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Item G3 G.3 BOARD OF COUNTY COMMISSIONERS C ounty of M onroe Mayor Sylvia Murphy, District 5 Mayor Pro Tem Danny Kolhage, District 1 TheFloridaKeys Michelle Coldiron, District 2 Heather Carruthers, District 3 David Rice, District 5 County Commission Meeting January 23, 2019 Agenda Item Number: G.3 Agenda Item Summary #5129 BULK ITEM: No DEPARTMENT: Land Authority Governing Board TIME APPROXIMATE: STAFF CONTACT: Charles Pattison (305) 295-5180 9:15 AM Land Authority AGENDA ITEM WORDING: Approval of a resolution authorizing the assumption and subordination of the Lan affordable housing development located in Key Largo. ITEM BACKGROUND: The Land Authority was approached by a non-profit 501(c)(3) corporation, Rural Neighborhoods, to ask that we agree to a loan subordination that would allow it to assume ownership of an existing 66 unit rental affordable housing project located at 100 Hammocks Trail in Key Largo. The proposed purchase price is $7,100,000. Rural Neighborhoods seeks to refinance the primary mortgage and assume subordinate mortgages and promissory notes held by Florida Housing Finance Corporation ($2,900,000) and the Land Authority ($1,089,000). The primary mortgage would increase from the current $3,500,000 to $3,750,000. The Land Authority is currently in third position with our loan, and this would not change if the proposed transaction occurs. Also, Rural Neighborhoods proposes to extend the existing 50 year affordable housing restrictions from the date of the execution of the loan subordination documents (current remaining term is 32 years) for an additional 50 years. In addition, it would recapitalize the existing Tradewinds Hammock Apartments reserves (currently $8,000) to a healthier $150,000. These funds would be used for ongoing repairs and maintenance, including roof and HVAC replacement. ADVISORY COMMITTEE ACTION: The Advisory Committee considered this request at its December 19, 2018 meeting, and determined that our General Counsel was comfortable with this proposal. Staff also spoke with FHFC representatives familiar with this request which is being favorably reviewed at this time. The Advisory Committee then voted 5/0 to recommend approval of this resolution with the following conditions: 1. Inclusion of affordable housing restrictions running in favor of Monroe County for a term of at least 99 years; and 2. Packet Pg. 928 G.3 HOME Loan. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Resolution Assumption SubordinationAgreement FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Charles Pattison Completed 01/08/2019 4:09 PM Kathy Peters Completed 01/08/2019 4:11 PM Board of County Commissioners Pending 01/23/2019 9:00 AM Packet Pg. 929 G.3.a Attachment: Resolution (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 930 G.3.a Attachment: Resolution (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 931 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 932 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 933 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 934 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 935 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 936 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 937 G.3.b Attachment: Assumption (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Packet Pg. 938 Attachment: SubordinationAgreement (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Attachment: SubordinationAgreement (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination) Attachment: SubordinationAgreement (Approval of a resolution regarding Tradewinds Hammock Apartments Mortgage Subordination)