Springhill Apartments, LLC, a Florida limited liability company or its affiliate (the ”Borrower”), has requested that the Authority issue the above-referenced Bonds to finance or refinance the acquisition, upgrading, reconditioning, rehabilitation, improving and beautification by the Borrower of an existing multi-family rental housing facility (and associated capital expenditures) (the “Affordable Housing Project”) within the territorial limits of Madison County, Florida, and to pay certain costs of issuance in connection therewith. A minimum of $35,000 per unit will be expended for rehabilitation of the complex.
Because the proposed financing will involve tax-exempt bonds, Federal law requires that public hearings be approved by elected officials following public hearings in both the county where the facility is located (Madison County) and in Escambia County. Both the Madison County Board and the Escambia Board previously approved this project by Madison County Resolution 2015-12-09 and Escambia County Resolution 2015-171, on December 9, 2015 and December 10, 2015, respectively. After a number of attempts to secure highly competitive State Apartment Incentive Loan (“SAIL”) and 4% housing tax credit financing through Florida Housing Finance Corporation (“FHFC”), dating back to 2012, the Affordable Housing Project was selected for funding by FHFC in December 2017.
The Borrower has requested the Authority to work to update the various approvals concerning the multifamily housing bonds. It is expected that the proceeds of the bonds will be used along with the SAIL financing from FHFC, syndication of 4% tax credits, and long-term financing from the U.S. Department of Housing and Urban Development, to fully fund the costs of the plan of finance.
Accordingly, the Madison Board conducted a new TEFRA hearing on May 9, 2018, and adopted a new resolution of approval, further endorsing the need for this Project in Madison County.
An additional public hearing concerning the Affordable Housing Project was held at the Authority’s offices in Pensacola on May 4, 2018. The results of the May 4, 2018 hearing have been provided to the Escambia Board in the form of the Report of Hearing Officer attached to the Resolution as Exhibit A. The new Resolution is in substantially the same form as the resolution adopted by the Escambia County Board on December 10, 2015, except that the not-to-exceed amount was increased to provide for the possibility of price increases and financing contingencies, along with the decreased value of tax credits resulting from the passage of the 2017 Tax Reform Legislation.
Under the terms of standard financing documents, the Borrower is responsible for use and operation of the Affordable Housing Project, and the Bonds will not obligate the credit of the Authority or the County or pose any obligation or liability for the County. Bryant Miller Olive, P.A., the County’s Bond Counsel, will serve as Bond Counsel and Disclosure Counsel for the issue.
|