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.
BHS, has provided affordable housing for approximately 23 years for Broward County’s homeless population who suffer from mental illness and special needs.
In 2003, the Housing Finance Authority approved a $200,000 loan for BHS with a zero percent interest rate with an August 31, 2018 maturity date (BHS Loan). Loan proceeds were used to finance a new construction project comprised of 11 rental units for persons with special needs. The project is located at 10100 Northwest 35 Street in the City of Coral Springs.
On October 9, 2015, the Housing Finance Authority received a letter from BHS requesting that the Housing Finance Authority forgive or subordinate its loan thereby enabling the BHS to secure additional financing with City National Bank to purchase an alternative building. The building was necessary due to operational growth (from 145 to over 322 clients) and staff increases (from 11 to 16).
On November 10, 2015, the Housing Finance Authority Board approved BHS’s request to subordinate the loan in order for BHS to secure additional financing with City National Bank.
On December 8, 2015 (Agenda Item 19), the Board of County Commission (the “BOCC”) adopted Resolution 2015-673 authorizing the Housing Finance Authority to execute a Subordinate Agreement.
On September 10, 2018, Staff received a letter from BHS informing staff that Broward County’s Homeless Initiative Partnership program grant in the amount of $513,000 had been defunded. Due to this decrease in funding, BHS indicated they were unable to meet their financial obligation to the Housing Finance Authority in reference to the repayment of BHS Loan which was due on August 31, 2018.
At the March 21, 2019 meeting, the Housing Finance Authority approved Resolution 2019-002 authorizing (i) an Amended and Restated Promissory Note to be executed by BHS in favor of HFA; (ii) modifying the term of a $200,000 loan for BHS and making an initial payment of $2,917 on or before April 30, 2019, followed by monthly payments of $972 every month through a new Maturity Date (January 31, 2034); and (iii) Amended the Restated Mortgage Deed and Security Agreement. It should be noted that the HFA also approved the reduction in the note by $25,000 dollars should BHS meet their monthly payment requirement through the term of the mortgage. Resolution 2019-002 was approved as to form by The Office of the County Attorney.
Adoption of this Resolution authorizes the Housing Finance Authority to enter into the amended and restated promissory note and mortgage documents between the Housing Finance Authority and BHS.
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