Agenda 04/22/2025 Item #16K 3 (Resolution - Approve a resolution for up to $50M in mortgage revenue bonds or use of volume cap for MCC programs or multifamily housing for low/moderate-income residents.)4/22/2025
Item # 16.K.3
ID# 2025-1220
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 requests submitted by the Authority in 2022, 2023 2024 and
approved by the BCC by Resolutions 2022-106, 2023-98 and 2024-252 respectively.
Background-Private Activity Bond Volume Cap Requirements
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 an agency 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.
To partially offset these risks, most 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 strategy.
As an example of the success of this strategy, the recently-approved Wave at Rose project, a 230-unit affordable housing
apartment complex in Immokalee, will be financed by bonds issued under the allocation granted in January, 2023 as a
result of Resolution 2022-106 referred to above. As a result of the 2023 and 2024 resolutions, the Authority received
allocations in 2024 and 2025, which provides up to $100 million in allocation capacity through 12/31/29.
Process for obtaining Volume Cap Allocation
Volume cap allocations are granted by the State Division of Bond Finance pursuant to formulas set by state statute.
Applications for allocations must be made on or after January 2, 2026, and in practicality must be made that day because
all available allocations will likely be made on Jan. 2, and no further allocations will be available until the following
January (2027). This requires certain hearings and approvals to be done in 2025 so the application is ready to be filed
on Jan. 2. As the first step to implement this strategy, the Authority held a publicly advertised hearing on April 9, 2025,
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 2025-04 (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.
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Item # 16.K.3
ID# 2025-1220
The second step in the process is the Internal Revenue Code requirement 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 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, nor any employee or 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 Government Approval. Issuer Approval is the approval of the issuer of the bonds and is initially
evidenced by the adoption of a resolution such as the Authority Resolution as attached to the County Resolution. The
Board grants Host Government Approval when it adopts a resolution approving the issuance of the bonds by the Issuer
(called the "County Resolution" in this Executive Summary). Host Government Approval is the approval of the
governmental unit with geographic jurisdiction over the location of the project.
The primary requirement of Host Government 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 the 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
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Item # 16.K.3
ID# 2025-1220
prerequisite to consideration of an application for financing.
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 appears not 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 (Plan of Finance) 4-22-25
2. Authority Resolution-Plan of Finance
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1
RESOLUTION NO. 2025-_______
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 (THE "AUTHORITY")
OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS (THE
"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
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2
WHEREAS, the Authority held a public hearing on April 9, 2025, 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. 2025-04 (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.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
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PASSED AND ADOPTED THIS 22nd day of April, 2025.
(SEAL)
ATTEST: BOARD OF COUNTY COMMISSIONERS
Crystal K. Kinzel, Clerk of Courts COLLIER COUNTY, FLORIDA
By: ___________________________ By: _____________________________
, Deputy Clerk Burt L. Saunders, Chairman
Approved as to form and legality:
______________________________
Jeffrey A. Klatzkow, County Attorney
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EXHIBIT A
HOUSING FINANCE AUTHORITY OF COLLIER COUNTY
RESOLUTION 2024-03
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EXHIBIT A TO COUNTY RESOLUTION
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attorney for the Authority, officers, agents and employees of the Authority with respect to theSingle Family Bonds and/or the Plan of Finance are hereby authorized and ratified.Section 5.adoption.Effective Date. This Resolution shall take effect immediately upon itsPASSED AND ADOPTED, this 9th day of April 2025.3 HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA By:� j,/i� Vice-Chair Page 5750 of 6355
EXHIBIT A-PROOF OF PUBLICATION OF NOTICE OF HEARING
4
Page 5751 of 6355
LocaliQ
AFFIDAVIT OF PUBLICATION
Donald Pi ckwonh
Donald Pickworth PA
725 High Pines DR
Naples FL 34103-2800
Florida
GANNETT
STATE OF WISCONSIN, COUNTY OF BROWN
Before the undersigned authority personally appeared, who
on oa_th 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 Govt
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:
03/31/2025
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 03/31/2025
My commission expires
Publication Cost: $433.20
$0.00
$433.20
11173380
1125571
Tax Amount:
Payment Cost:
Order No:
Customer No:
PO#:
THIS IS OTA INVOICE!Please do 1101 use this form for pay111e111 re111i11011ce. # of Copies:
1
PO Bo x 631244 Cincinnati, OH 45263-1244
NOTICE OF PUBLIC HEARING HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA
NOTICE IS HEREBY GIVEN of a Public hearing bY lhc Housing Flnonce AUlhorilY of Collier CounlY, Florida (!he • Aulhorily" ), lo be held on April 9, 2025, al 9:00 a.m. (local lime), in !he in !he Conference Room, flflh floor, UBS Private Wealth Management, 80llourel Ook Drive, Suite S00, Naples. Florido 34108. for the purp0se of receiving comments and hearing discussion concerning a olan of financing subiect to the Internal Revenue Code of 1986, as amended (the ·code•), Pursuant to which the Authority will issue its Single Family Mor1goge Revenue Bonds, in one or more series. In an aggregate principal amount of not to exceed sso,000,000, pursuant to the pion of finance Cthe • eonds• ), the proceeds of which will be used to make available fund.s to purchase federally insured or ouorontecd mortgage loons originated by parficipating local lending institutions to finance or refinance the ourchosc of new or existing owner-occupied single-family residences situated within Collier County, Florido, by persons or families of low, mOdcrote or middle income (the • Proiect .. ), to purchase securities from a master servicer evidencing interests in or bocked bv a POOi of such mortgage loons, including, without limitation, securities issued by the federal government or agencies thereof or to be usod in conlunction wlth a Mortgage Credit Certificate program or for mulflfamily housing. Persons moy attend the hearing through the participation optlons set forth below.
The Bonds shall not be a debt, liobflity or obligation of the Aulhorlty or of Collier County, Florido, or the Stole of Florido, or of any polilicol subdlvi• sion thereof, but shall be payable solely from the above-referenced mortgage loons or securities evidencing on inlerest in or bocked by a POOi of such mortgage Joans or by the revenues i>lodged therefor in tht-case of multifamily housing bonds. The Bonds ore not a debt of the Unired Stoles of America or onv ogcncv thereof. or of GNMA, Fannie Mae or Freddie Mac, and are nol guaranteed bY lhe lull lailh and credil of lhe Uniled Slales of America.
Participation options: ( 1) Physical attendance. Seating capacity In the conference room is limited and not ell mov be accommodated. (2) Coll-in number 929.205.6099; Meeting ID 287 094 7702; Passcode 556757. Zoom: hl!Ps·//uso2wAb.zooro vs/iO8ZQ947702? PWd -40U IQUd K KI 8V9WTvosM4nkort I PE Mi. 1 &omo-e58ZS0935Ql
All Interested persons ore lnviled to 0IIend the meeting through !he options set forth above, end may submit quesrions or comments, or request copies of the application for financing by email to the Authority's executive director at donC:doppafaw.com. Persons ore advised that, if they decide to appeal any decision made or this hearing, they will need o record of the proceedings, and, for such Purpase, thev mov need to ensure that o verbofim record of the proceedings is mode, which record Includes the testimony and evidence upon which the appeal is to be based. Please contact Don Plck-1,•1orth ct 239.404.1475 with any questions or concerns.
HOUSING FINANCE AUTHORITY OF COLLIER COUNTY Bv: Donald A. Plckworlh General Counsel and Executive Director
11173380 3131/25
NANCY HEYRMAN
Notary Public
State of Wisconsin
EXHIBIT A TO AUTHORITY RESOLUTION
e Page 1 of
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