|
Back to Calendar
Return
|
| |
County Administrator's Report 10. 2.
|
| BCC Regular Meeting |
Budget & Finance Consent |
|
|
|
| RECOMMENDATION: |
Recommendation Concerning Multi-family Housing Revenue Bonds for Delphin Downs Affordable Housing Development - Patricia D. Lott, Executive Director, Escambia County Housing Finance Authority
That the Board adopt the Resolution approving the plan of finance therein described and the issuance and sale of not exceeding $6,800,000 multi-family housing revenue bonds (the “Bonds”) by the Escambia County Housing Finance Authority (the “Authority”) to be used to finance or refinance the Delphin Downs Apartments located at 1717 West Cervantes Street in Pensacola, Florida (as described in the Background of the Recommendation). |
| BACKGROUND: |
| SP Downs 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, construction and equipping by the Borrower of a new multi-family rental housing facility (and associated capital expenditures) (the “Delphin Downs Apartments”) within the territorial limits of the City of Pensacola, Escambia County, Florida, and to pay certain costs of issuance in connection therewith.
On September 1, 2016, the Authority received a Multi-Family Housing Revenue Bond Application from Southport Development, Inc. (“SP Downs LLC”), an experienced tax credit developer headquartered in Tampa, Florida. Southport requested that the Board authorize issuance of its Multi-Family Mortgage Revenue Bonds in connection with a proposed 72-unit 4% Housing Tax Credit/SAIL Development to be located at 1717 West Cervantes Street within the City of Pensacola. The Delphin Downs Apartments will provide 72 units of quality rental housing for families with income below 60% of the Pensacola area median.
Following an extensive review of the 72-unit Delphin Downs Multi-Family Housing Revenue Bond Application, the Authority confirmed that the subject application was fully complete and the proposed site at 1717 West Cervantes Street, in the City of Pensacola, was suitable for such development. Subsequently, the Authority commissioned an external analysis of the development proposal by The Hendrickson Company, a widely-known expert in the rental development finance field in Florida. Their analysis confirmed the financial strength of the proposal and the developer, as well as the public purpose for the development. On September 13, 2016, the Authority’s Board unanimously approved a motion to invite Southport Development (“SP Downs LLC”) into the Authority’s formal multi-family process. In October 2016, SP Downs LLC filed an application with the State of Florida Housing Finance Corporation (“FHFC”) for State Apartment Incentive Loan (“SAIL”) and 4% Tax Credit financing with FHFC to be blended with not more than $6,800,000 in housing revenue bonds to be provided by the Authority, thereby providing the aggregate financing of approximating $14,000,000 required for the 72 two bedroom units and related facilities and amenities. The development was formally approved for award of up to $4 million in SAIL loans and $4.9 Million in federal Tax Credits by the FHFC Board of Directors on March 24, 2017 following due diligence review by FHFC.
A public hearing regarding the planned issuance of housing revenue bonds is required by federal law and said public hearing was conducted by the Authority, on behalf of the Escambia County Board of County Commissioners on April 11, 2017 at 4:30 pm. With such financing approvals in hand, the Authority’s Board adopted an inducement resolution with respect to the Delphin Downs Apartments on April 11, 2017. The results of the April 11, 2017 hearing have been provided to the Escambia County Board in the form of the Report of Hearing Officer attached to the 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 and Disclosure Counsel for the issue.
|
| BUDGETARY IMPACT: |
| The Authority does not receive funds from the County, and no funds of the County are expended in connection with the Bonds or the facilities to be financed. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| 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. |
| PERSONNEL: |
| None. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Bonds will comply with the Board's requirements for the issuance of conduit bonds, as established in the Conduit Bonds Ordinance. The Delphin Downs Apartments will improve the prosperity and welfare of the State of Florida and its inhabitants by encouraging the development and preservation of affordable, decent, safe, and sanitary housing. Approval of the resolution will allow the Authority to comply with its statutory mission to assist persons in obtaining safe and adequate housing. |
| IMPLEMENTATION/COORDINATION: |
| Requirements associated with this financing have been coordinated with representatives of FHFC, the City of Pensacola, the City of Pensacola Community Redevelopment Agency (“CRA”), the Borrower and the various professionals involved in the transaction. |
|
|
|
|