Item G3 G.3
t, BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Sylvia Murphy,District 5
The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
May 22, 2019
Agenda Item Number: G.3
Agenda Item Summary #5603
BULK ITEM: No DEPARTMENT: Land Authority Governing Board
TIME APPROXIMATE: STAFF CONTACT: Charles Pattison (305) 295-5180
9:15 AM Land Authority
AGENDA ITEM WORDING: Approval of a resolution rescinding Resolution 01-2019 and
authorizing the assumption and subordination of the Land Authority's mortgage loan for the
Tradewinds Hammock Apartments affordable housing development provided the total debt owed to
the primary lender and the Florida Housing Finance Corporation is substantially as originally stated
and does not exceed $6,650,000.
ITEM BACKGROUND: Tradewinds Hammock Apartments is a 66-unit affordable housing
development at 100 Hammock Trail on the ocean side of Key Largo near MM 101. The
development was originally financed by a private mortgage loan in first lien position, a $2,900,000
HOME loan in second lien position from Florida Housing Finance Corporation and a $1,089,000
mortgage loan in third lien position from the Land Authority. Last year Rural Neighborhoods,
Incorporated (RNI) entered into an agreement to purchase the development from Tradewinds
Hammocks, Ltd. for the price of $7,100,000 and requested approval to assume the Land Authority
loan and to have the Land Authority subordinate its loan to a private first mortgage in an amount of
up to $3,750,000. The Land Authority approved this request with conditions as memorialized in
Resolution 01-2019.
As the parties prepare to close the transaction, there has been a $200,000 shift of proposed financing.
RNI plans to pay down the HOME loan balance from $2.9 million to $2.7 million and increase the
private first mortgage loan from $3,750,000 to $3,950,000 with no change in the $6,650,000 total
debt authorized by Resolution 01-2019 to be superior to the Land Authority mortgage loan. The
proposed resolution will authorize this financing shift or any other financing shift that is
substantially as originally stated and does not exceed $6,650,000 of total debt superior to the Land
Authority mortgage loan.
ADVISORY COMMITTEE ACTION: On December 19, 2018 the Committee voted 510 to
approve Resolution 01-2019. On April 24, 2019 the Committee voted 510 to authorize changes to
the primary loan and HOME loan amounts provided they remain substantially as originally stated
and the combined debt of the primary loan and the HOME loan does not exceed the originally
approved amount of$6,650,000.
Packet Pg. 1514
G.3
PREVIOUS RELEVANT BOCC ACTION: On January 23, 2019 the Board approved Resolution
01-2019.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
ProposedResolution
ResolutionO l-2019
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Charles Pattison Completed 05/07/2019 4:41 PM
Kathy Peters Completed 05/07/2019 7:40 PM
Board of County Commissioners Pending 05/22/2019 9:00 AM
Packet Pg. 1515
G.3.a
RESOLUTION NO.
A RESOLUTION OF THE MONROE COUNTY g
COMPREHENSIVE PLAN LAND AUTHORITY RESCINDING
RESOLUTION 01-2019 AND AUTHORIZING THE ASSUMPTION
AND SUBORDINATION OF THE LAND AUTHORITY'S
MORTGAGE LOAN FOR THE TRADEWINDS HAMMOCK
APARTMENTS AFFORDABLE HOUSING DEVELOPMENT
PROVIDED THE TOTAL DEBT OWED TO THE PRIMARY
LENDER AND THE FLORIDA HOUSING FINANCE
0
CORPORATION IS SUBSTANTIALLY AS ORIGINALLY STATED
AND DOES NOT EXCEED $6,650,000.
WHEREAS, Tradewinds Hammock Apartments is a 66-unit development of affordable rental
housing located at 100 Hammocks Trail on Key Largo available to persons of low and very low
income levels; and
WHEREAS, in 2000 the Land Authority issued a 50-year, zero interest, mortgage loan to
Tradewinds Hammocks, Ltd. in the amount of $1,089,000 to subsidize the land cost of said U)
development; and
a
WHEREAS, in 2005 the Land Authority's loan was in third lien position behind $4,401,000 of
debt consisting of a $1,501,000 loan in favor of MMA Mortgage Investment Corporation and a
$2,900,000 HOME loan in favor of Florida Housing Finance Corporation; and
WHEREAS, Rural Neighborhoods, Incorporated, a Florida not-for-profit corporation and IRS
501(c)3 tax-exempt organization has entered into an agreement to purchase Tradewinds
Hammock Apartments from Tradewinds Hammocks, Ltd. for the price of$7,100,000; and
WHEREAS, to finance this purchase, Rural Neighborhoods, Incorporated is seeking a private 0
first mortgage loan in an amount of up to $3,950,000;
4-
WHEREAS, Rural Neighborhoods, Incorporated requests authorization to assume the
$1,089,000 Land Authority loan and to have the Land Authority subordinate its loan to said
private first mortgage loan; and
WHEREAS, if said request is approved, the Land Authority's loan will be in third lien position
behind up to $6,650,000 of debt consisting of a first mortgage loan of up to $3,950,000 and the g
$2,700,000 balance of the HOME loan in favor of Florida Housing Finance Corporation; and
0
U)
WHEREAS, the Board finds this financing is substantially the same as the original proposal
from Rural Neighborhoods, Incorporated recited in Land Authority Resolution 01-2019 (up to
$6,650,000 of debt consisting of a first mortgage loan of up to $3,750,000 and the existing
0.
$2,900,000 HOME loan in favor of Florida Housing Finance Corporation); and
a.
WHEREAS, on April 24, 2019 the Land Authority Advisory Committee voted 5/0 to authorize
changes to the primary loan and HOME loan amounts provided they remain substantially as
originally stated and the combined debt of the primary loan and the HOME loan does not
exceed the originally approved amount of$6,650,000; NOW, THEREFORE,
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Packet Pg. 1516
G.3.a
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND
AUTHORITY:
Section 1. The Land Authority hereby authorizes Rural Neighborhoods, Incorporated to
assume the $1,089,000 Land Authority loan.
0
Section 2. The Land Authority hereby authorizes subordination of its $1,089,000 loan to a
private first mortgage and the Florida Housing Finance Corporation HOME loan, provided the
amounts of said superior loans remain substantially as originally stated and do not exceed a
total $6,650,000. 0
Section 3. The Land Authority hereby adopts the following conditions to this consideration:
a) Inclusion of affordable housing restrictions running in favor of Monroe County with a term of 0
at least 99 years; and
b) Approval of the Florida Housing Finance Corporation's underwriting and its consent to the
assumption of the HOME loan in full or in part.
0
Section 4. The Chairman of the Land Authority Governing Board is authorized to execute the
documents necessary to implement the assumption and subordination authorized by this
Resolution provided said documents are acceptable to the Land Authority's legal counsel. U)
Section 5. Resolution 01-2019 is hereby rescinded.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this day of 2019.
Chairman Heather Carruthers
Vice Chairman David Rice
Commissioner Michelle Coldiron
Commissioner Danny Kolhage
Mayor Sylvia Murphy
4-
0
(Seal)
0
ATTEST: MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
0
U)
Charles G. Pattison Heather Carruthers
Executive Director Chairman
0.
a.
Approved as to form and legality:
Adele V. Stones, Esquire
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Packet Pg. 1517
G.3.b
RESOLUTION NO. 01-2019
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING
THE ASSUMPTION AND SUBORDINATION OF THE LAND
AUTHORITY'S MORTGAGE LOAN FOR THE TRADEWINDS
HAMMOCK APARTMENTS AFFORDABLE HOUSING
DEVELOPMENT.
0
WHEREAS, Tradewinds Hammock Apartments is a 66-unit development of affordable rental U)
housing located at 100 Hammocks Trail on Key Largo available to persons of low and very low
income levels; and E
WHEREAS, in 2000 the Land Authority issued a 50-year, zero interest, mortgage loan to
Tradewinds Hammocks, Ltd. in the amount of $1,089,000 to subsidize the land cost of said
development; and
WHEREAS, in 2005 the Land Authority's loan was in third lien position behind $4,401,000 of
debt consisting of a $1,501,000 loan in favor of MMA Mortgage Investment Corporation and a
$2,900,000 HOME loan in favor of Florida Housing Finance Corporation; and
a
WHEREAS, Rural Neighborhoods, Incorporated, a Florida not-for-profit corporation and IRS
501(c)3 tax-exempt organization has entered into an agreement to purchase Tradewinds
Hammock Apartments from Tradewinds Hammocks, Ltd. for the price of $7,100,000 with a
closing date of March 31, 2019; and
WHEREAS, to finance this purchase, Rural Neighborhoods, Incorporated is seeking a private
first mortgage loan in an amount of up to $3,750,000;
WHEREAS, Rural Neighborhoods, Incorporated requests authorization to assume the
$1,089,000 Land Authority loan and to have the Land Authority subordinate its loan to said
private first mortgage loan; and
4-
0
WHEREAS, if said request is approved, the Land Authority's loan will be in third lien position @
behind up to $6,650,000 of debt consisting of a first mortgage loan of up to $3,750,000 and the
existing $2,900,000 HOME loan in favor of Florida Housing Finance Corporation; and
WHEREAS, the Land Authority Advisory Committee considered this resolution on December 19,
2018 and voted 5-0 to recommend approval with conditions; NOW THEREFORE
N
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY:
Section 1. The Land Authority hereby authorizes Rural Neighborhoods, Incorporated to assume
the $1,089,000 Land Authority loan. U)
Section 2. The Land Authority hereby authorizes subordination of its $1,089,000 loan to a
private first mortgage in an amount not to exceed $3,750,000.
Section 3. The Land Authority hereby adopts the following conditions to this consideration:
(a) Inclusion of affordable housing restrictions running in favor of Monroe County with
a term of at least 99 years; and
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Packet Pg. 1518
(b) Approval of the Florida Housing Finance Corporation's undanwriting, approval of
the sale, and its consent to the assumption of the Florida Housing Finance Housing
Corporation's HOME Loan.
SectkonL4. The Chairman of the Land Authority Governing Board is authorized to execute the
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documents necessary to implement the assumption and subordination authorized by this
Resolution provided said documents are acceptable to the Land Authority's legal counsel.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at o o
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regular meeting onthis 23rd day of January 2019,
Chairman Heather Carruthers _YeL_
Vice Chairman David Rice _Yes__ cL
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Commissioner Michelle Co|diron _Yes�_
Commissioner Danny Ko|haQe -2is_
Commissioner Sylvia Murphy -Yca_-
ATTEGT: MONR{)E COUNTY COMPREHENSIVE +-
PLANLANOAUTHOR|TY
ChedesG, Pattiaun
Executive Director Cha|n�anH�s�her {�erruthera
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Approved aeto form and legality:
'^~—Jd—c=u
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Ade|eV. 8tunea, Esquire N
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