Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Committing To Provide A Local Government Areas Of Opportunity Contribution In The Form Of A $640,000.00 Loan In Support Of An Application To The Florida Housing Finance Corporation In Response To Its Request For Applications For 9% Housing Tax Credits To Support The Development Of A Mixed-Income Housing Project In The City To Include A Minimum Of 100 New Affordable Housing Units; Authorizing The Appropriate City Officials To Execute All Documents Necessary To Effectuate The Intent Of This Resolution.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Florida Housing Finance Corporation has issued a Request for Applications (RFA 2022-202) that will award 9% low-income housing tax credits (“LIHTC”) to an eligible development in Broward County that has demonstrated local government support through the commitment of a Local Government Contribution in the amount of $640,000.00 to be provided as either a loan or a grant. This funding will allow a development project to achieve the Local Government Areas of Opportunity (“LGAO”) Designation giving the project a greater likelihood of being awarded LIHTC funding. Two development groups, Housing Trust Group, LLC (“HTG”) and The NuRock Companies (“NuRock”), have approached the City requesting this support. The RFA specifies that local governments can only provide this support to a single project within their jurisdiction. The two requests for LGAO funding are detailed below as Option A and Option B.
Option A: HTG is requesting the City’s support for the construction of mixed-income apartment community for seniors consisting of approximately 100 affordable residential units for those earning an average of 60% of the area median income (“AMI”) on a 0.821-acre site located on the corner of Washington Street and Dixie Highway at 826 South Dixie Highway. The Paramount Place project would transform a current auto repair use into a vibrant one- and two-bedroom rental community for seniors within the Regional Activity Center with convenient access to transit options and downtown amenities. HTG has control of the site via a purchase and sale agreement and is asking the City to provide a $640,000 Local Government Contribution in the form of a loan to the project to help this development achieve housing tax credits from Florida Housing Finance Corporation.
Option B: NuRock is requesting the City’s support for the construction of a mixed-income housing development, Residences at Beverly Park, consisting of approximately 134 units to be located on an approximately 1.8-acre site located at 6015 Washington Street. The entire 134 units will be restricted to residents earning between 28% - 60% AMI. The proposed development is adjacent to the new Parkview at Hillcrest residential community. NuRock has control of the site via a purchase and sale agreement and is asking the City to provide $640,000 in LGAO funding in the form of a loan to the project to help this development achieve housing tax credits from Florida Housing Finance Corporation.
The commitment of LGAO funding in the form of a loan by the City to either project would be contingent upon the award of 9% LIHTCs by Florida Housing to the selected project in this funding cycle and will expire if funding from Florida Housing is not obtained by July 1, 2023. The terms of the loan will comply with the requirements of RFA-2022-202 and provide a quantifiable cost reduction to the project in the form of a low interest rate between 2.5% and 3.25% with repayment of the principal along with interest within a term of 20 years or less.
There is a need for quality affordable housing throughout the City of Hollywood and both proposed projects would help to address that need.
Fiscal Impact:
Approval of this resolution will authorize the City to commit a Local Government Contribution of $640,000.00 in the form of a loan, contingent upon 9% LIHTC funding being awarded to the selected development firm by July 1, 2023. The terms and conditions of the loan as well as the source of funding will be determined by staff at a later date.
Recommended for inclusion on the agenda by:
Raelin Storey, Director of Communications, Marketing and Economic Development
Shiv Newaldass, Director of Development Services
Gus Zambrano, Assistant City Manager for Sustainable Development