LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
title
INTERLOCAL AGREEMENT WITH ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY FOR LOCAL GOVERNMENT CONTRIBUTION FOR STATE APARTMENT INCENTIVE LOAN (SAIL) FINANCING OF AFFORDABLE MULTIFAMILY DEVELOPMENTS
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RECOMMENDATION:
recommendation
That City Council approve the Interlocal Agreement with Escambia County Housing Finance Authority (ECHFA) to coordinate local government support of application(s) from developers within the Pensacola City limits for Florida Housing Finance Corporation’s RFA 2022-205 State Apartment Incentive Loan (SAIL) Financing of Affordable Multifamily Housing Developments to be used in Conjunction with Tax-Exempt Bonds and Non-Competitive Housing Credits. Further, that the Council authorize the Mayor to sign the Local Government Verification of Contribution Form required.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
A priority recommendation made to the City in the 2018 Final Report by the City’s Affordable Housing Task Force was for the City to support tax credit developments. Developers wanting to apply for housing tax credits through Florida Housing Finance Corporation (FHFC)’s annual Request for Application (RFA) cycle to develop affordable rental housing must secure a “Local Government Verification of Contribution Form” from a local government in order to receive maximum points during the scoring process to receive consideration for funding from FHFC. This form confirms local government support of a project as well as committing a minimum funding amount toward the development as outlined in each specific RFA.
Under this Interlocal, the Escambia County Housing Finance Authority (ECHFA) has agreed to provide the minimum funding contribution for developers wanting to apply for RFA 2022-205 SAIL Financing of Affordable Multifamily Developments to be Used in Conjunction with Tax-Exempt Bonds and Non-Competitive Housing Credits within the City limits and the City will sign the Local Government Verification of Contribution Form. FHFC has not finalized the RFA yet, but it is anticipated that the minimum local government contribution amount will be $37,500.
The State Apartment Incentive Loan (SAIL) program is funding available from the state to be used as gap financing in conjunction with bond financing and non-competitive housing credits. The RFA from FHFC is expected to be issued on November 10, 2022 and will be due December 29, 2022. Locally, interested developers will submit a local application to the ECHFA who also will provide the bond financing for any potential projects. The applicant must comply with federal income set asides and additional criteria as established by FHFC in the RFA, which may include a specific affordability period, additional income set-asides, and units for households with special needs.
Application support and review will be provided by the City Housing Department in coordination with ECHFA. Due to the limited funding from FHFC and competition from other proposals that may be submitted from other medium sized counties, there is no guarantee of a development being funded within the City under this RFA. This partnership enables a development to obtain maximum scoring points for that portion of the application, which provides a greater opportunity for an applicant to be selected for funding from FHFC.
PRIOR ACTION:
None
FUNDING:
N/A
FINANCIAL IMPACT:
No City general or grant funds are being provided. Funds for the minimum local government contribution will come from the ECHFA and will only be provided if a development is selected for funding through FHFC.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
9/20/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
David Forte, Deputy City Administrator - Community Development
Marcie Whitaker, Housing Director
ATTACHMENTS:
1) Interlocal Agreement with Escambia County Housing Finance Authority for Local Government Contribution for SAIL Financing of Affordable Multifamily Developments
PRESENTATION: No end