Item F3LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: March 21, 2012 Division: Land Authority
Bulk Item: Yes No X Contact / Phone #: Mark Rosch / 295-5180
Agenda Item Wording: Update on Key West Housing Authority's purchase of Bahama Conch
Community Land Trust's affordable housing properties.
Item Background: The Key West Housing Authority (KWHA) is in the process of purchasing the
Bahama Conch Community Land Trust's (BCCLT's) affordable housing properties with federal grant
funds. The acquisition process is expected to be completed on or about March 6, 2012 and is
necessary to protect the affordable housing in anticipation of BCCLT wrapping up its corporate affairs.
The Land Authority's affordable housing deed restrictions are being handled as follows: for those
BCCLT properties that are not subject to ground leases and mortgages, the Land Authority is
proceeding as previously contemplated (terminating the existing affordable housing deed restrictions
and imposing new uniform affordable housing deed restrictions). For those BCCLT properties that are
subject to ground leases and mortgages, the Land Authority's existing affordable housing deed
restrictions will remain in place and BCCLT will assign its interest in the restrictions to KWHA. This is
being done to keep the restrictions in a priority position superior to the existing ground leases and
mortgages.
The BCCLT previously received a grant from the Department of Children and Families and the
Southernmost Homeless Assistance League to fund the renovation of some of the BCCLT properties.
Attached are two letters from KWHA addressing a dispute that arose concerning this grant and the
manner in which the dispute is being resolved.
Advisory Committee Action: N/A
Previous Governing Board Action: On April 20, 2011 and September 21, 2011 the Board approved
a total of seven resolutions authorizing the conveyance of seven BCCLT sites to KWHA. Each
resolution also authorized terminating the existing affordable housing deed restrictions and imposing
new uniform affordable housing deed restrictions.
Contract/Agreement Changes: N/A
Staff Recommendation: This is an informational item. No action is required.
Total Cost: $ Indirect Cost: $ Budgeted: Yes _ No
Cost to Land Authority: $ Source of Funds:
Approved By: Attorney County Land Steward
Documentation: Included: X
To Follow: Not Required:
Disposition: Agenda Item
Housing Authority of the City of Key West, Florida.
1400 Kennedy Drive, Key West, FL33040
Phone: (305) 296-5621 Fax: (305) 296-0932
TTY/Florida Relay Service (FRS) 1-800-955-8771
Board of Commissioners
Frank Toppino
Bob Dean
Mary Sanchez
"John G. Parks, Jr.
Roosevelt Sands, Jr.
February 17, 2012
Cecil Bain, President
Bahama Conch Community
Land Trust of Key West, Inc.
201 Truman Avenue
Key West, FL 33040
Dear Mr. Bain:
Executive Director
J. Manuel Castillo, Sr.
The Housing Authority participated in a meeting on the afternoon of Wednesday, February 151h,
which included Wendy Coles and Roger McVeigh, Southernmost Homeless Assistance League
(SHAL) representatives, Joe Albury, Bahama Conch Community Land Trust (BCCLT) Attorney
and me.
As a result of numerous meetings and correspondence with representatives from SHAL and the
Department of Children and Families (DCF) over the past year, the Housing Authority was under
the following understanding:
® The Housing Authority would acquire the properties that had been rehabilitated
with funds through SHAL.
® The Housing Authority agreed to adhere to the requirements of the grant
agreement (Lien), providing housing for families that are homeless.
® The Housing Authority would, upon acquisition of the property, convert the non -
dwelling space to dwelling space, at its own expense.
• If proceeds from the sale of all properties were insufficient to satisfy SHAL's
claim, no further action would be taken to capture said claim.
During the meeting of February 151h, a SHAL representative made threats of possible legal action
regarding SHAL's claim to the BCCLT in the amount of $160,703.81. We regret to notify you
that based upon these warnings of litigation; the Housing Authority will not be in a position to
acquire the properties involved in the dispute with SHAL.
oovonrunirr
Cecil Bain
Page 2
February 17, 2012
Our records indicate that properties involved are 303 and 305/307 Julia Street and 209 Petronia
Street, and may also affect 211 and 213 Petronia Street. The acquisition of all remaining
properties not involved in the dispute will continue as anticipated for a closing on March 1, 2012.
Please do not hesitate to contact me if there are any questions or with further developments. I
may be reached at 305-296-5621.
Sincerel x
Manuel Castillo, Sr.
Executive Director
JMC:cac
PC: Frank Toppino, KWHA, Chairman
Jack Spottswood, KWHA, Counsel
Shawn Smith, City Attorney
Bob Kelly, BCCLT, Executive Director
Joe Albury BCCLT, Counsel
Wendy Coles, SHAL, Executive Director
Trixie Phelan, Contract Manager, Dept. of Children and Families
Mark Rosch, MCLA, Executive Director
Larry Erskine, MCLA, Counsel
Housing Authority of the City of Key West, Florida
1400 Kennedy Drive, Key West, FL 33040
Phone: (305) 296-5621 Fax: (305) 296-0932
TTY/Florida belay Service (FRS)1-800-955-8771
Board of Commissioners
Frank Toppino
Bob Dean
Mary Sanchez
John G. Parks, Jr.
Roosevelt Sands, Jr.
February 23, 2012
Trixie Phelan, Contract Manager
Department of Children. and Families
1111 12th Street, #304
Key West, Florida 33040
Dear Ms. Phelan:
Executive Director
J. Manuel Castillo, Sr.
The Housing Authority is proceeding with plans for a March I" closing on Bahama Conch
Community Land Trust (BCCLT) properties and would like very much to include all properties
as originally planned. The Housing Authority, the BCCLT and the City of Key West remain
committed to this goal.
In an effort to resolve any disputes between the Department of Children. and
Families/Southernmost Homeless Assistance League and BCCLT, the Housing Authority is
amiable to the following:
® The units identified below will be set -side for the sole purpose of providing
housing for homeless individuals/families as defined in Florida Statutes 420-621
(5) (a)-(e). (see below)
® The term of the set -aside will be 5 years from date of closing.
• The current liens (expired and unexpired) will be released.
® A new lien in the amount of $160,703.81 will be recorded on the properties,
providing for proportionate reduction (20% annually) and subsequently vacated
over five years, unless the lien is satisfied prior to the five years.
® The release of current lien(s) and the recording of the lien will take place
simultaneously at the closing of the properties.
® Participation in the local homeless management information system for the term
of the lien.
Converting the non -dwelling space to dwelling space.
a>'Poxmnrsv
Trixie Phelan
Page 2
February 23, 2012
DCF/SHAL Units: (10 bedrooms = 10 units) or (12 bedrooms = 12 units)
303 Julia St.
(2- 3 bedroom unit)
305/307 Julia St.
(1- 2 bedroom unit) or (I- 4 bedroom unit)
209 Petronia St.
(1- 2 bedroom unit)
Homelessness Definition:
(5) "Homeless," applied to an individual, or "individual experiencing homelessness" means an
individual who lacks a fixed, regular, and adequate nighttime residence and includes an
individual who:
(a) Is sharing the housing of other persons due to loss of housing, economic hardship, or a
similar reason;
(b) Is living in a motel, hotel, travel trailer park, or camping ground due to a lack of alternative
adequate accommodations;
(c) Is living in an emergency or transitional shelter;
(d) Has a primary nighttime residence that is a public or private place not designed for, or
ordinarily used as, a regular sleeping accommodation. for human beings;
(e) Is living in a car, park, public space, abandoned building, bus or train station, or similar
setting;
I am hopeful that this will allow for the acquisition of the all the remaining properties, preserving
the units as affordable housing for homeless individuals/families. Please contact me if anything
further is needed.
SincerJOy;_,
aiiuel Castillo, Sr.
Executive Director
PC: Drank 'roppino, KWKA, Chairman
Jack Spottswood, KWHA, Counsel
Shawn Smith, City Attorney
Bob Kelly, BCCLT, Executive Director
Joe Albury BCCLT, Counsel
Wendy Coles, SHAL, Executive Director
Mark Rosch, MCLA, Executive Director
Larry Erskine, MCLA, Counsel