| | | | | | | |  | ITEM 1.
PUBLIC HEARING - 9:30 AM |
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| | | | | | | | | DATE: | December 7, 2021
| | DEPARTMENT: | Community Development
| | REQUESTER: | David Loveland
| | TITLE: | Authorize Issuance of Housing Finance Authority Single Family Mortgage Revenue Bonds |
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| | | | | | | | | I. | MOTION REQUESTED | | | Adopt a resolution approving a plan of finance involving the issuance of Single Family Mortgage Revenue Bonds, in one or more series, by the Housing Finance Authority of Lee County, Florida in an aggregate principal amount not to exceed $50,000,000. |
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| | | | | | | | | II. | ITEM SUMMARY | | | Authorizes the Housing Finance Authority of Lee County (HFA) to issue its Single Family Mortgage Revenue Bonds, in one or more series, in an aggregate principal amount not to exceed $50,000,000, to be used pursuant to the plan of finance specified in the attached Resolutions. While ratification of such action by the Lee County BoCC is required under Chapter 159, F.S., no financial or administrative costs accrue to Lee County.
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| | | | | | | | | III. | BACKGROUND AND IMPLICATIONS OF ACTION |
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| | | | | | | | | | A) | Board Action and Other History | | | | Purpose of the Housing Finance Authority of Lee County, Florida ("HFA"): The HFA was created in 1981 by the Lee County Board of County Commissioners ("BOCC") in response to the shortage of affordable housing and deficiency in capital investment in such housing. The HFA encourages private investment and stimulation of construction and rehabilitation of housing through the use of public financing and provision of low-cost loans to purchase affordable housing, and through agreement now serves multiple counties. The BOCC has "oversight" of the HFA only as a result of their appointment of the HFA Board Members. The appointed Board Members operate the HFA.
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| | | | | | | | | | D) | Analysis | | | | HFA Funding Sources: The HFA is self-financed from fees generated by issuance of bonds and earnings from its invested funds. The Lee County BOCC has not provided funding to the HFA and will not be providing funding as the result of this action. Bonds issued by the HFA do not constitute a debt to the County nor is the County liable by reason of their issuance.
Requested Action:
On October 28, 2021, the HFA adopted a Resolution approving a plan of finance for issuance of its Single Family Mortgage Revenue Bonds in an aggregate principal amount not to exceed $50,000,000, in one or more series, to:
(i) purchase federally insured or guaranteed mortgage loans originated by participating local lending institutions to finance or refinance the purchase of new or existing owner-occupied single family residences situated within Lee County, Florida and/or other Florida Counties as authorized by Chapter 159, Part IV, Florida Statutes, as amended, and owned by persons or families of low, moderate of middle income;
(ii) purchase securities from a master servicer evidencing interests in or backed by a pool of such mortgage loans, including, without limitation, securities issued by the federal government or agencies thereof;
(iii) be used in conjunction with a mortgage credit certificate program; and/or
(iv) be applied toward multifamily housing.
The resolution also authorized for single family revenue bonds to be used in connection with mortgage credit certificate authority and/or multifamily revenue bonds. Under this offering, the Lee County Board of Commissioners will have no financial or administrative cost.
The Lee County BOCC must adopt a resolution in order for bonds or mortgage credit certificates to be issued by the HFA pursuant to Ch. 159, F.S. and Section 147(f) of the Internal Revenue Code of 1986. The Resolution must provide the following:
1. Approves the plan of finance and issuance of bonds by the Housing Finance Authority of Lee County, Florida.
2. Ratifies the actions of the Housing Finance Authority of Lee County, Florida, including conducting the Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing held on October 28, 2021.
3. Approves the use of the single family bond allocation.
Ratification of such action by the BOCC is required under Florida Statutes Chapter 159 because the HFA was first established in Lee County, even though it now serves multiple counties.
In accordance with 159.612(4) F.S. "The bonds issued pursuant to the provisions hereof, and the bonds shall so state on their face, shall not be a debt of the county or the state, or any political subdivision thereof; and neither the county, nor any state or political subdivision thereof, shall be liable thereon; nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of the housing finance authority."
Attachments:
• Proposed Resolution by the Lee County Board of County Commissioners.
• Resolution No. 21-03 of Housing Finance Authority of Lee County, Florida of October 28, 2021.
• Copy of approved Minutes of Housing Finance Authority of Lee County, Florida of October 28, 2021 authorizing the proposed issuance of Single Family Mortgage Revenue Bonds not to exceed $50,000,000.
• TEFRA Minutes of Housing Finance Authority of Lee County of October 28, 2021.
• Affidavit of Publication for Public Hearing in Lee County, Florida held on October 28, 2021. |
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| | | | | | | | | | A) | Current year dollar amount of item:
| No funding required. | | | B) | Is this item approved in the current budget? | N/A | | | C) | Is this a revenue or expense item? | N/A | | | D) | Is this Discretionary or Mandatory? | Discretionary | | | E) | Will this item impact future budgets?
If yes, please include reasons in III(D) above.
| No | | | F) | Fund:
Program:
Project:
Account Strings: | | | G) | Fund Type? | N/A | | | H) | Comments:
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| REVIEWERS: | | Department | Reviewer | Action | Date | | Community Development | Loveland, David | Approved | 11/17/2021 - 11:17 AM | | Budget Services | Henkel, Anne | Approved | 11/18/2021 - 11:01 AM | | Budget Services | Winton, Peter | Approved | 11/18/2021 - 11:37 AM | | County Attorney | Fraser, Andrea | Approved | 11/18/2021 - 11:59 AM | | County Manager | Salyer, Glen | Approved | 11/19/2021 - 9:05 AM |
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