Title:
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Approve and authorize the Chairman to execute the State Housing Initiatives Partnership (SHIP) Program First Amendment to the Developer Agreement and the Restated Subordination Agreement with Monroe Place, LLC, for the development of an 80-unit affordable multi-family rental development for persons 55 years of age or older. Countywide (Stacey Smithwick, Community Development Division Manager)
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Division:
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Community Services - Community Development
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Authorized By:
Allison Thall, Community Services Director
Contact/Phone Number:
Stacey Smithwick/407-665-2362
Background:
Seminole County receives an annual allocation of State Housing Initiatives Partnership Program (SHIP) funds, for the purpose of creating affordable housing for Seminole County residents. In the development of the triennial Local Housing Assistance Plan (LHAP), strategies have been established to ensure the local affordable homeownership and rental housing needs are met.
On July 27, 2022, Seminole County Community Services Department awarded FY2022 SHIP multi-family rental housing funds in the amount of $494,644 to Monroe Place, LLC, to assist with the hard construction cost of an 80-unit affordable multi-family senior rental development for persons 55 years of age or older. The Developer closed their 3.00% floating interest rate construction loan on March 8, 2022 and began construction shortly thereafter. However, the project experienced numerous unforeseen development challenges that significantly increased the development cost and warranted the use of the Developer’s $704,940 budgeted contingency funds. A significant impact included the construction loan interest rate increasing monthly to 7.81%, more than 2.5 times the underwritten rate. In addition, the project did not qualify for the Florida Housing Finance Authority’s Construction Housing Inflation Response Program (CHIRP), created to assist Developers with inflation related challenges, as the Developer began construction prior to the creation of the CHIRP Program.
On August 27, 2023, Seminole County Community Services Department issued a solicitation seeking applications to fund shovel-ready multi-family rental housing projects using SHIP FY2023 funds. The purpose of the FY2023 SHIP Request for Applications (RFA) was to address the unmet affordable rental housing needs by funding the rehabilitation, redevelopment, and/or new construction of affordable units, with or without acquisition countywide. This solicitation was open to both for-profit and non-profit developers.
Monroe Place, LLC applied for an additional $515,000 to complete the 80-unit rental project. The Review Committee scored the application and recommended an additional $400,000 for hard construction cost to complete the project. The amendment to the Developer Agreement is to increase the funding amount from $494,644 to $894,644. Additionally, the construction lender requires the execution of an amended Subordination Agreement with the increased funding amount.
Requested Action:
Staff requests the Board approve and authorize the Chairman to execute the State Housing Initiatives Partnership (SHIP) Program First Amendment to the Developer Agreement and the Restated Subordination Agreement with Monroe Place, LLC, for the development of an 80-unit affordable multi-family rental development for persons 55 years of age or older.