SUBJECT/RECOMMENDATION:
Title
Approve a purchase contract between the City of Clearwater and Habitat for Humanity of Pinellas County, Inc./Clearwater Neighborhood Housing Services, Inc. for real property located at 1454 South Martin Luther King Jr. Avenue and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City of Clearwater posted RFP/Q #43-22 as an opportunity for a developer to acquire and develop city-owned property located at 1454 South Martin Luther King Jr. Avenue for use as affordable and workforce housing (Pinellas County Property I.D. #22-29-15-00000-320-1300). On December 1, 2022, Council authorized staff to negotiate a contract for the sale of real property to Habitat for Humanity of Pinellas County, Inc. and Clearwater Neighborhood Housing Services, Inc., together, as the selected Developer of the real property located at 1454 South Martin Luther King Jr. Avenue.
Per the contract, the development shall be consistent with Buyer’s response to City of Clearwater RFP/Q 43-22. The Buyer shall construct 24 units of mixed-income, owner-occupied townhomes with 50% of the units reserved for households with total household income up to 80% of the Area Median Income (AMI) as determined by the United States Department of Housing and Urban Development, and the remaining 50% will be reserved for household with total household income up to 120% of AMI. If the Buyer determines that there are site challenges that restrict the number of units to under 24, the city may approve the reduction in units if the city determines that a reduction in the number of units is a reasonable request. Otherwise, the City may terminate the contract.
The Buyers response to RFP 43-22 identified a $1,240,170 cash gap in addition to the requested donation of the property, therefore Exhibit B of the contract specifies the City agrees to commit to the donation of the parcel, valued at $525,000 and a contribution of an additional $357,585 for a total direct subsidy of $882,585 (half of the total direct subsidy identified as required in the response). The Buyer will seek funding from Pinellas County for the remaining gap (presumably $882,585).
Additionally, to support the city’s Greenprint 2.0 objectives, and for the direct benefit of the homeowners, the City will provide an amount not to exceed $384,000 for the engineering, installation, permitting, inspections, and materials 24 each 5KW rooftop solar systems panels ($336,000 or $14,000 per unit) and Level 2 electric vehicle charging capabilities ($48,000, or $2,000 per unit) by means of a dedicated 240V/40A circuit for each residential unit.
Subject to the availability of funds, the City also agrees to provide down payment assistance loans to purchasers with household incomes under 120% AMI and above 80% AMI for 12 units in accordance with the city’s Down Payment Assistance Program. The Buyer agrees to provide 0% mortgages for the households that qualify for the units reserved for 80% AMI and under.
Additional requirements provided by Exhibit B establishes terms and conditions that Buyer must meet prior to and after closing. Per the exhibit, all pre-development activities must be completed prior to closing including, but not limited to, funding commitments, site approval and building permits. The Buyer has agreed to construct each unit with electric vehicle charging capabilities and the aforementioned rooftop solar panels.
To ensure the long term success of the project, the Buyer has agreed to have one member from either of the organizations serve on the Homeowners Association (HOA) managing board for the term of the required affordability period, to contract with a third-party HOA management company to manage HOA operations and financials, to contribute $1,000 per unit to the HOA reserve account, and to coordinate with Lender(s) to require HOA fees be included in the monthly mortgage escrow payment.
APPROPRIATION CODE AND AMOUNT:
Funding is to be provided by State Housing Initiatives Partnership (SHIP) Program and Revenue Recovery Funds provided by the American Rescue Plan Act - Local Fiscal Recovery Funds. No General Fund monies will be appropriated.