Title
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Charlotte HOME and Hurricane Housing Recovery (HHR) Loans for Blue Deep Creek
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recommendation
Human Services
a) Authorize the issuance of the awarded Charlotte HOME subsidy as a deferred loan for Blue Deep Creek; and
b) Authorize the Charlotte HOME/Local Government Area of Opportunity (LGAO) loan for Blue Deep Creek; and
c) Authorize the HHR loan for Blue Deep Creek.
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Budgeted Action:
No action needed.
Background:
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Blue Sky Communities’ Blue Deep Creek was selected for Local Government Area of Opportunity in 2023, earning a local government loan in the amount of $340,000 in conjunction with their 9% Low-Income Housing Tax Credit (LIHTC) award.
In addition to LGAO local government contribution, Blue Deep Creek was awarded impact fee waivers in the amount of $297,640, Charlotte HOME subsidies in the amount of $638,794, and a SHIP FY23/24 multi-family construction loan in the amount of $400,000. The award of an HHR loan in the amount of $400,000 is pending BCC authorization.
The Charlotte HOME subsidy, typically awarded as a grant, is requested in the form of a deferred loan to satisfy the requirement of Florida Housing Finance Corporation (FHFC) relative to the LIHTC loan/1st mortgage. The Human Services department is requesting permission to issue the $638,794 in subsidies as a 0%, fully forgivable, 20-year deferred loan, secured by a mortgage, note, and Land Use Restriction Agreement (LURA) setting the affordability term of 50 years (aligns with LIHTC term). The loan would exceed the maximum $150,000 threshold, requiring BCC authorization. The fund source for this Charlotte HOME loan is the Affordable Housing Trust Fund.
Additionally, Blue Sky Communities is seeking $400,000 in Hurricane Housing Recovery (HHR) funding to meet the remaining gap to secure the deal. This SHIP/HHR Multi-Family Construction loan, also exceeding the $150,000 threshold, requires BCC authorization.
The total, combined County investment in Blue Deep Creek is proposed at: $2,076,434 (including fee waivers, subsidies, and loans). That constitutes a $29,663.34 per unit investment, roughly 12% of the per unit development cost. The FHFC loan closing date is February 6, 2025. Construction completion and lease up are slated for mid-2026.
All loan documents (Mortgages, Notes, Subordination Agreements, and LURAs) shall be prepared by the County Attorney’s Office and executed by the County Administrator or his designee pursuant to Resolution 2023-096.
Provided for Board reference are: the Local Housing Assistance Plan (LHAP) MFC strategy; Resolution 2023-096; and the Charlotte HOME application from Blue Sky Communities.
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