SHIP - Affordable Housing Advisory Committee

City of Gainesville SHIP - Affordable Housing Advisory Committee Meeting AGENDA Date: Tuesday, September 27, 2022, 6:00 p.m. Location: Historic Thomas Center, Building B 302 NE 6th Avenue Gainesville, FL Jamie Bell, Mary Lou Hildreth, Cynthia Chestnut, Belinda Smith, Members: Eric McLarthy, Saeed Khan, Octavia Washington, Aymee Ginard-Cepeda, Michael Raburn, Jennifer Rivers, Reina Saco If you have a disability and need an accommodation in order to participate in this meeting, please contact the Office of Equity and Inclusion at (352) 334-5051 at least two business days in advance. TTY (Text Telephone Telecommunication Device) users please call 711 (Florida Relay Service). For Speech to Speech (STS) relay, please call 1-877-955-5334. For STS Spanish relay, please call 1- 877-955-8773. For STS French Creole relay, please call 1-877-955-8707.  Pages A. CALL TO ORDER Agenda Statement: The City of Gainesville encourages civil public speech. Disruptive behavior is not permitted during City Commission meetings. Please do not bring food, drinks, props, signs, posters, or similar materials into the Auditorium. Cheering and applause are only permitted during the Proclamations/Special Recognitions portion of the meeting. B. ROLL CALL C. ADOPTION OF THE AGENDA D. APPROVAL OF THE MINUTES D.1. Approval of Minutes for September 13, 2022 3 E. BUSINESS DISCUSSION ITEMS E.1. Ranking of Affordable Rental Housing Projects Requesting Local 6 Government Area of Opportunity Funding (B) Recommendation: The AHAC: 1) Hear a presentation from staff and both of the applicants; 2) Discuss the relative strengths and weaknesses of both applications; 3) Use the Ranking Form to rank both applications and give reasons for the rankings; 4) Recommend that the City Commission fund the highest ranked application; and 5) Authorize the Chair or another AHAC Member to present the recommendation to the City Commission at their November 17, 2022 meeting. E.2. Funding Recommendation for a State Apartments Incentives Loan 73 Project (B) Recommendation: The AHAC: 1) Hear a presentation from staff and the applicant; 2) Discuss the strengths and weaknesses of project; 3) Use the Evaluation Form to evaluate the project and give reasons for your evaluations; and 4) Recommend whether or not the City Manager should approve using ConnectFree funds to provide a Local Government Contribution to the project. F. PUBLIC COMMENT G. MEMBER COMMENT H. NEXT MEETING DATE I. ADJOURNMENT Page 2 of 111  City of Gainesville SHIP - Affordable Housing Advisory Committee Meeting MINUTES September 13, 2022, 6:00 p.m. Historic Thomas Center, Building B 306 NE 6th Avenue Gainesville, FL Members Present: Jamie Bell, Mary Lou Hildreth, Saeed Khan, Aymee Ginard-Cepeda, Michael Raburn, Reina Saco Members Absent: Cynthia Chestnut, Belinda Smith, Eric McLarthy, Octavia Washington, Jennifer Rivers _____________________________________________________________________ A. CALL TO ORDER Meeting called to order at 6:05 p.m. B. ROLL CALL C. ADOPTION OF THE AGENDA Moved by Mary Lou Hildreth Seconded by Reina Saco Motion: To adopt the agenda. Carried Unanimously 1 Page 3 of 111 D. APPROVAL OF THE MINUTES D.1 Approval of Minutes-August 9, 2022 Moved by Michael Raburn Seconded by Aymee Ginard-Cepeda Motion to approve the minutes of the August 9, 2022 AHAC meeting. Carried Unanimously E. BUSINESS DISCUSSION ITEMS E.1 Adoption of the 2022 Incentives and Recommendations Report Staff Liaison John Wachtel presented a brief introduction. The Committee discussed the report. Kali Blount and Tana Silva gave public comments. Moved by Mary Lou Hildreth Seconded by Aymee Ginard-Cepeda The Affordable Housing Advisory Committee: 1) receive a presentation from staff; 2) receive public comments; 3) adopt the 2022 Incentive and Recommendations Report; and 4) authorize staff to submit the 2022 Incentive and Recommendations Report, on behalf of the Committee, to the City Commission. Carried Unanimously E.2 Discussion of 2022 IRR Presentation to the City Commission The Chair agreed to present the item. F. PUBLIC COMMENT Tana Silva suggested that in the future, for Affordable Housing, the City consider some exceptions to the sidewalk requirements. 2 Page 4 of 111 G. MEMBER COMMENT After some discussion, the Committee agreed that for next year's IRR, the AHAC should consider including discussions about the following: 1) the possibility of a joint meeting with the County's AHAC; 2) exceptions to the sidewalk requirements for some affordable housing projects; 3) addressing the shortage of contractors and trades people; 4) increasing the City's focus on affordable home ownership; 5) more closely examining how the City reviews its regulations and processes to ensure that they do not unnecessarily increase the costs of housing; and 6) adding a housing needs section to the IRR. H. NEXT MEETING DATE September 27, 2022 I. ADJOURNMENT The Chair adjourned the meeting at 7:44 p.m. 3 Page 5 of 111  City of Gainesville Agenda Report File #: 2022-568 Agenda Date: September 27, 2022 Department: Housing & Community Development Title: Ranking of Affordable Rental Housing Projects Requesting Local Government Area of Opportunity Funding (B) Explanation: To help meet its goal to increase access to affordable housing for low- income households, the City of Gainesville wishes to fund Local Government Contributions to affordable housing development projects leveraged with federal 9% Low-Income Housing Tax Credits (LIHTC). The State of Florida LIHTC Program provides for-profit and nonprofit organizations with a dollar-for-dollar reduction in federal tax liability in exchange for: 1) the acquisition and substantial rehabilitation; 2) substantial rehabilitation; or 3) new construction of low and very low-income rental housing units. Housing tax credits can be worth millions of dollars; and receiving this funding can assist developers to build affordable rental housing in cities and counties across the State of Florida. The use of tax credits subsidizes the cost of developing housing units, thereby producing decent, safe, and affordable housing available to low- income households. The Florida Housing Finance Corporation (FHFC) administers the LIHTC Program for the State of Florida. The FHFC awards 9% LIHTCs to affordable housing projects based on a detailed and competitive application system. Part of that system awards points to projects that meet certain criteria as established by the FHFC. Those criteria include affordability, sustainability and serving an identified housing need. On November 10, 2022 the FHFC plans to issue Request For Applications (RFA) 2022- 201. In RFA 2022-201, the FHFC will identify 9% LIHTC funding goals for medium sized counties like Alachua County. Based on information presented at a July 12, 2022 FHFC Workshop, those goals will include funding 6 projects in the following categories: a) one project located near the SunRail transit project in the Tampa Bay area; b) two projects in certain mapped areas of the State; and c) three projects that qualify as Local Government Area of Opportunity (LGAO) Projects. LGAO Projects are projects where the applicant has demonstrated “a high level of Local Government interest in the project via an increased amount of Local Government contributions.” Those contributions are generally defined as cash loans or grants. Page 6 of 111 Essentially, the LGAO funding goal incentivizes a local government financial commitment. The minimum amount of the local funding commitment is $460,000.00. If a local government elects to fund a LGAO Project, RFA 2022-201 will require the local government to choose to fund only one project, regardless of the number of applications the local government may receive. As such, the City Commission can select and fund only one LGAO Project to apply for 9% LIHTC funding from the FHFC. Given the limits on the amount of State funding available, projects that meet one of the FHFC identified goals, have a much better chance of being funded by the FHFC. On July 7, 2022, the City of Gainesville published a Notice Of Funding Availability announcing that the City would accept applications for financial assistance for the development and/or rehabilitation of affordable rental housing projects. As a result, the City received applications for two affordable rental housing projects requesting LGAO Funding. At the September 27, 2022 Affordable Housing Advisory Committee (AHAC) Meeting, both of the applicants will have five minutes to present their projects to the AHAC and five minutes to answer questions from the AHAC. Following the presentations, each AHAC member will rank the applications based on the back-up provided and the presentations. The members’ rankings will be combined into an Overall AHAC Ranking. The Committee members will have an opportunity to discuss (if necessary) and vote on the Overall AHAC Ranking, which will be the Committee’s recommendation to the City Commission. On November 17, 2022, the City Commission is scheduled receive AHAC’s recommendation and make a final funding determination. Applications associated with RFA 2022-201 are due to the FHFC on December 28, 2022. If a City/County approves LGAO funding for a project that is not funded by FHFC, or for some reason is not completed, the City/County is not obligated to provide the funding to the applicant. In this case, that means that the funds would be returned to the ConnectFree Program. Strategic Connection: Fiscal Note: Page 7 of 111 Recommendation: The AHAC: 1) Hear a presentation from staff and both of the applicants; 2) Discuss the relative strengths and weaknesses of both applications; 3) Use the Ranking Form to rank both applications and give reasons for the rankings; 4) Recommend that the City Commission fund the highest ranked application; and 5) Authorize the Chair or another AHAC Member to present the recommendation to the City Commission at their November 17, 2022 meeting. Page 8 of 111 City of Gainesville Affordable Housing Advisory Committee LGAO Introduction September 27, 2022 Page 9 of 111  Business Discussion I. Introduction and Presentation of LGAO Projects II. AHAC Discussion and Ranking of LGAO Projects III. Introduction and Presentation of SAIL Project IV. AHAC Discussion of SAIL Project V. Preparation for November 17th City Commission Page 10 of 111 Affordable Rental Housing • Partnerships – Federal, State, and Local (City/County) Governments – Public and Private Sectors – For-Profit and Non-Profit • Leveraging • Government Funding Sources – Tax Credits (LIHTC), SAIL and ConnectFree Page 11 of 111 ConnectFree Program • City initiative • Raises revenue – From surtax on new connections to GRU – In unincorporated area • Primarily to subsidize new connections • Allows a portion for affordable housing – Including local contribution for 9% tax credit projects • Previous projects – Arbours at Tumblin Creek, Deer Creek, Royal Park Apartments Page 12 of 111 Tax Credit Program • Federal Program – Federal government issues tax credits to state governments • 9% (competitive) and 4% (non-competitive) – State agencies award the 9% tax credits to developers through a competitive process – Developers generally sell the tax credits to private investors to obtain funding – When the project is in service, the private investors can claim the tax credits over a 10-yr. period • Administered by the State • Leveraging Page 13 of 111 State Goals • RFA 2022-201, Medium-sized counties – 9% Tax Credits – Geographic Area of Opportunity/SADDA (2 projects) – Near the SunRail (1 Project) – Local Government Area of Opportunity (LGAO, 3 projects) – Maybe 1 or 2 next highest scoring • If funds available Page 14 of 111 LGAO • Not a geographic area • Incentivizes local financial commitment • $460,000 Loan • Fewer cities/counties • City must pick 1 (only 1) • Fewer applicants • Better odds for both the chosen applicants & the City/County • State will pick 3 Page 15 of 111 State LGAO Goals • 3 Projects per RFA 2022-201 – 2 projects submitted, but not awarded in 2019 or 2020 or 2021 • 1 project in Gainesville meets this goal – 1 project, regardless of whether it was previously submitted Page 16 of 111 AHAC Ranking Process • Must be completed tonight • Hear the 2 presentations – 5 minutes & 5 minutes for Q&A • Discuss • Rank • Give reasons • Complete forms, including reasons • Present rankings to City Commission – Thursday, November 17, 2022 Page 17 of 111 Written Evaluations • Rank the projects from 1 to 2, with 1 being the project you most want to be developed • Base your rankings on the applications provided; and the presentations & discussions at today’s AHAC meeting • Describe IN DETAIL the projects’ relative strengths & weakness • Explain and defend your rankings • Attach additional paper, if necessary Page 18 of 111  Evaluation Criteria • Number of units provided • Resident income mix • Number of units provided for persons with special needs • Location of the project (Does the location further the City’s goal of providing affordable rental housing in all areas of the City? Is the project compatible with surrounding areas? What are the nearby amenities? Are they sufficient? Will they meet the needs of the project’s tenants?) • On-site amenities (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?) • Resident services (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?) • Marketing and outreach to potential residents • Loan terms • Given the goals of RFA 2022-201, what are the chances of being chosen for funding by the State (FHFC)? • Experience of the developers Page 19 of 111 • Overall feasibility of the project Next Steps • City Commission, November 17, 2022 • Applications to State by December 28, 2022 • State decision tentatively scheduled for January 27, 2023 – If approved • Challenges, underwriting, permitting and construction typically take several years – If not approved • Funds remain in ConnectFree Program Page 20 of 111 QUESTIONS? Page 21 of 111  CITY OF GAINESVILLE State Housing Initiative Partnership Program—Affordable Housing Advisory Committee Ranking of Affordable Rental Housing Projects—ConnectFree—LGAO September 27, 2022 EVALUATION CRITERIA AND INSTRUCTIONS Rank the projects from 1 to 2, with 1 being the project you most want to be developed. Base your rankings on the applications provided to the City; and the presentations and discussion at the September 27, 2022 AHAC meeting. In the column titled “Comments,” describe IN DETAIL the relative strengths and weakness of the projects. Use this column to explain and defend your ranking of the projects. Attach additional paper, if necessary. Consider factors such as those listed below: 1. Number of units provided; 2. Resident income mix; 3. Number of units provided for persons with special needs; 4. Location of the project (Does the location further the City’s goal of providing affordable rental housing in all areas of the City? Is the project compatible with surrounding areas? What are the nearby amenities? Are they sufficient? Will they meet the needs of the project’s tenants?); 5. On-site amenities (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?); 6. Resident services; (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?); 7. Marketing and outreach to potential residents; 8. Loan terms; 9. Given the goals of RFA 2022-201, what are the chances of being chosen for funding by the State (FHFC)?; 10. Experience of the developers; and 11. Overall feasibility of the project. Page 22 of 111  CITY OF GAINESVILLE State Housing Initiative Partnership Program—Affordable Housing Advisory Committee Ranking of Affordable Rental Housing Projects—ConnectFree—LGAO September 27, 2022 Evaluator Name: Evaluator Signature: Project Rank Comments Hawthorne Heights Woodland Park, Phase 2 Page 23 of 111  # of Units Building Submission Project # of Units (when Increase in height (in Total Project Date name Developer name Project location Project type (existing) complete) # of units stories) Costs Gainesville Housing Authority, Newstar Development, LLC, Woodland Norstar Park Development USA, New July 29, 2022 Phase II LP 24 SE 19th Pl. construction 56 96 40 3 $26,966,896 National Hawthorne Community 2420 SE New July 31, 2022 Heights Renaissance Hawthorne Rd. construction 0 70 70 5 $19,480,763 Page 24 of 111  Demographic commitment Summarize affordability Project (Family or elderly; if ederly, mix using % of AMI (# of Summarize special needs units List onsite name include minimum age) units at each AMI Level) (# of units for each category) List residential programs recreational amenities Woodland Park Phase II will offer On-site recreational 5 Link Units for persons with amenities will include a special needs. “Special Needs $200K fitness Household” as defined by the path/walking trail that FHFC in 67-48.002(107) f.a.c., Woodland Park Phase II connects to the means a household consisting of will commit to providing an adjacent public park an individual or Family that is Employment Assistance (Woodland Park City 10 units for households with considered to be Homeless, a Program, Financial park), which contains a Woodland incomes up to 33% AMI; 86 survivor of Domestic Violence, a Management Program, and basketball court, Park units for households with Person with a Disability or Youth Homeownership Support baseball field and Phase II Family incomes up to 60% AMI Aging Out Of Foster Care. Program. pavilions. In terms of resident services, FHFC requires applicants to provide at least three resident service programs. National Community Renaissance will go above and beyond, and provide all five resident services listed below: Adult Literacy; Computer Community amenities Training; Daily Activities; will consist of a large Assistance with Light multipurpose 7 units for households with House Keeping, Grocery community incomes up to 33% AMI; 63 Four units will be set-aside as Shopping, and/or Laundry; room/clubhouse, a Hawthorne units for households with special needs households, as and Resident Assurance bocce ball court, and a Heights Elderly, 62 incomes up to 60% AMI defined by FHFC. Check‐In Program. community garden. Page 25 of 111  Will each unit Will each unit have a Will the project have a Will the project include any Project have a washer washer and dryer laundry room for market-rate residential units? name and dryer? hook-up? tenants? List other onsite amenities If yes, how many? On-site amenities will include a community clubhouse containing a fitness room, computer room, management office, warming kitchen and bathrooms. Units will include in-unit washer/dryers, full kitchen Woodland appliances including Park refrigerator, range, oven, Phase II Yes Yes No dishwasher and disposal. No Hawthorne Heights No Yes No No Page 26 of 111  Will the project include any Summarize nearby offsite amenities including proximity to employment centers, bus Project non-residential uses onsite? stops, parks, community centers, retail centers, pharmacies, medical services, name If yes, list those uses. financial services, and other amenities. Bus Routes – Southbound Williston Road @ SE 1st Terrace (less than 0.1 miles) Shopping/Retail – Gainesville shopping center (2.4 miles) Pharmacy/Medical Centers – Winn-Dixie Pharmacy (1.2 miles) & Shands Medical Center (2.4 miles) Parks – Woodland Park (0.0 miles) on-site, T.B. McPherson Park & Mickle Pool (1.0 miles), The project will include a Depot Park (1.0 miles), Sweet Water Preserve (1.7 miles) Woodland community clubhouse as Park described in the amenities School – Caring and Sharing Learning School (0.2 miles), Abraham Lincoln Middle School Phase II section, above. (0.9 miles) & Joseph Williams Elementary (1.3 miles) Hawthorne Heights is conveniently located near excellent health care facilities and a variety of retail stores, including the following: Walmart Supercenter (1.34 miles from the project site); UF Health Family Medicine (1.15 miles from the project site); Walgreens Pharmacy (1.15 miles from the project site); Joseph Williams Elementary (0.99 miles from the project site); Alachua County Library (0.99 miles from the project site); and Department of Community Support Services of Alachua County (0.25 miles from the project site). Residents will also Hawthorne have easy access to public transportation - the site is surrounded by 8 bus stops within a Heights No quarter mile. The closest one is directly in front of the project site. Page 27 of 111  Summarize proposed Loan Priority 1 Previously Family demographic that Completed 1st Step Meeting with Project Terms, including interest project per submitted in 2019 qualifies for Geographic Area of the City’s Department of name rate, and timeframes RFA 2022-201 or 2020 or 2021 Opportunity or SADDA Sustainable Development? 1% annual interest rate for an 18-year loan with a balloon payment at loan termination, and a 30-year amortization period. The entire balance, Woodland including principal and interest, Park shall be paid in full at the end Phase II of the 18-year period Yes Yes No Yes 1% (interest-only payments during construction); Term: 20- Hawthorne year OR 3% Residual Heights Receipt Yes No No Yes Page 28 of 111 Page 29 of 111 Page 30 of 111 Page 31 of 111 Page 32 of 111 Page 33 of 111  REQUEST FOR LOCAL GOVERNMENT CONTRIBUTION PER RFA 2022/201 Developer: National Community Renaissance Project Name: Hawthorne Heights City of Gainesville Housing & Community Development August 1, 2022 Page 34 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  ORGANIZATION INFORMATION NATIONAL COMMUNITY RENAISSANCE A national nonprofit community development corporation dedicated to breaking the cycle of generational poverty by implementing programs that empower individuals and change communities. “It’s a launching pad. Not a landing pad.” Page 35 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  ORGANIZATION INFORMATION • Founded in 1992 • Employees: 450 • Total Units: 10,000 • Total Residents: 30,000 • Nation’s 4th Largest Nonprofit Affordable Housing Developer • Full-Service Organization – Acquisitions – Planning & Development – Construction – Property Management – Compliance/Asset Management – Social Services Page 36 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  PROJECT NAME & LOCATION Hawthorne Heights 2420 SE Hawthorne Road, Gainesville Page 37 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  PROJECT INFORMATION NEW CONSTRUCTION OF 70 SENIOR RESIDENTIAL UNITS (62+) ON 2.91 ACRES • 58 one-bedrooms (avg 650 sf) • 12 two-bedrooms (avg 800 sf) 5 STORY L-SHAPED BUILDING 83 PARKING SPACES • 1.19 spaces per unit Page 38 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  ON-SITE AMENITIES 5,000 SF OF AMENITY & SERVICE SPACE • Community Room • Bocce Ball Court • Community Garden Page 39 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  NEARBY AMENITIES Hawthorne Heights is conveniently located near excellent health care facilities and a variety of retail stores, including: • Walmart Supercenter: 1.34 miles from the project site; • UF Health Family Medicine: 1.15 miles from the project site; • Walgreens Pharmacy: 1.15 miles from the project site; • Joseph Williams Elementary: 0.99 miles from the project site; • Alachua County Library: 0.99 miles from the project site; • Department of Community Support Services of Alachua County: 0.25 miles from the project site. Residents will also have easy access to public transportation - the site is surrounded by 8 bus stops within ¼ mile. The closest one is directly in front of the project site. Page 40 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  RESIDENT SERVICES FHFC requires applicants to provide at least three resident service programs. National Community Renaissance will go above and beyond, and provide all five resident services listed below: • Adult Literacy • Computer Training • Daily Activities • Assistance with Light Housing Keeping, Grocery Shopping, and/or Laundry • Resident Assurance Check-In Program Page 41 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  PROPOSED UNIT MIX AND INCOME LIMITS Unit # Units % AMI 2022 UA Net Rent Income 33% AMI 60% AMI Type LIHTC Limit Rent 1 Person $18,942 $34,300 1BR/1BA 6 33% $507 $120 $387 2 Person $21,648 $39,360 1BR/1BA 52 60% $922 $120 $802 3 Person $24,354 $44,280 2BR/2BA 1 33% $608 $140 $468 4 Person $27,027 $49,140 2BR/2BA 11 60% $1,107 $140 $967 *50% of the 33% AMI units will be restricted to Special Needs Households as defined by FHFC Page 42 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  OTHER PROJECT FUNDING Sources Permanent Loan $3,400,000 Tax Credit Equity $14,958,504 Developer Contribution $662,259 City of Gainesville LGAO $460,000 (2% of total project cost) Total $19,480,763 Uses Land $425,000 Construction Costs $12,514,240 Soft Costs $3,011,830 Financing Costs $918,482 Developer Fee $2,611,211 Total $19,480,763 *Numbers are based on preliminary underwriting and subject to change Page 43 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  COMMUNITY BENEFITS 1. ADDRESS A COMMUNITY NEED: Significant and increasing need for senior affordable housing 2. DELIVERS IMPROVEMENTS: on-site amenities and off-site infrastructure improvements​ 3. CATALYTIC REDEVELOPMENT: Provides financial reinvestment to the neighborhood 4. PROVIDES JOBS: Additional direct and indirect jobs in construction and operations 5. INCREASED SALES TAX REVENUE: generated by the residents​ Page 44 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  OTHER RELEVANT INFORMATION • Property Management: National Community Renaissance will hire an experienced third-party agent that will be responsible for leasing, marketing and managing the property. Given the current affordable housing shortage in Gainesville, we expect units to be fully leased within 3 months. • First Step Meeting: National Community Renaissance has completed the First Step Meeting with the Department of Sustainable Development. Notes from the meeting have been included in our application. • Affordable Housing Crisis: According to the Joint Center for Housing Studies, Gainesville has the highest housing cost-burden rate for renters out of all the metropolitan areas in Florida, at 65%. This beats out large cities like Miami, Orlando and Jacksonville. Page 45 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  Questions? Thank you! Ariana Brendle abrendle@nationalcore.org Current portfolio: Current Portfolio Fairview Heights Video: Fairview Heights Page 46 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  BLANK Page 47 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities  PROPOSED LOAN TERMS Option 1 Total Loan Amount: $460,000 Interest Rate: 1% (interest-only payments during the construction) Term: 20-year Option 2 Total Loan Amount: $460,000 Interest Rate: 3% Residual Receipt Page 48 of 111 www.nationalcore.org | www.hthf.org Together, we transform lives and communities Page 49 of 111 Page 50 of 111 Page 51 of 111 Page 52 of 111 Page 53 of 111  CONNECTFREE PROGRAM FUNDING REQUEST CO-DEVELOPERS: GAINESVILLE HOUSING AUTHORITY (GHA) & NORSTAR DEVELOPMENT USA, LP PROJECT NAME: WOODLAND PARK PHASE II CITY OF GAINESVILLE AFFORDABLE HOUSING ADVISORY COMMITTEE SEPTEMBER 27, 2022 Page 54 of 111  ORGANIZATION INFORMATION Name: Gainesville Housing Authority (GHA) Location: Gainesville, FL Type of Organization: Not For Profit & Governmental Agency Experience: GHA – over 9 years of development experience Co-developer Norstar – over 24 years of experience developing affordable housing Mission: Function as a performance-driven, customer focused sustainable business; advocating for, preserving and developing quality affordable housing and self-sufficiency opportunities. Page 55 of 111  LOCAL GOVERNMENT AREA OF OPPORTUNITY (LGAO) • FHFC typically funds 8-10 Medium County 9% tax credit applications per year. However, in 2022 less developments will be funded due to emergency CHIRP funding provided by FHFC to developments awarded in 2019/2020 that yet to close. • For 2022, FHFC has established goals to fund three applicants that have LGAO funding commitments. These goals are further defined as: • Two LGAO applicants that previously received LGAO in (2019 or 2020 or 2021) but did not receive a tax credit award • One applicant that submits and receives LGAO in 2022 • With a 2022 LGAO commitment from the City of Gainesville, Woodland Park Phase II will qualify for all three LGAO goals Page 56 of 111  PROJECT LOCATION Project Location: 24 Southeast 19th Place Page 57 of 111  PROJECT TYPE Construction: New Construction (Wood-Frame) Building Type: Garden – 3 stories Total Units – 96 units: • 1 Bed / 1 bath – 24units • 2 Bed / 2 bath – 44 units • 3 Bed / 2 bath – 28 units Page 58 of 111 PROJECT DESIGN: SITE PLAN Page 59 of 111 PROJECT DESIGN: DRAWINGS Page 60 of 111  NEARBY AMENITIES/SERVICES Bus Routes – Southbound Williston Road @ SE 1st Terrace (less than 0.1 miles) Shopping/Retail – Gainesville shopping center (2.4 miles) Pharmacy/Medical Centers – Winn-Dixie Pharmacy (1.2 miles) & Shands Medical Center (2.4 miles) Parks – Woodland Park (0.0 miles) on-site, T.B. McPherson Park & Mickle Pool (1.0 miles), Depot Park (1.0 miles), Sweet Water Preserve (1.7 miles) School – Caring and Sharing Learning School (0.2 miles), Abraham Lincoln Middle School (0.9 miles) & Joseph Williams Elementary (1.3 miles) Page 61 of 111  ON-SITE AMENITIES Recreational – Woodland Park (city public park) is located adjacent to Woodland Park Phase II and contains a basketball court, baseball field and pavilions On-site clubhouse – will contain a fitness room, computer room, management office, warming kitchen and bathrooms Appliances – in unit washer/dryers, full kitchen appliances including refrigerator, range, oven, dishwasher and disposal Walking Paths – Woodland Park Phase II will include a $200K fitness path/walking trail that connects to the adjacent public park Boys & Girls Club – another $200k in City funding is proposed to update the Boys & Girls Club as well as other park improvements Page 62 of 111  RESIDENT SERVICES • After School Program for Children • Employment Assistance Program • Financial Management Program • Homeownership Opportunities • Elite Force, Job Training Center Page 63 of 111  RESIDENT INCOME MIX Income Mix: • 33% AMI Units – 10 units • 60% AMI Units – 86 units • Total Units – 96 units Page 64 of 111  SPECIAL NEEDS UNIT SET-ASIDES Five of Woodland Park Phase II’s Extremely Low Income units will be set-aside for persons with special needs. This population includes: • Frail elders • Youth aging out of foster care • Homeless • Persons with disabilities Page 65 of 111  MONTHLY RENT LIMITS Maximum HUD Rent Limit by Number of Bedrooms in Unit: Percentage 1 2 3 Category Bedroom Bedroom Bedroom (AMI) 33% $507 $688 $702 60% $922 $1,107 $1,278 *Assumptions do not include Utility Allowance Page 66 of 111  OTHER PROJECT INFORMATION Similar Completed Projects: The Grove at Sweetwater Preserve • New Construction of 96 Units • Completed Summer of 2020 Page 67 of 111  WOODLAND PARK II ADVANTAGES • The City of Gainesville has funded LGAO to Woodland Park II for the past two years in a row (2020 & 2021). • Woodland Park II will qualify for all 3 LGAO goals with an award from the City in 2022. • City has committed additional funds to Woodland Park through the Parks & Recreation/Wild Spaces program ($400K total) Page 68 of 111  PROPOSED LOAN TERMS Proposed Loan Terms: • 1% annual interest rate for an 18-year loan with a balloon payment at loan termination, and a 30-year amortization period. The entire balance, including principal and interest, shall be paid in full at the end of the 18- year period. Page 69 of 111  DEVELOPMENT APPROVALS • Tax credit application submittal 12/28/2022 • Tax credit application approval 3/1/2023* • Building design and site plan approval 11/1/2023 • Financial closing 11/30/2023 • Construction start 12/1/2023 • Complete construction 3/1/2025 *Preliminary Approval. Subject to litigation under FL code Page 70 of 111  PROJECT FUNDING • Total Project Units – 96 units • Total Project Costs - $26,966,896 • ConnectFree Funding Request - $460,000 • Total Project Sources • Permanent Loan - $7,600,000 • Connectfree Funding - $460,000 • Tax Credit Equity - $15,723,428 • Deferred Fee - $3,183,468 Page 71 of 111 QUESTIONS? Page 72 of 111  City of Gainesville Agenda Report File #: 2022-569 Agenda Date: September 27, 2022 Department: Housing & Community Development Title: Funding Recommendation for a State Apartments Incentives Loan Project (B) Explanation: To help meet its goal to increase access to affordable housing for low- income households, the City of Gainesville wishes to fund Local Government Contributions to affordable housing development projects leveraged with the State of Florida’s State Apartment Incentive Loan (SAIL) Program funding. Through the SAIL Program, the State provides low-interest loans on a competitive basis to affordable housing developers each year. This money often serves to bridge the gap between the project’s primary financing and the total cost of the project. SAIL dollars are available to organizations that propose the construction or substantial rehabilitation of multifamily units affordable to low income individuals and families. The use of SAIL loans subsidizes the cost of developing housing units, thereby producing decent, safe and affordable housing available to low-income households. In most cases, the SAIL loan covers only a portion of the project’s total development cost and is used in conjunction with other state and federal programs, including 4% Low Income Housing Tax Credits. Since these loans can be worth millions of dollars, receiving this funding can determine whether or not an affordable housing project is developed in cities/counties across the State of Florida. The Florida Housing Finance Corporation (FHFC) is essentially a department of the State of Florida. The FHFC administers the SAIL Program and awards SAIL Program loans to affordable housing projects based on a detailed competitive application system. Part of that system incentivizes projects that meet certain criteria as established by the FHFC. Those criteria include affordability, sustainability and serving an identified housing need. In addition, the FHFC monitors the developments for compliance with program requirements. One of the criteria the FHFC reviews is the Local Government Contribution (LGC). Technically, proposed projects can apply for a SAIL Loan without a LGC. However, given the competitive environment for such funding, applications that do not include a written commitment for a minimum LGC are unlikely to be approved. Page 73 of 111 For medium size counties, including Alachua County, the minimum LGC is $37,500. While this is a small contribution, compared to the overall cost of a project, it demonstrates the local government’s commitment to providing affordable housing. The City has budgeted funds within the ConnectFree Program for a LGC grant. On July 7, 2022, the City of Gainesville published a Notice Of Funding Availability announcing that the City would accept applications for financial assistance for the development and/or rehabilitation of affordable rental housing projects. Subsequently, the City received one application for a LGC associated with an affordable rental housing project requesting SAIL Funding. That application is from the Gainesville Housing Authority (GHA) and their development partners for Woodland Park, Phase 2. The GHA has also applied to the City for Local Government Area of Opportunity (LGAO) designation and funding for Woodland Park, Phase 2. However, FHFC rules do not allow projects to receive funding from both SAIL and LGAO. Therefore, if both the City and the State approved funding for both of GHA’s applications (SAIL and LGAO), the GHA could accept only one, and would be required to decline the other. The GHA has communicated to the City that LGAO funding is their “preferred route to finance” Woodland Park, Phase 2, and that they “are treating the SAIL application as a backup plan.” Although these projects share the same name and, generally, the same location, there are some differences. Those differences are detailed in the attached back-up information, and include the number of units (144 for the SAIL project, and 96 for the LGAO project), the development footprint (the SAIL project is larger), and the total development costs ($39,304,709 for the SAIL project, and $26,966,896 for the LGAO project). Perhaps the most important difference between the projects is that the SAIL project budget currently includes a $4.5 million financing gap. GHA is currently exploring financing options to fill that gap. FHFC will not approve a project with a financing gap, even with a LGC. At the September 27, 2022 Affordable Housing Advisory Committee (AHAC) Meeting, the applicant will have five minutes to present its project to the AHAC and five minutes to answer questions from the AHAC. Following the presentation, each AHAC member will evaluate the project based on the back-up provided and the presentation. The members’ evaluations will be combined into an Overall AHAC Funding Recommendation. The Committee members will have an opportunity to discuss (if necessary) and vote on the Overall AHAC Funding Recommendation, which will be the Committee’s recommendation to the City Manager. After receiving the AHAC Recommendation, the City Manager will make a final funding determination. This cycle of SAIL applications are due to the FHFC on December 29, 2022. If a City/County approves a LGC for a project that is not funded by FHFC, or for Page 74 of 111 some reason is not completed, the City/County is not obligated to pay the grant to the applicant. In this case, that means that the funds would be returned to the ConnectFree Program. Strategic Connection: Fiscal Note: Recommendation: The AHAC: 1) Hear a presentation from staff and the applicant; 2) Discuss the strengths and weaknesses of project; 3) Use the Evaluation Form to evaluate the project and give reasons for your evaluations; and 4) Recommend whether or not the City Manager should approve using ConnectFree funds to provide a Local Government Contribution to the project. Page 75 of 111 City of Gainesville Affordable Housing Advisory Committee SAIL Introduction September 27, 2022 Page 76 of 111 SAIL Program • State Apartment Incentive Loan • Leveraging/Partnering – Federal, State & City Contributions • Minimum City Contribution – $37,500 per project (grant) • Applications are unlikely to receive FHFC approval without City funding commitment • City funding payment is contingent on State approval & project completion Page 77 of 111 SAIL Program • State process is highly competitive – Minimum of 30 units/project – $3,000 non-refundable application fee – Most applications will not be funded • State can, but typically does not, fund more than 1 per county Page 78 of 111 1 Application Received • Woodland Park, Phase 2 (WPP2) – Applicant is Gainesville Housing Authority (GHA) & development partners • State won’t fund WPP2 for both LGAO & SAIL • If necessary, GHA would need to accept 1 & decline 1 • Unused funds remain in ConnectFree Program Page 79 of 111 Differences Variable LGAO SAIL Funding Gap -0- $4,500,000 Project Cost $26,966,896 $39,304,709 # of Units 96 144 Size 10.3 acres >10.3 acres NOTE 1: The SAIL project is not viable and FHFC will not fund, unless $4.5 million is identified prior to application submittal. The deadline is December 29, 2022. NOTE 2: Approval of the LGC for SAIL, does not commit the City to contribute to the reduction of the $4.5 million funding gap. Page 80 of 111  Evaluation Criteria • Number of units provided • Resident income mix • Number of units provided for persons with special needs • Location of the project (Does the location further the City’s goal of providing affordable rental housing in all areas of the City? Is the project compatible with surrounding areas? What are the nearby amenities? Are they sufficient? Will they meet the needs of the project’s tenants?) • On-site amenities (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?) • Resident services (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?) • Marketing and outreach to potential residents • Given the goals of FHFC, what are the chances of being chosen for funding? • Experience of the developers • Overall feasibility of the project • Benefit and risk to the City Page 81 of 111  Evaluation Criteria • Overall feasibility of the project – Odds of receiving FHFC funding would be greater if there were no funding gap – Still time to identify a source to close the gap • Benefit and risk to the City – Benefit is a slight increase in odds of receiving some type of funding – No risk • No other applicants • If not approved by FHFC & built, funds stay w/ConnectFree • Approval of the LGC for SAIL, does not commit the City to contribute to the reduction of the $4.5 million funding gap Page 82 of 111 AHAC Evaluation • Must be completed tonight • Hear the presentation – 5 minutes & 5 minutes for Q&A • Discuss • Evaluate • Give reasons • Complete forms, including reasons • Recommend whether or not to fund Page 83 of 111 Next Steps • AHAC recommendation and staff analysis to City Manager • City Manager will make final funding determination • Application to State due December 29, 2022 • State decision tentatively scheduled for January 27, 2023 – If approved • Challenges, underwriting, permitting and construction typically take several years – If not approved • Funds remain in ConnectFree Program Page 84 of 111 QUESTIONS? Page 85 of 111 Page 86 of 111 Page 87 of 111 Page 88 of 111 Page 89 of 111 Page 90 of 111 Wachtel, John S. From: Jotform <noreply@jotform.com> Sent: Friday, August 12, 2022 2:40 PM To: Wachtel, John S. Subject: [EXTERNAL] Re: Local Government Contribution for RFA 2022-205 (SAIL) Local Government Contribution for RFA 2022-205 (SAIL) Project name Woodland Park Phase II Developer name Newstar Development, LLC Project location 24 SE 19th Place Project type New construction # of Units (existing) 76 # of Units (when 144 complete) Increase in # of units 68 Building height (in 3 stories) Total Project Costs $39,304,709 Demographic commitment (Family or elderly; if elderly, Family include minimum age) Summarize Income Mix: affordability mix using % of AMI (# 22% AMI - 3 units of units at each AMI 33% AMI - 15 units Level) 60% AMI - 126 units Total units - 144 Summarize special Ten of Woodland Park Phase II’s Extremely Low needs units (# of Income units will be set-aside for persons with units for each special needs. This population includes: frail elders, category) youth aging out of foster care, homeless, persons with a disability. List residential After school program for children, employment programs assistance, financial management, homeownership opportunities, elite force job training center. 1 Page 91 of 111 List on-site Recreational – Woodland Park (city public park) is recreational located adjacent to Woodland Park Phase II and amenities contains a basketball court, baseball field and pavilions On-site clubhouse – will contain a fitness room, computer room, management office, warming kitchen and bathrooms Walking Paths – Woodland Park Phase II will include a $200K fitness path/walking trail that connects to the adjacent public park Boys & Girls Club – located within Woodland Park Will each unit have a Yes washer and dryer? Will each unit have a washer and dryer Yes hook-up? Will the project have a laundry room for No tenants? List other on-site Appliances – in unit washer/dryers, full kitchen amenities appliances including refrigerator, range, oven, dishwasher and disposal Will the project include any market- No rate residential units? If yes, how many? Will the project include any non- residential uses on- No site? If yes, list those uses. Summarize nearby Bus Routes – Southbound Williston Road @ SE 1st offsite amenities Terrace (less than 0.1 miles) including proximity Shopping/Retail – Gainesville shopping center (2.4 to employment miles) centers, bus stops, Pharmacy/Medical Centers – Winn-Dixie Pharmacy parks, community (1.2 miles) & Shands Medical Center (2.4 miles) centers, retail Parks – Woodland Park (0.0 miles) on-site, T.B. centers, pharmacies, McPherson Park & Mickle Pool (1.0 miles), Depot medical services, Park (1.0 miles), Sweet Water Preserve (1.7 miles) financial services, School – Caring and Sharing Learning School (0.2 and other amenities. miles), Abraham Lincoln Middle School (0.9 miles) & Joseph Williams Elementary (1.3 miles) Completed 1st Step Yes Meeting with the 2 Page 92 of 111 city’s Department of Sustainable Development? You can edit this submission and view all your submissions easily. 3 Page 93 of 111  CONNECTFREE PROGRAM FUNDING REQUEST CO-DEVELOPERS: GAINESVILLE HOUSING AUTHORITY (GHA) & NORSTAR DEVELOPMENT USA, LP PROJECT NAME: WOODLAND PARK PHASE II CITY OF GAINESVILLE AFFORDABLE HOUSING ADVISORY COMMITTEE SEPTEMBER 27, 2022 Page 94 of 111  ORGANIZATION INFORMATION Name: Gainesville Housing Authority (GHA) Location: Gainesville, FL Type of Organization: Not For Profit & Governmental Agency Experience: GHA – over 9 years of development experience Co-developer Norstar – over 24 years of experience developing affordable housing Mission: Function as a performance-driven, customer focused sustainable business; advocating for, preserving and developing quality affordable housing and self-sufficiency opportunities. Page 95 of 111  PROJECT LOCATION Project Location: 24 Southeast 19th Place Page 96 of 111  PROJECT TYPE Construction: New Construction (Wood-Frame) Building Type: Garden – 3 stories Total Units – 144 units: • 1 Bed / 1 bath – 40 units • 2 Bed / 2 bath – 64 units • 3 Bed / 2 bath – 40 units Page 97 of 111 PROJECT DESIGN: SITE PLAN Page 98 of 111 PROJECT DESIGN: DRAWINGS Page 99 of 111  NEARBY AMENITIES/SERVICES Bus Routes – Southbound Williston Road @ SE 1st Terrace (less than 0.1 miles) Shopping/Retail – Gainesville shopping center (2.4 miles) Pharmacy/Medical Centers – Winn-Dixie Pharmacy (1.2 miles) & Shands Medical Center (2.4 miles) Parks – Woodland Park (0.0 miles) on-site, T.B. McPherson Park & Mickle Pool (1.0 miles), Depot Park (1.0 miles), Sweet Water Preserve (1.7 miles) School – Caring and Sharing Learning School (0.2 miles), Abraham Lincoln Middle School (0.9 miles) & Joseph Williams Elementary (1.3 miles) Page 100 of 111  ON-SITE AMENITIES Recreational – Woodland Park (city public park) is located adjacent to Woodland Park Phase II and contains a basketball court, baseball field and pavilions On-site clubhouse – will contain a fitness room, computer room, management office, warming kitchen and bathrooms Appliances – in unit washer/dryers, full kitchen appliances including refrigerator, range, oven, dishwasher and disposal Walking Paths – Woodland Park Phase II will include a $200K fitness path/walking trail that connects to the adjacent public park Boys & Girls Club – located within Woodland Park Page 101 of 111  RESIDENT SERVICES • After School Program for Children • Employment Assistance Program • Financial Management Program • Homeownership Opportunities • Elite Force, Job Training Center Page 102 of 111  RESIDENT INCOME MIX Income Mix: • 22% AMI Units – 3 units • 33% AMI Units – 15 units • 60% AMI Units – 126 units • Total Units – 144 units Page 103 of 111  SPECIAL NEEDS UNIT SET-ASIDES Ten of Woodland Park Phase II’s Extremely Low Income units will be set-aside for persons with special needs. This population includes: • Frail elders • Youth aging out of foster care • Homeless • Persons with disabilities Page 104 of 111  MONTHLY RENT LIMITS Maximum HUD Rent Limit by Number of Bedrooms in Unit: Percentage 1 2 3 Category Bedroom Bedroom Bedroom (AMI) 33% $507 $688 $702 60% $922 $1,107 $1,278 *Assumptions do not include Utility Allowance Page 105 of 111  OTHER PROJECT INFORMATION Similar Completed Projects: The Grove at Sweetwater Preserve • New Construction of 96 Units • Completed Summer of 2020 Page 106 of 111  WOODLAND PARK II ADVANTAGES • The City of Gainesville has funded LGAO to Woodland Park II for the past two years in a row (2020 & 2021). • Funding Woodland Park II with the minimum commitment of $37,500 will allow this project to expand in scope and units within the 4% SAIL RFA. • Potentially two shots at winning an FHFC award with either 9% tax credits or 4% tax credits. Page 107 of 111  DEVELOPMENT APPROVALS • Tax credit application submittal 12/29/2022 • Tax credit application approval 3/1/2023* • Building design and site plan approval 11/1/2023 • Financial closing 11/30/2023 • Construction start 12/1/2023 • Complete construction 3/1/2025 *Preliminary Approval. Subject to litigation under FL code Page 108 of 111  PROJECT FUNDING • Total Project Units – 144 units • Total Project Costs - $39,304,709 • Total Project Sources • Permanent Loan - $12,200,000 • City of Gainesville Funding - $37,500 • Tax Credit Equity - $13,379,055 • SAIL/ELI Loan - $6,600,000 • National Housing Trust Funds - $597,900 • ARPA Funds from FHFC/City - $4,500,000 • Deferred Fee - $1,990,254 Page 109 of 111 QUESTIONS? Page 110 of 111  CITY OF GAINESVILLE State Housing Initiative Partnership Program—Affordable Housing Advisory Committee Evaluation of Affordable Rental Housing Projects—ConnectFree—SAIL September 27, 2022 Evaluator Name: Evaluator Signature: Recommend whether or not the City should fund each project. Base your evaluations on the applications provided to the City; and the presentations and discussion at the September 27, 2022 AHAC meeting. In the column titled “Comments,” describe in detail the strengths and weakness of each project. Use this column to explain and defend your funding recommendations for each project. Consider factors such as those listed below: 1. Number of units provided; 2. Resident income mix; 3. Number of units provided for persons with special needs; 4. Location of the project (Does the location further the City’s goal of providing affordable rental housing in all areas of the City? Is the project compatible with surrounding areas? What are the nearby amenities? Are they sufficient? Will they meet the needs of the project’s tenants?); 5. On-site amenities (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?); 6. Resident services; (What are they? Are they sufficient? Will they meet the needs of the project’s tenants?); 7. Marketing and outreach to potential residents; 8. Odds of being chosen for funding by the Florida Housing Finance Corporation (consider the Goals stated in RFA 2022-205); 9. Experience of the developers; and 10. Overall feasibility of the project. Project Funding Comments Recommendation (Yes or No) Woodland Park, Phase 2 Page 111 of 111