This funding agreement between the City of Orlando, Lift, and LOCL provides Lift $1,250,000 in CDBG funding to support the demolition of the environmentally contaminated, dilapidated, vacant and boarded up apartment buildings known as the Washington Shores Apartments located at 2021 Orange Center Blvd.

On April 20, 2015, the Economic Development Department brought forward an agenda item to City Council requesting approval of a Development Agreement between the City and LOCL. Under the terms of that Agreement, the City agreed to provide $500,000 as a local government contribution in support of LOCL’s application for Low Income Housing Tax Credits to support construction of Phase 1 of a mixed income, multifamily residential development. The City’s commitment was provided to support the removal of the existing blighted structures. The development was awarded Low Income Housing Tax Credits by the Florida Housing Finance Corporation. Phase 1 of the development will consist of 200 affordable housing units with a set aside of units for chronically homeless and units affordable to households at the low and moderate income levels. 

The original demolition cost associated with Phase 1 was based on the environmental report provided by Fannie Mae.  Subsequent analysis found the level of environmental contamination to be greater than originally estimated resulting in an increased cost for remediation work. To move forward with the demolition of the existing structures, the City is providing a total of $1,250,000 in CDBG funds towards the environmental remediation. This contribution satisfies the City’s commitment to LOCL as provided in the Development Agreement, and qualifies under CDBG regulations as benefit to low and moderate income housing, assuming the planned affordable units are built.  Should the planned housing not be constructed the City will requalify the removal of environmental contamination as elimination of slum and blighting conditions under CDBG rules.

Consistent with other City projects using HUD funds, due to the complex nature of the financing of Low Income Housing Tax Credit projects, in the unlikely event if the owner defaults, or if the property has to be liquidated to repay all of the funding sources, it is doubtful that the City will be able to recover its investment from the tax credit consortium or from the sale of the property.