Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Execution Of A Funding Commitment Between The City Of Hollywood And Dixie Hollywood Apts, LLC, An Affiliate Of Affiliated Development, LLC, For A Mixed Income Workforce Housing Development Located At 400 South Dixie Highway, Including Approximately $4,000,000.00 In Ila Gap Financing, $2,014,205.00 In Community Redevelopment Agency Post-Tif Funding, A 100% Development Review Fee Waiver, And A 100% Public Art Waiver.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
Dixie Hollywood Apts, LLC, an affiliate of Affiliated Development, LLC (“Developer”), proposes to develop a mixed-income multifamily rental housing development located at 400 South Dixie Highway in the City of Hollywood.
The proposed development will consist of approximately 394 residential units, with approximately fifty percent (50%) of the units restricted as workforce housing for households earning up to 120% of the Area Median Income (“AMI”). The project will also include structured parking and associated residential amenities designed to support long-term housing stability and neighborhood investment.
The Developer has advised the City that, due to increasing construction costs, financing constraints, and current market conditions, the project requires additional financial assistance to address a funding gap and maintain project feasibility. As part of its request, the Developer is seeking affordable housing gap financing, additional City/CRA funding assistance, and a waiver of the City’s public art requirements.
To support the development of workforce housing and advance the City’s affordable housing goals, the proposed funding commitment between the City and the Developer contemplates the following:
• $4,000,000.00 in affordable housing gap financing through the City’s affordable and workforce housing Interlocal Agreement (“ILA”) program, consisting of:
• $2,500,000.00 from the City’s FY 2026 ILA allocation
• $1,500,000.00 from the City’s FY 2027 ILA allocation
• $2,014,205 in additional funding, to be funded through the Downtown CRA Post-TIF funding allocation, consisting of:
• $750,000.00 from the Downtown CRA’s Fiscal Year 2028 Post-TIF Allocation
• $650,000.00 from the Downtown CRA’s Fiscal Year 2029 Post-TIF Allocation
• $614,205.00 from the Downtown CRA’s Fiscal Year 2030 Post-TIF Allocation
• A one hundred percent (100%) waiver of applicable public art requirements associated with the project.
• A one hundred percent (100%) waiver of applicable development review fees associated with the project.
All City funding will be secured by a recorded mortgage, promissory note, and restrictive covenant requiring compliance with a minimum thirty (30) year affordability period for workforce housing units, ensuring long-term public benefit and protection of the City’s financial interest.
The proposed Funding Commitment establishes the general business terms between the City and the Developer and authorizes the negotiation of the necessary Development Agreement, Funding Agreement, and related project documents. The project is anticipated to provide significant public benefits through the creation of workforce housing opportunities, expansion of the City's housing inventory, increased private investment, and continued redevelopment along the Dixie Highway corridor.
Approval of this Resolution will authorize the execution of the Funding Commitment and allow staff to proceed with negotiating the final agreements necessary to implement the project.
Fiscal Impact:
A portion of the funding for this agreement is available in the FY 2026 Operating Budget in account number 116.160502.51900.592293.001247.000.000. The FY 2027 ILA funding allocation, as well as the Downtown CRA’s Post-TIF allocations for FY 2028 through FY 2030; will be budgeted in subsequent fiscal years’ operating budget subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Ryon Coote, Housing and Community Development Director
Adam Riechbach, Deputy City Manager