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8.
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| Special BCC Meeting |
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| Information |
| RECOMMENDATION: |
Recommendation Concerning Local Government Verification of Contribution Loan Forms for RFA 2018-116 SAIL Financing of Affordable Multifamily Developments with Bonds and Housing Credits - Tonya Green, Neighborhood & Human Services Director
That the Board approve and authorize the Acting County Administrator to sign the Local Government Verification of Contribution Loan Forms for RFA 2018-116 SAIL Financing of Affordable Multifamily Developments with Bonds and Housing Credits for Summer Meadows, in the amount of $137,500 ($37,500 minimum contribution plus $100,000 special needs set-aside).
[Funding: Escambia County Housing Finance Authority; 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. Developers applying for RFA 2018-116 SAIL Financing of Affordable Multifamily Developments to be Used in Conjunction with Tax-Exempt Bonds and Non-Competitive Housing Credits are required to secure a "Local Government Certification of Contribution Form" (Exhibit I) from a local government, which secures a minimum contribution of $37,500 in order to receive maximum points during the scoring process. The State Apartment Incentive Loan (SAIL) program is funding available from the state to be used as gap financing in conjunction with Bond financing and non-competitive housing credits. Though the Board is authorizing the Acting County Administrator to sign the form committing for the Summer Meadows development, there is no guarantee of a development being selected for funding by the state as FHFC accepts multiple applications statewide with limited funding available. Given the amount of funding available, it is anticipated that approximately two to three developments will be funded in medium sized counties from across the state.
FHFC mandates income set asides as determined by Section 42 of the IRC (at least 20% of the units must be set aside for households earning 50% or less of the area median income OR at least 40% of the units must be set aside for households earning 60% or less of the area median income). 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.
A draft application form for the County funds has been available on the County webpage since September 10. On October 4, 2018, the Board approved the general application process for the minimum contribution of $37,500 with a provision of an additional $100,000 to be made available if the developer commits to provide two homeless/special needs set aside units for extremely low income households (30% AMI) as part of the application. Applications were originally due to County staff October 29. At the November 1 meeting, the Board extended time to give developers an opportunity to submit additional materials to be considered at the November 19 Special Board meeting. RFA 2018-116 was issued by FHFC on October 19 and is due to the State on November 27. Full information on FHFC RFA 2018-116 can be found online at Florida Housing's website here.
Only one application was received by the deadline for Summer Meadows at 6080 Hilburn Road located in District 3, a 120 unit family development proposed by Southport Development. The original application summary is included in Exhibit II. The full original application is available on the Rental Programs page on the County website and a hard copy is available for review in the County Administrator's office and the Neighborhood Enterprise Division office.
Summer Meadows scheduled two meetings on November 8 and on November 15 to receive community input. Verification of the mailout sent to property owners within 2500 feet of the development, signage at the property, and Pensacola News Journal publication have been included in Exhibit III. Any additional community outreach materials received after the agenda deadline (i.e., meeting sign-in sheets) will be distributed separately.
The following free resident programs will be provided by the development: literacy training, which will provide literacy tutoring; employment assistance program, which will provide at least quarterly job counseling workshops; and a homeownership opportunity program, which will provide a grant of at least 5% of the tenant's rent toward a home purchase. Additionally, the developer has committed to provide a financial management program in excess of the minimums required by the state which will include budgeting, retirement planning, and homeowner education classes.
The developer has committed to set aside two units for special needs households who have incomes at or below 30% area median income ($13,700 for a one person household and $16,460 for a two person household). The rents on these units will be capped at the 30% rent limits, which is currently $519 for a two bedroom unit. The developer is proposing charging $365 for these two set aside 2-bedroom units. Referrals for the special needs households will be channeled through Opening Doors Northwest Florida. |
| BUDGETARY IMPACT: |
| This RFA from FHFC accepts statewide applications, 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 the state, the Escambia County Housing Finance Authority will provide the minimum local government contribution of $37,500. Funding for the special needs set aside will be provided from County SHIP and/or Affordable Housing funds. The SHIP program funds require that a minimum of 20% of funding be provided to special needs households as described in Section 420.0004(13), F.S. The most recent County grant allocation year will be used at the time of the award, and an Agreement will be brought to the Board to formally commit funding. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Not applicable to this recommendation. |
| PERSONNEL: |
| Not applicable to this recommendation. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| Commitment of funds requires Board approval. |
| IMPLEMENTATION/COORDINATION: |
| If approved by the Board, the Neighborhood Enterprise Division will coordinate execution of the form(s) to the developer(s) and work with Escambia County Housing Finance Authority as needed. |
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