Summary:
In December, 2016, the City and CRA entered into Purchase and Sale Agreements (Phase 1 and Phase 2) and a Development Agreement with InVictus Development, LLC (InVictus) for its purchase and development of the Parramore Oaks project on property currently owned by the City and CRA. As InVictus was successful in obtaining 9 % Low Income Housing Tax Credits (LIHTC) through the Florida Housing Finance Corporation (FHFC) for Phase I of the Project, construction of the first 120 units is anticipated to commence in early 2018.
Pursuant to the terms of the Phase 2 Purchase and Sale Agreement, InVictus is working towards financing the second phase of the Project. InVictus applied to the FHFC for 9% LIHTC under its request for applications (RFA) 2017-113. However, as LIFT Orlando received the City’s Local Government Preference award for such round of 9% LIHTC financing, InVictus will not be successful in obtaining such financing under RFA 2017-113 and will therefore be applying for 9% LIHTC financing in the upcoming Local Government Revitalization RFA 2018-102 for which applications are due on March 8th. In order for InVictus’s application to be competitive under RFA 2018-102 and have the greatest chance of success under FHFC’s RFA standards, a funding commitment of $491,400 from the local government is required. The Second Amendment to Development Agreement removes the $75,000 grant formerly approved by the CRA should InVictus have been successful in obtaining financing for Phase 2 through RFA 2017-113 and replaces it with a $491,400 grant from the CRA should InVictus be successful in obtaining financing through the upcoming Local Government Revitalization RFA 2018-102.
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Recommended Action:
Approve the Second Amendment to Development Agreement between the City of Orlando, CRA and InVictus Development, LLC, including an affordable housing incentive of $491,400 as indicated above, subject to review and approval of the City Attorney’s Office, authorize the Mayor and City Clerk to execute the Agreement Amendments, and authorize the Mayor/CRA Chair to sign the FHFC contribution grant form and any other necessary documents acknowledging the grant amount contemplated by the Development Agreement Amendment, as well as any other documents needed for InVictus’s RFA 2018-102 application. |