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
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Tradewinds Affordable Housing
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Page 7 of 30