Submitted By: James Haynes
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Presentation By: James Haynes
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Department: Community Development Services
FORMAL TITLE:
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Allocation from the City of Ocala’s Affordable Housing Fund to support the proposed Magnolia Terrace multi-family development totaling $84,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Magnolia Terrace and the Madison Oaks East affordable housing projects were presented to the City of Ocala’s Affordable Housing Advisory Committee (AHAC) on March 26, 2025, for a recommendation to the City Council to support their application for a 9 percent Low Income Housing Tax Credit (LIHTC). The AHAC voted three to two to recommend the Madison Oaks East project to the City Council for local support in the 9 percent tax credit competition (only one project per jurisdiction may be supported for the local support bonus points in the application).
On June 3, 2025, the Magnolia Terrace and the Madison Oaks East affordable housing projects were presented to the City Council. Council voted unanimously to continue the City’s support of the Madison Oaks East project for the fifth year.
FINDINGS AND CONCLUSIONS:
On October 2, 2025, the Florida Housing Finance Corporation issued RFA 2025-212 (Housing Credit Financing to Provide Affordable Multifamily Rental Housing That is a Part of Local Revitalization Initiatives). To qualify, the proposed property must be within a local revitalization area, and applicants must state the amount of cash loans, cash grants, and/or equity from local government entities. If the qualifying financial assistance sources are equal to at least 3 percent of the applicant’s Eligible Housing Credit Request Amount, the applicant will receive a funding preference.
On September 24, 2025, staff provided updated information to the AHAC concerning the Magnolia Terrace project, including the developer's intent to apply for funding through RFA 2025-212. The developer wanted to communicate to the committee that the project would pivot from an elderly housing project to a family affordable housing project to meet the criteria of the RFA. However, elderly residents would still be eligible to apply to live there.
The committee reviewed the information and voiced its support for this project, indicating that it, along with Madison Oaks East, and other proposed affordable housing projects could bring needed affordable units online in the community.
The property qualifies for the RFA, as it lies within the West Ocala Vision and Community Plan area, which was adopted December 20, 2011, via Resolution 2012-20. The developer intends to apply for $2,800,000 in funding through the RFA and, therefore, is seeking a commitment of $84,000 from the City of Ocala’s Affordable Housing Fund.
Staff recommends approval.
FISCAL IMPACT:
The $84,000 is available in the Affordable Housing Incentive Fund account 112-016-064-554-55-82010.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
• Approve
• Approve with Changes
• Table
• Deny