13THE 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
DATE: February 7,2017 Agenda Item NO.:i3
FROM: Steven Alexander, City Manager
SUBJECT:
A Resolution relating to the review and acceptance of the Annual Housing Report of the RRC
57 Avenue LLC [Red Road Commons].
BACKGROUND:
On AprilS, 2005, the City Commission approved Ordinance No. 12-05-1834 allowing for a
Planned Unit Development, Mixed-Use project known as Red Road Commons to be constructed
at 6600-6640 SW 5ih Avenue. The project included up to 407 multi-family residential units,
retail uses, office uses and a parking garage. Pursuant to Section 12 of the Development
Agreement between the City of South Miami and RRC 57th Avenue LLC, executed March 29,
2007, the developer's legal counsel submitted their annual report on the Moderate Income
Housing requirement ofthe agreement.
ANALYSIS:
Pursuant to Section 2(f) of the Development Agreement,
A requirement of ten percent (10%) of the units will rent to individuals or families
in the moderate income segment of the affordable housing group. If the
residential units convert to condominiums, ten percent (10%) of the units will be
sold to individuals or families in the moderate income segment of the affordable
housing group. In analyzing compliance with this parograph the City shall allow
minor deviations resulting from short-term vacancies. Incomes shall be based on
Area Median Income (AMI), as defined by the U.S. Department of Housing and
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 it as being between eighty and one hundred twenty percent (80-120%) of
the AMI.
In 2016, the U.S. Department of Housing and Urban Development determined that the AMI for
Miami-Dade County was $48,100. Thus, the income level of the moderate income segment
would range from $38A80 to $57,720. As listed on the attached Affordable Housing
Compliance Report, 356 units were rented as of December 31, 2016 and the incomes of thirty-
seven (37) of those lease holders ranged between $39,340 and $52,976, which falls into the
moderate income segment. Consequently, staff has found that Red Road Commons is in
compliance with Section 2(f) of the Development Agreement.
Red Road Commons Annual Housing Report
February 7,2017
Page 2 of 2
Please refer to the additional detail contained in the report submitted by the owner's
representative.
RECOMMENDATION:
Staff recommends the Mayor and City Commission accept the attached 2016 Annual Housing
Report.
,
Attachments:
• Draft Resolution
• Owner's Report
1 RESOLUTION NO. _______ _
2
3
4
A Resolution relating to the review and acceptance of the Annual Housing
Report of the RRC 57 Avenue LLC (Red Road Commons)
5 WHEREAS, the owners and operators of the Red Road Commons development, pursuant to the
6 Development Agreement dated March 29; 2007, between the City of South Miami and RRC 57 Avenue
7 LLC, is required to submit an annual housing report to the City Manager; and
8 WHEREAS, Section 2(f) of the development agreement stipulates that a minimum of ten percent
9 (10%) of the units will rent to individuals or families in the moderate income segment of the affordable
10 housing group; and
11 WHEREAS, Section 2(f) further provides that incomes shall be based on Area Median Income
12 (AMI), as defined by the U.S. Department of Housing and Urban Development (HUD); and
13 WHEREAS, HUD has determined that the AMI for Miami-Dade County in 2016 was $48,100; and
14 WHEREAS, the Affordable Housing Compliance Report for the year ending December 31, 2016
15 shows that 356 units were rented, of which thirty-seven were rented to individuals or families whose
16 incomes were within the moderate income segment, or eighty to one hundred twenty percent (80-
17 120%) ofthe AMI; and
18 WHEREAS, the Planning and Zoning Department reviewed the Report and finds that the Red
19 Road Commons development is in compliance with the provision of Section 2(f) of the Development
20 Agreement, based on the data reflected in the Report.
21 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF
22 SOUTH MIAMI, FLORIDA:
23 Section 1. The Affordable Housing Compliance Report for the Red Roads Commons
24 development for the year ending December 31, 2016 is hereby accepted by the City Commission based
25 on the assumption that the data reflected in the report is correct and without waiving the City's right to
26 investigate the truth ofthe representation made in the report at some future date.
27 Section 2. This resolution shall be effective immediately upon being approved.
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PASSED AND ADOPTED this ____ day of ________ , 2017.
ATIEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE, LEGALITY AND
EXECUTION THEREOF
CITY ATIORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice-Mayor Welsh:
Commissioner: Edmond:
Commissioner Harris:
Commissioner Liebman:
Via Hand Delivery
Mr. Steven Alexander
City Manager
City of South Miami
6130 Sunset Drive
South Miami, FL 33143
Re: "Red Road Commons"
Property: 6600 SW 57 Avenue, South Miami, FL
Housing Report (Amended Letter of Intent)
Dear Mr. Alexander:
C~ Bilzin Sumberg
Jerry e. Proctor, Esq.
Tel 305.350.2361
Fax 305.351.2250
jproctor@bilzin.com
January 24, 2017
Our firm represents the owners and operators of the "Red Road Commons" mixed use
development at 6600 SW 57 Avenue (the "Property") in the City of South Miami.
Pursuant to the Development Agreement between the City of South Miami and RRC 57 th
Avenue, LLC, a copy of which is enclosed, a minimum of ten percent (10%) of the residential
units on the Property will rent to individuals or families' in the Moderate I ncome Segment of the
Affordable Housing Group. This requirement is contained in paragraph 2f on page 3 of the
Development Agreement.1
Determination of the Moderate Income Segment is made annually through the provision of
the Area Median Income from Miami-Dade County by the United States Department of Housing
and Urban Development. The area median income for Miami-Dade County is $48,100, as
determined by U.S. Housing and Urban Development in Fiscal Year 2016. Moderate income is
defined as those earning between 80% to 120% of the annual median income. Accordingly, the
current income level per unit to comply with the 10% requirement is between $38,480 per year
and $57,720 per year.
Enclosed please find a list of the units where the residents comply with the Moderate
Income Segment and, therefore, qualify the units as such pursuant to the Development
1/ I have also attached an "Amendment to Development Agreement," recorded on March 25, 2010, that did not
amend the housing component of the Development Agreement.
MIAMI 5271225.2 77430127649
Bilzin Sumberg Baena Price & Axelrod LLP 11450 Brickell Avenue, 23rd Floor, Miami, Florida 33131-3456
Tel 305.374.7580 1 Fax 305.374.7593 1 bilzin.com
Steven Alexander.
City of South Miami
January 24, 2017
Page 2
C:;;' Bilzin Sumberg
Agreement. As of December 31, 2016, 356 units in "Red Road Commons" were rented out;
accordingly, the attached list of units and incomes complies with the 10% requirement.
I trust this submittal complies with the annual housing requirement in the Development
Agreement. Please give me a call if you have any questions.
Sincerely,
JBP: id
cc: Maria Menendez, City Clerk, City of South Miami (w/encl.)
Jane Tompkins, AICP, Planning and Zoning Director, City of South Miami (w/encl.)
Thomas Pepe, Esq., City Attorney, City of South Miami (w/encl.)
Chad Haas, Pinnacle-Regional Property Manager (w/encl.)
Ernesto Echevarria, Red Road Commons -Property Manager (w/encl.)
-------~-~----MIAMTs27-1225_.2"17430/27649"---------------------------~---------------------------------------~---------~-----
MiamiaDade County Public Housing and Community Development
Income Limits
Following are the income limits by family size and admission Income targeting requirements for the Public Housing, Section 8, and
Moderate Rehabilitation programs:
!-----'--------------------~~;~e ~i~~;s ef~;ctive -~~f2 ~Iz_;;~~--------------------·-·-----1
i-------·--------r--... ----.--.-------,--------.---.---·---I-----·-··---··--~----·----I
I Family Size I Extremely Low Very Low Low I I I (30% of Median) (SO% of Median) I (SO% of Median) II'
ii, I I------··----·-·-----i-------------~--·--·L--... --.---.---·--·---··-r---------.-------------··-·-·-·--I
il' 1 i $14,950 I $24,850 I $39,800 I
I I ! I J---------.. --!-.-------------------+------.--------.------··-·r---------·-.----·--------I
: 2 I $17,050 ! $28,400 ! $45,450 I
l=~~=J-~_~;o:ffio .. -~t-=$3~~~~t=-~1:1~~~-~-j
I 4 I $24,300 'I $35,500 II $56,800 i I ' I I--·----------···-·-·--~-.. ----·----,-----·--... ·--I-------------------'-----------------------.-----..!
I 5 I $28,440 I $38,350 I $61,350 I
, I! I L ____ . _____ . __ . _____ . ___ J. _________________ . _____ . ________ .--________ .. _____ . __________ . ____________ ._ ... __ ... _._!
I 6\ $32,580 I $41,200 I $65,900 I
r--------~-·---.. --i--------$36:;3;-------r----$;~~050 --·------t-------$;O :4-~-O--------1
I I I ! ! I . I r---'--~-----~----------'r-----.. $40 ,89;--·---1-----$46.-900 ·----.. ,-.. ----$~~~O~O --------.. -.. -!
I l I I i L .. _____ .... ___ . __ ... _____ ... __ . __ .... _____ . ________ ... __ .. _____ , ____ . ___ .. __ ._ ..... _______ .. ________ ~_ .. __________ . ____ .. __ ._. __ ._;
The area median income for Miami-Dade County is: $48,100.
Income target
United States Department of Housing and Urban Development (USHUD) federal regulations require a certain percentage of new
admissions during a one year period be at the extremely low-income level, very low-income, and low-income levels. These
percentages vary by housing program as indicated below.
Public housing
• At least 40% of new ad!l1issions must be extremely low-income (equal to or below 30% of the area median income)
• The remaining 60% of new admissions can be up to the low-income level (up to 80% of the area median income)
Section 8 new construction
• At least 40% of new admissions must be extremely low-income (equal to or below 30% of the area median income)
• The remaining 60% of new admissions can be low-income or very low-income level depending on the HAP contract date (up
to 80% of the area median income)
Section 8 Housing Choice Voucher (HCV)
• At least 75% of new admissions must be extremely low-income (equal to or below 30% of the area median income)
• The remaining 25% of new admissions can be up to the very low-income level (up to 50% ofthe area median income)
Section 8 project-based vouchers
• At least 75% of new admissions must be extremely low-income (equal to or below 30% ofthe area median income)
RED ROAD COMMONS
Red Road Commons
Affordable Housing Compliance ~eport for Year ending December 31, 2016
2016 Metro Dade 48100
AMI as set by HUD
Moderate Income 80% to 120% of AMI
Definition as set by or $38,480 to
HUD $57,720
Total number of 356
. Apartments leased
as of December 31,
2016
Units in compliance 37
per Development
Agreement
RED ROAD COMMONS
RED ROAD COMMONS
Red Road Commons
Affordable Housing Compliance Report for Year ending December 31, 2016
2016 Metro Dade 48100
AMI as set by HUD
Moderate Income 80% to 120% of AMI
Definition as set by or $38,480 to
HUD $57,720
Total number of 356
Apartments leased
as of December 31,
2016
Units in compliance 37
per Development
Agreement
--
RED ROAD COMMONS
RED ROAD COMMONS
RED ROAD COMMONS
Red Road Commons
Affordable Housing Compliance Report for Year ending December 31, 2016
2016 Metro Dade 48100
AMI as set by HUD
Moderate Income 80% to 120% of AMI
Definition as set by or $38,480 to
HUD $57,720
Total number of 356
Apartments leased
as of December 31,
2016
Units in compliance 37
per Development
Agreement
HUD Definition:
"People with incomes between 80 and 120 percent of the AMI are moderate income.·
"State of the Housing Counseling Industry, US Department of Housing and Urban Development, Office of Policy Development and Research, 2008 Report (September 2008)
"http://www.huduser.org/Publications/PDF/hs{Lcounsel.pdf
Development Agreement
2.f -Housing-A requirement often percent (10%) of the units will rent to individuals of families in the moderate income segment of the affordable housing group. If the residential units convert to condominiums, ten percent (l
the units will be sold to individuals of families in the moderate segment of the affordable housing group. In analyzing compliance with this paragraph, the Oty shall allow minor deviations resulting from short term vacandes. In
shall be based on Area Median Income (AMI) as defined by the u.s. Department of Housing and Urban Development. Proof of compliance with this requirement on the annual basis shall be provided in writing on or before Jam
of the following year to the City Manager.-