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Item K2 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: April 16, 2003 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a resolution authorizing the conveyance of property in Reimanns subdivision to the Middle Keys Community Land Trust, Inc. for the purpose of providing affordable housing. Item Background: The subject property consists of 4 lots totaling 1.2 acres on 73rd Street Ocean in Marathon. The property is zoned Improved Subdivision and has vegetation classified as disturbed with exotics. The City of Marathon nominated the property and requests that it be conveyed to the Middle Keys Community Land Trust, Inc. (MKCL T) for development with affordable housing. MKCL T is a newly-formed not-for-profit affordable housing group that proposes to build 4 single-family homes for occupancy by moderate income families. The community land trust housing model is a hybrid of homeownership and rental, whereby MKCL T would sell the houses to qualified buyers and lease them the underlying land. The proposed resolution authorizes the Land Authority to impose perpetual affordable housing deed restrictions. Advisory Committee Action: On March 26, 2003 the Advisory Committee voted 5/0 to approve the proposed conveyance, subject to legal review of MKCL T's organizational documents. Previous Governing Board Action: This would be the first property the Board has conveyed to MKCL T. Contract/Agreement Changes: N/A Staff Recommendation: Approval. Total Cost: $ 24.00 (recording fees) Budgeted: Yesl No Cost to land Authority: $ 24.00 Source of Funds: Land Authority (Tourist Impact Tax and State Park Surcharge) Approved By: Attorney ~ Executive Director Approval: County Land Steward ^,\o ~~ - Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #2 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE CONVEYANCE OF PROPERTY IN REIMANNS SUBDIVISION IN MARATHON TO THE MIDDLE KEYS COMMUNITY LAND TRUST, INC. FOR THE PURPOSE OF PROVIDING 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 and dispose of interests in real property for the purpose of providing affordable housing to very low, low, and 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 Middle Keys Community Land Trust, Inc. (hereinafter MKCL T) is a not-for-profit Florida corporation organized for charitable purposes that include providing for the development and preservation of decent, permanently affordable housing for low and moderate income people in the Middle Keys area; and WHEREAS, Marathon City Commission Resolution #02-07-93 nominates Lots 12-15 of Reimanns subdivision on 73rd Street Ocean in Marathon (hereinafter "subject property") for purchase by the Land Authority as an affordable housing site in partnership with MKCL T; and WHEREAS, the Land Authority has acquired the subject property; and WHEREAS, said Resolution requests that the Land Authority convey the subject property to MKCL T and allow MKCL T to manage the property as affordable housing; and WHEREAS, at a meeting held on March 26, 2003, the Land Authority Advisory Committee voted 5/0 to recommend approval of said conveyance, subject to the conditions 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: The Chairman of the Land Authority Governing Board is hereby authorized to sign a deed conveying Lots 12-15, Reimanns subdivision (PB 2-145) on 73rd Street Ocean in Marathon (hereinafter "subject property") to the Middle Keys Community Land Trust, Inc. Said deed shall restrict future use of the property to the requirements specified in Attachment A. Page 1 of 2 PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of , 2003. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Executive Director Murray E. Nelson Chairman Approved for Legal Sufficiency Larry R. Erskine Page 2 of 2 ATTACHMENT A AFFORDABILlTY COVENANTS 1. Affordability Period. These affordability requirements shall run with the property and shall not expire. 2. Income Limits, Use and Transfer Restrictions. Middle Keys Community Land Trust, Inc. (hereinafter "MKCL I) shall make the property available as either ownership housing or rental housing in accordance with the conditions specified below. 2.1. Ownership Housing. MKCL T shall retain title to the land under ownership housing and shall not subsequently transfer title to the land without approval of Monroe County Comprehensive Plan Land Authority (hereinafter "MCLA"). Ownership of the improvements, together with a leasehold interest in the land, may be conveyed by MKCL T subject to the following conditions. 2.1.1. Use and Occupancy. The subject property shall be owner occupied and used as the homeowner's primary residence and such other uses incidental to residential use as may be permitted by local zoning and land use regulations. 2.1.2. Income Qualified Buyers. Except in the case of inheritance by the owner's spouse, children, or a member of the household who has resided on the premises for at least a year prior to conveyance by gift or estate, ownership shall be restricted to households earning less than or equal to 120% of the Monroe County median income adjusted for household size at the time of conveyance (hereinafter "Income Qualified Buyer"). 2.1.3. Affordability. For ownership housing, monthly housing costs, defined as principal, interest, taxes, insurance (PITI), homeowner association fees [if any] and ground rent, shall not exceed the annual adjusted gross household income multiplied by 0.30 and divided by 12, all in accordance with 9420.0004, Florida Statutes. 2.1.4. Resale Limits. The leasehold estate and the improvements located thereon may be transferred, subject to the provisions of Paragraph 2.1.2 above, provided the transfer price does not exceed the sum of the price the current owner paid plus 25% of the amount by which the unrestricted market value of the improvements may have appreciated during the current owner's period of ownership. 2.1.5. Special Provisions. (None) 2.2. Rental Housing. MKCL T shall retain title to the land under rental housing and shall not subsequently transfer title to the land without approval of MCLA. Ownership of the improvements located on such land may either be retained by MKCL T or may be sold together with a leasehold interest in the land to another legal person subject to the following conditions. 2.2.1. Use & Occupancy. The subject property shall be operated, managed and otherwise administered as permanently affordable rental housing and such other uses incidental to residential use as may be permitted by local zoning and land use regulations. 2.2.2. Income Qualified Tenants. Occupancy of rental housing units shall be restricted to households earning less than, or equal to, 120% of the Monroe County median income adjusted for household size at the time of initial occupancy (hereinafter Page 1 of 2 "Income Qualified Tenant"). 2.2.3. Affordability. For rental housing, affordable shall be defined as monthly housing costs (defined as rent plus utilities not provided by owner) that do not exceed the annual adjusted gross household income multiplied by 0.30 and divided by 12, all in accordance with ~420.0004, Florida Statutes. 2.2.4. Special Provisions. (None) 3. Profit. MKCL T is a not-for-profit corporation. MKCL T is prohibited from earning profit on the subject property. 4. Refinancing Limits. MKCL T shall be prohibited from encumbering the land for any purpose without the prior approval of MCLA, except for encumbrances for projects resulting in capital improvements to the property. 5. Affordability Monitoring. MKCL T will be responsible for ensuring these affordability requirements are maintained. Whenever the leasehold estate is transferred MKCL T shall provide certification to the MCLA documenting these affordability requirements have been met. Page 2 of 2 ~ c:~ Om -I u.. ::!Ell) ::E~ ~Z 1-<( Zw ::So ~O ::!Eo ::!E~ I --~L f-- t . _ -~ a: ,- I t . .il I~I 1 ~ .. ..J .... <I I 4 Z 4 a: <I 10 U ~ -:li 1 ~ . . g l!!: l!!: 11 .l~ .. IC . . C i> > III I!l 20 . . . d d I:J 7 :;t SR :II> () 0 10 i!i l!!l l!!l I 10 . . 10 a c . 'i: I 11 :;t 7 0 . U 11 1& I SR I! . 10 14 VACA il C 8 12 d . 11 12 17 1. 1. 4 " 11 . 1. 1. 1. 11 20 17 2e 21 1. 21 U Mile Marker 50.8 Island Vaca Key Property Reimanns Subdivision . ... .. J,' , ~t. .' ,. c:e, 'j~j <t < l '" ,,' t";' ,...., ";$!;"'{ I' " .