Item G11 G.11
Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS
�� Mayor David Rice,District 4
The Florida Keys � Mayor Pro Tem Craig Cates,District I
y Michelle Coldiron,District 2
James K.Scholl,District 3
Ij Holly Merrill Raschein,District 5
County Commission Meeting
June 15, 2022
Agenda Item Number: G.11
Agenda Item Summary #10679
BULK ITEM: No DEPARTMENT: Land Authority Governing Board
TIME APPROXIMATE: STAFF CONTACT: Christine Hurley (305) 295-5180
9:25 A.M. Land Authority
AGENDA ITEM WORDING: Approval of a resolution committing an additional $571,330 in
construction funding to the Monroe County Housing Authority for the Lower Keys Scattered Sites
affordable housing development.
ITEM BACKGROUND: The Land Authority is partnering with the Monroe County Housing
Authority and the Florida Housing Finance Corporation to build 12 units of affordable rental
housing by re-developing 12 ROGO-exempt lots on Big Pine Key and Little Torch Key known
as the Lower Keys Scattered Sites project. On July 18, 2019, the Land Authority entered into an
Option Agreement to sell the project sites to the Housing Authority for the price of $1,353,989.
Once Florida Housing completes its underwriting review and releases the CDBG-DR grant
funds, the Housing Authority will use the grant funds to buy the project sites from the Land
Authority.
The lowest responsible construction bid received by the Housing Authority for building this
project exceeded the project development budget provided by the grant, creating a shortfall of
$782,659. To cover this shortfall, on August 18, 2021 the Land Authority committed $782,659
of its sale proceeds as construction funding via Resolution 02-2021.
The Housing Authority now reports that, due to rising construction costs, the low bidder has
received construction cost escalations in the amount of $701,710. The Housing Authority
requests that the Land Authority commit the remaining $571,330 of its sale proceeds as
construction funding to partially cover this increase. The Housing Authority will cover the rest
of the cost increase by drawing upon the Contingency funds or forgoing some or all of the
Developer's Fee included in the Florida Housing grant funds.
PREVIOUS RELEVANT GOVERNING BOARD ACTION:
7/17/19 Approval of Option Agreement to sell the project sites to the Housing Authority
8/18/21 Approval of First Amendment to Option Agreement extending option period to 3/31/22
8/18/21 Approval of Resolution 02-2021 committing $782,659 in construction funding
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G.11
3/16/22 Approval of Second Amendment to Option Agreement extending option period to 3/31/23
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Proposed Resolution
MCHA Request Letter
Aerial Photographs
MCLA Resolution 02-2021
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Mark Rosch Completed 05/31/2022 2:32 PM
Christine Hurley Completed 05/31/2022 2:39 PM
Lindsey Ballard Completed 05/31/2022 3:05 PM
Board of County Commissioners Pending 06/15/2022 9:00 AM
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G.11.a
RESOLUTION NO.
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY COMMITTING AN
ADDITIONAL $571,330 IN CONSTRUCTION FUNDING TO THE
MONROE COUNTY HOUSING AUTHORITY FOR THE LOWER 0
KEYS SCATTERED SITES AFFORDABLE HOUSING
DEVELOPMENT.
0
WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Land
Authority") is partnering with the Monroe County Housing Authority (hereinafter "Housing
Authority") and the Florida Housing Finance Corporation (hereinafter "FHFC") to build 12 units U
of affordable rental housing by re-developing 12 ROGO-exempt lots on Big Pine Key and Little 0
Torch Key known as the Lower Keys Scattered Sites (hereinafter "Subject Project"); and
WHEREAS, the Housing Authority is the project applicant and developer in an application to
FHFC for Community Development Block Grant Disaster Recovery funding for land acquisition
and construction for the Subject Project; and 2
WHEREAS, the Housing Authority has entered into an Option Agreement to buy the 12 lots on
which the Subject Project will be built from the Land Authority with FHFC funding at a price of 0
$1,353,989; and
WHEREAS, the cost to build the Subject Project was initially estimated to exceed the funding
available from FHFC by $782,659; and E
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WHEREAS, the Housing Authority requested that the Land Authority allow the Housing a
Authority to use $782,659 of the sale proceeds to cover said shortfall; and
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WHEREAS, on August 18, 2021 the Land Authority Governing Board approved Resolution 02-
2021 approving said request; and
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WHEREAS, due to construction cost escalations received by the low bidder for the project in the
amount of $701,710, the Housing Authority is now requesting that the Land Authority commit
the remaining $571,330 of the sale proceeds to partially cover said cost escalations; NOW,
THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND
AUTHORITY: U)
Section 1. The Land Authority hereby commits an additional $571,330 in construction funding
for the Subject Project as a grant to the Housing Authority. 0
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Section 2. The Land Authority Chairman and Executive Director are hereby authorized to
execute documents in support of the Housing Authority's grant application as may be required
by FHFC attesting to said funding commitment by the Land Authority.
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Section 3. The Land Authority Executive Director is authorized to disburse said funds to the
Housing Authority subsequent to the Housing Authority's purchase of the Subject Project's 12
lots and in accordance with the disbursement procedures required by FHFC.
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G.11.a
Section 4. Said funds are to be used toward development of the Subject Project. Any portion of
said funds not used toward development of the Subject Project shall be refunded to the Land
Authority.
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PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a 0
meeting on this day of June 2022.
Commissioner Craig Cates
Commissioner Michelle Coldiron
Commissioner Holly Raschein
Commissioner James Scholl
Chairman David Rice U
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(Seal)
ATTEST: MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
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Christine Hurley David P. Rice
Executive Director Chairman
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Approved as to form and legality:
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Gregory S. Oropeza, Esq.
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G.11.b
VI
MONROE COUNTY
HOUSING AUTHORITY
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1400 Kennedy Drive— Key West, FL 33040• Phone 305-296-5621 •TTY/Florida Relay Service(FRS): 800-955-8771 0
Board of Commissioners Executive Director
Aaron Castillo Randy Sterling
Carey Goodman
Patrick Labrada
Ailton Lopez
Richard Toppino
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The Monroe County Comprehensive Plan Land Authority
1200 Truman Avenue o
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Suite 207 S
Key West FL 33040
RE: Lower Keys Scattered Sites g
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Dear Mayor and Commissioners,
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The Monroe County Housing Authority (MCHA), in collaboration with the Monroe County Board of
County Commissioners (BOCC) and the Monroe County Land Authority(MCLA), is working on a
project to construct twelve (12) single-family affordable deed-restricted rental homes in Big Pine E
Key and Little Torch Key. 0
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On June 10, 2021, MCHA received a low bid of$3,125,695, from a responsive and responsible
bidder, for the construction of the twelve (12) homes.The estimated total development cost of this U)
project is$5,479,250, which initially left a shortfall of$782,659. On August 18, 2021, the MCLA
approved resolution 02-2021, authorizing $782,659 from the CDBG-DR land acquisition funds to be -
returned to the MCHA in the form of a grant. Due to the rising costs of construction that are being 76
felt across the country and the world, our low bidder has indicted that she has received cost
escalations from her primary sub-contractor(modular manufacturer) in the amount of$701,710.
There are $1,353,989 in land acquisition costs that will be funded to the MCLA included in the total
development cost of this project. If the MCLA commits the balance of$571,330 in land acquisitions
funds back to the project, we are confident that the project can be completed.
1 respectfully ask that the MCLA consider committing the balance of CDBG-DR acquisition grant
funds to assist the MCHA with propelling this critical affordable housing project forward. If you have
any questions or need additional information, please contact me on my cell phone at 305-797-6824. U
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Rndy Sterli -.,. r '
Executive Director
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G.11.d
RESOLUTION NO. 02-2021
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY COMMITTING
$782,659 IN CONSTRUCTION FUNDING TO THE MONROE 0
COUNTY HOUSING AUTHORITY FOR THE LOWER KEYS
SCATTERED SITES AFFORDABLE HOUSING DEVELOPMENT.
0
WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Land
Authority") is partnering with the Monroe County Housing Authority (hereinafter "Housing
Authority") and the Florida Housing Finance Corporation (hereinafter "FHFC") to build 12 units U
of affordable rental housing by re-developing 12 ROGO-exempt lots on Big Pine Key and Little 2
Torch Key known as the Lower Keys Scattered Sites (hereinafter"Subject Project"); and
WHEREAS, the Housing Authority is the project applicant and developer in an application to
FHFC for Community Development Block Grant Disaster Recovery funding for land acquisition
and construction for the Subject Project; and
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WHEREAS, the Housing Authority has entered into an Option Agreement to buy the 12 lots on
which the Subject Project will be built from the Land Authority with FHFC funding at a price of a
$1,353,989; and
WHEREAS, the cost to build the Subject Project will exceed the funding available from FHFC by
an estimated $782,659; and
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WHEREAS, the Housing Authority requests that the Land Authority allow the Housing Authority a
to use $782,659 of the sale proceeds to cover said shortfall; and
0
WHEREAS, the Land Authority Advisory Committee considered this resolution at a meeting held
on July 28, 2021 and voted 5/0 to recommend approval; NOW, THEREFORE,
4-
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BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND
AUTHORITY: 0
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Section 1. The Land Authority hereby commits $782,659 in construction funding for the Subject
Project as a grant to the Housing Authority. N
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Section 2. The Land Authority Chairman and Executive Director are hereby authorized to N
execute documents in support of the Housing Authority's grant application as may be required
by FHFC attesting to said funding commitment by the Land Authority.
0
Section 3. The Land Authority Executive Director is authorized to disburse said funds to the
Housing Authority subsequent to the Housing Authority's purchase of the Subject Project's 12
lots and in accordance with the disbursement procedures required by FHFC.
U
Section 4. Said funds are to be used toward development of the Subject Project. Any portion of
said funds not used toward development of the Subject Project shall be refunded to the Land
Authority.
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G.11.d
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
meeting orbthis lth day of August 2021.
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Commissioner Craig Cates Yes 0
Mayor Michelle Coldiron Yes
f Commissioner Mike Forster Absent
Commissioner Eddie Martinez Yes
- � ... Chairman David Rice Yes
{Seal} U
ATTEST: MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
` f—titz Sr1►1_ �
Charles G. Pattison David P. Rice
Executive Director Chairman
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Approved as to form and legality:
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Gregory S. Oropeza, Esq.
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