Okaloosa County BOCC — April 21, 2015 — Reimbursement of Affordable Housing Trust Fund — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 21, 2015 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Reimbursement of Affordable Housing Trust Fund DEPARTMENT: Growth Management BCC DISTRICT: All STATEMENT OF ISSUE: In order to be in compliance with the regulations governing the State Housing Incentive Partnership (SHIP) program, it is necessary for the Board to decide the disposition of two vacant parcels purchased with SHIP program funds in 2007 which remain undeveloped at this time. BACKGROUND: In February of 2007, the Okaloosa Community Development Corporation (CDC) used State Housing Incentive Partnership (SHIP) funds to purchase 66 lots to be used for a home ownership project. These lots were purchased using the 2007 SHIP allocation, and should have been developed within three years; however, due to the great recession and collapse of the real estate market, two of the lots, lots 21 and 22 of Block 8 of The Pines subdivision, remain undeveloped. These lots are located on unpaved roads without water and sewer service and in an area with numerous foreclosures which, along with the Great Recession and still tepid market, has precluded the CDC from finding buyers or builders for the lots. Notwithstanding, in order to be in compliance with the SHIP program requirements, it is necessary for the CDC to bring resolution to this issue. After careful consideration, the CDC governing board has determined that the most appropriate action would be for the CDC to reimburse the County’s Affordable Housing Trust Fund the current quick sale value of the lots ($1,500 each as provided in the attached letter from J Watts Properties), with the difference between the current value and the original acquisition price being recorded as negative recapture in the FY 14-15 SHIP Annual Report consistent with the guidance received from the Florida Housing Finance Corporation. The lots will remain in the CDC’s ownership, and will be used for affordable housing when conditions allow. Staff has reviewed this matter with the Florida Housing Finance Corporation (the agency which administers the SHIP program at the state level), which has verified that this is an acceptable resolution to this situation. The County Attorney has reviewed the proposal and also agrees that this is an appropriate action for the County to take. OPTIONS: The Board of County Commissioners may deny the request, or may approve the CDC’s reimbursement of the County’s Affordable Housing Trust Fund the amount of $3,000 ($1,500 for each lot), thereby allowing the CDC to bring closure to this project and be in compliance with the SHIP program regulations. RECOMMENDATIONS: Staff recommends that the Board of County Commissioners approve the CDC’s reimbursement of the County’s Affordable Housing Trust Fund the amount of $3,000 ($1,500 for each lot), and that the CDC be authorized to file the necessary reports with the Florida Housing Finance Corporation and bring this issue to a close. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator