FLORIDA HOUSING FINANCE CORPORATION
Board Meeting
October 28, 2022
Consent Items
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
A. Request RFA Waiver Approval of Loan Closing Deadline Extension and Waiver of
Extension Fee for Brownsville Transit Village V (RFA 2019-102 / 2020-023BD / 2019-570C)
Development Name: Brownsville Transit
Village V
Location: Miami-Dade County
Applicant/Borrower: Brownsville Village V,
Ltd.
Set-Aside(s):
40% @ 60% AMI (MMRB)
16.667% @ 30% AMI (CDBG-DR & 4%HC)
58.333% @ 60% AMI (CDBG-DR & 4%HC)
25.000% @ 80% AMI (CDBG-DR & 4%HC)
Developer/Principal: APC Brownsville V
Development, LLC. (Kenneth Naylor)
Demographic/Number of Units:
Workforce / 120 units
Requested Amounts:
$17,370,000 Multifamily Mortgage Revenue
Bonds (MMRB)
$3,900,000 Community Development Block
Grant – Disaster Recovery (CDBG-DR)
$2,250,000 CDBG-DR Viability Loan
$1,667,243 Annual Non-Competitive Housing
Credits (4% HC)
Development Category/Type:
New Construction/High Rise
1. Background/Present Situation
a) On July 30, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-102 for Community Development Block Grant –
Disaster Recovery to be used in conjunction with Tax-Exempt MMRB and Non-
Competitive Housing Credits in Counties Deemed Hurricane Recovery
Priorities.
b) On December 13, 2019, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities.
c) On April 17, 2020, the Board approved the Final Order resolving all pending
litigation pertaining to the RFA, allowing staff to proceed with all necessary
credit underwriting activities. Staff issued a preliminary commitment letter and
invitation to enter credit underwriting to the Applicant on April 27, 2020. The
Acceptance was acknowledged on May 4, 2020.
d) On March 12, 2021, the Board approved the request to extend the firm loan
commitment issuance deadline from May 4, 2021 to November 4, 2021.
e) On September 10, 2021, the Board approved the RFA Waiver to grant a second
request to extend the firm loan commitment issuance deadline from
November 4, 2021 to May 4, 2022.
f) On January 21, 2022, the Board approved the final credit underwriting report
and authorizing resolutions and directed staff to proceed with loan closing
activities.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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g) On June 17, 2022, the Board approved the Applicant’s requested loan closing
extension from July 25, 2022 to November 1, 2022 and waiver of the extension
fee.
h) On August 5, 2022, the Board approved the Borrower’s request to increase the
MMRB amount from $16,510,000 to $17,370,000, a CDBG-DR Viability Loan
in the amount of $2,250,000, and the execution of the amended authorizing
resolutions.
i) On October 11, 2022, Borrower requested an RFA Waiver for a second loan
closing extension from November 1, 2022 through February 1, 2023 and to
waive the CDBG-DR extension fee. The request was submitted due to ‘HUD’s
underwriting timeline for a firm commitment of the FHA 221(d)(4) loan
continues to delay the projected closing date of mid-November 2022.’ (
Exhibit
A). The Developer remains committed to the construction and completion of the
Development by the 2024 deadline.
2. R
ecommendation
a) Approve the RFA Waiver request to grant a second loan closing extension from
November 1, 2022 until February 1, 2023, and continue with loan closing
activities, subject to further approvals and verifications by the Credit
Underwriter, Bond Counsel, Special Counsel, and appropriate Florida Housing
Staff. Additionally, due to the funding source and nature of the CDBG-DR
funds, waive the extension fee.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
3
B. Request Approval of Loan Closing Deadline Extension and Waiver of Extension Fee for
Lower Keys Scattered Sites (RFA 2019-101 / 2020-003D)
Development Name: Lower Keys Scattered
Sites
Location: Monroe County
Applicant/Borrower: Monroe County Housing
Authority
Set-Aside(s):
90% @ 80% AMI (Workforce)
10% @ 25% AMI (ELI)
50% of ELI Units or 5% of Total Units
(LINK)
Developer/Principal: Monroe County Housing
Authority/Randy Sterling
Demographic/Number of Units:
Disaster Relief/Workforce/12 units
Requested Amounts:
Community Development Block Grant –
Disaster Relief (CDBG-DR) $3,342,602
(Development Funding); $1,353,989 (Site
Acquisition Funding)
Development Category/Type: New
Construction/Single Family Homes
1. Background/Present Situation
a) On July 2, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-101 for Community Development Block Grant –
Disaster Recovery Financing for Workforce Housing for Hurricane Recovery in
Monroe County.
b) On September 20, 2019, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities for the four (4) eligible Applicants.
c) On October 1, 2019, staff issued a preliminary commitment letter. In accordance
with the RFA, the Developer had an October 1, 2020 deadline to complete the
credit underwriting report and be issued a firm loan commitment. Pursuant to
the RFA the Applicants may request one extension of the deadline of up to six
months.
d) On September 4, 2020, the Board approved an extension of the October 1, 2020
firm loan commitment issuance deadline for six months until April 1, 2021, as
well as waived the CDBG-DR extension fee.
e) On March 12, 2021, the Board approved the request to waive the RFA
requirement and granted an additional six-month extension on the firm loan
commitment issuance deadline until October 1, 2021, as well as waived the
CDBG-DR extension fee.
f) On July 30, 2021, the Board approved the request to waive the RFA requirement
and granted an additional six-month extension on the firm loan commitment
issuance deadline from October 1, 2021 until April 1, 2022, as well as waived
the CDBG-DR extension fee.
g) On January 21, 2022, the Board approved the request to waive the RFA
requirement and granted an additional three-month extension on the firm loan
commitment issuance deadline from April 1, 2022 until July 1, 2022, as well as
waived the CDBG-DR extension fee.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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h) On June 17, 2022, the Board approved the request to waive the RFA
requirement and granted an additional four-month extension on the firm loan
commitment issuance deadline from July 1, 2022 until November 1, 2022, as
well as waived the CDBG-DR extension fee.
i) On August 5, 2022, the Board approved the final credit underwriting report and
directed staff to proceed with loan closing activities.
j) On September 23, 2022, Borrower requested a loan closing extension from
December 7, 2022 until April 7, 2023, as well as to waive the CDBG-DR loan
closing extension fee (Exhibit B
). The request was submitted due the need to
switch the modular manufacturer as a result of “the current construction
environment.” The Developer remains committed to the construction and
completion of the Development by the 2024 deadline.
2. R
ecommendation
a) Approve the loan closing extension deadline from December 7, 2022 to April 7,
2023. Additionally, due to the funding source and nature of the CDBG-DR
funds, approve the request to waive the extension fee.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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C. Request Approval of CDBG-DR Credit Underwriting Report for Monroe County Scattered
Sites (RFA 2019-101 / 2020-004D)
Location: Monroe County
Authority
Set-Aside(s):
90% @ 80% AMI (Workforce)
10% @ 25% AMI (ELI)
50% of ELI Units or 5% of Total Units
(LINK)
Demographic/Number of Units:
Disaster Relief/Workforce/20 units
Community Development Block Grant –
Disaster Relief (CDBG-DR) $5,084,048
(Development Funding); $2,015,000 (Site
Development Category/Type: New
Construction/Single Family Homes
1. Background/Present Situation
a) On July 2, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-101 for Community Development Block Grant –
Disaster Recovery Financing for Workforce Housing for Hurricane Recovery in
Monroe County.
b) On September 20, 2019, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities for the four (4) eligible Applicants.
c) On October 1, 2019, staff issued a preliminary commitment letter. In accordance
with the RFA, the Developer had an October 1, 2020 deadline to complete the
credit underwriting report and be issued a firm loan commitment. Pursuant to
the RFA the Applicants may request one extension of the deadline of up to six
months.
d) On September 4, 2020, the Board approved an extension of the October 1, 2020
firm loan commitment deadline for six months until April 1, 2021.
e) On March 12, 2021, the Board approved the developer’s request to waive the
RFA requirement and grant an additional six-month extension on the firm loan
commitment deadline until October 1, 2021 due to conditions created by the
COVID-19 pandemic, as well as approved the waiver of the extension fee.
f) On July 30, 2021, the Board approved a waiver of the RFA requirement to grant
an additional six-month extension on the firm loan commitment deadline from
October 1, 2021 until April 1, 2022, as well as waived the extension fee.
g) On January 21, 2022, the Board approved to waive the RFA requirement and
granted an additional three-month extension on the firm loan commitment
deadline from April 1, 2022 until July 1, 2022, as well as waived the extension
fee.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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h) On June 17, 2022, the Board approved the request to waive the RFA
requirement and grant an additional four-month extension on the firm loan
commitment deadline from July 1, 2022 until November 1, 2022, as well as
waive the extension fee.
i) On October 20, 2022, staff received a final credit underwriting report with a
positive recommendation for CDBG-DR funding in the amount of $7,099,048
(Exhibit C
). Staff has reviewed this report and finds that the development meets
all requirements of the RFA.
2. R
ecommendation
a) Approve the final credit underwriting report and direct staff to proceed with
issuance of a firm loan commitment and loan closing activities subject to further
approvals and verifications by the Credit Underwriter, Special Counsel, and the
appropriate Florida Housing Staff.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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D. Request Approval of Loan Closing Deadline Extension and Waiver of Extension Fee for
Northside Transit Village III (RFA 2019-102 / 2020-024BD / 2019-566C)
Location: Miami-Dade County
Ltd.
Set-Aside(s):
40% @ 60% AMI (MMRB)
48% @ 70% AMI (CDBG-DR & 4% HC)
36% @ 60% AMI (CDBG-DR & 4% HC)
16% @ 30% AMI (CDBG-DR & 4% HC)
Demographic/Number of Units:
Disaster Relief/Workforce/200 units
$30,800,000 Multifamily Mortgage Revenue
Bonds (MMRB)
$7,300,000 Community Development Block
Grant – Disaster Relief (CDBG-DR)
$2,250,000 CDBG-DR Viability Loan
$2,943,047 Non-Competitive Housing Credits
Development Category/Type:
New Construction/High Rise
1. Background/Present Situation
a) On July 30, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-102 for Community Development Block Grant –
Disaster Recovery to be used in conjunction with Tax-Exempt MMRB and Non-
Competitive Housing Credits in Counties Deemed Hurricane Recovery
Priorities.
b) On April 17, 2020, the Board approved the final scores and recommendations
for the RFA and directed staff to proceed with all necessary credit underwriting
activities for the thirteen (13) eligible Applicants.
c) On April 27, 2020, staff issued a preliminary commitment letter. In accordance
with the RFA, the Developer had a May 4, 2021 deadline to complete the credit
underwriting report and be issued a firm loan commitment. Pursuant to the RFA,
the Applicant may request one extension of the deadline of up to six months.
d) On March 12, 2021, the Board approved the extension of the first firm loan
commitment deadline through November 4, 2021 and waiver of the applicable
CDBG-DR extension fee due to conditions created by the COVID-19 pandemic.
e) On September 10, 2021, the Board approved the RFA Waiver to grant a second
six-month extension of the firm loan commitment deadline from November 4,
2021 until May 4, 2022, and to waive the CDBG-DR extension fee.
f) On April 29, 2022, the Board approved the final credit underwriting report and
directed staff to proceed with loan closing activities.
g) On September 16, 2022, the Board approved the credit underwriting update
letter increasing the MMRB amount to $30,800,000, a CDBG-DR Viability
Loan in the amount of $2,250,000, and execution of the amended authorizing
resolutions.
COMMUNITY DEVELOPMENT BLOCK GRANT – DISASTER RELIEF (CDBG-DR)
Consent
October 28, 2022 Florida Housing Finance Corporation
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h) On September 7, 2022, Borrower requested a loan closing extension from
November 2, 2022 through February 2, 2023 and to waive the CDBG-DR
extension fee. The request was submitted due to ‘HUD’s underwriting timeline
for a firm commitment of the FHA 221(d)(4) loan continues to delay the
projected closing date of mid-November 2022.’ (Exhibit D
). The Developer
remains committed to the construction and completion of the Development by
the 2024 deadline.
2. R
ecommendation
a) Approve the loan closing extension request from November 2, 2022 until
February 2, 2023, and continue with loan closing activities, subject to further
approvals and verifications by the Credit Underwriter, Bond Counsel, Special
Counsel, and appropriate Florida Housing Staff. Additionally, due to the funding
source and nature of the CDBG-DR funds, waive the extension fee.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. HOUSING CREDITS
A. Request Approval of Applicant and Developer Entity Structure Changes for The Courtney
(RFA 2021-204/2022-235C)
Development Name: The Courtney
Location: Manatee County
Applicant/Borrower: Courtney Senior
Housing Limited Partnership
Set-Asides: 20% @ 30% AMI and 80% @
60% AMI
Developer/Principal: National Church
Residences/Matthew D. Rule
Demographic/Number of Units: Elderly,
Non-ALF/72
Requested Amounts: 9% Housing Credits -
$790,000
Development Category/Type: Acquisition
and Preservation/Garden Apartments
1. Background/Present Situation
a) Courtney Senior Housing Limited Partnership (“Applicant”) applied for and was
awarded funding from Request for Applications (RFA) 2021-204 for Housing
Credit Financing for the Preservation of Existing Affordable Multifamily
Housing Developments. The funds are being utilized to finance the acquisition
and preservation of a 72-unit Elderly, Non-ALF, development in Manatee
County. On March 16, 2022, staff issued an invitation to the Applicant to enter
credit underwriting, and subsequently executed a Carryover Allocation
Agreement on July 20, 2022.
b) On October 3, 2022, Florida Housing received a letter from the Applicant
requesting (1) to make a material change to the Applicant entity structure and
(2) to replace certain Officers and Directors for Natural Church Residences, the
Developer. The letter and the current and proposed Applicant and Developer
Principal Disclosure Forms are provided as Exhibit A
.
c) In regard to the Applicant structure, the Applicant proposes to insert National
Church Residences of Courtney, Inc (“NCRCI”) as the new .0100% General
Partner in the place of National Church Residences of Courtney, LLC
(“NCRCL”) as the current .0100% General Partner. National Church
Residences is the Sole Member of NCRCI as described in the Articles of
Incorporation. The Executive Director of NCRCI is Matthew D. Rule and the
following are the Officers/Directors: Janet Smith Meeks, Robert J. Maloney,
Lynn Anderson, James R. Moats, Steven T. Bodkin, Robert S. Walter, Sonya M.
Brown and Julie M. Woolley.
d) In regard to the Developer (National Church Residences) Principal changes, the
following Officers/Directors will be removed: Anne Kaiser, Eric Borders,
Michael E. Flowers, Barbara Smoot, Danielle A. Willis, John M. Weigand, June
Douglas Himes, III, Megan Kelley, Sarah Dalton Ortlieb, Keith I Spalsbury, and
Cynthia Steen Young. Meanwhile the following Officers/Directors will be
added: Geoff Biehn, Tinting Li, Larry Crowell, Sean de Four, Jami Dewolf,
Amilkar Marchena, Stacy Walton.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
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e) The Applicant requests this change to its Applicant structure to maintain its
current property tax exemption. It must be organized as a Florida non-profit
corporation to maintain this status. The Developer Principal changes are a matter
of changes in Officers and Directors of the non-profit Developer.
f) Per the RFA, the Applicant entity shall be the recipient of the Housing Credits
and cannot be changed in any way (materially or non-materially) until after the
Carryover Allocation Agreement is in effect. Once the Carryover Allocation
Agreement has been executed by all parties, (a) replacement of the Applicant or
a material change in the ownership structure of the named Applicant will require
Board approval prior to the change and (b) any non-material change in the
ownership structure of the named Applicant will require Corporation approval
prior to the change.
g) Furthermore, the RFA goes on to say that the Principals of each Developer
identified in the Application, including all co-Developers, may be changed only
by written request of an Applicant to Corporation staff and approval of the
Board after the Applicant has been invited to enter credit underwriting. In
addition, any allowable replacement of an experienced Principal of a Developer
entity must meet the experience requirements that were met by the original
Principal.
h) Matthew D. Rule met the General Development experience in the initial
Application and will remain a Principal of the Developer.
i) Staff has reviewed this request and finds that all applicable requirements of the
RFA have been met.
2. Recommendation
a) Approve the request to change the Applicant entity structure as described above
as well as the Officer/Director changes for the Developer, National Church
Residences. This recommendation is contingent on staff receipt of the following
documents for National Church Residences of Courtney, Inc: (1) The IRS
determination letter; (2) A description/explanation of how the Non-Profit entity
is substantially and materially participating in the management and operation of
the Development (i.e., the role of the Non-Profit); (3) The names and addresses
of the members of the governing board of the Non-Profit entity; and (4) The
articles of incorporation demonstrating that one of the purposes of the Non-
Profit entity is to foster low-income housing.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
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B. Request Approval to Replace Co-Developer and Approval of RFA Waiver for Applicant
Organizational Change Prior to Carryover Allocation Agreement for Madison Oaks West
(RFA 2021-201/2022-032C)
Development Name: Madison Oaks West
Location: Marion County
Applicant/Borrower: Madison Oaks West,
LLC
Set-Asides: 10% @ 40% AMI
90% @ 60% AMI
Developer/Principal: American Residential
Communities, LLC/Patrick E. Law
New South Residential, LLC / Lindsey A.
Sultan
Demographic/Number of Units: Family/96
Requested Amounts: $1,700,000 Housing
Credits
Development Category/Type:
New Construction/Garden
1. Background/Present Situation
a) Madison Oaks West, LLC (“Applicant”) applied for and was awarded funding
from Request for Applications (RFA) 2021-201 for Housing Credit Financing
For Affordable Housing Developments Located in Medium and Small Counties.
The funds are being utilized to finance the new construction of a 96-unit Family
development in Marion County. On May 5, 2022, staff issued an invitation to
the Applicant to enter credit underwriting. Subsequently, on May 27, 2022, the
Applicant applied for CHIRP funding and is presently in credit underwriting.
The Carryover Allocation Agreement will be issued upon completion of credit
underwriting.
b) On October 5, 2022, Florida Housing received a letter from the Applicant
requesting to make changes to the Applicant and co-Developer organizational
structures prior to the Carryover Allocation Agreement. The request letter and
current and proposed Principal Disclosure Forms for the Applicant and co-
Developers are provided as Exhibit B
.
c) In regard to the Applicant structure, the Applicant proposes to replace Patrick E.
Law, Manager and Member of Madison Oaks West Apartments, LLC, the Non-
Investor Member of the Applicant. Mr. Law will be replaced with PEL Madison
Oaks West, LLC (99.980% Managing Member), MADPEL, LLC (.0100%
Member) and NSR MOW, LLC (.0100% Member). Ownership of PEL
Madison Oaks West, LLC will consist of Patrick E. Law Revocable Trust
(99.990% Managing Member) and Lindsey Sultan (.0100% Member).
Ownership of MADPEL, LLC will consist of Patrick E. Law Revocable Trust
(20% Managing Member), Lindsey Sultan (20% Member), Kathryn Breslow
(20% Member), Edward Otte (20% Member), and James Law (20% Member).
Ownership of NSR MOW, LLC will consist of Stacy Banach (33.34%
Managing Member), Michael Oliver (33.33% Managing Member), and Lindsey
Sultan (33.33% Managing Member). The beneficiary and trustee of the Patrick
E. Law, Revocable Trust is Patrick E. Law.
d) In regard to the co-Developer structure, the Applicant proposes to replace co-
Developer American Residential Communities, LLC (Patrick E. Law as sole
Manager and Member) with ARD Madison Oaks West, LLC. ARD Madison
Oaks West, LLC will be owned by PLAW MOW, LLC (Managing Member)
and MADPEL, LLC (Managing Member). Ownership of PLAW MOW, LLC
will consist of Patrick E. Law, Revocable Trust (Managing Member) and
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
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MADPEL (Managing Member). Ownership of MADPEL will consist of Patrick
E. Law, Revocable Trust (Managing Member), Lindsey Sultan (Member),
Kathryn Breslow (Member), Edward Otte (Member), and James Law (Member).
Co-Developer, New South Residential, LLC will remain unchanged.
e) The Applicant requests the change to the Applicant organizational structure to
insert single purpose entities in order to provide K1 to the members of the Non-
Investor Member of the Applicant Madison Oaks West, LLC. The Applicant
requests to make these changes prior to the Carryover Allocation Agreement due
to the timing requirements associated with the CHIRP application. The
Carryover Allocation Agreement cannot be issued until the Credit Underwriting
Report is completed; however, the CUR cannot be completed until the Applicant
and Developer changes are approved. The co-Developer change was requested
because the Applicant utilized American Residential Communities as the
developer entity for all applications but decided it would be better to handle
each transaction with a single-purpose entity. The Applicant has been notified
that moving forward, the Application should be submitted with intended
Developer structures reflected in the Application.
f) Per the RFA, the Applicant entity shall be the recipient of the Housing Credits
and cannot be changed in any way (materially or non-materially) until after the
Carryover Allocation Agreement is in effect. Once the Carryover Allocation
Agreement has been executed by all parties, (a) replacement of the Applicant or
a material change in the ownership structure of the named Applicant will require
Board approval prior to the change, and (b) any non-material change in the
ownership structure of the named Applicant will require Corporation approval
prior to the change.
g) The RFA also states that the Principals of each Developer identified in the
Application, including all co-Developers, may be changed only by written
request of an Applicant to Corporation staff and approval of the Board after the
Applicant has been invited to enter credit underwriting. In addition, any
allowable replacement of an experienced Principal of a Developer entity must
meet the experience requirements that were met by the original Principal.
h) Patrick E. Law met the Developer Experience requirement of the RFA and will
remain a Principal of the co-Developer ARD Madison Oaks West, LLC.
i) Furthermore, 67.48.004(3)(a) F.A.C. states:
(1) For the SAIL, HOME and Housing Credit Programs, notwithstanding
any other provision of these rules, the following items as identified by
the Applicant in the Application must be maintained and cannot be
changed by the Applicant after the applicable submission, unless
provided otherwise below:
(a) (a) Name of Applicant or Developer entity(s); notwithstanding the
foregoing, the name of the Applicant or Developer entity(s) may be
changed only by written request of an Applicant to Corporation staff
and approval of the Corporation after the Applicant has been invited to
enter credit underwriting. With regard to said approval, the
Corporation shall consider the facts and circumstances of each
Applicant’s request, inclusive of validity and consistency of
Application documentation.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
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j) Staff has reviewed this request and finds that the Development meets all
applicable requirements of the RFA.
2. Recommendation
a) Approve (1) the RFA Waiver to change the Applicant organizational structure
prior to the issuance of the Carryover Allocation Agreement and (2) the request
to replace one of the co-Developer entities as described above.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
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C. Request Approval to Replace Co-Developer and Approval of RFA Waiver for Applicant
Organizational Change Prior to Carryover Allocation Agreement for Madison Grove (RFA
2021-201/2022-060C)
Development Name: Madison Grove
Location: Osceola County
Applicant/Borrower: Madison Grove,
LLC
Set-Asides: 10% @ 30% AMI
90% @ 60% AMI
Developer/Principal: American
Residential Communities, LLC/Patrick E.
Law
New South Residential, LLC / Lindsey A.
Sultan
Demographic/Number of Units: Elderly,
Non-ALF/80
Requested Amounts: $1,700,000 Housing
Credits
Development Category/Type:
New Construction/High-Rise
1. Background/Present Situation
a) Madison Grove, LLC (“Applicant”) applied for and was awarded funding from
Request for Applications (RFA) 2021-201 for Housing Credit Financing For
Affordable Housing Developments Located in Medium and Small Counties.
The funds are being utilized to finance the new construction of an 80-unit
Elderly, Non-ALF, development in Osceola County. On May 5, 2022, staff
issued an invitation to the Applicant to enter credit underwriting. Subsequently,
on May 27, 2022, the Applicant applied for CHIRP funding and is presently in
credit underwriting. The Carryover Allocation Agreement will be issued upon
completion of credit underwriting.
b) On October 5, 2022, Florida Housing received a letter from the Applicant
requesting to make changes to the Applicant and co-Developer organizational
structures prior to the Carryover Allocation Agreement. The request letter and
current and proposed Principal Disclosure Forms for the Applicant and co-
Developers are provided as Exhibit C
.
c) In regard to the Applicant structure, the Applicant proposes to replace Patrick E.
Law, Manager and Member of Madison Grove Apartments, LLC, the Non-
Investor Member of the Applicant. Mr. Law will be replaced with PEL Madison
Grove, LLC (99.980% Managing Member), MADPEL, LLC (.0100% Member)
and NSR MG, LLC (.0100% Member). Ownership of PEL Madison Grove,
LLC will consist of Patrick E. Law Revocable Trust (99.990% Managing
Member) and Lindsey Sultan (.0100% Member). Ownership of MADPEL, LLC
will consist of Patrick E. Law Revocable Trust (20% Managing Member),
Lindsey Sultan (20% Member), Kathryn Breslow (20% Member), Edward Otte
(20% Member), and James Law (20% Member). Ownership of NSR MG, LLC
will consist of Stacy Banach (33.34% Managing Member), Michael Oliver
(33.33% Managing Member), and Lindsey Sultan (33.33% Managing Member).
The beneficiary and trustee of the Patrick E. Law, Revocable Trust is Patrick E.
Law.
d) In regard to the co-Developer structure, the Applicant proposes to replace co-
Developer American Residential Communities, LLC (Patrick E. Law as sole
Manager and Member) with ARD Madison Grove, LLC. ARD Madison Grove,
LLC will be owned by PLAW MG, LLC (Managing Member) and MADPEL,
LLC (Managing Member). Ownership of PLAW MG, LLC will consist of
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
7
Patrick E. Law, Revocable Trust (Managing Member) and MADPEL (Managing
Member). Ownership of MADPEL will consist of Patrick E. Law, Revocable
Trust (Managing Member), Lindsey Sultan (Member), Kathryn Breslow
(Member), Edward Otte (Member), and James Law (Member). Co-Developer,
New South Residential, LLC will remain unchanged.
e) The Applicant requests the change to the Applicant organizational structure to
insert single purpose entities in order to provide K1 to the members of the Non-
Investor Member of the Applicant Madison Grove, LLC. The Applicant
requests to make these changes prior to the Carryover Allocation Agreement due
to the timing requirements associated with the CHIRP application. The
Carryover Allocation Agreement cannot be issued until the Credit Underwriting
Report is completed; however, the CUR cannot be completed until the Applicant
and Developer changes are approved. The co-Developer change was requested
because the Applicant utilized American Residential Communities as the
developer entity for all applications but decided it would be better to handle
each transaction with a single-purpose entity. The Applicant has been notified
that moving forward, the Application should be submitted with intended
Developer structures reflected in the Application.
f) Per the RFA, the Applicant entity shall be the recipient of the Housing Credits
and cannot be changed in any way (materially or non-materially) until after the
Carryover Allocation Agreement is in effect. Once the Carryover Allocation
Agreement has been executed by all parties, (a) replacement of the Applicant or
a material change in the ownership structure of the names Applicant will require
Board approval prior to the change, and (b) any non-material change in the
ownership structure of the named Applicant will require Corporation approval
prior to the change.
g) The RFA also states that the Principals of each Developer identified in the
Application, including all co-Developers, may be changed only by written
request of an Applicant to Corporation staff and approval of the Board after the
Applicant has been invited to enter credit underwriting. In addition, any
allowable replacement of an experienced Principal of a Developer entity must
meet the experience requirements that were met by the original Principal.
h) Patrick E. Law met the Developer Experience requirement of the RFA and will
remain a Principal of the co-Developer ARD Madison Grove, LLC.
i) Furthermore, 67.48.004(3)(a) F.A.C. states:
(1) For the SAIL, HOME and Housing Credit Programs, notwithstanding
any other provision of these rules, the following items as identified by
the Applicant in the Application must be maintained and cannot be
changed by the Applicant after the applicable submission, unless
provided otherwise below:
(a) (a) Name of Applicant or Developer entity(s); notwithstanding the
foregoing, the name of the Applicant or Developer entity(s) may be
changed only by written request of an Applicant to Corporation staff
and approval of the Corporation after the Applicant has been invited to
enter credit underwriting. With regard to said approval, the
Corporation shall consider the facts and circumstances of each
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
8
Applicant’s request, inclusive of validity and consistency of
Application documentation.
j) Staff has reviewed this request and finds that the Development meets all
applicable requirements of the RFA.
2. Recommendation
a) Approve (1) the RFA Waiver to change the Applicant organizational structure
prior to the issuance of the Carryover Allocation Agreement and (2) the request
to replace one of the co-Developer entities as described above.
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
9
D. Request Approval of Applicant Entity Organizational Structure Changes and Replacement
of Co-Developer for Bonair Towers (RFA 2020-204 /2021-044C)
Development Name: Bonair Towers
Location: Lee County
Applicant/Borrower: Bonair Towers,
LLLP
Set-Asides: 20% at 33% AMI
79% at 60% AMI
Developer/Principal: Bonair Towers
Developer, LLC / Brett Green
Developer/Principal: Southwest Florida
Affordable Housing Choice Foundation,
Inc. / Marcia Davis
Demographic/Number of Units: Elderly
Non-ALF / 101
Requested Amounts: $1,484,000
Development Category/Type: Acquisition
and Preservation / High Rise
1. Background/Present Situation
a) Bonair Towers, LLLP (“Applicant”) applied for and was awarded funding from
Request for Applications (RFA) 2020-204 for Housing Credit Financing for the
Preservation of Existing Affordable Multifamily Housing Developments. The
funds are being utilized to finance the acquisition and preservation of a 101-unit
Elderly Non-ALF development in Lee County. On February 3, 2021, staff
issued an invitation to the Applicant to enter credit underwriting, and
subsequently executed a 2021 Carryover Allocation Agreement on June 8, 2021
for a credit allocation of $1,484,000. The Applicant has applied for additional
9% housing credits through the CHIRP ITP and is currently in underwriting to
size the award.
b) On October 12, 2022, Florida Housing received a letter from the Applicant
requesting (1) to make a material change to the Applicant entity structure and
(2) to replace one of the co-Developers. The letter and the current and proposed
Principal Disclosure Forms are provided as Exhibit D
.
c) In regard to the Applicant structure, the Applicant proposes to make two
changes. The first proposal is to replace Archway Bonair, LLC as the 0.0049%
Non-Investor Limited Partner of the Applicant with Bonair Towers MBS
Member, LLC (“Bonair MBS”) as the 0.0051% Non-Investor Limited Partner of
the Applicant. The Sole Member and Manager of Bonair MBS is MBS Fort
Myers Redevelopment Corporation (MBS Fort Myers). The Shareholders of
MBS Fort Myers are Vincent Bennett (50% Shareholder) and Richard Baron
(50% Shareholder). The Officer/Directors of MBS Fort Myers are Vincent
Bennett (Officer/Director and Executive Director), Richard Baron
(Officer/Director and Executive Director), Hillary Zimmerman
(Officer/Director), Kim Hartmann (Officer/Director), Brock Armstrong
(Officer/Director), and Jerry Stone (Officer/Director). This change is being
made because Archway Bonair, LLC is affiliated with the co-Developer that is
being removed from the transaction.
d) The second change proposed to the Applicant structure would replace Southwest
Florida Affordable Housing Choice Foundation, Inc. as the 0.0051% General
Partner of the Applicant with Bonair Towers Nonprofit GP, Inc. as the 0.0049%
General Partner of the Applicant. The Officers/Directors of Bonair Towers
Nonprofit GP, Inc. will remain the same as the previous General Partner
HOUSING CREDITS
Consent
October 28, 2022 Florida Housing Finance Corporation
10
organization (Southwest Florida Affordable Housing Choice Foundation, Inc.).
While not directly mentioned in the letter, it should also be noted that Archway
Partners, LLC is being replaced with Hunt Capital Partners, LLC as the 99.99%
Investor Member.
e) In regard to the replacement of the co-Developer, Bonair Towers Developer,
LLC will be replaced with Bonair Towers MBS Member, LLC. The ownership
of Bonair Towers MBS Member, LLC is described above in the Applicant entity
because Bonair Towers MBS Member, LLC will also serve as the 0.0051%
Non-Investor Limited Partner of the Applicant.
f) Per the RFA, the Applicant entity shall be the recipient of the Housing Credits
and cannot be changed in any way (materially or non-materially) until after the
Carryover Allocation Agreement is in effect. Once the Carryover Allocation
Agreement has been executed by all parties, (a) replacement of the Applicant or
a material change in the ownership structure of the named Applicant will require
Board approval prior to the change, and (b) any non-material change in the
ownership structure of the named Applicant will require Corporation approval
prior to the change.
g) The RFA goes on to state that the Principals of each Developer identified in the
Application, including all co-Developers, may be changed only by written
request of an Applicant to Corporation staff and approval of the Board after the
Applicant has been invited to enter credit underwriting. In addition, any
allowable replacement of an experienced Principal of a Developer entity must
meet the experience requirements that were met by the original Principal.
h) Bruce Strayhorn met the Developer experience requirements in the RFA and
will remain a Principal of co-Developer, Southwest Florida Affordable Housing
Choice Foundation, Inc.
i) It should also be noted that with the removal of Southwest Florida Affordable
Housing Choice Foundation, Inc, the entity that qualified the Development as a
Non-Profit Applicant has been removed. The Applicant has provided all
required documentation for Bonair Towers Nonprofit GP, Inc. so that the
Applicant will continue to qualify as a Non-Profit Applicant.
j) Staff has reviewed this request and finds that the Development meets all
applicable requirements of the RFA.
2. Recommendation
a) Approve the request to change the Applicant organizational structure and
replace the co-Developer as described above.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. LEGAL
A. Rule Development for Chapter 67-52, F.A.C.
1. Background/Present Situation
a) Chapter 67-52, entitled Corporation Clerk, contains some outdated references
and procedures regarding the filing of documents with the Corporation. Staff
would like to begin the process to update and amend this rule chapter.
2. Recommendation
a) Authorize staff to proceed with the rule development process for Chapter 67-52,
F.A.C.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
2
B. In Re: Pinellas Affordable Living, Inc. - FHFC Case No. 2022-054VW (RFA 2021-102/App.
No. 2021-299S)
Development Name: (“Development”):
Whispering Pines
Developer/Principal: (“Developer”):
Pinellas Affordable Living, Inc./Jack
Humburg, Boley Centers, Inc./Gary
MacMath
Number of Units: 20
Location: Pinellas County
Type: Garden Apartments/New
Construction
Set Asides: 20% at 33% AMI
80% at 60% AMI
Demographics: Persons with Special
Needs/Homeless
Funding: SAIL $4,350,585
ELI $296,000
1. Background
a) Petitioner successfully applied for State Apartment Incentive Loan (“SAIL”)
and Extremely Low Income (“ELI”) funding in RFA 2021-102 to assist in the
construction of a 20-unit housing development for Persons with Special Needs
named Whispering Pines in Pinellas County, Florida (the “Development”). On
October 10, 2022, Florida Housing received a Petition for Waiver of Rule 67-
48.0072(21)(b), Florida Administrative Code (the “Petition”) to allow Petitioner
to extend the loan closing deadline. A copy of the Petition is attached as
Exhibit
A.
2. Present Situation
a) Rule 67-48.0072(21)(b), Fla. Admin. Code, provides:
(b) For SAIL and HOME, unless stated otherwise in a competitive
solicitation, the firm loan commitment must be issued within twelve
(12) months of the Applicant’s acceptance to enter credit underwriting,
which may be automatically extended to the next scheduled meeting of
the Board of Directors that is after the twelve (12) month deadline.
Unless an extension is approved by the Corporation in writing, failure
to achieve issuance of a firm loan commitment by the specified
deadline shall result in withdrawal of the preliminary commitment.
Applicants may request one (1) extension of up to six (6) months,
which may be automatically extended to the next scheduled meeting of
the Board of Directors that is after the six (6) month extension deadline,
to secure a firm loan commitment. All extension requests must be
submitted in writing to the program administrator and contain the
specific reasons for requesting the extension and shall detail the time
frame to achieve a firm loan commitment. In determining whether to
grant an extension, the Corporation shall consider the facts and
circumstances of the Applicant’s request, inclusive of the
responsiveness of the Development team and its ability to deliver the
Development timely. The Corporation shall charge a non-refundable
extension fee of one (1) percent of each loan amount if the request to
extend the credit underwriting and firm loan commitment process
beyond the initial twelve (12) month deadline is approved. If an
approved extension is utilized, Applicants must pay the extension fee
not later than seven (7) Calendar Days after the original twelve (12)
month deadline. If, by the end of the extension period, the Applicant
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
3
has not received a firm loan commitment, then the preliminary
commitment shall be withdrawn.
b) Petitioner requests a waiver of the above cited Rule to allow Petitioner to extend
the loan closing deadline for the EHCL loan. Petitioner accepted an invitation
to credit underwriting on May 13, 2021, which provided a firm loan
commitment issuance deadline of May 13, 2022. On April 29, 2022, at
Petitioner’s request, the firm loan commitment issuance deadline was extended
from May 13, 2022 to November 13, 2022 by approval of Florida Housing
Finance Corporation’s Board of Directors (the “Board”). Petitioner now
requests an additional six-month extension of the firm loan commitment
issuance deadline from November 13, 2022 to May 13, 2023.
c) Petitioner states that current inflation caused some unexpected and unforeseen
delays as well as increases in construction costs which prompted the need for
additional resources and a further extension. In support thereof, Petitioner
asserts that it solicited competitive bids from three general contractors to comply
with secondary financing requirements imposed by the City of St. Petersburg.
According to Petitioner, the lowest bid received was approximately 25% higher
than originally anticipated resulting in increased constructions costs. In an effort
to keep the Development viable, Petitioner states that it has successfully
obtained additional funding from the City of St. Petersburg and is working with
Pinellas County to secure additional funding. According to Petitioner, the
Pinellas County funding requires approval by Pinellas County Commission,
which will not occur prior to November 13, 2022. Additionally, Petitioner
applied to Florida Housing’s Construction Housing Inflation Response Program
(“CHIRP”) and is still awaiting a determination on that funding.
d) Petitioner states that the waiver is necessary because the Development cannot
move forward without these additional funding sources. According to
Petitioner, denial of the waiver request would cause Pinellas County to lose the
benefit of these 20 affordable units.
e) On October 11, 2022, Notice of the Petition was published in the Florida
Administrative Register in Volume 48, Number 198. To date, Florida Housing
has received no comments concerning the Petition.
f) Section 120. 542(2), Florida Statutes provides in pertinent part:
Variances and waivers shall be granted when the person subject to the
rule demonstrates that the purpose of the underlying statute will be or
has been achieved by other means by the person and when application
of a rule would create a substantial hardship or would violate principles
of fairness.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
4
g) Granting the requested waiver would not impact other participants in funding
programs administered by Florida Housing, nor would it detrimentally impact
Florida Housing. Petitioner has demonstrated that it would suffer a substantial
hardship if the waiver were not granted. Petitioner has also demonstrated that
the purpose of the underlying statute, which is to “encourage development of
low-income housing in the state” (§420.5099, Fla. Stat.), would still be achieved
if the waiver is granted.
3. Recommendation
a) Staff recommends the Board GRANT Petitioner’s request for a waiver of Rule
67-48.0072(21)(b), Fla. Admin. Code to allow Petitioner to extend its firm loan
commitment issuance deadline from November 13, 2022 to May 13, 2023.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
5
C. In Re: Creekside Manor VOA Affordable Housing, LP - FHFC Case No. 2022-053VW
(RFA 2019-118/App. No. 2020-378E)
Development Name: (“Development”):
Creekside Manor
Developer/Principal: (“Developer”):
Volunteers of America National
Services/Kimberly Black King
Number of Units: 92
Location: Pinellas County
Type: Mid-Rise, 4-stories/Rehabilitation
Set Asides: 20% at 50% AMI
80% at 60% AMI
Demographics: Elderly
Funding: EHCL $750,000
4% HC
1. Background/Present Situation
a) Petitioner successfully applied for Elderly Housing Community Loan (“EHCL)
funding in RFA 2019-118 to assist in the rehabilitation of a 92-unit elderly
housing development named Creekside Manor in Pinellas County, Florida (the
“Development”). On October 10, 2022, Florida Housing received a Petition for
Waiver of Rule 67-48.0072(26), F.A.C. (7/11/19) (the “Petition”) to allow
Petitioner to extend the loan closing deadline. A copy of the Petition is attached
as Exhibit B
.
2. Present Situation
a) Rule 67-48.0072(26), Fla. Admin. Code (2019), provides:
(26) For SAIL, EHCL, and HOME, unless stated otherwise in a
competitive solicitation, these Corporation loans and other mortgage
loans related to the Development must close within 120 Calendar Days
of the date of the firm loan commitment(s), unless the Development is a
Tax-Exempt Bond-Financed Development which then the closing must
occur within 180 Calendar Days of the firm loan commitment(s).
Unless an extension is approved by the Board, failure to close the
loan(s) by the specified deadline outlined above shall result in the firm
loan commitment(s) being deemed void and the funds shall be de-
obligated. Applicants may request one (1) extension of the loan closing
deadline outlined above for a term of up to 90 Calendar Days. All
extension requests must be submitted in writing to the program
administrator and contain the specific reasons for requesting an
extension and shall detail the time frame to close the loan. The Board
shall consider the facts and circumstances of each Applicant’s request,
inclusive of the Applicant’s ability to close within the extension term
and any credit underwriting report, prior to determining whether to
grant the requested extension. The Corporation shall charge an
extension fee of one (1) percent of each Corporation loan amount if the
Board approves the request to extend the loan closing deadline beyond
the applicable 120 Calendar Day or 180 Calendar Day period outlined
above. If an approved extension is utilized, Applicants must pay the
extension fee not later than seven (7) Calendar Days after the original
loan closing deadline. In the event the Corporation loan(s) does not
close by the end of the extension period, the firm loan commitment(s)
shall be deemed void and the funds shall be de-obligated.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
6
b) RFA 2018-119, Exhibit C, Section 4b, provides:
The loan must close within 180 Calendar Days of the date of the
firm loan commitment(s). Unless an extension is approved by the
Board, failure to close the loan by the specified deadline outlined above
shall result in the firm loan commitment being deemed void and the
funds shall be de-obligated. Applicants may request one (1) extension
of the loan closing deadline outlined above for a term of up to 90
Calendar Days. All extension requests must be submitted in writing to
the program administrator and contain the specific reasons for
requesting an extension and shall detail the time frame to close the
loan. The Board shall consider the facts and circumstances of each
Applicant’s request, inclusive of the Applicant’s ability to close within
the extension term and any credit underwriting report, prior to
determining whether to grant the requested extension. The Corporation
shall charge an extension fee of one half of one percent of each
Corporation loan amount if the Board approves the request to extend
the loan closing deadline beyond the 180 Calendar Day period outlined
above. If an approved extension is utilized, Applicants must pay the
extension fee not later than seven (7) Calendar Days after the original
loan closing deadline. Any such request must be made in writing to the
Corporation. In the event the Corporation loan(s) does not close by
the end of the extension period, the firm loan commitment(s) shall
be deemed void and the funds shall be de-obligated.
Emphasis supplied
c) Petitioner requests a waiver of the above cited Rule and RFA provision to allow
Petitioner to extend the loan closing deadline for the EHCL loan. The
Petitioner’s credit underwriting report was approved at the July 30, 2021 Board
meeting which provided an initial loan closing deadline of January 31, 2022. On
December 10, 2021, at Petitioner’s request the Board approved an extension of
the EHCL loan closing deadline from January 31, 2022 to May 2, 2022. On
April 29, 2022, at Petitioner’s request the Board approved an additional
extension of the loan closing deadline to November 2, 2022. Petitioner now
requests an additional six-month extension of the loan closing deadline to May
2, 2023.
d) Petitioner states that it has worked diligently to move the Development forward.
Petitioner states that the Development is a HUD Section 202 senior project with
two project-based Section 8 contracts. In order to close on the property,
Petitioner asserts that it needs numerous approvals from HUD. According to
Petitioner, it applied for such HUD approval in April of 2021 and has contacted
HUD numerous times regarding the approval. Petitioner states that it has no
control over whether the HUD approvals will be available in sufficient time to
close before the November 2, 2022 deadline. Therefore Petitioner requests an
additional six-month extension of the loan closing deadline to May 2, 2023.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
7
e) Petitioner states that the waiver is necessary because the Development cannot
move forward without this funding source. According to Petitioner, denial of
the waiver request would cause Pinellas County to lose the benefit of preserving
92 affordable housing units for the elderly.
f) On October 11, 2022, Notice of the Petition was published in the Florida
Administrative Register in Volume 48, Number 198. To date, Florida Housing
has received no comments concerning the Petition.
g) Section 120. 542(2), Florida Statutes provides in pertinent part:
Variances and waivers shall be granted when the person subject to the
rule demonstrates that the purpose of the underlying statute will be or
has been achieved by other means by the person and when application
of a rule would create a substantial hardship or would violate principles
of fairness.
h) Granting the requested waiver would not impact other participants in funding
programs administered by Florida Housing, nor would it detrimentally impact
Florida Housing. Petitioner has demonstrated that it would suffer a substantial
hardship if the waiver were not granted. Petitioner has also demonstrated that
the purpose of the underlying statute, which is to “encourage development of
low-income housing in the state” (§420.5099, Fla. Stat.), would still be achieved
if the waiver is granted.
3. Recommendation
a) Staff recommends the Board GRANT Petitioner’s request for a waiver of Rule
67-48.0072(26), Fla. Admin. Code (2019) and Section 4b, Exhibit C of RFA
2018-119 to allow Petitioner to extend its loan closing deadline from November
2, 2022 to May 2, 2023.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
8
D. In Re: BDG Banyan East Town, LLC - FHFC Case No. 2022-056VW
Development Name: (“Development”):
Banyan East Town Apartments
Developer/Principal: (“Developer”):
BDG Banyan East Town Developer, LLC/
Alexander Kiss
Number of Units: 111
Location: Seminole County
Type: New Construction/Garden
Apartments
Set-Asides: 10% @ 30% AMI
76% @ 60% AMI
Demographics: Family
Funding: 9% HC: $1,700,000
1. Background
a) In RFA 2021-201, Petitioner successfully applied for 9% competitive housing
credits to assist in the construction of a 111-unit affordable housing
development named Banyan East Town Apartments to be located in Seminole
County, Florida. Petitioner has also applied for CHIRP funding and is currently
in credit underwriting for that funding. Florida Housing received a Petition for
Waiver of Rule 67-48.004(3)(i), Fla Admin. Code on October 11, 2022, and an
Amended Petition for Waiver of Rule 67-48.004(3)(i), Fla Admin. Code on
October 17, 2022, from Petitioner to allow Petitioner to change the total number
of units and set aside percentages proposed in its application. A copy of the
Petition is attached as Exhibit C
and a copy of the Amended Petition is attached
as Exhibit D.
2. Present Situation
a) Rule 67-48.004(3)(i), Fla. Admin. Code, states in relevant part:
(3) For the SAIL, HOME and Housing Credit Programs … the
following items as identified by the Applicant in the Application must
be maintained and cannot be changed by the Applicant after the
applicable submission, unless otherwise approved below:
…
(i) Total number of units...
b) Rule 67-48.004(3)(j), Fla. Admin. Code, states in relevant part:
(3) For the SAIL, HOME and Housing Credit Programs…the following
items as identified by the Applicant in the Application must be
maintained and cannot be changed by the Applicant after the applicable
submission, unless provided otherwise below:
…
(j) For the SAIL and HC Programs, the Total Set-Aside Percentage as
stated in the total set-aside breakdown chart for the program(s) applied
for in the Set-Aside Commitment section of the Application. For the
HOME Program, the total number of HOME-Assisted Units committed
to in the Set-Aside Commitment section of the Application.
Notwithstanding the foregoing, the Total Set-Aside Percentage, or
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
9
total number of HOME-Assisted Units, as applicable, may be
increased after the Applicant has been invited to enter credit
underwriting, subject to written request of an Applicant to
Corporation staff and approval of the Corporation. With regard to
said approval, the Corporation shall consider the facts and
circumstances, inclusive of each Applicant’s request, in evaluating
whether the changes made are prejudicial to the Development or to the
market to be served by the Development, as well as review of 24 CFR
Part 92 to ensure continued compliance for the HOME Program;
(emphasis added)
c) Petitioner requests a waiver of the above rules to allow Petitioner to reduce the
number of development units from the 111 submitted in its application to 92. As
grounds for this request, Petitioner reports that it has encountered numerous
complications due to new permitting processes and requirements imposed by the
City of Altamonte Springs, Seminole County, and St. Johns River Water
Management District. Petitioner maintains that these new requirements have led
to a substantial increase in costs incurred and a decrease in the land available on
the property for development. Petitioner’s attempts to redesign the property to
maintain the unit count proved cost prohibitive, even with the maximum CHIRP
funding. As the land for the development has already been purchased, Petitioner
cautions that a denial of this waiver would render the development impossible to
complete, and the number of development units must be reduced to ensure the
development remains financially feasible. Furthermore, Petitioner asserts that
the reduction in set-aside units would not change the leveraging classification or
overall scoring of the Application and staff has confirmed that even with the
reduction in set-aside units, the Application still would have been funded.
d) Petitioner’s proposed unit decrease would remove fifteen market-rate units and
four 60% AMI units from the current design, leaving twelve units at 30% AMI
and eighty units at 60% AMI. Petitioner’s proposal also increases the
development’s total set-aside percentage from 86% to 100%.
e) On October 13, 2022, the Notice of Petition was published in the Florida
Administrative Register in Volume 48, Number 200. To date, Florida Housing
has received no comments concerning the Petition.
f) Section 120.542(2), Florida Statutes provides in pertinent part:
Variances and waivers shall be granted when the person subject to the
rule demonstrates that the purpose of the underlying statute will be or
has been achieved by other means by the person and when application
of a rule would create a substantial hardship or would violate principles
of fairness.
g) Granting the requested waiver would not have any impact on other participants
in funding programs administered by Florida Housing, nor would it have a
detrimental impact on Florida Housing or the Development. Petitioner has
demonstrated that strict application of the above Rules under these
circumstances would constitute a substantial hardship. Petitioner has also
demonstrated that the purpose of the underlying statute, which is to “encourage
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
10
development of low-income housing in the state” (§420.5099, Fla. Stat.), would
still be achieved if the waiver is granted.
3. Recommendation
a) Staff recommends the Board GRANT Petitioner’s request for a waiver of Rule
67-48.004(3)(i), Fla. Admin. Code, to permit Petitioner to reduce the number of
units in the Development from 111 to 92 in the above manner, increasing its
total set-aside percentage from 86% to 100% as allowed by Rule 67-
48.004(3)(j), Fla. Admin. Code, thereby approving a set-aside commitment of
13% at 30% AMI and 87% at 60% AMI.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
11
E. In Re: Sandcastles Foundation, Inc. - FHFC Case No. 2022-057VW (RFA 2020-206/App.
No. 2021-284H)
Development Name: (“Development”):
Sandcastle Pines
Developer/Principal: (“Developer”):
Sandcastles Foundation, Inc./Jessica Crist
Panhandle Affordable II, LLC/Michael
McPhillips, Flynn Martin
Number of Units: 25
Location: Bradford County
Type: Single Family Homes, New
Construction
Set Asides: 20% at 50% AMI
80% at 60% AMI
Demographics: Family
Funding: HOME: $6,826,000.00
1. Background
a) Petitioner successfully applied for funding pursuant to Request for Application
2020-206, HOME Financing/or the Construction of Small, Rural Developments
to finance the construction of a proposed twenty-five (25) unit single family
home affordable housing development to be known as Sandcastle Pines located
in Bradford County, Florida (the “Development”). On October 12, 2022, Florida
Housing received a Petition Waiver of Rule 67-48.004(3)(i), (l) and 67-
48.0072(17)(g) [sic], Florida Administrative Code (the “Petition”) from
Sandcastles Foundations, Inc., (the “Petitioner”) to allow for an extension of the
Loan Closing Date and for a reduction in the total number of units and for a
reduction in the Loan amount. A copy of the Petition is attached as Exhibit E
.
2. Present Situation
a) Rule 67-48.004(3)(i) and (l), Fla. Admin. Code (2020), states:
(3) For the SAIL, HOME and Housing Credit Programs,
notwithstanding any other provision of these rules, the following items
as identified by the Applicant in the Application must be maintained
and cannot be changed by the Applicant after the applicable
submission, unless provided otherwise below:
***
(i) Total number of units; notwithstanding the foregoing, the total
number of units may be increased after the Applicant has been invited
to enter credit underwriting, subject to written request of an Applicant
to Corporation staff and approval of the Corporation. With regard to
said approval, the Corporation shall consider the facts and
circumstances, inclusive of each Applicant’s request, in evaluating
whether the changes made are prejudicial to the Development or to the
market to be served by the Development, as well as review of 24 CFR
Part 92 to ensure continued compliance for the HOME Program;
***
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
12
(l) Funding Request Amount, exclusive of adjustments by the
Corporation as outlined in any applicable competitive solicitation.
b) Rule 67-48.0072(26), Fla. Admin. Code (2020), states:
(26) For SAIL, EHCL, and HOME, unless stated otherwise in a
competitive solicitation, these Corporation loans and other mortgage
loans related to the Development must close within 120 Calendar Days
of the date of the firm loan commitment(s), unless the Development is a
Tax-Exempt Bond-Financed Development which then the closing must
occur within 180 Calendar Days of the firm loan commitment(s).
Unless an extension is approved by the Board, failure to close the
loan(s) by the specified deadline outlined above shall result in the firm
loan commitment(s) being deemed void and the funds shall be de-
obligated. Applicants may request one (1) extension of the loan closing
deadline outlined above for a term of up to 90 Calendar Days. All
extension requests must be submitted in writing to the program
administrator and contain the specific reasons for requesting an
extension and shall detail the time frame to close the loan. The Board
shall consider the facts and circumstances of each Applicant’s request,
inclusive of the Applicant’s ability to close within the extension term
and any credit underwriting report, prior to determining whether to
grant the requested extension. The Corporation shall charge an
extension fee of one (1) percent of each Corporation loan amount if the
Board approves the request to extend the loan closing deadline beyond
the applicable 120 Calendar Day or 180 Calendar Day period outlined
above. If an approved extension is utilized, Applicants must pay the
extension fee not later than seven (7) Calendar Days after the original
loan closing deadline. In the event the Corporation loan(s) does not
close by the end of the extension period, the firm loan commitment(s)
shall be deemed void and the funds shall be de-obligated.
c) Petitioner seeks a waiver of rule 67-48.0072(26) to allow for an extension of the
Loan Closing Date for 120 days from the previously extended closing date of
October 7, 2022 and a waiver of Rule 67-48.004(3)(i) and (1) so that Petitioner
may reduce the total number of units in the proposed Development from 25 to
21 units (all units will remain four bedroom with two baths) and for a reduction
in the Loan amount from $6,826,000.00 to $6,508,137.00.
d) On November 19, 2020, Petitioner applied for $5,826,000.00 in HOME funding
pursuant to Request for Application 2020-206, HOME Financing/or the
Construction of Small, Rural Development. On January 22, 2021, the Board
approved Petitioner's application and Petitioner was subsequently invited to
enter credit underwriting. On March 18, 2021, staff issued the preliminary
commitment letter. Pursuant to Rule 67-48, the credit underwriting report had to
be completed and firm loan commitment issued by March 29, 2022.
e) On March 4, 2022, the Board approved the final credit underwriting report with
a positive recommendation for a HOME loan in the amount of $5,826,000 and a
Viability Loan of $186,042.33. The Loans were scheduled to close on July 8,
2022.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
13
f) Prior to the loan closing date, the Petitioner advised Florida Housing that it
would need to seek additional funding due to significant increases in
construction costs. On July 21, 2022, Petitioner formally notified Florida
Housing of its intent to seek additional funding and requested a 90-day
extension of the loan closing deadline to October 6, 2022. On August 5, 2022,
the Board approved the 90-day extension of the loan closing deadline.
g) On September 23, 2022, Florida Housing issued a revised firm commitment for
a HOME Loan in the amount of $5,826,000.00 and increased Viability Loan in
the amount of $1,000,000.00 for a total amount of $6,826,000.00. The Loan
closing was to occur by October 7, 2022.
h) During this same period, the Petitioner was working the City of Starke including
the Planning and Zoning Board to acquire all the necessary approvals. During
this process it was determined that a Zoning Map amendment was required. The
Planning and Zoning Board Staff deemed the Zoning Map Amendment
consistent with the City's Comprehensive Plan and in compliance with the Land
Development Code and recommended approval by the Starke City Commission.
i) On September 19, 2022, the Starke City Commission approved the Zoning Map
Amendment filed by the Petitioner to change the relevant zoning designation of
the 6.37-acre parcel from Single Family, Medium Density to Multi-Family
Residential.
j) The Zoning Map Amendment was scheduled for Second Reading, as is required,
before the City Commission on Tuesday, October 4, 2022. Unexpectedly, the
Starke City Commission denied the Zoning Map Amendment by a vote of 5-0
because of concerns raised for the first time by a few citizens regarding
stormwater issues, traffic, and a concern that single family rental units would
cause a diminution of property values in the general neighborhood.
k) The Petitioner made the rezoning request at the suggestion of City staff to
accommodate the number of proposed units and adequate stormwater treatment
required by the Suwanee River Water Management District. Since the October
4th denial, Petitioner has been meeting with its own engineers to determine how
it can build the proposed units under the existing zoning.
l) Petitioner states that a modified site plan and a reduction in the number of units
is necessary to meet the lot size required by the current zoning category of the
property. The modified site plan and reduction of units will allow the Petitioner
to meet the applicable technical requirements for approval by the City (the
proposed change will provide 21 HOME-assisted units, 5 Low HOME Rental
Units and 16 High HOME rental units). The City approval going forward is an
administrative approval and not a quasi-judicial hearing.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
14
m) Petitioner further indicates that the reduction in units will also require a
corresponding loan reduction amount. The combined total of $6,826,000.00 will
be reduced to a combined total loan amount of $6,508,137.00 (the loan
reduction is a result of the application of HUD’s Maximum Subsidy Limits for
HOME units).
n) The Petitioner believes the needed approvals can be obtained from the City of
Starke within 120 days.
o) Petitioner argues that application of Rules 67-48.004(3)(i), (1) and 67-
48.0072(26), Fla. Admin. Code (2020) will prohibit the extension of the loan
closing and preclude the Petitioner from reducing both the total number of units
and the amount of the loan. This will result in difficulties moving forward and
obtaining the necessary zoning approvals and will threaten the financial viability
of the Development and the delivery of needed units in Bradford County.
p) On October 13, 2022, Notice of the Petition was published in the Florida
Administrative Register in Volume 48, Number 200. To date, Florida Housing
has received no comments concerning the Petition.
q) Section 120. 542(2), Florida Statutes provides in pertinent part:
Variances and waivers shall be granted when the person subject to the
rule demonstrates that the purpose of the underlying statute will be or
has been achieved by other means by the person and when application
of a rule would create a substantial hardship or would violate principles
of fairness.
r) Granting the requested waiver would not impact other participants in funding
programs administered by Florida Housing, nor would it detrimentally impact
Florida Housing. Petitioner has demonstrated that it would suffer a substantial
hardship if the waiver is not granted. Petitioner has also demonstrated that the
purpose of the underlying statute, which is to “encourage development of low-
income housing in the state” (§420.5099, Fla. Stat.), would still be achieved if
the waiver is granted.
3. Recommendation
a) Staff recommends the Board GRANT Petitioner’s request for a waiver of Rules
67-48.004(3)(i), (1) and 67-48.0072(26), Fla. Admin. Code (2020) to allow for
an extension of the Loan Closing Date for 120 days from the previously
extended closing date of October 7, 2022 and so that Petitioner may reduce the
total number of units in the proposed Development from 25 to 21 units, all of
which will remain four bedroom with two baths, and so that the Loan amount
may be reduced from $6,826,000.00 to $6,508,137.00.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
15
F. In Re: Little Haiti Gateway, LLC - FHFC Case No. 2022-055VW (2000 Combined Rental
Cycle/App. No. 2000-021S)
Development Name: (“Development”):
Little Haiti Gateway
Developer/Principal: (“Developer”):
Carrfour Supportive Housing,
Inc./Stephanie Berman-Eisenberg
Number of Units: 80
Location: Miami-Dade County
Type: Garden/Rehabilitation
Set Asides: 15% at 33% AMI
56.25% at 50% AMI
28.75% at NR
Demographics: Family
Funding: SAIL $495,000
1. Background
a) In 2000, Petitioner successfully applied for State Apartment Incentive Loan
(“SAIL”) funding to assist in the rehabilitation of an 80-unit family housing
development named Little Haiti Gateway in Miami-Dade County, Florida (the
“Development”). On October 11, 2022, Florida Housing received a Petition for
Waiver of Rules 67-48.009(5)(d), 67-48.018(1)(c) AND 67-48.023(1)(c) (the
“Petition”) to allow Petitioner to apply for corporation funding for a
Development site that is subject to a Land Use Restriction Agreement
(“LURA”). A copy of the Petition is attached as Exhibit F
.
2. Present Situation
a) Rules 67-48.009(5)(d) (pertaining to SAIL), 67-48.018(1)(c) (pertaining to
HOME), and 67-48.023(1)(c) (pertaining to Housing Credits), Fla. Admin. Code
(2022), and all future versions of the Rule that provide in relevant part:
(1) Unless otherwise permitted in a competitive solicitation process, an
Applicant is not eligible to apply for [SAIL Program funding, HOME
Program funding, or Competitive Housing Credits] if any of the
following pertain:
(2) The proposed Development site or any part thereof is subject to any
Land Use Restriction Agreement or Extended Use Agreement, or both,
in conjunction with any Corporation affordable housing financing
intended to foster the development or maintenance of affordable
housing, unless at least one (1) of the following exceptions applies:
1. A LURA recorded in conjunction with the Predevelopment Loan
Program or the Elderly Housing Community Loan Program, or
2. A LURA or EUA, or both, for an existing building or buildings,
originally constructed at least 25 years prior to the deadline to apply for
the applicable [SAIL Funding, HOME Funding, or Competitive
Housing Credits], where, in the current Application, the Applicant has
selected and qualified for the Homeless demographic commitment with
a Development category of Rehabilitation/Moderate
Rehabilitation/Substantial Rehabilitation, Acquisition and
Rehabilitation/Moderate Rehabilitation/Substantial Rehabilitation,
Preservation, or Acquisition and Preservation.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
16
b) Petitioner requests a waiver of the above cited Rules to allow Petitioner to apply
for SAIL Funding, HOME Funding, and/or Competitive Housing Credits on a
proposed Development site that is subject to an existing LURA. The
Development and the entire parcel of land upon which it is situated is subject to
an existing LURA as a result of receiving a SAIL loan in 2002. Petitioner owns
a 2.5 acre site in Little Haiti, upon a portion of which the Development is
located. The Development consists of a single two-story building containing 51
units, which Petitioner intends to continue to operate, and cottages comprising
thirty-two (32) units which may need to be reconfigured in order to facilitate
redevelopment of the remainder of the site. Petitioner states that because the
cottages are located throughout the site, it is not practical for Petitioner to
request a modification of the legal description of the LURA to exclude excess
land for subsequent development.
c) Petitioner’s affiliate, Carrfour Supportive Housing, Inc. (“Carrfour”) is
proposing to redevelop a portion of the Development site into a multi-phase
affordable and supportive housing community that will contain a mix of
supportive housing, affordable housing at varying AMI levels, space for
grassroots community services organizations, and retail space reserved for local
business. According to Petitioner, Notre Maison, a supportive housing
community for homeless and low-income adults and families in Miami’s Little
Haiti neighborhood, will be the first phase of redevelopment with a total of 326
units, of which forty (40) units will be reserved as supportive housing for
homeless adults/small families and forty (40) units will be reserved as affordable
housing for households earning less than 80%AMI. Petitioner seeks this waiver
to allow it to better utilize the remainder of the site through the production of
much needed affordable housing in the Little Haiti neighborhood in the City of
Miami.
d) Florida Housing’s Portfolio Preservation Action Plan (“Action Plan”) outlines
factors for prioritizing developments for recapitalization within each program
strategy. Petitioner states that its redevelopment plan should be prioritized in
light of the following factors in the Action Plan:
(1) Affordability Expiration – Petitioner states that if, after obtaining this
waiver, it or its affiliates are successful in obtaining Florida Housing
funding for redevelopment of the site, Petitioner is willing to extend the
term of the existing LURA to be co-terminus with any LURA or
extended low income housing commitment entered into in connection
with further development of the site
(2) Market Condition Opportunity – The site is located in a rapidly
gentrifying area, and prices for surrounding property have increased
dramatically. Petitioner states that granting the requested waiver would
allow further development of the site as affordable housing at a below-
market price, since Petitioner (or its affiliate) already owns and controls
the site.
(3) ELI Units and/or high proportion of below 60% AMI units – In
connection with the further development of the site, Petitioner states
that, as outlined in the Petition, it will seek to house homeless adults
whose income is typically below the applicable ELI limits.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
17
(4) Importance of Property to the Community – The site is proximate to a
massive redevelopment project called Magic City, which contains
mostly high-end residential units and non-residential uses. As a result
of the Magic City development, surrounding properties have
dramatically increased in price. Petitioner asserts that as one of the few
remaining viable affordable housing developments in the
neighborhood, the site is extremely important to the Little Haiti
community.
(5) Location – According to Petitioner, the Development site is close to
elementary, middle, and high schools as well as a community college
campus. Petitioner states that residents at the Development have easy
access to reliable public transportation with a bus stop directly in front
of the Development with stops every thirty (30) minutes during peak
hours, and several other bus stops and a free trolley service less than a
four-minute walk from the development. According to Petitioner, a
variety of retail shops, employment opportunities, grocery stories, and
pharmacies are available nearby.
(6) Owner Development and Management Performance – Petitioner states
that it has ably performed its ownership/management function at the
Development such that several of the Property Risk Factors in the
Action Plan, such as aging stock, loss due to deteriorating physical
condition, and loss due to financial viability, do not exist.
e) Florida Housing staff recommends granting this waiver request for a variety of
reasons including that the redevelopment plan meets several factors in the
Preservation Action Plan, the location of the Development relative to the Magic
City redevelopment plans, and the significant number of units envisioned in
Petitioner’s redevelopment plan, in excess of what is currently set aside at the
existing Little Haiti Gateway development.
f) On October 12, 2022, Notice of the Petition was published in the Florida
Administrative Register in Volume 48, Number 199. To date, Florida Housing
has received no comments concerning the Petition.
g) Section 120. 542(2), Florida Statutes provides in pertinent part:
Variances and waivers shall be granted when the person subject to the
rule demonstrates that the purpose of the underlying statute will be or
has been achieved by other means by the person and when application
of a rule would create a substantial hardship or would violate principles
of fairness.
h) Granting the requested waiver would not impact other participants in funding
programs administered by Florida Housing, nor would it detrimentally impact
Florida Housing. Petitioner has demonstrated that it would suffer a substantial
hardship if the waiver were not granted. Petitioner has also demonstrated that
the purpose of the underlying statute, which is to “encourage development of
low-income housing in the state” (§420.5099, Fla. Stat.), would still be achieved
if the waiver is granted.
LEGAL
Consent
October 28, 2022 Florida Housing Finance Corporation
18
3. Recommendation
a) Staff recommends the Board GRANT Petitioner’s request for a waiver of Rules
67-48.009(5)(d), 67-48.018(1)(c), and 67-48.023(1)(c), Fla. Admin. Code
(2022), and all future versions of the Rule, to allow Petitioner and its Affiliates
to apply for SAIL, HOME, or Housing Credit funding for proposed
Developments consisting of no less than seventy-five (75) units for the
Development site Little Haiti Gateway, that is subject to a Land Use Restriction
Agreement.
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. MULTIFAMILY BONDS
A. Request Approval of Credit Underwriting Report, Authorizing Resolutions and Assignment,
Assumption and Subordination of the Existing MMRB LURA, SAIL ELI Loan Documents
and ELIHA for Hampton Point Apartments (2021-104B / 2021-535C / MMRB 2003 Series
Q-1 and Q-2 / RFP 2010-16-20 / RFP 2012-04-11 / 2003-515C)
Development Name: Hampton Point
Apartments
Location: Charlotte County
Applicant/Borrower: Hampton Point
Preservation, Ltd
Set-Asides:
40% @ 60% AMI (MMRB)
100% @ 60% AMI (4% HC)
5% @ 40% AMI (Existing SAIL & ELI)
12% @ 35% AMI (Existing SAIL & ELI)
Developers/Principals: Hampton Point
Developer, LLC / Jeremy Bronfman
Demographic/Number of Units:
Family / 284 units
Requested Amounts:
$36,300,000 Multifamily Mortgage Revenue
Bonds (MMRB)
$2,653,285 Housing Credits (4% HC)
Development Category/Type:
Acquisition & Rehabilitation / Garden
Apartments
1. Background/Present Situation
a) Florida Housing financed the above referenced Development in 2003 with
$13,200,000 in Multifamily Mortgage Revenue Bonds designated as 2003 Series
Q-1 and Q-2 and an allocation of 4% HC in amount of $943,725. In addition, in
2009 the Development received $600,682 in Subordinated Mortgage Initiative
(“SMI”) loan. The Development also received $1,125,000 in 2011 and
$2,500,000 in 2013 in State Apartment Incentive Loan Extremely Low (“SAIL
ELI”) loans. The MMRB have been redeemed and the SMI loan has been paid
off.
b) On June 30, 2021, the Applicant submitted a Non-Competitive Application
package requesting tax-exempt MMRB in the amount of $33,000,000 and Non-
Competitive Housing Credits in the amount of $2,100,000. Subsequently, the
MMRB request amount was increased to $36,300,000.
c) On September 30, 2021, staff issued an invitation to enter credit underwriting to
the Applicant. The acceptance was acknowledged on September 30, 2021.
d) On October 19, 2022, staff received a final credit underwriting report with a
positive recommendation for MMRB funding and the Assignment, Assumption
and Subordination of the existing MMRB Land Use Restriction Agreement
(“LURA”), SAIL ELI loan documents, and Extended Low Income Housing
Agreement (“ELIHA”) (Exhibit A
). Staff finds that the development meets all
requirements of the Non-Competitive Application.
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
2
e) Staff reviewed the authorizing resolutions (Exhibit B
) authorizing the sale and
issuance of Multifamily Mortgage Revenue Bonds to finance this affordable
housing Development within the State of Florida. Staff requests approval for
the execution of the resolutions.
2. R
ecommendation
a) Approve the final credit underwriting report and authorizing resolutions, and the
Assignment, Assumption and Subordination of the existing MMRB LURA,
SAIL ELI loan documents, and ELIHA and direct staff to proceed with closing
activities, subject to further approvals and verifications by the Credit
Underwriter, Bond Counsel, Special Counsel, and the appropriate Florida
Housing staff.
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
3
B. Request Approval of the Credit Underwriting Report, Amended Authorizing Resolutions,
RFA Waiver for Applicant Entity Change, and Co-Developer Change for Civitas of Cape
Coral (RFA 2019-102 / 2020-018BD / 2019-574C)
Development Name: Civitas of Cape Coral
Location: Lee County
Applicant/Borrower: Pine Island Cape,
LLC
Set-Aside(s):
40% @ 60% AMI (MMRN)
20.833% @ 30% AMI (CDBG-DR & 4% HC)
51.042% @ 60% AMI (CDBG-DR & 4% HC)
28.125% @ 80% AMI (Workforce, CDBG-DR
& 4% HC)
Developer/Principal: DDER Development,
LLC/Domingo Sanchez, LCHA Developer,
LLC/Lee County Housing Authority, and
Revital Development Group, LLC/Michael
Allan
Demographic/Number of Units:
Workforce / 96 units
Requested Amounts:
$17,490,000 Multifamily Mortgage Revenue
Note (MMRN)
$5,633,218 Community Development Block
Grant – Disaster Recovery (CDBG-DR)
$4,335,000 Community Development Block
Grant – Disaster Recovery Viability
(CDBG-DR Viability)
$1,618,414 Housing Credits (4% HC)
Development Category/Type:
New Construction / Garden Apartments
1. Background/Present Situation
a) On July 30, 2019, Florida Housing issued a Request for Applications (RFA)
2019-102 for Community Development Block Grant – Disaster Recovery to be
Used in Conjunction with Tax-Exempt MMRB and Non-Competitive Housing
Credits in Counties Deemed Hurricane Recovery Priorities.
b) Staff issued a preliminary commitment letter and invitation to enter credit
underwriting to the Applicant on April 27, 2020. The acceptance was
acknowledged on May 1, 2020.
c) On September 10, 2021, the Board approved the final credit underwriting report
and directed staff to proceed with closing activities.
d) On September 26, 2022, staff received a request from the Borrower to increase
the MMRN amount from the previously Board approved amount of $16,000,000
to $18,000,000, due to increase in construction cost.
e) On October 20, 2022, staff received a new final credit underwriting report with a
positive recommendation for MMRN funding in the amount of $17,490,000,
CDBG-DR funding of $5,633,218, and CDBG-DR Viability in the amount of
$4,335,000 (Exhibit C
). Staff has reviewed this report and finds that the
Development meets the requirements of the RFA.
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
4
f) Staff reviewed the amended authorizing resolutions (Exhibit D
) authorizing the
sale and issuance of Multifamily Mortgage Revenue Notes to finance this
affordable housing Development within the State of Florida. Staff requests
approval for the execution of the resolutions.
g) On October 7, 2022, staff received a request from the Applicant to change the
organizational structure of the Applicant and Developer entities (Exhibit E
). The
Applicant request changes to the Applicant Entity removing CCD Pine Island,
LLC as Member and Co-Manager and replacing with DDER Civitas Manager,
LLC as Member and Sole Manager of Pine Island Cape, LLC. Catalyst
Southwest Florida, LLC, the sole Manager/Member of CCD Pine Island, LLC,
is unable to meet the requirements of the tax credit syndicator. Therefore, the
Applicant request removal of Catalyst Southwest Florida, LLC from the
ownership structure. This request will result in ownership interest changes of the
Applicant Entity. DDER Civitas Manager, LLC will have 0.0051% ownership,
LCHA Pine Island, LLC ownership will decrease from 0.0040% as Manager
Member to 0.0020% as Member, and Revital Civitas PIC, LLC ownership will
increase from 0.009% as Manager and Member to 0.0029% as Member. Per the
RFA, the Applicant entity shall be the borrowing entity and cannot be changed
in any way (materially or non-materially) until after loan closing. Therefore, the
change of the Applicant entity requires an RFA waiver.
h) Furthermore, the Applicant is requesting to remove Catalyst Southwest Florida,
LLC as a Co-Developer and replace with DDER Development, LLC. Per the
RFA, the Principals of each Developer identified in the Application, including
all Co-Developers, may be changed only by written request of an Applicant to
Corporation staff and approval of the Board after the Applicant has been invited
to enter credit underwriting. Any allowable replacement of an experienced
Principal of a Developer entity must meet the experience requirements that were
met by the original Principal. Marcus D. Goodson, the principal providing the
developer experience at Application, remains with the Development.
i) Staff has reviewed these requests and finds that the development meets all other
requirements of the RFA.
2. Recommendation
a) Approve the final credit underwriting report, amended authorizing resolutions,
RFA Waiver for Applicant Entity change, remove and replace a Co-Developer,
and direct staff to proceed with closing activities, subject to further approvals
and verifications by the Credit Underwriter, Note Counsel, Special Counsel, and
appropriate Florida Housing staff.
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
5
C. Request Approval of the Method of Bond/Note Sale Recommendation from Florida
Housing’s Independent Registered Municipal Advisor and Assignment of a Recommended
Professional
1. Background
a) Pursuant to staff’s request for approval to issue bonds/notes to finance the
construction, and acquisition/rehabilitation of the proposed Developments
referenced below, the final credit underwriting reports are being presented to the
Board for approval simultaneously with this request to assign the appropriate
professionals for the transactions and approval of the recommended methods of
sale. Brief descriptions of the Developments are detailed below, along with
staff’s recommendations.
b) Pursuant to Rule 67-21.0045, F.A.C., staff has requested a review of the
proposed financing structures by the Independent Registered Municipal Advisor
(IRMA) in order to make a recommendation to the Board for the methods of
bond/note sale for the developments. Caine Miter and Associates Incorporated
has prepared an analysis and recommendation for the method of bond/note sale
for the Developments. The recommendation letters are attached as Exhibit F
and G.
2. Present Situation
a) Florida Housing staff, the Credit Underwriter, and the IRMA have reviewed the
financial structures for the proposed Developments.
3. Recommendation
a) Approve the assignment of the recommended professionals and the Independent
Registered Municipal Advisor’s recommendations for the methods of bond/note
sale, as shown in the chart below, for the proposed Developments.
Development
Name
Location of
Development
Number
of Units
Method of
Bond Sale
Recommended
Professional
Exhibit
Hampton Point
Charlotte
County
284
Public
Offering
RBC Capital
Markets, LLC
Exhibit F
Civitas of Cape
Coral
Lee
County
96
Private
Placement
RBC Capital
Markets, LLC
Exhibit G
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
6
D. Request Approval to Execute Acknowledgment Resolutions
1. Background/Present Situation
a) Pursuant to Rule 67-21, F.A.C., the Acknowledgement Resolution is the official
action taken by the Corporation to reflect its intent to finance a Development
provided that the requirements of the Corporation, the terms of the
MMRB/MMRN Loan Commitment, and the terms of the Credit Underwriting
Report are met. The resolution designates the period within which the Borrower
can be reimbursed for allowable project costs incurred with MMRB/MMRN
proceeds (with such period starting 60 days prior to the adoption of the
resolution).
b) Staff requests the execution of the Acknowledgement Resolutions for the
proposed Developments referenced below intending to finance the acquisition,
construction and/or rehabilitation of the Developments. Brief description of the
Developments is detailed below. The resolutions being presented to the Board
for approval are attached as Exhibits H through M.
2. Recommendation
a) Approve the execution of the Acknowledgment Resolutions for the proposed
Developments, as shown in the chart below.
Development
Name
Name of
Applicant
County
Number
of Units
Applicable
Application
Exhibit
Astoria on 9th
HTG Astoria,
Ltd.
Manatee
120
RFA 2021-205
Exhibit H
College Arms
Apartments
College
Preservation, LP
Putnam
108
RFA 2021-205
Exhibit I
Naranja Grand II
Naranja Grand II,
LLC
Miami-Dade
200
RFA 2021-205
Exhibit J
Princeton Grove
Princeton Grove,
Ltd.
Okaloosa
107
RFA 2021-205
Exhibit K
The Franklin
House
Franklin Senior
Housing, LP
Lake
46
RFA 2021-205
Exhibit L
Whispering Oaks
SP East LLC
Orange
183
RFA 2021-205
Exhibit M
MULTIFAMILY BONDS
Consent
October 28, 2022 Florida Housing Finance Corporation
7
E. Request Approval of the Transfer of Ownership for Sabal Chase (2000 Series M1 &
M2/SMI/2010-16-07R/2000-532C)
Development Name: Sabal Chase
Location: Saint Lucie County
Applicant/Borrower: Sabal Chase Harmony Housing
LLC
Set-Asides:
50% @ 60% AMI (MMRB)
19% @ 33% AMI (SAIL ELI)
100% @ 60% AMI (4% HC)
Developers/Principals: Harmony Housing Advisors,
Inc. / Robert Barolak
Demographic/Number of Units:
Family / 340
Requested Amounts:
$16,710,000 Multifamily Mortgage Revenue Bonds
(MMRB)
$876,252 Subordinate Mortgage Initiative (SMI)
$4,725,000 State Apartment Incentive Loan
Extremely Low Income (SAIL ELI)
$743,013 Housing Credits (4% HC)
Development Category/Type:
New Construction / Garden Apartments
1. Background
a) Florida Housing financed the above referenced Development in 2000 with
$11,045,000 in tax exempt MMRB designated as 2000 Series M1 and a
$5,665,000 in taxable MMRB designated as 2000 Series M2 and an allocation of
$743,013 in 4% Housing Credits. In 2009 the Development received a
Subordinate Mortgage Initiative (SMI) loan of $876,252 and in 2011 a State
Apartment Incentive Loan Extremely Low Income (SAIL ELI) loan of
$4,725,000. The MMRB were subsequently redeemed on October 27, 2014 and
the SMI loan was repaid on October 10, 2014.
2. Present Situation
a) The Borrower has requested Florida Housing’s consent to the transfer of the
Development to a to be formed single asset entity affiliated with The Michaels
Organization. Seltzer Management Group, Inc., has reviewed this request as part
of a portfolio ownership transfer and provided a positive recommendation for
the transfer, the assignment and assumption of the MMRB Land Use Restriction
Agreement (LURA), the SAIL ELI loan documents and the Extended Low-
Income Housing Agreement (ELIHA), and the subordination of the MMRB
LURA, SAIL ELI loan documents and ELIHA to the new first mortgage lender
(Exhibit N
).
3. Recommendation
a) Approve the transfer of ownership and the assignment, assumption, and
subordination of the MMRB LURA, SAIL ELI loan documents and ELIHA,
subject to the conditions in the credit underwriting report, and further approvals
and verifications by the Credit Underwriter, Bond Counsel, Special Counsel,
and the appropriate Florida Housing staff.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. MULTIFAMILY PROGRAMS
A. Request Approval of Developer Principal Changes for Quail Roost Transit Village VI (RFA
2021-205/2022-192S/2021-524C), Vista Breeze (RFA 2021-205/2022-159SN/2021-523C),
Brownsville Transit Village V (RFA 2019-102/2020-023BD/2019-570C), Casa Sant’Angelo
Apartments (RFA 2019-114/2020-363C), Northside Transit Village III (RFA 2019-102/2020-
024BD/2019-566C), Culmer Apartments (RFA 2019-116/2020-435BSN/2019-572C), Quail
Roost Transit Village I (RFA 2020-208/2020-461SN/2019-571C), Poinciana Crossing (RFA
2018-112/2019-119C/2020-376C), Saratoga Crossings III (RFA 2019-102/2020-026DB/2019-
565C), The Village of Casa Familia (RFA 2019-107/2019-422CG/2021-325CG/2022-230V),
Northside Transit Village II (RFA 2017-108/2018-047BSN/2016-584C), Residences at Dr.
King Boulevard (RFA 2017-112/2018-088C/2019-442C), and Applicant/Developer Principal
Changes for Sailboat Bend Apartments II (RFA 2017-113/2018-284C)
Development Name: Quail Roost Transit
Village VI
Location: Miami-Dade County
Applicant/Borrower: Quail Roost Transit
Village VI, Ltd.
Set-Asides:
SAIL/ELI: 2% at 25% AMI
93% at 60% AMI
HC: 100% at 60% AMI
Developer/Principal: Quail Roost VI
Development, LLC / Howard Cohen
Demographic/Number of Units: Family/300
Requested Amounts:
SAIL: $7,000,000
ELI: $600,000
4% HC: $4,468,354
Development Category/Type: New
Construction/High-Rise
Development Name: Vista Breeze
Location: Miami-Dade County
Applicant/Borrower: Vista Breeze, Ltd.
Set-Asides:
SAIL/ELI/HC: 20 Units at 30% AMI
69 Units at 60% AMI
30 Units at 80% AMI
NHTF: 5 Units at 22% AMI
Developer/Principal: APC Vista Breeze
Development, LLC / Howard Cohen
HACMB Development, LLC / Miguell Del
Campillo
Demographic/Number of Units: Elderly, Non-
ALF/119
Requested Amounts:
SAIL: $3,000,000
ELI: $600,000
NHTF: $1,301,500
4% HC: $1,073,658
Development Category/Type: New
Construction/Mid-Rise (4 Stories)
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
2
Development Name: Brownsville Transit
Village V
Location: Miami-Dade County
Applicant/Borrower: Brownsville Village V,
Ltd.
Set-Asides:
MMRB: 40% at 60% AMI
CDBG/HC: 20 Units at 30% AMI
70 Units at 60% AMI
30 Units at 80% AMI
Developer/Principal: APC Brownsville
Village V, LLC / Howard Cohen
Demographic/Number of Units: Elderly, Non-
ALF/120
Requested Amounts:
Multifamily Mortgage Revenue Bonds
(MMRB): $17,370,000
Community Development Block Grant –
Disaster Recovery (CDBG-DR): $6,150,000
4% HC: $1,667,243
Development Category/Type: New
Construction/High Rise
Development Name: Casa Sant’Angelo
Apartments
Location: Broward County
Applicant/Borrower: Casa Sant'Angelo, Ltd.
Set-Asides: 17 Units at 30% AMI
70 Units at 60% AMI
1 Unit at 70% AMI
25 Units at 80% AMI
Developer/Principal: Casa Sant’Angelo
Development, LLC / Howard Cohen
Demographic/Number of Units: Elderly, Non-
ALF/113
Requested Amounts:
9% HC: $2,882,000
Development Category/Type: New
Construction/Mid-Rise, 5 to 6-stories
Development Name: Northside Transit
Village III
Location: Miami-Dade County
Applicant/Borrower: Northside Property
III, Ltd.
Set-Asides:
MMRB: 40% at 60% AMI
CDBG-DR/HC: 32 Units at 30% AMI
72 Units at 60% AMI
96 Units at 70% AMI
Developer/Principal: Northside Property III
Development, LLC / Howard Cohen
Demographic/Number of Units: Workforce/200
Requested Amounts:
MMRB: $30,800,000
CDBG-DR: $9,550,000
4% HC: $2,943,047
Development Category/Type: New
Construction/High-Rise
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
3
Development Name: Culmer Apartments
Location: Miami-Dade County
Applicant/Borrower: Culmer Apartments,
Ltd.
Set-Asides:
MMRB: 40% at 60% AMI
SAIL/ELI/HC: 37 Units at 30% AMI
6 Units at 40% AMI
5 Units at 50% AMI
127 Units at 60% AMI
64 Units at 80% AMI
NHTF: 4 Units at 22% AMI
Developer/Principal: APC Culmer
Development, LLC / Howard Cohen
Demographic/Number of Units: Family/239
Requested Amounts:
MMRB: $58,970,000
SAIL: $7,000,000
CHIRP Additional Loan Funding:
$4,300,000
ELI: $600,000
NHTF: $1,236,800
4% HC: $5,194,449
Development Category/Type: New
Construction/High-Rise
Development Name: Quail Roost Transit
Village I
Location: Miami-Dade County
Applicant/Borrower: Quail Roost Transit
Village I, Ltd.
Set-Asides:
SAIL/HC: 30 Units at 30% AMI
40 Units at 50% AMI
20 Units at 60% AMI
90 Units at 70% AMI
20 Units at 80% AMI
NHTF: 10 Units at 30% AMI
Developer/Principal: Quail Roost I
Development, LLC / Howard Cohen
Demographic/Number of Units: Family/200
Requested Amounts:
SAIL: $6,500,000
CHIRP NHTF: $3,700,000
4% HC: $3,994,276
Development Category/Type: New
Construction/High-Rise
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
4
Development Name: Poinciana Crossing
Location: Broward County
Applicant/Borrower: Poinciana Crossing,
Ltd.
Set-Asides: 10% at 28% AMI
83% at 60% AMI
Developer/Principal: APC Poinciana
Crossing Development, LLC / Howard
Cohen
HEF Development, LLC / Tam English
Demographic/Number of Units: Family/113
Requested Amounts:
9% HC: $2,882,000
Development Category/Type: New
Construction/High Rise
Development Name: Saratoga Crossings III
Location: Broward County
Applicant/Borrower: Saratoga Crossings III,
Ltd.
Set-Asides:
MMRB: 40% at 60% AMI
CDBG-DR/HC: 27 Units at 30% AMI
8 Units at 60% AMI
40 Units at 80% AMI
Developer/Principal: APC Saratoga
Crossings III Development, LLC / Howard
Cohen
Dania Beach Quality Housing Solutions, Inc.
/ Robert Adams
Demographic/Number of Units: Workforce/75
Requested Amounts:
MMRB: $13,000,000
CDBG-DR: $5,499,990
4% HC: $960,436
Development Category/Type: New
Construction/Mid-Rise, 5 to 6-stories
Development Name: The Village of Casa
Familia
Location: Miami-Dade County
Applicant/Borrower: The Village of Casa
Familia, Ltd.
Set-Asides:
HC/Grant: 15% at 28% AMI
71% at 60% AMI
NHTF: 10 Units at 30% AMI
Developer/Principal: Casa Familia
Developer, LLC / Howard Cohen
Demographic/Number of Units: Disabling
Conditions/50 (59 including IRO Units)
Requested Amounts:
Grant: $4,000,000
Development Viability Loan: $2,000,000
CHIRP NHTF: TBD
9% HC: $1,500,000
Development Category/Type: New
Construction/Garden
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
5
Development Name: Northside Transit
Village II
Location: Miami-Dade County
Applicant/Borrower: Northside Property II,
Ltd.
Set-Asides:
MMRN: 100% at 60% AMI
SAIL/ELI/HC: 10% at 28% AMI
90% at 60% AMI
NHTF: 5 Units at 22% AMI
Developer/Principal: APC Northside
Property II Development, LLC / Howard
Cohen
Demographic/Number of Units: Elderly Non-
ALF/180
Requested Amounts:
MMRN: $20,800,000
SAIL: $7,000,000
ELI: $600,000
NHTF: $1,047,896
4% HC: $1,649,692
Development Category/Type: New
Construction/High Rise
Development Name: Residences at Dr. King
Boulevard
Location: Broward County
Applicant/Borrower: Residences at Dr. King
Boulevard, Ltd.
Set-Asides: 10% at 28% AMI
10% at 30% AMI
70% at 60% AMI
Developer/Principal: Residences at Dr. King
Boulevard Development, LLC / Howard
Cohen
Demographic/Number of Units: Family/120
Requested Amounts:
9% HC: $2,436,070
Development Category/Type: New
Construction/High Rise
Development Name: Sailboat Bend
Apartments II
Location: Broward County
Applicant/Borrower: Sailboat Bend II, Ltd.
Set-Asides: 10% at 28% AMI
81% at 60% AMI
Developer/Principal: APC Sailboat Bend II
Development, LLC / Howard Cohen
HEF Development, LLC / Tam English
Demographic/Number of Units: Elderly Non-
ALF/110
Requested Amounts:
9% HC: $2,561,000
Development Category/Type: New
Construction/High Rise
1. Background/Present Situation
a) The Developments listed in the charts above applied for and were awarded
funding from various Request from Applications as noted above. The funds are
being utilized to finance the construction of affordable housing in Miami-Dade
and Broward counties. All developments have been invited into credit
underwriting and are in various stages of construction.
b) On July 8, 2022, Florida Housing received a letter from the Applicant requesting
to make the same change to the Principals of the Developer on all of the above
transactions. The request letter and current/proposed Principal Disclosure Forms
for each Developer entity are provided as Exhibit A
.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
6
c) The request entails changing the Principals of Atlantic Pacific Communities,
LLC, a member of the Developer entities as follows:
Current Member
Proposed Member
Randy K. Weisburd, a natural person
Randy K. Weisburd Revocable Trust,
Randy K Weisburd as sole Trustee and
Beneficiary
d) In addition, Liz Jackson was replaced as an Officer/Director of HEF-Sailboat
Bend II, Inc (General Partner of Applicant) for Sailboat Bend Apartments II.
While the request does not require Board Approval, it is being included in the
overall request and approval package. The current/proposed Principal
Disclosure Forms for the Applicant entity are included in Exhibit A.
e) Per the RFAs, the Principals of each Developer identified in the Application,
including all co-Developers, may be changed only by written request of an
Applicant to Corporation staff and approval of the Board after the Applicant has
been invited to enter credit underwriting. In addition, any allowable replacement
of an experienced Principal of a Developer entity must meet the experience
requirements that were met by the original Principal.
f) As a requirement of the RFAs, at least one natural person Principal of at least
one of the Developer entities must meet specific Developer Experience
requirements. In the case of these Applications, Howard D. Cohen met the
requirement within the Applications and will remain a Principal of the
Developer entities.
g) The RFAs also go on to state that once the Carryover Allocation Agreement has
been executed by all parties, (a) replacement of the Applicant or a material
change in the ownership structure of the named Applicant will require Board
approval prior to the change, and (b) any non-material change in the ownership
structure of the name Applicant will require Corporation approval prior to the
change.
h) Staff has reviewed this request and finds that all other requirements of the RFAs
have been met.
2. Recommendation
a) Approve the request to allow for the Principal changes of the
Developer/Applicant entities as listed above.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
7
B. Request Approval of RFA Waiver of Loan Closing Deadline Extension and RFA Waiver for
Applicant Entity Change for Fletcher Black (RFA 2019-111 / 2020-069BR)
Development Name: Fletcher Black
Location: Bay County
Applicant / Borrower: Fletcher Black
Redevelopment, LLC
Set-Asides:
100% @ 60% AMI (MMRN & 4% HC)
10% @ 35% AMI (RRLP & ELI)
90% @ 60% AMI (RRLP)
Developers/Principals: Royal American
Properties, LLC / Joseph F. Chapman, IV,
InVictus Development, LLC / Paula McDonald
Rhodes, PCHA Developer, LLC / Panama City
Housing Authority
Demographic/Number of Units:
Family/100 units
Requested Amounts:
$12,500,000 Multifamily Mortgage Revenue Note
(MMRN)
$6,889,900 Rental Recovery Loan Program
(RRLP)
$698,600 Extremely Low Income (ELI)
$1,253,924 Housing Credits (4% HC)
Development Category/Type:
New Construction/Garden Apartments
1. Background/Present Situation
a) On August 1, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-111 for the Rental Recovery Loan Program (RRLP).
b) On December 13, 2019, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities.
c) On March 6, 2020, the Board approved the Final Order resolving all pending
litigation pertaining to the RFA, allowing staff to proceed with all necessary
credit underwriting activities. Staff issued an invitation to enter credit
underwriting to the Applicant on March 11, 2020. The acceptance was
acknowledged on March 16, 2020, giving them a firm loan commitment
issuance deadline of March 16, 2021.
d) On March 12, 2021, the Board approved a firm loan commitment issuance
deadline extension from March 16, 2021 to September 16, 2021.
e) On July 30, 2021, the Board approved the final credit underwriting report with a
positive recommendation for funding and directed staff to proceed with the
closing activities. On August 2, 2021, staff issued a firm commitment to the
Applicant giving them a loan closing deadline of January 31, 2022. A request
for an extension of the loan closing deadline may be considered by the Board for
an extension term of up to 90 Calendar Days.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
8
f) On January 21, 2022, the Board approved a loan closing deadline extension
from January 31, 2022 to May 2, 2022. On April 29, 2022, the Board approved
the credit underwriting update letter increasing the MMRN amount from
$11,500,000 to $12,500,000, and RFA waivers to extend the loan closing
deadline from May 2, 2022 to November 2, 2022 and payment of the extension
fee.
g) On September 20, 2022, staff received a request from the Borrower for an
additional RFA waiver of the loan closing deadline from November 2, 2022 to
February 2, 2023 (Exhibit B
). The HUD submission process has caused a delay
that requires an additional extension. Per the RFA, applicants may request one
(1) extension of the loan closing deadline for a term of up to 90 Calendar Days,
therefore this additional extension request requires a RFA waiver. Additionally,
the Applicant has requested, and staff has approved to the request to include
additional subordinate debt (see Multifamily Programs Information agenda).
h) Staff received a request from the Applicant to change the organizational
structure of the Applicant Entity (Exhibit B). The Applicant request changes to
the Applicant entity removing Waddell Plantation, Inc. as Manager/Member and
replacing with a special purpose entity, Waddell Fletcher Black, LLC as
Manager/Non-Investor Member. Waddell Plantation, Inc. is the is the sole
member of the special purpose entity. Per the RFA, the Applicant entity shall be
the borrowing entity and cannot be changed in any way (materially or non-
materially) until after loan closing. Therefore, the change of the Applicant
entity requires an RFA waiver. Staff has reviewed this request and finds that the
development meets all other requirements of the RFA.
2. Recommendation
a) Approve the request for RFA waiver of the loan closing deadline from
November 2, 2022 to February 2, 2023, RFA waiver for the Applicant Entity
Change, and direct staff to proceed with closing activities.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
9
C. Request Approval for Credit Underwriting Report for Somerset Landings (RFA 2020-205 /
2021-255SN / 2020-546C)
Development Name: Somerset Landings
Location: Seminole County
Applicant/Borrower: Somerset Landings, Ltd.
Set-Asides:
15.48% @ 30% AMI (SAIL, ELI & 4% HC)
61.90% @ 60% AMI (SAIL & 4% HC)
22.62% @ 80% AMI (SAIL & 4% HC)
3.57% @ 22% AMI (NHTF)
Developer/Principal: Somerset Landings
Developer, LLC/Jonathan L. Wolf; SHA
Development, LLC
Demographic/Number of Units:
Family/84 units
Requested Amounts:
$2,800,000 State Apartment Incentive Loan
(SAIL)
$600,000 Extremely Low Income (ELI)
$668,662 National Housing Trust Fund
(NHTF)
$1,205,248 Housing Credits (4% HC)
Development Category/Type:
Redevelopment/Garden Apartments
1. Background/Present Situation
a) On October 15, 2020, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2020-205 for SAIL Financing of Affordable Multifamily
Housing Developments to be used in Conjunction with Tax-Exempt Bond
Financing and Non-Competitive Housing Credits.
b) On January 22, 2021, the Board approved the final scores and recommendations
for the RFA and directed staff to proceed with all necessary credit underwriting
activities.
c) On June 18, 2021, the Board approved the Final Order resolving all pending
litigation pertaining to the RFA, allowing staff to proceed with all necessary
credit underwriting activities. Staff issued an invitation to enter credit
underwriting to the Applicant on June 23, 2021, which states that the firm loan
commitment must be issued within 12 months of the acceptance to enter credit
underwriting. The acceptance was acknowledged on June 29, 2021, giving them
a firm loan commitment issuance deadline of June 29, 2022. Applicants may
request one (1) extension of up to 6 months to secure a firm loan commitment.
As of June 9, 2022, Somerset Landings has not submitted a response to the
CHIRP-ITP.
d) On June 17, 2022, the Board approved firm loan issuance commitment deadline
extension from June 29, 2022, to December 29, 2022.
e) On October 20, 2022, staff received final credit underwriting report with a
positive recommendation for funding (Exhibit C
). Staff has reviewed this report
and finds that the development meets all requirements of the RFA.
2. R
ecommendation
a) Approve the final credit underwriting report and direct staff to proceed with
issuance of a firm commitment and closing activities.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
10
D. Request Approval for Credit Underwriting Report for Fulham Terrace (RFA 2020-205 /
2021-252SN / 2020-544C / 2022 CHIRP ITP)
Development Name: Fulham Terrace
Location: Hillsborough County
Applicant/Borrower: Fulham Terrace, Ltd.
Set-Asides:
15.52% @ 30% AMI (SAIL, ELI & 4% HC)
61.21% @ 60% AMI (SAIL & 4% HC)
23.28% @ 80% AMI (SAIL & 4% HC)
4.31% @ 22% AMI (NHTF)
Developer/Principal: Fulham Terrace
Developer, LLC /Jonathan L. Wolf
Demographic/Number of Units:
Elderly, Non-ALF/116 units
Requested Amounts:
$4,000,000 State Apartment Incentive Loan
(SAIL)
$3,510,696 Construction Housing Inflation
Response Program (CHIRP) Additional
Loan Funding
$600,000 Extremely Low Income (ELI)
$1,089,412 National Housing Trust Fund
(NHTF)
$1,756,234 Housing Credits (4% HC)
Development Category/Type:
New Construction/Garden Apartments
1. Background/Present Situation
a) On October 15, 2020, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2020-205 for SAIL Financing of Affordable Multifamily
Housing Developments to be used in Conjunction with Tax-Exempt Bond
Financing and Non-Competitive Housing Credits.
b) On January 22, 2021, the Board approved the final scores and recommendations
for the RFA and directed staff to proceed with all necessary credit underwriting
activities.
c) On June 18, 2021, the Board approved the Final Order resolving all pending
litigation pertaining to the RFA, allowing staff to proceed with all necessary
credit underwriting activities. Staff issued an invitation to enter credit
underwriting to the Applicant on June 23, 2021, which states that the firm loan
commitment must be issued within 12 months of the acceptance to enter credit
underwriting. The acceptance was acknowledged on June 29, 2021, giving them
a firm loan commitment issuance deadline of June 29, 2022. Applicants may
request one (1) extension of up to 6 months to secure a firm loan commitment.
d) On June 17, 2022, the Board approved extending the firm loan commitment
issuance deadline from June 29, 2022, to December 29, 2022.
e) On May 9, 2022, Florida Housing issued the 2022 Construction Housing
Inflation Response Program (CHIRP) Invitation to Participate (ITP). On June
21, 2022, staff received a CHIRP ITP Application from the Applicant requesting
additional SAIL funds.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
11
f) On October 20, 2022, staff received final credit underwriting report with a
positive recommendation for funding (Exhibit D
). Staff has reviewed this report
and finds that the development meets all requirements of the RFA and the
CHIRP ITP.
2. R
ecommendation
a) Approve the final credit underwriting report and direct staff to proceed with
issuance of a firm commitment and closing activities.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
12
E. Request Approval of the Credit Underwriting Report for New River Landing (RFA 2019-
111 / 2020-075RN / RFA 2021-211 / 2022-229V)
Development Name: New River Landing
Location: Franklin County
Applicant/Borrower: MHP New River Landing
LLC
Set-Asides:
10% @ 40% AMI (RRLP & ELI)
60% @ 60% AMI (RRLP)
6.67% @ 22% AMI (NHTF)
Developers/Principals:
MHP New River Landing Developer,
LLC/Christopher Shear
Demographic/Number of Units:
Family/30 units
Requested Amounts:
$4,988,724 Rental Recovery Loan Program
(RRLP)
$131,100 Extremely Low Income (ELI)
$1,820,000 National Housing Trust Fund (NHTF)
$1,200,000 Development Viability Loan Funding
(Viability Loan)
Development Category/Type:
New Construction/Single Family
1. Background/Present Situation
a) On August 1, 2019, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2019-111 for Rental Recovery Loan Program (RRLP).
b) On December 13, 2019, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities.
c) On March 6, 2020, the Board approved the Final Order resolving all pending
litigation pertaining to the RFA, allowing staff to proceed with all necessary
credit underwriting activities. Staff issued an invitation to enter credit
underwriting to the Applicant on March 11, 2020, which states that the firm loan
commitment must be issued within 12 months of the acceptance to enter credit
underwriting. The acceptance was acknowledged on March 12, 2020, giving it a
firm loan commitment issuance deadline of March 12, 2021. Applicants may
request one (1) extension of up to 6 months to secure a firm loan commitment.
d) On March 12, 2021, the Board approved the request to extend the firm loan
commitment issuance deadline from March 12, 2021 to September 12, 2021. On
September 10, 2021, the Board approved a RFA Waiver request from the
Borrower to extend the firm loan commitment issuance deadline from
September 12, 2021 to March 14, 2022.
e) On October 12, 2021, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2021-211 for Development Viability Loan Funding to assist
Applicants that have received a recent award since 2017 but have not yet started
construction or rehabilitation of their proposed Development and are
experiencing a financing gap for their Active Award. On December 10, 2021,
the Board approved the final scores and recommendations for RFA 2021-211
and directed staff to proceed with all necessary credit underwriting activities.
Staff issued a Notice of Preliminary Award to the Applicant on December 15,
2021.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
13
f) On March 4, 2022, the Board approved the RFA Waiver request to add NHTF
Funding and the RFA Waiver request for an additional extension to extend the
firm loan commitment issuance deadline from March 14, 2022, to September 14,
2022.
g) On August 5, 2022, the Board approved an RFA Waiver request from the
Borrower for an additional extension to extend the firm loan commitment
issuance deadline from September 14, 2022, to March 14, 2023.
h) On October 20, 2022, staff received final credit underwriting report with a
positive recommendation for funding (Exhibit E
). Staff has reviewed this report
and finds that the development meets all requirements of RFA 2019-111 and
RFA 2021-211.
2. R
ecommendation
a) Approve the final credit underwriting report and direct staff to proceed with
issuance of a firm commitment and closing activities.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
14
F. Request Approval of RFA Waiver of Applicant Entity Change Request and Credit
Underwriting Report for Alto Tower (RFA 2021-103 / 2021-294CSN / 2022 CHIRP ITP)
Development Name: Alto Tower
Location: Miami- Dade County
Applicant/Borrower: Blue CASL Dade, LLC
Set-Asides:
15% @ 25% AMI (SAIL, ELI & 9% HC)
85% @ 60% AMI (SAIL & 9% HC)
4.76% @ 22% AMI (NHTF)
Developers/Principals:
Blue Sky Developer, LLC/Shawn Wilson,
CASL Developer, LLC/Julien S. Eller
Demographic/Number of Units:
Homeless/84 units
Requested Amounts:
$4,600,000 State Apartment Incentive Loan
(SAIL)
$459,600 Extremely Low Income (ELI)
$1,119,104 Construction Housing Inflation
Response Program (CHIRP) Additional Loan
Funding
$1,236,800 National Housing Trust Fund (NHTF)
$1,522,000 Construction Housing Inflation
Response Program (CHIRP) National Housing
Trust Fund (NHTF)
$2,375,000 Housing Credits (9% HC)
Development Category/Type:
New Construction/Mid-Rise
1. Background/Present Situation
a) On February 2, 2021, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2021-103 for Housing Credit and SAIL financing for
Homeless Housing Developments Located in Medium and Large Counties.
b) On April 30, 2021, the Board approved the final scores and recommendations
for the RFA and directed staff to proceed with all necessary credit underwriting
activities.
c) On July 1, 2021, staff issued an invitation to enter credit underwriting to the
Applicant, which states that the firm loan commitment must be issued within 12
months of the acceptance to enter credit underwriting. The acceptance was
acknowledged on July 7, 2021, giving them a firm loan commitment issuance
deadline of July 7, 2022. Applicants may request one (1) extension of up to six
(6) months to secure a firm loan commitment. As of June 9, 2022.
d) On May 9, 2022, Florida Housing issued the 2022 Construction Housing
Inflation Response Program (CHIRP) Invitation to Participate (ITP). Staff
received a CHIRP ITP Application from the Applicant on July 5, 2022
requesting NHTF funds and additional SAIL funds.
e) On June 17, 2022, the Board approved a request from the Borrower for a firm
loan commitment issuance deadline extension from July 7, 2022, to January 9,
2023.
MULTIFAMILY PROGRAMS
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October 28, 2022 Florida Housing Finance Corporation
15
f) On August 9, 2022, staff has received a hardship waiver of provisions of the
RFA to add principals of the Manager/Member entity for Blue Dade M, LLC.
Weedon Enterprises, LLC will be added to keep the structure consistent with
Blue Sky Communities, LLC and all of Blue Sky’s other Manager/Member
entities (Exhibit F
). Secondarily, the Applicant has requested to change the
name of the Co-Developer entity from Blue Sky Developer, LLC to Blue AT
Developer, LLC. This change is for a specific single purpose entity for this
development only and all principles will remain the same. Per the RFA, the
Applicant entity shall be the borrowing entity and cannot be changed in any way
(materially or non-materially) until after loan closing. Therefore, the change of
the Applicant entity requires a RFA waiver. Finally, the Applicant has
requested, and staff has approved to the request to increase their hard cost
contingency reserve at the recommendation of the Credit Underwriter and
development type from High-Rise 7 to Mid-Rise 6 (see Multifamily Programs
Information agenda).
g) On October 20, 2022, staff received final credit underwriting report with a
positive recommendation for funding (Exhibit G
). Staff has reviewed this report
and finds that the development meets all requirements of the RFA and the
CHIRP ITP.
2. R
ecommendation
a) Approve the RFA waiver of Applicant Entity change request and final credit
underwriting report and direct staff to proceed with issuance of a firm
commitment and closing activities.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
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G. Request Approval to Applicant Organizational Change After Closing of the Loan and
Developer Organizational Change for Plateau Village (RFA 2020-103/2020-479CS)
Development Name: Plateau Village
Location: Polk County
Applicant/Borrower: Oakfield Groves
Apartments, LP
Set-Asides: 15% @ 40% AMI
85% @ 60% AMI
Developer/Principal: PHS Developer, LLC /
Steve Smith
Turnstone Development Corporation /
William Schneider
Demographic/Number of Units:
Homeless/Persons with Special Needs/72
Requested Amounts:
$3,820,000 State Apartment Incentive Loan
(SAIL)
$194,700 Extremely Low Income (ELI)
$1,700,000 Housing Credits (9% HC)
Development Category/Type:
New Construction/Garden
1. Background/Present Situation
a) Oakfield Groves Apartments, LP (“Applicant”) applied for and was awarded
funding from Request for Applications (RFA) 2020-103 for Housing Credit and
SAIL Financing For Homeless Housing Developments Located in Medium and
Large Counties. The funds are being utilized to finance the new construction of
a 72-unit Homeless development in Polk County. On July 21, 2020, staff issued
an invitation to the Applicant to enter credit underwriting. A 2020 Carryover
Allocation Agreement was issued by staff, effective on November 18, 2020. On
June 9, 2021, staff received a final credit underwriting report with a positive
recommendation for funding, which was approved by the Board on June 18,
2021. A Firm Loan Commitment was issued by staff on June 21, 2021 and
closing of the SAIL and ELI funding sources occurred on August 20, 2021.
b) On June 28, 2022, Florida Housing received a letter from the Applicant
requesting to make changes to the Applicant and co-Developer organizational
structures. Subsequently, on September 15, 2022, Florida Housing received
another letter from the Applicant requesting to make further changes to the
Applicant and co-Developer organizational structures. The (1) request letters,
(2) the updated Prior General Development Experience Chart, and (3) the
current and proposed Principal Disclosure Forms for the Applicant and co-
Developers are provided as Exhibit H
.
c) The first request would replace Gerald Badalamento as an Officer/Director of
Provident Housing Solutions, Inc. (“Provident”) with Barry Draper due to Mr.
Badalamento’s unfortunate passing. Provident is (1) the Sole Member of
Plateau Provident, LLC, the 0.0025% General Partner of the Applicant and (2),
the Sole Member of PHS Developer, LLC, one of the co-Developers.
d) The second request would replace William Schneider as Executive Director of
Turnstone Development Corporation (Turnstone) with Susan Wiemer due to the
resignation of Mr. Schneider and a restructuring of Turnstone’s board
composition. Turnstone is (1) the Sole Member of Turnstone Oakfield Groves
GP, LLC, the 0.0075% General Partner of the Applicant and (2) one of the co-
Developers. Ms. Wiemer will also replace Mr. Schneider as the Authorized
Principal Representative for the Applicant.
MULTIFAMILY PROGRAMS
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October 28, 2022 Florida Housing Finance Corporation
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e) Per the RFA, The Applicant entity shall be the recipient of the Housing Credits,
and the borrowing entity for the SAIL loan(s) and cannot be changed in any way
until after the closing of the loan(s). After loan closing, (a) any material change
will require review and approval of the Credit Underwriter, as well as approval
of the Board prior to the change, and (b) any non-material change will require
review and approval of the Corporation, as well as approval of the Board prior
to the change.
f) The RFA also states that the Principals of each Developer identified in the
Application, including all co-Developers, may be changed only by written
request of an Applicant to Corporation staff and approval of the Board after the
Applicant has been invited to enter credit underwriting. In addition, any
allowable replacement of an experienced Principal of a Developer entity must
meet the experience requirements that were met by the original Principal.
g) William Schneider met the Developer Experience requirement of the RFA.
Since he is being removed from the co-Developer structure, the Applicant has
provided an acceptable Prior General Development Experience Chart for Susan
Wiemer.
h) Staff has reviewed this request and finds that the Development meets all
applicable requirements of the RFA.
2. Recommendation
a) Approve the changes to the Applicant organizational structure after closing of
the loan and the co-Developer organizational structures as described above.
MULTIFAMILY PROGRAMS
Consent
October 28, 2022 Florida Housing Finance Corporation
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H. Request Approval of RFA Waiver for Applicant Entity Change for Baytown Apartments
(RFA 2021-108 / 2021-324CG / 2022 CHIRP ITP)
Development Name: Baytown Apartments
Location: Hillsborough County
Applicant/Borrower: Baytown Apartments,
LLC
Set-Aside(s):
20% @ 33% AMI (Grant, ELI & 9% HC)
80% @ 60% AMI (Grant & 9% HC)
10% @ 22% (HOME-ARP)
16.67% @ 30% (HOME-ARP)
Developer/Principal: Invictus Development,
LLC/Paula Rhodes; CDS Monarch,
Inc./Andrew Sewnauth
Demographic/Number of Units:
Persons with Developmental Disabilities/30
units
Requested Amounts:
$1,200,000 Grant
$1,978,600 Construction Housing Inflation
Response Program (CHIRP) Home
Investment Partnerships Program-American
Rescue Plan (HOME-ARP)
$920,000 Housing Credits (9% HC)
$421,150 (9% HC CHIRP)
Development Category/Type:
New Construction/Garden Apartments
1. Background/Present Situation
a) On May 20, 2021, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2021-108 for Financing for the Development of Housing for
Persons with Developmental Disabilities.
b) On June 18, 2021, the Board approved the final scores and recommendations for
the RFA and directed staff to proceed with all necessary credit underwriting
activities.
c) On June 25, 2021, staff issued an invitation to enter credit underwriting to the
Applicant, which states that the firm loan commitment must be issued within 12
months of the acceptance to enter credit underwriting. The acceptance was
acknowledged on June 30, 2021, giving them a firm loan commitment issuance
deadline of June 30, 2022. Applicants may request one (1) extension of up to 6
months to secure a firm loan commitment.
d) On May 9, 2022, Florida Housing issued the 2022 Construction Housing
Inflation Response Program (CHIRP) Invitation to Participate (ITP). Staff
received a CHIRP ITP Application from the Applicant on May 24, 2022.
e) On May 24, 2022, the Board approved extending the firm loan commitment
issuance deadline from June 30, 2022, to December 30, 2022.
f) On September 16, 2022, the Board approved the final credit underwriting report
and directed staff to proceed with issuance of a firm commitment and closing
activities.
MULTIFAMILY PROGRAMS
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October 28, 2022 Florida Housing Finance Corporation
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g) On October 17, 2022, staff received a request from the Applicant to change the
organizational structure of the Applicant Entity (Exhibit I
). The Applicant is
requesting to add a new Special Purpose Entity “SPE”), Baytown Apartments
MM, LLC to serve as Member and Manager of Baytown Apartments, LLC (the
Applicant). The syndicator is requesting the change to ensure that a default by
the current Member and Manager of the Applicant, CDS Monarch, Inc., with
respect to any other transaction to which CDS Monarch, Inc., is a party will not
trigger an event of default on this transaction. Per the RFA, The Applicant entity
shall be the recipient of the Housing Credits, and the grantee for the grant
funding and cannot be changed in any way (materially or non-materially) until
after the closing of the grant funding. Therefore, the change to the Applicant
entity requires an RFA Waiver. Staff has reviewed this request and finds that the
development meets all other requirements of the RFA and the CHIRP ITP.
2. R
ecommendation
a) Approve the RFA waiver to allow for organizational changes to the Applicant
Entity as described above.
PREDEVELOPMENT LOAN PROGRAM (PLP)
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. PREDEVELOPMENT LOAN PROGRAM (PLP)
A. Request Approval of Credit Underwriting Report for Community Coalition of South Dade,
Inc., a not-for-profit entity, for CCSD Goulds Homes (2022-002P-09)
DEVELOPMENT NAME
(“Development”):
CCSD Goulds Homes
APPLICANT/DEVELOPER
(“Developer”):
Community Coalition of South Dade, Inc.
CO-DEVELOPER:
N/A
NUMBER OF UNITS:
11 Homeownership
LOCATION (“County”):
Miami-Dade
TYPE:
Family
MINIMUM SET ASIDE:
50% @ 80% AMI, 80% @ 120% AMI
PLP LOAN AMOUNT:
$540,000
ADDITIONAL COMMENTS:
1. Background
a) On April 29, 2022, the Board approved a PLP loan in the amount of $600,000
for CCSD Goulds Homes. Of this loan amount, $200,000 was requested for the
acquisition of the development site. By rule, this acquisition funding is required
to be reviewed by a credit underwriter.
b) On August 9, 2022, First Housing accepted the assignment as credit underwriter
for the PLP acquisition loan.
2. Present Situation
a) On October 12, 2022, staff received a credit underwriting report (Exhibit A)
from First Housing with a positive recommendation. However, the credit
underwriter has recommended an adjusted amount for acquisition of $140,000.
This reduction in the acquisition portion means that the overall loan total is
reduced from $600,000 to $540,000. This reduction was due to the exclusion of
two parcels of land originally to be included in the development.
b) Staff has reviewed the credit underwriting report and support the positive
recommendation form the credit underwriter.
3. Recommendation
a) Approve the credit underwriting report for the acquisition portion of the PLP
Loan in the amount of $140,000 with an adjusted total PLP loan of $540,000 to
Community Coalition of South Dade, Inc. for CCSD Goulds Homes and allow
staff to commence with the loan closing process.
PREDEVELOPMENT LOAN PROGRAM (PLP)
Consent
October 28, 2022 Florida Housing Finance Corporation
2
B. Request Approval of PLP Loan Maturity Extension for Greater Lake City Community
Development Corporation (GLCCDC), a not-for-profit entity, for Sweetwater Apartments
(2017-001P-09)
DEVELOPMENT NAME (“Development”):
Sweetwater Apartments
APPLICANT/DEVELOPER (“Developer”):
GLCCDC
CO-DEVELOPER:
N/A
NUMBER OF UNITS:
56
LOCATION (“County”):
Columbia County
TYPE:
Family
MINIMUM SET ASIDE:
20% @ 50% AMI
PLP LOAN AMOUNT:
$500,000
ADDITIONAL COMMENTS:
1. Background
a) On May 10, 2019, the Board approved a loan to the Developer in the amount of
$500,000.
b) On February 11, 2020, the Applicant closed on the PLP loan. The maturity date
is February 11, 2023. To date, $59, 507.09 has been drawn on the loan.
2. Present Situation
a) On October 7, 2022, Florida Housing received a letter and revised development
plan from the assigned technical assistance provider (TAP) and a letter from the
developer (Exhibit B
) requesting a one-year extension to the maturity date for
this PLP Loan. The new maturity date will be February 11, 2024.
b) Staff has reviewed the recommendation and the revised development plan and
feel the one-year maturity extension is warranted.
3. Recommendation
a) Approve the one-year loan maturity extension to Greater Lake City Community
Development Corporation for Sweetwater Apartments and allow staff to
commence with amending the loan closing documents.
PREDEVELOPMENT LOAN PROGRAM (PLP)
Consent
October 28, 2022 Florida Housing Finance Corporation
3
C. Request Approval PLP Loan for Allegre Point, LLC a not-for-profit entity, for Griffin Lofts
(2022-005P-09)
DEVELOPMENT NAME
(“Development”):
Griffin Lofts
APPLICANT/DEVELOPER
(“Developer”):
Allegre Point, LLC
CO-DEVELOPER:
Carrfour Holding, LLC, Carrfour
Supportive Housing, Inc.
NUMBER OF UNITS:
60 rental units
LOCATION (“County”):
Polk County
TYPE:
Family
MINIMUM SET ASIDE:
20% @ 50% AMI
PLP LOAN AMOUNT:
$500,000
ADDITIONAL COMMENTS:
1. Background
a) To access PLP funding and upon receipt of an organization’s basic information
to Florida Housing, the organization is invited to participate in the program.
Florida Housing staff then assigns a technical assistance provider from a pool of
providers under contract with Florida Housing to assist the applicant to create a
development plan and budget, which is brought to the Board as part of a request
for approval of a PLP loan.
b) On August 19, 2022, the Developer submitted a PLP application for Griffin
Lofts.
c) On August 22, 2022, Florida Housing issued an Invitation to Participate in the
PLP to the Developer.
2. Present Situation
a) On October 7, 2022, staff received a development plan and a letter (Exhibit C)
from our technical assistance provider (TAP) recommending approval of the
PLP Loan in the amount of $500,000.
b) Staff has reviewed the Development Plan and determined that all budget items
are PLP eligible.
3. Recommendation
a) Approve the PLP Loan in the amount of $500,000 to Allegre Point, LLC for
Griffin Lofts and allow staff to commence with the loan closing process.
STATE APARTMENT INCENTIVE LOAN PROGRAM (SAIL)
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. STATE APARTMENT INCENTIVE LOAN PROGRAM (SAIL)
A. Request Approval of RFA Waiver of Applicant Entity Change Request and Credit
Underwriting Report for Captiva Cove III (RFA 2021- 205 / 2022-204S / 2021-525C / 2022
CHIRP ITP)
Development Name: Captiva Cove III
Location: Broward County
Applicant/Borrower: Captiva Cove III
Associates, Ltd./Mara Mades
Set-Asides:
15.094% @ 30% AMI (SAIL, ELI & 4% HC)
47.170% @ 60% AMI (SAIL & 4% HC)
37.736% @ 70% AMI (SAIL & 4% HC)
Developers/Principals: Cornerstone Group
Partners, LLC/Jorge Lopez
Demographic/Number of Residents:
Family/106 Units
Requested Amounts:
$3,180,000 State Apartment Incentive Loan
(SAIL)
$600,000 Extremely Low Income (ELI)
$4,300,000 Construction Housing Inflation
Response Program (CHIRP)
$1,773,568 Housing Credit (4% HC)
Development Category/Type:
New Construction/Mid-Rise (5-6 Stories)
1. Background/Present Situation
a) On August 17, 2021, Florida Housing Finance Corporation issued a Request for
Applications (RFA) 2021-205 SAIL Financing of Affordable Multifamily
Housing Developments to be Used in Conjunction with Tax-Exempt Bond
Financing and Non-Competitive Housing Credits.
b) On December 10, 2021, the Board approved the final scores and
recommendations for the RFA and directed staff to proceed with all necessary
credit underwriting activities. In March 2022, all petitions were withdrawn
resolving all pending litigation pertaining to the RFA, allowing staff to proceed
with all necessary credit underwriting activities.
c) On March 1, 2022, staff issued an invitation to enter credit underwriting to the
Applicant, which states that the firm loan commitment must be issued within 12
months of the acceptance to enter credit underwriting. The acceptance was
acknowledged on March 7, 2022, giving them a firm loan commitment issuance
deadline of March 7, 2023. Applicants may request one (1) extension of up to 6
months to secure a firm loan commitment.
d) On May 9, 2022, Florida Housing issued the 2022 Construction Housing
Inflation Response Program (CHIRP) Invitation to Participate (ITP). Staff
received a CHIRP ITP Application from the Applicant on July 1, 2022
requesting additional SAIL funds.
e) On June 27, 2022, staff received an RFA waiver request from the Applicant to
replace the managing member of the Applicant from Mara S. Mades with MSM
Interests, LLC (Exhibit A). The manager of MSM Interests LLC is Mara S.
Mades and the members are: (1) the Mara S. Mades Revocable Trust (60%) and
(2) the Mades Family Trust (40%). The trustee of the Mara S. Mades Revocable
STATE APARTMENT INCENTIVE LOAN PROGRAM (SAIL)
Consent
October 28, 2022 Florida Housing Finance Corporation
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Trust and the beneficiary is Mara Mades, while she is living, and, upon her
death, will pass to her son, Jackson Robert Mades. The trustee of the Mades
Family Trust is Jodie Susan Bakes and the beneficiary is Jackson Robert Mades.
These non-material changes are being made for estate planning purposes and
will have no effect on the management, operation or control of the principals.
Per the RFA, the Applicant entity shall be the borrowing entity and cannot be
changed in any way (materially or non-materially) until after loan closing.
Therefore, the change of the Applicant entity requires an RFA waiver.
f) On October 20, 2022, staff received final credit underwriting report with a
positive recommendation for funding (Exhibit B). Staff has reviewed this report
and finds that the development meets all requirements of the RFA and the
CHIRP ITP.
2. Recommendation
a) Approve the RFA waiver request for Applicant Entity change and final credit
underwriting report and direct staff to proceed with issuance of a firm
commitment and closing activities.
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
1
I. SPECIAL ASSETS
A. Request Approval of Update to Refinancing of First Mortgage Loans for Three
Developments of JE Properties and for Horizon House a Partial Release of Land
Development Name: Normandy
(“Development”)
Location: Duval County
Developer/Principal: VF Affordable Housing,
Inc. (“Developer”); Community Housing
Partners Corp of Florida (“Borrower”)
Set-Aside: HOME 20%@50%, 80% @
60%; AMI
HOME LURA 50 years.
Number of Units: 100
Allocated Amount: HOME $4,166,882
Demographics: Family
Servicer: First Hosing Development
Corporation
Development Name: Woodlawn Terrace
(“Development”)
Location: St. Johns County
Developer/Principal: Heritage Affordable
Development, Inc. (“Developer”); Community
Housing Partners Corp of Florida
(“Borrower”)
Set-Aside: HOME 21%@50%, 79% @
60%; AMI
HOME LURA 53 years.
Number of Units: 76
Allocated Amount: $4,555,000
Demographics: Family
Servicer: AmeriNat LLC
Development Name: Horizon House Sunset
(“Development”)
Location: Alachua County
Developer/Principal: Community Housing
Partners Corp of Florida (“Developer”);
CHPC Gainesville Horizon Sunset, LLC
(“Borrower”)
Set-Aside: SAIL 15%@33%;
85%@50% AMI
SAIL LURA: 53 years;
Number of Units: 80
Allocated Amount: SAIL $2,000,000;
Demographics: Family
Servicer: First Hosing Development
Corporation
1. Background
a) Normandy
(1) During the 2004 funding cycle, Florida Housing awarded a HOME loan
in the original amount of $4,166,882, to VF Affordable Housing, Inc.
(VFAH), a Florida non-profit corporation (“Borrower”), for the
development of a 100-unit apartment complex in Duval County,
Florida. A request for approval to apply for grant funds under the
American Recovery and Reinvestment Act’s Green Retrofit Program
(GRP) was approved by the Board at the September 2009 meeting. At
the July 2021 Board meeting, the request for Transfer of Ownership to
JE Properties was approved and renegotiated the HOME Loan to be co-
terminus with the first mortgage with a change in the interest rate from
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
2
0% to 1.5% along with an extension of 15 years making the new
maturity date December 31, 2058.
b) Woodlawn Terrace
(1) During the 2002 funding cycle, Florida Housing awarded a $4,555,000
Home loan to Woodlawn Terrace, LLC (“Borrower”), a Florida limited
liability company, for the development of a 76-unit apartment complex
in St. Johns County, Florida. The loan closed on October 8, 2003 and
matured on December 31, 2019. In August 2019, a request for a 3-year
extension was received and on March 30, 2020, the FHFC Board
approved. The Board approved the request for Transfer of Ownership
to JE Properties at the July 2021 meeting and renegotiated the HOME
Loan to be co-terminus with the first mortgage. The interest rate
changed from 0% to 1.5% including an extension of 17 years making
the new maturity date December 31, 2058.
c) Horizon House Sunset
(1) During the 2000 funding cycle, Florida Housing Finance Corporation
awarded a $2,000,000 State Apartment Incentive Loan (“SAIL) to
CHPC Gainesville Horizon Sunset, LLC, a Florida Limited Liability
Company (“Borrower”), for the construction of an 80-unit development
in Alachua County, Florida. The SAIL loan closed on October 29,
2003, and originally matured on October 29, 2018. The Board approved
requests to extend the loan to October 29, 2021. At the July 2021
Board meeting, the request for Transfer of Ownership to JE Properties
was approved and renegotiated the SAIL Loan to be co-terminus with
the first mortgage that consisted of a $1,000,000 paydown and an
interest rate change from 0% to 1.5% along with an extension of 18
years making the new maturity date December 31, 2058.
2. Present Situation
a) FHFC received correspondence dated August 3, 2022, and August 25, 2022,
from JE Properties – Normandy, Woodlawn Terrace and Horizon House Sunset
are requesting the Board’s approval for an update to refinancing of their current
bridge loans to the permanent HUD loans as approved at the July 2021 Board
meeting. They also request that FHFC amends and subordinates the FHFC loan
documents in accordance with HUD required provisions.
b) In addition, Horizon Sunset requests an approval for a Partial Release of land.
The property will be divided into two (2) separate parcels. Parcel 1 will be
transferred to an affiliate of Owner for future development and Parcel 2 will
remain owned by Owner and encumbered by the LURA and Horizon Sunset
SAIL Loan.
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
3
c) Staff received a credit underwriting report (Exhibit A
) from Seltzer Management
Group, Inc. providing a positive recommendation to refinance the first mortgage
loans, amend and subordinate HOME loan documents to the new first mortgage
loans and the partial release of land.
3. R
ecommendation
a) Approve the refinance of the existing first mortgages, amend and subordination
of the Home and SAIL loan documents to the new first mortgages and partial
release of land, all subject to the conditions outlined in the credit underwriter’s
report, further approvals and verifications by the credit underwriter, counsel and
appropriate FHFC staff, and direct staff to proceed with loan document
modification activities, as needed.
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
4
B. Request Approval of Refinancing of First Mortgage and Subordination of RRLP Loan
Documents for Palmetto Ridge Estates (2007 Series A/2005-321HR/2007-507C)
Development Name: Palmetto Ridge Estates
Location: Brevard County
Developer/Principal: American International
Group, Inc., Applicant/Borrower: Palmetto
Ridge Estates Limited Partnership, Owner:
Blackstone Real Estate Income Trust, Inc.
Set-Asides: 85% @ 60% (MMRB)
25% @ 35% & 75% @ 60% AMI
(RRLP & 4% HC) LURA- MMRB &
RRLP- 50 years; HC-30 years
Number of Units: 192
Allocated Amount: MMRB -
$11,500,000; RRLP - $7,400,000; HC
4% - $954,728
Demographics: Family
Servicer: AmeriNat LLC
1. Background
a) Florida Housing financed the above referenced Development in 2007 with
$11,500,000 in Tax Exempt Bonds designated as 2007 Series A and a
$7,400,000 RRLP Loan. In addition, $954,728 in Housing Credits was allocated
to this Development. In October 2021 the Board approved the transfer of
ownership interests in the General Partner of the Development from affiliates of
American International Group, Inc., to affiliates of Blackstone Real Estate
Income Trust, Inc.
2. Present Situation
a) The Borrower has requested Florida Housing’s consent to the refinancing of the
first mortgage with payoff of the FHFC bonds and subordination of the MMRB
LURA, RRLP loan documents and ELIHA to the new first mortgage.
b) AmeriNat has reviewed this request and provided a positive recommendation
(Exhibit B
) for the refinancing of the first mortgage and subordination of the
MMRB LURA, RRLP loan documents and ELIHA.
3. R
ecommendation
a) Approve the refinancing of the first mortgage with payoff of the FHFC bonds
and subordination of the RRLP loan documents to the new first mortgage and
ELIHA, subject to the conditions in the credit underwriting report, and further
approvals and verifications by the Credit Underwriter, Bond Counsel, Special
Counsel, and appropriate Florida Housing staff, and direct staff to proceed with
loan document modification activities, as needed.
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
5
C. Request Approval of The Transfer of Florida Community Land Trust Portfolio for
Community Loan Fund Demonstration (CLT05-04-1)
Development Name: Community Loan Fund
(“Development”)
Location: Citrus County
Developer/Principal: Community Housing
Partners (“Developer”); Florida Low Income
Housing Associates, Inc. (Borrower”)
Set-Aside: 50% @ 50%, 50%@65%
AMI;
LURA: 50 years
Number of Units: 10
Demonstration Loan: $1,549,000;
Demographics: Family
Monitor: Florida Housing
1. Background
a) In 2006, Florida Housing Finance Corporation (“Florida Housing”) awarded a
Demonstration Loan in the amount of $1,549,000 to Florida Low Income
Housing Associates, Inc. (“FLIHA”, “Developer”). The Demonstration loan
program was for the acquisition of land by a Community Land Trust (“CLT”)
for affordable housing. FLIHA built 10 residential units in Citrus County.
FLIHA changed its name to Community Housing Partnership in 2013. The
Demonstration loan was forgivable and was satisfied in 2015.
2. Present Situation
a) The Owner requests approval from the Board for transfer of ownership of the
Community Land Trust to Homes In Partnership, Inc. and assumption of the
Land Use Restriction Agreement (“LURA”).
b) Staff received a credit underwriting report (Exhibit C
) from Seltzer Management
Group with a positive recommendation that the buyer has the prerequisite
financial strength and experience to own and operate the development
successfully.
3. R
ecommendation
a) Approve the transfer of ownership, subject to the conditions provided in the
credit underwriter’s report, with further approvals and verifications by the credit
underwriter, counsel, and appropriate Florida Housing staff, and direct staff to
proceed with loan document modification activities, as needed.
SPECIAL ASSETS
Consent
October 28, 2022 Florida Housing Finance Corporation
6
D. Request Approval of the Recapitalization of the Structure of Flagler Village Limited
Partnership, Ltd., a Florida Limited Partnership, for Flagler Village Apartments (RFP
2010-04/2010-021CX/2011-002CX/2009-216C)
Development Name: Flagler Village
Apartments (“Development”)
Location: Monroe County
Developer/Principal: Overseas Developer,
LLC/Wendover Group (“Developer”)/
Flagler Village Limited Partnership, Ltd.
(“Borrower”)
Set-Aside: TCEP & HC 10%@28%;
90%@60% AMI
TCEP: 15 years; EUA 50 years
Number of Units: 49
Allocated Amount: TCEP $2,450,000; HC
$1,225,000
Demographics: Youth Aging Out of Foster
Care
Servicer: Seltzer Management Group
1. Background
a) During the 2010 funding cycle, Florida Housing Finance Corporation (“Florida
Housing”) awarded a Tax Credit Exchange Program (“TCEP”) Loan in the
amount of $2,450,000 to Flagler Village Limited Partnership, Ltd. (“Borrower”),
a Florida limited partnership, for the development of a 49-unit property in
Monroe County, Florida. The loan closed on November 23, 2010. The
Development also received a 2009 allocation of low-income housing tax credits
of $1,225,000.
2. Present Situation
a) The Borrower requests consent from the Board to recapitalize the financial
structure of the Development by placing a new first mortgage in the amount of
$1,500,000 to rehab the Development. The Borrower further requests that the
current FHFC first mortgage TCEP loan be subordinated to the new first
mortgage with a current outstanding balance of $815,850.
b) Staff received a credit underwriting report (Exhibit D
) from Seltzer Management
Group with a positive recommendation for approval of the recapitalization and
subordination of the TCEP loan.
3. R
ecommendation
a) Approve the recapitalization and subordination of the TCEP loan to the new first
mortgage, subject to the conditions provided in the credit underwriter’s report,
further approvals and verifications by the credit underwriter, counsel, and
appropriate Florida Housing staff, and direct staff to proceed with loan
document modification activities, as needed.