Subject:
Title
Affordable Housing Program project funding recommendation for Olea on 126 by Lincoln Avenue Communities.
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Recommended Action:
Recommended Action
Recommend approval of affordable housing funding for the Olea on 126 projects by Lincoln Avenue Communities. 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.
• The funding recommendation for Olea on 126 by Lincoln Avenue Communities is $7,920,000.00 of Penny funding for construction costs of workforce housing.
• Olea on 126 is a new construction project of 144 multi-family affordable apartment units located at 6727 126th Avenue North in Largo that will serve households as follows: (36) units set-aside for 40% of area median income (AMI) or below, (72) units for 60% AMI or below, and (36) units for 80% AMI or below.
• The Land Use Restriction Agreement associated with the construction funding will ensure a 30-year affordability period.
• The total development cost is estimated to be $54,578,440.00. Other sources of funding include Permanent Debt Financing ($14,500,000.00), Tax Credit Equity ($22,176,880.00), Cash Reinvestments ($3,912,600.00), Deferred Developer Fee ($5,676,416.00), and the City of Largo Fee Waiver ($392,544.00).
• The development will not be eligible for the annual Multifamily Property Tax Exemption as the units will be subject to an agreement with the Florida Housing Finance Corporation.
• Next steps: County staff will complete additional due diligence activities.
• The total funding request for this project is $7,920,000.00. Funding for this project is included in the Fiscal Year 2025-2030 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. Approval of the project funding recommendation will increase the total amount of Penny IV affordable housing funds committed to $78,470,000.00.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
Lincoln Avenue Communities has applied for $7,920,000.00 of affordable housing funding assistance for the Olea on 126 project for construction costs. Staff is recommending funding assistance up to $7,920,000.00.
Olea on 126 is a 144-unit new construction family development that will serve (36) households below 40% AMI, (72) households below 60% AMI, and (36) households below 80% AMI. It will consist of (80) two-bedroom, (32) three-bedroom and (32) four-bedroom units. The Land Use Restriction Agreement (LURA) associated with the construction funding will ensure a 30-year affordability period. The project site is located at 6727 126th Ave. N in Largo, FL.
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Background Information:
County Housing and Community Development staff have evaluated and scored the project application and found it to be eligible for funding assistance.
The primary funding source for the project is Tax Credit Equity of $22,176,880.00. In addition, the developer is providing $14,500,000.00 in Permanent Debt Financing, $3,912,600.00 in Cash Reinvestments, $5,676,416.00 Deferred Developer Fee and the City of Largo is contributing $392,544.00 in the form of a Fee Waiver. The $7,920,000.00 of County funds will be utilized for construction costs to address the needs of workforce housing.
Fiscal Impact:
The total funding request for this project is $7,920,000.00. 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
Staff Member Responsible:
Glenn Bailey, Interim Director, Housing and Community Development
Partners:
Housing Finance Authority
Lincoln Avenue Communities
City of Largo
Attachments:
Olea on 126 Project Summary Sheet