Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Resilient Environment Division: Housing Finance Division
Information
Requested Action
title
A. MOTION TO APPROVE Evaluation Committee final ranking of applications for the Affordable Housing Development of 1201 NW 31st Avenue, Pompano Beach, Florida, Request For Applications (“RFA”) for gap financing; authorizing the County Administrator to negotiate and execute all agreements with the highest ranked applicant subject to approval as to legal sufficiency by the Office of the County Attorney, and to take the necessary administrative and budgetary actions.
(Per the Tuesday Agenda Memorandum, the Board's consideration is based on the item as amended by the Additional Material, including the amended motion statement and Exhibit 4, submitted by Resilient Environment Department.)
ACTION: (T-11:03 AM) Approved as amended with Regular Meeting Additional Material, dated December 10, 2024, submitted at the request of Resilient Environment Department.
VOTE: 8-0. Vice-Mayor Bogen was inaudible during the vote.
B. MOTION TO ADOPT budget Resolution in the amount of $7,000,000 for gap financing from the Affordable Housing Trust Fund (“AHTF”) for RUDG, LLC for the Cross Creek mixed-use multifamily affordable housing development consisting of 467 total units, including 440 income restricted affordable units; authorizing the County administrator to negotiate and execute all agreements related to gap financing for the project; subject to approval as to legal sufficiency by the Office of the County Attorney, and to take the necessary administrative and budgetary actions.
(Per the Tuesday Agenda Memorandum, the Board's consideration is based on the item as amended by the Additional Material, including the amended motion statement and Exhibit 4, submitted by Resilient Environment Department.)
ACTION: (T-11:03 AM) Approved Resolution No. 2024-528 as amended with Regular Meeting Additional Material, dated December 10, 2024, submitted at the request of Resilient Environment Department.
VOTE: 8-0. Vice-Mayor Bogen was inaudible during the vote.
C. MOTION TO ADOPT Resolution to enter a ground lease with RUDG, LLC to convey County owned parcels of real property for the purpose of constructing a mixed-use multifamily affordable housing development and enable RUDG, LLC to pursue funding for the development from the Florida Housing Finance Corporation (“FHFC”). (Commission District 8)
(Per the Tuesday Agenda Memorandum, the Board's consideration is based on the item as amended by the Additional Material, including the amended motion statement and Exhibit 4, submitted by Resilient Environment Department.)
ACTION: (T-11:03 AM) Approved as amended with Regular Meeting Additional Material, dated December 10, 2024, submitted at the request of Resilient Environment Department.
VOTE: 8-0. Vice-Mayor Bogen was inaudible during the vote.
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Why Action is Necessary
Board action is required to approve agreements with outside agencies, to convey County owned lands and to create a new capital project above $25,000.
What Action Accomplishes
Ranks the applications for the Affordable Housing Development of 1201 NW 31st Avenue, Pompano Beach, RFA; conveys County property located at 1201 NW 31st Avenue Pompano Beach, Floridan to RUDG, LLC; and authorizes the County Administrator to execute the agreements necessary to provide gap financing to RUDG, LLC to construct 467 multi-family rental units (including 440 affordable units) in the City of Pompano Beach.
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Previous Action Taken
None.
Summary Explanation/Background
THE RESILIENT ENVIRONMENT DEPARTMENT AND THE HOUSING FINANCE DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
This item supports the Board’s Goal of “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 residents build equity.”
In 2023, the County purchased a 5.19-acre property for the purpose of developing affordable housing (Exhibit 4- Project Location). On August 16, 2024, the Housing Finance Division (“HFD”) issued an RFA to solicit applications from qualified developers for the design and construction of a mixed-use multi-family rental development containing a minimum of 200 units that would be restricted as affordable to households earning 80% or less of the Area Median Income (AMI), pursuant to a ground lease.
The Applications were due on October 25, 2024. Seven Applications were submitted in a timely manner and accepted for the RFA. Prior to the Evaluation Committee scoring of the Applications, staff managing the RFA process reviewed all Applications for minimum requirements and Fatal Flaw criteria. Six Applications were deemed responsive to the requirements of the RFA. On November 14, 2024, an Evaluation Committee Meeting was held. After presentations, evaluation, scoring and ranking, the Evaluation Committee approved RUDG, LLC as the first-ranked firm (Exhibit 1- Evaluation Committee Scoring Ranking and Project Summary) for their Application for the Cross Creek Master Plan consisting of two phases of development: Gallery at Cross Creek (Phase 1) and Residences at Cross Creek (Phase 2).
In total, the Cross Creek Master Plan located at 1201 NW 31st Avenue, Pompano Beach, Florida, 33069, consists of 467 units, with 327 restricted as affordable at or below 80% AMI, 113 restricted as affordable at 120% AMI and 27 market rate units. In addition, the development includes 690 parking spaces and 3,900 square feet of retail space.
The RFA included an allocation of up to $7,000,000 in gap funding to support the project. RUDG, LLC requested $7,000,000 as a part of their Application for the RFA. The lease will be provided as additional material.
The loan agreement and other related loan documents will be drafted to be executed by the County simultaneous with the closing of the financing for the project. The terms of the loan agreements will include a minimum term of 60 years for the affordable housing land use restriction and a 0% interest rate loan with a minimum term of 30 years, with the loan to become payable on the maturity date, or upon sale, change of title, or refinancing, whichever occurs first, subject to the provisions of the loan agreement.
The budget resolution (Exhibit 2) authorizes gap funding from the AHTF in the amount of $7,000,000 to RUDG, LLC and authorizes the County Administrator to negotiate and execute all agreements related to gap financing for the project.
The RFA requires that the lease agreement be completed within six months after the Board approves the project award to the selected Applicant. However, to pursue funding from the FHFC for this development, the applicant must demonstrate site control for the proposed project. Therefore, to enable RUDG, LLC to immediately pursue funding for the Cross Creek development from FHFC, including the RFA 2024-2013, which has a submittal deadline of December 20, 2024, staff prepared a proposed ground lease (Exhibit 3) to convey the property to RUDG, LLC.
The lease provides for a 75 year lease term and a $4,300,000 initial lease payment paid upon the closing of financing.
In accordance with Broward County Business Opportunity Act, Ordinance No. 2012-33, Broward County Code of Ordinances, the County Business Enterprise (CBE) Program is applicable to this contract.
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 $7,000,000 from the AHTF for construction of a mixed-use multi-family affordable housing rental development in the City of Pompano Beach.