asdefinedbythe U.S.Department of Housingand Urban Development... Please note that while the Development Agreement doesn't define the "moderate income segment of the affordable housing group",many HUD programs and the State of Florida define itas being between eighty andone hundred twenty percent (80-120%)of the AMI. In2016,the U.S.Department ofHousingandUrban Development determined that the AMI for Miami-DadeCountywas $48,100.Thus,the incomelevelof the moderate income segment wouldrangefrom $38,480 to$57,720.As listedon the attached AffordableHousing Compliance Report,356 units were rented asof December 31,2016and the incomes of thirty- seven (37)of those lease holders ranged between $39,340 and $52,976,whichfallsinto the moderate income segment.Consequently,staff has found that RedRoad Commons is in compliance with Section 2(f)of the Development Agreement. RedRoad Commons Annual Housing Report February 7,2017 Page 2of2 Please refer to the additional detail contained in the report submitted by the owner's representative. Recommendation: Staff recommends the MayorandCityCommission accept the attached 2016AnnualHousing Report. Attachments: •Draft Resolution •Owner's Report ©Bilzin Sumberg Jerry B.Proctor,Esq. Tel 305.350.2361 Fax 305.351.2250 jproctor@bilzin.com January 24,2017 Via Hand Delivery Mr.Steven Alexander City Manager Cityof South Miami 6130 Sunset Drive South Miami,FL 33143 Re:"Red Road Commons1' Property:6600 SW 57 Avenue,South Miami,FL Housing Report (Amended Letter ofIntent) Dear Mr.Alexander: Ourfirm represents the owners and operators ofthe "Red Road Commons"mixed use development at 6600 SW57 Avenue (the"Property")in the Cityof South Miami. Pursuanttothe Development Agreement between the City ofSouth Miami and RRC 57th Avenue,LLC,acopyofwhichis enclosed,aminimumoften percent (10%)of the residential unitson the Property will rent toindividualsorfamiliesin the Moderate Income Segment of the Affordable Housing Group.This requirement is contained in paragraph 2fon page 3of the Development Agreement.1 Determination of the Moderate Income Segment is made annually through theprovisionof the Area Median Income from Miami-Dade CountybytheUnited States Department ofHousing and Urban Development.The area median income for Miami-Dade County is $48,100,as determined byU.S.Housing and Urban Development inFiscal Year 2016.Moderate income is defined as those earning between 80%to120%ofthe annual median income.Accordingly,the current income levelperunittocomplywiththe10%requirement is between $38,480 per year and $57,720 per year. Enclosed please findalistof the units where the residents complywith the Moderate Income Segment and,therefore,qualify the units as such pursuant to the Development VI have also attached an "Amendment to Development Agreement,"recorded on March 25,2010,that did not amendthehousingcomponentoftheDevelopmentAgreement. MIAMI 5271225.2 77430/27649 Bilzin Sumberg BaenaPrice&AxelrodLLP|1450BrickellAvenue,23rdFloor,Miami,Florida33131-3456 Tel305.374.7580|Fax305.374.7593|bilzin.com Steven Alexander.C5 Bllzill Slllllberg City ofSouth Miami ° January24,2017 Page 2 Agreement.Asof December 31,2016,356unitsin"RedRoadCommons"were rented out; accordingly,the attached listofunitsandincomescomplieswiththe 10%requirement. I trustthissubmittalcomplieswiththeannualhousing requirement in the Development Agreement.Please givemeacallifyou have any questions. Sincerely, JBP:id cc:Maria Menendez,CityClerk,Cityof South Miami (w/encl.) Jane Tompkins,AICP,PlanningandZoningDirector,Cityof South Miami(w/encl.) Thomas Pepe,Esq.,CityAttorney,CityofSouth Miami (w/encl.) Chad Haas,Pinnacle-Regional Property Manager (w/encl.) Ernesto Echevarria,Red Road Commons -Property Manager (w/encl.) MIAMI 5271225.2 77430/27649 Income Limits Followingare the income limits byfamilysizeandadmissionIncometargetingrequirementsforthePublicHousing,Section 8,and Moderate Rehabilitation programs: Income Limits effective 03/28/2016 Family Size Extremely Low (30%of Median) Very Low (50%of Median) Low (80%ofMedian) 1 $14,950 $24,850 $39,800 2 $17,050 $28,400 $45,450 3 $20,160 $31,950 $51,150 4 $24,300 $35,500 $56,800 5 $28,440 $38,350 $61,350 6 $32,580 $41,200 $65,900 7 $36,730 $44,050 $70,450 8 $40,890 $46,900 $75,000 The area median income forMiami-DadeCountyis:$48,100. Income target United States Department ofHousing and Urban Development (USHUD)federal regulations requireacertain percentage ofnew admissions duringa one yearperiodbeattheextremelylow-incomelevel,verylow-income,andlow-incomelevels.These percentages varybyhousingprogram as indicatedbelow. Public housing •Atleast40%ofnewadmissionsmustbeextremely low-income (equaltoorbelow30%oftheareamedianincome) •The remaining 60%ofnewadmissionscanbeuptothe low-income level(upto80%oftheareamedian income) Section 8 new construction •Atleast40%ofnewadmissionsmustbe extremely low-income (equaltoorbelow30%oftheareamedian income) •The remaining 60%ofnewadmissionscanbe low-income orvery low-income leveldependingonthe HAP contractdate(up to80%of the area median income) Section 8 Housing Choice Voucher (HCV) •Atleast75%ofnewadmissionsmustbeextremely low-income (equaltoorbelow30%oftheareamedian income) •The remaining 25%ofnewadmissionscanbeuptothe very low-income level (upto50%oftheareamedian income) Section 8 project-based vouchers •Atleast75%ofnewadmissionsmustbeextremely low-income (equaltoorbelow30%ofthearea median income) RED ROAD COMMONS 2016 Metro Dade AMI as set byHUD 48100 Moderate Income Definition as set by HUD 80%to 120%ofAMI or $38,480 to $57,720 Total number of ,Apartmentsleased as of December 31, 2016 356 Unitsin compliance per Development Agreement 37 RED ROAD COMMONS Red Road Commons Affordable Housing Compliance Report forYear ending December 31,2016 1 A-101 2/2 8/14/2016 7/31/2017 $47,552.00 98.80%Y $2,075.00 2 A-103 2/2 8/17/2016 7/31/2017 $42,720.00 88.80%Y $2,205.00 3 A-105 2/2 10/20/2016 10/19/2017 $48352.00 1003096 Y $2,189.00 4 A-106 2/2 9/24/2016 5/23/2017 $49,520.00 10230%Y $1,885.00 ,,l5 A-206 2/2 10/1/2106 7/31/2017 $42,000.00 873096 Y $1,756.00 6 A-207 2/2 10/12/2016 7/31/2017 $42,000.00 8730%Y $1,794.00 7 A-302 1/1 5/25/2016 6/24/2017 $45,724.00 95.10%Y $1,675.00 8 A-311 1/1 8/24/2016 7/31/2017 $45,348.00 9430%Y $1,658.00 9 A-409 1/1 11/12/2016 11/11/2017 $49,200.00 10230%Y $1,825.00 10 B-106 1/1 10/5/2016 7/31/2017 $40,000.00 83.20%Y $2,206.00 11 B-110 2/2 7/28/2016 7/31/2017 $45^10.00 94.20%Y $2,128.00 12 B-118 2/2 8/15/2016 7/31/2017 $44,800.00 93.10%Y $2,095.00 13 B-209 2/2 9/8/2016 5/31/2017 $46,000.00 95.60%Y $1,938.00 14 B-212 2/2 9/26/2016 7/31/2017 $49,433.00 102.80%Y $2,206.00 15 B-217 1/1 8/26/2016 .7/25/2017 $46,932.00 97.60%Y $1,640.00 16 B-219 2/2 8/1/2016 7/31/2017 $50,400.00 104.80%Y $2,064.00 17 B-514 2/2 8/20/2016 7/31/2017 $44,350.00 92.20%Y $2,717.00 18 B-525 2/2 9/1/2016 7/31/2017 $42,000.00 87.30%Y $1,688.00 RED ROAD COMMONS 2016 Metro Dade AMIas set byHUD 48100 Moderate Income Definitionas set by HUD 80%to 120%ofAMI or $38,480 to $57,720 Total number of Apartments leased as of December 31, 2016 356 Unitsin compliance per Development Agreement 37 REDROAD COMMONS Red Road Commons AffordableHousingComplianceReportforYearendingDecember 31,2016 19 C-109 1/1 8/16/2016 7/15/2017 $47,004.00 97.70%Y $1,601.00 20 C-202 2/2 8/28/2016 7/27/2017 $52,976.00 110.10%Y $1,933.00 21 C-209 1/1 7/6/2016 7/5/2017 $42,852.00 89.10%Y $2,198.00 22 C-302 2/2 9/1/2016 7/31/2017 $45,333.00 94.20%Y $1,999.00 23 C-304 1/1 7/20/2016 7/31/2017 $40,368.00 8330%Y $1389,00 24 C-306 1/1 8/15/2016 7/31/2017 $42,800.00 89.00%Y $1,682.00 25 C-309 1/1 7/16/2016 7/15/2017 $41,220.00 85.70%Y $1,862.00 27 C-509 1/1 8/14/2016 7/21/2017 $39,720.00 82.60%Y $1,768.00 30 D-301 2/2 8/20/2016 7/31/2017 $41,332.00 8530%Y $2,057.00 31 D-303 2/2 10/10/2016 10/9/2017 $42,000.00 8730%Y $1,717.00 32 E-104 2/2 9/21/2016 7/31/2017 $48,202.00 100.20%Y $1,741.00 33 E-212 2/2 12/1/2016 11/30/2017 $46,152.00 96.00%Y $1,785.00 34 E-232 1/1 8/31/2016 7/31/2017 $45,000.00 93.60%Y $1,632.00 35 E-307 1/1 10/1/2016 5/31/2017 $43,200.00 89.80%Y $1339.00 36 E-324 2/2 8/20/2016 7/19/2017 $47,120.00 98.00%Y $2356.00 37 E-330 2/2 7/1/2016 6/30/2017 $44350.00 92.20%Y $2,189.00 38 E-427 2/2 12/1/2016 11/30/2017 $45,328.00 94.20%Y $1,878.00 39 E-428 1/1 8/6/2016 8/5/2017 $44,350.00 92.20%Y $1,655.00 RED ROAD COMMONS 2016 Metro Dade AMI as set by HUD 48100 Moderate Income Definition as set by HUD 80%to 120%of AMI or $38,480 to $57,720 Total number of Apartments leased as of December31, 2016 356 Unitsin compliance per Development Agreement 37 RED ROAD COMMONS Red Road Commons Affordable Housing Compliance Report forYear ending December 31,2016 %\ 4b F-1Q3 1/1 7/27/2016 7/31/2017 $39,340.00 81.80%Y $1,610.00 41 42 43 v44 45 - General Notes: HUD Definition: ♦People withincomes between 80and120percentoftheAMIaremoderate income." ♦State ofthe Housing Counseling Industry,USDepartmentof Housing and Urban Development,Officeof Policy Development and Research,2008Report(September2008) •http://www.huduser.org/Publications/PDF/hsgjcounsel.pdf Development Agreement 2.f -Houstng-A requirement often percent (10%)oftheunits will renttoindividualsoffamiliesinthemoderateincomesegmentoftheaffordablehousing group.Iftheresidentialunitsconverttocondominiums,tenpercent (:• theunitswillbe sold toindividualsoffamiliesinthemoderate segment oftheaffordablehousinggroup.In analyzingcompliancewiththisparagraph,theGtyshallallowminordeviationsresultingfromshorttermvacancies.In shallbebasedonAreaMedianIncome(AMI)asdefinedby the U3.DepartmentofHousingandUrbanDevelopment.Proofofcompliancewiththis requirement ontheannualbasisshallbeprovidedinwritingonorbeforeJam of the followingyearto the CityManager.