Item C3
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: March 22, 2001
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval of a resolution authorizing a mortgage for the acquisition of Key
Plaza Apartments Site B in partnership with the Key West Housing Authority.
Item Background: This mortgage is proposed to assist in the provision of affordable housing.
Key Plaza Apartments Site B is a 44-unit, privately owned complex in the Bahama Village neighborhood
of Key West. As private property, this existing source of affordable housing will likely be lost to the
market forces of gentrification in the absence of government intervention. The Key West Housing
Authority (KWHA) proposes to purchase the site, demolish the existing buildings, and rebuild 44 units
as rental housing. The proposed resolution calls for the Land Authority to provide the acquisition
funding in the form of a 30-year, zero-interest mortgage in the amount of $1,500,000. As a condition of
the Land Authority funding, the property would be permanently restricted to affordable housing.
Redevelopment of this type has no impact on ROGO.
The proposed resolution implements part of KWHA's long range plan known as Plan 2000, which was
endorsed by the Key West City Commission. The proposed resolution is consistent with the Land
Authority's funding commitment to KWHA Plan 2000. KWHA has already received $500,000 from the
Florida Housing Finance Corporation toward redevelopment of the property. KWHA will secure
additional financing for demolition and construction activities through the issuance of public housing
bonds.
Advisory Committee Action: On February 26,2001 the Advisory Committee voted 5/0 to approve the
proposed resolution.
Previous Governing Board Action: In 1998 the Board approved a similar mortgage agreement for
Key Plaza Site A.
Staff Recommendation: Approval.
Total Cost: $ 1,500,000.00
Budgeted: Yes X
No
Cost to Land Authority: $ 1,500,000.00 .
Approved By: Attorney ~
OM BIPurchasing
Risk Management
Executive Director Approval:
Not Required:
Documentation: Included: X
Disposition:
Agenda Item LA #3
RESOLUTION NO.
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY APPROVING A
MORTGAGE AGREEMENT AND PROMISSORY NOTE FOR
USE WITH THE KEY WEST HOUSING AUTHORITY FOR THE
ACQUISITION OF KEY PLAZA APARTMENTS SITE B TO
PROVIDE AFFORDABLE HOUSING.
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, the Key West Housing Authority (hereinafter "KWHA") is a housing authority
created pursuant to section 421.04, FS; and
WHEREAS, Key Plaza Apartments Site B is a 44-unit, privately owned apartment complex in the
Bahama Village neighborhood of Key West and is part of the community's existing stock of
affordable housing; and
WHEREAS, being privately owned, Key Plaza Apartments Site B is subject to the market forces
currently gentrifying this area of Key West and, in the absence of government intervention, will
likely be redeveloped into a land use other than affordable housing; and
WHEREAS, KWHA proposes to purchase Key Plaza Apartments Site B, demolish the existing
buildings, and rebuild 44 units as rental housing; and
WHEREAS, KWHA requests that the Land Authority provide $1,500,000 toward the purchase of
this property to be secured by a 30-year, zero-interest first mortgage executed by KWHA; and -
WHEREAS, said request is consistent with City of Key West Resolution 96-242 and the Land
Authority's funding commitment for the implementation of Plan 2000 as memorialized in Land
Authority Resolution 04-2000; and
WHEREAS, the Land Authority Advisory Committee considered this proposal at a meeting held
February 26, 2001 and voted 5/0 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:
Section 1. The property identified in Attachment B (Key Plaza Apartments Site B) is selected for
acquisition.
Page 1 of 2
Section 2. The mortgage agreement and promissory note in Attachment A are approve for use
in the acquisition of said property.
Section 3. The deed unto the Key West Housing Authority shall restrict future use of the
property to affordable housing in accordance with the Key West Housing Authority affordability
policy in Attachment C. Notwithstanding the 50-year affordability period in the Housing Authority
affordability policy, this deed restriction shall not expire and may only be released by the Land
Authority.
Section 4. Upon notification from the Land Authority's legal counsel that the Key West Housing
Authority has acquired title to said property, imposed the deed restrictions referenced in Section
3 above, and executed the mortgage agreement and promissory note in Attachment A for the
amount of $1,500,000, the Land Authority's Executive Director is authorized to disburse the
secured funds to the Key West Housing Authority.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this day of 2001.
(Seal)
ATTEST:
MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
Mark J. Rosch
Executive Director
Nora Williams
Chairman
Approved for Legal Sufficiency
Larry R. Erskine
Page 2 of 2
AI I^( '1ll'vllN I 1\
TillS MORHiMiL 1)1-1-1)
I ~xeclltcd the
day or
, kD.,
hy
Key West Housing Authority, a housing .mthority under Section 421.04, Florida Statutes
hereinafter called the Mortgagor, to
Monroe County Comprehensive Plan Land Authority, a land authority under Section
380.0063(1), Florida Statutes and Monroe County Ordinance No. 031-1986
hereinafter called the Mortgagee:
(Wherever used herein the terms "Mortgagor" and "Mortgagee" include all the parties .to this
instrument and their heirs, legal representatives and assigns of individuals, and the successors
and assigns of the corporations; and the term "note" includes all the notes herein described if
more than one.)
WITNESSETH, that for good and valuable considerations, and also in consideration of the
aggregate sum named in the promissory note of even date herewith, hereinafter described, the
Mortgagor hereby grants, bargains, sells, aliens, remises, conveys and confirms unto the
Mortgagee all the certain land of which the Mortgagor is now seized and in possession situate in
Monroe County, Florida, to-wit:
See Attachment B
THIS IS A FIRST MORTGAGE.
THE CONDITIONS, STIPULA TrONS AND AGREEMENTS CONTAINED IN EXHIBIT I,
A TTACHED TO THIS MORTGAGE, ARE INCORPORATED HEREIN BY REFERENCE.
TO IIA VE AND TO HOLD the same, with the tenements, hereditaments, and appurtenances
thereto belonging, and the rents, issues and profits thereof, unto the Mortgagee, in fee simple.
AND the Mortgagor covenants with the Mortgagee that the Mortgagor is indefeasibly seized
of said land in fee simple; that the Mortgagor has good right and lawful authority to convey said
land as aroresaid; that the Mortgagor will make such further assurances to perfect the fee simple
title to said land in the Mortgagee as may reasonably be required; that the Mortgagor hereby fully
warrants the title to said land and will dc/end the same against the lawful claims of all persons
whomsOl'ver; and that said land is free and clear of all encumbrances except those or record.
PI\()VII)IJ) ^"W^YS, Ih;i1 il said Mortgagor shall pay unto said Mortgagee the cerlain
prollll~;';Or\ 11OlL' hcreinalkr ',Uh';(;\I1Ii;dl\ copied or idenli Ill'll, 10 Wit
and shall perform, comply with, and ahidc by cach and cvery olle of till' a!-',llTllIcnls, stipulatiolls.
conditions and covcnants thereof, and of this mortgage, then this mort!-',age and lhe estate herehy
created, shall cease, determine and be null and void.
^ N D the Mortgagor hereby further covenants and agrees to pay promptly when due the
principal and interest and other sums of money provided for in said note and this mortgage, or
either; to pay all and singular the taxes, assessments, levies, liabilities, obligations, and
encumbrances of every nature on said property; to permit, commit or suITer no waste, impairment
or deterioration of said land or the improvements thereon at any time; to keep the buildings now
or hereafter on said land fully insured in a sum of not less than the highest insurable value in a
company or companies acceptable to the Mortgagee, the policy or policies to be held by, and
payable to, said Mortgagee, and in the event any sum of money becomes payable by virtue of
such insurance the Mortgagee shall have the right to receive and apply the same to the
indebtedness hereby secured, accounting to the Mortgagor for any surplus, to pay all costs,
charges, and expenses, including lawyer's fees and title searches, reasonably incurred or paid by
the Mortgagee because of the failure of the Mortgagor to promptly and fully comply with the
agreements, stipulations, conditions, and covenants of said note and this mortgage, or either; to
perform, comply with and abide by each and every one of the agreements, stipulations,
conditions, and covenants set forth in said note and this mortgage or either. In the event the
Mortgagor fails to pay when due any tax, assessment, insurance premium, or other sum of money
payable by virtue of said note and this mortgage, or either, the Mortgagee may pay the same,
without waiving or affecting the option to foreclose or any other right hereunder, and all such
payments shall bear interest from date thereof at the highest lawful rate then allowed by the laws
of the State of Florida.
IF any sum of money herein referred to be not promptly paid within thirty (30) days next
after the san1e becomes due, or if each and every one of the agreements, stipulations, conditions,
and covenants of said note and this mortgage, or either, are not fully performed, complied with
and abided by, then the entire sum mentioned in said note, and this mortgage, or the entire
balance unpaid thereon, shall forthwith or thereafter, at the option of the Mortgagee, become and
be due and payable, anything in said note or herein to the contrary notwithstanding. Failure by
the Mortgagee to exercise any of the rights or options herein provided shall not constitute a
waiver of any rights or options under said note or this mortgage accrued or thereafter accruing.
)
It"-J WIINI.SS WIIII{I'( >I. lill' said Morlg;IJ',OI h.I', 1H'll'lllllo sq'lll'd ;1I1l1 s(';i1l'd (hl'sl' 111(,';l'llh
(ill' d;IY alld )/l'al fllSI ahOVl' wlIlll'n
Key West I lousing ^U(lllllily
By:
Witness
Witness
State of Florida
County of Monroe
The foregoing instrument was acknowledged before me this _ day of
_, by , KEY WEST HOUSING AUTHORITY, who is personally known
to me and who did not take an oath.
Notary Public, State of Florida
My commission expires:
This instrument prepared by:
Meyer and Erskine, P .A.
31211 Avenue A
Big Pine Key, FL 33043
J
EXHIBIT I TO MORT(;;\( ;1.:
In reference to the Mortgage Deed dated the _ day of__~_ _ ____ between
KEY WEST HOUSING AUTHORITY, Mortgagor, and MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY, the Mortgagee, the parties further covenant
and agree as follows:
I. Mortgagor's use of the property shall be limited to the provision of atTordable housing to very
low income, low income, or moderate income persons, as defined in s. 420.0004, Florida
Statutes.
2. Mortgagor is responsible for developing and managing the property as affordable housing
and ensuring compliance with the affordability requirements of I above.
3. Mortgagor shall obtain Mortgagee's written consent prior to conveying the real property and
said conveyance shall be made subject to this mortgage.
1\
l'I{()rvlISS0R Y NOTI.
u __, Monroe County, Florida
For value received the undersigned proll1lSeS to pay to the order of MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY the sum of
in legal and lawful money of the United States of America, with interest from date at the rate of
0% (zero percent) per annum on the balance from time to time remaining unpaid. The said
principal and interest shall be payable in lawful money of the United States of America at 3706
N. ROOSEYEL T BOULEY ARD, SUITE I, KEY WEST, FLORIDA 33040 or at such place as
may hereafter be designated by written notice from the holder to the maker hereof, on the date
and in the manner following:
This Note shall be due and payable in full on the same date as the inferior mortgage anticipated
between the Mortgagor and its Grantee or thirty (30) years from the date of execution of this
Note, whichever occurs first. This note shall bear deferred interest from the date of maturity
until paid in full at the highest rate allowed by law. It is further agreed if any Grantee of the
Mortgagor shall convey any part of the subject real property without the prior written consent of
the Mortgagee, then, at the option of the Mortgagee, the whole sum of the principal payable
under the note shall become immediately due and payable together with a sum equal to interest
from date until paid in the amount of9.5% per annum.
This Note with interest is secured by a mortgage on real estate, of even date herewith, made by
the maker hereof in favor of the said payee, and shall be construed and enforced according to the
laws of the State of Florida.
If default be made in the payment of any of the sums or interest mentioned herein or in said
mortgage, or in the performance of any of the agreements contained herein or in said mortgage,
then the entire principal sum and accrued interest shall at the option of the holder hereof become
at once due and collectable without notice, time being of the essence; and said principal sum and
accrued interest shall both bear interest from such time until paid at the highest rate allowable
under the Jaws of the State of Florida. Failure to exercise this option shall not constitute a waiver
of the right to exercise the same in the event of any subsequent default.
Each person liable hcreon whcthcr makcr or endorser, hereby waives prescntment, protest,
notice, notice of protcst, and notice of dishonor, and agrcc to pay all costs, including a rcasonable
attorney's fcc, whcther suit be brought or not, if, after maturity of this note or dc/lnllt hereunder,
or under said mortgage, counsel shall be cmployed to collcclthis note or to rroteclthe security of
said Illor(~'.age
l,
Whenever used herein the terms "holder," "maker," and "payee" shall be construed 111 the
singular or plural as the context may require or admit.
KEY WEST HOUSING AUTIIOlUTY
By:
I,
ATTACHMENT B
All of Lata 8 and 12 and a portion of Lot 11, Tract 3
describttd as follows: BEGINNING at the intersection of
the Westerly line of Division Street (Truman Avenue)
with thu Southerly line at Emma Street; thence westerly
along the southerly line of Em.ma Street a distance of
155.52 feet: thenC(;t in a Southerly direction parallel
with the westerly boundary of Division street (Truman
Avenue) for a distance of 113.33 feet to a point; thence
in a Westerly direction parallel with the Southerly
boundary of Emma Street tor a distance of 82.46 feet to
a point: thence in a Southerly direction parallel with
the Westerly boundary of Division Street (Truman Avenue)
for a distance of 89.34 feet to a point; thence in a
Westerly direction parallel with the Southerly boundary
of Emma Street for a distance of 82.46 feet to a point:
thence in a Southerly direction parallel with the
Westerly boundary of Division Street (Truman Avenue) fo~
a distance of 89.33 feet to a point on the Northerly
line of Fort Street, said point being 41.23 feet
Easterly frol11 the Easte r ly bounda ry of 01 i v ia Street 1
thence in an Easterly direction along the Northerly
boundary of Fort Street for a distance of 320.44 teet to
the Westerly boundary of Division Street (Truman
Avenue); thence Northerly along the Westerly bour.dary of
Division Street (Truman Avenue) for a distance of 292
feet to the point of beginning.
ATTACHMENT C
DEED RESTRICTIONS
The property shall be developed with affordable housing for very low, low, or moderate income
persons as defined in section 420.0004, Florida States, consistent with the following policies of
the Key West Housing Authority:
1. Income targeting shall be at 80% of median adjusted for family size. Income targeting may
increase to 120% to maintain occupancy level and financial feasibility but not to exceed 40%
of project units.
2. Rental rates shall be the same as the low income housing tax credit program as adjusted
annually.
3. The compliance requirements shall be the same as the L1HTC Program as contained in the
FHFC Compliance Manual and shall be the responsibility of the developer to insure
compliance annually.
4. The program requirements for the L1HTC, MRB, SAIL, and HOME programs when
competitively obtained require lower income targeting (rents), which take precedence when
utilized.
5. The US Department of Housing and Urban Development occupancy requirements (family
composition) shall be adhered to, as they pertain to maximum occupancy only.
The above restrictions shall not expire and may only be released by the Monroe County
Comprehensive Plan Land Authority.
ATLANTIC OCEAN
~L"",;
. ..
. - -'~.~~, ...
"- '~\
't',F