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County Administrator's Report 9. 4.
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| BCC Regular Meeting |
Discussion |
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| RECOMMENDATION: |
Recommendation Concerning Local Government Verification of Contribution Loan Form for RFA 2019-113 Housing Credit Financing for Affordable Housing Developments Located in Medium and Small Counties - Clara Long, Interim Neighborhood & Human Services Department Director
That the Board approve, and authorize the County Administrator to sign, the Local Government Verification of Contribution Loan Form in support of the Local Government Area of Opportunity for RFA 2019-113 Housing Credit Financing for Affordable Housing Developments Located in Medium and Small Counties for Leah Gardens, in the amount of $354,000.
[Funding: Escambia County Housing Finance Authority] |
| BACKGROUND: |
In May 2017, the Board authorized an application process for developers seeking a minimum local government contribution in order to apply for housing tax credits through the Florida Housing Finance Corporation (FHFC) competitive tax credits cycle. Once again this year, FHFC is not requiring developers to secure a local government contribution as a mandatory component of the application for the 9% Housing Tax Credit applications under RFA 2019-113 Housing Credit Financing for Affordable Housing Developments Located in Medium and Small Counties.
FHFC released the draft request for applications (RFA) on August 20, 2019 for RFA 2019-113. Applications are due November 5, 2019. FHFC has set several special funding goals for this RFA, which would give developments a priority for funding if they meet one of the goals. The statewide goals this year include four developments that qualify for the Local Government Area of Opportunity, two family developments that qualify in a geographic area of opportunity or small area difficult to develop areas, and one development that is part of a local revitalization initiative. The Local Government Area of Opportunity requires a local government to support one development and commit to providing minimum funding amounts based on the building type. New construction funding commitments start at $354,000. This year the County does not have grant funding to support a Local Government Area of Opportunity funding preference “boost” for the 9% Housing Tax Credits. Funding support generally comes from the State Housing Initiatives Partnership (SHIP) Program program. This year's total SHIP funding allocation is only $536,782. By statute, the County cannot expend more than 25% of the SHIP funding towards rental development. The $354,000 minimum required by FHFC for this funding preference exceeds the amount of SHIP funding the County has available.
The Escambia County Housing Finance Authority (Authority) has advised that it received an unsolicited proposal for development from an affiliate of the Vestcor Companies, Inc. (Vestcor) for a ten acre parcel of property that it owns at 625 E. Olive Road in District 3. The Authority published notice of receipt of the unsolicited proposal and provided an extended opportunity for other developers to submit competing proposals. The Authority did not receive other proposals. The proposal contemplates six two-story wood frame buildings with 120 units (Exhibit IV). The proposal is for a mixed income family development containing one, two, and three bedroom units. Tenants will be targeted for the following income ranges and rents:
| Income Levels |
Unit #s |
Rent Ranges |
| At or Below 30% Area Median Income (AMI) |
18 Units |
$389-540 |
| At or Below 60% AMI |
24 Units |
$779-1080 |
| At or Below 70% AMI |
54 Units |
$909-1260 |
| Market Rate |
24 Units |
$1100-1475 |
FHFC is requiring all applicants to commit to setting aside unit affordability for 50 years. Amenities will include a pool, clubhouse, computer lab, fitness center, and outdoor grills. FHFC mandates three of the following resident programs be provided at no cost for family developments for 50 years: after school programs for children, adult literacy, employment assistance, family support coordinators, financial management, and homeownership opportunity program.
Vestcor submitted a pre-application (Exhibit I) for this development to the Planning Development Review Committee on June 26, 2019. They reduced the number of proposed units from 140 to 120 units after this meeting. Vestcor has also made community outreach by sending a mailer to property owners within 2500 feet of the property (Exhibit II), posting signage at the property, and publishing a Pensacola News Journal advertisement of the community meeting. The community meeting was held on October 1,2019 which was well attended. The developer has followed up with attendees by providing additional information on the project via mail and posting the project information on the Authority website.
The Authority has offered to fund the Local Government Area of Opportunity contribution for the project in order to obtain the point boost, provided that the development remain mixed income and provided that the developer agrees to use local contractors and materials to the maximum extent possible. |
| BUDGETARY IMPACT: |
This RFA from FHFC accepts statewide applications on a competitive basis, so there is no guarantee of any project being funded in Escambia County. It is anticipated that only a few projects will be selected for funding statewide. If this development is selected for funding by FHFC, the Authority will provide the minimum local government contribution of $354,000 in the form of a low interest loan.
No County funds are being committed to this project.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| The Local Government Verification of Contribution - Loan Form (Exhibit III) has been signed by Kristin Hual, Senior Assistant County Attorney. |
| PERSONNEL: |
| Not applicable to this recommendation. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
Execution by County Administrator of Local Government Verification of Contribution Loan Form for RFA 2019-113 Housing Credit Financing for Affordable Housing Developments Located in Medium and Small Counties requires Board approval.
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| IMPLEMENTATION/COORDINATION: |
If approved by the Board, the Neighborhood Enterprise Division will coordinate execution of the form to the developer and work with Escambia County Housing Finance Authority as needed.
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