Title
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2026 Local Government Area of Opportunity
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recommendation
Human Services
a) Consider the Affordable Housing Advisory Committee (AHAC) recommendation for LGAO preference and select the preferred development; and
b) Authorize a $340,000 Affordable Housing Trust Fund (AHTF) loan for selected applicants, contingent upon the award of FHFC RFA 2026-201; and
c) Authorize the Chairman to sign the required Verification of Contribution forms.
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Budgeted Action:
No action needed. A 4th quarter budget adjustment will be brought to the board for approval.
Background:
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Local Government Area of Opportunity (LGAO) is the method by which local governments have some say on where affordable housing developments will be built. It is designed by Florida Housing Finance Corporation (FHFC) so local governments have some “skin in the game” in 9% Low-Income Housing Tax Credit (LIHTC) eligible developments. LGAO funding is a permanent source of funding, made available through the local Affordable Housing Trust Fund (AHTF). LGAO is a competitive process administered through the Charlotte HOME (Housing Opportunities Made Easier) program and Affordable Housing Advisory Committee (AHAC). An annual Request for Application (RFA) is issued to select a locally preferred applicant for the FHFC RFA. Local government can commit the LGAO funding to one application per RFA. Priority Goals to fund 6-7 medium-county projects in 2026. Permit ready projects receive priority boost within each funding goal. Continuous local support results in higher priority in RFAs. Murdock Square was awarded local preference in LGAO 2025.
Summary of LGAO 2026:
• 05.04.2026 County RFA issued; application deadline 06.05.2026; two (2) applications received
• Blue Deep Creek 2 - Punta Gorda (Deep Creek)
• Murdock Square - Port Charlotte
• 06.15.2026 Charlotte HOME Review Committee - open, public review and scoring of applications.
• 06.23.2026 AHAC - after much discussion and consideration, including developer/applicant input on likelihood of funding in 2026, recommend Murdock Square for local preference, and award of expedited permitting, impact fee waiver, and $340,000 AHTF loan contingent upon award of FHFC RFA 2026-201. Recommendation based on competitive edge in FHFC RFA.
• 07.16.2026 FHFC RFA 2026-201 issued; application deadline 08.11.2026.
• 07.28.2026 BOCC determines local preference and verification of contribution to selected applicant
• 09.02.2026 FHFC Review Committee ranking and selection of projects for funding
• 09.25.2026 FHFC Board approval of recommendations
AHAC and staff contend that this was a highly competitive local RFA. Two (2) very desirable applications from experienced, reputable developers made for a difficult decision. Charlotte HOME scores were very close, with Blue Deep Creek 2 earning a slightly higher score. Based on the FHFC RFA goals, however, Murdock Square meets more priority goals and has a higher probability of being funded in 2026. Neither project is permit ready, therefore, the likelihood of either project being funded in 2026 is fairly low. When strategically considering 2027 funding, applicants contend that with 2026 local preference designation:
• Murdock Square would qualify for 3 priority goals: local government (LG) support; continuous LG support for 2+ years; and SADDA (statistical area of difficult development area) goal; possible permit ready
• Blue Deep Creek 2 would qualify for 2 priority goals: LG support; continuous LG support; and will be permit ready
• Both developers agree that GAO/SADDA designation can change year over year, affecting eligibility for that goal.
Provided for review and consideration are: 2026 LGAO presentation; FHFC detailed overview of 9% LIHTC RFAs; County RFA; full Charlotte HOME applications responsive to the County RFA; cumulative scoring matrices for each application; a comparative overview of projects; AHTF encumbrance report reflecting sufficient balance to cover contribution; and the required verification of contribution forms.
*Note 07.14.2026 - DRAFT AHAC minutes with LGAO-related excerpts completed were uploaded to the item after 07.13.2026 CAO one-on-ones with BCC. Additionally, the Chairman requested that the updated head-to-head comparison provided by Housing Trust Group (HTG) be added to the item. This revised document was provided to staff on 07.06.2026, after modifications to FHFC RFA 2026-201 resulted in HTG’s belief in an even greater competitive edge.
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