Subject:
Title
Payment request related to the Lealman Community Redevelopment Area Home Investment Program contract with Habitat for Humanity.
Recommended Action:
Approval and execution by the County Administrator of the payment request related to the Lealman Community Redevelopment Area (CRA) Home Investment Program (HIP) contract. This grant program is included on the Fiscal Year 2024 Lealman Work Plan approved by the Board of County Commissioners sitting as the Community Redevelopment Agency (Agency) during their regular meeting on September 19, 2023. A copy of the Work Plan is attached to this item.
• The HIP allows for the construction of single-family homes for residents earning less than 120% of Area Median Income. Habitat for Humanity can receive up to $55,000.00 in subsidy through various fees described in the Agreement for each new single-family home built to offset land acquisition and hard construction costs.
• There are ten properties eligible for funding in this request.
• The ten properties located at 4310 45th Ave N., Lealman, FL 33714; 4330 45th Ave N, Lealman, FL 33714; 4339 45th Ave N, Lealman, FL 33714; 4349 45th Ave, Lealman, FL 33714; 4516 43rd St N, Lealman, FL 33714; 4532 43rd St N, Lealman, FL 33714; 4548 43rd St N, Lealman, FL 33714; 4564 43rd St. N, Lealman, FL 33714; 4580 43rd St N, Lealman, FL 33714; and 4596 43rd St N, Lealman, FL 33714 were conveyed to Habitat by the County, making them eligible only for the offset of Hard Cost Construction costs of $15,000.00 per property.
• The total payment request for all ten properties is $150,000.00.
• Habitat leased both properties through the Master Ground Lease Agreement between the Housing Finance Authority of Pinellas County as Trustee of Greenway Land Trust and are eligible for this off-set payment through the Services Agreement entered into with Pinellas County, Exhibit A, Section 2d (for any properties located within the CRA Boundary).
• Per the terms of the Services Agreement, Habitat is eligible to receive the applicable fee(s) once the homes are constructed and the homeowners close on the homes. The Agency approved the Agreement on March 8, 2022, with a total value of $1,500,000.00 over three years, with a $500,000.00 annual cap each year.
• Approval of the payment request will reduce the Lealman Redevelopment Area Trust Fund balance by $150,000.00 for the Countywide portion of the TIF.
• Funding for this payment request is included in the current-year budget of the Lealman CRA in the Lealman CRA Trust Fund.
Strategic Plan:
Ensure Public Health Safety and Welfare
2.2 Be a facilitator, convener, and purchaser of services for those in need.
Foster Continual Economic Growth and Vitality
4.2 Invest in communities that need the most
Deliver First Class Services to the Public and Our Customers
5.3 Ensure effective and efficient delivery of county services and support
Summary:
The HIP is intended to support infill housing in the CRA to encourage new construction reinvestment in existing neighborhoods and promote homeownership. The term of Habitat’s contract is 3 years with a maximum funding level of $500,000 per year for a total not to exceed of $1.5 million over the duration of the contract. Habitat will be incentivized to construct new, affordable single-family homes through three different fees: a Hard Construction Cost Fee (HCCF) of $ 15,000 to off-set hard construction costs associated with each single-family home developed, a Lien Land Acquisition Fee (LLAF) of up to $40,000.00 or the appraised value, whichever is less, to off-set land acquisition costs of properties identified that are heavily liened and significantly blighted, abandoned or vacant, and a Land Acquisition Fee (LAF) of up to $25,000.00 or the appraised value, whichever is less, to off-set land acquisition costs for non-liened properties located within the CRA. Habitat will be conveyed five county owned parcels that were included in the Letter of Interest process. For these five properties Habitat will only be eligible for the HCCF. For parcels acquired through its own means Habitat will be eligible for the HCCF and the LLAF or the LAF, depending on the lien status of the property acquired. Habitat would be able to access up to $1,500,000.00 over the three-year term of this Agreement and staff forecasts this funding would result in approximately 35 new single-family homes sold to residents earning less than 120% of AMI depending on the number of liened and non-liened parcels redeveloped.
Background/Explanation:
This grant program is included on the FY24 Lealman Work Plan, approved by the Board of County Commissioners sitting as the Community Redevelopment Agency during their regular meeting on September 19, 2023.The HIP is intended to support infill housing in the CRA to encourage new construction reinvestment in existing neighborhoods and promote homeownership. The term of Habitat’s contract is 3 years with a maximum funding level of $500,000.00 per year for a total not to exceed of $1.5 million over the duration of the contract. Habitat will be incentivized to construct new, affordable single-family homes through three different fees: a Hard Construction Cost Fee (HCCF) of $ 15,000.00 to off-set hard construction costs associated with each single-family home developed, a Lien Land Acquisition Fee (LLAF) of up to $40,000.00 or the appraised value, whichever is less, to off-set land acquisition costs of properties identified that are heavily liened and significantly blighted, abandoned or vacant, and a Land Acquisition Fee (LAF) of up to $25,000.00 or the appraised value, whichever is less, to off-set land acquisition costs for non-liened properties located within the CRA. Habitat will be conveyed five county owned parcels that were included in the Letter of Interest process. For these five properties Habitat will only be eligible for the HCCF. For parcels acquired through its own means Habitat will be eligible for the HCCF and the LLAF or the LAF, depending on the lien status of the property acquired. Habitat would be able to access up to $1,500,000.00 over the three-year term of this Agreement and staff forecasts this funding would result in approximately 35 new single-family homes sold to residents earning less than 120% of AMI depending on the number of liened and non-liened parcels redeveloped.
Fiscal Impact:
Approval of the payment request would reduce the Lealman Redevelopment Area Trust Fund balance by $150,000.00 for the Countywide portion of the TIF. Funding for this payment request is included in the current-year budget of the Lealman CRA in the Lealman CRA Trust Fund.
Delegated Authority:
Authority for the County Administrator to sign these Grant Agreements is granted via the Agency’s approval of the FY24 Lealman Work Plan.
Staff Member Responsible:
Felix D. Nunez, CRA Coordinator, Lealman Community
Partners:
Lealman CRA Advisory Committee
Lealman residents, businesses, stakeholders, and community partners