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: (Commission District 7)
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 ONE OR MORE SERIES, IN THE AGGREGATE AMOUNT NOT TO EXCEED $26,000,000 OF ITS MULTIFAMILY HOUSING REVENUE NOTE, SERIES 2025 (DRIFTWOOD TERRACE) (THE “NOTE”) FOR THE PURPOSE OF FINANCING THE ACQUISITION, REHABILITATION AND EQUIPPING OF DRIFTWOOD TERRACE 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 NOTE; APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF (I) A FUNDING LOAN AGREEMENT BY AND AMONG THE HFA, CITIBANK, N.A., AS FUNDING LENDER (THE “FUNDING LENDER”), AND THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., AS FISCAL AGENT (THE “FISCAL AGENT”); (II) A BORROWER LOAN AGREEMENT BY AND BETWEEN THE HFA AND DRIFTWOOD TERRACE, LLLP (THE “BORROWER”); (III) A LAND USE RESTRICTION AGREEMENT BY AND AMONG THE HFA, THE FISCAL AGENT AND THE BORROWER; (IV) AN ASSIGNMENT OF MORTGAGE AND LOAN DOCUMENTS BY THE HFA TO THE FISCAL AGENT; (V) AN AGREEMENT TO SUBORDINATE TO RENTAL ASSISTANCE DEMONSTRATION USE AGREEMENT BY AND AMONG THE HFA, THE FISCAL AGENT AND THE BORROWER; (VI) A PLACEMENT AGENT AGREEMENT BY AND BETWEEN THE HFA AND RBC CAPITAL MARKETS, LLC AND RAYMOND JAMES & ASSOCIATES, INC., AS PLACEMENT AGENTS; AND (VII) A FISCAL AGENT FEE AGREEMENT BY AND BETWEEN THE HFA AND THE FISCAL AGENT; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY BY THE HFA OF CERTAIN ADDITIONAL AGREEMENTS NECESSARY OR DESIRABLE IN CONNECTION WITH THE ISSUANCE OF THE NOTE; 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 NOTE BY THE HFA; AUTHORIZING THE PROPER OFFICERS OF THE HFA TO DO ALL THINGS NECESSARY OR ADVISABLE IN CONNECTION WITH THE ISSUANCE OF THE NOTE; AND PROVIDING AN EFFECTIVE DATE FOR THIS RESOLUTION.
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Why Action is Necessary
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
☐Go Green
☐MAP Broward
Previous Action Taken
None taken.
Summary Explanation/Background
THE RESILIENT ENVIRONMENTAL 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 November 20, 2023, the Housing Finance Authority (“HFA”) received a multifamily bond/note application from Driftwood Terrace, LLLP pertaining to the acquisition, rehabilitation and equipping of a 90-unit development, known as Driftwood Terrace (the “Development”). The units are 100% elderly (55+) and will be rented to families at 60% or lower Average Median Income (AMI) for a period of 30 years. The Development is located at 7300 Davie Road Extension, Hollywood, Florida 33024. The application requested that the HFA issue a multifamily housing revenue note in an amount of $26,000,000 (“Note) to finance the acquisition, rehabilitation, and equipping of the Development. The developer was identified in the application as Newstar Development, LLC.
On March 10, 2024, the HFA adopted Resolution No. 2024-001 (the “Inducement Resolution”), approving the issuance of the Note and authorizing HFA staff to publish notice (“TEFRA Notice”) of and hold a hearing (“TEFRA Hearing”) pursuant to the Tax Equity and Fiscal Responsibility Act (“TEFRA”) for the Development.
The TEFRA Notice for the TEFRA Hearing was published on June 1, 2024, and the TEFRA Hearing was held on June 11, 2024. The Mayor and City Manager of the City of Hollywood were provided notice regarding the Development prior to the HFA holding the TEFRA Hearing.
On January 15, 2025, the HFA adopted Resolution No.2025-001 (Exhibit 2), authorizing the issuance of the Note, approving the form, and authorizing the execution and delivery, of certain documents necessary or desirable in connection with the issuance of the Note. HFA Resolution No. 2025-001 was prepared by Bond Counsel and approved as to the legal sufficiency by the Office of the County Attorney.
Adoption of the Resolution (Exhibit 1) authorizes the HFA to (i) issue the Note to finance the acquisition, rehabilitation, and equipping of the Development, (ii) ratifies (a) the publishing of the TEFRA Notice by the HFA on June 1, 2024, and (b) the holding of, and minutes resulting from, the TEFRA Hearing held on June 11, 2024, and (iii) approves the form of and the execution and delivery of various documents in connection with the issuance of the Note. A location map is attached 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.