Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Loan Agreement With Housing Trust Group, LLC, A Florida Limited Liability Company, Or An Affiliated Entity, Committing $1,950,000.00 Of City Interlocal Agreement Funds For The Acquisition Of 1708 North Dixie Highway, Hollywood, Florida, For The Development Of Mosaic Hollywood, An Affordable Housing Development; And Providing For An Effective Date.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The property located at 1708 North Dixie Highway is currently a troubled site. HTG proposes to acquire the property and redevelop it as Mosaic Hollywood, an affordable housing community anticipated to provide approximately 84 affordable housing units serving households at various income levels, including:
• 10 units at or below 80% AMI
• 19 units at or below 70% AMI
• 42 units at or below 60% AMI
• 13 units at or below 30% AMI
The proposed development will include 77 one-bedroom units and 7 two-bedroom units, ranging from approximately 650 to 897 square feet, with approximately 103 parking spaces and community amenities, including a swimming pool, fitness center, and clubroom. HTG also intends to provide a leasing preference to veterans, subject to applicable program and fair housing requirements.
HTG is requesting $1,950,000.00 in City ILA funds to assist with the acquisition of the Subject Property and facilitate site control. HTG intends to pursue financing through the Florida Housing Finance Corporation ("FHFC") under the applicable FY 2027-28 Request for Applications ("RFA"), as well as other financing necessary to develop the project. The City's commitment is structured as an acquisition loan. A portion of the acquisition loan may also be used to satisfy the City’s $640,000 Local Government Area of Opportunity/Local Government Contribution (“LGAO/LGC”) commitment in connection with HTG’s applications to the FHFC for competitive 9% Low-Income Housing Tax Credit financing.
The $640,000 LGAO/LGC commitment will be available for the 2027 and 2028, FHFC Large 9% Request for Application (RFA) cycles, allowing HTG to pursue FHFC financing over multiple application cycles, if necessary to secure funding for this project. The LGAO/LGC commitment will be funded from, and will not be in addition to, the City’s $1,950,000 acquisition loan commitment.
The proposed acquisition will allow the City to address a currently troubled site while supporting the development of additional affordable housing in Hollywood. The project will provide affordable housing opportunities at multiple income levels, including deeply affordable units serving households at or below 30% AMI.
Upon approval of the Resolution, the City Manager or designee will be authorized to negotiate and execute the Development Agreement, Funding Commitment, Loan Agreement, and other documents necessary to complete the acquisition, secure the City's investment, provide the applicable LGAO/LGC commitment, and facilitate the development of the Subject Property as affordable housing, subject to approval as to form and legal sufficiency by the City Attorney. HTG will continue pursuing FHFC financing and other funding necessary to advance the proposed Mosaic Hollywood development.
Fiscal Impact:
The proposed commitment is $1,950,000.00 in City ILA funds, in the form of an acquisition loan to Housing Trust Group. Funding is subject to compliance with all applicable ILA requirements and is available in account number 116.160502.51900.592293.001247.000.000.
Recommended for inclusion on the agenda by:
Ryon Coote, Housing and Community Development Director
Adam Reichbach, Deputy City Manager