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Item F2LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: March 19, 2008 Division: Land Authority Bulk Item: Yes No X Contact / Phone #: Mark Rosch / 295-5180 Agenda Item Wording: Approval of a resolution authorizing the conveyance of 304 Truman Avenue in Key West to Bahama Conch Community Land Trust of Key West, Inc. for affordable housing. Item Background: The subject property consists of a dilapidated single-family home built in 1923 on a 2,365 square foot lot located at 304 Truman Avenue in Key West. Bahama Conch Community Land Trust of Key West, Inc. (BCCLT) proposes to redevelop the site with affordable housing. The City of Key West nominated the property for acquisition in 2003 but the acquisition process has been delayed by title issues. The Land Authority entered into a contract to purchase the property in 2005 and after two lawsuits to clear the property title involving 23 heirs, the Circuit Court has authorized the sale of the property to the Land Authority. The proposed resolution will allow the Land Authority to subsequently convey the property to the BCCLT subject to affordable housing deed restrictions. Advisory Committee Action: On January 24, 2008 the Land Authority Advisory Committee voted 4/0 to approve this item. Previous Governing Board Action: On March 16, 2005 the Board approved a contact to purchase the property. The Board has authorized the conveyance of other affordable housing properties to BCCLT. Contract/Agreement Changes: This is not a contract Staff Recommendation: Approval. Total Cost: $535.50 Budgeted: Yes X No Cost to Land Authority: $535.50 Source of Funds: Land Authority (Tourist Impact Tax collected within Key West) Approved By: Attorney X County Land Steward Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item Conveyance to BCCLT 03/19/08 Sales Envr. Audit, Survey Title Attorney Recording Total Property Price or Clean-up Insurance Fee Fee Costs 304 Truman Avenue $0.00 $0.00 $0.00 $500.00 $35.50 $535.50 RE# 00025580-000000 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE CONVEYANCE OF REAL PROPERTY LOCATED AT 304 TRUMAN AVENUE IN KEY WEST TO BAHAMA CONCH COMMUNITY LAND TRUST OF KEY WEST, INC. FOR AFFORDABLE HOUSING. 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 and dispose of interests in real property for the purpose of providing affordable housing; and WHEREAS, Key West City Commission Resolution 03-376 nominates 304 Truman Avenue (hereinafter "subject property") for purchase by the Land Authority as an affordable housing site in partnership with Bahama Conch Community Land Trust of Key West of Key West, Inc.; and WHEREAS, on March 16, 2005 the Land Authority Governing Board approved a contract to purchase the subject property; and WHEREAS, said contract is anticipated to be approved in judicial proceedings to quiet title and staff is preparing to close the transaction; and WHEREAS, the Land Authority Advisory Committee considered this resolution at a meeting held on January 24, 2008 and voted 4/0 to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: The Chairman of the Land Authority Governing Board is hereby authorized to sign a deed conveying title to 304 Truman Avenue in Key West, more particularly described in Exhibit A, to Bahama Conch Community Land Trust of Key West, Inc. Said deed shall restrict future use of the property as specified in Exhibit B. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 2008. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Charles "Sonny" McCoy Executive Director Chairman Approved for Legal Sufficiency Larry R. Erskine EXHIBIT A On the Island of Key West, and map of said Island, delineated part of tract Ten (10), but now lot Seven (7) of Square One (1) to a diagram of said Tract ten and recorded in Plat Book One, Florida, public Records. known on Wm. A. Whitehead's in February A. D. 1829 as a better known as a part of of Tract Ten (10), according (10) drawn by Edward C. Howe page 25, of Monroe County, Commencing at a point on Division Street distant Northeasterly from the corner of Thomas and Division Streets Fifty (50) feet and Three (3) inches and running thence in a Northeasterly direction along Division Street Twenty-five (25) feet, more or less; thence at right angles in a Southeasterly direction Ninety-four (94) feet and Seven (7) inches; thence at right angles in a Southwesterly direction Twenty-five (25) feet, more or less; thence at right angle, in a Northwesterly direction Ninety-four (94) feet and Seven (7) inches, back to Division Street the place of beginning. RE #00025580-000000 EXHIBIT B AFFORDABILITY COVENANTS 1. Affordability Period. These affordability requirements shall run with the property in favor of the Monroe County Comprehensive Plan Land Authority (hereinafter "MCLA") and shall not expire. 2. Income Limits, Use and Transfer Restrictions. Bahama Conch Community Land Trust of Key West, Inc. (hereinafter "BCCLT") shall make the property available as either ownership housing or rental housing in accordance with the conditions specified below. 2.1. Ownership Housing. BCCLT shall retain title to the land under ownership housing and shall not subsequently transfer title to the land without prior written approval of MCLA). Ownership of the improvements, together with a leasehold interest in the land, may be conveyed by BCCLT subject to the following conditions. 2.1.1. Use and Occupancy. The subject property shall be owner occupied and used as the homeowner's primary residence and such other uses incidental to residential use as may be permitted by local zoning and land use regulations. 2.1.2. Income Qualified Buyers. Except in the case of inheritance by the owner's spouse, children, or a member of the household who has resided on the premises for at least a year prior to conveyance by gift or estate, ownership shall be restricted to households earning less than or equal to 160% of the Monroe County median income adjusted for household size at the time of conveyance (hereinafter "Income Qualified Buyer"). 2.1.3. Affordability. For ownership housing, monthly housing costs, defined as principal, interest, taxes, insurance (PITI), homeowner association fees [if any] and ground rent, shall not exceed the annual adjusted gross household income multiplied by 0.30 and divided by 12, all in accordance with §420.0004, Florida Statutes. 2.1.4. Resale Limits. The leasehold estate and the improvements located thereon may be transferred, subject to the provisions of Paragraph 2.1.2 above, provided the transfer price does not exceed the sum of the price the current owner paid plus 25% of the amount by which the unrestricted market value of the improvements may have appreciated during the current owner's period of ownership. 2.1.5. Special Provisions. (None) 2.2. Rental Housing. BCCLT shall retain title to the land and improvements and shall not subsequently transfer title to same without the prior written approval of MCLA. 2.2.1. Use & Occupancy. The subject property shall be operated, managed and otherwise administered as permanently affordable rental housing and such other uses incidental to residential use as may be permitted by local zoning and land use regulations. 2.2.2. Income Qualified Tenants. Occupancy of rental housing units shall be restricted to households earning less than, or equal to, 160% of the Monroe County median income adjusted for household size at the time of initial occupancy (hereinafter "Income Qualified Tenant"). 2.2.3. Affordability. For rental housing, affordable shall be defined as monthly housing costs (defined as rent plus utilities not provided by owner) that do not exceed the annual adjusted gross household income multiplied by 0.30 and divided by 12, all in accordance with §420.0004, Florida Statutes. 2.2.4. Special Provisions. (None) 3. Profit. BCCLT is a not -for -profit corporation. BCCLT is prohibited from earning profit on the subject property. 4. Refinancing Limits. BCCLT shall be prohibited from encumbering the land for any purpose without the prior approval of MCLA, except for encumbrances for projects resulting in capital improvements to the property. 5. Affordability Monitoring. BCCLT will be responsible for ensuring these affordability requirements are maintained. Whenever the leasehold estate is transferred BCCLT shall provide certification to the MCLA documenting these affordability requirements have been met. Covenants Acknowledged and Accepted by Bahama Conch Community Land Trust of Key West, Inc. 0 James Marquardt, President Date: RESOLUTION NO. 03-376 A RESOLUTION OF THE C ITX GOMKISSION OF THE CITY OF KEY WEST, FLORIDA, NOKENATING THE PROPERTY LOCATED AT 304 TRUKAN AVENUE FOR PURCHASE BY THE MONROE COtrh"M LAM A=OR=TY ON BEHALF OF THE BA'HAMA CONCH COMX=TY LAND TRUBT (DCCLT) i PROVIDING FOR AN 3P7M=1VS DATE BE IT RESOLVED BY THE CITY COMMJ.S5IUN Uk' '1M CITY OF KEY VEST, FLORIDA? AS FOLLOWS: Section 1: That the property located at 304 Truman Avenue is hereby nominated to the Monroe County Land Authority as an affordable housing purchase for $COLT. Section 21 That this Resolution shall go into effect immediately upon its passage and adoption and authenticaticn by the signature of the presiding officer and the Clerk of the Commission. Passed and adopted by th* City COMMiRaican At a TnPi?t-.ing hA-1d this 5 day of November 2003. Autheatic:ated Ly L"he pctts.Ldilsy uLLic er= 4:4 Clez-k vL the Commission on November 4 1--ZU 3 . Filed with the Clerk _/ November j6 , 200:� . MAYORJIMMY W*11KI", r a� E-