Subject:
Title
Affordable Housing Funding Agreements with Largo 126 Apartments, Ltd. for Olea on 126 Apartments.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of an Agency Agreement, Land Use Restriction Agreement (LURA), and Subordination Agreements with Largo 126 Apartments, Ltd. for an affordable housing new construction project known as Olea on 126 Apartments.
• The new construction project, located at 6727 126th Avenue North, Largo, FL will include 144 multi-family rental housing units. All 144 units will be restricted as follows: (36) units for 40.0% Area Median Income (AMI) or below, (72) units for 60.0% AMI or below, and (36) units for 80.0% AMI or below.
• The project was approved by the Board of County Commissioners (Board) on January 28, 2025 (Granicus Item #24-2167A), for up to $7,920,000.00 of Penny IV funding for the construction of the affordable housing project.
• The LURA associated with the project will restrict (144) units for a 30-year affordability period.
• The total development cost is estimated to be $54,578,440.00. Other sources of funding include Tax Credit Equity ($22,176,880.00), Permanent Debt Financing ($14,500,000.00), Deferred Developer Fee ($5,676,416.00), Cash Reinvestments ($3,912,600.00) and City of Largo ($392,544.00).
• Authority for the County Administrator to sign the Agency Agreement, Land Use Restriction Agreement, and Subordination Agreements are granted by Board action on January 28, 2025, agenda item #24-2167A.
• Funding for this project is included in the FY26-FY31 Capital Improvement Program under Penny IV Affordable Housing Program (project 004150A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for housing specifically.
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Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing
Summary:
Approval and execution of the Agency Agreement, LURA, and Subordination Agreements with Largo 126 Apartments, Ltd. will provide funding for Olea on 126 Apartments, a new construction project consisting of 144-units of affordable housing located at 6727 126th Ave. N., Largo, Florida. The units will be restricted for households as follows: (36) units for 40.0% Area Median Income (AMI) or below, (72) units for 60.0% AMI or below, and (36) units for 80.0% AMI or below.
Background/Explanation:
On January 28, 2025, in Granicus Item #24-2167A, the Board approved funding for the Olea on 126 Apartments new construction project. The County will use Penny IV Program funds to provide $7,920,000.00 in support for construction cost reimbursement. The LURA associated with this project will impose a 30-year affordability period for (144) assisted units.
Fiscal Impact:
The total requested County contribution for this project is $7,920,000.00. Including this item, the total amount of Penny IV funds committed is $80,626,746.00 out of the $99,830,852.00 currently estimated in all ten years of Penny IV.
Funding for this project is included in the FY26-FY31 Capital Improvement Program under Penny IV Affordable Housing Program (project 004150A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for housing specifically.
The Penny IV Affordable Housing Program (project 004150A) has a FY26 Budget of $13,271,000.00. FY26 Expenditures are estimated at $18,555,028.00. Additional funds are anticipated through the Carry-forward amendment, contingent on approval of the Board.
Delegated Authority:
Authority for the County Administrator to sign the Agency Agreement, LURA, and Subordination Agreements are granted by Board action on January 28, 2025, agenda item #24-2167A.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Bruce Bussey, Community Development Manager, Housing and Community Development
Partners:
Housing Finance Authority
Largo 126 Apartments, Ltd
City of Largo
Attachments:
Agency Agreement
Land Use Restriction Agreement
Mortgage and Promissory Note
Subordination Agreement - Freddie Mac
Subordination Agreement - Truist Bank
Reference Granicus Item #24-2167A - Staff Report