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Item G7 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: June 16, 2004 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a resolution authorizing the purchase and conveyance of 406 Julia Street for affordable housing in partnership with the Bahama Conch Community Land Trust. Item Background: This item is proposed to assist the Bahama Conch Community Land Trust (BCCL T) in providing affordable housing for the long term in the form of homeownership. The City of Key West has nominated this 3,535 sq. ft. property for purchase by the Land Authority in partnership with BCCL T. The property is developed with a 1,127 sq. ft. conch house in the Bahama Village neighborhood of Key West. Once the property has been purchased, the Land Authority will impose permanent deed restrictions and convey the property to BCCL T. BCCL T will then retain title to the land and convey title to the structure to the current, income-qualified tenant, subject to a long-term ground lease. The Land Authority's purchase contract will be contingent upon simultaneous conveyance of the property to BCCL T. The attached spreadsheet lists the legal description, purchase price, and estimated closing costs. Funding for this purchase will come from the tourist impact tax collected in Key West. Advisory Committee Action: On May 26, 2004 the Advisory Committee voted 3/0 to approve this acquisition. Previous Governing Board Action: The Board has approved the purchase of four other affordable housing acquisitions in partnership with BCCL T. Contract/Agreement Changes: N/A Staff Recommendation: Approval Total Cost: $ 227,335.00 Budgeted: Yes X No Cost to Land Authority: $ 227,335.00 Source of Funds: Land Authority (Tourist Impact Tax collected in Key West) Approved By: Attorney ~ Executive Director Approval: County Land Steward N/A . ^^\ . ~~ Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #7 Property 406 Julia Street RE#00027370-000000 (Dorothy Milian, Inc.) Purchase Price $225,00000 PURCHASE CONTRACTS 06/16/04 Envr. Audit, Survey or Clean-up $500.00 Title Insurance $1.325.00 Attorney Fee $500.00 Recording Fee $10.00 Acquisition Total $227,335.00 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE PURCHASE AND CONVEYANCE OF REAL PROPERTY LOCATED AT 406 JULIA STREET IN KEY WEST FOR AFFORDABLE HOUSING IN PARTNERSHIP WITH THE BAHAMA CONCH COMMUNITY LAND TRUST. 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 Bahama Conch Community Land Trust of Key West, Inc. (hereinafter BCCL 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 Bahama Village neighborhood and the Key West area; and WHEREAS, Key West City Commission Resolution #03-375 nominates the property located at 406 Julia Street in Key West (hereinafter "subject property") for purchase by the Land Authority as an affordable housing site in partnership with BCCL T; and WHEREAS, BCCL T requests that the Land Authority convey the subject property to BCCL T and allow BCCL T to manage the property as affordable homeownership housing via a long-term ground lease; and WHEREAS, the Land Authority Advisory Committee considered this item at a meeting held on May 26, 2004 and voted 3/0 to recommend approval of said purchase and conveyance; 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: Section 1. The Chairman of the Land Authority Governing Board is hereby authorized to execute a contract to purchase the property at 406 Julia Street in Key West, said property having the parcel identification number of RE #00027370-000000 (hereinafter "subject property"), at a purchase price of $225,000.00. Page 1 of 2 Section 2. At closing, the Chairman of the Land Authority Governing Board is hereby authorized to sign a deed conveying the subject property to the Bahama Conch Community Land Trust of Key West, Inc. Said deed shall restrict future use of the property to the requirements specified in Attachment A. 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 AFFORDABILlTY COVENANTS 1. Affordability Period. These affordability requirements shall run with the property and shall not expire. 2. Income Limits, Use and Transfer Restrictions. Bahama Conch Community Land Trust of Key West, Inc. (hereinafter "BCCL T") shall make the property available as either ownership housing or rental housing in accordance with the conditions specified below. 2.1. Ownership Housing. BCCL 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 BCCL 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 100% 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 ~20.0004, 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. BCCL 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 BCCL 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, 100% 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. BCCL T is a not-for-profit corporation. BCCL T is prohibited from earning profit on the subject property. 4. Refinancing Limits. BCCL 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. BCCL T will be responsible for ensuring these affordability requirements are maintained. Whenever the leasehold estate is transferred BCCL T shall provide certification to the MCLA documenting these affordability requirements have been met. Page 2 of 2 I-r'ilr~ . D. -, (" f:F I CC !E'c' fC.ti(!I,F tiC, flf", '.' .'OC' " IJ ~ : C1CiFT1 F' <'1 RF.r.OLUTION NO. 03-375 A HESOLUTION OF THE CITY COMMISSION OF THE CITY OF KEY WEST I FLORIDA, NOMINATING THE PROPERTY LOCATED AT 406 JULIA STRSET (LAND ONLY) FOR PURCHASE BY THE MONROE COUNTY LAND AUTHORITY ON BEHALF OF THE BAHAMA CQNCR COMMUNITY LAND TRU~T (BCCLT): PROVIDING FOR AN EFFECTIVE DATE BE IT RESOLV~ BY THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, AS FOLLOWS: Section 1: That the property lacated at 406 Julia Street (land only) ;R hereby nominated to the Monroe Councy Land Authority 0.3 an c.ffordablG hou13inO rmrc;hase for BCCLT. St::cLiOl1 '" L. : Tha.t this Resolnt i or; ~hall go intc effect immed~ately upon its PQobdge and adoption and ~uthentic~~inn by the signat~re of the presid~ng oft1cer anti Ll~ Clerk cf the Commission. Passed and adopted by the City commission at Q meeting held this 5 day of November , 200j. 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