Broward County Commission Regular Meeting

MOTION TO ADOPT Resolution No. 2018-353 of the Board of County Commissioners of Broward County, Florida authorizing the issuance by the Housing Finance Authority of Broward County, Florida (the “HFA”) of its not to exceed $38,000,000 Multifamily Mortgage Revenue Note, 2018 Series A (Emerald Palms Apartments) (the “Note”) for the purpose of financing the acquisition, rehabilitation and equipping of Emerald Palms Apartments located in Broward County, Florida (the “Project”); establishing parameters for the award of the sale thereof and establishing criteria for determining the terms thereof, including interest rates, interest payment dates, maturity schedule and other terms of such Note; approving the forms of and authorizing the execution and delivery of (i) a Funding Loan Agreement by and among the HFA, Jones Lang Lasalle Multifamily, LLC, as initial Funding Lender (the “Funding Lender”), and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent (the “Fiscal Agent”); (ii) a Project Loan Agreement by and among the HFA, the Fiscal Agent and Emerald Palms Venture LP (the “Borrower”); (iii) a Land Use Restriction Agreement by and among the HFA, the Fiscal Agent and the Borrower; (iv) an Assignment of Security Instrument by the HFA to the Fiscal Agent; (v) an Assignment of the Project Note by the HFA to the Fiscal Agent; (vi) a Placement Agent Agreement by and between the HFA and RBC Capital Markets, LLC and Raymond James & Associates, Inc., as Placement Agents; and (vii) a Fiscal Agent Fee Agreement by and between the HFA and the Fiscal Agent; approving and authorizing the execution and delivery by the HFA of certain additional agreements necessary or desirable in connection with the issuance of the Note; authorizing the HFA to consent to the Borrower placing subordinate financing on the Project and approving the execution of such agreements as may be necessary  in connection with such consent; waiving the fee for services related to the HFA’s annual audit of the Project; approving and ratifying the HFA’s publication of a notice of public hearing and the subsequent holding of such public hearing each under Section 147(f) of the Internal Revenue Code of 1986, as amended, in connection with the issuance of the Note by the HFA; authorizing the proper Officers of the HFA to do all things necessary or advisable in connection with the issuance of the Note; and providing an effective date for this Resolution. (Commission District 7)

ACTION:  (T-10:33 AM)  Approved.
 
VOTE: 9-0.

Housing Finance Authority of Broward County, Florida, is empowered under (i) the laws of the State of Florida, including the Florida Housing Finance Authority law, Florida Statutes, Sections 159.601 through 159.623 (the “Act”), and (ii) Ordinance 79-41 enacted by the Board of Commissioners of Broward County, Florida on June 20, 1979, as amended, to issue multifamily housing revenue bonds and refund said bonds.

Allows the Housing Finance Authority of Broward County to finance the cost of the acquisition, rehabilitation and equipping of a multifamily rental housing development, known as “Emerald Palms Apartments”, and approve a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 (the “TEFRA Hearing”), as amended, and notice thereof.

No Previous Action.

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 March 20, 2017, Housing Finance Authority of Broward County (the “HFA”) received a multifamily bond application from MRK Partners Inc. (the “Developer”) pertaining to the acquisition and rehabilitation of a 318-unit multifamily residential rental housing development for persons of low to moderate income, known as “Emerald Palms Apartments” (the “Project”), located at 5331 Southwest 43 Terrace in the City of Dania Beach.

Emerald Palms Venture LP, a Florida limited partnership (the “Borrower”) has requested the HFA to issue its Multifamily Mortgage Revenue Note, 2018 Series A in the amount not to exceed $38,000,000 to provide funds with which Jones Lang LaSalle Multifamily, LLC, a Delaware limited liability company, as the initial funding lender (the “Funding Lender”), will make a loan to the HFA (the “Funding Loan”), and which proceeds will be used by the HFA to make a loan to the Borrower (the “Project Loan”) to finance the acquisition, rehabilitation and equipping of the Project.

At its April 19, 2017 board meeting, the HFA adopted Resolution No. 2017-002 (Exhibit 2), a) declaring its official intent to issue the Note in the amount not to exceed $38,000,000 in order to finance the Project, and b) authorizing the HFA to publish notice of and hold a public hearing under the Tax Equity and Fiscal Responsibility Act (the “TEFRA Hearing”). The TEFRA Hearing was held on April 5, 2018 as required by Section 147(f) of the Code, and the Mayor and City Manager of Dania Beach were provided notice concerning the proposed issuance of the Note.

At its June 20, 2018 board meeting, the HFA adopted Resolution No. 2018-017 (Exhibit 3), authorizing the issuance of the Note in the amount not to exceed $38,000,000 to finance the Project, which financing shall be tax-exempt, subject to the approval of the County Commission. The HFA intends to issue the Note for the purpose of providing funds to the Funding Lender, who will make the Funding Loan to the HFA. The HFA will then use the proceeds of the Funding Loan to make the Project Loan to the Borrower in order to finance the acquisition, rehabilitation and equipping of the Project. The transaction is scheduled to close in August 2018. Resolution No. 2018-017 was prepared by Bond Counsel and approved as to form by the Office of the County Attorney. 
 

Adoption of this Resolution authorizes the HFA to issue the Note to finance the acquisition, rehabilitation and equipping of the Project and ratifies (i) the publishing of the TEFRA Notice by the HFA on March 20, 2018, and (ii) the holding of, and minutes resulting from, the TEFRA Hearing held by the HFA on April 5, 2018, in connection with the issuance of the Note, in accordance with the Code (Exhibit 4).

Ralph Stone, Director, Housing Finance and Community Redevelopment Division, (954) 357-5320