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 amended form of Agreement between Broward County and the following three nonprofit agencies: 1) Habitat for Humanity of Broward, Inc.; 2) Broward County Minority Builders Coalition, Inc.; and 3) Central County Community Development Corporation (each an “Agency”) for the purpose of constructing affordable infill housing; authorize the County Administrator to negotiate and execute the agreements and any amendments with each Agency, 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 to authorize the County Administrator to take all necessary administrative and budgetary actions. (Commission District 8)
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Why Action is Necessary
Board action is required to approve material financial changes to the form of the Agreement with the Agencies.
What Action Accomplishes
Approves a form of Agreement authorizing an additional $100,000 ($25,000 per lot) per Agency for increased predevelopment assistance in connection with development of affordable infill housing on county-owned parcels of real property in the Broward Municipal Services District for a total additional allocation of $300,000, and an in-kind donation from the County in an amount estimated at $50,000 per Agency to support the project, for a total in-kind donation of fill material valued at up to $150,000.
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Previous Action Taken
The Board previously authorized the conveyance of the county-owned parcels of real property to the nonprofit agencies and form of agreement at the March 7, 2024 meeting (Agenda Item No. 20), and subsequently reallocated the parcels amongst the nonprofit agencies at the August 22, 2024 meeting (Agenda Item No. 46).
Summary Explanation/Background
THE RESILIENT ENVIRONMENT DEPARTMENT AND THE HOUSING FINANCE DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
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.”
On March 7, 2024, the Board adopted Resolution No. 2024-086, which authorized the County Administrator to execute agreements required for conveyance of twelve county-owned parcels (“Lots”) to three nonprofit agencies: 1) Habitat for Humanity of Broward, Inc.; 2) Broward County Minority Builders Coalition, Inc.; and 3) Central County Community Development Corporation (collectively “Agencies”) for the construction of twelve affordable single-family residences located within the Central County Community neighborhood of the Broward Municipal Services District (BMSD), which will be sold to income-qualified buyers (Exhibit 3). The Resolution approved a form of agreement with each of the Agencies that set forth the terms of the property transfers. Resolution No. 2024-086 was subsequently amended on August 22, 2024 pursuant to Resolution No. 2024-364, which restructured the allocation of certain lots to the Agencies.
The Agencies had been awarded the lots pursuant to a November 6, 2023, Request for Applications (“RFA”) titled “Development of 12 New Affordable Homes by Nonprofit Organizations.” The RFA entitled the Agencies to receive up to $20,000 per lot to apply toward predevelopment costs. Subsequent due diligence by the Agencies revealed that the Lots were subject to the revised Federal Emergency Management Agency’s Flood Maps that became effective on July 31, 2024. This change requires higher minimum finished floor elevations than the Agencies had anticipated, and significantly impacts the cost to develop the residences, as shown in Exhibit 2.
The amended form of the agreement to be entered into between the County and each Agency provides for $180,000 in predevelopment cost assistance to develop the four Lots to be conveyed to the respective Agency (Exhibit 1). This amendment increases the predevelopment cost allocation to an average of $45,000 per lot to assist the Agencies with mitigating the budget shortfall due to the new elevation standard. The total predevelopment cost assistance is $540,000 for the entire project. The amended form of the agreement also provides each Agency with an in-kind donation in the form of fill sourced from the Broward County Public Works Department, at an estimated value of $50,000 per Agency (a total value of up to $150,000 for the entire project).
Source of Additional Information
Ralph Stone, Director, Housing Finance Division, (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
Funding of $540,000 shall be provided in part or in-full by the Community Development Block Grant Disaster Recovery funds, the Broward County Affordable Housing Trust Fund, or the State Housing Initiative Program for the development of twelve affordable single-family residences which will be sold to income-qualified buyers in the BMSD.