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Item C2 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: November 22, 2000 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a resolution authorizing the purchase and conveyance of property for the purpose of providing affordable housing in partnership with Monroe County Housing Authority. Item Background: This item is proposed to assist the Monroe County Housing Authority (MCHA) in providing affordable housing for the long term in the form of single-family homes for rent. The subject property consists of three vacant lots in Johnsonville subdivision on Big Coppitt Key. Once this property has been purchased, the Land Authority will subsequently impose permanent deed restrictions and convey the property to MCHA for development with single-family homes on each of the three lots. MCHA will in turn rent the homes to persons having household incomes of 100% or less of the county median (currently $49,300 per year) and otherwise qualifying under MCHA's affordability policy and Monroe County regulations. Rents will not exceed 30% of the applicable household income category. Based on the current income statistics for Monroe County, maximum monthly rents will be $1,230 for median income families, $986 for low income families, and $616 for very low income families. The actual rents may be lower, depending on the availability of other grant funding. The Land Authority's standard purchase contract will be used for this purchase. The property's current assessed value is $50 per lot. The agenda packet spreadsheet lists the legal description, purchase price, and closing costs for this transaction. Advisory Committee Action: The proposed purchase price is within the guidelines approved by the Advisory Committee on October 18, 2000 by a 5/0 vote. The Advisory Committee will review the proposed deed restriction on November 15, 2000. Previous Governing Board Action: On June 15, 2000 the Board approved Resolution 04-2000 endorsing the purchase of subdivision lots in partnership with the Monroe County Housing Authority for development as affordable single-family and duplex rental housing. Staff Recommendation: Approval. Total Cost: $ 89,566.00 Budgeted: Yes X No Cost to Land Authority: $ 89,566.00 . Approved By: Attorney ~ ~OMB~p~urc~ Executive Director Approval: ark J. Rosch Risk Management Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #2 Property Johnsonville (PB 1-53) Block 9, Lots 10, 11 & 12 Hernandez FY 01 Plan 2000 FL Keys ACSC Less Previous Encumbrances Less Proposed Encumbrances Unencumbered Balance Purchase Price $88,500,00 $1,573,600.00 ($232,431.00) ($89,566.00) $1,251,603,00 PURCHASE CONTRACTS 11/22/00 Envr. Audit, Survey or Clean-up N/A Title Insurance $617,50 Attorney Fee $442,50 Recording Fee $6,00 Acquisition Total $89,566,00 RESOLUTION NO, A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE PURCHASE AND CONVEYANCE OF PROPERTY FOR THE PURPOSE OF PROVIDING AFFORDABLE HOUSING IN PARTNERSHIP WITH THE MONROE COUNTY HOUSING AUTHORITY. 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, and 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, on June 15, 2000, the Land Authority Governing Board adopted Resolution 04- 2000 pertaining to Monroe County Housing Authority Plan 2000, which includes the strategy of scattered site single-family and duplex rental housing as a means of providing long-term affordable housing in a manner consistent with the community character of the Keys; and WHEREAS, as a means of implementing the scattered site rental strategy, Resolution 04-2000 calls for the Land Authority to purchase vacant subdivision lots and convey same to the Monroe County Housing Authority, subject to deed restrictions addressing affordability requirements; and WHEREAS, the Land Authority Advisory Committee considered this resolution at meetings held on October 18, 2000 and November 15, 2000 and recommends ; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. The Chairman of the Land Authority Governing Board is hereby authorized to sign the Land Authority's standard purchase contract for the purchase of Block 9, Lots 10, 11, and 12, Johnsonville subdivision (PB 1-53) on Big Coppitt Key (hereinafter "subject property") at a purchase price of $88,500.00. Section 2. At closing, the Chairman of the Land Authority Governing Board is hereby authorized to sign a deed conveying the subject property to the Monroe County Housing Authority. Said deed shall restrict future use of the property to the guidelines specified in Section 3 below. Section 3. Future use of the subject property is limited to residential development for occupancy by very low, low, or moderate income persons as defined in section 420.0004, Florida Statutes, and as further restricted by Monroe County regulations and the Key West Housing Authority rental affordability policy in Attachment A. Notwithstanding the 50-year affordability period in the Housing Authority affordability policy, this deed restriction shall not expire and may only be released by the Land Authority. Page 1 of 2 PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 2000. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Executive Director Nora Williams Chairman Approved for Legal Sufficiency Larry R. Erskine Page 2 of 2 ATTACHMENT A Monroe County Housing Authority Rental Affordability Policy POLICY - The Authority's rental Affordability Policy shall be as follows: 1. Income targeting shall be at 80% of median adjusted for family size. Income targeting may increase to 120% to maintain occupancy levels and financial feasibility but not to exceed 40% of project units. 2. Rental rates shall be the same as the Housing Credit Program as adjusted annually. 3. The period of affordability shall be 50 years. 4. The compliance requirements shall be the same as the Housing Credit Program as contained in the Florida Housing Finance Corporation Compliance Manual and shall be the responsibility of the developer to insure compliance annually. 5. The program requirements for the Housing Credit, Mortgage Revenue Bond, State Apartment Incentive Loan and Home programs when competitively obtained require lower income targeting (rents), which take precedence when utilized. 6. The U.S. Department of Housing and Urban Development occupancy requirements (family composition) shall be adhered to, as it pertains to maximum occupancy only. <( ~~ Oeo ~ u. w ~ ;;f~~ ~lt) ~C'\I o z ~~ w::.: ~ ~ :::l U) w Q~ 0::.: :::l o ~~ u. <( c:o w~> 3c:w o<(~ ~<!) :::l U) <( o C2 o ....J u. U. o ~ ~ li; t- iii~ :>'::3 I\... - - ) VV '-i i! ; O~I; 1 ~ _:....1'........ : ___~ ,.... ~?_ 0 '" - ..... 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I~':..."'" \ of. . . 1 .,. ~~~ ... ~ ~~ 10 Island Big Coppitt Key Property Johnsonville Subdivision and Coppitt Subdivision .