Subject:
Title
Subordination Agreement for the Pinellas County Affordable Housing Loan to Blue Pinellas 2, LLC, for the Skyway Lofts 2 Apartments.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of a Subordination Agreement for the Pinellas County Affordable Housing Loan to Blue Pinellas 2, LLC for the Skyway Lofts 2 Apartments.
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 #20-2127A 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 66-unit multi-family affordable rental apartment complex, structured as a forgivable loan.
• County loan documents including a subordination agreement, leasehold mortgage, promissory note, agency agreement, and land use restriction agreement were approved and executed by the County Administrator Granicus file #24-0053D.
• 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 $22,998,407.00, and the County contribution was $1,757,778.57, including closing, appraisal, and legal costs expended in Fiscal Year 2024 (FY24). Other sources of funding included lender financing, HFA, City of St. Petersburg and developer equity.
• The project is located at 3800 34th Street South, St. Petersburg, Florida and construction is complete.
• Including this item, the total amount of Penny IV affordable housing funds committed is $93,564,075.97 out of the $94,090,153.07 currently estimated in all ten years of Penny IV. Body
Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
Summary:
Blue Pinellas 2, LLC was awarded $1,400,000.00 (up to $3,400,000.00, Granicus ID 23-0308A) in construction funding from the County to partially fund the development and construction of the 66-unit multi-family project located at 3800 34th Street South. St. Petersburg, Florida. TD Bank provided construction financing for the project, and the request is to subordinate County funding to the permanent financing with Raymond James Bank as Senior Lender.
Background/Explanation:
The County provided construction funds using Penny IV Program funds for the project. Per the requirements of the documents, 66 units will be restricted to households at or below 80.0% Raymond James Bank, as senior lender, requires that the loan being provided to the development be in first position.
Fiscal Impact:
Including this item, the total amount of Penny IV affordable housing funds committed is $93,564,075.97 out of the $94,090,153.07 currently estimated in all ten years of Penny IV.
Funding for this project is included in the FY26-FY31 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.
The Penny IV Affordable Housing Program (project 004150A) has a FY26 Amended Budget of $31,378,000.00. There is sufficient funding to approve this recommendation. Attached to the Granicus item is a tracking document that shows the FY27-FY32 proposed budget, as well as all expenditure activity, both historical and planned.
Delegated Authority:
Authority for the County Administrator to sign this Subordination Agreement is granted by Granicus Item #20-2127A.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Bruce Bussey, Community Development Manager, Housing and Community Development
Partners:
Housing Finance Authority
City of St. Petersburg
Attachments:
Subordination Agreement
Granicus Reference Item #24-0053D - Staff Report
Granicus Reference Item #20-2127A - January 12, 2021