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County Administrator's Report 15. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning a Resolution Authorizing the Escambia County Housing Finance Authority to Issue an Aggregate $225,000,000 Single Family Housing Revenue Bonds (Multi-County Program) - Patricia D. Lott, Executive Director, Bryant Miller Olive P.A
That the Board adopt a Resolution which approves a plan of finance, for low-interest loans to first-time homebuyers, and authorizes the Escambia County Housing Finance Authority (the "Authority") to issue Single Family Housing Revenue Bonds from time to time, in an aggregate principal amount not to exceed $225,000,000 (collectively, the “Bonds”). |
| BACKGROUND: |
| Since the creation of the Authority by the Board in 1980, the Authority has operated a number of programs to take advantage of federal tax programs that provide low-interest financing for housing. The proposed program described in the Resolution provides affordable mortgage financing for first time homebuyers of low, moderate and median incomes in Escambia County (the “County”) and other participating counties in Florida (the “Program”). The Program offers below market interest rates, or other optional interest rates which assist the homebuyer with down payments or closing costs.
The Authority has heretofore approved a single family loan program pursuant to which mortgage loans are originated pursuant to a Program Invitation and Parameters and a Master Mortgage Origination Agreement, and, following the issuance of a series of Bonds, the purchase by the trustee under a trust indenture for such series of Bonds of Mortgage-Backed Securities consisting of such mortgage loans. On December 9, 2017, the Authority will commence a new Mortgage Credit Certificate program for first time homebuyers who otherwise would qualify for mortgage loans under the Authority’s single family program.
The Authority will apply to the State Division of Bond Finance for bond volume allocation in the amount of $225,000,000 following the Board’s adoption of the proposed resolution, and intends to request that the allocation be carried forward into 2018. As part of the carryforward process, the Authority is able to designate a portion of the allocation for use in its single-family program or in its multi-family program, and to subsequently convert a portion of the allocation designated for its single-family program for a mortgage credit certificate program. The carryforward allocation would be available to the Authority until December 31, 2020. In the event the Authority elected to convert a portion of the allocation to multi-family projects, the board would have to approve each such project prior to the issuance of any multi-family housing revenue bonds by the Authority.
On November 29, 2017, the Authority conducted a TEFRA hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, to take public comment on the plan of finance for the Program, including its intention to issue and sell the Bonds from time to time in an aggregate principal amount not to exceed $225,000,000, including temporary bond anticipation notes in connection therewith.
Adoption of the Resolution is the only action required by the Board. The Bonds will be issued by the Authority. Bonds issued pursuant to the plan of finance will never constitute an indebtedness, liability, general or moral obligation, or pledge of the faith, credit or taxing power of the State of Florida, the Authority, Escambia County, or any other political subdivision of the State of Florida within the meaning of any charter, constitutional or statutory provisions or limitations.
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| BUDGETARY IMPACT: |
| The Authority does not receive funds from the County, and no funds of the County are expended in connection with the Program or the Bonds. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| The County’s bond counsel, Bryant Miller Olive P.A., also serves as bond counsel and disclosure counsel to the Authority. JoLinda Herring, of Bryant Miller Olive, has reviewed the Resolution on behalf of the County. Bryant Miller Olive P.A. will also review the documents for each transaction issued under the Plan of Finance on behalf of the Authority and the County to insure that neither the Authority nor the County has any liability or obligation under the Bonds. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Single Family Housing Revenue Bond Program provides first-time homebuyers with housing at affordable rates, thus encouraging home ownership. The Program further serves a public purpose by advancing economic prosperity, health and general welfare of the State of Florida, the County and its people. |
| IMPLEMENTATION/COORDINATION: |
| N/A |
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