Subject:
Title
Resolution approving the issuance of Multifamily Housing Revenue Bonds by the Housing Finance Authority of Pinellas County to finance a multifamily residential rental housing project Skye Isle Apartments.
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Recommended Action:
Recommended Action
Adopt a resolution allowing the Housing Finance Authority (HFA) to issue Multifamily Housing Revenue Bonds in a principal amount not to exceed $36.73M for the benefit of Preservation 518, Ltd., a Florida limited partnership, or its affiliate, duly organized and existing under the laws of the State of Florida.
• The conduit financing transaction proceeds will be loaned to Preservation 518, Ltd., (the borrower/developer) to help finance the acquisition, construction, and equipping of a 188-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser-income to be known as the Skye Isle Apartments (Project). The Project, formerly known as Viridian, is located at 518 3rd Avenue South, St. Petersburg, Florida.
• The property currently has 133 units that are covered under a project-based voucher contract with the St. Petersburg Housing Authority. Rents for the units will be restricted to households at or below 60.0% of Area Median Income levels for an affordability period of 50 years, enforced by a land use restriction agreement.
• 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. The other sources of funding for the project include a deferred developer fee, State Apartment Incentive Loan loan funds, a seller note, supplemental Extremely Low-Income loan funds, contributed funds from the City of St. Petersburg, and a General Partner Equity contribution.
• This item has no fiscal impact on Pinellas 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
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Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
Summary:
Summary
The transaction proceeds will help finance the acquisition, rehabilitation and equipping of a 188-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser income within the City of St. Petersburg, Pinellas County, located at 518 3rd Avenue South, St. Petersburg, Florida. The demographic served is seniors.
The Project is an existing 188-unit, high-rise property. Formerly known as Viridian, the property was built in 1971 and renovated with Low Income Housing Tax Credit (LIHTC) equity in 2009 and 2010, following its acquisition by Sage Partners. Skye Isle has reached the end of its 15-year LIHTC compliance period. Of the property’s 188 total units, 133 currently operate with Project-Based Section 8 rent subsidies.
The unit mix at the rehabilitated property will consist of 83 studio units (400 sq. ft.) and 105 one-bedroom units (670 sq. ft.). The Developer’s planned rehabilitation of units includes: (1) new unit interiors; (2) modernization and preservation of major building infrastructure and systems; (3) upgrades to existing community amenities; and (4) upgrades to community safety systems. Following the rehabilitation, all unit rents will be restricted to 60.0% of AMI for an affordability period of 50 years, enforced by a land use restriction agreement.
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Background Information:
The Developer is requesting $36.73M of tax-exempt bonds to assist with the Project. Additional financing will include $27,723,772.00 of LIHTC equity, $6,285,102.00 of deferred developer fee, $4.32M of SAIL loan funds, a $4.0M seller note, $1.615M of supplemental ELI Loan funds, $1,508,571.00 of contributed funds from the City of St. Petersburg and a $100 GP Equity contribution. The new ownership entity will assume the following existing debt: $4.32M SAIL Loan, $1.615M supplemental ELI Loan, $1,508,571.00 City of St. Petersburg loan. In the event mortgage paydown is required prior to assumption, a $4.0M seller note will be available as a construction and permanent funding source.
The substantial rehabilitation of Skye Isle will provide much needed improvements to the extend the useful life of the property and to better serve the resident base of seniors. The substantial rehabilitation will include new unit interiors (cabinetry, fixtures, flooring, appliances), modernization and preservation of major building infrastructure and systems, (elevators, chiller, boiler, replace roof, replace windows), upgrades to existing community amenities, and upgrades to community safety systems.
The rehabilitation will not require any off-site resident relocation. The plan is to reduce the occupancy by natural attrition, and not relocate any existing residents offsite during the construction process. The rehabilitation will take place two floors at a time and is expected to be completed within 12 months, commencing May 2025. A professional moving company will pack each residents’ belongings and move them into a vacant unit in the building. On the day of the move, the residents will receive a special bag to hold their medicines. A lounge with refreshments will be provided to make the move seamless. Thirty days later, the resident’s unit renovation will be completed. The professional movers will pack, move, and unpack the resident’s belongings. Total rehab costs per unit are estimated to be $134K per unit.
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.
The other sources of funding for the project include a deferred developer fee, SAIL loan funds, a seller note, supplemental ELI loan funds, contributed funds from the City of St. Petersburg, and a GP Equity contribution.
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
Preservation 518, Ltd.
Attachments:
Proposed BCC Resolution
HFA Resolution No. 2024-15
TEFRA Notice
Certification of Publication
TEFRA Hearing Minutes