Subject:
Title
Estoppel Certificate and Subordination Agreement for the Pinellas County Affordable Housing Loan to SPGRP IV, LLC.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of an Estoppel Certificate and a Subordination Agreement for SPGRP IV, LLC for the Pinellas County Affordable Housing Loan for Bayou Court Apartments.
• Bayou Court Apartments was awarded $2.8M in Penny for Pinellas funding from the County to partially fund construction costs. A land use restriction agreement (LURA), agency agreement, mortgage and promissory note, and a subordination agreement were approved and executed by the County Administrator, Granicus file #24-0201D.
• An Estoppel Certificate and the Subordination Agreement are needed for the refinancing of Bayou Court Apartments with Valley National Bank.
• The project, located at 4201 6th Street South, St. Petersburg, Florida 33705, is a (60) unit new construction, multifamily residential property that restricts (12) units for households earning 50.0% of Area Median Income (AMI) or below, nine (9) units for 80.0% AMI or below, and (39) units for 120.0% AMI or below.
• This item has no fiscal impact on Pinellas County. The Pinellas County Housing Authority (HFA) is a dependent special district of Pinellas County. Conduit financings pledge neither the HFA’s nor the County’s credit, and neither are responsible for payment of the debt except from funds received from the borrower (in this case the developer).
• Authority for the County Administrator to sign the Estoppel Certificate and Subordination Agreement is granted by Granicus Item #24-0201D.
Body
Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
Summary:
SPGRP IV, LLC applied for $2.8M of affordable housing funding for new construction costs for a multifamily residential property. The units are restricted as follows: (12) units for households earning 50.0% of AMI or below, nine (9) units for 80.0% AMI or below, and (39) units for 120.0% AMI or below. The property is located at 4201 6th Street South, St. Petersburg, Florida 33705. Penny IV funds were approved for the project. The LURA associated with the project imposes a 30-year affordability period.
Background/Explanation:
In Granicus file #24-0201D, a land use restriction agreement (LURA), agency agreement, mortgage and promissory note, and a subordination agreement were approved and executed by the County Administrator. The County provided $2.8M in Penny IV Program funds. The original subordination agreement is being revised.
Fiscal Impact:
This item has no fiscal impact on Pinellas County. The Pinellas County Housing Authority (HFA) is a dependent special district of Pinellas County. Conduit financings pledge neither the HFA’s nor the County’s credit, and neither are responsible for payment of the debt except from funds received from the borrower (in this case the developer).
Delegated Authority:
Authority for the County Administrator to sign the Estoppel Certificate and the Subordination Agreement is granted by Granicus Item #24-0201D.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Bruce Bussey, Community Development Manager
Partners:
SPGRP IV, LLC
City of St. Petersburg
Attachments:
Estoppel Certificate - Valley National Bank
Subordination Agreement - Valley National Bank
Granicus Reference Item #24-0201D - Staff Report