Item F2LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: February 15, 2012 Division: Land Authority
Bulk Item: Yes No X Contact / Phone #: Mark Rosch / 295-5180
Agenda Item Wording: Approval of a subordination agreement to allow the Housing Authority of the
City of Key West to refinance the existing mortgage for Roosevelt Gardens Apartments.
Item Background: Roosevelt Gardens is a 96-unit affordable rental housing development located at
2661 North Roosevelt Boulevard in Key West. The Land Authority purchased the site as undeveloped
land in 1998, imposed affordable housing deed restrictions, and transferred title to the Housing
Authority of the City of Key West (KWHA) in 2000. Also in 2000, the Florida Housing Finance
Corporation (FHFC) provided pre -development funding to KWHA and imposed affordable housing
restrictions of its own via a land use restriction agreement. In 2002 KWHA received an $11,850,000
mortgage loan from First Housing Development Corporation of Florida to finance construction of the
apartments. As a condition of issuing the loan, the lender required both the Land Authority and FHFC
to subordinate their respective restrictions to the lender's mortgage.
KWHA now proposes to refinance with a $9,410,000 mortgage loan amortized over 25 years with a
fixed rate of 4% for 10 years and no servicing fee from First State Bank of the Florida Keys. The new
loan will save KWHA $136,356 per year. As was the case with the prior lender, the new lender is
requiring both the Land Authority and FHFC to subordinate their respective restrictions to the lender's
mortgage. FHFC has agreed to do so. Staff views the risk of default to be lower under the proposed
refinancing than the original loan because the property is now developed and has an established cash
flow and because the new loan amount and associated monthly payments are lower.
Included in the agenda documentation are a memo from KWHA, the proposed subordination
agreement with First State Bank, and the previous (2002) subordination agreement with First Housing.
Advisory Committee Action: On January 25, 2012 the Committee voted 5/0 to approve the proposed
subordination agreement.
Previous Governing Board Action: On August 21, 2002 the Board approved subordinating the Land
Authority's deed restrictions to the $11,850,000 First Housing mortgage.
Contract/Agreement Changes: N/A
Staff Recommendation: Approval
Total Cost: $ N/A Indirect Cost: $ Budgeted: Yes No
Cost to Land Authority: $ N/A Source of Funds:
Approved By: Attorney X County Land Steward
Documentation: Included: X To Follow: Not Required:
Disposition: Agenda Item
Housing Authority of the City o f' Key West, Florida
To: Monroe County Comprehensive Plan Land Authority (MCLA)
From: J. Manuel Castillo, Sr., Executive Director
Pc: MCLA Advisory Committee
D ate : January 5, 2012
Re: Roosevelt Gardens Housing Complex
EXECUTIVE SUMMARY
Agenda Item:
Consideration of an agreement to subordinate deed restrictions to a new mortgage to be given to
First State Bank of the Florida Keys in order to refinance the existing mortgage.
Background:
On January 12, 2000, The Housing Authority of The City of Key West took title to said real
property from Land Authority by virtue of a Warranty Deed. The deed restrictions contained in
the warranty deed are subordinated to the existing mortgage held by First Housing Development
Corporation of Florida per a Subordination Agreement dated December 18, 2002.
Action Statement:
The Housing Authority has secured funding that will assist in sustaining the property's
affordability through permanent long term financing. This lender, as did the previous lender,
requires the subordination of the deed restrictions.
The Housing Authority considered two options:
1. Extension of the existing bond (Short Term — 3yrs fixed rate with Servicing Fee)
2. Private placement of new bond (Long Term — 10 yrs fixed rate no Servicing Fee)
The Housing Authority has determined that Option 2 is the better option. Details are as indicated
below.
Refunding issue:
Issuer: Housing Authority of the City of Key West, Florida
Legal Authority: Chapter 421, F.S.
Bond Issue Name: Multifamily Housing Revenue Refunding Bonds & Roosevelt Gardens
Amount Issued: $9,410,000
Pagel of 2
Type of Issue: Revenue
Revenue pledged: Net revenue of funded project
Purpose of Issue: Refund outstanding revenue notes
Type of Sale: Negotiated Private Placement — not rated
Sole Purchaser: First State Bank of the Florida Keys
Professionals: Bond Counsel, Bryant, Miller, Olive, P.A.
Financial Adviser — none
Paying Agent — none
Registrar — none
Underwriter — none
No management fee
No private placement fee
Financial Impact:
Existin Proposed Savings
Monthly mortgage payment $58,294 $48,859 $ 9,435
Monthly servicing fee $ L928 $ 1,928
Monthly savings $ 11,3 63
Annual Savintis $136,356
Page 2 of 2
SUBORDINATION AGREEMENT
THIS AGREEMENT made this day of , 2012, between THE
MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, a land authority under
Section 3 80.0663 (1), Florida Statutes, hereinafter referred to as "Land Authority", and FIRST
STATE BANK OF THE FLORIDA KEYS, herein referred to as "Lender".
THE PARTIES STIPULATE AND RECITE THAT:
A. On January 12, 2000, THE HOUSING AUTHORITY OF THE CITY OF KEY WEST,
hereinafter referred to as "owner", took title to certain real property from Land Authority by virtue of
a warranty Deed recorded in official Records Book 1613, Page 1806, of the Public Records of
Monroe County, Florida.
B. owner has executed, or is about to execute, a mortgage and promissory note (or Bond)
("Mortgage") in the amount of Nine Million Four Hundred Ten Thousand Dollars ($9,4 10,000 - 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 ("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 inferior to and subordinate to
the lien or the claim of Lender under the Mortgage executed by owner, dated and
recorded in O.R. Book Page of the Public Records of
Monroe County, Florida. The subordination of the Restrictions to the lien of the Mortgage shall have
the same force and effect as if the Mortgage had been executed, delivered and recorded prior to the
execution, delivery and recording of the Restrictions.
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.
WITNESSES
Sign & Print Name
Sign & Print Name
Sign & Print Name
Sign & Print Name
STATE OF FLORIDA
COUNTY OF MONROE
THE MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
41VA
Kim Wigington, Chairman
THE HOUSING AUTHORITY OF THE CITY
OF KEY WEST
Frank Toppino, Chairman
I HEREBY CERTIFY that on this day of February, 2012, before me, an officer duly qualified
to take acknowledgments, personally appeared Kim Wigington, to me known to be the person
described in and who executed the foregoing instrument and acknowledged before me that he
executed the same. Personally known to me } or produced as
identification.
Notary Public Signature
My commission expires:
Notary Seal
STATE OF FLORIDA
COUNTY OF MONROE
I HEREBY CERTIFY that on this day of February, 2012, before me, an officer duly qualified
to take acknowledgments, personally appeared Frank Toppino, to me known to be the person
described in and who executed the foregoing instrument and acknowledged before me that he/she
executed the same. Personally known to me } or produced as
identification.
Notary Public Signature
My commission expires:
Notary Seal
EXHIBIT A
TO SUBORDINATION AGREEMENT
"SUBJECT PROPERTY"
A parcel of land located on the Northerly side of the Island of Ivey west, Monroe County,
Florida, and being more particularly described as follows:
Commencing at the Intersection of the Southwesterly property line of the City of Ivey west
Swimming Pool and the Northwesterly Right -of -Way line of North Roosevelt Boulevard (U.S.
Highway No. 1), said point also being the Southeasterly corner of "HILTON HAVEN",
according to the plat thereof, as recorded in Plat Book 2, at Page 108, of the Public Records of
Monroe County, Florida; thence North 47 degrees 46 minutes 01 second East along the said
Northwesterly Right -of -Way line of said North Roosevelt Boulevard for 781.03 feet to the Point
of Beginning; thence North 87 degrees 13 minutes 59 seconds west, a distance of 84.85 feet; .
thence North 42 degrees 13 minutes 59 seconds west, a distance of 288.83 feet; thence North 05
degrees 21 minutes 11 seconds 'Nest, a distance of 179.54 feet; thence North 55 degrees 34
minutes 16 seconds East, a distance of 514.75 feet to the Mean High Water Line of the Bay of
Florida as located by Task Engineers, Inc., on September 7, 1985; thence meander the Mean
High water Line for the following eleven (11) metes and bounds; thence South 45 degrees 48
minutes 35 seconds East, a distance of 18.69 feet; thence South 45 degrees 51 minutes 37
seconds East, a distance of 42.14 feet; thence South 48 degrees 57 minutes 20 seconds East, a
distance of 67.76 feet; thence South 36 degrees 34 minutes 13 seconds East, a distance of 42.38
feet; thence South 47 degrees 17 minutes 59 seconds East, a distance of 40.59 feet; thence South
57 degrees 35 minutes 54 seconds East, a distance of 25.95 feet; thence South 50 degrees 36
minutes 59 seconds East, a distance of 46.76 feet; thence South 41 degrees 04 minutes 04
seconds East, a distance of 78.88 feet; thence South 41 degrees 29 minutes 45 seconds East, a
distance of 43.06 feet; thence South 42 degrees 37 minutes 34 seconds East, a distance of 33.76
feet; thence South 06 degrees 34 minutes 11 seconds East, a distance of 4.53 feet to the said
North westerly Right-of-way line of North Roosevelt Boulevard; thence run along the said
Northwesterly Right-of-way line of North Roosevelt Boulevard for the following Seven (7)
metes and bounds; thence South 54 degrees 34 minutes 25 seconds west, a distance of 81.91
feet; thence South 35 degrees 25 minutes 35 seconds East, a distance of 13.00 feet; thence South
52 degrees 01 minute 44 seconds west, a distance of 90.09 feet; thence South 50 degrees 29
minutes 42 seconds west, a distance of 215.11 feet; thence South 37 degrees 28 minutes 46
seconds East, a distance of 2.00 feet to a point on a curve to the left, having a radius of 2021.85
feet, a central angle of 04 degrees 45 minutes 13 seconds, a chord bearing of South 50 degrees 08
minutes 37 seconds west and a chord length of 167.69 feet; thence along the are of said curve,
an arc length of 167.74 feet to the point of tangency of said curve; thence South 47 degrees 46
minutes 01 second west a distance of 22.74 feet to the Point of Beginning.
Together with the Easement created in Official Records Book 1531, Page 1607, of the Public
Records of Monroe County, Florida.
MONROE COUNTYFILK # 1 3 4 1 2
OFFICIAL RECORDS B# 1 8 4 4 P# 5 1
SUBORDINATION AGREEMENT
RD Dec 24 200209:20AM
THIS AGREEMENT made this day of December, 2002, between THE T H ROE
COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, land authority under Section
3 0.0663 1 , Florida Statutes, hereinafter referred to as "Land Authority". and FIRST HOUSING
DEVELOPMENT CORPORATION OF FLORIDA,, herein referred to as "Lenders'.
THE PARTIES STIPULATE AND RECITE THAT:
A. On January 12, 2000, THE HOUSING AUTHORITY OF THE CITY OF KEY WEST,
hereinafter referred to as "Owner". took title to certain real property from Laird Authority by vine
of a Warranty Deed recorded in Official Records Book 1613, Page 1806, 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 rote in the mnount of
Eleven Million Eight Hundred Fifty Thousand Dollars $ l l , o,000.00 in favor of Leader, 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, peftaining
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 and recorded
in O.R. Book Page of the Public Records of Monroe
County, Florida.
Land Authori 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,
Mate of Florida, the day and year first above written.
FILE # 1 3 4 1 2
B#1 E3 4 4 P
WITNESSES
Sign & Print Nam 'Rapt • 0 if 00"Aw -
Sign & Pant Marne 1R, L>�
STATE OF FLORIDA
COUNTY F MONROE
THE MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
CBY. -
MURRAY E. NE06N.CHAIRMAN
FIRST HOUSING L PME T
CORPORATION OF FLORIDA
Y,
Its.
I HEREBY CERTIFY that on this day of December, 2002, before me, an officer duly qualified
o take acknowledgments, personally appeared Murray E. Nelson, to one known to be the person
described In and who executed the foregoing in trunent and acknowledged before nee that he
executed the same. Personally known to me or pro aced A I a
identification.
N Pnb ' e
My commission expires:
Notary Seal
z m
Notary r P bpi -state of Fk)6d
t . �n 20; M5
My �'T�.-I�S.�+1Dfti �6
*'C 0 M rn i 5 5 io n 4 DD035554
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FILE 1_ 341 295
K # 1 E3 4 4 P G # 5 "
STATE OF FLORIDA
COUNTY Y OF MONRO
I HEREBY CERTIFY that on this day o errs r, 2 02, be YX - nee, officer duly qualified
_2T
to take acknowledgments, personally appeare to known to the
arson described i and who executed the foreinstrument and ac wleded before a that
he/she executed the san e. Personally known t me or produced
—as identification.
Public Sia
y co m i sion expires:axoov.A'a �
Notary Seal
Linda KaY Arnold
dkkp
t COmrni"iOn # Co 9M6
Expires d . 22, 2004
Bonded Thru
took%*' Atlantic BondiCo.,Inc.
This instrument prepared by:
MEYERKam, P.A.
1211 Avenue
Big Pine Key, FL 33043
96
FILE #- JL 2-
BK#JL 8 4 4 PG# 5
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EXHIBIT "A" _- - -
A parcel of land located on the Northerly side of the Island of Key Invest, Monroe
county, Florida, and being more particularly described as follows:
C 11,IlMENCING at the intersection of the Southwesterly property lure of the city
f Key West Swimming Pool and the Northwesterly Right -of -Way Line of North
Roosevelt sevelt Boulevard U.S. Highway No. 1), said point also being the
Southeasterly corner of "HILTON HAVEN", according to the plat thereof, as
recorded in Plat Book 2, at page 108, of the Public Records of Monroe county,
Florida; thence N 4 °4 '31 " E., along the said N orthwesterly Fight- f-Way Line of
said North Roosevelt Boulevard for 781.03 feet to the Point of Beginning; thence
°13' " W., a distance of 84.85 feet; thence N 4 013' 9" W., a distance of
33.33 feet; thence N o ° 1 }11" W., a distance of 179.54 feet; thence H
034'1 „ E., a distance f 514.75 feet to the Mean High Water Line of the Bay of
Florida as located by Task Engineers, Inc., on September 7, 1 3 ; thence
meander the said Mean High Water Lure for the following Eleven 11 metes and
bounds; thence S 4 °43}3b"E., a distance of 18.69 feet; thence s 4501'3 "E., a
distance of 4.14 feet; thence S 430'" E., a distance of .6 feet, theme S
36034'13" E., a distance of 42.38 feet, thence S 4 01 '5 " E., a distance of 40.59
feet; thence S °35' 4" E., a distance of 25.95 feet; thence S °36' " E., a
distance of 46.76 feet; thence S 41'004'04„ E., a distance of 78.88 feet; thence S
41 °2 '4 " E., a distance of 43.06 feet; thence S 42"3 '34" E., a distance of 33.76
feet; thence S 0 034' 1" E., a distance of 4.53 feet to the said North Westerly
Right -of -Way Line of North Roosevelt Boulevard, theme run along the said
Northwesterly Right -of -Way Line of North Roosevelt Boulevard for the following
Seven metes and bounds; thence S 4134'2 " W., a distance of 31.91 feet;
thence s 35,1'35" E., a distance of 13.00 feet; thence B 20 1,44„ Irv., a
distance of 90.09 feet; theme s 500g'4 " W., a distance of 215.11 feet; thence
s 30'4" E., a distance of 2.00 feet to a point on a curve to the left, having a
radius of 2021.85 feet, a central angle of 0414 '13", a chord bearing of s
0003'3 "Ile., and a chord length of 167.69 feet; thence along the arc of said
curve, an arc length of 167.74 feet to the point of tangency of said curve; thence
s 4 04 ' 1" W., a distance of 22.74 feet to the Point of Beginning.
MONROE COUNTY
OFFICIAL RECORDS