Pursuant to Chapter 13, Section 7 of the Charter of the City of Orlando, notice was given in the Orlando Sentinel regarding this hearing concerning the proposed disposition by the City of Orlando of Lakeside Village and Bordeaux I & II Apartment complexes located at 1740, 1742, and 1770 Mercy Drive. See attached Location Map.
FNMA foreclosed and took control of the properties in 2013. The properties remained unrentable, vacant, and boarded up in varying degrees of uninhabitable condition. In an effort to alleviate the unprecedented blight in the neighborhood, the City purchased the three apartment complexes from FNMA in 2015 for a negotiated price of $2,627,253. The three properties were appraised as improved for a total of $2,539,000 with a land value of $1,270,000. The apartment buildings were in need of considerable attention to deferred maintenance, repairs, upgrades, rehabilitation, replacements, and likely demolition.
In the summer of 2015, the City solicited proposals from parties interested in redeveloping the properties. Goals included increasing the inventory of safe, affordable housing to serve low and moderate income households; increasing the inventory of permanent supportive housing; and to foster community development that will enhance the surrounding neighborhoods. Ability Housing "Ability" submitted a proposal that matches the City's goals. The attached Purchase and Sale Agreement is for acquisition and redevelopment of the property and the price is proposed to be for no less than the underlying land value of $1,270,000. Ability intends to finance the project with equity from a Low Income Housing Tax Credit allocation that, due to restrictions, limits the purchase price to the value of the land.
Ability will be responsible for all maintenance, security, insurance, and utilities within 30 days after the effective date of the contract. Ability will have a 180 day due diligence period, after which time they will continue to be responsible for all maintenance, security, insurance, and utilities.