Agenda

Back to Calendar Return

County Administrator's Report 13. 3.

BCC Regular Meeting

Discussion

Meeting Date:	07/02/2020
Issue: Local Government Area of Opportunity funding for Housing Tax Credit Applications
From:	CLARA LONG
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Local Government Area of Opportunity Funding for Housing Tax Credit Applications - Clara Long, Neighborhood & Human Services Director

That the Board take the following action concerning Local Government Area of Opportunity funding for Housing Tax Credit Applications through the Florida Housing Finance Corporation (FHFC):

A. Support the provision of funds for a Local Government Area of Opportunity, in the amount of $460,000, as required by RFA 2020-201 Housing Credit Financing for Affordable Housing Developments located in Medium and Small Counties, to support one multi-family development application; and

B. Approve the local Application form and timelines; and

C. Support the provision of an additional $50,000 for developments providing homeless or special needs set aside units.

[Funding: Fund 120/SHIP and/or Fund 124/Affordable Housing]

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. For this fiscal 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 2020-201 Housing Credit Financing for Affordable Housing Developments located in Medium and Small Counties.

It is anticipated that FHFC will release the request for applications (RFA) in August 2020 for RFA 2020-201, with Applications due in November 2020. 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 five 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; one development that is part of a local revitalization initiative; one development within 0.5 miles of a SunRail station; and one development 100% owned by a not for profit.

The Local Government Area of Opportunity preference requires a local government to support one development and commit to providing a minimum funding amount based on County size. This year, the minimum funding commitment for a development in Escambia County will be $460,000. Funding would be available from the State Housing Initiatives Partnership (SHIP) program.

The Application included with this Recommendation has been updated from prior years to reflect current dates, deadlines, and RFA numbers. The Application has also been updated to exclude developments located Census Tract 16 as it qualifies as a RECAP (Racially and Ethnically Concentrated Areas of Poverty) area. As part of the application process approved by the Board, no developments will be approved for funding in RECAP areas. Staff is proposing submission of the local Application by September 18, 2020, in order to place the item on the October 15, 2020, Board agenda for Board consideration.

The provision of an additional $50,000, in addition to the funding for the Local Government Area of Opportunity, has been included to encourage the set aside of two units in developments for a homeless or formerly homeless individual or household or a special needs household as an optional election by the developer. If funding is awarded by FHFC, the developer proposing the homeless set aside would be required to receive referrals from Opening Doors Northwest Florida as the local Continuum of Care (COC) for the units and execute an Agreement or Memorandum of Understanding with Opening Doors, in addition to the Agreement that will be executed with the County. The units must be reserved for extremely low income households and the rent limit cannot exceed the 30% rent limits based on bedroom size. Provision of a homeless or special needs set aside enables the County to help meet SHIP mandated extremely low income and special needs set asides, as well as help provide the COC support in its competitive HUD COC funding application by showing that the area is seeking to provide units for homeless households transitioning out of supportive housing.

BUDGETARY IMPACT:

The statewide housing tax credit application process through Florida Housing Finance Corporation (FHFC) is extremely competitive, so there is no guarantee of any project being funded in Escambia County as developments are competing for funds across the state. The development selected as the County's Local Government Area of Opportunity will receive a preference for funding; however, only five of these developments will be funded statewide.

Fund 120/SHIP and/or Fund 124/Escambia Affordable Housing funds will only be provided in the event that a development is awarded financing through FHFC during this application cycle.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Review of the application process, including proposed changes, must be approved by the Board. Potential funding commitments must be reviewed and approved by the Board.

IMPLEMENTATION/COORDINATION:

Neighborhood Enterprise Division will post the Application online and will review applications with the support of other County departments including Development Services.

Attachments
RFA 2020-201 Draft Application