TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Discussion and Possible Action Regarding Request for Assistance from McDowell Housing Partners for Arbor Park Affordable Housing Development
Recommended Action
If the City Commission decides that they desire to provide assistance to the McDowell Housing Partners, they may choose one of the following options:
* Agree to defer $50,000 of impact fees for at least one year;
* Agree to waive $50,000 of impact fees;
* Agree to provide a $50,000 match to the project, which would require a budget amendment.
Alternatively, the City Commission may determine that it is not possible to provide assistance at this time.
Background Information
Low Income Housing Tax Credit Program (LIHTC): The Housing Tax Credit Program was created to increase the number of low-income rental housing units and is governed by the U.S Department of Treasury under Section 252 of the Tax Reform Act of 1986 and Section 42 of the Internal Revenue Code. Housing need is assessed annually on current statewide market studies and funds are disbursed each year to the States nation-wide. In Florida, the Florida Housing Finance Corporation administers the LIHTC program funds. The selection process at the State level is highly competitive and only one application per county will be chosen.
In 2016 the City Commission identified the lack of housing for low- and moderate-income levels within the City and directed staff to develop a streamlined program and approach for those who wished to apply to the State of Florida for tax credits under the LIHTC Program. Consequently, staff developed a process for reviewing, analyzing and ranking applications and presenting recommendations to the City Commission. The application process was later approved by Commission. While this process leads to encouraging affordable housing to the appropriate areas of the City, the Commission retains discretion as to ...
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