On June 8, 2017, the Escambia County Board of County Commissioners (the “Escambia County Board”) approved Resolution #2017-74 (the "2017 TEFRA Resolution") approving a plan of finance for the issuance and sale of not exceeding $6,800,000 Multi-family Housing Revenue Bonds by the Authority to finance or refinance the acquisition, construction and equipping by SP Downs LLC (“the “Borrower”) of a new 72-unit multi-family rental housing facility to be known as the Delphin Downs Apartments (the "multi-family Rental Project" or "Project") and to pay certain costs of issuance in connection therewith. The 2017 TEFRA Resolution is included as an attachment to this Recommendation.  After this approval, revisions to the tax code enacted by Congress in late 2017 negatively impacted the housing tax credit equity market, thereby increasing the overall cost of financing for the Multi-family Rental Project and delaying the financing timeline.

In June, 2018, the Developer secured a commitment from Florida Housing Finance Corporation for additional subsidy to fill the gap resulting from the increased cost of financing.  The Developer has advised that it is ready to proceed with closing the financing and construction of the Project, which is now in permit-ready design phase. 

Federal law requires an additional approval of the Bonds by the Escambia County Board due both to the increased not-to-exceed amount of the Bonds and because the Bonds must be issued within one year of the date of approval.  Although approval for the issuance of not to exceed $10,000,000 principal amount of the Bonds is requested, it is presently anticipated that the Bonds will be issued in a lower amount, depending upon market conditions at the time of sale. 

Public hearings regarding the planned issuance of the Bonds as required by federal law were conducted by the Authority on behalf of the Escambia County Board initially on April 11, 2017, and most recently on August 1, 2018.  The results of the August 1, 2018 hearing have been provided to the Escambia County Board in the form of the Report of Hearing Officer attached to the 2018 TEFRA Resolution as Exhibit A. 

Under the terms of standard financing documents, the Borrower is responsible for use and operation of the facilities to be financed, 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 for the issue. 

The County’s Bond Counsel, Bryant Miller Olive P.A., will review the documents on behalf of the County to ensure that the County has no liability or obligation under the Bonds, and, to the extent required, the County’s Disclosure Counsel, Nabors, Giblin & Nickerson, P.A., will review the documents on behalf of the County to insure federal and state law disclosure requirements are satisfied to assure the County’s interests are protected.