Subject:
Title
Affordable Housing Program project funding recommendation for Azalea Gateway by Azalea Gateway, LLC.
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Recommended Action:
Recommended Action
Recommend approval of affordable housing funding for the Azalea Gateway project by Azalea Gateway, LLC.
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 Azalea Gateway by Azalea Gateway, LLC is $5,250,000.00 for construction costs for workforce housing.
• Azalea Gateway will be a three-phased new construction project. Phase 1 will consist of 340 multi-family affordable apartment units located at 1501 72nd Street North in St. Petersburg.
• Azalea Gateway will serve households as follows: (51) units are set-aside for 80% AMI or below, (51) units are for 120% AMI or below, and (238) units are for unrestricted Market Rate.
• The Land Use Restriction Agreement associated with the construction funding will ensure a 30-year affordability period on (102) units.
• The total development cost is estimated to be $109,828,489.00. Other sources of funding include Sponsor and Limited Partner Equity ($32,223,777.00), Permanent Debt Financing ($65,897,093.00), City of St. Petersburg ($6,000,000.00) and a Sales Tax Rebate ($457,619.00).
• The development will be eligible for the annual Multifamily Property Tax Exemption; (51) units will be eligible for 100%, and an additional (51) units will be eligible for 75%.
• Next steps: County staff will complete additional due diligence activities including, but not limited to, property appraisals, title searches, loan underwriting, and financial analysis. Funding agreements, leases, loan documents, and affordability restrictions will be prepared, negotiated, and executed.
• Approval of the project funding recommendation will increase the total amount of Penny IV affordable housing funds committed to $65.05M.
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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
Azalea Gateway, LLC has applied for $6,000,000.00 of affordable housing funding assistance for the Azalea Gateway project for construction costs. Staff is recommending funding assistance up to $5,250,000.00.
Azalea Gateway is a new construction project that will be completed in three phases and once fully built, will total 1,000 units; 30% of which will be affordable (15% serving households below 80% AMI, and 15% serving households below 120% AMI). This request is for Phase 1, a total of 340-units of one, two and three-bedroom units for the following households: (51) units serving households below 80% AMI, (51) units serving households below 120% AMI and (238) units serving Market Rate households. The Land Use Restriction Agreement (LURA) associated with the construction funding will ensure a 50-year affordability period on (102) units The project site is located at 1501 72nd St. N., in St. Petersburg, 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 lender financing of $65,897,093.00. In addition, the developer is providing $32,223,777.00 in Sponsor and Limited Partner Equity and is applying a Sales Tax Rebate in the amount of $457,619.00, and the City of St. Petersburg is contributing $6,000,000.00. The $5,250,000.00 of County funds will be utilized for construction costs to address the needs of workforce housing.
Fiscal Impact:
The funding request for this project is $5,250,000.00. 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.
Staff Member Responsible:
Glenn Bailey, Interim Director, Housing and Community Development
Partners:
Azalea Gateway, LLC
City of St. Petersburg
Attachments:
Azalea Gateway Project Summary Sheet