Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving The Funding Agreement With Pinnacle 441 Phase 2, A Florida Limited Liability Company, Which The City Previously Committed $1,000,000.00 In Support For Pinnacle 441 Phase 2, A Mixed-Income Affordable Housing Project Generally Located At 6028 Johnson Street In Hollywood, Including A Minimum Of 100 New Affordable Housing Units Designated For Those Earning An Average Of 60% Of The Area Median Income Or Less; Authorizing The Appropriate City Officials To Execute All Documents Necessary To Effectuate This Resolution.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Florida Housing Finance Corporation issued a Request for Applications (RFA 2021-202) to award housing tax credits to at least two developments in Broward County demonstrating local government support through the commitment of Local Government Areas of Opportunity Funding. On December 1, 2021, the City Commission adopted Resolution R-2021-330 pledging financial support for Pinnacle Communities, LLC plans to develop an additional 100 units of affordable housing adjacent to the site of its Pinnacle 441 Phase I project at the southwest corner of Johnson Street and US 441. Phase I is nearing completion of construction and is a mixed-use, development consisting of 113 affordable residential units and approximately 6,000 square feet of commercial retail space along with a public plaza area.
A $1,000,000 commitment of City of Hollywood financial support was a requirement for the Phase II project to secure bond financing and gap funding from Broward County. The Phase II project increases the total number of rental units at the site to approximately 213 and converts a former trailer park and storage lot into high quality, income-restricted housing with one ground floor live/work unit with commercial frontage along Johnson Street, a ground floor community room, cyber lounge, and package delivery room for residents. Pinnacle estimates construction of Phase II will take approximately 16 months.
Pinnacle 441 Phase II was awarded 4% low-income housing tax credits from the Florida Housing Finance Corporation, SAIL funding, Broward County Housing Finance Authority Bond Funding and Gap Loan funding. There is a critical need for quality affordable housing throughout the City of Hollywood and Broward County and this project is ideally located with convenient access to transit routes and employment opportunities.
Fiscal Impact:
The $1,000,000 loan is repayable at 0% interest at the end of the 32-year loan term. Funding is available through the Neighborhood Pride Program funds from the Interlocal Agreement with Broward County on Affordable Housing.
Recommended for inclusion on the agenda by:
Ryon Coote, Community Development Division Manager
Raelin Storey, Assistant City Manager