Subject:
Title
Resolution approving the issuance by the Housing Finance Authority of Pinellas County of its Multifamily Housing Revenue Bonds to finance a multifamily residential rental housing project.
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Recommended Action:
Recommended Action
Adopt the proposed resolution allowing the Housing Finance Authority (HFA) to issue Multifamily Housing Revenue Bonds in a principal amount not to exceed $9,500,000.00 for the benefit of SP Pinellas I LLC, a Florida Limited Liability company, a Florida limited liability company, or one of its affiliates, duly organized and existing under the laws of the State of Florida.
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Strategic Plan:
Ensure Public Health, Safety and Welfare
2.2 Be a facilitator, convener and purchaser of services for those in need
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
Summary:
Adoption of the Resolution will permit a transaction to be financed with HFA issued tax-exempt private activity revenue bond proceeds, along with various other sources. The estimated total development cost is anticipated to be $16,439,000. Up to $9,500,000 will be financed with proceeds of the Authority’s Tax-Exempt Bonds which will include a construction loan period with a conversion to a permanent long term debt financing upon construction completion and stabilization. A sum of $75,000 is proposed to be financed by Pinellas County and approximately $5,849,000 will come from the sale of 4% low income housing tax credits from the Florida Housing Finance Corporation. SP Pinellas I LLC has also applied for funds under the Penny for Pinellas Land Assembly Fund. It is expected that the Developer will defer a portion of their developer fee to provide additional sources of funding as well. The financing will allow the Developer to construct an 82-unit new construction affordable housing community that will target the family demographic in the City of Pinellas Park (Property).
Background Information:
The Property will offer 1 BR, 2BR and 3BR units configured in one mid-rise, 4 story building with 100% of the units rented as affordable housing (and the Developer will commit to do so for the next 50 years). 90% of the units will be rented to households with incomes at or below 60% of the Area Median Income for Pinellas County with the remaining 10% of the units to be set-aside for households with incomes at or below 40% of the Area Median Income for Pinellas County.
The Developer, Southport, is a highly experienced developer of affordable housing units in numerous states with a primary emphasis in Florida. Through its principals, Southport owns and has developed over 180 developments of this type around the country comprising over 18,000 units.
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% low income housing tax credits from the Florida Housing Finance Corporation.
The Developer has made application for the Penny for Pinellas Affordable Housing Land Assembly Fund (LAF) to acquire the property.
Staff Member Responsible:
Kathryn Driver, Executive Director, Housing Finance Authority of Pinellas County
Partners:
Housing Finance Authority of Pinellas County
Attachments:
Proposed Resolution
Resolution 2018-10