Agenda 06/14/2022 Item #16K4 (Resolution - Housing Authority Revenue Bonds)06/14/2022
EXECUTIVE SUMMARY
Request by the Housing Finance Authority of Collier County for approval of a resolution
approving a plan of financing involving the issuance by the Authority of single -family mortgage
revenue bonds in an amount not to exceed $50 million or, in the alternative, to use volume cap
allocation for mortgage credit certificate programs or for multifamily housing for persons of low or
moderate income.
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OBJECTIVE: To accomplish the necessary approval to authorize a proposed revenue bond issue by the
Housing Finance Authority of Collier County (the “Authority”) to be used for either single family or
multifamily affordable housing programs.
CONSIDERATIONS: Federal law limits the amount of tax-exempt private activity bonds that can be
issued in each state each year (referred to as the "volume cap"). In order for a housing authority such as
the Housing Finance Authority of Collier County to issue tax-exempt bonds for affordable housing, it
must receive an allocation of the state volume cap from the Florida Division of Bond Finance. In the past
two years, changing economic conditions have created a situation where the state-wide allocation requests
far exceed volume cap available, and receiving an allocation has become almost a lottery. For example,
last year the Authority approved a two-phase acquisition and rehabilitation of an existing 392-unit
apartment complex called Brittany Bay. The BCC approved these two bond issues on September 14,
2021. The Authority applied for allocation for both issues, but only received allocation for Brittany Bay
Phase II. (Fortunately, the developer was able to obtain an allocation for Brittany Bay Phase I from the
Florida Housing Finance Corporation, so the entire project will be done.)
To partially offset these risks, some authorities have gone to a system of approving a single-family
mortgage revenue bond issue under a plan of finance which also allows the authority to use volume cap
allocation for either single family or multifamily financing, rather than requesting allocation for a specific
project, and has been the traditional method. Under this strategy, the Authority can apply for an
allocation $50 million, which can be used either for single family mortgage revenue bonds or a sharing of
allocation with another authority that would issue such bonds for several counties (more likely). Other
options would be the sharing of allocation in a multicounty mortgage credit certificate program, or to use
the allocation for a multifamily project. The $50 million authorization is necessary to allow the Authority
to carry forward any volume cap allocation received for up to three years. The Authority's bond counsel
has reviewed and advised this proposal.
To implement this strategy, the Authority held a publicly advertised hearing on May 5, 2022, at which
members of the public could comment on the proposal. No members of the public attended the hearing
either in person or remotely, and there were no public comments either before or at the hearing. At the
conclusion of the hearing the Authority adopted Resolution 2022-03 (the "Authority Resolution")
approving the plan of finance and directing appropriate officers of the Authority to seek approval of the
issuance of bonds pursuant to such plan from the Board of County Commissioners, as is required by the
Internal Revenue Code. A copy of the Authority Resolution is attached as Exhibit A to the County
Resolution, as described below.
As stated above, the Code requires that bonds of this type be approved by the "local elected
representative", which, in the case of Collier County, is the Board of County Commissioners. This
approval is signified by the adoption of a resolution (the "County Resolution") approving the issuance of
bonds by the Authority.
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By statute, any bonds issued by the Authority can only be revenue bonds, payable only from revenues
associated with the project and are not obligations of the County, the state, or any other political
subdivision. There is no pledge of any taxes, nor a pledge of any other revenues except the revenues of
the project for which the bonds are issued. Neither the County, the Board, the Authority, nor any officer
of the County is liable for their payment. Further, the County Resolution provides that this approval by
the Board does not abrogate any County regulations, including land use regulations.
The Board’s role in approval of financing authority bond issues
Unlike County bonds, which are issued for public projects, the County-created financing authorities
(Housing Finance, Industrial Development, Health Facilities, and Educational Facilities Authorities) issue
private activity bonds, which are bonds issued on behalf of a private user for a legislatively declared
public purpose such as healthcare facilities, private educational facilities, qualifying manufacturing
facilities, low/moderate income housing facilities, pollution control facilities, etc.
The Internal Revenue Code ("Code") requires two types of approval for the issuance of private activity
bonds: Issuer Approval and Host Approval. Issuer Approval is the approval of the issuer of the bonds
and is initially evidenced by the adoption of an Authority Resolution such as the resolution attached to the
County Resolution, and ultimately by the execution and delivery of the bonds themselves. The Board
grants Host Approval when it adopts a resolution approving the issuance of the bonds by the Issuer
(called the "County Resolution" in this Executive Summary). Host Approval is the approval of the
governmental unit with geographic jurisdiction over the location of the project.
The primary requirement of Host Approval is that the bonds have been considered at a public hearing at
which members of the public have had an opportunity to express their views on the project and the
issuance of the bonds. The Code contains very specific requirements for the public notice of the hearing,
and a copy of the public notice, which has been reviewed by Authority Bond Counsel and determined to
be Code-compliant is attached to the Authority Resolution.
The Code does not require that the Board itself conduct the public hearing, only that Host Approval may
not be given until the public hearing has been conducted. In practice, both in Collier County and around
the state, the public hearing itself is conducted by the local financing authority and Host Approval is
given after the Board receives the report and recommendations of the financing authority in the form of
the Authority Resolution. Here, the public hearing was held as described above, and no members of the
pubic expressed any views in opposition to the project or the bonds.
Effect of Board Approval
Board Approval of an authority bond issue does not cause the bond to become a county bond or an
obligation of the County. By statute, bonds of this type are payable only from revenues related to the
project, and no public monies of any kind are pledged. Bonds of this type are treated as Component Unit
Debt on the County's annual audit. Board approval is necessary for the Authority to apply for volume cap
allocation.
FISCAL IMPACT: This program does not require any contribution from the Board of County
Commissioners or any other County agency. As stated above, the bonds are not liabilities of the County,
and the County is not liable for payment in any way. The Authority is a self -funding agency, and no
County monies are contributed to its operation.
GROWTH MANAGEMENT IMPACT: The adoption of the attached resolution will have no adverse
growth management consequences. The Authority requires that any specific project be consistent with
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the LDC as a prerequisite to consideration of an application for financing.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for Board approval. -JAK
RECOMMENDATION: That the Board of County Commissioners adopt the attached Resolution.
Prepared by:
Donald A. Pickworth, Counsel
Collier County Housing Finance Authority
ATTACHMENT(S)
1. Resolution - Housing Finance Authority bond approval - JAK (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.4
Doc ID: 22385
Item Summary: Request by the Housing Finance Authority of Collier County for approval of a
resolution approving a plan of financing involving the issuance by the Authority of single-family
mortgage revenue bonds in an amount not to exceed $50 million or, in the alternative, to use volume cap
allocation for mortgage credit certificate programs or for multifamily housing for persons of low or
moderate income.
Meeting Date: 06/14/2022
Prepared by:
Title: Legal Assistant – County Attorney's Office
Name: Wanda Rodriguez
05/26/2022 2:26 PM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
05/26/2022 2:26 PM
Approved By:
Review:
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/26/2022 2:42 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/27/2022 10:05 AM
Office of Management and Budget Susan Usher Additional Reviewer Completed 05/31/2022 1:31 PM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 06/08/2022 2:49 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 06/14/2022 9:00 AM
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RESOLUTION NO. 2022·03 A RESOLUTION OF THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA APPROVING A PLAN OF FINANCE INVOLVING THE ISSUANCE BY THE AUTHORITY OF ITS SINGLEFAMILY MORTGAGE REVENUE BONDS IN AN AGGREGATE FACE AMOUNT OF NOT TO EXCEED $50,000,000 IN ONE OR MORE SERIES; APPROVING USE OF ST ATE-AWARDED PRIVATE ACTIVITY BOND ALLOCATION ("ALLOCATION") FOR MORTGAGE CREDIT CERTIFICATE PROGRAMS OR MULTIFAMILY CARRY FORWARD; AUTHORIZING THE PROPER OFFICERS OF THE AUTHORITY TO DO ALL THINGS NECESSARY OR ADVISABLE IN CONNECTION WITH THE PLAN OF FINANCE; AND PROVIDING AN EFFECTIVE DATE FOR THIS RESOLUTION. WHEREAS, the Housing Finance Authority of Collier County, Florida (the "Authority") intends to issue its single family mortgage revenue bonds (the "Single Family Bonds"), in one or more series, in an aggregate principal amount of not to exceed $50,000,000, or to participate in one or more issues of single family mortgage revenue bonds issued by other housing finance authorities pursuant to interlocal agreements between the Authority and such other housing finance authorities to (i) make funds available to purchase federally insured or guaranteed mortgage loans originated by participating local lending institutions to finance or refinance the purchase of new or existing owner-occupied single-family residences (a) situated within Collier County, Florida (the "County") and/or other Florida Counties as authorized by Chapter 159, Part IV, Florida Statutes, as amended, and (b) owned by persons or families oflow, moderate or middle income, (ii) purchase securities from a master servicer evidencing interests in or backed by a pool of such mortgage loans, including, without limitation, securities issued by the federal government or agencies thereof, (iii) be used in conjunction with a mortgage credit certificate program, and/or (iv) be applied toward multifamily housing; and WHEREAS, the State of Florida's (the "State") allocation procedures require that (i) a public hearing be held under the Tax Equity and Fiscal Responsibility Act ("TEFRA") with respect to the Single Family Bonds, and (ii) the issuance of the Single Family Bonds be approved by the Board of County Commissioners of Collier County, Florida, for purposes of Section 14 7(f) of the Internal Revenue Code of 1986, as amended (the "Code") prior to requesting private activity bond allocation ("Allocation") for said Single Family Bonds; and WHEREAS, the Authority desires to in the alternative provide mortgage credit certificates for the benefit of the citizens of the County and to convert single family mortgage revenue bond Allocation awarded by the State for Allocation applicable to mortgage credit certificate authority; and WHEREAS, the Authority may elect to apply or carry forward any unused single family Allocation awarded by the State for use with either single family revenue bonds or multifamily revenue bonds; and AUTHORITY RESOLUTION
EXHIBIT A TO COUNTY RESOLUTION
Exhibit A
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