Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Resilient Environment Division: Housing Finance Division
Information
Requested Action
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MOTION TO APPROVE modification to the Village at Middle River affordable housing project (“Project”) by Habitat of Broward County, Inc. (“Habitat”), to modify the unit count from 24 units to 20 units, and modify the affordability housing land use restriction period from 30 years to 15 years to be consistent with other County affordable housing infill homeownership programs; authorize the County Administrator to negotiate and execute all agreements and amendments related to the Project, provided such agreements and amendments do not impose any additional, material financial obligations on the County, subject to review and approval as to legal sufficiency by the Office of the County Attorney; and authorizing the County Administrator to take the necessary administrative and budgetary actions. (Commission District 8)
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Why Action is Necessary
Board action is required to approve agreements with outside agencies.
What Action Accomplishes
Authorize the County Administrator to execute the agreement with Habitat.
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Previous Action Taken
None taken.
Summary Explanation/Background
THE RESILIENT ENVIRONMENT DEPARTMENT AND THE HOUSING FINANCE DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s value: “Ensuring residents have an affordable place to live by offering sustainable, compatible, innovative, accessible, affordable housing options for all income levels, including integrated, permanent supportive housing and zoning that helps build equity.”
On February 11, 2022, the Housing Finance Division (“HFD”) issued a Request for Applications (“RFA”) for $5,000,000, soliciting nonprofit affordable housing organizations to utilize “gap” financing for the development of additional affordable housing units. No more than $2,500,000 was allowed per project, and the unit count had to be at or below 30 units. A loan agreement and other related loan documents would be prepared for each affordable housing project and executed by the County simultaneously with the closing of the financing for each project. The terms of the loan agreements, per the RFA, would include a minimum term of 30 years for the affordable housing land use restriction, a 0% interest rate loan with a minimum term of 30 years, and the loan would become payable on the maturity date, or upon sale, change of title, or refinancing, whichever were to occur first, subject to the provisions of the loan agreement.
At the Board of County Commissioners of Broward County, Florida (“Board”) meeting on May 10, 2022 (Agenda Item No. 15), Habitat was one of three applications that was approved for gap financing in the amount of $2,500,000. Subsequently, on August 22, 2024, HFD received a letter from the CEO of Habitat stating that a pre-plan/pre-construction meeting was held with the City of Fort Lauderdale (Exhibit 2) in which the City informed Habitat that a zoning change would be required and that only 20 affordable units could be approved rather than the 24 included in Habitat’s application under the RFA.
Habitat’s letter also requested that the 30-year term of the affordable housing land use restriction under the RFA be reduced to 15 years. The County’s single-family affordable housing homeownership infill programs have implemented a 15-year affordable housing land use restriction when land is conveyed from the County to the developer. To be consistent with such other affordable housing programs, HFD agrees that the term of the housing land use restriction for the Project should be 15 years.
HFD recommends proceeding with funding the Project for a total of 20 affordable housing units, or such other number of units that the City of Fort Lauderdale approves for the subject site provided such changes are not material, with a 15-year affordable housing land use restriction.
Source of Additional Information
Ralph Stone, Director, Housing Finance Division, (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
The agenda item proposes to utilize $2,500,000 from the Affordable Housing Trust Fund for the new construction of a 20-unit affordable homeownership townhome community to be developed by a nonprofit organization in Broward County.