AGENDA MEMORANDUM
Meeting Date: November 26, 2007
From: Kenneth L. Thomas, Director of Housing & Economic Development
Subject: Resolution Requesting from Lake County Commission a $1,960,000 grant from the State Housing Initiative Partnership (SHIP) to defray the cost of renovating 56 units at Kristen Court for resale of affordable housing.
Staff Recommendation:
Staff recommends approval of the resolution requesting Lake County Commission to appropriate $1,960,000 from the SHIP housing trust fund for renovation of Kristen Court Apartments to provide “for sale” affordable townhomes.
Analysis:
The City acquired Kristen Court apartments during the time the property was at the pinnacle of disrepair, blight, and was crime-ridden; not a place favored for development. However, the City Commission was convinced the area could be an added benefit to the tax base and provide affordable housing. The growing cost of housing in this area makes it practically impossible to develop units for people who earn less than 120 percent of the area median income (MI/$41,207 x 120% = $49,448).
Support from the Lake County SHIP program will allow the City to offer homes at prices of $112,000 per unit and with a $30K to $35K subsidy (mortgage buydown) the mortgage will then be reduced from $82K to $77K per unit based on the subsidy received. The proposed new townhome community will offer residents high-quality units and a beautiful property in close proximity to local employment centers. The City will pursue Community Development Block Grant (CDBG) funding to enhance the property’s infrastructure as well provide new amenities such as a resident resource center. The enhancement of a new landscaping plan, sidewalks, and drainage system will encourage new homebuyers. The complex will be attractive to young professionals (teachers, firefighters, nurses, electricians, welders), families, and seniors. We anticipate this development to be a “safe haven” for long-term investors (residents). The underpin of this project will rely on deep subsidies and a strong public contribution to make it a reality.
Options:
1. Approve the resolution requesting SHIP funding for Kristen Court townhome redevelopment; or
2. Such alternative action as the Commission may deem appropriate.
Fiscal Impact:
N/A
Submission Date and Time: 11/21/2007 6:16 PM____
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RESOLUTION NO. _______
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, REQUESTING THE COUNTY COMMISSION OF LAKE COUNTY, FLORIDA, TO PROVIDE A GRANT OF $1,960,000 TO THE CITY OF LEESBURG FROM THE COUNTY’S SHIP (STATE HOUSING INITIATIVE PARTNERSHIP) HOUSING FUND, FOR FISCAL YEAR 2006 – 2007, TO DEFRAY COSTS OF RENOVATING 56 HOUSING UNITS AT KRISTEN COURT APARTMENTS IN LEESBURG, FLORIDA, FOR RESALE TO LOW INCOME RESIDENTS, AND TO RENOVATE THREE SUCH UNITS AS A RESOURCE CENTER FOR THE RESIDENTS OF THE COMPLEX; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Leesburg has acquired, at its own cost, and currently owns, the residential apartment complex known as Kristen Apartments in Leesburg, Florida, which has historically provided rental housing to low income residents, and
WHEREAS, these apartment units are in need of substantial renovation and the City is seeking financing to pay the costs of renovation, and
WHEREAS, Lake County has funds available through the State Housing Initiative Partnership (“SHIP”) for the purpose of providing housing to its low income residents, and
WHEREAS, it is the desire of the City to renovate the units at Kristen in order to provide 56 units to be sold in fee simple as townhomes to low income residents, under restrictions which would preserve those units as low income housing for a specified period, and to renovate three units as a resource center for the residents of the other 56 units, and
WHEREAS, the City desires further to obtain all or a portion of the necessary funding from the County’s SHIP funds,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City of Leesburg Commission hereby requests of the Lake County Commission to approve a grant to the City from the County’s SHIP Funds for $1,960,000.00, in fiscal year 2006 – 2007, to be deposited into a segregated account and dedicated solely to the renovation of the units at Kristen Apartments, so those units may be offered for sale in fee simple to low income residents with three units dedicated as a resource center for the residents. The City anticipates that the renovation process, once funded, will take between six months and one year.
THAT the City of Leesburg Commission further requests the Lake County Commission to begin negotiations with the City to enter into an agreement to memorialize the terms of the grant and any conditions imposed on it.
THIS RESOLUTION shall become effective immediately.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the __26th day of November, 2007.
THE CITY OF LEESBURG, FLORIDA
BY:
SANNA HENDERSON, Mayor
ATTEST:
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BETTY M. RICHARDSON, City Clerk