SUBJECT/RECOMMENDATION:
Title
Approve a grant of $75,000 in General Fund Reserves to be set aside for a commitment as the local government contribution that is required for applicants to participate in the State of Florida’s Low Income Housing Tax Credit Program (LIHTC) for Woodlawn Trail, a proposed 80-unit affordable housing development to be developed by Southport Development, Inc.; and authorize the appropriate officials to execute same.
Body
SUMMARY:
Woodlawn Trail is a proposed 80-unit, new construction, affordable housing community located at 826 Woodlawn Street, Clearwater. The proposed development team includes Southport Development, Inc., Vaughn Bay Construction, Inc. and Architectonics Studios, Inc. The applicant, SP Trail, LLC, shares the same key principal as Southport Development, Inc., J. David Page. The proposed commencement date is second quarter of calendar year 2017 and completion is estimated for second quarter of 2018.
Staff is recommending a funding commitment to Woodlawn Trail using $75,000 from General Fund Reserves. At the time of project award the Housing Division will commit funds from one of the following funding sources to refund the General Fund: CDBG, HOME, SHIP and PCHTF. Ultimately, the project will have no impact on the General Fund.
The proposed development will include 80 two and three bedroom units in six total buildings that will serve the family demographic. Five buildings will house the residential units and the sixth building will house the office and clubhouse. 90% of the units will be set-aside for residents with family incomes at or below 60% of Area Median Income (AMI) and 10% of the units will be set aside for residents with family incomes at 40% of AMI.
The Florida Housing Finance Corporation requires that projects of this type provide resident programs for the life of the compliance period, which is 50 years in this case. Proposed resident programs include English as a second language training, computer training, health and nutrition classes, resident activities, and case management/residential stabilization services. These program offerings are intended to supplement programming currently offered at the nearby Ross Norton Recreation Center.
The City of Clearwater’s 2016-2020 Consolidated Plan (Plan) discusses the City’s housing priorities. The Plan describes numerous housing needs, plans and strategies which include, but are not limited to, reducing the cost burden of housing for extremely low to moderate income residents and the creation of new owner and rental units. The proposed project, intended to serve low and very low income residents within the family demographic, is consistent with these priorities.
As background, the Low Income Housing Tax Credit Program is governed by the U.S. Department of Treasury under Section 252 of the Tax Reform Act of 1986 and Section 42 of the Internal Revenue Code, as amended. The program was established to provide for-profit and non-profit organizations with a dollar-for-dollar reduction in federal tax liability in exchange for the acquisition and substantial rehabilitation or new construction of low and very low-income rental housing units (60% of the Area Median Income and below with a set aside for 40% of AMI and below). The proposed contribution of $75,000 represents local government support of the project. Local government support may affect whether the project gains necessary approvals.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
Funding for this contract will be provided by General Fund reserves in the amount of $75,000.
Inclusive of this item if approved, a net total of $2,429,880 of General Fund reserves has been appropriated by Council to fund expenditures during fiscal 2015/2016. The remaining unappropriated balance of General Fund reserves is approximately $29.3 million, or 23.5% of the current General Fund operating budget.