SHIP - Affordable Housing Advisory Committee

City of Gainesville SHIP - Affordable Housing Advisory Committee Meeting AGENDA Date: Tuesday, August 1, 2023, 6:00 p.m. Location: Historic Thomas Center, Building B 306 NE 6th Avenue Gainesville, FL Jamie Bell, Aymee Ginard-Cepeda, Mary Lou Hildreth, Saeed Khan, Members: Michael Raburn, Reina Saco, Fred Schilffarth, Belinda Smith, Octavia Washington Alternate: Cynthia Chestnut 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 and Advisory Board meetings. Please do not bring food, drinks, props, signs, posters, or similar materials into the meeting room. B. ADOPTION OF THE AGENDA C. APPROVAL OF THE MINUTES D. BUSINESS DISCUSSION ITEMS 2023-744 Inclusionary Zoning Update (NB) 4 Department: Housing & Community Development Description: The Department of Sustainable Development will provide an update and answer questions regarding the status of the City’s proposed Inclusionary Zoning Ordinance. Fiscal Note: N/A Recommendation: The Affordable Housing Advisory Committee hear an update from the Department of Sustainable Development regarding the status of the City’s proposed Inclusionary Zoning ordinance. 2023-670 Funding Recommendation for Local Government Area of 5 Opportunity Project (B) Department: Housing & Community Development Description: AHAC is to review an affordable rental housing project and recommend whether or not the City Commission should fund a Local Government Contribution to the project. Fiscal Note: For Fiscal Year 2022-23, the City has budgeted $460,000.00 of ConnectFree Program revenue for a Local Government Contribution to a LGAO project. Recommendation: The AHAC: 1) hear a presentation from staff and the applicant; 2) discuss the strengths and weaknesses of the project; 3) use the Evaluation Form to evaluate the project; 4) recommend that the City Commission either fund or not fund the project; and 5) authorize the Chair or another AHAC Member to present the recommendation to the City Commission at their August 24, 2023 General Policy Committee Meeting. E. PUBLIC COMMENT Page 2 of 66 F. MEMBER COMMENT G. NEXT MEETING DATE H. ADJOURNMENT Page 3 of 66  City of Gainesville Agenda Item Report File Number: 2023-744 Agenda Date: August 1, 2023 Department: Housing & Community Development Title: 2023-744 Inclusionary Zoning Update (NB) Department: Housing & Community Development Description: The Department of Sustainable Development will provide an update and answer questions regarding the status of the City’s proposed Inclusionary Zoning Ordinance. Fiscal Note: N/A Explanation: As requested by the Affordable Housing Advisory Committee at its June 13, 2023 meeting, the Department of Sustainable Development will provide an update and answer questions regarding the status of the City’s proposed Inclusionary Zoning ordinance. Strategic Connection: ☒ Goal 1: Equitable Community ☐ Goal 2: More Sustainable Community ☒ Goal 3: A Great Place to Live and Experience ☐ Goal 4: Resilient Local Economy ☐ Goal 5: “Best in Class” Neighbor Services Recommendation: The Affordable Housing Advisory Committee hear an update from the Department of Sustainable Development regarding the status of the City’s proposed Inclusionary Zoning ordinance. Page 4 of 66  City of Gainesville Agenda Item Report File Number: 2023-670 Agenda Date: August 1, 2023 Department: Housing & Community Development Title: 2023-670 Funding Recommendation for Local Government Area of Opportunity Project (B) Department: Housing & Community Development Description: AHAC is to review an affordable rental housing project and recommend whether or not the City Commission should fund a Local Government Contribution to the project. Fiscal Note: For Fiscal Year 2022-23, the City has budgeted $460,000.00 of ConnectFree Program revenue for a Local Government Contribution to a LGAO project. Explanation: To help meet its goal to increase access to affordable housing for income qualified 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 the following activities: 1. acquisition and substantial rehabilitation of low and very low-income rental housing units; 2. substantial rehabilitation of low and very low-income rental housing units; 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. Page 5 of 66 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 highly 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 July 7, 2023 the FHFC issued Request For Applications (RFA) 2023-201. In RFA 2023-201, the FHFC identified 9% LIHTC funding goals for medium sized counties like Alachua County. Given the limits on the amount of State funding available, projects that meet one of the FHFC’s goals, have a much better chance of being funded by the FHFC. The goals identified in RFA 2023-201 include funding projects in the following categories:  one project located near the SunRail transit project in the Tampa Bay area;  three projects in certain mapped areas of the State; and  six projects that qualify as Local Government Area of Opportunity (LGAO) Projects. LGAO Projects are developments 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. Essentially, the LGAO funding goal incentivizes a local government financial commitment known as a Local Government Contribution (LGC). For local governments in Alachua County, the minimum amount of the local funding commitment is $460,000.00. Additionally, if a local government elects to fund a LGAO Project, RFA 2023-201 will require the local government to choose to fund only one project, regardless of the number of applications the local government may receive. On June 14, 2023, 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 one application for an affordable rental housing project requesting LGAO Funding. At the August 1, 2023 Affordable Housing Advisory Committee (AHAC) Meeting, the applicant will have ten minutes to present their project to the AHAC and ten minutes to answer questions from the AHAC. After the applicant has presented their project and answered the Committee’s questions, the AHAC will have an opportunity to discuss the project and the Committee’s funding recommendation to the City Commission. The Committee shall base its recommendation on the back-up provided, and on the presentation and discussion at the AHAC meeting. Each AHAC member must document and justify their evaluation on the form provided. At the August 24, 2023 General Policy Committee Meeting, the AHAC is scheduled to present its funding recommendation to the City Commission. After receiving the AHAC’s recommendation, the City Commission will make a final funding determination. Page 6 of 66 Applications associated with RFA 2023-201 are due to the FHFC on September 12, 2023. If a City/County approves a LGC 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 their original source, which is the City’s ConnectFree Program. Strategic Connection: ☐ Goal 1: Equitable Community ☐ Goal 2: More Sustainable Community ☒ Goal 3: A Great Place to Live and Experience ☐ Goal 4: Resilient Local Economy ☐ Goal 5: “Best in Class” Neighbor Services Recommendation: The AHAC: 1) hear a presentation from staff and the applicant; 2) discuss the strengths and weaknesses of the project; 3) use the Evaluation Form to evaluate the project; 4) recommend that the City Commission either fund or not fund the project; and 5) authorize the Chair or another AHAC Member to present the recommendation to the City Commission at their August 24, 2023 General Policy Committee Meeting. Page 7 of 66  2023-670A City of Gainesville Affordable Housing Advisory Committee LGAO Introduction August 1, 2023 Page 8 of 66  Business Discussion I. Introduction (5 minutes) II. Presentation of Project (10 minutes, Applicant) III. AHAC Questions for Applicant (10 minutes) IV. AHAC Discussion and Recommendation V. Preparation for August 24 GPC Meeting Page 9 of 66 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 10 of 66 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 11 of 66 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 highly detailed, expensive, and 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 12 of 66 State Goals • RFA 2023-201, Medium-sized counties – 9% Tax Credits – Geographic Area of Opportunity/SADDA (3 projects) – Near the SunRail (1 Project) – Local Government Area of Opportunity (LGAO, 6 projects) – Maybe 1 or 2 next highest scoring • If funds available Page 13 of 66 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 6 – Preference for projects with continuous local government support since 2021 or earlier Page 14 of 66 AHAC Ranking Process • Must be completed tonight • Hear the presentation – 10 minutes & 10 minutes for Q&A • Discuss and Recommend • Give reasons • Complete forms, including reasons • Present rankings to City Commission – Thursday, August 24, 2023 Page 15 of 66 Written Evaluations • Base your evaluation on the application provided; and the presentation & discussion at today’s AHAC meeting • Describe IN DETAIL the project’s strengths and/or weaknesses • Explain and defend your rankings • Attach additional paper, if necessary Page 16 of 66  Evaluation Criteria • Is there a need for units renting at these prices? • Is there an appropriate or beneficial mix of income levels? • Are there enough units provided for persons with special needs? • Is this a good location for 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?) • What are the on-site amenities? Are they sufficient? Will they meet the needs of the project’s tenants? • What are the resident services? Are they sufficient? Will they meet the needs of the project’s tenants? • How will the developers conduct marketing and outreach to potential residents? Will they utilize local resources like churches and non-profit organizations? • Do the developers have the necessary experience to successfully develop and operate the project? • Are the proposed loan terms reasonable and acceptable? • Considering all factors, is the project feasible? Page 17 of 66 Next Steps • City Commission, August 24, 2023 – General Policy Committee Meeting • Applications to State by September 12, 2023 • State decision tentatively scheduled for October 27, 2023 – If approved • Challenges, underwriting, permitting and construction typically take several years – If not approved • Funds remain in ConnectFree Page 18 of 66 Program QUESTIONS? Page 19 of 66  2023-670B From: Jotform To: Wachtel, John S Subject: [EXTERNAL] Re: Local Government Contribution for RFA 2023-201 (LIHTC/LGAO) Date: Friday, June 30, 2023 5:30:13 PM Local Government Contribution for RFA 2023-201 (LIHTC/LGAO) Project name Woodland Park Phase II Developer name Newstar Development, LLC Project location 24 SE 19th Place Project type New construction # of Units (existing) 56 # of Units (when 96 complete) Increase in # of units 40 Building height (in 3 stories stories) Total Project Costs $28,219,031 Demographic commitment (Family or elderly; if elderly, Family include minimum age) Summarize All units will be set aside for families earning at or affordability mix below 60% of the Area Median Income (AMI) for using % of AMI (# Alachua County, with a subset of 10% of the units of units at each AMI being further set aside for families earning at or Level) below 40% of AMI. So 86 units at 60% AMI and 10 units at 40% AMI. Summarize special Five 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 category) elders; Youth aging out of foster care; Homeless; Persons with disabilities. List residential Residential Programs include: After School programs Program for Children; Employment Assistance Program; Financial Management Program; Homeownership Opportunities; Elite Force, Job Training Center 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 Page 20 of 66  pavilions Walking Paths – Woodland Park Phase II will include a fitness path/walking trail that connects to the full Woodland Park community to the adjacent public 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 On-site clubhouse – will contain a fitness room, amenities computer room, management office, warming kitchen and bathrooms Appliances – in unit washer/dryers, full kitchen 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 parks, community Pharmacy (1.2 miles) & Shands Medical Center centers, retail (2.4 miles) centers, pharmacies, Parks – Woodland Park (0.0 miles) on-site, T.B. medical services, McPherson Park & Mickle Pool (1.0 miles), Depot financial services, Park (1.0 miles), Sweet Water Preserve (1.7 miles) and other amenities. School – Caring and Sharing Learning School (0.2 miles), Abraham Lincoln Middle School (0.9 miles) & Joseph Williams Elementary (1.3 miles) Summarize proposed Loan Terms, Proposed Loan Terms: 18 year term, 30 year including interest amortization, 1% interest rate, and timeframes Priority 1 project per Page 21 of 66  Yes RFA 2023-201 Previously approved Yes in 2021 Previously approved Yes in 2022 Family demographic that qualifies for Geographic Area of No Opportunity or SADDA Completed 1st Step Meeting with the city’s Department of No Sustainable Development? You can edit this submission and view all your submissions easily. Page 22 of 66  2023-670C Page 23 of 66 Page 24 of 66 Page 25 of 66  Project Rental Information 1) Project Primary Target Market [Household Area Median Income(AMI)]: D Extremely Low(30% or less AMI) 0 Very Low(31 % - 50% AMI) � Low(51 %- 80% AMI) D Moderate(> 80% AMI) 2) Income Levels and Special Needs: Please complete the following tables to the best of your ability. Show actual or estimated number of units for the development occupants/beneficiaries. Total Income Units must equal Total Units AFTER Development in #8, Project Development Information. Income Levels: Income Group Number of Units (Area Median Income-AMD 30% or less AMI 31-50% AMI 10 51-60% AMI 86 61-80% AMI >80% AMI TOTAL 96 . INeeds Popu a Spec1a It'10n: Cate2ory Number of Units Elderly Disabled( Not Elderly) Homeless Persons with HIV/AIDS Veterans Other: Link Units for Persons w/ 5 Special Needs TOTAL 5 Page 5 of 7 LGC Application-LIHTC/LGAO-RFA 2023-201 (Rev.6/1/23) Page 26 of 66 WOODLAND PARK PHASE II – PROJECT SUMMARY The Gainesville Housing Authority (GHA) is partnering with its co-developer, Newstar Development, to develop the second phase of Woodland Park (Woodland Park II), which is the redevelopment of the former 170-unit Woodland Park public housing community into a new 288-unit affordable housing community. Woodland Park II consists of 96 units of new construction, garden style, family affordable housing. This project will replace 56 existing, occupied units in duplex buildings located within Woodland Park, all of which will be demolished to make room for the new construction. The project will consist of 24 one-bedroom units, 44 two-bedroom units, and 28 three-bedroom units. All units will be set aside for families earning at or below 60% of the Area Median Income (AMI) for Alachua County, with a subset of 10% of the units being further set aside for families earning at or below 40% of AMI. All families currently residing in the existing units will be relocated off-site during construction and will have the option to return to Woodland Park upon completion of Phase II. CONNECTFREE REQUEST For the 2023 RFA cycle, FHFC has established $460,000 as the required LGAO funding amount for developments in Alachua County. Supporting Woodland Park II will enable the City of Gainesville to maximize the return on investment associated with LGAO funding as compared with other potential applicants in Alachua County, as follows: • FHFC’s Draft 2023-201 RFA dated June 22, 2023 revealed FHFC’s goal to fund 6 Medium County developments that qualify for LGAO funding. o Within this goal, FHFC has a goal to fund two developments that were previously submitted with LGAO funding in since 2021 RFA cycle or earlier but not awarded. The City of Gainesville awarded Woodland Park II LGAO funding in 2020, 2021, and 2022. So Woodland Park Phase II will qualify for these two goals. No other development in Alachua County would qualify for these two goals. So Woodland Park Phase II has a distinct advantage over applicants that are seeking LGAO for the very first time. o The next goal within the LGAO funding goal is to select two applications that demonstrate continuous LGAO support since 2022. City of Gainesville awarded LGAO funding in 2022 to Woodland Park II, thus meeting this goal. No other development in Alachua County would qualify for these two goals. o The final goal within the LGAO funding goal is to select two applications that qualify for the LGAO designation, regardless of prior LGAO support. Woodland Park II will also meet this funding goal. o Overall – Woodland Park II will qualify for all 6 LGAO funding goals. For the reasons above, GHA respectfully requests that the City of Gainesville commit $460,000 in funding to support Woodland Park II. Page 27 of 66 WOODLAND PARK PHASE II – SITE MAP Page 28 of 66 Page 29 of 66 Note: The general hold harmless provisions of IRC Section 142(d)(2)(E) mean that projects with at least one building placed in service on or before the end of the 45-day transition period for newly-released limits use whichever limits are greater, the current-year limits or the limits in use the preceding year. HUD release: 5/15/2023 2023 Income Limits and Rent Limits Effective: 5/15/2023 Florida Housing Finance Corporation Implement on/before: 6/28/2023 Multifamily Rental Programs and CWHIP Homeownership Program NOTE: Does not pertain to CDBG-DR, HHRP, HOME, NHTF or SHIP Percentage Income Limit by Number of Persons in Household Rent Limit by Number of Bedrooms in Unit County (Metro) Category 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 Alachua County 20% 12,140 13,880 15,620 17,340 18,740 20,120 21,520 22,900 24,276 25,663 303 325 390 451 503 555 (Gainesville HMFA) 25% 15,175 17,350 19,525 21,675 23,425 25,150 26,900 28,625 30,345 32,079 379 406 488 563 628 694 28% 16,996 19,432 21,868 24,276 26,236 28,168 30,128 32,060 33,986 35,928 424 455 546 631 704 777 30% 18,210 20,820 23,430 26,010 28,110 30,180 32,280 34,350 36,414 38,495 455 487 585 676 754 832 33% 20,031 22,902 25,773 28,611 30,921 33,198 35,508 37,785 40,055 42,344 500 536 644 744 829 916 35% 21,245 24,290 27,335 30,345 32,795 35,210 37,660 40,075 42,483 44,911 531 569 683 789 880 971 40% 24,280 27,760 31,240 34,680 37,480 40,240 43,040 45,800 48,552 51,326 607 650 781 902 1,006 1,110 45% 27,315 31,230 35,145 39,015 42,165 45,270 48,420 51,525 54,621 57,742 682 731 878 1,014 1,131 1,249 50% 30,350 34,700 39,050 43,350 46,850 50,300 53,800 57,250 60,690 64,158 758 813 976 1,127 1,257 1,388 60% 36,420 41,640 46,860 52,020 56,220 60,360 64,560 68,700 72,828 76,990 910 975 1,171 1,353 1,509 1,665 70% 42,490 48,580 54,670 60,690 65,590 70,420 75,320 80,150 84,966 89,821 1,062 1,138 1,366 1,578 1,760 1,943 Median: 90,800 80% 48,560 55,520 62,480 69,360 74,960 80,480 86,080 91,600 97,104 102,653 1,214 1,301 1,562 1,804 2,012 2,221 120% 72,840 83,280 93,720 104,040 112,440 120,720 129,120 137,400 145,656 153,979 1,821 1,951 2,343 2,706 3,018 3,331 140% 84,980 97,160 109,340 121,380 131,180 140,840 150,640 160,300 169,932 179,642 2,124 2,276 2,733 3,157 3,521 3,886 HERA Special Limits 25% - HS 15,900 18,175 20,450 22,700 24,525 26,350 28,150 29,975 31,780 33,596 397 425 511 590 658 726 per Section 142(d)(2)(E) 28% - HS 17,808 20,356 22,904 25,424 27,468 29,512 31,528 33,572 35,594 37,628 445 477 572 661 737 813 (est. 2019) 30% - HS 19,080 21,810 24,540 27,240 29,430 31,620 33,780 35,970 38,136 40,315 477 511 613 708 790 871 For use by projects that 33% - HS 20,988 23,991 26,994 29,964 32,373 34,782 37,158 39,567 41,950 44,347 524 562 674 779 869 959 placed in service at least 35% - HS 22,260 25,445 28,630 31,780 34,335 36,890 39,410 41,965 44,492 47,034 556 596 715 826 922 1,017 one building on or 40% - HS 25,440 29,080 32,720 36,320 39,240 42,160 45,040 47,960 50,848 53,754 636 681 818 944 1,054 1,162 before 12/31/2008 45% - HS 28,620 32,715 36,810 40,860 44,145 47,430 50,670 53,955 57,204 60,473 715 766 920 1,062 1,185 1,307 50% - HS 31,800 36,350 40,900 45,400 49,050 52,700 56,300 59,950 63,560 67,192 795 851 1,022 1,180 1,317 1,453 60% - HS 38,160 43,620 49,080 54,480 58,860 63,240 67,560 71,940 76,272 80,630 954 1,022 1,227 1,416 1,581 1,743 Florida Housing Finance Corporation (FHFC) income and rent limits are based upon figures provided by the United States Department of Housing and Urban Development (HUD) and are subject to change. Page 30 of 66 Updated schedules will be provided when changes occur. WOODLAND PARK PHASE II – MARKETING PLAN Norstar Accolade Property Management (“NAPM”) is the affiliate property manager for all properties developed by Norstar Development USA, LP (“Norstar”), and its Florida development partners. Since 2008, Norstar has partnered with five different public housing authorities (“PHAs”) in Florida to complete twelve affordable housing communities. Virtually all the units NAPM manages for Norstar and its partners are affordable with ELI/special needs unit set asides. NAPM hires local property management and leasing staff, and typically compiles waiting lists that exceed the number of available units in a new development by the time the buildings receive their certificates of occupancy. NAPM has also developed special screening, application, and tenant selection processes to help remove barriers that would typically prevent special needs applicants, including those that face economic barriers, from leasing quality, safe, affordable housing. Since 2008, NAPM has helped more than 3,700 families and individuals lease affordable apartment homes, and over 1,100 of these residents were ELI/special needs applicants. For Woodland Park Phase II, NAPM will utilize its standard marketing approach with newspaper, online, and on- site advertising. NAPM will also develop partnerships with local referral agencies and work with Gainesville Housing Authority (GHA) to contact prospective tenants already on GHA’s waiting lists. Additionally, because there is already a completed and occupied Phase I on site, GHA has received a substantial amount of applicants who have specifically inquired about living at Woodland Park. Furthermore, Woodland Park Phase II includes the relocation and demolition of 56 units currently on-site. These 56 units will be given the opportunity to return to Woodland Park Phase II after completion. We anticipate that NAPM will have no issues leasing up the Woodland Park Phase II development within 2-3 months of construction completion. Page 31 of 66 LIST OF PAID STAFF GAINESVILLE HOUSING AUTHORITY: PAMELA DAVIS, CEO MICHELLE BEANS, CFO MALCOLM KINER, COO DAVID CORNWELL, FEE ACCOUNTANT GHA’s duties will be to review and approve detailed development and operating budgets throughout the development process, oversee and approve of building design, implement residential programs as required, relocation of existing tenants, meeting with residents, local governments and other community stakeholders. NEWSTAR DEVELOPMENT, LLC BRIAN EVJEN, PRESIDENT JUSTIN CORDER, VICE PRESIDENT OF DEVELOPMENT JODEL RYAN, PROJECT MANAGER NICHOLE PORTER, CONSTRUCTION MANAGER As co-developers, Newstar Development will serve in a full-service capacity, advising the Authority as needed on securing all financing, engaging and managing the design and other consultants, and construction pricing and completion of Woodland Park II. Included in the scope of securing the project financing will be the pursuit of a tax credit award and available local government contributions, as well as identifying potential development funds from other sources. Page 32 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Eagle Ridge Apartments Tarpon Springs, Florida Eagle Ridge is a 71-unit family affordable housing project completed in partnership with the Tarpon Springs Housing Authority (TSHA). Financing included 9% Low Income Housing Tax Credits ($0.955 tax credit pricing) as well as Pinellas County funds, and total development cost was $18,178,000. Eagle Ridge serves tenants at 60% AMI and lower. Unit sizes include 1BR – 720sf, 2BR – 994sf, and 3BR – 1,320sf. This project was completed in February 2021 on-time and under-budget. Page 33 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Venetian Walk II Apartments Venice, Florida Venetian Walk II is a second phase 52-unit family affordable housing project completed in partnership with the Venice Housing Authority (VHA). Financing included 4% Low Income Housing Tax Credits ($0.92 tax credit pricing), Sarasota County Funds, City of Venice funds, SAIL & ELI loans from FHFC, and VHA capital funds. The total development cost was $12,211,000. Venetian Walk II serves tenants at 60% AMI and lower. Unit sizes include 1BR – 677sf, 2BR – 1,126sf, and 3BR – 1,346sf. This project was completed in October 2020 on-time and under-budget. Page 34 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Palms of Pinellas Largo, Florida Norstar developed Palms of Pinellas in Partnership with Pinellas County Housing Authority (PCHA). It is comprised of 92 workforce housing units targeted to families; 20% of units are set aside for households earning at or below 50% of AMI, 10% of units are set aside at or below 80% of AMI, 10% of units are set aside at or below 120% of AMI, and the remaining units are market rate units. Norstar financed Palms of Pinellas, which had a Total Development Cost of $12,911,000, with a combination of Pinellas County Land Assembly Trust funds, a construction/permanent loan from Valley National Bank, Pinellas County HOME and Housing Trust Funds, and PCHA funds. No tax credits were used to finance this project. Palms of Pinellas achieved National Green Building Standard Bronze level certification for its green and energy efficient features. Amenities include a pool, yoga and fitness center, and dog wash station. Unit sizes include 1BR – 725sf, 2BR – 1,025sf. and 3BR – 1,250sf. This project was completed in 2019 on-time and on-budget. Page 35 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Verandas of Punta Gorda – Phase I and Phase II Punta Gorda, Florida The Verandas of Punta Gorda is a two-phase, 120-unit senior housing community. The Verandas was a partnership with the Punta Gorda Housing Authority (PGHA) and was financed with 9% Low Income Housing Tax Credits ($1.005 tax credit pricing for Phase I and $1.015 for Phase II), HUD capital funds, PGHA funds, and Charlotte County SHIP Funds. The total development cost including both phases was $22,953,000. Verandas of Punta Gorda serves tenants at 60% AMI and lower and is an NGBS Silver certified green building that also features Florida Water Star and Florida Friendly Landscaping certifications. Verandas of Punta Gorda partners with the Charlotte County Homeless Coalition for resident referrals. Norstar completed Phase I in 2017 and Phase I in 2018. Unit sizes include 1BR – 555sf and 2BR – 971 sf. This project was completed on-time and on-budget. Page 36 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Pinellas Heights Largo, Florida Norstar developed Pinellas Heights in Partnership with Pinellas County Housing Authority (PCHA). It is comprised of 153 units targeted to seniors; 21 ACC and the remainder at 50% AMI. Norstar financed Pinellas Heights, which had a Total Development Cost of $23,470,000, with a combination of 4% Low Income Housing Tax Credits ($0.955 tax credit pricing), Federal Home Loan Bank Funds, Pinellas County Housing Trust Funds, City of Largo CDBG, and PCHA funds. PCHA and Norstar entered into a Master Development Agreement in 2011, and the partnership completed Pinellas Heights in 2015. Pinellas Heights earned the National Green Building Standard Silver award for its green and energy efficient features. Pinellas Heights partners with Prime Care Home Health to operate an on-site Wellness Center, and the YMCA to offer on-site dance classes. Unit sizes include 1BR – 675sf and 2BR – 950sf. This project was completed on-time and on-budget. Page 37 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Renaissance Preserve Senior Fort Myers, Florida Renaissance Preserve Senior, developed in partnership with the Housing Authority of the City of Fort Myers, is a 120-unit senior affordable project located in Fort Myers, Florida. This project was the initial phase of a major redevelopment of a former Public Housing community known as Michigan Courts. Norstar partnered with HACFM to demolish the Michigan Court buildings and implement a plan to construct 392 new units on the 33-acre (MOL) Norstar financed Renaissance Preserve utilizing a combination of HUD HOPE VI funds, tax credit equity, permanent financing from Bank of America, AHP loans from the Federal Home Loan Bank, and HACFM funds. The total development cost was $18.8 million. Norstar completed Renaissance Preserve Senior in 2009, and the project serves tenants at 60% AMI and lower and includes 96 public housing units and 24 LIHTC units. This facility is a 4- story, concrete construction midrise. Page 38 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Renaissance Preserve Phases II - IV Fort Myers, Florida Renaissance Preserve Phases II - IV, developed in partnership with the Housing Authority of the City of Fort Myers, include 172 units of family affordable apartments located in Fort Myers, Florida. These phases completed a major redevelopment of a former Public Housing community known as Michigan Courts. Norstar financed Renaissance Preserve utilizing a combination of HUD HOPE VI funds, tax credit equity, permanent financing from Bank of America, AHP loans from the Federal Home Loan Bank, and HACFM funds. The total development cost was $48.8 million. Renaissance Preserve serves tenants at 60% AMI and lower and consists of two-story concrete construction townhomes. Norstar completed Renaissance Preserve Phases II – V between 2012 and 2016. Page 39 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Venetian Walk Venice, Florida Venetian Walk is a 61-unit senior housing project Norstar completed in partnership with the Venice Housing Authority (VHA) in 2015 after executing a Master Development Agreement in 2012. Financing included 9% Low Income Housing Tax Credits ($0.99 tax credit pricing) as well as HUD Capital Funds and CDBG funds, and total development cost was $12,622,000. Venetian Walk serves tenants at 60% AMI and lower. This project earned the prestigious LEED Gold Certification, one of the earliest affordable housing projects in the state of Florida to earn the certification. Venetian Walk partners with Suncoast Partnership to End Homelessness, Inc., to provide supportive services for special needs households as defined by FHFC. Unit sizes include 1BR – 663sf and 2BR – 968sf. This project was completed on-time and on-budget. Page 40 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Landings at Cross Bayou St. Petersburg, Florida The Landings was a partnership with the Pinellas County Housing Authority (PCHA) and was financed with 9% Low Income Housing Tax Credits, PCHA funds, and Pinellas County HOME Funds. It is comprised of garden-style apartments and serves extremely low and very low-income tenants. PCHA and Norstar entered into a Master Development Agreement in 2011, and the partnership completed the Landings in 2014. The total development cost for this project was $24,370,000. The Landings is unique as it was the first Rental Assistance Demonstration (RAD) conversion in the state of Florida. This project was a finalist for the 2015 Reader’s Choice Awards in Affordable Housing Finance magazine. Regarding community and resident participation, the Landings partners with Pinellas Sheriff’s PAL (Police Athletic League) to provide tutoring and mentoring services for youth residents. Page 41 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Gulf Breeze Punta Gorda, Florida Gulf Breeze, co-developed with the Punta Gorda Housing Authority, is a 171-unit family affordable project contained in 49 buildings on 12 acres located in Punta Gorda, Florida. This project replaced 100 public housing units that were destroyed by Hurricane Charlie. This mixed finance project incorporates several funding sources including RRLP funds, insurance funds, bond funds, tax credit equity funds, and FHLB funds. The project incorporates the Punta Gorda “Key West” style architecture creating a new urbanism feel with all units having porches and front doors on the public streets. The total development cost was $26,815,507. Completed in 2009, Gulf Breeze serves tenants at 60% AMI and lower including 85 public housing units and was the 2009 winner of the National Charles Edson Award for Tax Credit Excellence. Page 42 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE Sunrise Park Lake Wales, Florida Sunrise Park, co-developed with the Lake Wales Housing Authority, is a 72-unit family affordable project contained in 11 buildings located in Lake Wales, Florida. This mixed finance project incorporates several funding sources including HUD capital funds, RHF funds, and 9% tax credit equity. The total development cost was $12.3 million. Sunrise Park serves tenants at 60% AMI and lower and includes 32 public housing units and 40 LIHTC units. As shown above, site amenities include green space with a picnic gazebo, tennis court, and car wash area. Norstar completed Sunrise Park in 2012. Page 43 of 66 PREVIOUS AFFORDABLE HOUSING DEVELOPMENT EXPERIENCE The Grove at Sweetwater Preserve Gainesville, Florida The Grove at Sweetwater Preserve is the joint venture redevelopment of an existing public housing complex between Pinnacle and the Gainesville Housing Authority. This extensive redevelopment effort will occur in three stages, with the first phase consisting of the demolition of 89 existing units and the new construction of 96 units in four garden-style apartment buildings. The Grove at Sweetwater Preserve offers a blend of public housing and Section 8 rental-assisted housing, and is an essential part of a broader strategy by the GHA and the City of Gainesville to improve the stock of assisted housing in the City. The first phase of the Grove at Sweetwater was complete in the summer of 2020. Page 44 of 66 BUSINESS REFERENCES BANK OF AMERICA KWAME NDZIBAH, SENIOR VICE PRESIDENT EMAIL: KWAME.NDZIBAH@BOFA.COM (646) 743-5126 RAYMOND JAMES BANK GREG HARGROVE EMAIL: GREG.HARGROVE@RAYMONDJAMES.COM (727) 567-4173 RAYMOND JAMES TAX CREDIT FUNDS DARRYL SEAVEY, VICE PRESIDENT EMAIL: DARRYL.SEAVEY@RAYMONDJAMES.COM (212) 883-6550 Page 45 of 66 REFERENCES FROM LOCAL GOVERNMENTS PINELLAS COUNTY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT BRUCE BUSSEY, COMMUNITY DEVELOPMENT MANAGER EMAIL: BBUSSEY@CO.PINELLAS.FL.UC (727) 464-8257 HOUSING FINANCE AUTHORITY OF PINELLAS COUNTY, FL KATHRYN DRIVER, EXECUTIVE DIRECTOR EMAIL: KDRIVER@PINELLASHFA.COM (727) 223-6418 CITY OF BRADENTON COMMUNITY REDEVELOPMENT AGENCY KATERINA GERAKIOS-SIREN, CRA EXECUTIVE DIRECTOR EMAIL: KATERINA.GERAKIOS-SIREN@CITYOFBRADENTON.COM (941) 932-9439 Page 46 of 66  2023-670D CONNECTFREE PROGRAM FUNDING REQUEST CO-DEVELOPERS: GAINESVILLE HOUSING AUTHORITY (GHA) & NEWSTAR DEVELOPMENT USA, LP PROJECT NAME: WOODLAND PARK PHASE II CITY OF GAINESVILLE AFFORDABLE HOUSING ADVISORY COMMITTEE JUNE 30, 2023 Page 47 of 66  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 Newstar – 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 48 of 66  LOCAL GOVERNMENT AREA OF OPPORTUNITY (LGAO) • FHFC typically funds 8-10 Medium County 9% tax credit applications per year. For 2023, FHFC has established goals to fund six applicants that have LGAO funding commitments. These goals are further defined as: • Two LGAO applicants that previously received LGAO since 2021 or earlier but did not receive a tax credit award • Two LGAO applicants that previously received LGAO since 2022 but did not receive a tax credit award • Two applicants that submits and receives LGAO in 2023 • With a 2023 LGAO commitment from the City of Gainesville, Woodland Park Phase II will qualify for all six LGAO goals Page 49 of 66  PROJECT LOCATION Project Location: 24 Southeast 19th Place Page 50 of 66  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 51 of 66 PROJECT DESIGN: SITE PLAN Page 52 of 66 PROJECT DESIGN: DRAWINGS Page 53 of 66  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 54 of 66  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 fitness path/walking trail that connects to the full Woodland Park community to the adjacent public park Page 55 of 66  RESIDENT SERVICES • After School Program for Children • Employment Assistance Program • Financial Management Program • Homeownership Opportunities • Elite Force, Job Training Center Page 56 of 66  RESIDENT INCOME MIX Income Mix: • 40% AMI Units – 10 units • 60% AMI Units – 86 units • Total Units – 96 units Page 57 of 66  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 58 of 66  MONTHLY RENT LIMITS Maximum HUD Rent Limit by Number of Bedrooms in Unit: Percentage 1 2 3 Category Bedroom Bedroom Bedroom (AMI) 40% $650 $781 $902 60% $975 $1,171 $1,353 *Assumptions do not include Utility Allowance Page 59 of 66  OTHER PROJECT INFORMATION Similar Completed Projects: The Grove at Sweetwater Preserve • New Construction of 96 Units • Completed Summer of 2020 Page 60 of 66  WOODLAND PARK II ADVANTAGES • The City of Gainesville has funded LGAO to Woodland Park II for the past three years in a row (2020, 2021 & 2022). • Woodland Park II will qualify for all 6 LGAO goals with an award from the City in 2023. Page 61 of 66  PROPOSED LOAN TERMS Proposed Loan Terms • 18 year term • 30 year amortization • 1% interest *Terms subject to negotiation Page 62 of 66  DEVELOPMENT APPROVALS • Tax credit application submittal 9/12/2023 • Tax credit application approval 10/27/2023* • Building design and site plan approval 11/1/2024 • Financial closing 11/30/2024 • Construction start 12/1/2024 • Complete construction 3/1/2026 *Preliminary Approval. Subject to litigation under FL code Page 63 of 66  PROJECT FUNDING • Total Project Units – 96 units • Total Project Costs - $28,219,031 • ConnectFree Funding Request - $460,000 • Total Project Sources • Permanent Loan - $7,300,000 • Connectfree Funding - $460,000 • Tax Credit Equity - $19,811,519 • Deferred Fee - $647,512 Page 64 of 66 QUESTIONS? Page 65 of 66  2023-670E CITY OF GAINESVILLE Local Government Area of Opportunity (LGAO)—Affordable Housing Advisory Committee, August 1, 2023 Evaluation of Affordable Rental Housing Projects—ConnectFree—LGAO Evaluator Name (print): Evaluator Signature: WOODLAND PARK—PHASE 2 Recommend whether or not the City should fund the project. Base your evaluation on the application provided to the City, and on the presentation and discussion at the August 1, 2023 AHAC meeting. In the appropriately labeled space, describe in detail the strengths and weakness of the project (if necessary, use additional paper). Use this space to explain and defend your funding recommendation. Consider factors such as those listed below. 1. Is there a need for units renting at these prices? 2. Is there an appropriate or beneficial mix of income levels? 3. Are there enough units provided for persons with special needs? 4. Is this a good location for 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. What are the on-site amenities? Are they sufficient? Will they meet the needs of the project’s tenants? 6. What are the resident services? Are they sufficient? Will they meet the needs of the project’s tenants? 7. How will the developers conduct marketing and outreach to potential residents? Will they utilize local resources like churches and non-profit organizations? 8. Do the developers have the necessary experience to successfully develop and operate the project? 9. Are the proposed loan terms reasonable and acceptable? 10. Considering all factors, is the project feasible? The project’s strengths: The project’s weaknesses: Additional comments and justification for funding determination: Should the City fund the project (circle one)? YES NO Page 66 of 66