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
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