Item C2
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: April 20, 2000
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval of a resolution amending Resolution 02-2000 regarding the
Tradewinds Hammocks affordable housing development on Key Largo,
Item Background: On February 28, 2000 the Board approved Resolution 02-2000 authorizing a zero-
interest, 50-year mortgage from the Land Authority in the amount of $1,089,000 and authorizing the
Chairman to sign the corresponding local contribution application form to the Florida Housing Finance
Corporation (FHFC) as a subsidy for the 66-unit Phase 1 portion of the Tradewinds Hammocks
affordable housing development on Key Largo.
Subsequent to the Board's action, the project developers determined that a FHFC application submitted
in strict adherence to Resolution 02-2000 would not be competitive and would stand little chance of
receiving State funding. The project developers have therefore submitted an application that deviates
from Resolution 02-2000 in the following respects: 1) the mix of one, two, and three-bedroom units was
adjusted to provide 30% three-bedroom apartments; 2) the impact fee waiver was corrected to
correspond to the amount called for in the County regulations; and 3) portions of the project financing
were modified, These deviations from Resolution 02-2000 do not alter the Land Authority's contribution
or the overall number of dwelling units. See the attached March 14 letter from Jacqueline McPhillips of
the Heritage Companies for further explanation.
Advisory Committee Action: On 3/22/00 the Advisory Committee reviewed the proposed changes to
the resolution and voted 4/0 to recommend approval.
Previous Governing Board Action: On 10/14/99 the Board approved adding the subject property to
the Acquisition List. On 2/17/00 the Board tabled consideration of the 122-unit proposal. On 2/28/00
the Board approved Resolution 02-2000 for the 66-unit Phase 1 proposal.
Staff Recommendation: Approval.
Total Cost: $ 1,089,000
Budgeted: Yes
No
Cost to Land Authority: $ 1,089,000
Approved By: Attorney ~
Executive Director Approval:
OMBIPU'\Zing _
~ ' ~a'k~Ch
To Follow:
Risk Management
Documentation: Included: X
Not Required:
Disposition:
Agenda Item LA #2
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March 14,2000
THE HERITAGE
COMPANIES
. .
Mr. Mark Rosch
Executive Director
Monroe County Land Authority
1200 Truman A venue, Suite 207
Key West. Florida 33040
RE: Tradewinds Hammocks
Dear Mark,
We are pleased to inform you that the combination housing credit and HOME loan application was
submitted to Florida Housing Finance Corporation on March 8. 2000. We have enclosed a copy of the
document receipt and a copy of the application. We feel that it is an excellent application and we will keep
you informed of future notices from the Florida Housing Finance Corporation.
As we discussed prior to our submission, there were a few minor revisions to the application. Though the
corresponding pages can be found in the application, I have enclosed copies of the pertinent pages which
reflect any changes from Attachment "B" of the Monroe County Comprehensive Plan Land Authority
RESOLUTION NO, 02-2000 for your convenience,
The revisions are as follows:
1) The 66 unit mix was revised so that Phase I has 30% three bedrooms. The entire site (Phase I and II or
122 units) was designed for 30% three bedroom units however, only 27% of Phase I offered 30% three
bedrooms. The architect was able to add another two three-bedroom units to allow for a 30% total in
Phase I. This caused either an increase or reduction of the one and two bedroom units, This revision
did not effect the total amount of units, the set aside at 28% median income nor did it effect the
projected rents.
ATTACHMENT "B" APPLICATION
1/1 1 28% 2
1/1 1 50% 0
1/1 4 60% 8
6 10
2/2 7 28% 6
2/2 1 50%> 2
2/2 34 60% 28
42 36
3/2 2 28% 3
3/2 2 50% 1
3/2 14 60% 16
18 20
2) Monroe County Impact fee waIvers were reflected as $116,000 011 ATTACHMENT "B" but in reality,
was $87,846 when we received the actual commitment.
3) The revision to the unit mix changes the project's income, which slightly effects the construction and
pem1anent loan. The permanent loan reflected on the ATTACHMENT "B" is $1,014,519 with a
separate $500,000 purchase money mortgage (PMM) for a total of $1,514,519, Mr. Chris Buswell,
the Housing Credit Program Manager of The Florida Housing Finance Corporation cautioned us that
unless the PMM was for the same term as the HOME, we should reflect the source to satisfy the PMM
at the time of the permanent loan closing. We would be vulnerable to a cross appeal for not having
enough permanent loan sources if we did not. Therefore, it was necessary to reflect $1,501,026 in long
term permanent debt. I have enclosed the two purchase contracts reflecting the combined $500,000
PPM which the sellers are willing to carry for a three year period, I have also enclosed the summary
page from the construction/permanent loan commitment, which includes the $500,000 to satisfy the
PMM.
4) The ATTACHMENT "B" reflected a deferred developer fee of $641, I 99 while the effects of the above
caused a deferral of$700,258.
Had we not made the change to the unit mix, we would have lost a possible five points and up to sixty
points if we did not reflect the change in the permanent financing commitment. Obviously, we thought it
mandatory to make those changes. Though there are some revisions to what was reflected on
ATTACHMENT "B", we feel that they are immaterial as to the position of the Land Authority. Please let
us know if we should come back to both the Land Authority Advisory Board and/or the Land Authority
Commission meeting to request a revision to ATTACHMENT "B". It is our understanding that we are
scheduled to appear before the Land Authority's Advisory Board on Wednesday, March 22,2000 at 1 :30.
We greatly appreciate the Land Authority and it's advisory board's commitment to this proposed affordable
housing development. Should we be fortunate enough to receive funding this cycle, we will give the Land
Authority and all of the many Tradewinds supporters an affordable housing development to be proud of,
Sincerely,
.. TRA EWINDS :'~CW."'. T..D. .
I ~7tu ~l(tjJL~~
l./ Jacque1ine MCP~l~ps ./
Heritage Partners Group XIX, Inc,
Managing General Partner
cc: James Roberts
Peter Rosasco
RESOLUTION NO,
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY AMENDING
RESOLUTION 02-2000 REGARDING THE TRADEWINDS
HAMMOCKS AFFORDABLE HOUSING DEVELOPMENT.
WHEREAS, the Monroe County Comprehensive Plan Land Authority adopted Resolution 02-
2000 on February 28, 2000 and now wishes to amend same in order to allow for the submission
of a more competitive application to the Florida Housing Finance Corporation; and
WHEREAS, words shown in strikethrough format are deletions from Resolution 02-2000 and
words underlined are additions; and
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 operating 66 units
of affordable rental housing known as 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 $7,519,750 $7,559,696 total cost of the housing
development, the Owner proposes to apply on March 8, 2000 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
$500,000 or 5% of the total project cost ($d75,2dS $377,985), whichever is less; and
WHEREAS, the Owner states that it is necessary to receive subsidies in the form of a
$1,089,000 mortgage loan from the Land Authority and $119,000 $87,846 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
February 23, 2000 and voted 3/0 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
Section 1, Effective immediately, the Land Authority Chairman is authorized to sign FHFC Form
5, Page 7 of 10, indicating a local government contribution in the form of a zero-interest, 50-year
loan in the amount of $1,089,000 in support of the Owner's application to FHFC for a HOME
loan in the amount of $2,900,000 and tax credits in the annual amount of$171,504 $169,232 for
ten years for the housing development.
Section 2. On or about March 31, 2000, the Land Authority Executive Director is authorized to
disburse $933,000 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 March 8, 2000 application deadline,
b) The Monroe County Planning Director has provided notice that the 66-unit affordable
housing project on Tract E as described in Attachment A has been fully approved for
development.
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 $933,000 encumbering the property described in Attachment A (all of Tract
E), In the event FHFC has not awarded the tax credit and HOME loan commitment by the
conclusion of two application cycles, beginning with the March 8, 2000 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 66-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 $156,000 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 66-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 $1,089,000 encumbering the property described in Attachment A (all of
Tract E) 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
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 3 of 3
ATTACHMENT A
All of Tract E of Trade Winds subdivision, according to the Plat thereof as recorded in Plat Book
7 at Page 42 of the Public Records of Monroe County, Florida.
ATTACHMENT B
Tradewinds Hammock 66-Unit Affordable Housing Development
Financing
Local Contributions
Land Authority Mortgage
County Impact Fees of $119,000 $87.846
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
Total Project Cost
$1,089,000
fees waived
$1,J72,OJ2
$2,900,000
$1,01<1,91Q
$900,000
$e<l1, 1 gQ
$7,519,750
$1,089,000
fees waived
$1,369,412
$2,900,000
$1.501,026
~
$700,258
$7.559,696
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 Very Low 50% 700 $422,38
Efficiency-1/1 4 ~ Low 60% 700 $514,00
Subtotal & 10
2 BR/ 2 Bath +. 6 Very Low 28% 890 $263.00
2 BR/ 2 Bath ~ 2 Very Low 50% 890 $506.25
2 BRI 2 Bath ~ 28 Low 60% 890 $616.00
Subtotal ~ 36
3 BR/ 2 Bath ~ 3 Very Low 28% 1050 $299.00
3 BR/ 2 Bath ~ 1 Very Low 50% 1050 $579,88
3 BR/ 2 Bath ~ 16 Low 60% 1050 $707.00
Subtotal ~ 20
Total Units 66 66