TO: CRA Board of Commissioners
FROM: Kim N. Phan, Legal Advisor
THROUGH: Renée A. Jadusingh, Executive Director
DATE: June 8, 2022
Title
FUNDING AGREEMENT - DELRAY BEACH HOUSING AUTHORITY FOR ISLAND COVE APARTMENTS - SW 8th STREET AND SW 12th AVENUE - FOR AN AMOUNT NOT TO EXCEED $1,000,000.
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Recommended Action:
Recommendation
Approve the Funding Agreement with Delray Beach Housing Authority for Island Cove Apartments for an amount not to exceed $1,000,000, in substantially the attached form, subject to verification of legal entities.
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Background:
DELRAY BEACH HOUSING AUTHORITY - ISLAND COVE APARTMENTS - 60 AFFORDABLE HOUSING RENTAL UNITS:
In 2019, Smith & Henzy Advisory Group (“Smith & Henzy”) and Delray Beach Housing Authority (“DBHA”) formed a partnership to develop an affordable housing project, “Island Cove Apartments Project” on a site that is currently owned by DBHA and is located to the southwest of the intersection of SW 8th Street and SW 12th Avenue in Delray Beach, FL. This project consists of 60 mixed-income affordable housing rental units reserved for households making 30%-80% or less of the area median income (see Exhibit “A”) as follows:
REQUEST TO THE CRA:
To bring Island Cove Apartments to fruition, the DBHA applied to Florida Housing Finance Corporation (“FHFC”) for low-income housing tax credits in the 4th quarter of 2020. As part of the application, the DBHA must show support from the local government to satisfy the “Local Government Area of Opportunity Funding Goal” via a monetary local government contribution (“Local Contribution”). On August 14, 2020, the DBHA submitted a grant request to the CRA in an amount not to exceed One Million and 00/100 Dollars ($1,000,000.00) to satisfy the Local Contribution (see Exhibit “B”). CRA funds would be used to cover construction costs, as well as costs related to redesigning the project and infrastructure costs that are required to build new construction. On ...
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