Agenda 04/08/2025 Item #16D 6 (SHIP subordination agreements and all necessary loan documents between Collier County and MHP FL VII, LLLP for rental housing units at Ekos Cadenza development)4/8/2025
Item # 16.D.6
ID# 2025-897
Executive Summary
Recommendation to approve and authorize the Chairman to sign the State Housing Initiatives Partnership subordination
agreements and all necessary loan documents between Collier County and MHP FL VII, LLLP in the amount of
$1,246,600.80 to further affordable housing initiatives through an impact fee loan for new construction of rental housing
units at the Ekos Cadenza development. (SHIP Grant Fund 1053)
OBJECTIVE: To support comprehensive affordable housing opportunities and further the County’s strategic plan focus
area on Community Development for very low-, low- and moderate-income persons through the State Housing
Initiatives Partnership Program (SHIP).
CONSIDERATIONS: On July 7, 1992, the William E. Sadowski Affordable Housing Act was signed into law to
provide funding to local communities through documentary stamp tax on real estate transactions to promote affordable
housing. Under the program, Collier County and the City of Naples receive funds from the State to provide initiatives to
expand affordable housing opportunities. The Local Housing Assistance Plan (LHAP) identifies various methods, or
strategies, by which funds will be allocated and disbursed. The 2022-2025 LHAP was adopted on April 26, 2022,
(Agenda Item #16.D.3), later amended by technical revision on November 10, 2022, and amended on July 23, 2024
(Agenda Item #16.D3), and January 28, 2025 (Agenda Item #16.D.2).
The LHAP includes the Rental Development Strategy, which permits the County to use SHIP funds to support for-profit
or non-profit organizations to construct new rental units within Collier County for income-eligible renters. This SHIP
strategy is designed to support landlords/owners who have site control of land to build single-family, multifamily, or
mobile/manufactured rental units on scattered sites or within a rental complex.
The Developer commenced construction in October 2022. This development includes 160 rental units designated for
households earning 60% of the Area Median Income (AMI) or below, with five (5) SHIP-assisted units reserved for
households earning 50% AMI or below for a minimum of 30 years. To support this project, the Developer requested a
$1,246,600.80 loan at 0% interest to partially cover the impact fees associated with the affordable housing development
at Ekos Cadenza. After the Developer pays the impact fees to the County, the SHIP loan would reimburse the
Developer. The loan is structured for repayment in a lump sum no later than January 28, 2055, at which time the repaid
amount will be returned to the SHIP program as program income to support future housing initiatives.
On January 28, 2025, Agenda Item# 16.D.3, the Board approved a State Housing Initiatives Partnership (SHIP)
Memorandum of Understanding (MOU) between Collier County and MHP FL VII, LLLP furthering affordable housing
initiatives through a $1,246,600.80 impact fee loan for new construction of rental housing units at the Ekos Cadenza
development.
As part of the agreement, the County is being asked to subordinate its loan interest to the senior lenders through three (3)
subordination agreements using a standard subordination agreement with minor modifications to ensure compliance
with State grant requirements. These modifications have been negotiated among all parties' legal representatives.
Accordingly, staff is requesting Board authorization for the Chairman to sign the three subordination agreements and
execute all related loan subordination documents for this project, upon receipt from the senior mortgagees and approval
by the County Attorney’s Office.
Additionally, the Developer has executed a Declaration of Restrictive Covenants Agreement, Promissory Note, and
Mortgage for the 30-year affordability period, in favor of Collier County, pursuant to the FY 2022-2025 approved
LHAP.
To support comprehensive affordable housing opportunities and further the County’s strategic plan focus area on
Community Development for very low-, low- and moderate-income persons through the State Housing Initiatives
Partnership Program (SHIP).
FISCAL IMPACT: Funds in the amount of $1,246,600.80 are available in the SHIP Grant Fund (1053), Projects
33807, 33863 and 33907. The proposed action does not have any impact on the General Fund.
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4/8/2025
Item # 16.D.6
ID# 2025-897
GROWTH MANAGEMENT IMPACT: Acceptance of these agreements will allow the County to expand affordable
housing opportunities for its citizens and further the goals of the Housing Element of the Collier County Growth
Management Plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved for form and legality
and requires a majority vote for Board approval. -JAK
RECOMMENDATIONS: Recommendation to approve and authorize the Chairman to sign the State Housing
Initiatives Partnership subordination agreements and all necessary loan documents between Collier County and MHP FL
VII, LLLP in the amount of $1,246,600.80 to further affordable housing initiatives through an impact fee loan for new
construction of rental housing units at the Ekos Cadenza development. (SHIP Grant Fund 1053)
PREPARED BY: Prepared By: Lisa N. Carr, Supervisor-Grants, Community and Human Services Division
ATTACHMENTS:
1. Subordination - Florida Housing and Finance
2. Subordination - Keybank National
3. Subordination - The Bank of New York Mellon Trust rev contact for BNYM_
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8.Refinancing. Subordinate Lender agrees that its agreement to subordinate under this
Agreement will extend to any new mortgage debt which is for the purpose of refinancing
all or any part of the Senior Indebtedness (including reasonable and necessary costs
associated with the closing and/or the refinancing, and any reasonable increase in
proceeds for rehabilitation in the context of a preservation transaction). All terms and
covenants of this Agreement will inure to the benefit of any holder of any such
refinanced debt, and all references to the Senior Loan Documents and Senior Lender will
mean, respectively, the refinance loan documents and the holder of such refinanced debt.
9.Governmental Powers. Nothing in this Agreement is intended, nor will it be construed,
to in any way limit the exercise by Subordinate Len der of its governmental powers
(including police, regulatory and taxing powers) with respect to Borrower or the
Mmigaged Property to the same extent as if it were not a party to this Agreement or the
transactions contemplated by this Agreement.
10.Notices.
(a)Any Notice required or permitted to be given pursuant to this Agreement will be
in writing and will be deemed to have been duly and sufficiently given if (i)
personally delivered with proof of delivery (any Notice so delivered will be
deemed to have been received at the time so delivered), or (ii) sent by a national
overnight courier service (such as FedEx) designating earliest available delivery
(any Notice so delivered will be deemed to have been received on the next
Business Day following receipt by the courier), or (iii) sent by United States
registered or certified mail, return receipt requested, postage prepaid, at a post
office regularly maintained by the United States Postal Service (any Notice so
sent will be deemed to have been received on the date of delivery as confirmed by
the return receipt), addressed to the respective parties as follows:
Notices intended for Senior Lender will be addressed to:
The Bank of New York Mellon Trust Company, N.A.
4655 Salisbury Road, Suite 300
Jacksonville, Florida 32256
Attention: Christina Youmans
Email: Christina.youmans@bny.com
Telephone: (904) 645-1995
Notices intended for Subordinate Lender will be addressed to:
Collier County Community and Human Services Division
3339 Tamiami Trail East, Suite 213
Naples, Florida 34112
Attention: Director, Community and Human Services Division
Telephone: 239-252-2273
NG-5BSBJ20W #4896-9712-6936 v4Subordination Agreement
Governmental Entity-TEL (Forward) Page 15
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