Subject:
Title
Resolution approving the TEFRA hearing for Multifamily Housing Revenue Bonds by the Housing Finance Authority of Pinellas County to finance a multifamily residential rental housing project Skye Isle Apartments.
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Recommended Action:
Recommended Action
Adopt a resolution allowing the Housing Finance Authority of Pinellas County (HFA) to authorize a public hearing in connection to the financing of a multifamily residential rental housing project through the issuance of its Multifamily Housing Revenue Bonds, in a principal amount not to exceed $27.0M for the benefit of Preservation 518, Ltd., A Florida limited 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 Preservation 518 Ltd., (the borrower/developer) to help finance the acquisition, rehabilitation and equipping of an 188-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser income to be known as Skye Isle Apartments (Project). The Project, formerly known as Viridian, is located at 518 3rd Avenue South, St. Petersburg, FL.
• The property currently has 133 units that are covered under a project-based voucher contract with the St. Petersburg Housing Authority. Rents for the united will be restricted to households at or below 60.0% Area Median Income levels for an affordability period of 50 years, enforced by a land use restriction agreement.
• No County General Funds are required. All lendable funds are generated from the sale of tax-exempt bonds through the HFA and the sale of 4.0% low-income housing tax credits from the Florida Housing Finance Corporation (FHFC). The other sources of funding for the Project include deferred developer fee, Savings and Installment Loan (SAIL) funds from FHFC, a seller note, supplemental ELI Loan funds from FHFC, contributed funds from the City of St. Petersburg, and a General Partner equity contribution.
• This item has no fiscal impact on the County. The HFA is a dependent special district of Pinellas County. Conduit financings pledge neither the HFA’s nor the County’s credit, and neither are responsible for payment of the debt except from funds received from the borrower.
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Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
Summary:
Summary
The transaction proceeds will help finance the acquisition, rehabilitation and equipping of a 188-unit multifamily rental housing facility for persons or families of moderate, middle, or lesser income within the City of St. Petersburg, Pinellas County, located at 518 3rd Avenue South, St. Petersburg, Florida. The demographic served is seniors.
Skye Isle is an existing 188-unit, high-rise property. Formerly known as Viridian, the property was built in 1971 and renovated with Low Income Housing Tax Credit (LIHTC) equity in 2009 and 2010, following its acquisition by Sage Partners. Skye Isle has reached the end of its 15-year LIHTC compliance period. Of the property’s 188 total units, 133 currently operate with Project-based Section 8 rent subsidies.
The unit mix at the rehabilitated property will consist of 83 studio units (400 sq. ft.) and 105 one (1)-bedroom units (670 sq. ft.). The Developer’s planned rehabilitation of units includes: one (1) new unit interiors; two (2) modernization and preservation of major building infrastructure and systems; three (3) upgrades to existing community amenities; and four (4) upgrades to community safety systems. Following the rehabilitation, all unit rents will be restricted to 60.0% of AMI for an affordability period of 50 years, enforced by a LURA.
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Background Information:
The substantial rehabilitation of Skye Isle will provide much needed improvements to extend the useful life of the Property and to better serve the resident base of seniors. The rehabilitation will not require any off-site resident resolution. The plan is to reduce the occupancy by natural attrition and not relocate any existing residents offsite during the construction process. The rehabilitation will take place on two (2) floors at a time and is expected to be completed within 12 months after commencement. A professional moving company will pack each residents’ belongings and move them into a vacant unit in the building. On the day of the move, the residents will receive a special bag to hold their medicines. A lounge with refreshments will be provided to make the move seamless. Thirty days later, the resident’s unit renovation will be completed. The professional movers will pack, move, and unpack the resident’s belongings. Total rehab costs per unit are estimated to be $134,000.00 per units.
This transaction was previously approved by the BCC through Resolution No. 25-5 on January 14, 2025. The 2025 fiscal reconciliation bill (H.R. 1), signed on July 4, 2025, which repeals and replaces 26 USC 42(h)(4)(B) and added 26 USC 42(h)(4)(C), lowered the 50.0% private activity bond financing threshold test to 25.0% (the “25.0% Test”). This means there is an opportunity to finance more new affordable units and preserve more existing affordable units than ever before because less bond allocation is required to be committed to the financing of a transaction. This necessitated the Developer to reduce the allocation request from $36.75M to $27.0M. In order to issue the Bonds in the decreased principal amount it was necessary to conduct a public hearing and obtain new approval by the Board of County Commissioners (Board) of Pinellas County, Florida.
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.
This item has no fiscal impact on the County. The HFA is a dependent special district of Pinellas County. Conduit financings pledge neither the HFA’s 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).
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
Attachments:
Proposed BCC Resolution
BCC Resolution 25-5
HFA Resolution No. 2026-09
TEFRA Notice
Certification of Publication
TEFRA Hearing Minutes