Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Resilient Environment Division: Housing Finance Division
Information
Requested Action
title
MOTION TO ADOPT Resolution, the title of which is as follows:
A Resolution of the Board of County Commissioners of Broward County, Florida, authorizing the issuance by the Housing Finance Authority of Broward County, Florida (the “HFA”) in the aggregate amount not to exceed $19,000,000 of its Multifamily Housing Revenue Bonds, Series 2023 (The Palms of Deerfield Townhomes) (the “Senior Bonds”) and its subordinate Multifamily Housing Revenue Note, Series 2023 (The Palms of Deerfield Townhomes) (the “Subordinate Note” and, together with the Senior Bonds, the “Bonds”) for the purpose of financing the acquisition, rehabilitation, and equipping of The Palms of Deerfield Townhomes located in Broward County, Florida (the “Project”); establishing parameters for the award of the sale thereof and establishing criteria for determining the terms thereof, including interest rates, interest payment dates, maturity schedule, and other terms of such Bonds; approving the forms of and authorizing the execution and delivery of the following documents in connection with (i) the Senior Bonds: (a) a Trust Indenture by and between the HFA and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”); (b) a Loan Agreement by and between the HFA and The Palms of Deerfield Townhomes, LLC (the “Borrower”); (c) a Land Use Restriction Agreement by and among the HFA, the Trustee, and the Borrower (the “Land Use Restriction Agreement”); (d) a Bond Purchase Agreement by and among the HFA, the Borrower, and Raymond James & Associates, Inc. (“Raymond James”) and RBC Capital Markets, LLC (“RBC”), as Bond Purchaser (collectively, the “Purchaser”); (e) a Trustee Fee Agreement by and between the HFA and the Trustee (the “Trustee Fee Agreement”); and (f) a Collateral Funds Agreement by and among the HFA, the Borrower, the Trustee, and Citibank, N.A., as Construction Lender, and (ii) the Subordinate Note: (a) a Subordinate Loan Agreement by and between the HFA and the Borrower; (b) the Land Use Restriction Agreement; (c) an Assignment of Subordinate Mortgage and Subordinate Loan documents by the HFA to The Palms of Deerfield Beach, LP (the “Leasehold Owner”); (d) a Placement Agent Agreement by and between the HFA and Raymond James and RBC, as Placement Agents and consented to by the Borrower; and (e) the Fiscal Agent Fee Agreement; approving and authorizing the execution and delivery by the HFA of certain additional agreements, instruments, certifications and affidavits necessary or desirable in connection with the issuance of the Bonds; authorizing the negotiated sale of the Senior Bonds to the Purchaser pursuant to the Bond Purchase Agreement; authorizing the appointment of a Bidding Agent pursuant to the Bond Purchase Agreement; authorizing the preparation and distribution of a Preliminary Official Statement for the Senior Bonds and authorizing the preparation, distribution, and execution of a final Official Statement in connection with the offering and sale of the Senior Bonds; authorizing the negotiated sale of the Subordinate Note to the Leasehold Owner pursuant to the Subordinate Loan Agreement; authorizing the appointment of a Trustee, Paying Agent, and Registrar of the Bonds; authorizing the HFA to consent to the Borrower placing subordinate financing on the project and approving the execution of such agreements as may be necessary in connection with such consent; approving and ratifying the HFA’s publication of a notice of public hearing and the subsequent holding of such public hearing each under Section 147(f) of the Internal Revenue Code of 1986, as amended, in connection with the issuance of the Bonds by the HFA; authorizing the proper officers of the HFA to do all things necessary or advisable in connection with the issuance of the Bonds; and providing an effective date for this Resolution. (Commission District 2)
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Why Action is Necessary
Formal Board action is necessary for the adoption of a Resolution.
What Action Accomplishes
Enables the adoption of a Resolution.
Goal Related Icon(s)
☒County Commission
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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 Goal of the Broward County Board of County Commissioner’s (“Board”) 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.”
On December 20, 2022, the Housing Finance Authority of Broward County, Florida (the “HFA”), received a multifamily bond application from The Palms of Deerfield Townhomes, LLC, a Florida limited liability company (the “Borrower”), pertaining to the acquisition and rehabilitation of a 56-unit multifamily development, known as The Palms of Deerfield Townhomes (the “Project”). The Project is located at 407-431 NW 1st Terrace, Deerfield Beach, Florida. The application requested that the HFA issue bonds to support the Project in the amount of $16,000,000; thereafter, the application was revised on March 20, 2023, to increase the requested bond amount to $19,000,000.
At its May 17, 2023, meeting the HFA Board adopted Resolution No. 2023-003 (the “Inducement Resolution”), declaring its official intent to issue bonds in an amount not to exceed $19,000,000, and (ii) authorizing the publishing of a TEFRA Notice and the holding of a TEFRA Hearing (as defined and described in the Inducement Resolution), in accordance with the Internal Revenue Code of 1986, as amended (the “Code”).
At its October 18, 2023, meeting the HFA Board approved Resolution No. 2023-018 (Exhibit 2), authorizing the issuance of multifamily housing revenue bonds and/or notes in an aggregate amount not to exceed $19,000,000, comprised of the Housing Finance Authority of Broward County, Florida Multifamily Housing Revenue Bonds, Series 2023 (The Palms of Deerfield Townhomes) (the “Senior Bonds”) and the Housing Finance Authority of Broward County, Florida Subordinate Multifamily Housing Revenue Note, Series 2023 (The Palms of Deerfield Townhomes) (the “Subordinate Note”) (collectively, the “Bonds”) and authorizing the execution and delivery of certain documents necessary or desirable in connection with the issuance of the Bonds. HFA Resolution No. 2023-018 was prepared by Bond Counsel and approved as to legal sufficiency by the Office of the County Attorney.
Adoption of this Resolution (Exhibit 1) authorizes the HFA to (i) issue the Bonds to finance the acquisition and rehabilitation of the Project, (ii) ratifies (a) the publishing of the TEFRA Notice by the HFA on June 7, 2023, and (b) the holding of, and minutes resulting from, the TEFRA Hearing held on June 15, 2023, in connection with the issuance of the Bonds, and in accordance with the Code, and (iii) approves the form of and the execution and delivery of various documents in connection with the delivery of the Bonds. A location map is included as Exhibit 3.
Source of Additional Information
Ralph Stone, Director, Housing Finance Division (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
No fiscal impact.