Subject:
Title
Affordable Housing Program project funding recommendation for Cypress Grove Apartments by Archway Partners.
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Recommended Action:
Recommended Action
Recommend approval of affordable housing funding for Cypress Grove Apartments by Archway Partners.
It is further recommended that the County Administrator be authorized to negotiate and approve terms, conditions, and the final funding amount not to exceed the Board of County Commissioners approved amount.
• Cypress Grove Apartments is a new construction project located at 555 16th Avenue Southeast in Largo that will consist of 84 multi-family workforce units that will serve households earning at or below 80.0% of Area Median Income (AMI). 4 units will be set-aside for 50.0% AMI or below, 41 units will be set-aside for 60.0% AMI or below, and 39 workforce units will serve households at 80.0% AMI or below.
• The requested County portion of this project is $5,040,000.00 for construction costs. The recommended sources of funding are the Federal HOME Grant ($3.3M) and Penny for Pinellas ($1,740,000.00).
• The recommended amount of $5,040,000.00 for construction will be utilized to offset the reduction of the rents to serve 100% of the households at an affordable rent for 30 years.
• The total development cost is estimated to be $31,785,259.00. Other sources of funding include Tax Credit Equity ($21,673,713.00), Pinellas County Housing Authority ($2,250,000.00), City of Largo HOME ($1,250,000.00), and Owner Equity ($1,571,546.00).
• Approval of the project funding recommendation will increase the total amount of Penny IV affordable housing funds committed to $37.7M. The total amount of projected program funding is $98.0M for the 10-year levy of Penny IV.Body
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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:
Summary
Archway Partners has applied for $5,040,000.00 of affordable housing funding assistance for the Cypress Grove Apartments project for capital improvement construction costs. The 84-unit development will serve households earning at or below 80.0% of Area Median Income (AMI). Four (4) units will be set-aside for 50.0% AMI or below, (41) units will be set-aside for 60.0% AMI or below, and (39) workforce units will serve households at 80.0% AMI or below. Staff is recommending funding assistance up to $5,040,000.00 (HOME $3.3M and PENNY $1.74M) that will allow the rents to be reduced to an affordable level over the next 30 years. The development will be located at 555 16th Ave SE, Largo, FL 33771.
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Background Information:
Housing and Community Development staff have evaluated and reviewed the project application and found it to be eligible for funding assistance.
The primary funding source for the project is the Tax Credit Equity of $21,673,713. In addition, the Pinellas County Housing Authority has committed $2,250,000.00, the City of Largo has committed of $1.25M in HOME funding, and the Developer has deferred a portion of their Developer Fee in the amount of $1,571,546.00 to close the funding gap. The $5,040,000.00 of County funds will be utilized for capital improvement construction costs.
A Greywater density bonus and an affordable housing density bonus approved by the City of Largo enable an additional 39 units to be constructed.
Fiscal Impact:
Funding for this project is included in the current-year budget and FY25 proposed budget of the Housing and Community Development Department in the Community Development Grant Fund, as well as the FY24-FY29 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.
Staff Member Responsible:
Glenn Bailey, Interim Director, Housing and Community Development
Partners:
City of Largo
Pinellas County Housing Authority
Housing Finance Authority of Pinellas County
Attachments:
Project Summary Sheet including a Location Map