Subject:
Title
Affordable Housing Funding Agreements with Heritage Oaks, LLLP for affordable rental housing - Heritage Oaks.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of an Agency Agreement, Mortgage, Promissory Note, and Land Use Restriction Agreement with Heritage Oaks, LLLP for an affordable housing project known Heritage Oaks.
• Heritage Oaks Apartments is the first phase of redevelopment of the Rainbow Village public housing complex located in the Greater Ridgecrest Area. The project includes construction of 80 affordable rental units.
• Project funding was approved by the Board of County Commissioners (Board) on May 9, 2023 (Granicus Item #23-0579A), for $3.36M of grant funding from the following sources: Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and State Housing Initiatives Partnership (SHIP).
• This funding is consistent with the Fiscal Year 2024 (FY24) Budget Development and is included in FY24 Requested Budget for Housing and Community Development Department within the respective Federal and State Funds.
• All 80 units will be restricted to households earning 60.0% of Area Median Income (AMI) or less for a 50-year affordability period by the Housing Tax Credits requirements.
• The CDBG, HOME, and SHIP grant requirements will be enforced by the County land use restriction agreement: CDBG 41 units under 80.0% AMI for 20 years; HOME 7 units under 60.0% AMI and 2 units under 50.0% AMI for 20 years; SHIP two (2) units under 80.0% AMI and two (2) units under 50.0% AMI for 30 years.
• The total development cost is estimated to be $31,254,552.00 with the balance of the funding coming from 9.0% Tax Credit Equity, Pinellas County Housing Authority and Deferred Developer Fee.
• The project is located at 12455 130th Avenue North, Largo, FL 33774.
Body
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:
Heritage Oaks is the new construction of an 80-unit affordable housing community located at 12455 130th Avenue North, Largo, Florida. The project is the first phase of redevelopment of the Rainbow Village public housing complex owned by the Pinellas County Housing Authority. Three additional phases are planned.
Background/Explanation:
The County will use CDBG, HOME, and SHIP funds to provide $3.36M for construction cost reimbursement. A LURA associated with the $3.36M of construction funding will enforce the CDBG, HOME, and SHIP affordability restrictions and affordability period.
The funding source will be a combination of affordable housing funds including, $1.0M CDBG, $1.5M HOME, and $860,000 SHIP.
Fiscal Impact:
Total maximum expenditure: $3.36M.
This funding is consistent with the FY24 Budget Development and is included in FY24 Requested Budget for Housing and Community Development Department within the respectable Federal and State Funds.
Delegated Authority:
Authority for the County Administrator to sign the Land Use Restriction and Agency Agreements is granted by Board action on May 9, 2023, Granicus Item #23-0579A.
Staff Member Responsible:
Carol Stricklin, Director, Housing and Community Development
Partners:
Florida Housing Finance Corporation
Pinellas County Housing Authority
Attachments:
Agency Agreement
Mortgage & Promissory Note
Land Use Restriction Agreement
Reference Granicus Item #23-0579A - Staff Report - May 9, 2023