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NALHFA Member Spotlight: Housing Finance Authority of Miami-Dade County

Posted By Administration, Monday, July 30, 2018
Updated: Friday, July 27, 2018

During its 2018 Annual Conference, NALHFA presented the Housing Finance Authority of Miami-Dade County with the HOME Excellence award in recognition of the Villa Capri development. Overall, Villa Capri is a 477-unit affordable rental community, located in the Naranja neighborhood of unincorporated Miami-Dade County. Located 10 miles north of the entrance to the Florida Keys, this neighborhood was ground zero for Hurricane Andrew in 1992, which devastated all of the housing in the area. Villa Capri’s 36-acre parcel was also devastated, and replaced with what were to be temporary FEMA trailers. The trailers remained for over 7 years, and in 2005, the site was purchased by the developer for what became a three-phase affordable housing planned unit development.

 

The developer rezoned the site to a low-density, 13 per acre community, which allowed for the construction of an on-site 3-acre lake which became the focal point for all three phases of Villa Capri. The first phase consisted of 140 apartment units, and was developed using federal stimulus funds of $14.5 million, local subsidy of $300,000 and tax-exempt bonds and accompanying 4% tax credits. The units include 1-, 2- and 3-bedroom flats, 100% of which are set aside for extremely-low and very-low income households.

 

The second phase of Villa Capri consists of 240 garden style units, and utilized $15 million of state, federal and local funds, including NSP2 and FHLB funds, along with New Issue/stimulus tax-exempt bonds at a 2.13% interest rate. In this phase, 50% of the units were set aside for very- low income households and the remainder for households earning less than 60% of the median income. This phase also included the main clubhouse for the community, with 5,000 square feet, inclusive of a children’s activities room, internet café, fitness center and expansive social room. While the two other phases do have their own clubhouse facility, this phase’s clubhouse is the flagship clubhouse for the 477 units.

 

The last phase, delivered in 2017, consists of 117 affordable rental units, offering 5 apartments, 93 townhomes and 19 single-family four bedroom homes. The goal with this phase was to build a product that had not yet been offered to affordable housing residents. In particular, quite often larger families cannot find adequate housing for their needs. In this phase, 15% of the units were set aside for extremely-low income households, 5% for very-low income households and the remainder of the units for households earning less than 60% of the median income. Subsidy utilized included $4.32 million of competitively awarded local subsidy, along with the developer redeploying $6.5 million of its own equity garnered by paying off local subsidy prior to maturity on projects developed in prior years. Per County ordinance, a developer who is willing to pay off subsidy prior to maturity from other projects can then redeploy those prior year subsidy funds into new affordable housing. Without that $6.5 million of equity from the developer, the project would not have been able to be developed. Tax-exempt bonds and 4% tax credit were also sources for the project. The community offers a homeownership feel, with unit sizes averaging 1,500 square feet. Additionally, the clubhouse for this phase will be utilized for local community meetings and residents’ parties, as it was designed with one large social room for the residents.

 

Financial Resources

The HFA issued the tax-exempt Multifamily Mortgage Revenue Bonds (“MMRB”) in the amount of $13,500,000. RBC Capital Markets served as placement agent for the borrower in connection with the private placement of the bonds to JP Morgan Chase. The HFA loaned the Bond proceeds to Villa Capri II Associates, Ltd. to finance a portion of the construction of Villa Capri II Apartments. A portion of the Bonds were redeemed at construction completion. Upon meeting the conditions required for permanent financing, the Construction Loan converted to a Permanent Loan in an amount not to exceed $5,400,000. The construction term was written for 24 months with the availability of one six-month extension. The construction period interest rate was the one month LIBOR rate plus 200 basis points adjusted monthly and payable monthly. This interest rate was based on an anticipated 15 month construction period with an average disbursement level of 70% of the First Mortgage amount during the 15 month period. The permanent period term of 15 years included a 30-year amortization and a fixed base rate anticipated to be 5.32% with an 18 bps cushion for market increases between start up and construction loan closing for an “all-in” rate of 5.50%.

 

The development was funded from the following sources:

 

Source Lender Construction Permanent

First Mortgage: HFA of Miami-Dade Bonds, JP Morgan Chase Bank, N.A. $13,500,000

Second Mortgage: 2014 Miami-Dade Surtax Loan, Miami‐Dade County 1,775,000

Third Mortgage: Miami-Dade HOME Loan, Miami‐Dade County 2,320,000

Fourth Mortgage: Miami-Dade Subsidy Assumption, Miami‐Dade PHCD 6,500,000

Housing Credit Equity Stratford Capital Group 1,696,000

Deferred Developer Fee CSG Development Services II, LLC 698,826

Total $26,489,826

 

Villa Capri has provided a lake where there once were trailers. Its club house is open to the community which provided outreach and community involvement. The project has helped to stabilize the neighborhood and increase high quality affordable housing which also revitalizes area and spurs economic development where there was a down turn following hurricane Andrew. Villa Capri has become a magnet for future quality affording housing as well homeownership development.

 

Congratulations to Housing Finance Authority of Miami-Dade County for their outstanding work on the Villa Capri development!

 

Does your organization have a success story to share? Email NALHFA Policy Director, Heather Voorman at hvoorman@nalhfa.org.

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