Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Environmental Protection Division: Housing Finance & Comm. Redevelopment
Information
Requested Action
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MOTION TO AUTHORIZE County Administrator to execute all agreements, subject to approval as to form and legal sufficiency by the Office of the County Attorney, related to gap financing in the amount of $2,450,000 to be provided to Solaris Apartments Limited or an affiliate of Solaris Apartments Limited, for new construction of 78 affordable (low and very low area median income) multifamily residential units in the City of Hallandale Beach, Florida; and authorizing the County Administrator to take the necessary administrative and budgetary actions related to the gap financing. (Commission Districts 6 and 8)
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Why Action is Necessary
Board action is required to approve agreements with outside agencies and to create a new capital project above $25,000.
What Action Accomplishes
Allocates $2,450,000 for gap financing for the construction of 78 new affordable multifamily housing units and authorizes the County Administrator and County Attorney to execute agreements for financing of the Solaris Apartments project.
Is this Action Goal Related
Yes
Previous Action Taken
On September 10, 2019, (Item #20) the Board approved $1,000,000 in gap financing for the construction of new affordable multifamily housing units for the Solaris Apartments project.
Summary Explanation/Background
THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s value: “Offering sustainable, compatible, innovative housing options for all income-levels, including integrated, permanent supportive housing” and the corresponding goal of “Increase the availability of affordable housing of all types, countywide, in every community using effective, uniform criteria, policies and strategies.”
The Board approved, on September 10, 2019, $1,000,000 in gap financing for the Solaris Apartments project. The project was conditioned on the use of Housing Finance Authority (HFA) of Broward County Bonds and an application/award from the Florida Housing Finance Corporation (FHFC) Request for Application (RFP) 2019-102 Community Development Block Grant-Disaster Recovery. FHFC has approved an award for the project of $7,920,000. Since that time construction and materials costs have increased significantly requiring additional gap financing to make the project financially feasible.
It should be noted that this funding was originally awarded to a project in Hallandale Beach called 8th Avenue Commons. The Board revoked that award and directed Administration to solicit a new RFP in the City of Hallandale within Commission District 8. An RFP was issued for this amount in the designated area in August 2020; however, no proposals were forthcoming. Subsequent to that solicitation, the Solaris project developers approached the County regarding the need for additional gap financing. Although the Solaris property is in District 6, the location is very near District 8 and will serve the low-income populations in both Districts.
The terms of this financing and the prior gap award from the County will be in the form of a zero-interest rate loan for a term of 30 years, with a 30-year affordable housing land use restriction. The loan will require satisfaction upon sale or refinancing of the project or the end of the term, whichever occurs first.
The Developer will be responsible for all of the following Project elements: financing, design, obtaining all required development approvals and permits, construction, operation, and maintenance of the proposed project. The Solaris Apartments project will include 78 new affordable housing units (low and very low area median income). The location of the project is 118 SE 7th Street in the City of Hallandale Beach.
The Proposer agrees that contractor and vendor awards to County Business Enterprises (CBE) are crucial to the achievement of the County’s CBE participation objectives. Although this Proposal does not have assigned CBE goals, the Proposer agrees that wherever possible, every effort will be made to utilize the services of Broward County certified CBE firms, and shall include this provision in any subcontract it enters into pursuant to this Agreement. The Proposer will be required to report the percentage of CBE participation by it and its subcontractors on a quarterly basis.
Source of Additional Information
Ralph Stone, Director, Housing Finance and Community Redevelopment Division, (954)
357-5320
Fiscal Impact
Fiscal Impact/Cost Summary
The agenda item proposes to utilize available gap financing funds approved by the Board for fiscal year 2019 in the amount of $2,450,000 for the construction of affordable housing units in the City of Hallandale Beach, Florida.