Submitted By: Roberto Ellis
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve an Affordable Housing Incentive Fund disbursement to Madison Oaks West, LLC for an affordable housing project to be located at the West Oak Development on NW 21st Avenue in an amount not to exceed $210,900
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Madison Oaks West, LLC (“Developer”) has applied for Affordable Housing Incentive Funds (AHIF) to support the construction of 96 housing units at the West Oak Development on NW 21st Avenue. All 96 units in the Madison Oaks West development will meet the City’s affordable housing requirements outlined in the Land Development Regulations. Features to be provided on the property include a clubhouse, fitness room, and internet café. Given the immediate need for this type of housing product, the internal review board has recommended the distribution of housing incentive funds to offset development costs.
FINDINGS AND CONCLUSIONS:
The Developer will make the housing units available for rental to low-income families over a 10-year period. The proposed affordable housing agreement will ensure the developer retains at least 38 units of the 96-unit development for affordable housing. The unit mix will include 24 one-bedrooms, 54 two-bedrooms, and 18 three-bedrooms. Monthly rents will range from $460 to $970 based on the unit. Building permits for the project were conditionally approved and site plans are currently being reviewed. The Developer will construct buildings totaling approximately 91,000 Sq ft. The value of the project is estimated at $13,000,000.
The proposed Madison Oaks West site is situated on the northern portion of the West Oak Development. The project will be assigned an address upon completion and dedication of the road being constructed. This project is expected to be completed no later than December 2025.
The City’s Land Development Regulations offer an incentive of up to $10,000 available for each eligible dwelling unit; the incentive can be applied towards a maximum of 40% of the total units constructed or rehabilitated in a project. Staff is proposing an incentive of up to $5,550 per eligible unit totaling an amount not to exceed $210,900.
The City will place a lien on the property stipulating the 10-year affordable requirement of Sec. 106-105(f) of the City’s Land Development Regulations. The Developer has also provided a written statement committing to pay back housing incentive funds if units intended to be affordable housing do not meet the definition of affordable housing any time in the 10 years after issuance of a certificate of occupancy.
FISCAL IMPACT:
The incentive payment shall not exceed $210,900 and the funding will be budgeted in FY25 in account 001-016-064-554-55-82010.
The Affordable Housing Incentive Fund balance is $1,267,917.44, including encumbrances of $460,000 for Madison Oaks East, $200,000 for Silver Pointe Apartments, and $2,500 for a single-family rehabilitation project.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton
ALTERNATIVE:
• Approve with changes
• Table
• Deny