MOTION TO ADOPT Resolution No. 2019-314 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 $25,000,000 Multifamily Housing Revenue Bonds, 2019 Series B (Praxis of Deerfield Beach) (the “Bonds”) for the purpose of financing the acquisition, rehabilitation, and equipping of Praxis of Deerfield Beach 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 Bonds; approving the forms of and authorizing the execution and delivery of (i) a Trust Indenture by and between the HFA and the Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”); (ii) a Loan Agreement by and between the HFA and Praxis Venture LP (the “Borrower”); (iii) a Land Use Restriction Agreement by and among the HFA, the Trustee, and the Borrower; (iv) a Bond Purchase Agreement by and among the HFA, RBC Capital Markets, LLC and Raymond James & Associates, Inc., as Bond Purchaser (collectively, the “Purchaser”), and the Borrower (the “Bond Purchase Agreement”); and (v) a Trustee Fee Agreement by and between the HFA and the Trustee; approving and authorizing the execution and delivery by the HFA of certain additional agreements, instruments, certifications and affidavits necessary or desirable in connection with the issuance of the Bonds; authorizing the negotiated sale of the Bonds to the Purchaser pursuant to the Bond Purchase Agreement; authorizing the appointment of a bidding agent pursuant to the Bond Purchase Agreement; authorizing the preparation and distribution of a Preliminary Official Statement for the Bonds and authorizing the preparation, distribution, and execution of a final Official Statement in connection with the issuance and delivery of the Bonds; authorizing the appointment of a Trustee, paying agent, and registrar of the Bonds; 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 Bonds by the HFA; authorizing the proper Officers of the HFA to do all things necessary or advisable in connection with the issuance of the Bonds; and providing for an effective date for this Resolution. (Commission District 4) (Deferred from June 4, 2019 - Item No. 26)
ACTION: (T-10:51 AM) Approved.
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
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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 November 14, 2018, the HFA received a multifamily bond application for the Project. The Borrower has requested the HFA to issue Multifamily Mortgage Revenue Bonds, 2019 Series B (Praxis of Deerfield Beach), in the aggregate principal amount not to exceed $25,000,000 for the purpose of financing the acquisition, rehabilitation and equipping of a 224-unit multifamily residential rental housing development for persons of low to moderate income, known as “Praxis of Deerfield Beach”, and located at 1450 Southwest 11th Way and 1101 Southwest 15th Street in the City of Deerfield Beach.
At its December 19, 2018 meeting, the HFA adopted Resolution No. 2018-026 (Exhibit 2), pursuant to which the HFA, among other things, (i) declared its official intent to issue the Bonds in the amount not to exceed $25,000,000, and (ii) authorized (a) the holding of a public hearing under the Tax Equity and Fiscal Responsibility Act (the “TEFRA Hearing”), and (b) the publication of a notice of the TEFRA Hearing (the “TEFRA Notice”). The HFA (i) caused the TEFRA Notice to be published in the Sun Sentinel on April 10, 2019, and (ii) held the TEFRA Hearing on April 25, 2019, each as required by Section 147(f) of the Code. The Mayor and City Manager of Deerfield Beach were provided notice concerning the proposed issuance of the Notes.
The Bonds will be issued pursuant to a Trust Indenture between The Bank of New York Mellon Trust Company, N.A. a national banking association, as trustee and the HFA (the “Indenture”), which Indenture will set forth the terms, conditions, and covenants (i) upon which the HFA will issue the Bonds, and (ii) that are necessary to secure the Bonds and protect the rights of the holder of the Bonds. The proceeds of the Bonds will be used to make a loan to the Borrower (the “Loan”) to finance the acquisition, rehabilitation, and equipping of the Project.
At its May 8, 2019 meeting, the HFA approved Resolution 2019-006 (Exhibit 3), which, among other things, authorized (i) the issuance of the Bonds in the amount not to exceed $25,000,000 to finance the Project, which financing shall be tax-exempt, and (ii) the form, execution and delivery of various documents related to the Bonds, all of which is subject to the approval of the Board. The proposed transaction is anticipated to close on or about July 31, 2019. Resolution 2019-006 was prepared by Bond Counsel and approved as to form by the Office of the County Attorney.
Adoption of this Resolution (i) authorizes the HFA to issue the Bonds to finance the acquisition, rehabilitation, and equipping of the Project, (ii) ratifies (a) the publishing of the TEFRA Notice, and (b) the holding of, and minutes resulting from, the TEFRA Hearing (Exhibit 4), and (iii) approves the form, execution, and delivery of various documents in connection with the delivery of the Bonds.
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