THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s vision of offering sustainable, compatible, innovative housing options for all income-levels, including integrated supportive housing and rapid-rehousing: Goal 1: Facilitate a regional approach to growth and redevelopment through coordination and collaboration at the federal, state, county, and local levels; Goal 2: Strengthen stakeholder partnerships to increase the availability of affordable housing of all types (e.g. rental, purchase, supportive, etc.), county wide, in every community; and Goal 3: Develop, through effective community collaboration, neighborhoods and communities incorporating intermodal connectivity, while integrating energy efficiency ,community resilience, and other livability standards and initiatives.
On April 10, 2001, the Board of County Commissioners approved Resolution 2001-330 authorizing the Housing Finance Authority of Broward County (the “HFA”) to issue its Multifamily Housing Revenue Bonds, Series 2001A in an amount not to exceed $11,000,000 and its Taxable Multifamily Housing Revenue Bonds, Series 2001B in an amount not to exceed $625,000 (collectively, the “Bonds”). In connection with the issuance of the Bonds, the HFA, Pembroke Villas Apartments, Ltd (the “Borrower”) and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) entered into a Land Use Restriction Agreement, dated as of June 1, 2001 (the “LURA”).
The proceeds of the Bonds were used to make a loan to the Borrower (the “Loan”) to finance the acquisition, construction and equipping of a 180-unit multifamily residential rental housing development for individuals and families of low and moderate income. Pembroke Villas Apartments (the “Project”) is located at 4801 Southwest 41 Street in the Town of Pembroke Park.
On January 17, 2017, pursuant to the terms of (i) the Trust Indenture dated as of June 1, 2001, between the HFA and the Trustee, and (ii) the Loan Agreement dated as of June 1, 2001, between the HFA and the Borrower, the Loan was paid in full and the Bonds were redeemed in full. As of this date the Bonds are no longer outstanding.
On August 17, 2017, the HFA was advised that the Borrower is in the process of refinancing the Project with the proceeds of a new loan (the “Lender Loan”) from First Housing Development Corporation of Florida (the “Lender”). The Lender Loan will be insured by the U.S. Department of Housing and Urban Development (“HUD”). The Lender has requested that the LURA be subordinated to the mortgage securing the Lender Loan and other Lender Loan documents made by the Borrower to favor the Lender and HUD. The HFA and the Borrower will enter into a Subordination Agreement of Existing Land Use Restriction Agreement (the “Subordination Agreement”). Pursuant to the terms of the LURA, the Borrower is required to continuously comply with terms of the LURA until the expiration of the Qualified Project Period (as defined in the LURA) on October 15, 2018.
At its September 20, 2017 meeting, the HFA approved Resolution 2017-006 authorizing the execution and delivery of the Subordination Agreement to the Lender and/or HUD. Resolution 2017-006 was prepared by Bond Counsel and approved as to form by the Office of the County Attorney.
Adoption of this Resolution provides authorization for the HFA to execute and deliver the Subordination Agreement.
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