SUBJECT/RECOMMENDATION:
Title
Authorize a loan to Habitat for Humanity of Pinellas County, Inc. in the amount of $768,000 to acquire real property located within the 600 block of North Garden Avenue, Clearwater; and authorize the appropriate officials to execute documents to affect closing. (consent)
Body
SUMMARY:
Through a series of negotiations that included the City of Clearwater, Habitat for Humanity of Pinellas County, Inc. is under contract to purchase a 1.6-acre tract of land (mol) owned by five different landowners. The five contiguous properties are located in the block bordered by North Garden Avenue, Eldridge Street, Maple Street and the Pinellas Trail. Spruce Street bisects the block from north to south. Habitat plans to construct 13 single-family, three-bedroom homes to be made available to families with income at or below 80% of Area Median Income.
The Purchase price for the property is $754,500 and staff anticipates closing costs not to exceed $13,500. Funding for the project includes $576,000 from the HOME Investment Partnership Program and $192,000 from the Pinellas County Housing Trust Fund. $508,000 of the loan will be forgiven upon the closing of an additional loan to Habitat for Humanity for construction. The terms of a construction loan will be presented to Council at a later date. The remaining $260,000 will be due to the City in equal installments upon the closing of each home.
Habitat for Humanity anticipates construction beginning in July 2017 with completion in July 2018.
APPROPRIATION CODE AND AMOUNT:
Funding for this project is available with the use of HOME funding from the United States Department of Housing and Urban Development and the Pinellas County Housing Trust Fund.
USE OF RESERVE FUNDS:
N/A