Item I5
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: February 18, 2004
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval of a resolution approving modifications to the Tradewinds
Hammocks Phase II affordable housing development and financing.
Item Background: In August 2001 the Land Authority committed to making a $924,000 50-year, zero-
interest mortgage as the local contribution for Tradewinds Hammocks Phase II, 52 units of rental
housing for persons of low and very low income levels in partnership with the Florida Housing Finance
Corporation. Monthly rents were to range from $236 for an efficiency to $756 for a 3 bedroom/2 bath
and construction was scheduled to begin this year. The proposed resolution allows the
owner/developer to substitute private financing for the FHFC financing and sell the units to moderate
income persons, subject to a long-term ground lease. The owner/developer would then assign the
leases and convey the land to the Monroe County Housing Authority to ensure long-term affordability.
The units, subject to ground leases, are proposed to sell for $167,600 to $219,900 with the benefit of
the Land Authority mortgage.
Advisory Committee Action: On November 24, 2003 the Advisory Committee voted 3/0 to approve a
homeownership/land lease scenario, subject to the owner/developer's willingness to reduce the
purchase prices to a maximum of $200,000 on a dollar-for-dollar basis if additional funding is available.
Previous Governing Board Action: On 2/22/01 the Board denied the $924,000 loan request. On
4/11/01 the Board was sued by the owner/developer. On 8/16/01 the Board approved the $924,000
loan request. On 12/17/03 the Board conceptually approved a conversion to moderate income
homeownership, subject to the developer providing certain follow-up documentation.
Contract/Agreement Changes: 1) homeownership; 2) moderate income occupants; 3) no FHFC
financing; 4) developer to convey land to Housing Authority; 5) Housing Authority to hold ground lease
Staff Recommendation: Pleasure of the Board.
Budgeted: Yes X
No
Total Cost: $ 924,000
Cost to Land Authority: $ 924,000
Source of Funds: Land Authority
(Tourist Impact Tax and State Park Surcharge)
Executive Director Approval:
County Land S~ _'
~~1 J. Ro2h -
Approved By: Attorney ~
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item LA #5
Sequence of events:
1. Tradewinds repays $700,000 to MCLA
2. Tradewinds obtains private construction loan
3. Tradewinds builds 52 units
4. Tradewinds sells 52 units at reduced prices subject to ground lease
5. Tradewinds pays off the construction loan
6. Tradewinds conveys the land and assigns 52 ground leases to MCHA
7. MCLA disburses $924,000 mortgage loan to MCHA
8. MCHA disburses loan proceeds to Tradewinds
9. MCHA collects sufficient ground lease rent to repay MCLA mortgage in 50 years
RESOLUTION NO.
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY APPROVING
MODIFICATIONS TO THE TRADEWINDS HAMMOCKS PHASE II
AFFORDABLE HOUSING DEVELOPMENT AND FINANCING.
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, on August 16, 2001, the Land Authority Governing Board approved Resolution 09-
2001, authorizing a $924,000 zero-interest, 50-year mortgage loan in support of the proposed
development of 52 units of affordable rental housing known as Tradewinds Hammocks Phase II
on Lots 1 through 14, inclusive, Block 4, Industrial Acres (PB 5-15); and
WHEREAS, on May 16, 2000, Tradewinds Hammocks II, LLC recorded affordable housing deed
restrictions consistent with Resolution 09-2001 (OR 1633-729); and
WHEREAS, on November 8, 2002, pursuant to Resolution 09-2001, the Land Authority
disbursed the $700,000 first draw of the $924,000 loan secured by a mortgage and promissory
note (OR 1832-1507); and
WHEREAS, to date Tradewinds Hammocks II, LLC has not received the tax credit and SAIL
loan financing from the Florida Housing Finance Corporation contemplated in Resolution 09-
2001; and
WHEREAS, on November 14, 2003, Tradewinds Hammocks II, LLC requested authorization to
convert the proposed development from rental to homeownership and to modify the property's
deed restriction to increase the income limits from 100% to 120% of median income; and
WHEREAS, the Land Authority Advisory Committee considered this request at a meeting held
November 24, 2003 and voted 3/0 with one abstention to recommend approval; NOW,
THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY:
Section 1. Tradewinds Hammocks II, LLC shall repay to the Land Authority, no later than March
18, 2004, $700,000 as satisfaction of the Land Authority's mortgage. Upon receipt of said
repayment, Land Authority shall execute the necessary documents to modify the property's
deed restriction to increase the income limits from 100% to 120% of median income for either
homeownership or rental housing development.
Section 2. Upon the Land Authority's timely receipt of the repayment referenced above, the
Land Authority shall offer to provide a fifty-year, zero-interest mortgage loan to the Monroe
County Housing Authority in the amount of $924,000 subject to the following conditions:
Page 1 of 2
A. Tradewinds Hammocks II, LLC has conveyed title to the land to the Monroe County
Housing Authority free and clear of any construction loan encumbrances.
8. Tradewinds Hammocks II, LLC has constructed and received certificates of occupancy
for the entire 52-unit residential development in accordance with the site plan previously
approved by Monroe County.
C. Tradewinds Hammocks II, LLC's sale of the units is subject to a ground lease acceptable
to and in favor of the Monroe County Housing Authority.
D. The purchase prices for which Tradewinds Hammocks II, LLC sells the units shall not
exceed the prices indicated in Attachment A.
E. Tradewinds Hammocks II, LLC has used any public funding it receives to reduce the unit
sale prices dollar-for-dollar from the prices indicated in Attachment A.
F. The Monroe County Housing Authority has entered into an agreement with the Land
Authority specifying that the Housing Authority shall forward the proceeds of the Land
Authority's loan to Tradewinds Hammocks II, LLC as consideration for selling the units at
the prices indicated in Attachment A. The ground lease rents charged by the Housing
Authority shall be sufficient to fund repayment of the Land Authority loan.
Section 3. The Land Authority's offer to make the loan identified in Section 2 above shall
commence upon the Land Authority's timely receipt of the $700,000 repayment in accordance
with Section 1 and shall remain valid until August 18, 2004. In the event all of the conditions in
Section 2 are not satisfied by August 18, 2004, the Land Authority's offer shall expire, in which
case Tradewinds Hammocks II, LLC, having repaid the $700,000 Land Authority mortgage, shall
have no obligation to the Land Authority other than complying with the affordable housing deed
restriction as modified in Section 1 above.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this day of 2004.
(Seal)
ATTEST:
MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
Mark J. Rosch
Executive Director
David P. Rice
Chairman
Approved for Legal Sufficiency
Larry R. Erskine
Page 2 of 2
ATTACHMENT A
Tradewlnds II
Key Largo, Monroe County, FL
Sales Chart as a %
Construction Loan Amount $7,639,000 Gro~~ per Unit per SE of Sales
Bridge Loan Amount $500,000
Number of Units In Phase 52 100% of fatal Units Sale Price $11.825.000 $227,404 $224
Number of Units, Total Project 52 Releases, 100% $10.778.700 $207,283 $204 912%
SF . Living Space 52,784 Building Cost $10997,250 $211,486 $208 930%
Required Pre.Sales 0 0% loan. $8,139,000 $156.519 $154 688%
Est. Clos Costs 7.00%
Loan I Cost 74.0%
I Release Price at 100'/. Net Sales Proceedsl
Developer's Release Release Release
Es_ted Net Sale 100% Paid to Paid to
Unit Unit Contract or Unit Retail Contract Proceeds Pro Rata of Net $ Const. Ln. Bridge Ln.
Building Floor Nbr Type Sq. Ft. Reservation Buyer Deposit PrIce Price (less 7%) Loan Adv. 80% 20%
Three 1 1 2f2 966 $235,000 $0 $0 $0 $0 $0
2 3f2 1.210 $240,000 $223,200 $168,538 $223,200 $178.560 $44.640
3 2f2 966 $225,000 $209.250 $158,005 $209,250 $167,400 $41.850
4 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41.850
5 3f2 1.210 $240,000 $223,200 $168,536 $223,200 $178.560 $44.640
6 1/1 700 $185,000 $172,050 $129,915 $172,050 $137,640 $34,410
7 2f2 966 $225,000 $209,250 $156,005 $209,250 $167,400 $41.850
8 312 1.210 $240,000 $223,200 $166,538 $223,200 $176,560 $44.640
9 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41.650
10 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41.850
2 1 2f2 966 $235,000 $218,550 $165,027 $218,550 $174.840 $43.710
2 3f2 1,210 $240,000 $223,200 $168,536 $223,200 $178,560 $44,640
3 2f2 966 $225.000 $209,250 $156,005 $209,250 $167,400 $41.850
4 212 966 $225.000 $209,250 $158,005 $209,250 $167,400 $41,850
5 3f2 1,210 $240,000 $223,200 $168,538 $223,200 $178,560 $44,640
6 1/1 700 $185,000 $172,050 $129,915 $172,050 $137,640 $34,410
7 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41,850
8 3f2 1,210 $240,000 $223,200 $168,536 $223,200 $178,560 $44.640
9 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41.850
10 2f2 966 $225,000 $209,250 $158,005 $209,250 $167,400 $41,850
11 3f2 1,210 $240,000 $223,200 $166,538 $223,200 $176,560 $44.640
12 2f2 966 $235,000 $218,550 $165,027 $218,550 $174,840 $43,710
3 1 212 966 $235.000 $218,550 $165,027 $218,550 $174,840 $43.710
2 3f2 1,210 $240.000 $223,200 168,538 223,200 $178.560 $44,640
3 212 966 $225,000 $209,250 158,005 209,250 $167,400 $41.850
4 2f2 966 $225,000 $209,250 158,005 209,250 $167,400 $41.850
5 3f2 1,210 $2<<1.000 $223,200 168,536 223,200 $176,560 $44.640
6 1/1 700 $185.000 $172,050 129,915 172,050 $137,640 $34,410
7 2f2 966 $225,000 $209,250 156,005 209,250 $167,400 $41,650
8 3f2 1.210 $2<<1,000 $223,200 168,538 223,200 $178,560 $44,640
9 2f2 966 $225,000 $209,250 156,005 209,250 $167,400 $41,650
10 212 966 $225,000 $209,250 158,005 209,250 $167,400 $41,650
11 3f2 1,210 $2<<1,000 $223,200 168,538 223,200 $178,560 $44,640
12 2f2 966 $235,000 $216,550 165,027 216,550 $174,840 $43,710
Four 1 2f2 966 $235,000 $216,550 165,027 218.550 $174,840 $43,710
2 3f2 1,210 $2<<1,000 $223,200 168,538 223,200 $176,560 $44,640
3 212 966 $225.000 $209,250 156,005 209,250 $167,400 $41,850
4 212 966 $225,000 $209,250 156,005 209,250 $167,400 $41.850
5 3f2 1,210 $2<<1,000 $223,200 168,538 223,200 $178,560 $44,640
6 1/1 700 $195,000 $181,350 136,937 181,350 $145,080 $36,270
2 1 2f2 966 $235.000 $216,550 165,027 216,550 $174,840 $43,710
2 312 1,210 $240,000 $223,200 168,538 223,200 $178,560 $44,640
3 2f2 966 $225,000 $209,250 158,005 209,250 $167,400 $41,850
4 212 966 $225,000 $209,250 158,005 209,250 $167,400 $41,850
5 3f2 1.210 $2<<1,000 $223,200 168,538 223,200 $178,560 $44,640
6 1/1 700 $195,000 $181,350 136,937 161,350 $145,080 $36,270
3 1 212 966 $235,000 $216,550 165,027 218,550 $174,840 $43.710
2 3f2 1,210 $2<<1,000 $223,200 168,538 223,200 $178.560 $44,640
3 2f2 966 $225,000 $209,250 158,005 209,250 $167,400 $41,850
4 2f2 966 $225.000 $209.250 156,005 209,250 $167,400 $41.850
5 3f2 1,210 $2<<1,000 $223,200 168,538 223,200 $178,560 $44.640
6 1/1 700 $195,000 $181,350 136,937 181,350 $145,080 $36,270
52,784 $11,825,000 $0 $10.778,700 $6,139,000 $10,776,700 $8,622,960 $2,155,740
A vg Release per Unit $207,283 $165,626 $41,457
Payoff Point - Units 46 12
Payoff Point % 89% 23%
of Canst. Ln. of Bndge Ln.
I
SOURCES OF FUNDS
Construction Loan
Bridge ,-oan
Subordinate Loan / Grant
Syndication Equity
Projected Net Sales
Deferred Developer Profit & Overhead
Deferred GC Profit
Other Deferrals
Deferred Operating Reserve
Est Investment Earnings (if applicable)
Borrower Equity
TOTAL SOURCES
USES OF FUNDS
ACQUISITION.
Purchase Pnce - Land
Purchase Pnce - Building
Brokerage Fee/Carrying Costs/Other
TOTAL ACQUISITION
CONSTRUCTION CONTRACT
Site Work
Structure
General Requirements
General Contractor Overhead
General Contractor Profit
Construction Contingency
Other-Impact Fees
Other-Amenities
TOTAL CONSTRUCTION CONTRACT
FINANCING COSTS
Conslructio Loan Commitment Fee
Bridge Loan Commitment Fee
Lender's I nspecting Engineer
Borrower Attorney
Lender Attorney
Due Diligence Fee
Loan Closing Costs
Ptnshp. Costs
Other-
SOURCE & USE
Tradewinds \I
Key Largo, Monroe County, FL
CONSTRUCTION PHASE
COSTS I DEFERRED I TOTAL
$6,715,000
500,000
924,000
o
o
o
o
1,399,067
$9,538,067
$700,000
o
224,000
$924,000
o 0
6,017,350 0
361,041 0
120,347 0
361,041 0
215,000 0
o 0
. _ __~.90,000 ______~
$7,274,779
50,363
3,750
15,000
50,000
10,000
o
25,000
20,000
o
o
$6,715,000
500,000
924,000
o
o
o
o
o
o
o
1,399,067
$9,538,067
o
o
$0
$0
o
o
$0
$700,000
o
224,000
$924,000
17,769
o
6,017,350
361,041
120,347
361,041
215,000
o
200,000
$7,274,779
139,900
o
50,363
3,750
15,000
50,000
10,000
o
25,000
20,000
o
12/3/03 243 PM
CONSTRUCTION COMPLETION PERMANENT
PHASE
COSTS I DEFERRED I TOTAL
$6,715,000
500,000
924,000
o
o
o
o
1,399,067
$9,538,067
$700,000
o
224,000
$924,000
o
6,017.350
361,041
120,347
361,041
215.000
o
200,000
$7,274,779
50,363
3,750
15,000
50,000
10,000
o
25.000
20.000
o
n
o
$6,715,000
500,000
924,000
o
o
o
o
o
o
o
1,399,067
o
o
$0
$9,538,067
$700,000
o
224,000
$924,000
o
o
o
o
o
o
6,017,350
361,041
120,347
361,041
215.000
o
200,000
$7,274,779
o
50,363
3,750
15,000
50,000
10,000
o
25,000
20.000
o
o
TOTAL
$0
o
924,000
o
10,137,930
o
o
o
o
o
o
$11,061,930
$700,000
o
224,000
$924,000
.-
o
6,017,350
361,041
120,347
361,041
215,000
o
200,000
$7,274,779
50,363
3,750
15,000
50,000
10,000
o
25,000
20,000
o
o
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MONROE COUNTY
OFFICIAL RECORDS
FILE 1:1.:1. 7 9 5 B :1.
BKI:1. 6 3 3 PGt 7 :2 7
Thio -....- _ ...,....t '"
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3 U SB I 7 lIlnol. ~ I'Ioar
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Tot...... 954-761-61:13
RCD May 16 2000 03.47PM
DANNY L KOLHAGE, CLERK
DEED DOC STA~ 2332.40
05/16/2000 ~ DEP CLK
Grantee TIN
~
WARRANTY DEED
THIS INDENTURE, made this 10th day of May 2000. between MANGIL INC., a
Florida Corporationt of the County of Broward and State of Florida, "GRANTOR".. and
TRADEWINDS HAMMOCKS D, LLC, a Florida Limited Liability Company, whose post
office address is 5505 N. Atlantic Avenue, #115. Cocoa Beach, Florida, 32931. of the County of
Brevard, State of Florida, "GRANTEE"..
WITNESSETII: That said GRANTOR, for and in consideration of the sum of TEN
AND NO/loo (510,00) DOLLARS. and other good and valuable considerations, to said
GRANTOR in hand paid by said GRANTEE. the receipt whereof is hereby acknowledged. has
granted, bargained and sold to the said GRANTEE, and GRANTEE's heirs and assigns forever,
the following described land, situate, lying and being in County, Florida, to wit:
Tax Folio Number: See Exhibit "B" attached hereto.
Lou 1 through 14, inclusive, Block 4, INDUSTRIAL ACRES, .. per plat thereof
recorded in Plat Book 5, Page 15, of the Public Reconb of Monroe County, Florida.
The above-dacribed property is conveyed by Grantor to Grantee .ubject to the
Deed RestrictioDl let forth in Exhibit" A", aUached hereto and made a part hereof,
and the GraDtee by ita acceptance of that conveyuce, ap'eeI to accept .ucll Deed
ReltriCtiODl aDd abide by the term. thereof dUMg the period of time that the
Grantee is the owner fo the within described real property.
and said GRANTOR does hereby fully warrant the title to Slid land, and will defend the same
against the lawful claims of all persons whomsoever.
."ORANTOR".... "ORANl'EE" _ UMd far aiaau-lW pIunI, . oaaMJd requir&
IN WITNESS WHEREOF. GRANTOR has hereunto set GRANTOR's hand and seal the
day and year first above written.
Signed, sealed and delivered
in the presence of:
~ J 4------'
PrintName JUf!!!- T. B~'ESS
~ )
, l L... (~~ ~A-
Print Name {bs;{lO-Y-
STATE OF FLORIDA
COUNTY OF BROW ARD
FILE ':J... 1 "7 9 5 a 1
BK'1 G 33 PG#72 8
The foregoing instrument wu acknowledged before me this ~ day of
~ ' 2000. by Gilbert Hyatt, m. President ofMangil Inc.. who is personally
known to me or wile pFodtleed as identifteetiell, and who did /did not
.X-.. take an oath.
My Commission Expires:
@J4-
Notary Public
------
/":. ~ 'ue T"
*iI*MrCorrlmlMlon CCl31210
'\;..~ !lIplnl. AprI21, 2004
F:\ WordOocla\8ue\OiWamrio\Manail &0 Tradewiacl.-LotII1.14\W--'Y-DMcI.doo
~'MaY.l0. 2000.r.1 8:28AM FFHARLEE DORGES ET AL A"1248:22
. .. \.-.,..r
No.6059
P. 2 p.2
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FILE t 1 1 "7 9 5 8 1
BK# 1633 PG#"7 2 9
EXHIBIT "All
DpD RESTRIcnONS
~
The property shan be developed with affordable housing for very low, low, or moderate income
persons as dcfinod in IleCtion 420.0004, Florida. S1Itutcs, consistent with the folJowinQ affordable
~ousing requirements oftl\c~oaroe ~.L8ndDevdopment Rqulationa:
1. ~ annuallKlju.sted ~ss in~rne fur1he ~ed or teDant-occupied household shall
not eJC;oeccI one hundred (100j percent of1ho II1ClCtiaD adjUstecl.~ss annual incoa1e within Monroe
County. .
2, The yearly RUt (employee~) IbIIl not exceed 1birty (30) pment each month of
that which rcpcesents the median adjusted JI'OIS IIb1UII ~ Cot households within Momoe
I
~w~ . . :
~
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3, Unda- MODrOo CoWlty Code Section 9.5-266, dIoatfOmable housina dweUiDa unit is restricted
to a maximum of one thousand three hundred (J,300) SCIWft feet ofbabi1able spICe.
4. The Ipplicat has used the a1foxdablc housiq proaram to pin Idditional pobrts in the permit
allocation system pursuant to Momoc COualy S<<tion 9-S-122.3(6),
5. These deed restri~ODI sbaIl remab1 in e.ffcot in petpetuity regardless of the abiHty of the
own~s)<<occupants(s) to complyor~ ODmlllDuaJ blISisor as otherwise m,yberequhed.
, .
I
t
,
6. All of the latrictions herein shall bel biD.dina 1IpOG any 1nasferees, loaeea., heirs, &sBigns or
successors in the chain of title.
In addition to the foreaoin& in accordance with 1be Memorandum of Understanding between
Monroe County ItI1d the ~811m= of Commuaity Affairs dated Dc<:ember 27, 1999, persons
currently OJ: formerly housed in lU1 illegal downmdn" adosure .....ho have or will be displKed as a
result oftbc removal of said encloS\ll'll and who mcet.a1.l applicable aft'ordabilltyrequirements sJudl
be given first priority when the Tradewinds ~ housing OCCUJlBUtJ arc Idectcd:
.
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FILE t:1 :1 '795 a :1
BK' :1 6 3 3 PGt'7 3 (2)
EXHIBIT "Blt
ALTERNATE KEY NUMBER
PROPERTY
1559121
1559130
1559148
1559156
1559164
1559172
1559181
1559199
1559202
1559211
1559229
1559237
1559245
1559253
Lot 1, Block 4, Industrial Acres
Lot 2, Block 4
Lot 3, Block 4
Lot 4, Block 4
Lot 5, Block 4
Lot 6, Block 4
Lot 7, Block 4
Lot 8, Block 4
Lot 9, Block 4
Lot 1 0, Block 4
Lot 11, Block 4
Lot 12, Block 4
Lot 13, Block 4
Lot 14, Block 4
MONROE COUNTY
OFFICIAL RECORDS
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Phase II
Mile Marker
101.5
Island
Key Largo
Property
Tradewinds Hammocks Affordable Housing Site
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