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Agenda 5/23/2023 Item #16K3 (Resolution - Plan of Financing for prgrams for mulifamily housing for low to moderate income)16. K.3 05/23/2023 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. 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: This request is a duplicate of a request submitted by the Authority in June 2022, and approved by the BCC on June 14, 2022 by Resolution No. 2022-106. 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"). 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 several 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, in 2021 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 11. (Fortunately, the developer was able to obtain an allocation for Brittany Bay Phase I from the Florida Housing Finance Corporation, so the entire project was 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, as has been the traditional method. Under this strategy, the Authority can apply for a volume cap allocation of $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. Restrictions on the use of an allocation in the year granted (e.g. 90% must be used on a single project in the year the allocation is granted) make use of the allocation in the year granted generally infeasible, but at the end of the year a three year carry forward can be obtained, which is not subject to the 90% rule (i.e. can be used for multiple smaller projects). This carry forward is only available for allocations of $50 million or more. The Authority's bond counsel has reviewed and advised this proposal. To implement this strategy, the Authority held a publicly advertised hearing on April 12, 2023, 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. 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 Packet Pg. 1177 16. K.3 05/23/2023 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 financinz 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 public 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 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. Packet Pg. 1178 16. K.3 05/23/2023 Prepared by: Donald A. Pickworth, Counsel Collier County Housing Finance Authority ATTACHMENT(S) 1. Resolution - HFA bonds(PDF) Packet Pg. 1179 16. K.3 05/23/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.3 Doc ID: 25547 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: 05/23/2023 Prepared by: Title: Legal Assistant — County Attorney's Office Name: Wanda Rodriguez 05/11/2023 4:55 PM Submitted by: Title: County Attorney — County Attorney's Office Name: Jeffrey A. Klatzkow 05/11/2023 4:55 PM Approved By: Review: Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/12/2023 8:40 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/12/2023 10:20 AM Office of Management and Budget Christopher Johnson Additional Reviewer Completed 05/13/2023 9:50 AM County Manager's Office Board of County Commissioners Geoffrey Willig Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 05/15/2023 4:11 PM 05/23/2023 9:00 AM Packet Pg. 1180 16.K.3.a RESOLUTION NO.2023 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, APPROVING A PLAN OF FINANCE INVOLVING THE ISSUANCE BY THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000 IN ONE OR MORE SERIES; APPROVING USE OF STATE AWARDED VOLUME CAP ALLOCATION FOR THE BONDS OR, FOR MORTGAGE CREDIT CERTIFICATE PROGRAMS OR MULTIFAMILY BONDS OR CARRY FORWARD; APPROVING BONDS AS REQUIRED BY SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 80-66, enacted by the Board of County Commissioners of Collier County, Florida (the "Board") on July 29, 1980 (the "Ordinance"), the Board created the Housing Finance Authority of Collier County, Florida (the "Authority"), in accordance with Part IV, Chapter 159, Florida Statutes (the "Act"), for the purpose of alleviating a shortage of housing available at prices or rentals which many persons and families can afford and a shortage of capital for investment in such housing; and WHEREAS, pursuant to the Act, the Authority is empowered to revenue bonds for single family or multifamily housing for persons of low, moderate or middle income as defined in the Act; and WHEREAS, in furtherance of its statutory purposes, the Authority desires to issue single family mortgage revenue bonds, in one or more series, in an aggregate principal amount not to exceed $50,000,000 (the "Bonds"), or, in the alternative, to use any private activity bond volume cap that may be awarded to be used in conjunction with a mortgage credit certificate program, and/or to be applied toward multifamily housing (the "Plan of Finance") within the meaning of Section 147(f)(2)(C) of the Internal Revenue Code of 1986, as amended (the "Code"), or to be carried forward as permitted by applicable law; and WHEREAS, the Bonds are to be issued to make available funds to (i) 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, and (b) owned by persons or families of low, 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) to be applied toward multifamily housing; and [23-sOC-01031 / 1791711 / 11 Packet Pg. 1181 16.K.3.a WHEREAS, the Authority held a public hearing on April 12, 2023, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "TEFRA Hearing"), after proper notice was published (the "TEFRA Notice"), for the purpose of giving all interested persons the opportunity to express their views in connection with the Plan of Financing and the issuance of the Bonds (a copy of said TEFRA Notice being attached as Exhibit A to the Authority Resolution as hereinafter defined); and WHEREAS, at the conclusion of said TEFRA Hearing, the Authority adopted Resolution No. 2023-03 (the "Authority Resolution"), a copy of which is attached hereto as Exhibit A; and WHEREAS, the Authority has requested the Board's approval of the Plan of Financing and the issuance of the Bonds by the Authority in one or more series pursuant thereto for purposes of Section 147(f) of the Code: NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: Section 1. Approval of Plan of Financing and Issuance of the Bonds for Purposes of Section 147(f) of the Code. For purposes of Section 147(f) of the Code, the Board hereby approves the Plan of Financing, the notice of public hearing, the public hearing, and the issuance by the Authority of the Bonds in an aggregate principal amount not to exceed Fifty Million and 00/100 Dollars ($50,000,000) pursuant thereto for the purposes stated herein. The Board's approval of the Plan of Financing and the issuance of the Bonds by the Authority shall not be construed to obligate Collier County, Florida, to incur any liability, pecuniary or otherwise, in connection with the issuance of the Bonds or the Plan of Financing. Provided further, however this approval shall in no way be deemed to abrogate any regulations of the County and any project contemplated by this resolution shall be subject to all such regulations, including, but not limited to, the County's Growth Management Plan, all concurrency requirements contained therein, and the Collier County Land Development Code. Section 2. Approval of Use of Single Family Bond Allocation. The Board hereby authorizes the allocation for single family revenue bonds to be used in connection with (i) mortgage credit certificate authority, and/or (ii) multifamily revenue bonds. The Authority is authorized to determine if such allocation will be (i) carried forward for use in future years, and/or (ii) converted for use with mortgage credit certificates and/or multifamily revenue bonds, as the Authority may deem most advisable. Section 3. Resolution Effective. This Resolution shall take effect immediately upon adoption. [23-SOC-01031 / 1791711/1 ] Packet Pg. 1182 16. K.3.a PASSED AND ADOPTED THIS day of May, 2023. (SEAL) ATTEST: BOARD OF COUNTY COMMISSIONERS Crystal K. Kinzel, Clerk of Courts OF COLLIER COUNTY, FLORIDA By: By: Deputy Clerk Rick LoCastro, Chairman Approved a4to [or&,anid legality: Jeffrey A.Wlktz*w, County Attorney [23 -S OC-01031 / 1791711 / 11 Packet Pg. 1183 16. K.3.a RESOLUTION NO.2023-03 A RESOLUTION OF THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA APPROVING A PLAN OF FINANCE INVOLVING THE ISSUANCE BY THE AUTHORITY OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS IN AN AGGREGATE FACE AMOUNT OF NOT TO EXCEED $50,000,000 IN ONE OR MORE SERIES; APPROVING USE OF STATE -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 of low, 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 147(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 EXHIBIT A AUTHORITY RESOLUTION Packet Pg. 1184 16. K.3.a WHEREAS, in order to satisfy certain of the requirements of Section 147(f) of the Internal Revenue Code of 1486, as amended, the Authority did on this date hold a public hearing on the proposed Plan of Finance, which date is at least 7 days following the publication of a notice of such public hearing as required by law (proof of publication of such notice is attached hereto as Exhibit A). Such public hearing, which occurred prior to the adoption of this Resolution, was conducted in a manner that provided a reasonable opportunity for persons with differing views to be heard, both orally and in writing, on the Plan of Finance; and WHEREAS, the Authority hereby desires to adopt a plan of financing within the meaning of Section 147(f)(2)(C) of the Code. NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA: Section 1. Appmval of Plan of Finance and Issuance of the Bonds. The Authority hereby authorizes the issuance of the Single Family Bonds in an aggregate face amount of not to exceed $50,000,000 for purposes stated herein. The Authority also hereby approves a plan of financing consisting of the issuance of one or more series of Single Family Bonds at one or more times and from time to time, which provides funds to originate new mortgages for first-time homebuyers within the meaning of Section 143 of the Code (the "Plan of Finance"), Neither the Authority's approval of the Plan of Finance, or the issuance of the Single Family Bonds by the Authority, shall (i) obligate or be construed to obligate the Authority to issue all or any portion of such Single Family Bonds, or (ii) cause the Authority or the County to incur any liability, pecuniary or otherwise, in connection with the Plan of Finance or the issuance of the Single Family Bonds and/or the decision not to issue all or any portion of the Single Family Bonds. Section 2. Approval gf Use of Single Family Bond Allocation. The Authority hereby authorizes the Allocation for single family revenue bonds (i) to be converted for mortgage credit certificate authority, and/or (ii) to be used as Allocation for multifamily revenue bonds. The Chairman of the Authority is hereby authorized to determine (i) if such Allocation should be carried forward, and/or (ii) if such Allocation should be converted for use with mortgage credit certificates and/or used for multifamily revenue bonds. Section 3. Delegation of AuthorijX to hold a Public Hearing. If, after consultation with the Authority's Bond Counsel it is deemed necessary to hold further public hearings with respect to the issuance of single family or multifamily bonds, the attorney for the Authority or his designee is hereby authorized to publish a notice and to conduct a public hearing in accordance with Section 147(f) of the Code, and shall report the results of such hearing to the Authority. Section 4. Further Actions and Ratification of Prior Actions. The officers, agents and employees of the Authority are hereby authorized and directed to do all acts and things required of them by this Resolution and to execute and deliver any and all instruments, affidavits, certificates, and notices necessary or advisable to effectuate the issuance of the Single Family Bonds and the implementation of the PIan of Finance. All actions heretofore undertaken by the 2 Packet Pg. 1185 16. K.3.a attorney for the Authority, officers, agents and employees of the Authority with respect to the Single Family Bonds and/or the Plan of Finance are hereby authorized and ratified. Section S. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED, this 12' day of April 2023. 3 HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA By. C air 67" Packet Pg. 1186 16. K.3.a EXHIBIT A -PROOF OF PUBLICATION OF NOTICE OF HEARING Q Packet Pg. 1187 Published Daily Naples, FL 34110 PICKWORTH DONALD P.A . 725 HiGH PINES DR NAPLES, FL 34103 Affidavit of Publication STATE OF WISCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida; that the attached copy of the advertising was published In said newspaper on dates listed. Afflant further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Florida, each day and has been entered as second class mail matter at the post office in Naples, in said Collier County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in said newspaper issue(s) dated or by publication on the newspaper's website, if authorized, on Issue(s) dated: 04104/2023 Subscribed and swom to before on April 4, 2023: 4 w N to of WI, County of Brown t5"'1,-,S'- My commission expires Publication Cost: $420.00 Ad No: 0005652785 Customer No: 1307145 PO #: # of Affidavits 1 This Is not an invoice NOTICE OF PUBLIC HEARING HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA NOTICE IS HEREBY GIVEN of a public hearing by the Housing Fi• nance Authority of Collier County, Florida (the 'Authority' to be held on April 12, 2023, at 8:3 a.m. (local time), in the in the County Manager's Conference Room, second floor, Building F, Suite 202, Collier County Government Center, 3299 East Tamlanhi Trail, Naples, Florida 34112, for the purpose of receiv- ing comments and hearing discussion concerning a plan of fi- nancingsubject to the internal Revenue Code of 1986, as amended (the 'Code'), pursuant to which the Authority will is- sue Its Single Family Mortgage Revenue Bonds, in one or more series, in an aggregate principal amount of not to exceed $50,000,000 pursuant to the plan of finance (the 'Bands'), the proceeds oFwhich will be used to make available funds to pur- chase federally insured or guaranteed mortgage loans originat- ed by participating local lending institutions to finance or refi- nance the purchase of new or existing owner -occupied single— family residences situated within Collier County Florida, and by persons or families of low, moderate or middle income (the Pro)ect'), to purchase securities from a master servicer evidenc- ing Interests in or backed by a pool of such mortgage loans, in- cluding, without limitation, securities issued by the federal government or agencies thereof or to be used in conjunction with a Mortgage Credit Certificate program or for multifamily housing. Persons may attend the hearing through the participa- tion options set forth below. The Bonds shall not be a debt, liability or obligation of the Au- thority or of Collier County, Florida, or the State of Florlda, or of any political subdivision thereof, but shall be payable sole)yy from the above -referenced mortgage loans or securities ev(- dencing an Interest in or backed by a pool of such mortgage loans. The Bonds are not a debt of the United States of America or any agency thereof, or of GNMA, Fannie Mae or Freddie Mac, and are not guaranteed by the full faith and credit of the Unit- ed States of America. Participation options: (1) Physical attendance. Seating capacity In the conference room is limited and not all may be accommo- dated. (2) Call -in number 929.205.6099; Meeting ID 287 094 7702; Pasuode 555757. All Interested persons are invited to attend the meeting through the options set forth above, and may submit questions or comments or request copies of the application for financing by email to tine Authoritys executive director at don6clappalaw .corn. Persons are advised that, if they decide to appeal any de- cision made at this hearing, they will need a record of the pro- ceedings, and, for such purpose, they may need to ensure that a verbatim record of the proceedings is made, which record in- cludes the testimony and evidence upon which the appeal is to be based. Please contact Don Pickworth at 239-404.1475 with any questions or concerns_ HOUSING FINANCE AUTHORITY OF COLLIER COUNTY By: Donald A. Pickworth General Counsel and Executive Director April 4, 2023 #5652785 RYAN SPELLc,i Notary Pubii: 16. K.3.a Packet Pg. 1188