Subject:
Title
Resolution approving the issuance of Multifamily Housing Revenue Bonds by the Housing Finance Authority of Pinellas County to finance the acquisition and rehabilitation of Palmetto Park Apartments.
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Recommended Action:
Recommended Action
Adopt a resolution approving the issuance of Multifamily Housing Revenue Bonds by the Housing Finance Authority (HFA) of Pinellas County in a principal amount not to exceed $14.25M for the benefit of Palmetto Preservation, Ltd, a Florida Limited Partnership.
• The project includes the acquisition, rehabilitation and equipping by a private owner of Palmetto Park Apartments (formerly known as Greenwood Apartments). A 179 - unit family rental housing complex located at 1003 West Avenue, Clearwater, Florida.
• The 179 existing family units are one, two, and three bedroom apartments; 16 units will be set-aside for households at or below 30.0% AMI, 144 units will be set-aside for households at or below 60.0% AMI and 19 units will be set-aside for households at or below 80.0% AMI.
• The transaction will feature a full site renovation of approximately $41,500 per unit. This renovation will include HVAC replacement and enhancement for higher efficiency, better climate, and moisture management, building exterior, building interior and individual unit work.
• The total project cost estimated is $26M.
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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
The project includes the acquisition, rehabilitation and equipping by a private owner of a low to moderate income, 179-unit housing project to be known as Palmetto Park Apartments (formerly known as Greenwood Apartments).
The 179 existing family units are one (1), two (2), and three (3) bedroom apartments in a housing complex. 16 units will be set-aside for households at or below 30.0% AMI, 144 units will be set-aside for households at or below 60.0% AMI and 19 units will be set-aside for households at or below 80.0% AMI.
The transaction will feature a full site renovation of approximately $41,500 per unit. This renovation will include HVAC replacement and enhancement for higher efficiency, better climate and moisture management, building exterior, building interior and individual unit work.
The transaction will be financed with various sources including, but not limited to, a construction-to-permanent tax-exempt bond loan; Low Income Housing Tax Credit (LIHTC) syndication proceeds, a Seller’s note, and outstanding loans from City of Clearwater, the County and HFA that are currently being requested to be subordinated in the new transaction. It is expected that the Developer will defer a portion of their developer fee to provide additional sources of funding.
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Background Information:
N/A
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 .04% low income housing tax credits from the Florida Housing Finance Corporation.
On August 25, 2005 Pinellas County provided HOME funds in the amount of $900,000.00 for the acquisition and renovation of the property. Loan payment was deferred until September 1, 2020. County loan terms were modified in 2012 to defer payment until 2045. The applicant has submitted a request to resubordinate and extend the term of the County loan. The request is under review by County staff.
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
Attachments:
Proposed Resolution 2021- 01
HFA Resolution and Memorandum of Agreement
TEFRA Notice and Certification of Publication
HFA TEFRA Hearing Meeting Minutes, March 22, 2021
HallKeen Request Letter for County Loan Extension and Subordination