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Agenda 06/08/2010 Item #16D 9 Agenda Item No. 1609 June 8, 2010 Page 1 of 10 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sign a letter encouraging Florida Housing Finance Corporation to maintain the afford ability of rental apartment developments following foreclosure sales initiated by the Corporation and to accept a report of options available to Collier County to maintain the affordability of rental apartment developments that may be the subject of future foreclosure proceedings. OBJECTIVE: To approve and authorize the Chairman to sign a letter encouraging Florida Housing Finance Corporation to maintain the affordability of rental apartment developments following foreclosure sales initiated by the Corporation and to accept a report of options available to Collier County to maintain the affordability of rental apartment developments that may be the subject of future foreclosure proceedings. CONSIDERATIONS: On May 25, 2010, under Staff and Commission General Communications, the Board of County Commissioners expressed concem when discussing the recent disclosure that two affordable rental apartment developments located in Collier County are either pending foreclosure or have been foreclosed upon by Florida Housing Finance Corporation ("FHFC"). The third property discussed is currently the subject of foreclosure by the U.S. Department of Housing and Urban Development and has no association with FHFC. As such, consideration of said property has been excluded from this item. Specifically, the two projects are Heritage Apartments and Turtle Creek Apartments. Based upon information contained on FHFC's website, and attached to this item as back-up material, Heritage Apartments is pending foreclosure, while foreclosure proceedings against Turtle Creek Apartments are complete. These two projects, when taken together, consist of 588 units of affordable rental apartments. The Board of County Commissioners requested that a letter be prepared and signed by the Chainnan encouraging FHFC to maintain the affordability of rental developments following foreclosure sales initiated by FHFC. A copy of said letter is attached to this item and, if approved, may be executed and sent directly to Stephen P. Auger, Executive Director of FHFC. Additionally, the Board of County Commissioners requested infonnation on any options that may be available to the County to maintain the affordability of rental developments that may be subject to future foreclosure proceedings. In almost all cases, the assistance provided, if any, by the County to developers of affordable rental apartment developments would be in a subordinate position. As such, the first lien holder would be the controlling party and the County would have no recourse to ensure the affordability remained after the foreclosure was complete. ' Presently, the County has three primary options to attempt to maintain the affordability of rental apartment developments subject to foreclosure. They are as follows: 1. Continue to encourage foreclosing lenders to make the continued affordability a requirement of resale. 2. Partner with a non-profit provider of affordable housing to leverage eligible grant funding, if available, to assist the non-profit in purchasing the development at foreclosure auction. 3. Collier County may seek to purchase the development at foreclosure auction. If directed by the Board of County Commissioners, staff will fuliher investigate possible resources, options and strategies that may assist in maintaining affordability. Agenda Item No. 16D9 June 8, 2010 Page 2 of 10 FISCAL IMPACT: There is no fiscal impact associated with this item. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this item. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attomey's Office. It is legally sufficient for Board action. - CMG STAFF RECOMMENDATION: To approve and authorize the Chairman to sign a letter encouraging Florida Housing Finance Corporation to maintain the affordability of rental developments following foreclosure sales initiated by the Corporation and to accept a report of options available to Collier County to maintain the affordability of rental apartment developments that may be the subject of future foreclosure proceedings. PREPARED BY: Frank Ramsey, Housing Manager, Housing and Human Services Agenda Item No. 1609 June 8, 2010 Page 3 of 10 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 1609 Recommendation to approve and authorize the Chairman to sign a letter encouraging Florida Housing Finance Corporation to maintain the affordability of rental apartment developments following foreclosure sales initiated by the Corporation and to accept a report of options available to Collier County to maintain the affordability of rental apartment developments that may be the subject of future foreclosure proceedings. 6/8/20109:00:00 AM Meeting Date: Prepared By Frank Ramsey Manager - Housing Development Date Public Services Division Human Services S/28/2010 8:42:44 AM Approved By Marcy Krumbine Director - Housing & Human Services Date Public Services Division Human Services S/28/2010 8:51 AM Approved By Kathy Carpenter Executive Secretary Date Public Services Public Services Admin. S/Z8/Z010 8:S7 AM Approved By Marla Ramsey Administrator - Pubiic Services Date Public Services Division Public Services Division S/28/2010 2:S5 PM Approved By Colleen Greene Assistant County Attorney Date County Attorney County Attorney 6/1/20102:02 PM Approved By OMB Coordinator Date County Manager's Office Office of Management & Budget 6/1/2010 2:09 PM Approved By Sherry Pryor Management! Budget Analyst, Senior Date Office of Management & Budget Office of Management & Budget 6/1/20103:47 PM Approved By Michael Sheffield Assistant to the County Manager Date County Managers Office 6/1f2010 4:00 PM Agenda Item No. 16D9 June 8, 2010 Page 4 of 10 June 8, 2010 Mr. Stephen P. Auger Executive Director Florida Housing Finance Corporation 227 N. Bronough Street Suite 5000 Tallahassee, Florida 32301 RE: Affordable Rental Apartment Foreclosures Dear Mr. Auger- I write to you today in my role as Chairman of the Collier County Board of County Commissioners. The members of this Commissioner were very concerned to learn that two affordable rental apartment developments located in Collier County are either pending foreclosure or have been foreclosed upon by Florida Housing Finance Corporation. Specifically, the two projects are Heritage Apartments and Turtle Creek Apartments. These two properties, when taken together, represent a sizable portion of the available affordable rental apartments for our low income residents; these two properties alone provide 588 units of affordable rental apartments. The downturn in the local real estate market, elevated unemployment and the high rate of foreclosures, make the provision of affordable rental apartments imperative at this time and in the future. It is the collective opinion of our Commission that Florida Housing Finance Corporation should take all necessary steps to ensure these units remain affordable once the foreclosure sale has been completed. Thank you for the opportunity to present our comments. Very truly yours- Fred W. Coyle Chairman Collier County Board of County Commissioners - Turtle Creek Apartments Naples, Florida Number of Units: Year Built: Management Company: Average Occnpancy: Agenda Item No. 16D9 June 8, 2010 Page 5 of 10 . Location Map Additional Pictures . Primary Contact Information: Jonathan Richards I Senior Associate' Investment Properties I Multi-Housing Group CB Richard Ellis I Capital Markets 1100 Fifth Avenue South, Suite 100 I Naples, FL 34102 T 239.659.1447 x181 F 239.659.4028 ionathan.richards@cbre.com Secondary Contact Information: Tamara Alford, Asset Manager Florida Housing Finance Corporation (850) 488-4197 (phone) T amara.Alford(cV,fl oridahousin g. org 268 1997 CJ Communities, Inc. 71 % (Sept. 2008- Feb. 2009) Unit Mix & Rental Rates Unit Type Number of Square Feet Asking Rent Rent/Sq. Ft. Units (Approximate) (Approximate) 1 BR/ 1 BA 20 689 $726 $1.05 2 BR/ 2 BA 228 920 $855 $0.93 3 BR/ 2 BA 20 1,103 $971 $0.88 Description Turtle Creek Apartments is a 268 unit apartment complex located northeast ofTamiami Trail (U.S. Highway 41) in Naples, FL. This complex sits on 36.27 +/- acres and consists of 12 two and three story garden style buildings and one clubhouse. Construction of Turtle Creek Apartments was completed in 1997, overall the property is in average to good condition. In addition, Turtle Creek offers a variety of amenities to its residents. P k Amemtv ac a2e Common Areas In Unit . Clubhouse . Mini Blinds . Leasing Office . Washer/Dryer Hook ups . Resident Programs . Cable TV Available . Community Pool . Oven/Range . Fitness Center . Disposal ,. Courtesy Officer Refrigerator with Ice Maker . . . Basketball Court . Vinyl and Carpet Flooring . Covered Parking . Ceiling Fans in Living Rooms . Tot Lot Heritage Apartments Naples, Florida Number of Units: Year Built: Management Company: Average Occupancy: Agenda Item No. 16D9 June 8, 2010 Page 6 of 10 . Location Map Additional Pictures . Primary Contact Information: H. 1. Royall (Owner Contact) Worthwhile Development III, Ltd. (407) 341-3454 (phone) (407) 774-0303 (secondary phone) iroyall2(aJ,earthlink.net Secondary Contact Information: Brian Williams, Senior Asset Mgr. Florida Housing Finance Corp. (850) 488-4197 (phone) Brian. Williams@floridahousing.org 320 2002 Services Taylor Made 86% (September 2009 - February 2010) Unit Mix & Rental Rates U nit Type Number of Square Feet Asking Rent Rent/Sq. Ft, Units (Approximate) (Approximate) 1 BR! 1 BA 72 754; 802 $500 $0.66; $0.62 2 BR! 2 BA 176 999; 1047 $600 $0.60; $0.57 3 BR! 2 BA 72 1167; 1184 $805 $0.69; $0.68 Description Heritage Apartments is a 320 unit apartment complex located in Naples, Florida. This complex consists of garden style residential buildings and one clubhouse. Construction of Heritage Apartments was completed in 2002. In addition, Heritage Apartments currently offers a variety of amenities to its residents. A 'ty P ka mem ac 1ge Common Areas In Unit . Clubhouse . Mini Blinds . Leasing Office . W asher/Dryer Hook ups . . Resident Programs . Cable TV Available . Community Pool . Oven/Range . Fitness Center . Dishwasher . Courtesy Officer . Refrigerator . Tot Lot . Vinyl and Carpet Flooring . Car Care Center . Sand Volleyball Court - Flort~ousing "ii'1<l'''Cll CQfp'ufQllt1r'! Home I AHSC I Contact Us I Website Tr.mns & Conditions IOn-line Survey I Site Map I WebBoard HOME> PRESERVATION> Preservation Opportunities !:t. ABOUT US \~ BUSINESS & LEGAL il; CALENDARS & NOTICES ,;t DEVELOPERS ii: DISASTER RELIEF li EMPLOYMENT Ii; FOR INVESTORS GREEN BUILDING '1] HOMEBUYERS & RENTERS .~. HOUSING PARTNERS of HOUSING RESOURCES +: NEWSROOM & LIBRARY ~,' PRESERVATION t Preservation Initiatives Preservation Opportunities ",", PROPERTY OWNERS & MANAGERS JESTlONS & ANSWERS SPECIAL NEEDS HOUSING UNIVERSAL CYCLE Preservation Opportunities Properties Pending Foreclosure: Heritage Apartments (Collier) Naples, Florida . Click here for a datasheet on this property Nelson Park (Lake) Clermont, Florida . Click here for a datasheet on this property Sarah's Place (Lake) Clermont, Florida . Click here for a datasheet on this property Single Family Residence (Miami-Dade) Miami, Florida . . Click here for a datasheet on this property Foreclosed Properties: 1_...."-..._.11_~_~_~ .ct_-=...J~1-_n....:__ .....~..._/C'lL....._...J Al......_.-/T:'TTT':'i'"""1 r:'/""'l"A.K/A_..._TI....___ n_....~......................L:.-_I\..._..._.............,.L...__;L.:....... ........._n c ,,...,,..., /'-"'''1 ^ South Springs (Gadsden) Quincy, Florida . 9 June 8, 20 0 Page 8 of 0 . Click here for a datasheet on this property The Landings at Boot Ranch West Apartments (Pinellas) Palm Harbor, Florida . Click here for a datasheet on this property Turtle Creek Apartments (Collier) Naples, Florida . Click here for a datasheet on this property fboid,) H()ll~r"9 r,rtOf1l';'!i' 227 "",j(;fjh E.H~'. Sviti 5000 J"lkJilos3ee, r1o(j(k. 3~':5())' j 32Q 85(}48B4197 '" SiJNCOM 278-4197 -, l_.LL~_. 11........__...... .!'t ___~..:J ....1_ ......... .....:.._ __ ....__/0"'_.._.J A 1......_ .../T:TYT:n T":'r"'l\. If I A .-._ '0.... _.... '0_........... ___ ......4-; ........- r-\......._ ..........+...._.:...:........ .... ......---.. I: '''''I "7 /,..., {\ 1 r\ Florid'fHousing F.ncncll otpqtt.tlipl'l ..~. rnake housing affordable'" Home I AHSC I Contact Us I Website Terms & Conditions IOn-line Survey I Site Map I WebBoard HOME> PRESERVATION> Preservation Opportunities .~ ABOUT US ijir BUSINESS & LEGAL ,li: CALENDARS & NOTICES ,;tit DEVELOPERS Lt:' DISASTER RELIEF l:f EMPLOYMENT It, FOR INVESTORS GREEN BUILDING ':t' HOMEBUYERS & RENTERS if HOUSING PARTNERS i HOUSING RESOURCES :.... NEWSROOM & LIBRARY :~ PRESERVATION :t Preservation Initiatives Preservation Opportunities ;;: PROPERTY OWNERS & MANAGERS JESTIONS & ANSWERS SPECIAL NEEDS HOUSING UNIVERSAL CYCLE Preservation Opportunities DISCLAIMER Your use of the information contained herein is governed by the Florida Housing Finance Corporation Website Terms and Conditions, which is incorporated herein by this reference. Due to the possibility of human and mechanical error, as well as other factors, the following information and links to other websites are provided "as is" without warranty of any kind and, in particular, no representation or warranty, expressed or implied, is made nor should any be inferred as to the accuracy, timeliness or completeness of any such information. Florida Housing Finance Corporation shall have no liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any error or other circumstances involved in procuring, collecting, compiling, interpreting, analyzing, editing, transcribing, transmitting, communicating or delivering any such information or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if Florida Housing Finance Corporation is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. This information relates to foreclosed properties owned by Florida Housing Finance Corporation or a subsidiary entity, as well as properties in the process of foreclosure but not yet owned by Florida Housing Finance Corporation or subsidiary entity. Each viewer of the aforementioned information acknowledges the following (i) Some of the information displayed on this site relates to real estate that is available for sale. (ii) Such information is displayed for your informational purposes only and is not a solicitation by Florida Housing Finance Cor~oration to engage in any real estate brokerage transaction or any other activity that requires a real estate license. (iii) Florida Housing Finance Corporation does not engage in the brokerage of real estate properties (except its own foreclosure properties) and is neither a real estate broker nor an agent for a real estate broker. (iv) Independent real estate professionals, not Florida Housing Finance Corporation, offer all of the property listings accessible via links from this site. 1-';"';"4_..11~._~~ .C1.....4,.;...3.....1-......__...:~_~ ....._~/C1L....._...1 A l......__/DTTT:'n nnl\..If/A~___n-._..... n..___......___......L;......_r"'\..___.......-...~~___:.L:......_ ..............__. : ,"",., 1"'\1\1 () Agenda Item No. 16D June 8, 201 Page10of1 II Agree I Fl()I"lda H(Mi~g fltlOoce COfporo1iOO 227 Notlh B((jl'<olJgh Slr~r. SINe 5000 ioUahoss.ee, flo(ida 32301-1329 850.48641 97 . SUN C:O,'oI1 :1 7!M 197 - -" 1-L+._all"'.................. .c1..........:..1....1-.....~_...;..__ .....__/0+....__...:J Al.............../l(TTr0 ....-:'r"I1\./f/A.......__n..._... n.._................_.......~.:.....--r'\...._..._....--L......-.-.:...:...... ....,......_..... ~ ,,,,.., ''''{\1 {\