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Item G5LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date:Division: October 18, 2006 Land Authority Bulk Item:Staff Contact Person: Yes No X Mark Rosch __________________________________________________________________________________ Agenda Item Wording: Approval of a resolution authorizing the conveyance of 209, 211, 213, and 222 Petronia Street in Key West to the Bahama Conch Community Land Trust, Inc. for affordable housing. __________________________________________________________________________________ Item Background: The proposed resolution imposes affordable housing deed restrictions and authorizes the Land Authority to convey the properties to the BCCLT. In accordance with the Legislature’s recent amendment to the Land Authority statute (s. 380.0666(3), FS), the proposed deed restrictions allow the housing to be occupied by families earning up to 160% of county median income. The preceding agenda item has additional information regarding the plans for this site. __________________________________________________________________________________ Advisory Committee Action: On October 2, 2006 the Committee voted 3/0 with one abstention to approve the proposed resolution. __________________________________________________________________________________ Previous Governing Board Action: On June 21, 2006 the Board approved adding the site to the Acquisition List. __________________________________________________________________________________ Contract/Agreement Changes: N/A __________________________________________________________________________________ Staff Recommendation: Approval __________________________________________________________________________________ Total Cost:Budgeted: $ 535.50 Yes X No. Cost to Land Authority:Source of Funds: $ 535.50 Land Authority (Tourist Impact Tax collected in Key West) Approved By: Attorney X County Land Steward . Documentation: Included: X To Follow: Not Required: . Disposition: Agenda Item ____ LAND AUTHORITY CONVEYANCE COSTS 10/18/06 PurchaseEnvr. Audit, SurveyTitleAttorneyRecordingTotal PropertyPriceor Clean-upInsuranceFeeFeeCosts Key Wes t 209, 211, 213 and 222 $0.00$0.00$0.00$500.00$35.50$535.50 Petronia St. RESOLUTION NO. ________ A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE CONVEYANCE OF REAL PROPERTY LOCATED AT 209, 211, 213, AND 222 PETRONIA STREET IN KEY WEST TO THE BAHAMA CONCH COMMUNITY LAND TRUST, INC. FOR AFFORDABLE HOUSING. ______________________________________________ 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; and WHEREAS, the Land Authority has entered into a contract to purchase real property located at 209, 211, 213, and 222 Petronia Street in Key West (RE #00013680-000000 and 00014420- 000000) described in Exhibit A; and WHEREAS, the Key West City Commission Resolution 06-185 nominates the subject properties for purchase by the Land Authority as an affordable housing purchase for Bahama Conch Community Land Trust, Inc.; WHEREAS, the Land Authority Advisory Committee considered this resolution at a meeting held on October 2, 2006 and voted 3/0 with one member abstaining to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: The Chairman of the Land Authority Governing Board is hereby authorized to sign a deed conveying title to the properties identified in Exhibit A to the Bahama Conch Community Land Trust, Inc. Said deed shall restrict future use of the property as specified in Exhibit B. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this ______ day of _______________________ 2006. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY ________________________ ________________________ Mark J. Rosch Charles “Sonny” McCoy Executive Director Vice Chairman Approved for Legal Sufficiency ________________________ Larry R. Erskine EXHIBIT B AFFORDABILITY COVENANTS 1. Affordability Period. These affordability requirements shall run with the property in favor of the Monroe County Comprehensive Plan Land Authority (hereinafter “MCLA”) and shall not expire. 2. Income Limits, Use and Transfer Restrictions. Bahama Conch Community Land Trust of Key West, Inc. (hereinafter “BCCLT”) shall make the property available as either ownership housing or rental housing in accordance with the conditions specified below. 2.1. Ownership Housing. BCCLT shall retain title to the land under ownership housing and shall not subsequently transfer title to the land without prior written approval of MCLA). Ownership of the improvements, together with a leasehold interest in the land, may be conveyed by BCCLT 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 160% 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 §420.0004, 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. BCCLT shall retain title to the land and improvements and shall not subsequently transfer title to same without the prior written approval of MCLA. 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, 160% of the Monroe County median income adjusted for household size at the time of initial occupancy (hereinafter “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. BCCLT is a not-for-profit corporation. BCCLT is prohibited from earning profit on the subject property. 4. Refinancing Limits. BCCLT 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. BCCLT will be responsible for ensuring these affordability requirements are maintained. Whenever the leasehold estate is transferred BCCLT shall provide certification to the MCLA documenting these affordability requirements have been met. Covenants Acknowledged and Accepted by Bahama Conch Community Land Trust, Inc. By: _________________________________ Date: _________________