Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-55, Public Hearing, Authorizing the Conveyance of Six (6) Residential Real Property Parcels to the Community Land Trust of Palm Beach County and the Treasure Coast, Inc., a Florida Not-for-Profit Corporation, for the Sale to the Approved Applicants of the PSL Homeownership Program.
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Submitted By: Alessandra “Alex” Tasca, Deputy Director, Neighborhood Services Department (NSD)
Strategic Plan Link: The City’s Mission to be responsive to our community.
Executive Summary (General Business): As part of the City’s PSL Homeownership Program, this Ordinance approves the conveyance of residential real property parcels located at: 732 SW Bond Rd., 1549 SW Janette Ave., 1581 SW Byron St., 702 SW Duxbury Ave., 2619 SW Halissee St., and 3881 SW McCrory St. (the “Subject Parcels”), on which six single-family homes were recently built by the City via the Neighborhood Stabilization Program (NSP). The effectiveness of the Ordinance and subsequent conveyance will be contingent on: 1.) the newly constructed homes being sold to approved recipients by the Community Land Trust of Palm Beach County and the Treasure Coast, Inc., a Florida not-for-profit corporation (CLT of PBC&TC); and 2.) the land being owned by the CLT of PBC&TC, as part of the City’s approved CLT of PBC&TC Program via a Ground Lease (included as an attachment), per the contractual agreement between the City and the CLT of PBC&TC.
Presentation Information: Alex Tasca, Deputy Director of Neighborhood Services, will be available to provide a brief overview of the project and answer any questions, as needed.
Staff Recommendation: Move that the Council approve the Ordinance authorizing the conveyance of the Subject Parcels to the Community Land Trust of Palm Beach County and the Treasure Coast, Inc., a Florida not-for-profit corporation, for the sale of the newly constructed homes on the Subject Parcels to the approved applicants of the PSL Homeownership Program.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance authorizing the conveyance of the Subject Parcels to the Community Land Trust of Palm Beach County and the Treasure Coast, Inc., a Florida not-for-profit corporation, as amended.
2. Move that the Council not approve the recommendation and provide staff direction.
Background: The Subject Parcels assigned to this project were existing City-owned parcels in the City’s inventory of land. The Subject Parcels were determined to not be needed for the original departments for which they were dedicated, and all City Departments voluntarily relinquished or declared surplus the Subject Parcels which were subsequently assigned to NSD for this NSP project.
The City of Port St. Lucie’s Neighborhood Services Department, proposed to construct single-family homes on the Subject Parcels that would be earmarked for affordable housing, as part of the last phase in the 15-year NSP Grant. The project follows NSP rules and regulations and complies with the grant requirements. The City approved to distribute these newly constructed homes under the establishment of the Pilot CLT of PBC&TC Program otherwise known as PSL’s Homeownership Program. In collaboration with CLT of PBC&TC the Subject Parcels will be managed by said not-for-profit organization and governed by a Ground Lease, lasting in perpetuity, and the newly constructed, single-family, homes will be sold as part of the program (approved by City Council via Agenda Item #2021-102 on Feb. 8, 2021, and Agenda Item #2021-974 on Nov. 22, 2021). The program is part of the contract agreement between the City and CLT of PBC&TC and more specifically, accomplishes specific goals and set-asides that are required by the NSP. Through this program the City will be able to finalize the last phases of the NSP and close out the grants as requested by the Department of Housing and Urban Development (HUD).
The City of Port St. Lucie donated the Subject Parcels to the program and the construction was entirely funded by NSP grant dollars. The newly constructed, single-family homes are all the same in size and all have the same features consisting of ICF/insulating concrete blocks, 1,400 square feet under air, with a 2-car garage equal to 400 square feet, three (3) bedrooms, two (2) bathrooms, with estimated values of approximately $350,000. The homes were constructed in accordance with the City’s contracts with the builder (approved by City Council on October 28, 2019, in Agenda Item #2019-899) and in compliance with the NSP grant.
An “Open House” and two (2) application information sessions were held in January 2022 and advertised City-wide in preparation of the opening of the application process for the homes. The first week of February the application portal opened to collect interested applicants. Both City and CLT of PBC&TC staff were available in January and February for applicant questions and guidance. Over 400 applications were received by PSL residents or PSL workforce members with interest in being sold an affordable home with a price commensurate to their income. All applications were input into an independent, electronic lottery system and numbered in a random sequence giving all applicants an equal opportunity to be approved for the program. Applicants were contacted in that order and provided instructions as to how to complete the application and be approved for the purchase of one of the homes. The sale of the homes must comply with the City’s NSP grant and therefore, two (2) of the homes must be sold to households of 50% area median income or below and four (4) must be sold to households of 80% area median income or below. All applicants are subject to bank approval for a CLT of PBC&TC mortgage. If an applicant did not qualify, the next applicant was contacted, and so forth until all of the homes were assigned for sale per the rules and regulations established by the NSP grant program. Following this project, the City will receive program income from the sale of the homes and additional homes may be constructed by repeating the entire project process. Staff will look to continue the program in subsequent years as part of the City’s affordable housing and/or workforce housing program in compliance with Florida State Statutes, if the pilot project is deemed successful. Developers continue to show interest in partnering with this City on this type of project. A new round of applications will need to be solicited for any future projects that are identified. No qualified applicants remain on file for future programs, no waitlists are to be maintained.
Issues/Analysis: This Ordinance, once approved, will facilitate the completion and closeout of the City’s NSP grant per HUD rules and regulations. All the necessary steps to execute the final phase of the project and convey the newly constructed homes to the approved applicants have been prepared.
Financial Information: The future owners will agree to participate in the program and will be trained via mandatory homeownership courses tailor made for the City’s program as to all of the implications associated with the purchase of these properties. The program is entirely funded by NSP grant dollars and NSP program income. The City will receive program income from the sale of the properties that is considered part of the NSP Fund.
Special Consideration: the Subject Parcels will remain part of the City’s program in perpetuity and be considered permanent affordable housing stock.
Location of Project: 732 SW Bond Rd., 1549 SW Janette Ave., 1581 SW Byron St., 702 SW Duxbury Ave., 2619 SW Halissee St., and 3881 SW McCrory St.
Attachments:
1. Proposed Ordinance
2. Exhibit A to Ordinance - the Subject Parcels
3. Ground Lease that CLT of PBC&TC will enter into with qualified applicants
4. Appraisals for the Subject Parcels
5. Property Cards for the Subject Parcels
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 7946, 7947, 7948, 7949, 7950, and 7951.
Legal Sufficiency Review:
Reviewed by Margaret Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.