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County Administrator's Report 11. 1.
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| BCC Regular Meeting |
Discussion |
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| RECOMMENDATION: |
Recommendation Concerning Local Government Area of Opportunity Funding for 9% Housing Tax Credit Applications - Clara Long, Neighborhood & Human Services Director
That the Board take the following action concerning Local Government Area of Opportunity funding for 9% Housing Tax Credit Applications through the Florida Housing Finance Corporation (FHFC):
A. Approve, and authorize the County Administrator to sign, the Local Government Verification of Contribution Loan Form, subject to legal review and signoff, in support of the Local Government Area of Opportunity for 9% Housing Tax Credits under RFA 2020-201 Housing Credit Financing for Affordable Housing Developments located in Medium and Small Counties for Leah Gardens, in the amount of $460,000, with funding to be provided by the Escambia County Housing Finance Authority; OR
B. Support the provision of funds for a Local Government Area of Opportunity, in the amount of $460,000, as required by RFA 2020-201 Housing Credit Financing for Affordable Housing Developments located in Medium and Small Counties, to support one multi-family development Application, with funding to be provided by SHIP and Affordable Housing funds; and
C. Approve the local Application form and timelines, to include some flexibilities regarding local community meetings due to COVID-19.
| Vendor/Contractor |
Funding |
Amount |
Contract Number |
Vendor: TVC Development (Leah Gardens)
OR
Vendor: TBD |
Escambia County Housing Finance Authority
OR
Fund 120/2021 SHIP, Cost Center 370208 [$100,000] and Fund 124/Affordable Housing, Cost Center 370290 [$360,000] |
$460,000 |
N/A |
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| 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. For this fiscal year, FHFC is not requiring developers to secure a local government contribution as a mandatory component of the application for the 9% Housing Tax Credit applications under RFA 2020-201 Housing Credit Financing for Affordable Housing Developments located in Medium and Small Counties.
It is anticipated that FHFC will release the request for applications (RFA) in August 2020, for RFA 2020-201, with Applications due in November 2020. FHFC has announced several special funding goals for this RFA, which would give developments a priority for funding if they meet one of the goals. The statewide goals this year for the Medium and Small Counties are as follows:
- Five Medium County Local Government Area of Opportunity Applications, with a preference that three of the Applications had been submitted but not funded in RFA 2019-113, and two of the Applications were not submitted in RFA 2019-113
- Two Family Developments that qualify as either Geographic Area of Opportunity Developments or SADDA Developments
- One Application that qualifies for the Revitalization Goal
- One Medium County Application that qualifies for the SunRail Goal (within 0.5 miles of a SunRail station)
The Local Government Area of Opportunity preference requires a local government to support one development and commit to providing a minimum funding amount based on County size. This year, the minimum funding commitment for a development in Escambia County will be $460,000 (last year's funding commitment was $354,000). The State Housing Initiatives Partnership (SHIP) program funding for FY 2020-21, was line item vetoed by the Governor. There are minimal SHIP funds to support this from SHIP program income which would need to be supplemented from Fund 124/Affordable Housing if the County wants to provide an open competitive application this year.
Alternately, since FHFC is providing a "super" preference for three applications submitted in 2019 as a Local Government Area of Opportunity but not selected for funding, the Board can provide support for Leah Gardens, which the Board supported as the Local Government Area of Opportunity under RFA 2019-113 last year (Exhibit I). If the Board selects this option, the Escambia County Housing Finance Authority Board has voted to provide the required $460,000 local government funding.
If the Board does not move forward with Leah Gardens, the County needs to issue its Application as soon as possible. The application still contains community outreach requirements, but has provided some flexibility regarding in-person meetings due to COVID-19. The Application included with this Recommendation has also been updated from prior years to reflect current dates, deadlines, and RFA numbers. No developments may be in located Census Tract 16 as it qualifies as a RECAP (Racially and Ethnically Concentrated Areas of Poverty) area as directed by earlier Board policy. Staff is proposing submission of the local Application by September 18, 2020, in order to place the item on the October 15, 2020, Board agenda for Board consideration. |
| BUDGETARY IMPACT: |
The statewide housing tax credit application process through Florida Housing Finance Corporation (FHFC) is extremely competitive, so there is no guarantee of any project being funded in Escambia County as developments are competing for funds across the state. Developments selected as the County's Local Government Area of Opportunity (LGAOO) will receive a preference for funding. Five of these developments will be funded statewide, with FHFC giving preference to three developments submitted as the LGAOO from last year's cycle, which would give an advantage to Leah Gardens, which the County supported last year. If the County approves Leah Gardens, the Escambia County Housing Finance Authority will fund the required $460,000. If the County wants to solicit open applications, then funding will come from a combination of SHIP Program Income and Affordable Housing funds. This funding will only be provided in the event the development is selected for funding under the 2020-201 application cycle.
| Vendor/Contractor |
Funding |
Amount |
Contract Number |
Vendor: TVC Development (Leah Gardens)
OR
Vendor: TBD |
Escambia County Housing Finance Authority
OR
Fund 120/2021 SHIP, Cost Center 370208 [$100,000] and Fund 124/Affordable Housing, Cost Center 370290 [$360,000] |
$460,000 |
N/A |
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| FHFC has not released the Local Government Verification of Contribution form at this time. If the Board approves support of Leah Gardens, the form will be reviewed and approved by legal prior to signoff by the County Administrator. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| Review of the application process, including proposed changes, must be approved by the Board. Potential funding commitments must be reviewed and approved by the Board. |
| IMPLEMENTATION/COORDINATION: |
| If the Board determines they want to fund the Applications with County funds, the Neighborhood Enterprise Division will post the Application online and will review applications with the support of other County departments including Development Services. |
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