Okaloosa County BOCC — April 21, 2015 — Letter from CDC - SHIP lots 21 and 22

Okaloosa Community Development Corporation Community Housing of Okaloosa County, LLC Okaloosa Housing Partners January 28, 2015 Abra McGill Grants Specialist Okaloosa County Department of Growth Management 600 Transit Way Fort Walton Beach, FL 32547 RE: Lot 21 Block 8 Parcel number: 24-3N-22-2460-0008-0210 And Lot 22 Block 8 Parcel Number: 24-3N-22-2460-0008-0220 Ms. McGill, We are writing to request the Okaloosa Community Development Corporation {OCDC), to be allowed to reimburse the Okaloosa County affordable housing trust fund for the current market value of two lots that remain undeveloped in a home development project. Background In 2007, the SHIP program financed the purchase of 66 lots in unincorporated Okaloosa County approximately 10 miles outside of Crestview, Florida, to be used for a large home ownership project. While the lots were purchased entirely with SHIP funds, the overall project included multiple funding sources, including the rural Development and HOME programs. Consistent with the appraised value, the lots were purchased for $21,038.14 each. As the two lots in question remain undeveloped, the $42,078 SHIP funds spent to purchase them are not yet fully expended. This SHIP encumbrance was reported in previously submitted reports. As you are well aware, the economy and housing market deteriorated quickly subsequent to the lots purchase, and CDC staff was, and continues to be, unable to find buyers for the two remaining lots. The roads serving these lots are unpaved, and several homes in the subdivisions within the area, The Pines and Triple Lakes, have gone into foreclosure in the past three years. 204 Cloverdale Blvd, Fort Walton Beach, FL. 32547 Phone: 850-863-1969 Fax: 850-863-7954 E-mail: okaloosacdc@embarqmail.com The CDC can document its efforts to develop these lots consistent with the home development project. Attached you will find a current value assessment of the lots which provides the following information regarding the values for the subject properties: With the information provided the Broker’s opinion was $1,500.00 -$1,700.00 each based on Quick Sale value. Total cost for the project involving the 2 lots = $47,594.14 $42,076.28 Cost of lots $ 0.00 Service delivery fee for lots development work $ 5,517.85 Additional money paid (surveys, advertising) $47,594,13 TOTAL SHIP SPENT ($3,000.00) Current lots value, which is the amount OCDC offers to be repaid to Trust Fund Resulting in $44,594.13 Negative 11/12 program income, consistent with FHFC’s guidance in similar cases, the remainder of SHIP costs associated with this terminated project to develop housing on these lots will be recorded as negative program income on the next close out report for 11/12. We hope that you will authorize Okaloosa County to proceed so we can submit annual reports showing SHIP compliance. Sincerely, Executive(Director Attachment: J WATTS Properties letter, dated November 12, 2014 85 46-1192 P ROPERTTIES Jim, Per your request, I have reviewed the properties. In my opinion, the quick sale value for Lot 21 Block 8 Parcel Number: 24-3N-22-2460-0008-0210 Lot 22 Block 8 Parcel Number: 24-3N-22-2460-0008-0220 would be in a range from $1500-$1700 each. I would be glad to help you sell them if that is the direction you decide to take. As always, thanks for the opportunity to serve you. Sincerely, Ve ke ] Watts Properties Scottk2500@gmail.com Telephone 850.398.8745 & Fax 850.398.8746 308 W. James Lee Boulevard @ Crestview, Florida 32536