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Item C4 lAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: January 18, 2001 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Discussion of Phase 2 of the Tradewinds Hammocks affordable housing proposal. Item Background: The Land Authority has committed $1,089,000 as the local contribution toward Phase 1 of Tradewinds Hammocks, a 66-unit, multi-family rental affordable housing development behind the Trade Winds Shopping Center on Key Largo. Phase 1 has received all local development approvals and is poised to receive tax credit and HOME loan funding from the Florida Housing Finance Corporation (FHFC), subject to a favorable underwriting review. The developers would now like to proceed with Phase 2 of the development, which would consist of an additional 56 units and amenities on a site adjacent to Phase 1. Although the County has issued a conditional use approval for Phase 2, several conditions of this approval remain outstanding, such as obtaining 56 ROGO allocations and cesspit credits, securing access to the site, and abandoning a road. Thus from a regulatory standpoint, Phase 2 is not ready to be permitted. Prior to resolving these regulatory issues the developers would like to submit a funding application to the FHFC and request a commitment from the Land Authority for a $924,000 local contribution. Given the uncertainty that Phase 2 will receive the required 56 ROGO allocations, staff requests direction from the Board as to whether to schedule a special meeting in the Upper Keys to consider the funding request in time for this year's February 26, 2001 FHFC application deadline. Advisory Committee Action: This item will be considered at the January 11, 2001 Advisory Committee meeting. Previous Governing Board Action: The Board has not considered Phase 2. The Board approved funding for Phase 1 on February 28, 2000 and April 20, 2000. Staff Recommendation: To be determined. Total Cost: $ To be determined Budgeted: Yes No Cost to land Authority: $ To be determined. Approved By: Attorney Executive Director Approval: ~C0=- ark J. Rosch Risk Management Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #4 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY APPROVING A MORTGAGE AGREEMENT AND PROMISSORY NOTE FOR USE WITH TRADEWINDS HAMMOCKS, LTD. (PHASE 2) TO PROVIDE AFFORDABLE HOUSING AND AUTHORIZATION FOR THE CHAIRMAN TO EXECUTE THE ASSOCIATED FLORIDA HOUSING FINANCE CORPORATION APPLICATION FORM. WHEREAS, section 380.0666(3), Florida Statutes (FS) and section 9.3-2, Monroe County Code, empower the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") to acquire an interest in real property for the purpose of providing affordable housing to very low, low, or moderate income persons as defined in section 420.0004, FS, where said acquisitions are consistent with a comprehensive plan adopted pursuant to Chapter 380, FS; and WHEREAS, MRT of the Florida Keys, L.L.C., a limited liability company and Heritage Rural Housing, Inc., a Florida corporation, propose to form Tradewinds Hammocks, Ltd., a limited partnership (hereinafter "Owner") for the purpose of constructing, owning, and operatingGG 56 units of affordable rental housing known as Phase 2 of Tradewinds Hammocks (hereinafter "housing development") on Key Largo to provide housing for persons of very low and low incomes for a period of 50 years; and WHEREAS, in order to finance the $7,55Q,eQe $ total cost of the housing development, the Owner proposes to apply on M~r~h a, 200Q February 26, 2001 for tax credits and a HOME loan from the Florida Housing Finance Corporation (hereinafter "FHFC"), a public corporation created within the Florida Department of Community Affairs pursuant to section 420.504, FS; and ' WHEREAS, the application process for the FHFC tax credit program is highly competitive and awards maximum points to those applicants providing a local contribution in the amount of $500,000 $250,000 or ~ 10% of the total project cost ~$177,Qa5 $ ), whichever is less; and WHEREAS, the Owner states that it is necessary to receive subsidies in the form of a $1,OaQ,OOO $924,000 mortgage loan from the Land Authority and $a7,a4e $ in impact fee waivers from Monroe County in order to make this project financially feasible; and WHEREAS, the Land Authority Advisory Committee considered this proposal at a meeting held M~rch 22, 200Q January 11, 2001 and voted _ to recommend approval of the loan subject to the requirements contained in this Resolution; and WHEREAS, the Governing Board wishes to approve the Advisory Committee's recommendations; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Page 1 of 3 of a zero-interest, 50-year loan in the amount of$1,OaQ,000 $924,000 in support of the Owner's application to FHFC for a HOME loan in the amount oU2,QOO,000 $ and tax credits in the annual amount of $1 eQ,232 $ for ten years for the housing development. Section 2. On gr ~bgblt M~rch J1, 2000, the Land Authority Executive Director is authorized to disburse $QJJ,OOO $700,000 to the Owner provided all of the following conditions have been satisfied. a) The Owner has provided to the Land Authority a copy of the completed application for tax credits and a HOME loan and proof that the Owner submitted said application to FHFC by the M~rcR a, 2000 February 26,2001 application deadline. b) The Monroe County Planning Director has provided notice that theee b1nit 56-unit affordable housing project on Tr~~t E Lots 1-14 as described in Attachment A has been fully approved for development, including the granting of 56 ROGO allocation and 56 cesspit credits. c) The Land Authority's legal counsel has provided notice that the Owner has executed in favor of the Land Authority a zero-interest, 50-year first mortgage agreement and promissory note for the amount of $Q1J,000 $700,000 encumbering the property described in Attachment A (~II gfTr~ct E Lots 1-14). In the event FHFC has not awarded the tax credit and HOME loan commitment by the conclusion of two application cycles, beginning with theM~rch a, 2000 February 26, 2001 cycle, the Owner shall convey the property described in Attachment A to the Land Authority, free and clear of all encumbrances, together with all development rights and approvals, including but not limited to ROGO allocations and cesspit credits, necessary for development of the ee 61nit 56-unit affordable housing project on the property described in Attachment A. d) The Land Authority's legal counsel has provided notice that use of the property described in Attachment A has been permanently restricted by deed restriction as follows: 1. the property is to be used only for housing for very low, low, or moderate income persons as defined in section 420.0004, FS; 2. said deed restriction shall also reference the affordable housing requirements of the Monroe County Land Development Regulations and shall impose said requirements permanently, notwithstanding the normal 20 or 25 year period of said regulations; and 3. in accordance with the Memorandum of Understanding between Monroe County and Department of Community Affairs dated December 27, 1999, persons currently or formerly housed in an illegal downstairs enclosure who have or will be displaced as a result of the removal of said enclosures and who meet all applicable affordability requirements shall be given first priority when the Tradewinds Hammocks housing occupants are selected. Section 3. The Land Authority Executive Director is authorized to disburse$1/ae,000 $224,000 to the Owner provided all of the following conditions have been satisfied. a) The Land Authority's legal counsel has provided notice that the Owner has secured the tax credits, HOME loan, and construction loan necessary to build the ee b1nit 56-unit project as described in Attachment B. b) The Land Authority's legal counsel has provided notice that the Owner has executed in favor of the Land Authority a zero-interest, 50-year first mortgage agreement and promissory note for the amount of$1,OaQ,000 $924,000 encumbering the property described in Attachment A (~II gf Tr~ct E Lots 1-14) and replacing the mortgage and note described in Section 2(c) above. Page 2 of 3 Section 4. The Land Authority will subordinate the mortgage referenced in Section 3(b) above only to the following loans obtained by the Owner in furtherance of developing the property: a conventional first mortgage, a second mortgage in favor of FHFC with 20-year term, and a third mortgage in favor of a member of the Federal Home Loan Bank with a 1 O-year term. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a special meeting on this day of 2001. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Executive Director Nora Williams Chairman Approved for Legal Sufficiency Larry R. Erskine Page 3 of 3 ATTACHMENT A Lots 1 through 14 inclusive, Industrial Acres subdivision, according to the Plat thereof as recorded in Plat Book 5 at Page 15 of the Public Records of Monroe County, Florida. ATTACHMENT B Phase 2 Tradewinds Hammock GG UAit 56-Unit Affordable Housing Development Financing Local Contributions Land Authority Mortgage County Impact Fees of $a7,a<1g $ FL Housing Finance Corporation (State Contributions) Tax Credit Equity HOME Loan Conventional First Mortgage (Private Lender) Purchase Money Mortgage (Seller Financing) Deferred Developer's Fees $1,OaQ,OOO fees waived $1,1eQ,412 $2, QOO, 000 $1,501,02e $0 $700,2~a Total Project Cost $7,55Q,gQe $924,000 fees waived $ $ $ $ $ $ Housing Type and Affordability Income % of Median Net Size Net Rent Unit Type # of Units Level Income (sq. feet) (per month) Efficiency-1/1 ~ 2 Very Low 28% 700 $220.00 Efficiency-1/1 0 0 Very Low 50% 700 $422.38 Efficiency-1/1 i 6 Low 60% 700 $514.00 Subtotal ~ 8 2 BRI 2 Bath G 4 Very Low 28% 890 $263.00 2 BR/ 2 Bath ~ 2 Very Low 50% 890 $506.25 2 BRI 2 Bath ~ 23 Low 60% 890 $616.00 Subtotal ~ 29 3 BRI 2 Bath ~ 3 Very Low 28% 1050 $299.00 3 BRI 2 Bath ~ 1 Very Low 50% 1050 $579.88 3 BRI 2 Bath ~ 1.9. Low 60% 1050 $707.00 Subtotal 20 19 Total Units GG 56 . uo(>;"; 5\ ;t~~ ~ ~ ~ 00 ~5 o~ <{~ Q~ C::z 0- -I<{ u..~ D Oz ~j) ~g a <{ Q>- C::<{ 00) ct w 0) c::~ w::> 0...0 ~~() ~ Q ~ (!) 4' ~ o Zoning Map ~ <i~.I. 1./ ,':1 1 jI ~dIJ- 1 11 . l' [~~- 17 ....-----l '. "or D ~ . 11 . ~~ !\~ . 1. ~ CANAl. l- II URM '. ~.. . ~ . 11 t~ ~' " - ,~ ".? ~ 11 .l 7 . . to 11 11 1 r----- '. ~ '.,~ 7 1. . (~'-\~i 1. 11 1. ~ 1 '. ~O JEFfRY DR, .\, AVENUIE D ---,- I 11 11 ,. 11 ,""' - / ~ 1 ""'~1:: >--,; PROPOSED SITE _I- :u 24 :I, II aT Ie ~ - . - "'E C ~ I R ~ 1;) .. ---2 _..F' ~,Q,,". 1 I t i: ~ IAIIION ROAD . .... ,~ II Ie Z7 at H act ~ - ti( 1 "'jf" . ....t .. ~. .... 3 11 It . I 7 I . ,~ .. .." .......... oo~ . 1 o. 0 . t. C i .. .... '......... Ie I iii ~. ' .. .. .. .. ".. .." /. 1 1I 1~i, 1I1; .o~ 6r:- . Y' . . 0 . . ~o.~ . .. .. .. o. . . ,. M o . 0 ," .. .. . 0 . 17 11 ft .. 11 b .. 14 '. ..... o.~. .'~. "IU~ 1 . - . . . . . . . V NARAN.J,. ROAD -RD 10- '.t., .~ , J ,. ~i( .. ,- .. 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I I 7 I ~~ . 1 I 1 ~ ~ fA 11 11 11 17 11 11 1. 11 11 11 to , ,@ J - .nl S I H~CUI \>>~ HIIIICUS LANE LANE CANAL ~\\~ .1 a .. I 111" .. at 10 .. :I, ar a. al 14 .. II ,. 11 17,. 11 14 11 1a 11 10 . I 7 I . . 1 a 1 I 7 I . I 1 > , - SR ZONING MAP MAP NUMBER: 24-22 & 24-27 SCALE: 111"" 300' I / NA Tradewinds Affordable Housing Ttt~~ Page 7 of 30