Title
MOTION TO ADOPT PROPOSED RESOLUTION NO. 2025-R-43.
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA, AUTHORIZING THE REALLOCATION OF HOME INVESTMENT PARTNERSHIP PROGRAM CONSORTIUM COOPERATION AGREEMENT FUNDS FROM THE PURCHASE ASSISTANCE STRATEGY TO A NEW MULTI-FAMILY HOUSING STRATEGY, TO BE IMPLEMENTED WITH BROWARD COUNTY IN PARTNERSHIP WITH THE SOUTH FLORIDA COMMUNITY LAND TRUST (“SFCLT”), FOR THE PURPOSE OF PRESERVING AFFORDABLE HOUSING WITHIN THE CITY; PROVIDING FOR DISBURSEMENT OF HOME PROGRAM FUNDS; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE ANY NECESSARY DOCUMENTS TO EFFECTUATE THE REALLOCATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. The Planning and Economic Development staff has been working with the Broward County Housing Finance Division (which administers the Broward County HOME Consortium) to explore more effective ways to utilize the City’s HOME Investment Partnerships Program (HOME) funds.
2. At present, the City has available HOME funds (which include multi-year allocations and program income) that are quickly approaching HUD expenditure deadlines.
3. The City currently utilizes HOME funds for the Purchase Assistance strategy, designed to aid first-time home buyers. Unfortunately, the City has had difficulty expending these funds due to the program’s income and property value restrictions. As a result, the unspent HOME funds are at risk of being recaptured by the County, and ultimately by HUD, if federal timeliness requirements are not met.
4. In coordination with the County, an alternative strategy has been identified to effectively use the City’s HOME funds while continuing to serve Pembroke Pines residents. The County has recommended a partnership with the South Florida Community Land Trust (SFCLT), a nonprofit Community Housing Development Organization (CHDO) that was previously procured by Broward County through a competitive process and has partnered with the County for several years on affordable housing initiatives. SFCLT has a strong track record of developing and preserving affordable housing throughout South Florida using the community land trust model. A letter from SFCLT expressing interest and the proposed partnership is attached for reference.
SFCLT’s qualifications include:
• Development of housing in 13 South Florida cities
• Over $20 million in assets, including capital for new development
• A development pipeline of 475 homes, with 51 ready for construction
• Experience with both rental and homeownership projects serving households between 30%-80% AMI
• Financing partners such as Florida Community Loan Fund and JPMorgan Chase
• Creation of Florida’s first revolving CLT fund and an equity-based opportunity map
5. SFCLT has identified a 12-unit rental apartment building located at 7851 Johnson Street within the City for purchase. SFCLT plans to maintain the affordability of 10 units by setting rents aligned with residents’ incomes, prioritizing very low- to moderate-income households. The purchase will be financed using:
• City HOME funds.
• Broward County matching funds. (Broward County has provided a letter pledging matching funds for this project.)
• Remainder of the funding will be financed through the CLT.
6. After purchase, the SFCLT will perform necessary maintenance and will be responsible for the upkeep of the building. The SFCLT will ensure the affordability of the units are preserved in perpetuity.
7. To initiate the process, the County requires formal written authorization from an authorized City official to reallocate the available HOME funds. This action requires formal approval by the City Commission via the attached resolution. The proposed strategy is an eligible use of HOME funds.
8. As a member of the Broward County HOME Consortium, the City does not directly hold its HOME funds. These funds are retained and administered by the County, which disburses them on a reimbursement basis upon approval of eligible expenses and compliance with HUD regulations.
9. Upon City approval of this resolution, the City will reallocate the funds to the County. The County will oversee the use of these funds and work directly with the SFCLT to purchase and finance the property. The City will have no further involvement in the management or administration of these funds or the property, ensuring a clear and accountable transition.
10. Commission approval will allow staff to proceed with the necessary agreements and ensure the timely use of HOME funds to preserve affordable housing within the City.
11. Beyond the initial award, funding fluctuates due to recaptures, other adjustments, and expirations. According to the Broward County Housing Finance Division, the City has the following HOME fund allocations available for reallocation:
• FY 2022/2023: $352,569
• FY 2023/2024: $308,378
• FY 2024/2025: $343,347
Total: $1,004,294
12. The City will continue to have access to the 2025/2026 HOME grant funds to use toward future qualifying strategies, once funds are made available.
13. The City also receives yearly allocations of State (SHIP) and Federal (CDBG) grant funds that will remain available for purchase assistance and minor home repair programs. The City has been very successful in expending CDBG and SHIP funds due to their more flexible program requirements.
14. Administration recommends adopting proposed Resolution 2025-R-43 authorizing the reallocation of HOME funds from the Purchase Assistance strategy to a new Multi-Family Housing strategy for the purpose of preserving affordable housing within the City.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $1,004,294 HOME Grant Funds
b) Amount budgeted for this item in Account No: 121-554-0600-549216-0000-000-0000-HOM23, 121-554-0600-549216-0000-000-0000-HOM24,121-554-0600-549216-0000-000-0000-HOM25.
c) Source of funding for difference, if not fully budgeted: Grant Funds
d) 5 year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.