DEPARTMENT MAKING REQUEST
Human Services
Title
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Hurricane Housing Recovery (HHR) Multi-Family Construction (MFC) Loan Terms - Sovereign at Harbor West, LLC and Sovereign at Parkside East, LP
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REQUESTED MOTION/ACTION
recommendation
Recommended Action:
a) Authorize the proposed terms for the HHR-MFC loan to Sovereign at Harbor West, LLC; and
b) Authorize the proposed terms for the HHR-MFC loan to Sovereign at Parkside East, LP.
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budget
Budgeted Action:
No action needed. Budgeted in the FY26 Hurricane Housing Recovery Fund. There is no local match required. Funding for this expenditure will come from the Hurricane Housing Recovery Program.
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BACKGROUND (Why is this Action Necessary, and What Action will be accomplished)
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Background:
Sovereign at Harbor West is a proposed 32-unit affordable rental development for families with income at or below 60% AMI to be located at 145/155 Parade Circle, Rotunda West. Sovereign at Parkside East is a proposed 32-unit affordable rental development for seniors with income at or below 60% AMI to be located at 165/175 Parade Circle, Rotunda West. These proposed properties are made possible through Florida Housing Finance Corporation (FHFC) RFA 2022-206 HOME Financing to be used for rental developments in certain Hurricane Ian impacted counties. Due to subsequent hurricanes and a change in ownership, the project has suffered considerable delays and increased cost projections. Gap funding was requested for both properties.
The BCC authorized staff to issue a $400,000 Hurricane Housing Recovery (HHR) Multi-Family Construction (MFC) loan for Harbor West and a $400,000 HHR-MFC loan for Parkside East at their 03.10.2026 Regular meeting. At the time, the loan terms were not presented. The Local Housing Assistance Plan (LHAP) sets forth most of the terms for for-profit developments, but repayment terms are established on a case-by-case basis. Staff request the approval of the proposed repayment terms for both loans:
Loan amount: $400,000
Interest Rate: 3%
Loan term: 30 years or co-terminus with the first mortgage, if different than 30 years
Repayment: Annual payment based on cash flow (soft pay); balloon payment at end of loan period if not already amortized.
All loan documents (Mortgage, Note, and LURA) 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 consideration are: Charlotte HOME applications; LHAP Multi-Family Construction (MFC) strategy.
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