Item L4
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: June 18, 2003
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval of a subordination agreement necessary for private financing of the
Maloney subdivision affordable housing development.
Item Background: The Land Authority has purchased and conveyed to the Monroe County Housing
Authority 9 lots in Maloney subdivision on Stock Island for development with 9 duplexes (18 units) of
affordable rental housing at 100% of median income. Like the Roosevelt Gardens development on the
fairgrounds property in Key West, the Housing Authority is applying for bank-qualified financing to fund
the construction. The proposed financing will encumber only 14 of the 18 units. As was also the case
with the Roosevelt Gardens development, the private lender requires the Land Authority to execute a
subordination agreement exempting the private lender from affordability restrictions in the event of a
for,.eclosure. Staff believes the risk of foreclosure on this project to be low, given the area's demand for
affordable housing, the positive annual receipts and debt service coverage indicated in the
development's pro-forma, and the adverse tax consequences of foreclosure to lenders providing bank-
qualified financing.
Advisory Committee Action: On May 29, 2003 the Advisory Committee voted 3/0 to approve the
proposed subordination agreement.
Previous Governing Board Action: On August 21, 2003 the Board approved a similar subordination
agreement for the 96-unit Roosevelt Gardens development.
Contract/Agreement Changes: N/A
Staff Recommendation: Approval.
Total Cost: $ N/A
Budgeted: Yes
No
Cost to Land Authority: $ N/A
Source of Funds:
N/A
Approved By: Attorney ~ County Land Steward
Executive Director Approval:
~' \a~Ch
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item LA #4
Prepared by and after
recording mail to:
Robert C. Reid, Esq.
Bryant, Miller and Olive, P.A.
201 South Monroe Street
Suite 500
Tallahassee, Florida 32301
SUBORDINATION AGREEMENT
THIS AGREEMENT made this 24th day of April, 2003, between THE
MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, a land
authority under Section 380.0663(1), Florida Statutes, hereinafter referred to as "Land
Authority," and FIRST STATE BANK OF THE FLORIDA KEYS, hereinafter referred
to as "Lender".
THE PARTIES STIPULATE AND RECITE THAT:
A. On April 5, 2001, MONROE COUNTY HOUSING AUTHORITY, hereinafter
referred to as "Owner," took title to certain real property from Land Authority by virtue
of a Warranty Deed recorded in O.R. Book 1686, page 748, of the Public Records of
Monroe County, Florida, a copy of which is attached hereto as Exhibit "A."
B. Owner has executed, or is about to execute, a mortgage and promissory note in
the amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) in
favor of Lender, and Land Authority acknowledges that such mortgage is in the best
interest of Owner.
C. Lender is willing to accept the said mortgage from Owner provided that Land
Authority will subordinate the restrictions contained in the deed of conveyance referred
to in paragraph A above.
For the reasons set forth above, and in consideration of the mutual covenants and
promises of the parties hereto, Land Authority and Lender agree as follows:
The deed restrictions contained in the Warranty Deed referred to in paragraph A
above, pertaining to the real property described on Exhibit "A," attached hereto, shall be
subordinate to the claim of Lender under the mortgage executed by Owner, dated April 1,
2003 and recorded April 24, 2003 in O.R. Book , page , of the Public
Records of Monroe County, Florida.
Land Authority shall execute such additional documents as Lender may
reasonably require to give effect to this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement at Monroe
County, State of Florida, the day and year first above written.
THE MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
WITNESSES:
Name:
By:
Murray E. Nelson, Chairman
Name:
STATE OF FLORIDA
COUNTY OF MONROE
The foregoing instrument was acknowledged before me this _ day of
, 2003 by Murray E. Nelson, Chairman of The Monroe County
Comprehensive Plan Land Authority, on behalf of said Authority. Such person is
personally known to me or has presented a as
identification.
(NOTARY SEAL)
NOTARY PUBLIC - STATE OF FLORIDA
Printed Name:
My Commission Expires:
2
FIRST STATE BANK OF THE FLORIDA
KEYS
WITNESSES:
By:
Kurt Lewin, Sf. Vice-President
Name:
Name:
ST A TE OF FLORIDA
COUNTY OF MONROE
The foregoing instrument was acknowledged before me this _ day of
, 2003 by Kurt Lewin, Sf. Vice-President of First State Bank of the Florida
Keys, on behalf of said entity. Such person is personally known to me or has presented a
as identification.
(NOTARY SEAL)
NOTARY PUBLIC - STATE OF FLORIDA
Printed Name:
My Commission Expires:
3
Exhibit "A"
W arran ty Deed
'., ~
R E C E tv i~> i\ ') .
J L /. t- f( ;) (] 20m
MONROE COUNTY HOUSING AUTHORITY
PO BOX 2476. KEY WEST. FL 33040.305296-5621
April 29, 2003
Mark Rosch, Executive Director
Monroe County Comprehensive
Plan Land Authority
1200 Truman Avenue, Suite 207
Key West, FL 33040
Dear Mr. Rosch:
On AprilS, 2001 the Monroe County Housing Authority (Housing Authority) took title to real
property recorded in O.R. Book 1686, page 748 from the Monroe County Comprehensive Plan
Land Authority (Land Authority) for the purpose of development of affordable housing. The
Housing Authority has secured Bank Qualified financing to complete the construction of
fourteen units on this property.
The executed mortgage and promissory note in the amount of One Million, Two Hundred and
Fifty Thousand dollars ($1,250,000.00) is acceptable to the Lender provided that the Land
Authority will subordinate the restrictions contained in the deed of conveyance to the claim of
Lender.
Enclosed please find a IS-year Pro-Forma indicating a debt service coverage of 1.20%, and
positive annual residual receipts starting in year one. These two indicators along with the
consequences to the Lender in Bank Qualified financing, in the event of foreclosure, should
provide the Land Authority the comfort and assurance of the developments continued
affordability.
For your convenience, I have also enclosed a Subordination Agreement, similar to the one used
for Roosevelt Gardens, and previously approved by the Land Authority. Please contact me with
any questions or if I can assist further.
Sinc /rely,
~/
c-A
J. anuel Castillo, Sr.,
Executive Director
JMC:cac
Attachments
;..
Eo-
Ci2
o
::
Eo-
~ <
,. ... ::;
........=:
ZZo
<ii<'"-
;;l.J '
OrllO
::~g:
;..u=:
Eo-O<
ZEo-~
;;lrll;..
o '"
u -
~
o
=:
Z
o
::;
e- N '" '" '" 0 e- O 0 e- e- '" '" '" '" 0 e- M 0 '" e- N C 0 r, '" l~ I T I I I I
~ "" '" M '" '" '" '" '" "" '" "" u1 0 '" '" 0 'Of 'Of
k '" N e- u1 r' '" 00 '" ,.., '" ,< '" N " - F' '"
e 8 ~ 0 .; '" ~
G 0 0 0 'Of 'Of I
>- :0 "" ~ rl ~
I I I I I
!-o '" I
., OJ I
... "
'1' 0 :; ;:;:; - ~ 0 0 ~ '1' -0 ~ -0 0 .... .... '1' r- r- N .... N
00 00 .... on on 00 r- 0 <::> 00 <::> r- ~ '1' -0 -D V',
III ~. '1' '1', N 0 r- r- on, M ~ 0;. '1' on N r- 0 r- r- r- - V'. -
- <<i '1', r-: '" '" N <<i .0 '" aO r-: ,...: N aO :to -D,
... M 00 - - :to - r-:
'" N N - N N - M 0 - 0 <::> <::> r- ~
.. N N :::, N - N - -
;.. :::,
0 ~ 0 0 '" 00 0 <::> 00 ~ M or, 0 ~ 0 ;:::; r- ~ :=: 00 00 N -0 0
-0 '1' - - N N 0 -0 M - .... <::> OC '" '" I/)
.... .... M 00, ~ r- -0 -0 "l N M oq, r- "l .... "l. r- N N N OC
- ,...: <<i o. <:5 N N N ..... <<i ..; cO '1' r-: ,...: -0. -0
... - M r- '" vi"
- N - - N N - M 0 0 0 -
'" 0 r- ~
.. N N ::::: N - N - -
;.. :::::
r- M '" r- N <::> 0 <::> 0 r- or, '1' '1' .... <::> .... r- N ~ r- r- N III OC
N N '1' OC or, or, M on 00 N ~ 0 '" III 00 OC 00 ":
::l N M -0 '" "l on, ...., r-, r-, 0 on, r- 0 on ~ r- r- - r-
-, ..... v-,' r- ~ N '" aO r-: <<i r- vi" v-,' q -
... - cO - M M aO - ~
'" - 0 N N - M '" 0 0 <::>
.. N ;::::; ::::: N N 2.- - - r- ~
;..
r- 0 r- ~ '1' 0 0 .... 00 N .... N 00 0 ~ N M ~ 0 0 N OC -0
N r- 0 r- '1' N N N -0 on on '1' - 0 OC .... N M .... '1' ":
~ 0 or, -0 on on '"'1. 0 N -0, "l on "l. r- q 00 "t N - N
- ...., M -0, -0 -
... ~ <<i ~ aO <:5 <:5 - "f '" - '" .... ..0 00 '1" .... '1" N
'" 0 0 0 '" N N - M ~ ::: 0 0 -
.. N N ::: - ~ - - r- ~
;..
r- 0 r- ~ OC r- 0 0 r- M on .... '1' r- 0 -0 - 00 ~ N N N '" ~
0 00 00 ~ .... .... 0 or, .... -0 0 r- .... M -0 -0 ":
= 0 '" ~ '1' OC on or, '"'1. "'- r- "l 0 "l .... 00 r- -0 -0 - ....
~ '" N N ~ ~ N cO <:5 ..0 N N N -0, O. -
cO - M cO
... ~ 0 '" - - - M '" ::: 0 0 -
'" - N ::::: - ~ - - r- ~
..
;..
- .... or, ~ - -0 0 0 -0 - N .... '" 00 <::> -0 III - -0 -0 -0 N ~ -
- -0 r- N .... -0 on 00 00 0 -0 III N III on ":
~ N, 00 0, or, N -0 -0 N, 00, N, '1', on on N -0 <::>. q - ....
'" 00 r-: aO :to :to '" ..0 ..0 ,...: -. -D. .... -
M r- ~ N - - ~
... ~ '" ~ - - - N OC ~ -0 <::> <::> -
'" - ~ - - r- N
..
;..
I I
M N on r:. OC '" 0 0 '" N M M 00 r- 0 N N 00 N -0 -D N .... ~ I
00 on M-o -0 N N 00 r- oo - N 0 .... OC -0 N N "l
'" on r- '"'1. on r-. r- r- -. r-. r-, '1'. N on ~ OC r-, '1' .... '1' - -
... ,...: '" ,...: ,...: ,...: '" N vi" '"'1. ~ ~ -D. OC
~~ 00 - - - - r-:
'" 00 - - - N OC 00 N '" ~ -
.. - - - ~ r- N
;..
0 N N 00 .... or, 0 0 or, -0 '" '" - 0 0 .... - '1' ~ <::> 0 N r- r-
N .... -0 r- oo 00 N 00 N on M 0 '" N r- oc 00 "l
OC -0, r-, 00 .... 00 00 -. -0, '"'1. '"'1. ~ on, -0 -0 '1' '" r- r- - -0
... N' N iii ..0 .0 v-,' aO vi" .0 -0 r-: ,...: -D. -
M on eS - - - M 00 ..0
'" 00 00 r- - - - N r- r- '" ~ -
.. - - t;. r- N
;..
on -0 ~oo .... - 0 0 - N 00 .... -0 on 0 OC ~ '1' 00 -0 -0 N ~ ....
- ~ ~ 00 00 r- 0 '" 00 '" 0 r- M - - "l
r- oo or, M - "l. 0 0 0, -0, 00 '"'!. -0 "l N ~ '"'1. - <::>
... .0 '" 00", .0 ..0 cO <<i vi" vi" N ..0 .0 -0, '" -
r::: M v-,' ~
'" r- ~~ - - - N r- r- '" ~ -
.. - - t; r- N
;..
or, ~ '" on .... on 0 0 on - N on on ~ 0 M -0 .... ;:;:; - N '" N
-0 M ~ .... - - N M r- N - 0 0 ~ '1' .... '1' "l
-0, .... 0, on "l. M M 0, "l '1' '"'!. on on, 0;. M 0 .... '1' - N
-0 '" r- v-,' v-,' cO '" vi" .0 ~. ~ <<i q OC -
on ' -0 - - - M N
... r- ::~ -0 - - - N r- -0 - '" ~ -
'" - - - t;. r- N
..
< ;..
::;
=:
0
'"- on M ~ '" -0 0 0 -0 N '" N r- '" 0 - <::> ~ :=: r-
0 0 r- N III <::>
-0 M '" '" 00 00 r- or, r- -0 '" 0 .... ~ III on "l
=: III -0 M '" 0 ..... or, or, ~ ...., 0 M "l r- '" ..... .... r- r- - ....
=- ... ..0 '" ~ or, <<i <<i cO N aO ~ r- N N -0, -
ei ~ - M :to
(.;) '" -0 -0 - - - N -0 -0 '" ~ - -
..
;.. - := r- N
Z
i=
<
=: - -0 r- N '" N 0 0 N -0 ~ .... - M 0 -0 III on S '" ~ N -0 r-
~ - M '1' '" 0>- 0>- N 00 00 - M 0 N 0>- 0>- -0 -0 "!
=- .... 00, '"'!. 0 on r- OO 00 '" '"'1. -0 -, '"'1. or, r- -0 r- N q 0, III
... v-,' N iii '" '" ~ '" vi" ~ ..0 r-, q .... -
0 - M ei - - -
'" -0 -0 '" - - N -0 on ~ 0>- ~ - ~
..
=: ;.. - - r- -
<
~
;..
,-..
III 00 N 0 N OC 0 0 0 0 00 N
:::. N M N t- O N 0>- 00 -0 '-0 V'.
'" .... '1' N M M 00 N - or, - 0 III OC N r- r- N M "!
Z ~ 0 N 0 N '"'!. N. 00 '"'1. M 0, M "l OC .... N. on "l. M - -0
... r-' cO N ",' cO N ..; 00 0 '-0, t- -
~ '" M ei M M - - M N N 0>- r-:
~ .. on -0 III - - N -0 on OC 00 -
- - - 2, r- -
Eo- ;..
'"-
/i:
.
N 0 M ~ .... 0 0 0 0 0 0 '1' 00 ~ 0 = .... '1' :=: ~ C", N N
N or, r- '" 0 0 .... -0 or, 0 '1' 0 '" ~ OC 00 r:::
N on 0 "l t- r- -0 -0 00 '"'!. 0>- 0, M on N r- - -0 '-0 - "!
... N '" r- r-: N N 00 ~ '" <:5 ~ r-: r-: ,...: -0. <::>
'" on t: - - cO ..0
.. on on .... - - - -0 ::: OC 00 -
tl ;.. - - := r- -
'c
;;l
:!: 0 N N N <::> 0 0 0 0 0>- 0 00 0 r- r- 0 r::: .., M <::>
00 -0 '1' 0-. 0 0 0 0 0 -0 N 0 '" <::> 0>- '" ~ N <::> "!
- 0 0>- q or, .... 0 0 00 '"'!. -0 ~ ..... on .... '1', 0>- '" ~ OC
... 00 N on ..; N' N 00 '" r-: ..; '1'. vi" t.r~ q "l.
'" t: 00 C",
.. .... on .... - - - III '1' r- OC 00 - ....
;.. - - ~ r- -
~ ~
::; r.;l ~
- 0 <
(/) ~ u =: '-' '"
0 ~ E '-' ...
u..I Z '-' ..
(/) '-' ,5" ~ V > 0 ..
~ z '-' 0 ~ 0 '-' "t "
" '" -0 " r.;l '" ;.;
E u..I '" C ~ " u
'" t.i Z U (/) ::;
0 ~ 0.. " .;: if) " V ..
u ~ C " if) (/) 'c z i= ;.; 15 0 '"
.5 (; u..I '" " u t.l U (;; " .;;
'CO ~ " "- ~ :0 f: < u
" ...l '" ,~ '" ... ~ ;;; E- O ...
'Ei E '" .. " ~ c c Z < =: ~ ..
8 < u e z ~ " "2 u ~ " if) =: eo rJJ
'" <- ~ o(l .~ t.l ~ E ~ ;.; 0
t.l " f: E C " E ~ Eo- 15
.5 0 8 if) 1;; u =- :;: u..I 0 =- t.l '"
::; ~ ~ if) '" ~ .~ '" ~ 0 '" u ~ 0.. u 0 '" t.i '" t.l ..
<- if) = < ~ '" u = '" ><
0 ~ I:l c:I :0 ::; ~ :0 '-~ ~ '" u ~ '" t.l e- o - u..I Eo- Eo- Z < Z Q
E '" .. '" 51 ~
u .c ::J ~ u..I E '" '" il =- <- <' 8 t.l == <' 2 G S
0 S ~ :5 u ...
~ " (/) 0.. " ~ < < ~ 0.. .5 ~ t.l u..I Z '""
0 '=' z ~ '=' Q ~ ~ ::::. e-
'"
1)
~
j
~
B
if)
V")
-;'
~
>-
"<F. "<F. "<F. ~
Q
M V") V") -0 '2
;]
;::,
V")
N
""
& 0. ill
'" '" ii 1>l iU
1:: '" ... ~
o U I:
U ~.= g, 1>l
.= '- '" >< '"
~ 0 '" "'-l ~
"<F. [ '5 ~
cii 5 v;> ><
z ~ >, "'-l E 5
'"
0 '@ u '@ Ol) U
I:
t ;] '" ;] '" '"
I: U I: I: fr
I: > I: '"
::E <( <( ::E ~
:::J cO ..; u -0 .;
CIl
CIl
<(
N N
-0, ~
I'- I'-
~ '"
...
'" ii
~ >,
>- "<F. M 0 >, "<F. 0
... 00 I'- M 8>2
C2 -0 0 V") 0
o<:! 0- 0 0 0
0 ~ .,.) ..,f 0 fj ::: 0
::c "" ~
0 l:; Cl
... ::E _ ';to U
:::J < "'-l .= ;;
~Q~ U a:
;; '-l
ZZO ~ "'-l 8 CIl
(iij't "'-l U C 't C ...
CIl ==
:::JCIlO f- ;; ~ ~ '" !3 '-l
o-a: iU CIl iU '" 5
=::'=Il. == ~ OJ 6 .0 OJ 6 Q
"'-l "'-l i
>Ua: Cl i CIl ~ U ... '" ~ U f- ..l
"'0< f- < Cl <
~ <0 '@ :::J
Z"''-l 0 .. 0 c:l .. z
:::JCIl> "'-l ell ;]
"'-l ell 0, Cl .. I: 1:: Z
o III ..l .. 0 ell I: 0 <
U :::J ell V") ..l 1:: t: <( ::E
Cl t:"l.<( 0 = Ol) ..l
'-l = - :::J ::E ::E ~ " <
0 "'-l ::E""z I: ...
a: ::c 'El ." 0
U - Z = " l:l 0
z ., <( ~ I: ...
0 CIl - '" N CIl
::E
N N
'" '" '" 0 0 0 0 -0 .".
'@ '@ '@ 00 00 0- 0,
:::l E :::l E :::l E 0 00 0 0 N
I: 0 I: 0 I: 0 0 00 "l. 00 00 "" V")
I: U I: U I: u "" -.0
<( .= <( .= <( .= I'- I'- .". .". ""
"" "" "" ""
N
0 0 -0
'@ '@ ~ 0 0 0-
.". .". N^
'0 '0 0 0 .". M M
.". 0- ""
f- ... f- "" -.0 .,.) N N
"" "" "" ""
'"
~
~
'"
~
a:
'" 0 0
'5~~~
~ """"
"'-l
::E
R
~
~
"'-l
::c
...
g
<(
f-
Z ..
"'-l e
~ 8
~ .s
o =
"'-l ..
..l:s
:::J ..
[;3::E
::c f!.
Ue
CIl III
~
'2
:::J
';to
'"
'2
:::J
';to
~
~
';to
OOI.O~"1"
~<(
f-::
'2 ~
:::J c:l
..
E
Cl
<(<(~~
c:lal.o=
~~~:.5
al al ..
N M ::E
f!.
III
\0
~<(
f- ::
~
~ al
<(<(~
alc:l.o
~ N :s
~~CIl
c:lal
N M
e
Cl
..
.s ~ <(
i...::
:a ~
~ ~ al
f!.
e
oc
'@ ....l
<( <( '0 <(
c:lc:l.of-
~ r-;-t :::I 0
~~CIlf-
alal
N M
'#.~
N::E
@lo
'" U
E Z
o-"'-l
g~::E
"'-"'-l0
E ~ ::c u
82f-z
,=1:0-
_.!!!..J..l
[{i<l<(<(
B.~ 13 13
.=::Ef-f-
'"
~
g
@
@
@
"E
~
x
.9
<n