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Item C2 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: June 15, 2000 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a resolution updating the appropriation of funding for the Plan 2000 affordable housing initiatives. Item Background: In 1996 the Land Authority Governing Board appropriated a total of $3,529,600 in acquisition funding in support of the Plan 2000 affordable housing initiatives proposed by the Monroe County Housing Authority and the Key West Housing Authority. The Housing Authority's implementation of these initiatives has been delayed by a lack of funding for non-acquisition activities. To date only one Plan 2000 initiative involving Land Authority funds has been completed: the 28-unit Key Plaza development in Key West. The Florida Housing Finance Corporation now provides funding for non-acquisition activities through the Pre-development Loan Program (PLP) and, due to the Housing Authority's recent success in securing this funding, additional Plan 2000 initiatives should now move ahead. The purpose of the proposed resolution is to add a new Plan 2000 initiative: the construction of 50 single-family and/or duplex affordable rental units on scattered vacant lots in developed subdivisions (see paragraph e on page 2 of the resolution). Other components of this new initiative would include FEMA "unmet needs" funding and RaGa exemptions pursuant to the DCA downstairs enclosure agreement. The total appropriation in the proposed resolution reflects the original $3,529,600, less $382,554 already disbursed for the acquisition of Key Plaza Site A, leaving a balance of $3,147,046. Additional Board action is required before the Land Authority could purchase a specific parcel. Advisory Committee Action: On 5/24/00 the Advisory Committee voted 4/0 to approve the proposed resolution. Previous Governing Board Action: The Governing Board approved the original Plan 2000 appropriation on 10/16/96. Staff Recommendation: Approval. Total Cost: $ 3,147,046.00 Budgeted: Yes X No Cost to Land Authority: $ 3,147,046.00 Approved By: Attorney ~ oM~/purMi~g _ Executive Director Approval: ^'1.1 ~' ~. -----I ark J. Rosch Documentation: Included: X To Follow: Risk Management Not Required: Disposition: Agenda Item LA #2 MonROE counTlJ HOUSINC3 AUTHORITlJ P. O. BOX 2476 · KEY WEST. FLORIDA 33040 . 305296-5621 Director: Henry V. Haskins. P.H.M. AFFORDABLE HOUSING (RENTAL) DEVELOPMENT PLAN MONROE COUNTY HOUSING AUTHORITY May, 2000 The Monroe County Housing Authority (MCHA) proposes to construct fifty (50) new single family and/or duplex affordable housing rental units located at scattered sites in unincorporated Monroe County from Key Largo to Stock Island. We propose a mixture of two and three bedroom units, with a predominance of three bedroom units. We propose to reserve a minimum often units for occupancy by qualified elderly. Occupancy shall be dedicated to very low, low and moderate income households as defined annually for Monroe County by the U.S. Department of Housing and Urban Development (Attached). Properties will be rented to qualified tenants under the terms of the Monroe County Housing Authority's Rental Affordability Policy. This policy provides that: · Income targeting of very-low an low income households with no more that 40% ofthe units occupied by moderate income households. · Monthly rents for very low and low-income households shall not exceed the amounts defined annually for Monroe County by the U.S. Department of Housing and Urban Development (HUD). · Monthly rents for moderate-income households shall not exceed'the amounts defined annually by the Florida Housing Finance Corporation (FHFC). The location of the homes wiII be based on availability and subject to the following site selection criteria developed in cooperation with the Monroe County Land Authority (MCLA): · Unincorporated Monroe County, Key Largo to Stock Island · Current zoning: IS, DR, URM, SR, SRL, MU · Lot Size sufficient to accommodate 1300 sq. ft. single family home (min. 50' x 100'/5000 sq. ft.) · Surrounding uses compatible with single family/duplex residential · Acceptable level of service along US Route I (C or higher) · Dry lots only, no canal lots or wetlands · Very-low or low intensity environmental sensitivity: Very-low: Scarified/Exotic vegetation Low: Disturbed lots · All lots subject to approval of Monroe County Housing Authority & Monroe County Land Authority 1st of2 pages We are requesting the Monroe County Board of County Commissioners, through a recommendation from the Monroe County Planning Commission, reserve (50) FEMA replacement unit building permits provided Monroe County, to the Housing Authority for this project. We are requesting the Monroe County Board of County Commissioners, through a recommendation from the Monroe County Land Authority Advisory Board, amend Resolution 06-1996 to include the proposed project as an approved use of the reserved funds. This resolution currently provides $1,573,600 in direct support of Monroe County Housing Authority affordable housing projects in Monroe County Pending approval and initial land acquisition construction is anticipated to begin in early 2001 and construction time is estimated to be fifteen to eighteen months. Comments: Special Programs Office, Monroe County Housing Authority 1403 lih Street, Key West, Florida 33040 Ph. (305) 292-1221 Fax (305) 292-1162 Notes: 2nd of 2 pages RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY UPDATING THE APPROPRIATION OF ACQUISITION FUNDING TO IMPLEMENT PLAN 2000 AND PROVIDE AFFORDABLE HOUSING IN COOPERATION WITH THE MONROE COUNTY AND KEY WEST HOUSING AUTHORITIES. WHEREAS, section 380.0666(3), Florida Statutes, and Section 9.3-2, Monroe County Code, empowers the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") to acquire real property for the purpose of providing affordable housing to very low, low, and moderate income persons as defined in section 420.0004, Florida Statutes; and WHEREAS, the Monroe County Housing Authority (MCHA) and Key West Housing Authority (KWHA) have prepared affordable housing plans called "Plan 2000" (hereinafter "Plan 2000") for both Monroe County and Key West which document the need for additional affordable housing and propose programs to address this need by leveraging local funds with State grants; and WHEREAS, the Land Authority adopted Resolution 06-1996 on October 16, 1996 to provide a total of $3,529,600 in acquisition funds in support of Plan 2000; and WHEREAS, MCHA and KWHA request an updated appropriation of $3,147,046 in acquisition funds carried forward from the previous appropriation to reflect the completion of the Key Plaza Site A project in the Key West Area of Critical State Concern and the addition of a new project in the Florida Keys Area of Critical State Concern consisting of single family and/or duplex rentals; and WHEREAS, the proposed new project of single family and/or duplex rentals is consistent with the Land Authority's desire to provide housing that will continue to be affordable over the long term; and WHEREAS, the Land Authority Advisory Committee considered this request at a meeting held on May 24, 2000 and voted 4/0 to recommend approval subject to the requirements contained in this Resolution; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1 Projects Selected for Acquisition. 1. Projects in the Florida Keys Area of Critical State Concern: (a) Homeownership (Existing Dwelling Units) - MCHA will purchase existing single-family homes, renovate the structures, and sell the resulting upgraded property as affordable housing to qualified private buyers. The specific properties to be acquired will be determined at a future date. Title to the property will vest initially in MCHA and ultimately in the qualified private buyer. Land Authority funding for this project shall be secured by Page 1 of 4 a legally binding, interest free mortgage due on sale to the qualified buyer or in five years, whichever occurs first. (b) Homeownership (New Dwelling Units) - MCHA will purchase vacant lots, construct single-family homes, and sell the resulting improved property as affordable housing to qualified private buyers. The specific properties to be acquired will be determined at a future date. Title to the property will vest initially in MCHA and ultimately in the qualified private buyer. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage due on sale to the qualified buyer or in five years, whichever occurs first. (c) Multi-family Rental/41st St. Area - MCHA will purchase, renovate, own, and manage existing multi-family housing in the 41 st Street area of Marathon as affordable rental housing. Title to the property will vest in MCHA. The specific properties to be acquired will be determined at a future date. The Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. (d) Elderly/Disabled - MCHA will purchase a vacant site, construct, own, and manage a multi-family facility as affordable rental housing for elderly and disabled persons. The specific property to be acquired will be determined at a future date. Title to the property will vest in MCHA. The Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. (e) Single Family and/or Duplex Rental- The Land Authority will purchase vacant lots to be encumbered with deed restrictions and conveyed to MCHA. MCHA will develop the lots with single family and/or duplex homes and rent the resulting improved property as affordable housing to qualified tenants. 2. Projects in the Key West Area of Critical State Concern: (a) Poinciana (Existing Dwelling Units/Rentals) - KWHA will purchase a portion of the existing Poinciana military housing, renovate the structures, and manage the property as affordable rental housing. Title to the property will vest in KWHA. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. (b) Poinciana (Existing Dwelling Units/Shared Housing Rentals) - KWHA will purchase a portion of the existing Poinciana military housing, redesign and renovate the structures to function as shared housing, and manage the property as affordable rental housing. Title to the property will vest in KWHA. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. Page 2 of 4 (c) Poinciana (New Dwelling Units) - KWH A will purchase the undeveloped portion of the existing Poinciana military housing facility, construct multi-family homes, and rent the resulting improved property as affordable housing to qualified households. Title to the property will vest in KWHA. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. (d) Homeownership (New Dwelling Units) - KWHA will purchase vacant lots, construct single-family homes, and sell the resulting improved property as affordable housing to qualified private buyers. The specific properties involved will be determined at a future date. Title to the property will vest initially in KWHA and ultimately in the qualified private buyer. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage due on sale to the qualified buyer or in five years, whichever occurs first. (e) Multi-family Rental/Key Plaza - KWH A will purchase, renovate, own, and manage the existing multi-family housing known as Key Plaza as affordable rental housing. Title to the property will vest in KWHA. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. (f) Elderly/Disabled - KWHA will purchase a vacant site, construct, own, and manage a multi-family facility as affordable rental housing for elderly and disabled persons. The specific properties involved will be determined at a future date. Title to the property will vest in KWHA. Land Authority funding for this project shall be secured by a legally binding, interest free mortgage for a period not to exceed 50 years. The exact terms and conditions of the mortgage shall be approved by the Advisory Committee and the Land Authority prior to closing. Section 2 Appropriations. 1. The Land Authority hereby agrees to appropriate the following funds for the acquisition of real property to implement the projects in Section 1: Florida Keys Area of Critical State Concern Key West Area of Critical State Concern Total $1,573,600 $1,573,446 $3,147,046 Section 3 Conditions. 1. Said funds are to be spent for the acquisition of real property to implement the projects in Section 1, provided each of the following conditions are met: (a) Where mortgages are called for in Section 1, said funds are secured by a legally binding mortgage executed by MCHA or KWH A in favor of the Land Authority in accordance with the terms described in Section 1 and approved by the Land Authority counsel. Page 3 of 4 (b) The property will provide affordable housing to very low income, low income, or moderate income persons, as defined in s. 420.0004, FS and in accordance with the MCHA and KWHA affordability policies. (c) MCHA and KWHA are responsible for developing and managing the property as affordable housing and ensuring compliance with the affordability requirements of 1 (b) above. (d) Where a property is to purchased directly by MCHA or KWHA, the specific property is selected for acquisition by the Advisory Committee and approved for acquisition by the Governing Board prior to the negotiation of a purchase contract. (e) The terms of the purchase contract meet the requirements of Rule 02-1991 and are approved by the Advisory Committee and the Governing Board. (g) The funds are spent only on the following acquisition costs: purchase price, environmental audit, boundary map, survey, appraisal, title insurance, and attorney's closing fees. Once a specific property has been selected for acquisition by the Advisory Committee and approved for acquisition by the Governing Board, the funds for environmental audit, boundary map, survey, and appraisal costs may be disbursed prior to closing to cover those actual costs incurred. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this 15th day of June, 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 4 of 4