Subject:
Title
Resolution approving the issuance by Brevard County Housing Finance Authority of Multi-Family Housing Revenue Bonds (Oak Meadows Apartments Project) in an amount not to exceed $17,600,000
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Fiscal Impact:
None. The bonds will be payable solely from revenues of the Project and will not pledge the revenues or ad valorem taxes of the County or the Authority.
Dept/Office:
Brevard County Housing Finance Authority/County Attorney’s Office
Requested Action:
Recommendation
The Brevard County Housing Finance Authority (the “Authority”), a dependent special district of Brevard County, requests that the Board approve a Resolution allowing the Authority to issue multi-family housing revenue bonds to finance the acquisition, rehabilitation, equipping and development of Oak Meadows (the “Project”).
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Summary Explanation and Background:
The Authority received an application from Cocoa Leased Housing Associates II, LLLP, for the issuance of multi-family housing revenue bonds in an amount not to exceed $17,600,000 to finance the acquisition, rehabilitation, equipping and development of the Project. The Project consists of the rehabilitation of an existing apartment complex: Oak Meadows, located at 1605 Flower Mound Lane, Cocoa, Florida, containing 120 garden and townhouse apartment units (12 one-bedroom, 60 two-bedroom and 48 three-bedroom apartments). The apartments will be rented to individuals and families. A Land Use Restriction Agreement encumbering the property will require that a minimum of 25% of the apartment units will be set aside and available only to persons earning less than 35% of area median income with the remaining 75% available to persons earning less than 60% of area median income, for as long as the financing is outstanding, or for a term of 30 years, whichever is longer. The Project will include a business center, clubhouse, fitness center, swimming pool, playground, laundry facility, barbeque/picnic area, laundry hookups, marble windowsills, steel door frames, dishwashers and garbage disposals in all units.
The Board previously adopted Resolution 23-136 on November 14, 2023, approving this bond issue. Since the bonds must be issued within one year of the public hearing approval, the Authority held another public hearing on August 28, 2024, following proper publication of notice, for the purpose of receiving public input on the proposed issue, a report on which is attached to the proposed Resolution. The proposed Resolution acknowledges the public hearing and authorizes the issuance by the Authority of the bonds. To issue tax-exempt bonds for the Project, the Authority must receive the limited approval of the Board of County Commissioners as required by applicable federal tax law. The Authority has sufficient carryforward allocation (permission to issue bonds) to issue the bonds prior to December 31, 2024.
The bonds will be payable solely from revenues of the Project and will not pledge the revenues or ad valorem taxes of the County or the Authority.
The County’s financial advisor (PFM Financial Advisors) has reviewed the transaction and anticipates the funding will be within the County’s debt issuance guidelines if it remains at proposed levels. (See attachment).
The County’s outside bond counsel has reviewed the project and provided the following statement: “The resolution proposed to be adopted by the BOCC satisfies the pertinent federal and state law requirements and provides that neither the County nor any of the elected officials or staff of the County will have any obligation or liability, financial or otherwise, with respect to the Project or the Bonds.” (See attachment.)
Cost Benefit Analysis provided by Brevard County Housing Finance Authority:
This issue will provide funds to finance the acquisition, rehabilitation, equipping and development of 120 rental housing units which will be available to Brevard County families of lower and moderate income. There is no fiscal impact to the Board of County Commissioners or the Authority. The County is only authorizing the Housing Finance Authority to issue the bonds under the IRS requirements for tax exempt bonds and the County shall be indemnified from the issuance of bonds and the Project.
A representative of the Housing Finance Authority will be available for questions at the meeting.
Contact Person: Angela A. Abbott, 264-0334, angelaabbott@cfl.rr.com; Steven E. Miller, (813) 281-2222, smiller@ngn-tampa.com; Jay Glover, PFM Financial Advisors LLC, (407) 406-5760, gloverj@pfm.com
Clerk to the Board Instructions: Return a signed Resolution to the County Attorney’s Office, County Finance, and to Angela A. Abbott at angelaabbott@cfl.rr.com.