Broward County Commission Regular Meeting

A. MOTION TO APPROVE Subordination Agreement to subordinate existing County Home Investment Partnerships Program (HOME)  loan made to Northwest Properties I, Ltd., for the development of a multifamily affordable housing project currently known as Northwest Gardens I, in favor of TD Bank N.A., as senior lender, in connection with the refinancing of the senior indebtedness on the mortgaged property; and authorizing the County Administrator to execute same.

ACTION:  (T-11:05 AM)  Approved. 

VOTE: 9-0.    

B. MOTION TO APPROVE Subordination Agreement to subordinate existing Affordable Housing Program (AHP) County loan made to Northwest Properties I, Ltd., for the development of a multifamily affordable housing project currently known as Northwest Gardens I, in favor of TD Bank N.A., as senior lender, in connection with the refinancing of the senior indebtedness on the mortgaged property; and authorizing the County Administrator to execute same. (Commission District 9)

ACTION:  (T-11:05 AM)  Approved. 

VOTE: 9-0.    

Subordination Agreements in connection with County mortgages require approval of the Board of County Commissioners, unless they meet the requirements of Section 27.209 of the Broward County Administrative Code.

Allows Northwest Properties I Ltd. to refinance with new senior lender to reduce its interest rate from 7.5% to 5.78% to save $5,233 per month.

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 value "Offering sustainable, compatible, innovative housing options for all income levels, including integrated, permanent supportive housing" and the corresponding goal to "Increase the availability of affordable housing of all types, countywide, in every community using effective, uniform criteria, policies and strategies." 

Northwest Properties I Ltd is a Florida limited partnership whose partners are entities controlled entirely by the Housing Authority of the City of Ft. Lauderdale. The borrower was formed to facilitate the financing, construction and/or rehabilitation of Northwest Gardens I, a 143-unit affordable housing project that is typically 100% occupied ("Property"). It is located in zip code 33311 at the corner of W. Sistrunk Blvd. (NW 6th Street) and NW 10th Avenue. The appraised value is $15.2 million. 

There are currently four total loans on the property. The project was funded in 2010 primarily with housing tax credits through the Florida Housing Finance Corporation which are deferred and forgiven at 1/15th per year with no  payment required. The Broward County AHP loan of $500,000 was recorded in 2010, has no payments and is forgiven at maturity in year 30. A $250,000 HOME loan was recorded in 2011 and is deferred, meaning payments are not required and the loan is payable at maturity in year 30. There is also a senior loan of $3.5 million which is the loan being refinanced to secure the more favorable interest rate. The proposed action would allow Northwest Properties I Ltd. to refinance with new senior lender to reduce its interest rate from 7.5% to 5.78% to save $5,233 per month. The HOME loan and AHP loan are currently subordinate to the senior loan and will remain so with the new lender.  

Please note that the bank will execute the documents after the Board's approval.

The Subordination Agreements have been reviewed and approved as to form by the Office of the County Attorney.

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