Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Committing A Local Government Contribution In The Form Of A $640,000.00 Loan For The Affordable Housing Development Known As Hillcrest Village To Allow The Proposed Development To Qualify For A Local Government Areas Of Opportunity Designation As Part Of An Application To The Florida Housing Finance Corporation For Low-Income Housing Tax Credits And 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 2025-202) 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 that can 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 competitive LIHTC funding. Housing Trust Group, LLC (“HTG”) is requesting this contribution in support of the Hillcrest Village project located on approximate 2.45 acres located at 1101 Hillcrest Drive. This project is fully approved for development by the City Commission and will provide 110 units of affordable housing for those households earning an average of 60% of the area median income (“AMI”).
The Hillcrest Village project seeks to revitalize a currently underutilized site into a purpose-built residential community with attractive architecture, landscaping and amenities that complement the existing neighborhood and address the critical need for affordable housing in Hollywood. 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 LIHTC funding through the Florida Housing Finance Corporation.
The provision of a Local Government Contribution in the form of a loan by the City to this 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, 2026. The terms of the loan will comply with the requirements of RFA-2025-202 and provide a quantifiable cost reduction to the project in the form of a low- interest loan with repayment of the principal along with interest within a term of 20 years or less from completion of the project.
There is a need for quality affordable housing throughout the City of Hollywood and this project 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, 2026.
Funding for the loan is available in the FY 2026 Operating Budget in account number 116.160502.51900.592293.001247.000.000.
Recommended for inclusion on the agenda by:
Ryon Coote, Manager, Community Development Division
Raelin Storey, Assistant City Manager