Subject:
Title
Affordable Housing Program project funding recommendation for Burlington Post 2 by Green Mills Group.
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Recommended Action:
Recommended Action
Recommend approval of requested funding for Burlington Post 2 by Green Mills Group.
It is further recommended that the County Administrator be authorized to negotiate and approve the terms and final funding amounts not to exceed Board approved amounts.
• Burlington Post 2 is a new construction multi-family rental housing project consisting of 75 affordable units serving senior households at or below 80.0% Area Median Income.
• The funding recommendation for Burlington Post 2 is $3,750,000.00 for construction financing using $3,541,977.00 in Emergency Rental Assistance (ERA2) funds and $208,023.00 of Housing Trust Funds.
• The total development cost is estimated to be $ 28,406,761.00. Other sources of funding include Florida Housing Finance Corporation ($4,255,000.00), Housing Finance Authority 4.0% Tax Credit Equity ($13,924,675.00), City of St. Petersburg ERA2, American Rescue Plan Act and Community Redevelopment Area ($5,625,000.00), and Deferred Developer Fee ($852,086.00).
• The project is located at 3201 Burlington Avenue North, St. Petersburg, FL 33713.
• A summary sheet is attached with additional project information.
• Next steps: County staff will complete additional due diligence activities including, but not limited to, loan underwriting and financial analysis. Funding agreements, loan documents, and affordability restrictions will be prepared, negotiated, and executed.
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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
Burlington Post 2 by Green Mills Group has successfully obtained a combination of FHFC funding commitments including State Apartment Incentive Loan (SAIL), Extremely Low Income (ELI), and National Housing Trust Fund (NHTF) program funds totaling $4,255,000.00. The city of St. Petersburg has committed $5,625,000.00 of ERA2, ARPA and CRA funds to the project. The project has a remaining funding gap of $3,750,0000.00 which the developer is requesting from the County.
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Background Information:
Burlington Post 2 will be an affordable senior housing community adjacent to Burlington Post 1 (an 86-unit affordable housing apartment building). The second phase includes 75 units and sufficient structured parking to accommodate both phases. The development consists of all one bedroom/one bath units. 12 units will be affordable to households earning at or below 30.0% of Area Median Income (AMI), 39 units at or below 60.0% AMI, and 24 units at or below 80.0% AMI.
The land is owned by a third party, PO St. Petersburg, LLC which leased the entire development site (Burlington Post Phase I and this proposed Burlington Post Phase II) to Green Mills Holdings, LLC. Green Mills received approval from Florida Housing Finance Corporation and Burlington Post financing partners to carve out the Phase 2 property from Phase I, and will sublease it (via Green Mills Holdings, LLC) to the Phase 2 development at a discounted value.
Fiscal Impact:
Total maximum expenditure: $3,750,000.00
$3,541,977.00 of funding is available from three successful applications for reallocated Emergency Rental Assistance funding (ERA2). The balance of County funding will be provided by the Housing Trust Funds. The revenue and expenditure is included in the FY24 Requested Budget within General Government and housing Trust Funds.
Staff Member Responsible:
Carol Stricklin, Director, Housing and Community Development
Partners:
City of St Petersburg
Florida Housing Finance Corporation
Housing Finance Authority of Pinellas County
Attachments:
Project Application Evaluation Summary Sheet