Subject:
Title
Subordination Agreement for the Pinellas County Affordable Housing Loan to Seminole Square Partners, LLC for the Seminole Square Apartments project.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of a Subordination Agreement for the Pinellas County Affordable Housing Loan to Seminole Square Partners, LLC for the Seminole Square Apartment project.
The County Administrator has been authorized by the Board of County Commissioners (Board) to negotiate terms, conditions, and other funding agreements for the project. Legistar file 20-2127-A the Board delegated authority to the County Administrator to negotiate and execute all contracts, loan documents, leases, restrictive covenants, and any other such agreements and documentation associated with the application approvals in the amounts authorized by the Board or less, and authority to direct the Housing Finance Authority (HFA) to acquire properties utilizing affordable housing land acquisition funding.
• Funding was for the development and construction of a 96-unit multi-family affordable rental apartment complex, structured as a forgivable loan.
• County loan documents including a subordination agreement, mortgage, promissory note, agency agreement, and land use restriction agreement were approved and executed by the County Administrator Granicus file #21-1480D.
• Construction is complete and conversion of construction financing to permanent financing is underway. The permanent debt lender did not provide the construction loan and is requiring a new subordination agreement referencing the permanent loan.
• The total project cost was $31,097,154.00. Other sources of funding included lender financing and developer equity.
• The project is located at 2075 Seminole Blvd. Largo, FL and construction is complete.
• Funding for this project is included in the FY25-FY30 Capital Improvement Program plan under the 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.
Body
Strategic Plan:
Ensure Public Health, Safety, and Welfare
2.4 Support programs that seek to prevent and remedy the causes of homelessness and move individuals and families from homelessness to permanent housing
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
5.1 Maximize partner relationships and public outreach
5.2 Be responsible stewards of the public’s resources
Summary:
Seminole Square, LLC was awarded $3,685.000.00 in construction funding from the County to partially fund the development and construction of the 96-unit multi-family project located at 2075 Seminole Blvd, Largo, Florida. Bank OZ provided construction financing for the project and the request is to subordinate County funding to the permanent financing with CitiBank as Senior Lender.
Background/Explanation:
The County provided construction funds using Penny IV Program funds for the project. Per the requirements of the documents, 96 units will be restricted to households at or below 80.0% CitiBank, as senior lender, requires that the loan being provided to the development be in first position.
Fiscal Impact:
Funding for this project is included in the FY25-FY30 Capital Improvement Program plan under the 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.
Delegated Authority:
Authority for the County Administrator to sign this Subordination Agreement is granted by Granicus Item #20-2127A.
Staff Member Responsible:
Glenn Bailey, Interim Director, Housing and Community Development
Partners:
N/A
Attachments:
Subordination Agreement
Granicus Reference Item #21-1480D - March 8, 2022
Granicus Reference Item #20-2127A - January 12, 2021