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 First Global Modification to Mortgages and Other Loan Documents (“Global Modification”) related to Captiva Cove III affordable housing project in substantially the form of Exhibit 2; and to authorize the County Administrator to execute the Global Modification with any required modifications, provided such modifications do not impose any additional, material financial risk on the County, and are subject to review and approval as to legal sufficiency by the Office of the County Attorney. (Commission District 4)
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Why Action is Necessary
Board action is required to approve agreements with outside agencies.
What Action Accomplishes
Authorizes the County Administrator to approve modification to mortgages and other loan documents related to Captiva Cove III affordable housing project in accordance with the Global Modification.
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 Board’s value: “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 build equity.”
On February 22, 2022, Agenda Item No. 23, the Board of County Commissioners (“BOCC”) approved gap financing in the amount of $5,630,000 for the Captiva Cove III affordable housing project (“County Loan”), a 106-unit residential building located at 740 SW 11th Street, Pompano Beach, Florida, for construction and permanent financing (“Project”).
The City of Pompano Beach (“City”) made a loan to Borrower in the amount of $1,500,000, the proceeds of which are being utilized in connection with the construction and financing of a portion of the Project. This loan by the City was subordinate to the County loan.
On January 9, 2024, the Director of the Housing Finance Division, received correspondence from Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., representing Captiva Cove III Associates, Ltd. (“Borrower”), attached as Exhibit 1. Pursuant to the correspondence, the Borrower requested consent to obtain additional financing in the form of a future advance in the amount of $250,000 from the City (the “Transaction”). Upon the closing of the Transaction, the City’s loan will be increased from $1,500,000 to $1,750,000. The loan by the City in the new amount of $1,750,000 will remain subordinate to the County.
The Borrower seeks BOCC authorization and approval of the Global Modification, which will allow the Borrower to obtain additional financing in the form of a future advance for the Captiva Cove III affordable housing project.
Source of Additional Information
Ralph Stone, Director, Housing Finance Division, (954) 357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
No Fiscal Impact.