C7M -  

Resolutions - C7 M

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends adopting the Resolution.

BACKGROUND/HISTORY

The City of Miami Beach (the "City") is a U.S. Department of Housing and Urban Development (HUD) designated entitlement city as determined by the decennial census information on population growth lag, overcrowding, age of housing stock, and poverty. The City has been an entitlement city since 1975. As an entitlement city, Miami Beach qualifies for an annual allocation of federal funding under HUD's grant programs, including the HOME Investment Partnership (HOME) Program and the Community Development Block Grant (CDBG) Program.

The Five-Year Consolidated Plan and Annual Action Plan (Plans) are a federal requirement for all HUD entitlement communities. The Five-Year Consolidated Plan describes how the City intends to use HOME and CDBG funds for the term of the Plan. The 2023-2027 Consolidated Plan was adopted on June 28, 2023, via Resolution No. 2023-32637. The Action Plan is a component of the Consolidated Plan and provides a concise summary of the actions, activities, and programs that will take place during the program year to address the priority needs and goals identified in the Consolidated Plan.

The 2025 Action Plan must be submitted to HUD by August 15, 2025, using HUD's Integrated Disbursement Information System (IDIS).

ANALYSIS

FY 2025 Request for Applications

On February 27, 2025, the Administration issued a Request for Applications (RFA) for CDBG and HOME funds, approved via Resolution 2025-33518, with a submission deadline of March 28, 2025. A pre-submission meeting was held on March 6, 2025, to review the RFA with prospective applicants, ensure clarification, and proactively address questions relating to the completion and submission of the application.

CDBG FY 2025 Funds

Total HUD Entitlement Less administrative allowance (20%) Less Public Services allowance (15%) Net available for project allocation $858,270.00 ($171,654.00) ($128,740.00) $557,876.00

HOME FY 2025 Funds

Total HUD Entitlement Less administrative allowance (10%) Community Housing Development Organization Set-Aside (15%) Net available for project allocation $485,921.06 ($48,592.00) ($72,888.00) $364,441.06

CDBG 2025 Funding

A maximum of 15 percent of the City's allocation, or $128,740.00, may fund public service activities. Public Service activities include meal programs, rent assistance, childcare programs, etc., for income-eligible participants. Public Service funds in the amount of $40,000 were appropriated for the Elderly Grocery Program via Resolution 2025-33518. This program is administered by the Office of Housing and Community Services and has been funded by CDBG since 2015 and leveraged with additional funding provided through the City's General Funds. The program assisted 104 elderly Miami Beach residents with monthly grocery delivery services

during the 2024/25 program year. The City received six (6) applications for public services.

Below is a summary of the CDBG public services projects:

UNIDAD of Miami Beach - The program ensures that elderly residents are connected to Project Link needed services by providing appropriate information and referrals. Services consist of needs assessments, information/referral to a network of human services providers, and case management. The application proposes an increase in service from 200 to 250 beneficiaries and an increase in funding from $14,000 to $24,000 from the prior year. UNIDAD of Miami Beach The program will provide recreation and language services for – Recreation and North Beach Senior Center seniors. The application proposes an Language Services increase in service from 125 to 250 beneficiaries and an increase in funding from $14,000 to $23,000 from the prior year. Boys and Girls Club of The programs offer a safe, structured environment with evidence- Miami-Dade – Project based activities for children and youth from kindergarten through Learn and Great Futures twelfth grade. The activities include Science, Technology, for Teens Engineering, and Math (STEM), literacy, homework assistance, music, arts & crafts, physical fitness, intramural sports, family engagement, enrichment activities, health education, mentoring and college readiness, employability skills, and college visits for older teens. The program serves 320 children. This request is an increase in funding from $35,000 to $45,000 from the prior year. Ayuda - Here for You The program supports low-income, homebound elders in Miami Program Beach by providing a counselor and deep cleaning services to improve respiratory health, stability, and longevity. The program serves twenty (20) elderly residents. This request is an increase in funding from $21,638 to $23,629 from the prior year. Friendship Circle – The program offers supervised and supportive activities that Sunday Circle promote social interaction and provide respite for participants. Its goal is to help individuals with disabilities build independence and develop meaningful friendships within real-world settings. Open to Miami Beach residents with special needs ages five and older, the program is requesting an increase in funding from $25,200 to $50,000 compared to the previous year. While it proposes to serve 40 clients, the program currently serves 14 participants. Helping Hands Ko Op Helping Hands Ko-Op is requesting $100,000 for its Feeding with Dignity in Miami program, which provides kosher food to approximately 4,000 low-income individuals and families annually. This is their first funding request. The funds will support a 10% expansion to serve 4,400 people, improve food quality and variety, and address increased need due to a federal funding freeze. CMB Office of Housing The program provides monthly grocery deliveries to elderly and Community Services residents. General Funds are leveraged to ensure 104 elderly (OCS) - Grocery resident households receive pantry essentials and suitable Assistance Program nutritional support critical for a positive quality of life. $40,000 in Public Services funds were set aside via Resolution 2025-33518. One application was received for CDBG economic development project:

Hispanic Business Initiative Fund Inc. DBA Prospera

The project will provide technical assistance to small businesses throughout the City of Miami Beach. PROSPERA will perform the following: 8 educational seminars, counsel 20 small business owners and entrepreneurs in a one-on-one manner on business

start-up, planning, expansion, and readiness to access micro loans and provide advancement services for 6 small businesses. This request is an increase in funding from $50,000 to $55,000 from the prior year.

There is $128,740.00 available for FY 2025 Public Services, while applications for these services total $305,629.00. The Administration proposes funding repeat applications at the same levels as the previous year, as these are established projects with consistent expenditure of funds. With the exception of Friendship Circle, funding will be prorated based on the actual number of low- income Miami Beach participants served. To avoid further reductions to these programs, the 4% decrease in CDBG funding from last year will be applied to the grocery assistance program, which has historically been managed by the Office of Housing and Community Services but will transition to Helping Hands Ko Op for FY 2025. Helping Hands originally applied for funding under a different public service initiative, but given their strong experience in food distribution, transitioning the grocery assistance program to them was determined to be a strategic fit that allows the City to continue providing essential services while ensuring efficient program administration. As part of this transition, the $34,842.00 in CDBG funds originally planned for grocery assistance, along with an additional $27,000 in general funds, will be granted to Helping Hands to support its continued management of the program.

There is no cap on CDBG economic development projects; therefore, the Prospera project will be fully funded. This is the second year of the project, which offers technical assistance to small businesses across the city.

The Administration recommends allocating the remaining $502,876.00 in CDBG funds toward the acquisition of a property for affordable housing. This activity supports the City’s goals to increase affordable housing options for low- and moderate-income residents. Additionally, property acquisition can be completed relatively quickly, which helps meet CDBG timeliness requirements.

Below are the recommendations for the CDBG Program:

CDBG – Public Services

Agency/Program

UNIDAD of Miami Beach – Project Link Boys & Girls Clubs of Miami-Dade AYUDA, Inc. UNIDAD – Senior Recreation & Language Programming Friendship Circle

Helping Hands Ko Op

Requested Funding

$24,000.00

$45,000.00 $23,629.00

$23,000.00

$50,000.00

$8,820.00 $34,842.00 CDBG + $100,000.00 $28,848.45 GF= $61,842.00 Total $128,740.00 CDBG

CDBG – Economic Development

Requested Funding

Agency/Program

Hispanic Business Initiative Fund Inc. (Prospera)

$55,000.00

% of Request Funded

Proposed Funding

Beneficiaries

$14,000.00 58%

$35,000.00 $21,638.00

78% 92%

320 20

$14,440.00 63%

18%

14

104

62%

% of Request Funded

Proposed Funding

Beneficiaries

$55,000.00 100%

CDBG – Affordable Housing & Administration

Activity

Property Acquisition - CMB Planning and Administration (20% cap) - CMB

In addition to the funding recommendations above, the Administration will contract Housing Opportunities Project for Excellence, Inc. (HOPE, Inc.) to provide HUD-mandated fair housing services for $20,000. HOPE, Inc. would continue providing housing education workshops to residents and participate in outreach events citywide. Program administration funds will fund this mandated service. Although not currently funded by the City, HOPE, Inc. also investigates allegations of Fair Housing Act violations for residents who believe they are victims of discrimination.

HOME 2025 Funding

The City received one HOME funding application for FY 2025, submitted by JCS Cares Housing, proposing a large-scale affordable housing development on the Fienberg Fisher campus. The application requested $100,000 to cover legal fees, architectural design, permitting, and administrative costs over a two-year period. While the project aligns with community housing goals, the proposal did not meet several key federal requirements necessary for the commitment of HOME funds. Specifically, the project remains in an early conceptual stage and lacks confirmed financing, a comprehensive development budget, and a long-term operating pro forma.

The HOME Program rules require each entitlement community to reserve a minimum of 15% of its annual allocation for activities undertaken by qualified Community Housing Development Organizations (CHDO). A CHDO is a private nonprofit, community-based service organization that has identified the development of affordable housing as its primary mission and can develop affordable housing. In addition, a CHDO must meet certain requirements pertaining to its legal status, organizational structure, capacity, and experience. Currently, there is no certified CHDO.

As required by HUD, the City will allocate 15 percent of the HOME funds to the CHDO set-aside and 10 percent for program administration. The remaining balance of $364,441.06 will be combined with CDBG funds to support the acquisition of a property for use as affordable housing, maximizing the impact of both funding sources.

Below are the recommendations for the HOME Program:

Activity

Affordable Housing - Property Acquisition CHDO Set-Aside 15% (Community Housing Development Org.) Planning and Administration (10% cap)

To further support this acquisition, the City will reprogram prior year HOME funds originally set aside for CHDO-related activities. This approach ensures timely and effective use of both current and prior year funds in compliance with HUD requirements.

Prior Year Funds Amount Funding Source

Activity

$33,807.65 $100,793.00

Affordable Housing - Property Acquisition

Citizen Participation In accordance with the Citizen Participation Plan, the City advertised a notice of public hearing and public 30-day comment period (March 31, 2025 – April 29, 2025) for community

Proposed Funding

$502,876.00 $171,654.00

Amount

$ $ $

364,441.06 72,888.00 48,592.00

Original Activity

HOME FY 2022 HOME FY 2023

CHDO Operating Costs CHDO Set-Aside

development needs. The public hearing was held on April 15, 2025. The City advertised a Notice of a 30-day public comment period (June 2, 2025 – July 1, 2025) and public hearing for the draft Action Plan and substantial amendment. The public hearing was held on June 17, 2025.

Public comments received will be included in the submission of the Action Plan to HUD for final review and approval.

FISCAL IMPACT STATEMENT

HOME: $858,270.00 CDBG: $485,921.06

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

N/A

CONCLUSION

The Administration recommends adopting the Resolution.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Housing and Community Services

Sponsor(s)

Co-sponsor(s)

Condensed Title

2025 Action Plan for CDBG and HOME Funds. HCS

Previous Action (For City Clerk Use Only)