Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Rebate To Pinnacle 441, LLC For Impact Permit Fees For The Affordable Housing Development Of Pinnacle 441 Phase One In The Amount Of $224,475.00.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of Attached Resolution.
Explanation:
Housing affordability is affected by a complex network of factors. However, the issue largely comes down to supply and demand. When demand significantly outpaces supply, the cost of available units rises. As a result, low- and even middle-income buyers and renters are increasingly cost-burdened. This gap in affordability has been further exacerbated by inflation. The City Commission has recognized this deficit and supported policies and investments to increase the supply of quality, attainable housing.
On October 3, 2018, the City Commission passed and adopted Resolution No. R-2018-324 executing an Interlocal Agreement with Broward County, the City of Hollywood and Hollywood Community Redevelopment Agency regarding funding for affordable housing programs.
Pinnacle 441, LLC is the owner and developer of Pinnacle 441 Phase 1, a mixed-use development project totaling 113 residential units to provide critically needed affordable housing along with ground floor commercial retail space, located at the southwest corner of State Road 7/US 441 and Johnson Street.
Pinnacle 441, Phase 1 is a part of a strategic, multi-phase, mixed-use development spearheaded by Pinnacle and supported by the Florida Housing Finance Corporation and Broward County. 110 units will be affordable at 60% of the area-wide median income or less, with an additional 3 market-rate units including a ground floor live/work space with commercial frontage on Johnson Street. The commercial space totals 6,760 square feet fronting the active and heavily trafficked State Road 7/US 441 corridor. Pinnacle 441 will offer easy convenience to transit, employment and services in an area primed for redevelopment.
On June 28, 2022, Pinnacle 441, LLC paid to the City an impact fee, in the amount of $224,575.00, for the development of the project. On September 21, 2022, the City adopted Ordinance O-2022-18 amending Chapter 38 of the Code of Ordinances entitled "finance" related to development impact fees for general government buildings, fire rescue, law enforcement, parks and recreation, and multi-modal transportation. The Commission adopted an exemption under section 38.103 (A) “Exemption from payment of impact fees”, sub-section (5) for “Developments or construction of Affordable Housing as defined in Section 38.100.” During this meeting, the Commission discussed the recent impact fee payment by Pinnacle 441 LLC for the Phase I affordable housing development and requested staff bring forward a separate agenda item for the rebate of this fee, rather than making the affordable housing exemption contained in the amendment retroactive.
The Community Development Division recommends approving and authorizing the appropriate City officials to execute a rebate to Pinnacle 441, LLC for impact permit fees related to the affordable housing development of Pinnacle 441 Phase 1 in the amount of $224,475.00.
Fiscal Impact:
Funding for the rebate to Pinnacle 441, LLC for permit fees is available in the FY 2024 Operating Budget in account number 116.160502.51900.592293.001247.000.000.
Recommended for inclusion on the agenda by:
Ryon Coote, Community Development Division Manager
Raelin Storey, Assistant City Manager