Subject:
Title
Resolution approving the issuance of multi-family housing revenue bonds by Brevard County Housing Finance Authority (Millennia Housing Project)
End
Fiscal Impact:
None
Dept/Office:
County Attorney’s Office
Requested Action:
Recommendation
The Brevard County Housing Finance Authority (the “Authority”) is requesting that the Board approve a Resolution to allow the Authority to apply for an allocation with the Florida Division of Bond Finance and to allow the issuance by the Authority of multi-family housing revenue bonds to finance the acquisition, rehabilitation and equipping of Jupiter Ridge, Armstrong Glen and Sandpoint Village (collectively the “Millennia Project”).
End
Summary Explanation and Background:
The Authority received an application from Brevard FL TC, LP (Millennia Housing Development, Ltd., as developer), for the issuance of multi-family housing revenue bonds in an amount not to exceed $24,840,000 to finance the acquisition, rehabilitation and equipping of the Project. The Project consists of the rehabilitation of three existing apartment complexes: Jupiter Ridge (formerly Arch Creek Run), 173 Rachel Street, Melbourne, Florida, containing 96 units (52 one bedroom, 37 two bedroom and 7 three bedroom apartments), Armstrong Glen (formerly Cocoa Lakes), 201 St. Clair Drive, Cocoa, Florida, containing 50 units (18 one bedroom, 20 two bedroom and 12 three bedroom apartments) and Sand Point Village (formerly Forest Park South) 512 Rockpit Road, Titusville, Florida, containing 68 units (16 one bedroom, 16 two bedroom and 36 three bedroom apartments), all of which will be rented to families. A Land Use Restriction Agreement encumbering the property will require that a minimum of 40% of the apartment units will be set aside and available only to persons earning less than 60% of median income, for as long as the financing is outstanding, or for a term of 15 years, whichever is longer.
On March 25, 2020, the Authority held a public hearing, following proper publication of notice, for the purpose of receiving public input on the proposed project and bond issuance. A report of the public comments received is attached. In order to issue tax exempt bonds for the Project, the Authority must apply for and receive an allocation from the State Regional Pool between prior to June 30, 2020. Brevard County is in Region 17, with Volusia County, which shares a total annual allocation of approximately $57,644,854.
The tax-exempt financing will be in the form of a construction/permanent loan. As a condition of approval, the County’s financial advisor has reviewed the project, verified that the financing meets or exceeds the Guidelines of the Authority, and anticipates the funding will be within the County’s debt issuance guidelines if it remains at the proposed rates. (See attachment).
The Board's approval of the issuance of the Bonds by the Authority to finance costs of the Project is required by applicable federal tax law.
The County’s outside bond counsel has reviewed the project and stated the following: “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 Bond.” (See attachment.)
Cost Benefit Analysis:
This issue will provide funds to finance the acquisition, rehabilitation and equipping of 214 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.
Contact Person: Angela A. Abbott, 264-0334; angelaabbott@cfl.rr.com; Steven E. Miller, (813) 281-2222; smiller@ngn-tampa.com <mailto:smiller@ngn-tampa.com>; Jay Glover, PFM Financial Advisors LLC, (407) 406-5760; gloverj@pfm.com
Contact:
Phone/e-mail:
Clerk to the Board Instructions:
Return signed Resolution to CAO