Bill Type and Number:
Ordinance 2002-579Sponsor: The Council President at the request of the Duval County Housing Finance Authority
Date of Introduction: June 11, 2002
Committee(s) of Reference: F; RCD
Date of Analysis: June 14, 2002
Type of Action: Appropriation
Bill Summary: This legislation appropriates $1,375,000 of the Duval County Housing Finance Authority Fund Balance account to fund and establish a loan in favor of Vestcor Fund XXII, LTD. The funding in this loan is for the construction and development of Gregory Cove Apartments. This complex will be 288 units of affordable housing in Arlington, located on Edenfield Road, 1/4 mile east of University Blvd, North, in Council District 1.
Vestcor Fund XX, Ltd. is a limited partnership whose 51% general partner if First Coast Family and Housing Foundation, a 501©(3) not for profit corporation. The 49% partner is Vestcor Development Corporation. Because of the legal and financial nature of the partnership being a combination of not for profit and for profit entities, acquiring a letter of credit security from the banking community is not possible. DCHFA supports this loan because 286 of the apartments are for families earning 60% of the area medium income, including 44 units reserved for those citizens earning 28% or less of the area medium income.
Background Information: Ordinance 2000-1228-E established a revolving fund for local government support
of Housing Credits (formerly Low Income Housing Tax Credits) project applications. Certain loan criteria, especially letter of credit security, were included in this legislation. Because of the legal and banking difficulties created by the not for profit and for profit combination in this particular project, acquiring a letter of credit is not possible. DCHFA endorses this project, feeling that the Gregory Cove Apartments will be a significant addition to the City's affordable housing inventory.
Policy Impact Area: Duval County Housing Finance Authority/Affordable Housing
Fiscal Impact: The bill appropriates $1,375,000 in DCHFA Fund Balance.
Analyst: Jackson