THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY DEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
On May 6, 2003, the Board of County Commissioners approved Resolution 2003-349 authorizing the Housing Finance Authority of Broward County (the “HFA”) to issue its Multifamily Housing Revenue Bonds, Series 2003 up to $14,825,000 and up to $1,000,000 Taxable Multifamily Housing Revenue Bonds.
The purpose of the issuance was to provide funds to assist Harbour Cove, Ltd (the “Borrower”) to acquire, construct, and equip a 212-unit multifamily rental housing development for individuals and families of low and moderate income. The development is located at 100 Northwest 9 Terrace in the City of Hallandale.
On February 5, 2014, the Borrower advised the HFA of its intent to refinance the property with a new loan from Oak Grove Capital Commercial Mortgage, LLC (the “Lender”), such loan to be insured by the United States Department of Housing and Urban Development (“HUD”) and the Borrower, will use the proceeds from the refinancing loan, together with certain other sources of funds to refinance the property. The transaction is anticipated to close no later than May 30, 2014. The Lender has requested certain amendments to the Land Use Restriction Agreement (the “LURA”) in order to update certain definitions and provisions in the subordination of the Land Use Restriction Agreement to the mortgage or deed of trust from the Borrower in favor HUD; and the Borrower wishes to prepay all amounts due and payable under the Loan Agreement and Indenture to defease the bonds and release the lien of the Trust Indenture. The LURA will continue to remain in effect during and until the expiration of the Qualified Project Period (QPP) which expires on March 31, 2022. The Borrower has agreed to pay the HFA a one-time, upfront compliance monitoring fee in the amount of $47,700 to provide compliance monitoring during the QPP.
At the April 9, 2014 meeting, the HFA approved Resolution 2014-007 (Harbour Cove Apartments Project) authorizing the amendment to the LURA, executing the Escrow Trust Deposit and Defeasance Agreement and Subordination Agreement as required by HUD to evidence the new loan. The Resolution 2014-007 was prepared by Bond Counsel and approved as to form by the Office of the County Attorney.
Adoption of this Resolution approves the refinance with a new loan from the Lender and the amendment to the LURA and the execution of the Subordination Agreement for Harbour Cove Apartments Project.
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