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AHAC Agenda 02/03/2020Collier County Affordable Housing Advisory Committee (AHAC) AGENDA FebruaryJ 2020 8:30A.M. 3303 Tamiami Trail East (Main Government Complex) sth Floor Meeting Room - Building "F" AHAC COMMITTEE MEMBERS Steve HrubV, AHAC Chairman John Cowan, AHAC Member Marv Waller, AHAC Member loseph Schmitt, AHAC Member Denise Murphy, AHAC Member Gary Hains, AHAC Member Litha Berger, AHAC Member Christina Apostolidis, AHAC Member Sheryl Soukup, AHAC Member Justin Emens, AHAC Member Jennifer Mitchell, AHAC Member COttIER COUNW STAFF Kristi Sonntag, Director, Community and Human Services Cormac Giblin, Housing, Grant Development, and Operations Manager Susan Golden, Sr. Housing and Grants Coordinator, CHS Hilary Halford, Sr. Housing and Grants Coordinator, CHS Barbetta Hutchinson, Operations coordinator, CHs NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. ALL REGISTEREO SPEAKERS WILL RECEIVE UP TO THREE (3) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. DURING COMMITTEE DISCUSSION, COMMITTEE MEMBERS MAY ASK DIRECT QUESTIONS TO INDIVIDUALS. PLEASE WAIT TO BE RECOGNIZED BY THE CHAIRMAN AND STATE YOUR NAME AND AFFILIATION FOR THE RECORD BEFORE COMMENTING, IF YOU ARE A PERsON WITH A DISABILITY WHO NEEDS ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS MEETING, YOU ARE ENTITLED, AT NO COST TO YOU, THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT. ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNry COMMISSIONER'S OFFICE. 1.A.2 Packet Pg. 10 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) 1, CATI TO ORDER & PTEDGE OF ATTEGIANCE 2. ROLT CATI OF COMMITTEE MEMBERS AND STAFF 3. APROVAL OF AGENDA AND MINUTES a. Approval of today's agenda b. Approval of Jan 6, 2020 AHAC Regular meeting min utes 4. INFORMATIONAT ITEMS a. Growth and New Sports Park Update- Deputy County Manager Nick Casalanguida b. Uodate on Recent BCC Actions 1. RLSA Workshop 2. Rivergrass Village 3. Comprehensive Growth Management plan Amendments/ public Benefit c. Grant Application Review Timeline d. Quarterly Apartment Availability List Update 5, PUBLIC COMMENT a. Persons wishing to speak must register prior to speaking. All registered speakers will receive up to three (3) minutes unless the time is adjusted by the Chairman. 6. DISCUSSION ITEMS AND PRESENTATION a. Update on AHAC membership size and make-up request b. Local Housing Trust Fund Funding Sources Subcommittee Discussion 1. Review of organizational meeting 2. Collier County Housing Finance Agency Role 3. Upcoming Schedule 7. STAFF AND COMMITTEE GENERAT COMMUNICATIONS a. Upcoming Meetings or Actions 1. FY2O2O-21Grcnt Application Cycle Closes February 10,2020 12:00pM 8. ADJOURN NEXT AHAC MEETING DATE: March 3. 2O20, 8:il0A.M. 1.A.2 Packet Pg. 11 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) MINUTES OF THE COLLIER COUNTY AFFORDABTE HOUSING ADVISORY COMMITTEE Januarv 6, 2020 8:30 A.M. Naples, Florida LET lT BE REMEMBERED that the Collier County Affordable Housing Advisory Committee met on this date at 8:30 A.M. in a WOR(/NG 5855/ON in the Health Building 2"d Floor Conference Room in Naples, Florida, with the following Members present: Present: Mary Waller John Cowan Litha Berger Justin Emens Steve H ruby Sheryl Soukup Jennifer Mitchell Unexcused: Excused: Joseph schm itt Denise Murphy ch ristine Apostolidis Gary Hains ALSO PRESENT: Cormac Giblin, Manager, Housing & Grant Development - CHS Kristi Sonntag, Director CHS Hilary Halford, Sr. Grants Coordinator - cHs Barbetta Hutchinson, Operations Coordinator - CHS Lisa Carr, Sr. Grants Coordinator - CHS OTHERS PRESENT: Michael Puchalla, HELP; lohn Harney, Habitat; Karina Lin, Clerk's Office; Mike Prioletti. CC Housing Finance 1. CAttTo ORDER Steve Hruby called the meeting to order at 8:30 a.m. Steve led in in the Pledge of Allegiance, and read the procedures to be followed. 2. Rot.I" CAI"I-CoMMITTEE MEMBERS AND STAFF There were 7 active members present, therefore a quorum was established. 1.A.2 Packet Pg. 12 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) 3. APPRoVAI. oF AGENoA AND MINUTE A motion was made to approve the agenda by Mary Waller and seconded by Sheryl Soukup. The motion passed bV a vote of 7-0. A motion was made by Mary Waller to approve the minutes from the meeting of December 6, 2019 and seconded by Litha Berger. The motion was passed with a vote of 7-0. 4. INFORMATIONAL ITIMS a. Update-Cormac u pdated the grou p on recent BCC actions. Rivergrass Village was continued to January 28,2020. The increase to the impact fees was approved and the direction was given to enhance affordability. The residential impact fees were raised 30-40% in some areas. There is a workshop that will be held on )anuary 2L,2020looking at the rural land stewa rdship area. Some of the major issues are traffic, water & sewer. Steve asked the members ofthe AHAC to attend and make statements regarding our need for affordable housing. b. Membership size & make-up - Cormac told the group that he was working with the County Attorney's Office to see how we can restructure the membership to include the 5 specific seats and one by each commission district. He will update the group again next month. 5. PuBLrc CoMMENT John Harney addressed the group and said that Orange County, FL's plans and they are looking at more transportation options to address housing affordability, i.e.: CAT type buses, park & rides, etc. Steve Hruby said that the original ULI plan had the expansion of the CAT service and the transportation connection. The key difference between Orange County and Collier is that they have a much more advanced transDortation network. 5. DTSCUSSTON TTEMS a. Cormac reviewed t he schedu le for the gra nts a pplication cycle for the next 5 m onths. The plan concludes with the HUD Action Plan going to the BCC on June 23'd. b. There was discussion regarding the actions of the Funding Sources Subcommittee. The AHAC appointed Mary Waller, Chair of the Subcommittee along with members Sheryl Soukup, Litha Berger and Mike Prioletti. Mike will provide a liaison between the AHAC and CCFHA. The group vote was 7-0 in favor of the appointments. Mary said that they were going to try to encourage the Commissioners to set aside money for the trust fund. Mary will give a more in-depth report at the meeting in Ma rch. Cormac said he will invite Don Pickworth to a future meeting. He also said that the County has issued an invitation to negotiate to build affordable housing of the golf course property that will include 200- 400 rental units. There has been a S10M donation from a Drivate foundation as well. 1.A.2 Packet Pg. 13 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) 7. STAFF AND GENERAT COMMUNICATIONS a. Upcoming meetings - BCC RLSA Workshop will be held on January 2t, 2O2O at 9:00 a.m- and Rivergrass Village willgo to the BCC on January 28, 2020. b. Nick Casalanguida will be at our next meeting to discuss Growth Management. 8. ADJOURN a. There being no further business for the good of the County, John Cowan motioned to adjourn the meeting; sheryl Soukup seconded, and the group agreed with a vote of 7-0. The meeting adjourned at 9:19 a.m. NEXT MEETING: THE NEXT MEETING WILI BE HELD FEBRUARY 3, 2O2O AT 8:30 A.M. Location: 5th Floor Training Room, Administration (Building F) located at 3299 Tamiami Trail East. CotuER CouNTy AFFoRDABTE HoustNG ADVtsoRy CoMMITTEE Stephen Hruby, Chairman The foregoing Minutes were approved by Committee Chair on submitted' l_l OR "as omended" [_]. 2020, "os 1.A.2 Packet Pg. 14 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) tY 2O2O - 2O2! HUD, SHIP & Housing Trust Fund Application and Action Plan Timeline ,anuary 3, 2020 Release Application Online lanuary 8, 2020 Public mtg & TA 3:30-4:30 Golden Gate Comm Center - Room C lanuarv 22 - 24,2O2O 1:1. Required T/A mtss (3 davs) Februarv 10, 2020 Application Deadline @ 12lnoon Februarv 21, 2020 Applications provided to Review & Ranking Committee (Neighborlv) March 5, 2020 Review Ranking Committee Interviews & Scoring of Applications March 77 ,2O2O Final projects/activities list approved March 24-25, 2020 Conditional Approval letters sent to applicants/subrecipients March 3o-April x5,2020 Grant Coordinators & subrecipients finalize scope of services, beneficiaries, etc April 20,2O2O Subrecipient Agreements finalized and submitted CAO May 19, 2020 Upload Subrecipient Agreements in Minute Traq for 6/25 BCC meeting lune 23. 2020 BCC Approval of FY 2020-21 Action Plan & Proiects/Activities o.aft 7I/26/2019 1.A.2 Packet Pg. 15 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) collier Countv Communitv and Human services Division Quarterlv Rental Apartment Inventory Survev Januarv 2020 84 ix3) r61rsr! lrr0lr5J 1o00 r[e.o r' t N;p-1Hsoi Parrl 446 1sIr675 4150 s413r5 e361 irollunmeord D', NipE tl3a1ot c:rgl6s7 1204344 250 t)13 33 44 D,ni $.,r€' vibg. {f.tr ja.mso*erl 1335^s[ h tnmo]cl.e, ft:r.1L1l {34417e6 r474 Are) 657i000 $o2.un.rAve rmmok.ee Ft r114, ss0 03lh3vei atr, 0'nd]1:lee, tr 34r42 12 10 1.A.2 Packet Pg. 16 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) RESoLrrTroN NO. l9_-2! 7 A RESOLUTION OF THf, BOARD OF COUNTY COMMISSIONEIIS OF COLLIER COUNTY, T'LORIDA. IMPLDMDNTING THE LOCAL TIOUSING TRUST FUND ANDAUTHORIZING THE COUNTY MANAGER TO SIGN COMMITMENTS FORTHtr USE OFTHE HOUSING TRUST FUNDS AND STATE AND LOCAL GRANT FUNDS FOR HOUSING DIVELOPMENTS AND DIRtrCTING THE AFFORDABLE HOUSING ADVISORY COMMITTEE TO IDtrNTIFY AND Rf,StrARCH A VARIETY OT POTDNTIAL FUNDING SOURCESFOR THE HOUSING TRUST FUND AND BRINC RECOMMENDATIONS BACK TO THE BOARD AT A LATER DATE. Rtr,CITALS WHEREAS, on April 24, 2018, the Boar-d of County Commissioners (BCC) adopted Resolution No. 2018-82 declaring a valid public pur.pose for establishing a new Local Housing Trust Fund (HTF), accepting funds for affordable housing made to the County and providing general guidelines for use of monies in the housing trust fund; and WHEREAS, Resolution No. 2018-82 directed the Affordable Housing Advisory Commiftee and staff to develop procedures and criteria for the implementalion of the HTF; and WHEREAS, the criteria for the HTF is based on the Community Housing plan and the Housing Element of the Growth Management Plan and shall be established as policy by the Board; and WHEREAS, given the long planning process involved in housing development and the need to layer multiple funding sources, a local housing trust fund is necessary to provide a local contribution; and WHEREAS, some housing developments have a tight window to make application to the State fol Low-Income Housing'fax Credits and other funds that lequest local contributions and rnay not be able to wail for an annual funding application cycle; and 1.A.2 Packet Pg. 17 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) WHEREAS, the Affordable Housing Advisory Committee has identified the need for a consistent, on-going revenue stream to ensure that the HTF is a viable revenue source for needed housing that is affordable to Collier County residents; NOW, THEREFOR.E, B[, IT RESOLVED BY THD BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY. f,'LORIDA. that: l. of this Resolution. The foregoing Recitals are adopted as true and incorporated as part 2. The County Manager is authorized to sign commitments for the use of the HTF resources, stale and local grant funds for developers applying to Florida Housing Finance corporation for Low-Income Housing Tax credit financing and other state and Federal housing projects. 3, The Affordable Housing Advisory Committee is hereby directed to identi$ and research a variety of potential funding sources for the HTF and bring recommendations back to the Board at a later date. 4. The Housing Trust Fund pmgram will begin implementation in 2020 as outlined in the BCC approved guidelines, criteria and annual work plan. THIS RESOLUTION is adopted after motion, second, and majority vote thisz3lNay Bignature only, Apploval for form and legality: oro chdftE$uJY CLERK Jenn'ifUr A. Belpedio Assistant Countv Attornev 1.A.2 Packet Pg. 18 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) MEMORANDUM To: Mike Prioletti, Housing Finance Authority of Collier County Date; January 25,2020 Re: Tax Exem pt Bonds as Funding Source for Affordable Housing The purpose of this memo is to set out. in very broad terms. how tax exempt bonds may be used as a f'unding source for affordable housing. ln panicular, this rnemo will discuss the use of these types ofbonds to finance multifamily rental housing projects. General information regarding ttr e-vempt bonds As used in this discussion, the term "tax exempt bond" rneans that the interest income received by the holder of the bond is not included as income on the bondholder's federal income tax return. Because they do not have to pay taxes on this income. bondholders are willing to accept lower illterest payments than they would be willing to accept if the income were taxable. State and local governments often flnance public projects such as roads, utility plants, schools. etc. through the issuance of tax exempt bonds. These are called government bonds. and the interest income on them is tax exempt. The second type oftax exempt bond is the tax exempt private activit)' bond. A private acrivity bond is a bond issued by or on behalf of a private errtity, for a private business purpose. Under the lnternal Revenue Code, interest incorne on these bonds is taxable as ordinary income. Hou'ever. the lnternal Revenue Code creates certain specific exceptions to this general rule by authorizing the interest income on bonds issued for ceftain purposes to be deemed tax exempt. The reason these exceptions are created is to encourage certain private activities, which are deemed to have a public benefit. Tax exempt private activity bonds can be issued for such purposes as pollution control facilities. docks and wharves, certain small manuf'acturing facilities, qualified multifamily housing facilities. and other purposes set fofth in the Internal Revenue Code. Because they are exceptions to the general rule of taxability, tax exempt private activity bonds must be issued strictly in contbrmance with the lnternal Revenue Code and the applicable treasury regulations. Relevant to our current discussion, bonds issued for multifamily housing projects must meet the following main requirenrents: l. Must be multifamily housing, i.e. not transient lodging, dormitories. rooming houses, rest homes, etc. 2. Must be available to members of the general public. Units provided only for a particular employer's employees are not considered publicly available. 3. A nTinimum of 20% of the units must be rented to, or set aside for rental to. persons whose income does not exceed 80% ofarea median income (AMl), or, at developer's option,40% ofunits may be set aside for persons whose income does not exceed 60%of AMl. NOTE,: Other programs that are part of the financing may require greater set asides, such as the low income housing tax credit (LIHTC) or county-administered density bonus agreements. 1.A.2 Packet Pg. 19 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) 4. The project must have State Volume Cap Allocation from the Florida Division of Bond Finance. There are many other requirements and tests that must be met to ensure the bonds will be tax exempt, and these matters are addressed during the financing process by the developer's and the bond issuing authorityrs tax counsel. Issuance of lax exempl bonds fot mulldamily housing In Florida, the power to issue tax exempt multifamily housing bonds is vested in either the Florida Housing Finance Corporation, or in local housing finance authorities created under Chapter 159 of the Florida Statutes. ln Collier County, the Board of County Commissioners created the Housing Finance Authority of Collier County in 1980 by ordinance. The Authority consists of five members who each bring to the board experience and knowledge in such areas as finance, housing administration, banking and real estate. In the 40 years of its existence. the authority has issued over $136 million in tax exempt bonds for multif'amily projects, financing the construction of3,038 units. Most of these bonds were issued between 1985 and 2005. Since then, there have been no bonds issued for the construction olnew units, for reasons that this committee is analyzing and addressing. A typical multifamily bond issue is a relatively straight-forward transaction in which the bond issuing agency, here, the Housing Finance Authority, issues and sells its bonds to an Underwriter, who then re-sells the bonds in the public capital markets. The proceeds from the sale ofthe bonds are then loaned to the developer for the construction ofthe project, and the loan is repaid from the rent revenues of the project. The disbursenrent of funds and the handling of loan repayments is handled by a corporate trustee. While the Authority is a govemmental agency. it should be emphasized that the source of funds tbr projects is the sale ofthe bonds in the capital markets, and there is no govemmental pool of money which can be drawn upon to finance a project. Each bond issue is a separate and discrete transaction. The process by which an agency such as the Authority issues bonds is as tbllows: . Filing ofapplication. Public hearing by agency on application and adoption of "official action" resolution. Consideration and approval of issuance of bonds by local elected representative (here, the Board of County Cornmissioners). Apply for and obtain State Volume Cap Allocation. Preparation of financing documents. including Loan Agreement, Trust Indenture. Tax Agreement, Disclosure Documents (Offering Statements). etc.. Consideration of financing documents by agency and adoption of bond authorizing resolution and approval of bond purchase agreement with Undetwriter. Sale ofbonds by Underwriter. Closing and delivery of bonds, receipt and disbursement ofproceeds by Trustee The above steps are based on a typical public offering, and may vary slightly depending on the specifics of the transaction. The time frame is generally four to six months. 1.A.2 Packet Pg. 20 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020) Bonds where Borrower (Developer) is not-for-proJit Tax exempt financing is available to both fbr-profit and not-for-profit developers of multifamily housing. Bonds issued fbr a not-for-profit Borrower are referred to as 501c3 bonds. While the process is essentially the same, there are some special rules applicable to not-for-profit Borrowers. Among these are: . The not-for-profit Borrower does not have to comply with the lnternal Revenue Code income set asides set forth above. lnstead. the Borrower must comply with income requirement related to their own charitable status (which mav be even more stringent).. 50 | c3 bonds do not receive an allocation of State Volume Cap. This is a big advantage in situations where volume cap is scarce.. These deals typically have a for-profit manager, and there are numerous rules relating to the term ofthe contract, compensation, and control that rnay be exercised by the for-profit manaqer. 1.A.2 Packet Pg. 21 Attachment: AHAC Meeting Agenda - February 3, 2020 (11782 : Affordable Housing Advisory Committee - February 3, 2020)