TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding Request from MCP Residential Developers for Financial Assistance in the Amounts of $460,000 and $50,000 and Request for City Official Signature on Florida Housing Finance Corporation Local Government Verification Of Contribution Forms for a Proposed Promenade on Price Affordable Housing Development to be Located at 1800 E. Price Blvd.
Recommended Action
If the City Commission decides to provide financial assistance to MCP Residential Developers, the following options are provided:
• Provide a cash loan or cash grant in the amount of $460,000, and a cash grant, fee waiver, impact fee waiver, and/or fee deferral in the amount of $50,000, for a total contribution of $510,000;
• Provide a loan or grant in the amount of $460,000 only; or
• Provide a grant, fee waiver, impact fee waiver, and/or fee deferral in the amount of $50,000 only.
Alternatively, the City Commission may determine that it is not possible to commit financial assistance at this time.
Background Information
MCP Residential Developers proposes to build an affordable housing development consisting of up to 266 units on four parcels on E. Price Blvd, east of Toledo Blade, with 100 percent of the units dedicated to households earning 70 percent or less of the Area Median Income. The project is proposed to be funded in part through two programs managed through the Florida Housing Finance Corporation (FHFC).
The first FHFC program is the Local Government Area of Opportunity (LGAO) Funding Goal under Request For Applications 2023-201 Housing Credit Financing for Affordable Housing Developments Located in Small and Medium Counties. This program requires a $460,000 cash loan or cash grant provided by the Local Government.
The second FHFC program is the Request for Applications 2023-205 SAIL Financing of Affordable Multifamily Housing Developments. This program requires the Local Government to provide a minimum of $50,000 through a grant, fee waiver, impact fee waiver, and/or fee deferral.
MCP Residential Partners is seeking a total contribution of $510,000 from the City of North Port.
Strategic Plan
Economic Development and Growth Management
Financial Impact
The City of North Port does not have a dedicated funding source for development of affordable housing and funds would need to be identified and/or moved from other priorities or projects to accommodate this request. The requested cash loan or cash grant for $460,000 would be required to be paid in full by the City no later than 90 days after the proposed development is placed in-service, anticipated to be March 2027. The $50,000 grant, fee waiver, impact fee waiver, and/or fee deferral must be effective beginning August 3, 2023 (the FHFC funding application deadline).
Procurement
Not Applicable.
Attachments:
1. MCP Residential Developers Funding Request and FHFC Forms
Prepared by: Alaina Ray, AICP, Development Services Director
Department Director: Alaina Ray, AICP, Development Services Director