Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Environmental Protection Division: Housing Finance & Comm. Redevelopment
Information
Requested Action
title
A. 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 additional gap financing in the amount of $800,000, for a total gap financing amount of $4,250,000 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)
ACTION: (T-10:25 AM) Approved.
VOTE: 8-0. Commissioner Holness voted in the affirmative telephonically. Commissioner Sharief was not present.
ACTION: (T-12:11 PM) Commissioner Sharief requested being shown voting in the affirmative.
VOTE: 9-0.
B. MOTION TO ADOPT budget Resolution No. 2021-480 within the Affordable Housing Trust Fund in the amount of $800,000 for the purpose of providing additional funding for the new construction of the Solaris Apartments Project.
ACTION: (T-10:25 AM) Approved.
VOTE: 8-0. Commissioner Holness voted in the affirmative telephonically. Commissioner Sharief was not present.
ACTION: (T-12:11 PM) Commissioner Sharief requested being shown voting in the affirmative.
VOTE: 9-0.
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Why Action is Necessary
A. Board action is required to approve agreements with outside agencies.
B. Board action is required to adopt budget resolutions.
What Action Accomplishes
Allocates an additional $800,000 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, for a total of $4,250,000 in County gap financing funding for the 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.
On November 10, 2020, (Item #41) the Board approved $2,450,000 in gap financing for the construction of new affordable multifamily housing units for the Solaris Apartments project. Since that time construction and material costs have increased significantly requiring additional gap financing to make the project financially feasible.
Summary Explanation/Background
THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
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.
The Board approved, on November 10, 2020, $2,450,000 in additional gap financing. Since that time construction and materials costs have increased significantly requiring additional gap financing to make the project financially feasible.
Subsequent to Board approval, a loan agreement and other related loan documents will be drafted and executed by Broward County and will close simultaneously with the construction financing for the Project. The terms of the $4,250,000 Affordable Housing Trust Fund (AHTF) loan agreement will include a minimum of a 30-year affordable housing land use restriction; 0% interest for a loan with a minimum term of 30 years, with the loan payable on the maturity date or upon sale or refinancing of the Project, whichever occurs first, subject to the provisions of the loan agreement.
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.
It should be noted that this project will utilize $16,500,000 in Housing Finance Authority bonds from year 2021. If the project does not close in 2021, the bond allocation will expire and a future year allocation will be necessary.
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 in the amount of an additional $800,000 for the construction of affordable housing units in the City of Hallandale Beach, Florida. Total gap financing will be $4,250,000.