The State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on deed to local governments for the development and maintenance of affordable housing.
Under the William E. Sadowski Affordable Housing Act, the Florida Housing Finance Corporation receives funding for the maintenance and development of affordable housing. The Florida Housing Finance Corporation has a Multifamily Rental Program that offers financing in the form of zero or low-interest loans to builders of affordable housing for new construction or substantial rehabilitation of multifamily rental units.
The Low Income Housing Tax Credit Program, under the Florida Housing Finance Corporation Multifamily Rental Program, provides for-profit and non-profit organizations with equity based on a dollar-for-dollar reduction in federal tax liability for investors, in exchange for the acquisition and rehabilitation or new construction of affordable rental housing units.
As a requirement for the Florida Housing Finance Corporation Low Income Housing Tax Credit Program, a developer must obtain a local tax incentive grant (9% of the total construction value) in order to qualify for funding.
The Riviera Beach Housing Authority desires to apply for a Low Income Housing Tax Credit with the Florida Housing Corporation for a 79 unit affordable rental unit development referred to as “Heron Estates”, attached hereto as Exhibit A, on a parcel of land known locally as 2003 W. 17th Court (parcel control number 56-43-42-31-01-000-0010).
The Riviera Beach Housing Authority (RBHA) desires to seek a local tax incentive grant from the City for $551,000 (local match) to be used for the Florida Housing Finance Corporation Low Income Housing Tax Credit Program. It is important to note that the Riviera Beach Housing Authority is applying for additional points on their grant application under the Local Government Areas of Opportunity Funding Points, which requires more than the 9% of the total construction value local incentive tax grant. To receive the additional points, the RBHA must demonstrate a high level of government interest in the proposed development by committing to a minimum qualifying amount of $551,000.
The local tax incentive grant from the City is contingent upon the Florida Housing Finance Corporation's approval of the RBHA's Heron Estates application. Upon approval of the RBHA’s Heron Estates application from the Florida Housing Finance Corporation, the City will allocate funds for the $551,000 local tax incentive grant from the General Fund.
Through a partnership with the Riviera Beach Community Redevelopment Agency (CRA), the Riviera Beach Housing Authority has committed to directly replenishing or re-investing the $551,000 back into Riviera Beach CRA. The City would have normally allocated this $551,000 fund to the Riviera Beach CRA by an Interlocal Agreement.
Such allocations of funds to the Riviera Beach Housing Authority is contingent upon the execution of an Interlocal Agreement between the City of Riviera Beach, the Riviera Beach Housing Authority, and the Riviera Beach Community Redevelopment Agency.