Agenda Item Name:
Title
Pine Grove Housing Project Multifamily Mortgage Revenue Bond Funding Request
End
Presenter:
Candie Nixon (352) 264-6717
Description:
Request approval for bond to finance rehabilitation of existing facility (Pine Grove)
Recommended Action:
Recommended Action
Approve request to submit for a Private Activity Bond in the aggregate principal amount of not to exceed $9,000,000.00.
End
Prior Board Motions:
None
Fiscal Consideration:
Fiscal Consideration
No fiscal liability to the County upon issuance of bond.
End
Background:
This request is for BoCC approval following the adoption of the Alachua County Housing Finance Authority of a Resolution for Multifamily Mortgage Revenue Bonds.
On December 4, 1999, the BoCC enacted Ordinance No.99-25 creating the Alachua County Housing Finance Authority (“HFA”) to carry out and exercise, without limitation, except as expressly stated in such ordinance (now codified as Chapter 32 of the Alachua County Code), all powers and public and governmental functions set forth in and contemplated by the Florida Housing Finance Authority Law. The Florida Housing Authority Law grants authority to the HFA to issue tax-exempt revenue bonds to finance qualified affordable housing projects in Alachua County.
The HFA proposes financing a multiple building two-story multifamily apartment project identified as:
Owner: PINE GROVE VOA AFFORDABLE HOUSING, LP
Project Name: PINE GROVE APARTMENTS
Location: 1901 NE 2nd Street, #100, Gainesville, Alachua County, Florida
No. of Units: 96
The Alachua County Housing Finance Authority recommends approval of the BoCC of the issuance of not to exceed $9,000,000.00 multifamily mortgage revenue bonds, SERIES 2021, for the purpose of acquiring, rehabilitating, equipping, and developing a multifamily residential housing facility for persons or families of low, middle or moderate income; further authorizing the execution and delivery of an agreement and between the Authority and Pine Grove VOA Affordable Housing LP.
The application is submitted to the Division of Bond Finance State of Florida for an allocation of the Volume Cap through a filing of a notice of intent to issue such bonds and is completed by the Authority’s Bond Counsel in cooperation with the Applicant.
Similar scaled projects in Alachua County supported by other HFA bonds includes Brookside Apartments, Eden Park, Forest & Village Green, Lewis Place, Santa Fe Oaks, Santa Fe Oaks II, and Harbor Cove.
The Internal Revenue Code permits the issuance of tax-exempt bonds, such as the subject bonds, after a duly-noticed public hearing, after approval by the applicable elected governmental body (in this case, the BoCC), and after receipt of an allocation for the issuance of private activity bonds from the State of Florida.
On April 21, 2021, the HFA held a public hearing in accordance with the Tax Equity and Fiscal Responsibility Act ("TEFRA") on the proposed issuance by the HFA of its Multifamily Mortgage Revenue Bonds Series 2020 in the principal amount not to exceed $9,000,000. 00.
The proposed resolution specifically states that the BoCC approval is limited, and does not obligate the County with respect to any zoning, land use or other issues with respect to the proposed project.
All responsibility for the repayment of the Bonds is the Borrower’s, and the revenues neither of the County or the HFA are pledged or otherwise available to secure the same. The HFA must give final approval to issue the Bonds, which it plans to do only after receipt of a credit underwriting report prepared by a third party credit underwriter approving the same.