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 16, 2002, the Board of County Commissioners adopted Resolution 2002-314, authorizing the Housing Finance Authority of Broward County (the “HFA”) to issue not to exceed $13,700,000 of its Multifamily Housing Revenue Bonds (Laguna Pointe Apartments Project), Series 2002. Pursuant to Resolution 2002-314, on June 19, 2002, the HFA issued its $13,300,000 Housing Finance Authority of Broward County, Florida Multifamily Housing Revenue Bonds (Laguna Pointe Apartments Project), Series 2002 (the “Bonds”).
The Bonds were issued to provide funds to assist Laguna Pointe Associates, Ltd. (the “Borrower”) with the financing of the acquisition, construction and equipping of a 188-unit multifamily residential rental apartments project for individuals and families of low and moderate income. Laguna Pointe Apartments (the “Project”) is located at 903 Southwest 15 Street in the City of Pompano Beach.
On February 28, 2019, the Borrower advised the HFA of its intent to refinance the Project and redeem the Bonds. Pursuant to the Trust Indenture dated as of June 1, 2002, a defeasance will be required if the Bonds are refinanced prior to June 1, 2019. The Project will be refinanced with a new loan (the “Refinancing Loan”) from First Housing Development Corporation of Florida (the “Lender”). The Refinancing Loan will be insured by the United States Department of Housing and Urban Development (“HUD”). The Borrower will use the proceeds from the Refinancing Loan, together with certain other sources of funds, to refinance the Project and to defease and redeem the Bonds. The transaction is anticipated to close no later than May 31, 2019.
The Lender has requested certain amendments to the Land Use Restriction Agreement dated as of June 1, 2002 (the “LURA”) in order to update certain definitions and provisions referenced therein for the subordination of the LURA to the mortgage (or deed of trust) and other loan documents made by the Borrower in favor of the Lender and/or HUD. The LURA will continue to remain in effect until the Bonds are redeemed in full, at which time the Qualified Project Period will expire according to the LURA.
At its March 21, 2019 meeting, the HFA approved Resolution 2019-003 (Exhibit 2), authorizing the form and execution of the documents necessary to accomplish (i) the refinancing of the Project, (ii) the defeasance and redemption of the Bonds, (iii) waiver of the prepayment certificate time period and (iv) the subordination of the LURA, including, specifically, (i) a Satisfaction of Mortgage, (ii) a First Amendment to and Subordination of Land Use Restriction Agreement, and (iii) an Escrow Trust Deposit and Defeasance Agreement. Resolution 2019-003 was prepared by Bond Counsel and approved as to form by the Office of the County Attorney.
Adoption of this Resolution (Exhibit 2) provides authorization for the HFA to execute the documents necessary to facilitate (i) the refinancing of the Project, (ii) the defeasance and redemption of the Bonds, and (iii) the subordination of the LURA. |