Item G15 G15
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor Craig Cates,District 1
The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5
Michelle Lincoln,District 2
James K.Scholl,District 3
m' David Rice,District 4
Board of County Commissioners Meeting
September 20, 2023
Agenda Item Number: G15
2023-1401
BULK ITEM: No DEPARTMENT: Land Authority Governing Board
TIME APPROXIMATE: STAFF CONTACT: Christine Hurley
9:25 AM
AGENDA ITEM WORDING: Discussion and direction of F.S. 380.0666 Powers of land authority.
(3)(a)provide affordable housing to families whose income does not exceed 160 percent of the median
family income for the area.
ITEM BACKGROUND:
Section 380.0666(3)(a) allows land authority funding to be utilized for affordable housing as long as
family income does not exceed 160% of area median income.
This works well for rental housing; but, doesn't work well for homeownership. Unincorporated
Monroe, Marathon, and Key West all require an income check at the time of purchase for affordable
housing but then the family that owns the unit's income is not checked again. Typically, when the house
is sold the sales price is controlled by the local governments' codes and/or the family that buys the house
has to income qualify. There are many variations of how this works, depending on the projects and the
point in time when the local governments assisted the developers of the projects.
Over the past year, this statute has been problematic for a Key West sponsored project known as "The
Lofts" project, located on a 3.2-acre site near Truman Annex. The Key West Commission passed
Resolution 22-290 requesting $4,028,250 in Land Authority funding, which they want to use to buy
down the actual cost of 14 condominium units from $635,050 to $347,318 for 2-bedroom units and
from $705,250 to $417,518 for 3-bedroom units for middle income families (earning less than 140% of
area median income, which, for a family of 4 is approximately $136,763). The amount of subsidy is
approximately $287,732 per unit (see attached document for more details). The issue is that the Land
Authority statute requires the family income of purchaser to remain below 160% of area median. If the
purchaser's income exceeds that amount, they are no longer eligible for the unit and could be forced to
sell the unit.
Further, this limitation creates a problem for Habitat for Humanity homeownership projects whereby
Habitat may not be able to resell the mortgages they typically hold on the secondary market to
reimburse their resources for future projects because of this type of restriction. Habitat projects are
2921
different in that they do remain in control of the units in the long term by:
• maintaining right of 1 st refusal which protects long term affordability.
• allow equity sharing around 1.5%per year with the purchasers.
In order to remedy these complications, staff would like direction from the Land Authority Governing
Board to seek a change to the Florida Statute governing Land Authority funding for affordable housing
in the case of using land authority funding toward home ownership.
We are proposing we work with County legislative staff and lobbyists to amend 380.0666 (3)(a) to add
that family income cannot exceed 160% of area median at the time of purchase in the case of
homeownership and that the funding the land authority contributes toward creating affordable housing
be recorded as a lien in order to protect the land authority investment and prohibit the purchaser from
cashing out the immediate equity in the property created when the land authority funding was used to
decrease the cost of land acquisition or construction.
The recommended proposed text follows:
(3)(a) To acquire and dispose of real and personal property or any interest therein when such
acquisition is necessary or appropriate to protect the natural environment,provide public access or
public recreational facilities,preserve wildlife habitat areas,provide affordable housing to families
whose income does not exceed 160 percent of the median family income for the area,prevent or satisfy
private property rights claims resulting from limitations imposed by the designation of an area of
critical state concern, or provide access to management of acquired lands; to acquire interests in land by
means of land exchanges; to contribute tourist impact tax revenues received pursuant to F.S.. 125.0108
to the county in which it is located and its most populous municipality or the housing authority of such
county or municipality, at the request of the county commission or the commission or council of such
municipality, for the construction, redevelopment, or preservation of affordable housing in an area of
critical state concern within such municipality or any other area of the county; to contribute funds to the
Department of Environmental Protection for the purchase of lands by the department; and to enter into
all alternatives to the acquisition of fee interests in land, including, but not limited to, the acquisition of
easements, development rights, life estates, leases, and leaseback arrangements. However, the land
authority shall make an acquisition or contribution only if. ....
a)For affordable housing homeownership units, compliance with the income requirements specified
in 380.0666�)(a) shall be determined at the time of conveyance each time the unit is conveyed, and the
original land authority-funding/contribution shall be memorialized in a recordable pejpetual deed
restriction. I the purchaser receives State or Federal unding and that pro--- �ec�ui�es a p�io�ity lien
position over the land authority deed restriction, the land authority- unding/contribution may be
subordinate to a first purchase money mortgage and the State or Federal fundinjZ lien.
PREVIOUS RELEVANT BOCC ACTION:
N/A
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATION: Direct staff to work with County legislative staff and lobbyists to
amend 380.0666 (3)(a) to add that family income cannot exceed 160% of area median income at the
2922
time of purchase in the case of homeownership and that the funding the land authority contributes
toward creating affordable housing be recorded as a lien in order to protect the land authority
investment and prohibit the purchaser from cashing out the immediate equity in the property created
when the land authority funding was used to decrease the cost of land acquisition or construction.
DOCUMENTATION:
KeyWestBahamaVillage3.2Acresl4MCLAStatuteAndExamplesOfGapFundingNeeded 7-26-23.docx
FINANCIAL IMPACT:
2923
dq
N
0)
N
41
cu
O O
N
_ 3 0
1-o
cu m p O O 00 >
�
a-' L OJ Ln Ln rl "_
m O L- n N ri Ill co j
to n a1 O N r-I cr CU
p N OJ s_ m rl L m
O
N to rH N d E
i O f0 Q 'tJ� 4 'X
L -Q 0 O p
C
u O 00 N O O_
l7 ° '> ti N O m
N Q N O m
Z C L c L On 4—
C: � N cu O
U- c o � E
I}-- ° > Cu ^ O O O 00 E
m
L � .. CL o p Ln Ln rl o
p O .b:,, > L Ln N m co
2 O O -0 L
�— M c 2. H f O N d d� d o
Q N > CU rH rH N m X N
u aA E N th th t!h E
z N L
0 m N
Q N N .� N .0 CUC
J L y X L �+
cu a c O Q 3 o f
O O L a
v c
c a °J 2.10 � a � E
n. � O_ t0 00 N •X
2 N +J — > N n C O u
N +J 61 N
t0 O t/? ,C 0) >_ -C
O N On O 4a C a.
O > C CYJ C C '♦3 i E N
I— N t0 p .„.". cOc N OJ 7 y O
LN N � .b.,.a 3 G N O
>
- ._ �.�., co 4,
� .b..., O O N N fCC0 (n
w (n N• C G Y
U > v O N
O f0
N c L N CYJ " -0 -0 � T L a-.
m j O to N O O ^ '' � cj
N > C an 0 4'
1 � c -1 E E 00 00 lD O1 Q
0 -0 � N o N 00 I- 00 Q o
p O = - E d I- 00 Ln co Li
>- 4 J co vi O +- 00 I- 00 lD cu
O J
cr- p CU CU X O v� m O I- Ill Ill -C
O cu
m o " ^ th th th t�h Q
2 a., I O Z O
2 N N OJ
Q O
L
Zcu
< 4J 0
Q � O O In cn
cn 0 C
E c _ m m
} c, o a E M O �D o _ �D
.. O E O rH Ln I- r-
+J p
z m � +' �p E lD rH m
an
.. ° o0 0 � a o0 0o m m
� -1
11J u o oNo
0 3 c -0 ocr- c N
z0 u 0 - -
E
�' Q Q o 0
n 2.b.0 N O M J
l0 N a o 0
00 On v o > o O O d — d — (.0
00 On a � � 00 rH rH
°+�' o = N 0 vl vl vl Q vl Q vi Q
O evi (D
� .N N -a � N
m > CU
> O_ M O O L p -0
+� J O_ O X -Q aJ J
O H LLI >
L tUD 0, N N
cn (0 Q1 N � O C J +-+
0 C C
w � " Y Q O M r-I rl C rH C
LO
N
0)
N
oo
i .
a C
v w
cu
ep -
cl-
r,
m n v 3UPN
n
m GO'v N
m
a
- � t0
r-
CJr a a
a^+ro
F � N
w
U
a Rl
F cu
N
C- qyU F V7
N
r w
Oy a� Cmi .. V V �f3 P 20 �, r(
O
T 1
. e p
n' m
y u a, "-Vlj (s. lr+�i drr"ii
o
S tic m.�a r cat
d u? Ti
r E m ° r`u o ° v,Qa P 1 � � z C1 ry Y. � ❑
L
L y
�p n
❑r m N O x L
cu d
uC c
cu
oon
(1.
����%//
n f(r fff
1
E LL r r
m p E O O cm
a y
cu
zr
O L -� D � •. II •�
J
Y
CL
b 6 r�.�!9 p .ca L I.(1 N
cs ° o w o n n` r n >
7- -'c� n u rig r -[ �[ -[ rig.�r V7 L(1
Ln Q t.n �
(D
CN
0)
CN
ew
I W"ll
11 1�rA LA
t4 V$ 4A tn uh P., (%
f4 9
6 'n 16 th vl' 1,4 4101 koll 41,14
04.
4 #4 c-4 N e,k
I •
4 "4 vw Olk */W Olt */W
V* 0 Cry4A *A lVt V* 0 AA
4w
�6 way
U'l
00
2 2 4 T $,` Oi' �4*
H C,, �t 4 4 C4 P't C4
ON ow
it
to
4 4
4A �A
AA *A Alt "A *A AAA AAA
Arwy
W14 w 0
on
U,
.0
40
18-
f4 ratsat to
-4
P5