TO: CRA Board of Commissioners
FROM: Renée A. Jadusingh, Executive Director
DATE: September 29, 2020
Title
LETTER OF SUPPORT FOR DELRAY BEACH HOUSING AUTHORITY FOR ISLAND COVE APARTMENTS
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Recommended Action:
Recommendation
Authorize the Executive Director to execute the Florida Finance Corporation - Local Government Verification of Contribution - Grant Form to support the Delray Beach Housing Authority’s affordable housing project - “Island Cove Apartments”.
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Background:
DELRAY BEACH HOUSING AUTHORITY - ISLAND COVE APARTMENTS - 54 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” 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 54 mixed-income affordable housing rental units reserved for households making 30%-80% or less of the area median income (see Exhibit “A”) as follows:
To bring Island Cove Apartments to fruition, the DBHA intends to apply to Florida Housing Finance Corporation (“FHFC”) for 9% 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”). The winners will be selected in the Spring of 2021. If Island Cove Apartments receives an allocation of 9% Tax Credits, we would begin construction on the project in late 2021 or early 2022.
REQUEST TO THE CRA:
On August 14, 2020, the DBHA submitted a grant request for the Delray Beach Community Redevelopment Agency in an amount not to exceed $1,000,000 to satisfy the Local Contribution (see Exhibit “B”). CRA funds would be used to cover construction costs, as well...
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