Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving A Loan Commitment In An Amount Not To Exceed $1,878,357.77, Consisting Of $1,243,357.77 In Neighborhood Stabilization Program Funds, $135,000.00 In Home Program Funds, And $500,000.00 In Home Program Income Funds, For The Redevelopment Of The Hollywood Village Affordable Housing Development Into The Hollywood Vista Affordable Housing Development.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In 2010, the City provided $2,005,000.00 in federal funding assistance to support the Hollywood Housing Authority’s (“HHA”) acquisition and preservation of Hollywood Village, a 29-unit affordable housing development located at 1735 Lincoln Street, Hollywood, Florida. The funding consisted of Neighborhood Stabilization Program (“NSP”) funds and HOME Program funds and was secured through loan agreements, affordability restrictions, and applicable federal requirements.
Beginning in late 2021, significant structural deficiencies were identified at Hollywood Village. In June 2023, the City’s Building Department determined that the property was unsafe and required the building to be vacated. Resident relocation activities were completed in accordance with applicable federal relocation requirements. Due to the extent of the structural deficiencies, rehabilitation of the existing property was determined to be financially infeasible. The City, HHA, and Housing Trust Group (“HTG”) developed a redevelopment strategy to transform Hollywood Village into Hollywood Vista, a new 118-unit affordable housing community. HTG has been awarded State Apartment Incentive Loan (“SAIL”) funding through the Florida Housing Finance Corporation’s Request for Applications (RFA) 2025-213 and is currently progressing through the credit underwriting and construction closing process.
As part of the redevelopment financing structure, the City has identified previously invested federal resources associated with the former Hollywood Village project totaling $1,378,357.77, consisting of:
• $1,243,357.77 in NSP funds
• $135,000.00 in HOME funds
These resources represent repayment of previously invested City funds associated with the Hollywood Village development and are currently available for eligible reuse in accordance with applicable HUD requirements. The amount reflects funds returned to the City by HHA, with an adjustment of $202,080.00 for management and asset fees owed by the City to HHA pursuant to prior Hollywood Village agreements.
The City intends to reinvest these returned federal resources into the Hollywood Vista redevelopment, with the ability to utilize these funds for other eligible HUD-approved activities if necessary. In addition, HTG is requesting an allocation of up to $500,000.00 in HOME Program Income funds to assist with eligible redevelopment costs associated with Hollywood Vista. The Hollywood Vista redevelopment will:
• Preserve the City’s prior federal investment in affordable housing
• Transform a distressed and unsafe property into a new, modern affordable housing community
• Preserve existing affordability obligations by maintaining 29 units affordable at 50% of Area Median Income (“AMI”)
• Add additional affordable housing opportunities serving households at varying income levels, including 30%, 60%, and 80% AMI
• Create additional affordable housing units while maintaining long-term affordability restrictions
• Support the continued availability of affordable housing within the City of Hollywood
The existing Land Use Restriction Agreement (“LURA”) associated with Hollywood Village will be amended, updated, or replaced as necessary to reflect the redevelopment, revised unit mix, affordability requirements, and extended affordability period.
The proposed loan commitment consists of:
• Returned Neighborhood Stabilization Program Funds, $1,243,357.77
• Returned HOME Program Funds, $135,000.00
• HOME Program Income Funds, $500,000.00
• Total Loan Commitment, $1,878,357.77
The loan commitment will be secured through appropriate loan documents, including a promissory note, mortgage, restrictive covenant, Land Use Restriction Agreement, and other documents necessary to protect the City’s financial interest and ensure compliance with HUD, NSP, and HOME Program requirements. Final loan terms, including repayment provisions, interest rate, maturity date, affordability requirements, and other applicable conditions, will be established through the final loan documents approved by the City.
Fiscal Impact:
Funding for the proposed loan commitment of $1,878,357.77 will be made available through reinvestment-eligible federal housing resources and HOME Program Income funds.
The funding sources include:
• Returned $1,243,357.77 in NSP and $135,000.00 in HOME funds previously invested in the Hollywood Village development; and
• $500,000.00 in HOME Program Income funds available for eligible affordable housing activities in account number 115.160201.55400.580010.001867.000.000.
Recommended for inclusion on the agenda by:
Ryon Coote, Housing and Community Development Director
Adam Reichbach, Deputy City Manager