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Agenda 04/22/2025 Item #16K 2 (Resolution authorizing the issuance of revenue bonds for the acquisition, construction, and development of the 230-unit Wave at Rose multifamily housing project in Immokalee, located at Rose Avenue and School Drive.)4/22/2025 Item # 16.K.2 ID# 2025-1218 Executive Summary Request by the Housing Finance Authority of Collier County for approval of a Resolution authorizing the Authority to issue revenue bonds for the acquisition, construction, equipping, and development of a 230-unit multifamily residential housing facility known as Wave at Rose, and located at the northeast corner of Rose Avenue and School Drive in Immokalee, Florida. OBJECTIVE: To accomplish the necessary approvals to authorize a proposed revenue bond issue by the Housing Finance Authority of Collier County (the “Authority”) to be used by OHG FL, Collier I LP (the “Applicant”) for the purpose of providing funds to finance the costs of acquisition, construction, equipping and developing of Wave at Rose Apartments, an affordable housing facility located in Immokalee. CONSIDERATIONS: The Authority has received and preliminarily approved a request by the Applicant to issue its multifamily housing revenue bonds in an amount not to exceed $41,500,000 to finance the costs of acquisition, construction, equipping and developing of Wave at Rose Apartments, an affordable housing facility located Immokalee (the Project"). The Project Wave at Rose is a planned 230-unit apartment complex located at the northeast corner of Rose Avenue and School Drive, in Immokalee. It will consist of three four-story elevator-served buildings, and a single-story clubhouse. 100% of the units will be set aside for tenants whose income does not exceed 60% of area median income (AMI). Of particular interest to the Authority is that over 50% of the units will be three-bedroom units, as there are very few affordable three-bedroom units in the area. The remainder of the units will be one and two bedrooms. Amenities include central laundry, exercise facility, playground and swimming pool. The Project's proposed number of units, density, and intended use are consistent with the Collier County Land Development regulations, and the Applicant supplied the Authority with a copy of a certification to that effect from the County Zoning Director. The Developer The development entity will be Onda Housing Group, LLC, an experienced affordable housing developer. Onda is currently completing Bayshore Pines, a 180-unit 100% affordable apartment complex in North Fort Myers, and is planning a 237-unit affordable senior facility in the Naples area. Financing Structure The bonds will be issued in minimum denominations of $250,000 and will be privately placed with the anticipated lender, Citibank Community Capital, the leading affordable housing lender in the county. Low-income housing tax credit equity (LIHTC) will be provided by CREA. Structurally, the bonds will be purchased by Citibank Community Capital as a private placement under a Financing Agreement. There will be a third-party fiscal agent, such as US Bank, that performs the duties done by a trustee in a sale transaction. The Bond Approval Process: Public Hearing Requirement The Internal Revenue Code requires that the issuing authority hold an advertised public hearing on the nature and location of the project and the issuance of the bonds. This hearing was advertised in the Naples Daily News on February 26, 2025, and a copy of the notice, in the form and time frame required by the Code, and proof of publication is attached as Exhibit A to the Authority Resolution, as described below. The hearing was held by the Authority on March 6, 2025. Page 5727 of 6355 4/22/2025 Item # 16.K.2 ID# 2025-1218 At the hearing, the Authority considered the applications and other documents presented by the Applicant, heard presentations by its agents and representatives, and opened the hearing to comments, either oral or written, by members of the public. No members of the public attended the hearing, in person or remotely, and there were no comments in opposition to the project or the bonds received prior to the hearing. At the conclusion of the hearing, the Authority adopted Resolution 2025-03, preliminarily approving the bonds, and directing appropriate officers of the Authority to seek approval of the issuance of the Bonds by the Board of County Commissioners, as is required by the Code. Copies of the resolution adopted by the Authority (the "Authority Resolution") are 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, even if the project is located in a municipality. This approval is signified by the adoption of a resolution (the "County Resolution") approving the issuance of the bonds by the Authority. As are all revenue bonds of this type, these bonds are based on revenues of 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 revenues except the revenues of the Project. Neither the County, the Board, nor any officer of the County is liable for their payment. Further, the Resolution expressly 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 publicly-owned 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 Inducement Resolution (called the "Authority Resolution" and attached to the County Resolutions as Exhibit A), 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 Authority and Host Approval is given after the Board receives the report and recommendations of the Authority in the form of the Authority Resolution. 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. This is reflected in the Authority Resolution, the County Resolution, and on the face of the bonds themselves. Bonds of this type are treated as Component Unit Debt on the County's annual audit. Page 5728 of 6355 4/22/2025 Item # 16.K.2 ID# 2025-1218 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. GROWTH MANAGEMENT IMPACT: The adoption of the attached Resolution will have no adverse growth management consequences. The Project will be well served by existing public infrastructure and is in accordance with all growth management regulations as applicable. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. Review of these and similar bonds by the Governing Body is a statutory requirement and serves as a safeguard against the issuance of inappropriate bonds, which does not appear to be the case here. The County has no liability, contingent or otherwise, with respect to these bonds. With that noted, this item is approved as to form and legality and requires majority vote for Board approval. -JAK RECOMMENDATIONS: The Board of County Commissioners adopt the attached Resolution. PREPARED BY: Donald A. Pickworth, Counsel Collier County Housing Finance Authority ATTACHMENTS: 1. County Resolution (Wave at Rose) 2. Authority Resolution Wave at Rose Page 5729 of 6355 1 RESOLUTION NO. 2025-__ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, APPROVING THE ISSUANCE OF NOT EXCEEDING $41,500,000 MULTIFAMILY HOUSING REVENUE BONDS, SERIES 2025 (WAVE AT ROSE) PURSUANT TO CHAPTER 159, PART IV, FLORIDA STATUTES, AS AMENDED. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: Section 1. Recitals. It is hereby found, ascertained, determined and declared that: A.The Housing Finance Authority of Collier County (the "Issuer") is a public corporation of the State of Florida, was duly created by Ordinance No. 80-66 of the Board of County Commissioners of Collier County, Florida, and is a body corporate and politic duly created and existing as a local governmental body and a public instrumentality for the purpose of assisting qualifying housing projects situated in Collier County, Florida (the "County"), under and by virtue of Chapter 159, Part IV, Florida Statutes, (the "Act"). to provide for the issuance of and to issue and sell its obligations for lawful purposes under the Act. B.The Issuer has submitted to the Board of County Commissioners a copy of its Resolution 2025-04 (the "Authority Resolution"), attached hereto as Exhibit A, with respect to the issuance by it of not to exceed $41,500,000 Housing Finance Authority of Collier County Multifamily Housing Revenue Bonds, Series 2025 (Wave at Rose) (the "Bonds"). C.A public hearing was held on the Authority Resolution on March 6, 2025, which public hearing was duly conducted by the Issuer upon reasonable public notice, a copy of said notice being attached as Exhibit A to the Authority Resolution, and at such hearing interested individuals were afforded the opportunity to express their views, both orally and in writing, on all matters pertaining to the location and nature of the proposed project and to the issuance of the Bonds. D.The Issuer has recommended and requested that the Board of County Commissioners approve the issuance of the Bonds so that the interest on the Bonds will be exempt from federal income taxation under applicable provisions of Section 147(a) of the Internal Revenue Code of 1986, as amended. E.The Authority Resolution shows that the Issuer has acted in accordance with all applicable requirements of law, and that the issuance of the Bonds will serve significant public purposes as provided in the Act. F.The purpose of the Act will be effectively served, and it is necessary and desirable and in the best interest of the County that the issuance of the Bonds be approved by the Board of County Commissioners. Page 5730 of 6355 2 G. The Bonds shall not constitute a debt, liability or obligation of Collier County, its Board of County Commissioners, officers, agents or employees, or the State of Florida or any political subdivision or municipality thereof, but shall be payable solely from the revenues provided therefore, and neither the faith and credit nor any taxing power of Collier County, or the State of Florida or any political subdivision or municipality thereof is pledged to the payment of the principal of, premium, if any, and interest on the Bonds. No member of the Board of County Commissioners of Collier County or any officer, agent, or employee thereof shall be liable personally on the Bonds by reason of its issuance. Section 2. Approval of Issuance or the Bonds. The issuance of the Bonds as contemplated by the Authority Resolution is hereby approved, however this approval shall in no way be deemed to abrogate any regulations of the County and the 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 3. Repealing Clause. All resolutions or orders and parts thereof in conflict herewith, to the extent of such conflict, are hereby superseded and repealed. Section 4. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THIS 22nd day of April, 2025. ATTEST: BOARD OF COUNTY COMMISSIONERS Crystal K. Kinzel, Clerk of Courts OF COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk Burt L. Saunders, Chairman Approved as to form and legality: Jeffrey A. Klatzkow, County Attorney Page 5731 of 6355 A-1 EXHIBIT A AUTHORITY RESOLUTION Page 5732 of 6355 RESOLUTION NO. 2025-03 RESOLUTION REGARDING THE OFFICIAL ACTION OF THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA RELATIVE TO THE ISSUANCE OF NOT TO EXCEED $41,500,000 IN INITIAL PRINCIPAL AMOUNT OF ITS MULTIFAMILY HOUSING REVENUE BONDS, SERIES 2025 (WA VE AT ROSE) FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, EQUIPPING, AND DEVELOPING A MULTIFAMILY RESIDENTIAL HOUSING FACILITY FOR PERSONS OR FAMILIES OF LOW, MIDDLE OR MODERATE INCOME; FURTHER AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BY AND BETWEEN THE AUTHORITY AND OHG FL COLLIER I ROSE LP; AND PROVIDING AN EFFECTIVE DATE. W,"' "ft: -t P.c, �rN4.tcewa1t WHEREAS, OHO FL Collier I Rose LP (the "Company") has applied to the Housing Finance Authority of Collier County, Florida (the "Authority") to (i) issue its Multifamily Housing Revenue Bonds, Series 2025 (Wave at Rose) in a principal amount not to exceed $41,500,000 (the "Bonds") for the purpose of financing the acquisition, construction, equipping and development of a multifamily residential housing facility for persons or families of low, middle or moderate income to be located in Collier County, Florida, (the "Project"), and (ii) to loan the proceeds of the Bonds to the Company pursuant to Chapter 159, Part IV, Florida Statutes, and Chapter 159, Part II, Florida Statutes, or such other provision or provisions of Florida law as the Authority may determine advisable (the "Act"); and WHEREAS, subject to the terms set forth herein and in the Memorandum of Agreement of even date herewith, the Company has requested that the Authority make a determination toissue the Bonds under the Act in one or more issues or series not exceeding an aggregate principal amount of $41,500,000 and to loan the proceeds thereof available to finance the Project under a loan agreement or other financing agreement which will provide that payments thereunder be at least sufficient to pay the principal of and interest and redemption premium, if any, on such Bonds and such other costs in connection therewith as may be incurred by the Authority, to assist the Company and promote the purposes provided in the Act; and WHEREAS, in order to satisfy certain of the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, the Authority held a public hearing on the proposed issuance of the Bonds for the purposes herein stated, which date was at least 7 days following the first publication of a notice of such public hearing as required by law (a form of such notice is included i11: Exhibit A attached hereto), which public hearing was conducted in a manner that provides a reasonable opportunity for persons with differing views to be heard, both orally and in 1 EXHIBIT A TO COUNTY RESOLUTION Page 5733 of 6355 writing, on both the issuance of such Bonds and the location and nature of the portion of the Project to be financed with the proceeds therefrom; and WHEREAS, an affidavit as to such notice is attached hereto as Exhibit A; and WHEREAS, it is intended that this Resolution shall constitute official action toward the issuance of the Bonds within the meaning of the applicable United States Treasury Regulations; IT IS, THEREFORE, DETERMINED AND RESOLVED BY THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA, THAT: 1.APPROVAL OF THE PROJECT. The acquisition, construction, equippingand development of the Project and the financing thereof by the Authority through the issuance of the Bonds, pursuant to the Act, will promote the health and welfare of the citizens of Collier County, Florida, and will thereby serve the public purposes of the Act. 2.EXECUTION AND DELIVERY OF THE MEMORANDUM OFAGREEMENT. The Chairman or Vice Chairman of the Authority hereby are authorized and directed to execute, for and on behalf of the Authority, the Memorandum of Agreement of even date herewith between the Authority and the Company providing understandings relative to the proposed issuance of the Bonds by the Authority to finance the Project in an aggregate principal amount not to exceed $41,500,000. 3.AUTHORIZATION OF THE BONDS. Subject to the terms and conditions setforth herein and in the Memorandum of Agreement, there is hereby authorized to be issued and the Authority hereby determines to issue the Bonds, if so requested by the Company, in one or more issues or series in an aggregate principal amount not to exceed $41,500,000 for the purpose of financing the Project described in such Memorandum of Agreement. The Bonds shall be designated the "Housing Finance Authority of Collier County, Florida Multifamily Housing Revenue Bonds, Series 2025 (Wave at Rose)". The rates of interest payable on the Bonds shall not exceed the rate permitted by law. 4.RECOMMENDATION FOR APPROVAL TO BOARD OF COUNTYCOMMISSIONERS. The Authority hereby recommends that the Board of County Commissioners of Collier County, Florida (the "Board") approve the issuance of the Bonds and the financing of the Project. The Authority hereby directs the Chairman, Vice Chairman or Authority's Counsel, either alone or jointly, at the expense of the Company, to seek approval for the issuance of the Bonds and the financing of the Project by the Board as the applicable elected representatives of Collier County, Florida, under and pursuant to the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended. 5.GENERAL AUTHORIZATION. The Chairman, the Vice Chairman, theSecretary and counsel for the Authority hereby are further authorized to proceed, upon execution of the Memorandum of Agreement, with the undertakings provided for therein on the part of the 2 Page 5734 of 6355 Authority and are further authorized to take such steps and actions as may be required and necessary in order to cause the Authority to issue the Bonds subject to the terms and conditions set forth herein and in the Memorandum of Agreement authorized hereby. 6.AFFIRMATIVE ACTION. This Resolution is an affirmative action of the Authority toward the issuance of the Bonds, as contemplated in said Memorandum of Agreement, in accordance with the purposes of the laws of the State of Florida and the applicable United States Treasury Regulations. 7.APPROVAL OF NOTICE AND PUBLICATION OF PUBLIC HEARING. The form of notice of public hearing attached hereto as Exhibit A is hereby approved and the publishing thereof authorized on behalf of the Authority as referenced in Exhibit A ratified and approved by the Authority. 8.APPOINTMENT OF COUNSEL. The firm of Nabors, Giblin & Nickerson, P.A. is duly appointed Bond Counsel in connection with the issuance of the Bonds. Donald A. Pickworth, P.A., is duly appointed Issuer's Counsel. 9.LIMITED OBLIGATIONS. The Bonds and the interest thereon shall not constitute an indebtedness or pledge of the general credit or taxing power of the Authority, Collier County, the State of Florida or any political subdivision or agency thereof but shall be payable solely from the revenue pledged therefor pursuant to a loan agreement or other fmancing agreement entered into by and between the Authority and the Company prior to or contemporaneously with the issuance of the Bonds. 10.LIMITED APPROVAL. The approval given herein shall not be construed as an approval of any necessary zoning applications nor for any other regulatory permits relating to the Project, and the Authority shall not be construed by reason of its adoption of this Resolution to have waived any right of the County and/or of any city in which the proposed Project is to be located or to have estopped the County and/or such city, if any, from asserting any rights or responsibilities it may have in that regard. In addition, this Resolution and the Memorandum of Agreement are conditioned upon and subject to: (1) the determination by the Authority, in its sole and absolute discretion at a future date, that it is in the best interests of the Authority and the residents of Collier County, Florida, to use the tax exempt volume cap allocation potentially available to the Authority to issue the Bonds; (2) receipt of the necessary volume cap tax exempt allocation from the State of Florida, Division of Bond Finance; (3) receipt of the approval of the Project and the proposed financing of the Project by the Board; (4) the ownership and control of the Company and its principals not varying more than five (5%) percent from what has been represented to the Authority in the Company's Application; (5) the number of multi-family units to be constructed by the Company not decreasing by more than five (5%) percent from the 230 units referenced in the Company's Application; (6) the proposed Project, including, but not limited to design, materials, type of construction materials, etc. not changing materially without the prior written consent of the Authority; and (7) the closing of the Bonds occurring on or before the stated expiration date of volume cap allocation from the State of Florida Division of 3 Page 5735 of 6355 Bond Finance, unless extended by the Authority in its sole and absolute discretion. In the event that any of the foregoing events shall not talce place, if applicable, or shall occur or take place, if applicable, it shall operate as a termination of this Resolution and the Memorandum of Agreement. 11.BOND ALLOCATION. Upon a determination by the Authority as set forth inthe Memorandum of Agreement to request private activity bond allocation with respect to such Bonds, the Chairman, Vice Chairman or Authority's Counsel are hereby authorized to execute all necessary documents for obtaining and preserving an allocation from the State of Florida, Division of Bond Finance upon request by the Company. This Resolution shall take effect immediately. 4 Page 5736 of 6355 Page 5737 of 6355 EXHIBIT A AFFIDAVIT AS TO PUBLICATION OF NOTICE OF PUBLIC HEARING A-1 Page 5738 of 6355 AIFFBDAVDT CIF PUIBULOCA1"D@N Nabors, Giblin And Nickerson Po Box 11008 Tallahassee FL 32302-3008 loca�iQ Florida GANNETT STATE OF WISCONSIN, COUNTY OF BROWN Before the undersigned authority personally appeared, who on oath says that he or she is the Legal Advertising Representative of the Naples Daily News, a newspaper published in Collier County, Florida; that the attached copy of advertisement, being a Legal Ad in the matter of Public Notices, was published on the publicly accessible website of Collier and Lee Counties, Florida, or in a newspaper by print in the issues of, on: 02/26/2025 Affiant further says that the website or newspaper complies with all legal requirements for publication in chapter 50, Florida Statutes. Subscribed and sworn to before me, by the legal clerk, who is personally known to me, on 02/26/2025 � My commission expires Publication Cost: $354.80 $0.00 $354.80 11070175 Tax Amount: Payment Cost: Order No: Customer No: 1125021 PO#: LSAR0247085 THIS IS NOT AN INVOICE! Please do not use this/ol'm/or payment remiuance. KAITLYN FELTY Notary Public State of Wisconsin #of Copies: 0 EXHIBIT ATO AUTHORITY RESOLUTION PO Box 631244 Cincinnati, OH 45263-1244 Page 1 of 2 Page 5739 of 6355 Notice of Publlc Hearing and Spoclal Meeting Housing Finance Authorltv of Collfer Countv, Florida Notice Is herebv elven that the Housing Finance Authority of comer Countv (the "Authorltv'') wlll conduct a public hearing In accordance with the Tax Equltv and Fiscal Respanslbllltv Act of 1982 (TEFRA) on March 6, 2025, at 9:00 a.m. (local time) In the Cauntv Manager's Conference Room, Suite 202, BUlldlng F, Collier Countv Governmental Center, 3299 E. Tamlaml Trail, Naples, Florida for the purpose of receiving comments and hearing discussion concerning the proposed Issuance of the Authar­ltv's Multlfamllv Housing Revenue Bonds to be used to finance the acquisition of the followlns protect: Name of Protect: wave at Rose Initial Owner: CHG FL COLLIER I ROSE LP Tax-exempt Financing Requested: $41,500,000 Number of Units: 230 Size cf Site: 11.s Acres Location: NE corner of Rose Avenue and Sehool Drive, 1mmo1<aIee, Florida 34142 If Issued, the bonds wlll be payable solely from the revenues derived bV the Authority pursuant to a Loan Asreement or other flnanclng docu­ments between the Authority and the Initial Owner. The bonds WIii not constitute an Indebtedness of Callier Countv, the State of Florida or anv polltlcal subdivision or aoencv thereof within the meaning of anv constltutlcnal or statutory debt llmitatlcn er restriction. The ad valorem toxins power of Colller county Is not pledged and mav not be compelled to be exercised to make anv payments of Prlncl• pal, premium (If anv> er Interest on the bonds. No propertv cf the countv or the State or anv polltlcal subdivision or agency thereof wlll be pledged far payments of prlncl­pal, premium (If any) or Interest on the bonds, excepting onlv the revenues pledged by the Author­ity as described In this paragraph. The Authority has no toxins power. All Interested persons are Invited to attend tho meatlnc, throuoh tho cimcns set forth above, and mav submit questions or comments, or request copies of the applfcatlcn for financing by emoll to the Authorltv's executive directer at donOdappa, law.com. Persons are advised that, If thev decide to appoal anv decision made at this hearlns, they will need a record of the proceedings, and, for such pun>cse, they may need ta ensure that a verbatim record al the proceedings Is made, which record Includes the tostlmonv and evidence upon which the appeal Is to be based. Please contact Den Plckworth at 239.404.1475 with anv questions or concerns. HOUSING FINANCE AUTHORITY OF COLLIER COUNTY av: Donald A. Plckworth General Counsel and Executive Director Februarv 26 2025 LSAR0247085 Page 5740 of 6355