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Item G8 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: June 16,2004 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Report on Tradewinds Hammocks Phase II. Item Background: The Board tabled this item at the May 19, 2004 meeting following staff's report that the principals of Heritage Partners Group XIX, Inc. (the 50% partner in Tradewinds Hammocks II, LLC) are barred from applying for funding from the Florida Housing Finance Corporation due to a variety of financial and non-compliance issues. Staff also advised the Board that the US Department of Housing and Urban Development is apparently investigating Heritage. In light of these events, the project developers are exploring alternatives for proceeding with this development. Advisory Committee Action: On November 24, 2003 the Advisory Committee voted 3/0 to approve a homeownership/land lease scenario, subject to the owner/developer's willingness to reduce the purchase prices to a maximum of $200,000 on a dollar-for-dollar basis if additional funding is available. Previous Governing Board Action: On 2/22/01 the Board denied the $924,000 loan request. On 4/11/01 the Board was sued by the owner/developer. On 8/16/01 the Board approved the $924,000 loan request. On 12/17/03 the Board conceptually approved a conversion to moderate income homeownership, subject to the developer providing certain follow-up documentation. On 2/18/04 the Board approved purchasing the property and conveying same to Housing Authority, provided the Housing Authority wishes to participate in the project. Contract/Agreement Changes: N/A Staff Recommendation: To be determined. Total Cost: $ Budgeted: Yes No Cost to Land Authority: $ Source of Funds: Approved By: Attorney Executive Director Approval: Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #8 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING MODIFICATION OF DEED RESTRICTIONS FOR THE TRADEWINDS HAMMOCKS PHASE II AFFORDABLE HOUSING DEVELOPMENT. 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 an interest in real property for the purpose of providing affordable housing to very low, low, or 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, on August 16, 2001, the Land Authority Governing Board approved Resolution 09-2001, authorizing a $924,000 zero-interest, 50-year mortgage loan in support of the proposed development of 52 units of affordable rental housing known as Tradewinds Hammocks Phase II on Lots 1 through 14, inclusive, Block 4, Industrial Acres (PB 5-15) (hereinafter "subject property"); and WHEREAS, on May 16, 2000, Tradewinds Hammocks II, LLC recorded affordable housing deed restrictions consistent with Resolution 09-2001 (OR 1633-729); and WHEREAS, on November 8, 2002, pursuant to Resolution 09-2001, the Land Authority disbursed the $700,000 first draw of the $924,000 loan secured by a mortgage and promissory note (OR 1832-1507); and WHEREAS, Tradewinds Hammocks II, LLC now wishes to repay the Land Authority loan, replace the deed restrictions recorded at OR 1633-729 with 50-year restrictions that are otherwise in accordance with the revised Monroe County Land Development Regulations, and pursue development of the site as homeownership affordable housing at the higher income levels allowed by said revised restrictions; NOW, THEREFORE, Page 1 of 2 BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY THAT: Upon Tradewinds Hammocks II, LLC's repayment to the Land Authority of $700,000.00 by September 16, 2004, the Land Authority Chairman is authorized to execute the documents necessary to satisfy the mortgage of record and replace the deed restriction recorded at OR 1633-729 with the new restriction shown 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 Form Larry R. Erskine Page 2 of 2 MONROE COUNTY PLANNING DEPARTMENT AFFORDABLE HOUSING DEED RESTRICTION STATE OF FLORIDA COUNTY OF MONROE Notice is hereby given that: I. I/We, Tradewinds Hammocks II. LLC , the undersigned is/are the sole owner(s) of certain real property, situated, lying and being in Monroe County, State of Florida, described as follows: Lot(s): Block 4, Lots 1-14, Subdivision: Industrial Acres Key: Kev Laroo PB: 5-15 (If legal description is metes and bounds, attach a separate sheet) Real Estate Number: 455550.000000 throuoh 455680.000000 II. The residential unit Building Permit Number is 03-3-05556. III. Under the owner-occupied moderate income affordable housing provisions set forth in Chapter 9.5 of Monroe County Land Development Regulations, the owner or owners of the above-described real property have been exempted from payment of "Fair Share Impact Fees" for a (check one): a single-family _, a multi-family units X, a mobile home _ to be constructed on said real property. IV. Pursuant to Monroe County Code Sections 9.5-266(6)g and 9.5-266(6)k, the buyer's annual adjusted gross income for each unit shall not exceed 120% percent of the median adjusted gross annual income within Monroe County (moderate income). V. Pursuant to Monroe County Code Section 9.5-266(6)d, each unit is restricted to a maximum of one thousand three hundred (1,300) square feet of habitable space. VI. Pursuant to Monroe County Code Section 9.5-4(M-6.2), the maximum sales price for each unit shall not exceed four and one-quarter (4.25) times the annual median household income for Monroe County. VII. Pursuant to Monroe County Section 9.5-122.3(6), the owners have used the affordable housing program to gain additional points in the permit allocation system . VIII. These deed restrictions shall remain in effect regardless of the owner(s) or occupant(s) ability to comply or re-qualify on an annual basis or as otherwise may be required. IX. Pursuant to Monroe County Code Section 9.5-266(6)g, at the time of sale each unit may only be sold to a household within the same income class (the moderate income class). X. All of the restrictions herein shall be binding upon any transferees, lessees, heirs, assigns or successors in the chain of title for a period of fifty (50) years. Any modification or release of said restrictions shall not be binding unless evidenced in writing and signed by an authorized representative of the Monroe County Comprehensive Plan Land Authority. I/we certify that I/we am/are familiar with the information herein contained and that it is true and correct to the best of my knowledge and belief; and I/we will abide by the above stated restrictions pursuant to Monroe County Code Chapter 9.5. WITNESSES: OWNER OR OWNERS (Signature) (Signature) (PrintlType Name) (PrintlType Name) Address: (Signature) (PrintlType Name) The foregoing instrument was acknowledged before me this ,2_AD. by personally known to me or has produced identification. day of is/are as My Commission Expires Notary Public (Signature) Notary Public (Print Name)