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 Indigo 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 $24.0M for the benefit of SAH Indigo Holdings LP, a Florida Limited Liability 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 SAH Indigo Holdings LP (the borrower/developer) to help finance the acquisition, rehabilitation, and equipping of an existing 208-unit, high-rise multifamily rental housing facility for persons or families of moderate, middle, or lesser income to be known as the Indigo Apartments (Project). The Project, formerly known as Prospect Tower, is located at 801 Chestnut Street in Clearwater, Florida.
• The property currently has 20 units that are covered under an existing HOME agreement and has additionally been awarded a 52-unit Project-Based Voucher contract with the Clearwater Housing Authority. Rents will be restricted at 30.0%, 60.0%, and 80.0% Area Median Income levels for an affordability period of 50 years, enforced by a land use restriction agreement.
• 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 the Pinellas County Penny for Pinellas County Land Trust Funds; Low Income Housing Tax Credit equity; Pinellas County Penny for Pinellas funds; Clearwater CRA Department funds; Clearwater Housing Department funds, and permanent loan financing through the FHA 221(d)(4) loan program through Berkadia and owner equity from the developer through a deferred developer fee at closing to provide additional sources of funding.
• This item has no fiscal impact on the 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:
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Summary:
Summary
The transaction proceeds will be loaned to SAH Indigo Holdings LP, (the borrower/developer) to help finance the acquisition, rehabilitation and equipping of a 208-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser income to be known as the Indigo Apartments.
The Project, formerly known as Prospect Tower, is located at 801 Chestnut Street in Clearwater, Florida.
The rehabilitated development will consist of 96 studio units (336 sq. ft.-411 sq. ft.) and 112 one (1)-bedroom units (530 sq. ft.). The Sponsor’s planned rehabilitation of units includes: one (1) substantial upgrade to the existing 20 HOME units, focused on long-term preservation and quality of life improvement; two (2) energy-efficient improvements across all units, including low-flow bathroom appliances and LED lighting; and three (3) establishment of 11 ADA-compliant units and four (4) Home Ventilating Institute (HVI)- certified units.
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Background Information:
Sunrise Affordable Housing Group (the Sponsor) is currently under contract to acquire the property, complete a substantial rehabilitation, and preserve the Project as affordable housing.
The Developer is requesting $24.0M of tax-exempt bonds, to be issued as cash-collateralized obligations. The bonds will support a permanent mortgage loan of $17.630M from Berkadia, insured by HUD under the Section 221(d)(4) program. Additional financing will include $15,723,600.00 of LIHTC equity, $4.0M of Pinellas County Land Trust funds, $3,189,082.00 of deferred developer fee, $3.0M of Pinellas County Penny for Pinellas funds, $2.0M of Clearwater CRA Department funds, and $1.0M of Clearwater Housing Department funds.
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 the Pinellas County Penny for Pinellas County Land Trust Funds; LITHTC equity; Pinellas County Penny for Pinellas funds; Clearwater CRA Department funds; Clearwater Housing Department funds, and permanent loan financing through the FHA 221(d)(4) loan program through Berkadia and owner equity from the developer through a deferred developer fee at closing to provide additional sources of funding.
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
SAH Indigo Holdings LP
Sunrise Affordable Housing Group
Attachments:
Proposed Resolution
HFA Resolution No. 2024-12
Certification of Publication
HFA TEFRA Hearing Notice, October 24, 2024
HFA TEFRA Hearing Minutes, November 1, 2024