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Item P10 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY ADD ON Meeting Date:_9/20/00 Division: BOCC Bulk Item: Yes No x -- Department:_ Commissioner Williams AGENDA ITEM WORDING: Approval of resolution requesting the Board of the FL Housing Finance Corporation to limit the funding of rental developments sponsored by community housing development organizations to those limits published in the notice of funding availability and the Rule Chapter 67-48 Affordable Multifamily Rental Housing Sail/Home/HC Rules for Year 2000. ITEM BACKGROUND: In 200 I, Monroe County will lose 2,000 to 4,000 units of affordable housing due to FEMA's final Rule regarding illegally built structures below Base Flood Elevation. PREVIOUS RELEVANT BOCC ACTION: STAFF RECOMMENDATION: TOTAL COST: BUDGETED: Yes: No: COST TO COUNTY: REVENUE PRODUCING: Yes: No: AMOUNT PER MONTH YEAR APPROVED BY: County Attomey_ OMB/Purchasing_ Risk Management DIVISION DIRECTOR APPROVAL: "'- r'\-, t' '- r~ c CcC ::' bIz... DOCUMENTATION: Included:_x_ To Follow:_ Not Required: DISPOSITION: Agenda Item #. f. 10 09/18/2000 16:14 3057454078 SEP-18-2000 MON 02:40 PM PETER ROSASCO CPA FAX NO. PAGE 02 P. 02 September 18, 2000 ~ THE HERITAGE COMP.}\NIES . . Mr. Petct Rosasco MR T of the Florida Keys P.G, Box 4201075 Summerland Key, Florida 33042 RE: Tradewinds Hammocks Dear Peter: r hate to start your week offlike this! By FHFC allowing the previously rejected app~jcants back in, Tradewinds Hammocks, the Key West project and a lot of others wero really hanned. The only reasons Tradewinds is shown where it is, instead of number one on smail eounty tID( credits, is because a project has to receive both forms of funding if it requests both. If we scored for HOME funds, We would be ranked as numbOJ:' one for credits, based upon points, There;5 still a possibility of Trndcwinds receiving HOME funds, A CHDO must receive 15% of the HOME funds. even if it scored less than anX olher applicant did. That is why Heron Woods is at the top of the funding sheet. However, 15:% represents approximately $1,200,000, not the $3.000,000 that they requested, We believe the HOME rules are interpreted as the CHDo. should receive up to the 15% and must compete in the general pool, by their score, for the balanco oftheir request. FHFC's statftold us on Frid<lY that they 3.:(0 }Mng the full $3,000,000 to the CHDO and we can take our case to the Board On September 22n, ' Our attorney, John Moyle, will write a position paper to submit to the Board, We will fax it to you upon our receipt. Thc staff has already set a precedent in the 2000 HOME homeowncrship cycle for our position, They awarded only 15% to two CHDO's, evet). though they did not score well. The secoud ranking CHDo. requested more that what was available in the 15% set-a-side. The CHDo. then competed in the general pool for the balance of their request. This is exactly what the stafflBoard should do again in the HOME nmtal cycle. But they (staft) aTe recommending that the Beard fund the 15% and the balance of the CHDO's request This will result in Tradcwinds not receiving any HQME funds. If they simply repeated what they (starrlBoard) did in the homeownership cycle, tUe CfIDO would receive partial funding, Since they prop<>se to build houses, instead of apartments, they could build approximatcly one h.alf of thair project and come back in the 2001 cycle fbr the balance. In this scenario, approximately $1,200,000 would flow to Tradewinds. = SSOS N, ^ TLANTlC ^ VENUE. 1/ 1/5 . COCOA DEACH, FLooJlD^ 32931 . (321) 799-4090 . FAx (321) 799-0233 09/18/2000 15:14 3057454078 SEP-]8-2000 MON 02:40 PH PETER ROSASCO CPA FAX NO. PAGE 03 P. 03 We desperately need the COUllty Commissioners, Mark Rouse, Planning Department, legislatures, etc. to contact the Board and plead for our case, Otherwise, no rental tlevclopmcnls will be funded in Monroe County this year. Sincerely, We will fax you John Moyle's argument to the Board as soon as we receive the draft copy. . t:L,t.y #<- . acqucltne McPhillips Managing General Partner RESOLlJTlON # A RESOLUTION REQUESTING THE BOARD OF THE FLORIDA HOUSING FINANCE CORPORATION (FHFC) TO LIMIT THE FUNDING OF RENTAL DEVELOPMENTS SPONSORED BY COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHODO'S) TO THOSE LIMITS PUBLISHED IN THE NOTICE OF FUNDING AVAILABILITY (NOFA) AND THE RULE CHAPTER 67-48 AFFORDABLE MULTIFAMILY RENTAL HOUSING SAIL/HOME/HC RULES FOR YEAR 2000. WHEREAS, beginning January 1,2001, Monroe County will lose through demolition, an estimated 2,000 to 4,000 units of housing due to The Federal Emergency Management Agency's (FEMA) final Rule regarding illegally built structures below the Base Flood Elevation; and WHEREAS, Monroe County has been an Area of Critical State Concern for over 15 years; and WHEREAS, Monroe County is a geographically unique and impacted area that is dependent upon bridges and causeways for connection to the mainland and is subject to growth restrictions relating to hurricane evacuation requirements; and WHEREAS, the following factors increase the costs and limit the supply of affordable housing in Monroe County: Highest Median Housing Cost in Florida; Highest Cost of Living Index in Florida, for over 15 years; Highest Construction Cost in Florida, due to distance from suppliers, limited supply of contractors and extensive regulatory requirements; Highest land costs in Florida, due to a limited amount of buildable land; Lack of existing housing stock, that could be converted to affordable housing; and WHEREAS, The Monroe County Year 2010 Comprehensive Plan recognizes affordable housing as an important issue facing Monroe County and its residents; and WHEREAS, THE HIGH DEMAND FOR HOUSING IN Monroe County and the limited supply of both existing units and buildings right for future units make affordable housing too expensive to build in Monroe County unless adequate State subsidies are received; and WHEREAS, existing State affordable housing funding programs do not recognize the unique circumstances preventing the development of affordable housing in Monroe County; and WHEREAS, current and proposed rules for year 2001 regarding "leveraging" points penalizes Monroe County because it has the highest building and land costs in the state of Florida; and WHEREAS, changes to State affordable housing funding programs and rules including those of the Florida Housing Finance Corporation are necessary to ensure that Monroe County is eligible for its fair share of State atYordable housing funding programs: and WHEREAS, the Board ofFI-lFC t(lllowed the IIOME rules with regards to giving CHDOs in the year 2000 HOME home ownership cycle fifteen per cent (15%) of the HOME allocation; and WUI!:IU:AS, the stitlf of FIJJ:C recommends offerin~ ij CHDQ III year 2000 HOME n.ntaJ cycle approximately S3,800,OOO or rlWty-tive pel \;CUt (35%) of the HOME rental funds or more than twice till: amount reflected in the NOF A and the HOME rules fur year 2000; and WIU:Rl.AS, prnvidiJIg the Board ofFHFC IlUCpta &Uft"a rocommcndation, a proposed developmeot 10 be located in Monroe Counly will be nwerially effected and will nor be eligible for fundiDg; NOW 1'Bl:UJ1ORE. BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS 0' MONROE COUNTV. FLORIDA. tbat: Tbtcc TCqUGSfS be made 10 tbe Board ofFHFC: (1) Follow rhe NOF A, HOME NIcs and rbe precedent tMt PHFC Iw previously made in llkx:.ting up to 1 S% of ROME fuDd. to CHDOs."(1) After the Idministralive ltppeal procedures haw been made, the CorporatiOD &hall Ulign a r~ve loan amount to the Applicants ill each set-aside ca1cgory with the hiabest point tolals on their Applications for funding. up to the amOWlt available in the categOry. CHDO requestins in Clxc:ess of the CHDO tot a std. must compc:Io in the penal pool u to poinu assig.ncd fur the balan(.e ofthcir rc:qUC5t. (2) Based upon awiJabiJity offunds, the Corporarion lhall iS5Ue a preliminary commitment llOliJyillg eacb Applic:aDt of IIClcaion for panicipelion in the UOME Pro8l'am in the order of UGh Applicanr's raalcing within each <<t-aside category. When an Applicam's tentative loan amount exceeds the remaining fund availAbility, the Corporalion shall offer the Applicant I tentative loan amount equal to tbe remaining funds. Jlcjeaion of such an offew- will cause the Corporarion to malce the offer to the next highest ranked Applicant witlUo the caJegory This process shall be followed until all funds for Ihe ~..aside category are committed." (2) Jo the Ove.lt rhat Uitrc is an insufficient amount otHOME fimdJ rcmaiJLing to accommodate the applicant'i request and they would be pInially fwIdod. the aJllJliUllt ~ be allowed to redul;C tbe development'. size proraJa to the funds available. the applic:aDt sboW4 be allowed to &ecqlt the: pl&rtW funding and be allowed to competitively roquest the balance in the iollowing year whether they an: <l ClIDO. non-profit or for-profit The housing credits allow for this evtntuaIily by automatically giving the applicaot the balance of their request fTom the followiog ycan aJloca:ion, HowlM:r. the currc:nt and propolled HOME rules do no. allow for thii procedure nor do they allow for a dell'Oiopmem to feccive panial funds ODe year and to request the balance oflheir request in the follo~ year. (3 ) In dct.onnining the ~point" struc:tute for FHFC fLUId.!., FHFC .hould tar: into c:onsidcration the peculiar fa~rs aM circullUUlDCCl:I cona-oming MoDl'oc Count)' which has kept it from competing fairly with olhu COunricl in providing affordable housing for our citiuna. PASSED AND ADOPTED by rhc Board aCCount)' CommIssioners of Monroe c.:oUllty. florida. at a regular me.:ting of said Board held on the _ day ofScptcmbeJ, 2000, Mayor Shirley Frec:mflJl Commissioner Wilhelmina lIarvey COmmi~sloncr George Neugent CommiSSIOner Mury Kill' Reich Conunissioner Nora Wllhams (SEAL) Anesr: DANNY LKOLHAGE, c.:lerk BOARD OF COUNTY COMJv!.lSSIONERS OF MONROE COlMTY, FLORIDA By Deputy Clerk By Ma\,or/c.:hauper:lon