Subject:
Title
Resolution approving the TEFRA hearing for Multifamily Housing Revenue Bonds by the Housing Finance Authority of Pinellas County to refinance a multifamily residential rental housing project Seminole Square Apartments.
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Recommended Action:
Recommended Action
Adopt a resolution allowing the Housing Finance Authority (HFA) to authorize a public hearing in connection to the refinancing of a multifamily residential rental housing project through the issuance of its Multifamily Housing Revenue Bonds, in a principal amount not to exceed $10.7M for the benefit of Seminole Square Partners, LLC, a Florida Limited Liability Company, or its affiliate, duly organized and existing under the laws of the State of Florida.
• The conduit financing transaction proceeds were loaned to Seminole Square Partners, LLC (the borrower/developer) to help finance the acquisition, construction, and equipping of a 96-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser income known as Seminole Square Apartments, located at 2005 Seminole Boulevard, Largo, Florida.
• All lendable funds are generated from the sale of tax-exempt housing bonds through the Housing Finance Authority and the sale of 4.0% low-income housing tax credits from the Florida Housing Finance Corporation. The other sources of funding for the project included SHIP funding from the City of Largo, Penny for Pinellas funds (both Land Assembly and Workforce Housing) from the County, and the St. Petersburg Housing Authority has allocated 45 Project-Based Section 8 Vouchers to the development.
• This item has no fiscal impact on the County. The HFA is a dependent special district of the County. Conduit financings pledge neither the district 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).Body
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Strategic Plan:
Ensure Public Health, Safety and Welfare
2.2 Be a facilitator, convener, and purchaser of services for those in need
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
Summary:
Summary
Seminole Square is a garden-style apartment complex and provides high quality affordable and workforce housing. The development consists of 48 one (1)-bedroom units and 48 two (2)-bedroom units. This development is complete with high quality features and finishes such as solid surface floorings through the units, granite countertops, energy efficient appliances and bathroom fixtures, window coverings and adequate parking. All of the units have been developed with the same high-quality standard regardless of the income level of the resident occupying the unit. The development obtained NGBS Green Building Certification and has met all City and County code requirements. Seminole Square Apartments includes in-unit washer and dryer hook-ups, a multi-purpose community room for resident programs, activities, and catering, as well as a library and tech lab.
A certificate of occupancy was obtained in May 2024 for all buildings. Seminole Square is currently fully occupied. Project-Based Section 8 Units were provided to the development from the St. Petersburg Housing Authority’s waiting list and the remaining 51 units were leased to the general public.
The Authority issued $17.8M of tax-exempt bonds which were directly purchased by a national lending institution and provided $17.8M in construction loan proceeds. The construction loan will be paid down to $10.7M upon stabilization. The higher permanent loan amount has been requested by the developer to ensure DSCR compliance as per the lenders and HUD’s guidelines as well as ensuring Seminole Square meets the deferred developer fee timeline requirements from the tax credit equity investor.
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Background Information:
An original TEFRA was approved for $17.8M on May 4, 2022, and helped finance the acquisition, construction and equipping of a 96-unit new construction multifamily development located at 2075 Seminole Boulevard, Largo, Florida, which now has an address of 2005 Seminole Boulevard, Largo, Florida. The site is approximately 4.791 acres total. The development is 100% affordable and utilizes income averaging where the average income/rent limit in the development is 60.0% or less of AMI. 34 units are set-aside for households at or below 30.0% AMI, 11 units are set-aside for households at or below 60.0% AMI and 51 units are set-aside for households at or below 80.0% AMI. This transaction also included funding from the Penny for Pinellas Land Assembly Funds from the County and the Authority is serving as Trustee of the land trust.
The 2022 TEFRA approval was for the original 2022 Bonds, which were issued. The 2022 Bonds provided that at conversion the Bonds would be paid down to $9.475M At the request of the Borrower and with the consent of the permanent lender (Citibank), the permanent loan amount will be $10.7M. Under the federal tax regulations, this causes a reissuance of the Bonds as it defers the payment of principal beyond five (5) years. A reissuance is treated as a refunding. When you issue refunding bonds, if the refunding bonds have a weighted average maturity date later than the refunded bonds (this is the case when you push principal out), the Code requires that the refunding issues get new TEFRA approval, and you cannot rely on a refunding under the original TEFRA approval.
Fiscal Impact:
No County General Funds are required. All lendable funds are generated from the sale of tax-exempt housing bonds and the sale of 4.0% low-income housing tax credits from the Florida Housing Finance Corporation.
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
Attachments:
Proposed BCC Resolution
HFA Resolution No. 2024-18
TEFRA Notice
Certification of Publication
TEFRA Hearing Minutes