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Item J3 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: April 17, 2002 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a mortgage assumption agreement concerning Tropic Isle Apartments in Marathon. Item Background: This item is proposed to facilitate the management of affordable housing. In 1996 the Land Authority agreed to hold a $59,025 mortgage to assist the Monroe County Housing Finance Authority (MCHFA) in purchasing and redeveloping Tropic Isle Apartments on 41st Street in Marathon. The Florida Housing Finance Corporation provided additional financing in the form of a $1,119,107 mortgage. The redevelopment project is complete and the units are occupied as affordable housing. MCHFA now proposes to transfer ownership of the property to the Monroe County Housing Authority (MCHA). MCHA has agreed to accept the conveyance and assume the mortgages. The Florida Housing Finance Corporation has authorized assignment of its mortgage to MCHA. The proposed assumption agreement would authorize assignment of the Land Authority's $59,025 mortgage. Advisory Committee Action: This item will be considered by the Advisory Committee on April 23, 2002. Previous Governing Board Action: The Soard approved holding the mortgage on April 18, 1995. Contract/Agreement Changes: N/A Staff Recommendation: Approval, subject to Advisory Committee approval on 4/23/02. Total Cost: $ N/A Budgeted: Yes No Cost to Land Authority: $ N/A . Approved By: Attorney ~ OMS/Purchasing Risk Management Executive Director Approval: ~ . ~ DMark J. Rosch Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #3 , ASSUMPTION AGREEMENT THIS AGREEMENT entered into this _ day of ,2001 by and between THE HOUSING FINANCE AUTHORITY OF MONROE COUNTY, FLORIDA, a Florida public bond corporate and politic organized under Florida Statutes, hereinafter referred to as "original mortgagors", the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, hereinafter referred to as "Lender", and MONROE COUNTY HOUSING AUTHORITY, a body politic existing under the laws of the State of Florida, hereinafter referred to as "PURCHASER". The undersigned hereby agree to the assumption of the following described mortgage: Mortgage in favor of the HOUSING FINANCE AUTHORITY OF MONROE COUNTY, FLORIDA, executed by the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, recorded March 27,1996, in Official Records Book 1395 at Page 1409 of the Public Records of Monroe County, Florida, secured by a promissory note in the amount of $59,025.00. MONROE COUNTY HOUSING AUTHORITY, further agrees to pay said mortgage according to the terms and conditions stated therein. THE HOUSING FINANCE AUTHORITY OF MONROE COUNTY, FLORIDA, will be released from any and all liability under said mortgage. MONROE COUNTY HOUSING AUTHORITY Witness Witness BY: TITLE: THE HOUSING FINANCE AUTHORITY OF MONROE COUNTY, FLORIDA. Witness Witness BY: TITLE: Witness MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Witness BY: TITLE: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me this _ day of February, 2002 by on behalf of MONROE COUNTY HOUSING AUTHORITY and is personally known to me or who has produced a as identification. PRINTED NAME: NOTARY PUBLIC My commission expires: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me this _ day of February, 2002 by , as of HOUSING FINANCE AUTHORITY OF MONROE COUNTY, FLORIDA, and is personally known to me or who has produced a as identification. PRINTED NAME: NOTARY PUBLIC My commission expires: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me this _ day of February, 2002 by , on behalf of MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, and is personally known to me or who has produced a as identification. PRINTED NAME: NOTARY PUBLIC My commission expires: . RECEIVED APR ';1 2002 MONROE COUNTY HOUSING FINANCE AUTHORITY 1403 12th Street Key West, Florida 33040 (305) 292 - 1221 FAX (305) 292 -1162 March 28, 2002 Mark Rosch, Executive Director Monroe County Comprehensive Plan Land Authority 1200 Truman Avenue, Suite 207 Key West, FL 33040 Dear Mark: The Monroe County Housing Finance Authority (MCHF A) is certain that ownership of the Tropical Isle Apartments in Marathon is best placed with the Monroe County Housing Authority (MCHA). MCHA has been providing property management since the property was acquired and renovated. MCHA is in agreement with the transfer of ownership and assumption of obligations. Please consider this letter a request from both entities for the Land Authority to consider approving this transfer by executing the attached Assumption Agreement. I am also enclosing copies of Resolutions adopted by MCHFA and MCHA directing staff to pursue the transfer and authorizing the Chairmen to execute documents. The Florida Housing Finance Corporation which holds a mortgage on the property in the original principal amount of$1,119,107 has approved the transfer (enclosed). Thank you for your prompt attention with this request, and if I can assist in any way please call me. sinc1~:~- / /;f// ~anuel Castillo, Director ( / Special Programs Office JMC:bf Enclosures "dedicated to quality housing opportunities for Monroe County" RESOLUTION No. 00-01 A RESOLUTION OF THE MONROE COUNTY HOUSING FINANCE AUTHORITY REQUESTING AND -AUTHORIZING THE TRANSFER OF OWNERSHIP OF TROPICAL ISLE APARTMENTS TO THE MONROE COUNTY HOUSING AUTHORITY. WHEREAS, the Monroe County Housing Finance Authority acquired said property to further increase the housing stock for low"'-income residents of Monroe County; and. \VHEREAS, this purchase was made possible with the assistance of the Monroe County Comprehensive Plan Land Authority and through a Florida Housing Finance Corporation HOrvrn Loan at zero (0) interest rate for fifty years; and WHEREAS, the Monroe County Housing Authority has operated, maintained and managed Tropical Isle Apartments since acquisition; and ~EREAS, the transfer from the Finance Authority to the Housing Authority is beneficial to both parties in that it promotes and provides decent affordable housing for the very low and low-income residents of Monroe County; NOW, THEREFORE, be it resolved by the Board of the Monroe County Housing Finance Authority, as follows: Section I: Apartments. That staff is hereby directed to pursue the transfer of Tropical Isle Section 2: That the Chairman is hereby authorized to execute on behalf of the Finance Authority the documents required to complete the transfer of ownership to the Monroe County Housing Authority. Passed and adopted by the Monroe County Housing Finance Authority at a meeting held this 19th day of October, 2000. THE HOUSING AUTHORITY OF MONROE COUNTY, FLORIDA, a FI02#-=::::: By: /l----;" y Hubert, Chairman Resolution No. 222 A Resolution of the Monroe County Housing Authority Requesting and Authorizing the Transfer of the Tropical Isle Apartments from the Monroe County Housing Finance Authority Whereas, the Monroe County Housing Finance Authority acquired said property to further and increase the housing stock for low-income residents of Monroe County, and Whereas, this purchase was made possible with the assistance of the Monroe County Comprehensive Plan Land Authority and through a Florida Housing Finance Corporation HOME Loan at zero (0) interest rate for fifty years, and Whereas, the Monroe County Housing Authority has operated, maintained and managed Tropical Isle Apartments since acquisition, and Whereas, the transfer from the Monroe County Housing Finance Authority to the Monroe County Housing Authority is beneficial to both parties in that it promotes and provides decent affordable housing for the very low and low-income residents of Monroe County; and Now Therefore Be It Resolved, that staff is hereby directed to pursue the transfer of Tropical Isle Apartments, and Be It Further Resolved, that the Chairman is hereby authorized to execute on behalf of the Monroe County Housing Authority the documents required to complete the transfer of ownership for said property from the Monroe County Housing Finance Authority. Adopted this 25th day of October, 2000 SignBy ~~T~ FLORIDA HOUSING FINANCE CORPORATION JEa BUSH Governor CHARLI!S H. LVDECKER Chainnan RENE DIAZ DE VILLEGAS Vice Chainnan BOARD OF DIRECTORS STEPHANIE BALDWIN RICHARD MARTIN JACK MAXWELL CINDV MEVER-WEBB TERRV SANTINI ROBERT JAV TAVLOR STEVEN SEIBERT Ex Officio November 15, 2000 Mr. 1. Manuel Castillo, Director Monroe County Housing Finance Authority 1403 West 12th Street Key West, Florida 33040 Re: Tropical Isle Apartments 95HR-008 HOME Rental On October 27,2000, Florida Housing Finance Corporation approved the request of August 18, 2000 to transfer ownership of Tropical Isle Apartments to Monroe County Housing Authority. First Housing Development Corporation has been assigned to provide the credit underwriting. You should contact Doug McCrey at First Housing regarding this process. Please provide Florida Housing with the appropriate documentation evidencing the new ownership when it is finalized. Dear Mr. Castillo: If you have questions, please give me a call. Sincerely, . cc: Ian Rayboun, Loan Closing Coordinator Doug McCrey First Housing Development Corporation 1715 Westshore Boulevard, Suite 375 Tampa, Florida 33607 (813)289-9410 Fax (813)289-5580 227 North Bronough Street, Suite 5000 . Tallahassee. Florida 32301-1329 . 850-488-4197 Fax: 850-488-9809