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Public Hearings 14.
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| BCC Regular Meeting |
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| RECOMMENDATION: |
5:33 p.m. TEFRA Public Hearing for consideration of authorizing the issuance, by the Osceola County Housing Finance Authority, of not-to-exceed $44,000,000 in Multifamily Housing Revenue Bonds, on behalf of Hallmark Development Services, LLC, or one of its affiliates.
Recommendation: That the Board take the following action concerning the issuance, by the Osceola County Housing Finance Authority (the “Issuer”), of not-to-exceed $44,000,000 in Multifamily Housing Revenue Bonds (the “Bonds”), on behalf of Hallmark Development Services, LLC, or one of its affiliates (the “Company”), for the purpose of financing or refinancing the costs to acquire rehabilitate and equip certain residential rental housing communities, including, but not limited to, Oakwood Village located in the Town of Century, Escambia County, Florida:
A. Conduct the Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing; and
B. Following the TEFRA Public Hearing, adopt and authorize the Chairman to execute the Resolution granting “area of operation” authority within the County to the Issuer and approving the issuance of the Bonds upon the terms established therein. The Bonds will not be issued by the County nor obligate the credit of the County or pose any obligation or liability for the County. |
| BACKGROUND: |
| The proposed Bonds are to be issued by the Issuer for the purpose of (a) financing or refinancing the costs to acquire, rehabilitate and equip certain residential rental housing communities, including, but not limited to, Oakwood Village located at 9640 Shady Lane, Century, Florida 32535 (“Oakwood Village”), and (b) pay certain costs associated with the issuance of the Bonds. The Bonds do not constitute the debt or indebtedness of the County within the meaning of any provision or limitation of the statutes or Constitution of the State of Florida, and shall not constitute or give rise to a pecuniary liability of the County, or a charge against its general credit or taxing powers.
The Company has undertaken a major initiative to upgrade and modernize a portfolio of 954 affordable rental housing units located in 17 cities (12 counties) across the State of Florida. Oakwood Village is one of 22 properties included in the pending portfolio. It is a 40-unit elderly designated multi-family community serving the Century, Escambia County, Florida affordable housing community since 1992.
The approximately $1.7 million planned renovation for Oakwood Village will address both the immediate and long-term capital needs of the property. Unless recently replaced by management, anticipated improvements include (but not limited to) kitchen and bath upgrades, installation of new flooring, HVAC systems and domestic hot water units, replacement of all interior and exterior light fixtures, new GFI outlets and smoke detectors, and installation of new 30-year architectural roofs, vinyl siding, energy-efficient windows, and exterior doors, as may be needed. Furthermore, additional community work will include parking lot and sidewalk repairs, landscaping upgrades, amenity upgrades and new property signage. Finally, all ADA accessibility concerns will be addressed.
Renovations of this magnitude will have a positive impact on the quality of life for the residents as well as the small rural economy of northern Escambia County. Specifically,
a) No displacement - For residents, a unique approach to tenant-in-place rehab will minimize the amount of time tenants are displaced from their units during the course of the rehabilitation. Residents are asked to leave their unit for the day and when they return that night the interior work will be primarily complete.
b) No adverse impact - The Company has ensured there will be no adverse impact to the existing residents as a result of this rehabilitation. The Company will establish a Private Rental Assistance escrow for any project without 100% project-based rental assistance. For any unsubsidized units, the Company will subsidize any change to the current rent due to the recapitalization/rehabilitation.
c) Increased tax base – At least 40 to 60 construction workers will be participating in the local economy during the three month construction period. While some will be remote workers dining and lodging at local establishments, many of the subcontractors hired will be local to Florida.
Many of these properties are at the end of their original restrictive-use period; thus, the current owners are now ready to sell and the projects are "at risk" of being removed from the affordable housing stock. Unfortunately, there are few viable resources available to necessitate the broad scale levels of renovation required. With such small project sizes, rural market locations, and typically with inadequate built-up cash reserves, recapitalization options are extremely limited. The preservation transaction will not only modernize and preserve the physical asset, it will preserve the affordability component for at least another 30 years.
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| BUDGETARY IMPACT: |
| The County will not be required to make any payments or incur any costs for the Bonds. The County shall be also be reimbursed by the Company for out of pocket expenses as outlined in Chapter 46, Article VII, of the County’s Code of Ordinances (the “Conduit Bonds Ordinance”). |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Richard Lott and JoLinda Herring, Bryant Miller Olive P.A., the County’s Bond Counsel, will review the documents on behalf of the County to insure that the County has no liability or obligation under the Bonds. |
| PERSONNEL: |
| None. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Bonds will comply with the requirements of the Conduit Bonds Ordinance. |
| IMPLEMENTATION/COORDINATION: |
| None needed. |
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