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Agenda 03/10/2009 Item #16D 5 Iter!'! ~~o_ 'j 605 r/i3iCh 10,2009 1of4 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approves, and authorizes the Chairman to sign, the attached letter of support for Esperanza Place - Phase One, a forty eight (48) unit mnlti-family affordablc housing project being developed by Florida Non- Profit Services, Inc. OBJECTIVE: That the Board of County Commissioners approves, and authorizes the Chairman to, sign, the attached letter of support for Espcranza Place - Phase One, a forty eight (48) unit multi-family affordable housing project being developed by Florida Non-Profit Services, Inc. CONSIDERATIONS: In March 2008, wlder Request j~)f Proposal 2007-10, Florida Non- Profit Services, Inc. was awarded a 55,000,000 grant from Florida Housing Finance Corporation. The purpose of the grant was to construct a forty eight (48) unit multi-family affordable housing project in Immokalee. The project is to benefit faml workers eammg between 50'1<, and 60% local area median income. Recently, section 47 of special session budget bill SB-002A commanded Florida Housing Finance Corporation retum to the state treasury 5190,000,000 of "unexpended funds" from any monies appropriated to the Corporation by June 1,2009, without regard to the year in which the funding was appropriated. Florida Housing Financc Corporation must rctum funds for which it had made preliminary commitments to projects if they are to meet the mandated return of 5190,000,000. As such, Esperanza Place - Phase One is at risk of having the $5,000,000 award "de-obligated", or rescinded. Esperanza Place - Phase One is a "shovel ready" affordable housing project. All requisite Collier County and Southwest Florida Watcr Management District approvals have been obtaine(~ as well as additional funding sources to ensure the project is successful. FISCAL IMPACT: There are no general fund dollars associated with this project. GROWTH MANAGEMENT IMPACT: This project is consistent with the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office. This item is not quasi judicial, and as such ex p3l1e disclosure is not required. This item reqUires majority vote only. This item is legally sufficient for Board approval. - CMG STAFF RECOMMENDATION: That the Board of County Commissioners approves and authorizes the Chainnan to slgn the attached letter of support for Esperanza Place - Phase One, a forty eight (48) unit multi-family aff(Jrdable housing project being developed by Florida Non- Profit Services, Inc. PREPARED BY: Frank Ramsey, Housing Manager, Housing and Human Services Ao~':n(]a item r'~o. 1605 - f"iarch '10,2009 PClJe 2 of 4 March 10, 2009 VIA EMAIL AND FIRST CLASS MAIL Mr. Steve Auger Executive Director Florida Housing Finance Corporation 227 North Bronough Street; Ste. 5000 Tallahassee, FL 32301-1329 Re: Esperanza Place Immokalee, Florida RFP 2007-10 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 Commission were very disappointed to learn of the Legislature's recent decision to sweep $190,000,000 from the State Housing Trust Funds which are used to finance affordable housing. We are particularly concerned about the subject property, since it involves a 501(c)(3) organization which is preparing to develop farmworker housing in our County. It is the collective opinion of our Commission that Esperanza Place should be given the highest priority in your funding allocation for the following reasons: . Esperanza Place - Phase I is a proposed 48 unit multifamily project for families of farmworkers earning between 50% - 60% of AMI. . Esperanza Place will be wholly owned by Florida Non-Profit Services, Inc., a 501(c)(3) organization. . Florida Non-Profit Services, Inc. was the successful applicant for RFP 2007-10. A $5,000,000 award was made by the Board of Florida Housing Finance Corporation in March 2008. . As a condition of the Florida Housing Finance Corporation award, Florida Non-Profit Services, Inc. was required to make application to USDA Rural Development under their #514/#516 programs. Florida Non-Profit Services, Inc. has been successful in obtaining a $2,700,000 grant and a i:SrTi 1\;0. -l6D5 L.'i irch 10. 2009 ?age 3 of 4 $300,000, 33 year, 1% loan from USDA. This $3,000,000 in USDA financing will be lost if Florida Housing Finance Corporation does not honor its $5,000,000 commitment. . The Immokalee CRA has approved a grant of $100,000 per year for the next three (3) years for installation of infrastructure. . All requisite Collier County and SFWMD approvals have been granted. . All site, architectural, structural, electrical, plumbing and HVAC plans and specifications have been completed. . Esperanza Place is a "shovel ready" project which would generate in excess of $7,000,000 of income in 2009 for the construction workers and suppliers of Southwest Florida. . To date, Florida Non-Profit Services, Inc. has, in good faith, spent, or committed, $400,000 of borrowed funds to satisfy the funding conditions of the Florida Housing Finance Corporation and USDA awards. Unless Esperanza Place is funded by Florida Housing Finance Corporation they will go bankrupt as there is no alternative source of financing. Thank you for the opportunity to present our comments. Very truly yours, Donna Fiala Chairman Page I of I item :\)0 <__ 5 1\'Larch Hl 2C,n9 P2ge 4 Of 4 COLLIER COUNTY SOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16D5 Recommendation that the Board of County Commissioners approves. and authorizes the Chairman 10 sign. the attached letter of support for Esperanza Place Phase One, a forty eight (48) unit multi-family affordable housing project being developed by Florida Non-Profit Services. Inc. Meeting Date: 3/10/200990000 AM A pprovcd By Marcy Krumbine Director Date Public Services Housing & Human Services 314/20098:40 AM Approved B}' Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 3/4i2009 9:11 AM Approved By Colleen Greene Assistant County Attorner Date County Attorney County Attorney Office 3:41200910:50 AM Approved By Sherry Pryor Milnagement & Budget Analyst Date County Manager's Office Office (,f Management & Budget 3i4/2009 11 :53 AM Approved By James V. Mudd County Manager Date Board of County Commissioners County r-..~ai1ager's Office 3/4/2009,2:00 PM t~lp"//r.\ 6 n-pn~qTp<c1\P"nrwt\ '')''_?\!f'_,rr,hO/^ ")nl () O/^') n') nnO\ 1 {.. OIn')nrnl\.l~]:,1\.rTOIn')nAn]:,l\.ln A \ 1 1/;l/")nno