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193.1 Subject: Orlando Housing Ready Project Account
Objective:
The Orlando Housing Ready Project is one of the City’s significant responses to increase the affordable housing stock to address the financial burden affecting our most vulnerable populations
by assemblage of additional financial resources from sources other than the U.S. Department of Housing and Urban Development (HUD) and the State of Florida.
Authority:
This procedure adopted by City Council August 10, 2020, Item A-5.
Direction:
Housing and Community Development (HCD) Director under the supervision of the Chief Administrative Officer or designee.
Functions:
Funds may be granted or loaned and are restricted to the creation or retention of the affordable and workforce housing stock and capital investments, such as rehabilitation, property
acquisition, construction, and directly related infrastructure only. Funds may not be used for any other purposes, such as, but not limited to, operating costs, maintenance, security,
job creation, workforce development, economic development, commercial ventures, or any similar or like purposes.
Project funds are to be dedicated to medium or large-scale housing projects that have a meaningful impact on expanding or preserving the affordable and workforce housing stock. Medium
is defined as a minimum of ten or more units.
Single-family rehabilitation projects are ineligible for this funding. Federal and State funding will be dedicated to this purpose. Typical funding resources for owner-occupied rehabilitation
include SHIP and HOME.
Funds may be used to support medium and large-scale projects funded by 9% and 4% Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, and New Markets Tax Credits. In addition,
funds may be used to assist affordable and workforce projects within the “Opportunity Zone” federal tax incentive program, as well as other programs that are deemed appropriate and follow
the principles outlined in this document. These projects often leverage other sources of funding, such as private equity, in the development of affordable housing, thus expanding opportunity.
Funds may be used with other compatible public, private, or non-profit funds designed to provide low-cost debt, equity and grants in a variety of configurations to developers to incentivize
them to build medium and larger scale Housing Ready projects.
Funds may be contributed to public, private, and non-profit (including land trusts) entities solely for the development or preservation of medium and large-scale affordable and workforce
housing projects. Groups receiving funds are required to have experience in providing and managing medium/large-scale affordable housing projects. Successful applicants shall demonstrate
the financial capacity to undertake projects such as these and provide recent audits to show safety and soundness. If proposing a LIHTC project, a participating entity must have completed
at least 3 affordable housing projects since January 1, 2000, at least one of which was a LIHTC project completed since January 1, 2010.
Currently, the greatest housing need is to provide housing for those income levels between 0-30% Area Median Income (AMI). Each project must make a concerted effort to provide some units
for those populations.
Fees charged by developers will be negotiated based on reasonableness and program variables
The minimum affordability period for each project will be dependent on the dollar amount of funds provided, but no less than 20 years.
Funds may be used by City staff for the purpose of providing technical assistance, reviewing proposals (including professional expertise), and monitoring project compliance.
The Housing Department will make recommendations to the Orlando City Council. Based upon recommendations, the Council will make a decision on whether, and to whom, to award Housing Ready
project funds.
The City retains the right to refuse the use of this funding for any project for any reason. When awarding these funds, the City must abide by these guiding principles and any other
applicable rules and regulations. All decisions are final and are not subject to appeal.
Forms:
As developed from time to time by the Housing and Community Development Department and the City Attorney’s Office.
Committee Responsibilities:
As indicated above.
Reference:
Procedure adopted by City Council August 10, 2020, Item A-5.
Effective Date:
This procedure effective August 10, 2020.
Housing and Community Development DepartmentSection 193.1