Submitted By: Aubrey Hale
Presentation By: Aubrey Hale
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Department: Growth Management
FORMAL TITLE:
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Ordinance 2026-27 to amend Chapter 106, Section 105 - Housing Incentive Fund revising criteria pertaining to affordable housing loan programs including length of terms, applicability, administrative process, and interest rates
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Chapter 106 - Planning, Housing, and Development, Article IV - Affordable Housing establishes a housing incentive fund that helps offset permit and impact fees for dwelling units that qualify under the definition of affordable housing. Additionally, the code refers to a loan program with limited or restrictive criteria.
Federal and state housing programs provide resources to support greater affordable housing access within communities but are continuously evolving. The current City code reflects short-term loans with zero percent interest. This provides for a faster return to the housing incentive fund but does not provide flexibility for projects that capitalize on federal and state programs that often require longer terms for financing and affordability provisions.
FINDINGS AND CONCLUSIONS:
Staff finds the following amendment provides greater flexibility and guidance pertaining to loan programs available through the housing incentive fund:
• Clarify how loan programs are administered and recognize the need to amend on a case-by-case basis.
• Establishment of a Short-Term Loan Program
o Mature 10 years or less from the effective date of the loan;
o Maximum interest rate established by City Council ranging from zero percent to half of the U.S. Prime Interest Rate.
• Establishment of a Long-Term Loan Program
o Mature more than 10 years from the loan effective date;
o Loan terms shall not exceed 30 years.
o Available to assist with federal, state, and local affordable housing programs;
o Interest rate established by City Council ranging from half of the U.S. Prime Interest Rate to the U.S. Prime Interest Rate;
o Loans are only available for assistance in other programs or initiatives and not sole funding source of a project.
• Administrative authority to the City Manager or designee for final signatures and approval of loan documents associated with the loan terms and conditions of the code amendment.
The landscape of affordable housing is continuously evolving due to changes in federal and state housing programs. The code amendment provides greater flexibility and clarity in how City loan programs can operate and coordinate with other housing initiatives. The proposed changes support the City’s strategic initiative to provide affordable housing opportunities and are needed to help make building affordable housing more competitive.
Staff recommends approval of the code amendment.
FISCAL IMPACT:
N/A
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This ordinance has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
ORDINANCE 2026-27
AN ORDINANCE OF THE CITY OF OCALA, FLORIDA, AMENDING CHAPTER 106 ARTICLE IV (AFFORDABLE HOUSING), CODE OF ORDINANCES; AMENDING SECTION 106-105 BY REVISING CRITERIA PERTAINING TO AFFORDABLE HOUSING LOAN PROGRAMS INCLUDING LENGTH OF TERMS, APPLICABILITY, ADMINISTRATIVE PROCESS, AND INTEREST RATES; PROVIDING DIRECTION TO STAFF; REPEALING INCONSISTENT AND/OR CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY OF ORDINANCE PROVISIONS; PROVIDING FOR MODIFICATIONS ARISING FROM CONSIDERATION AT A PUBLIC HEARING; PROVIDING DIRECTION TO THE CODIFIER; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session, as follows:
Section 1. That Section 106-105, Code of Ordinances, City of Ocala, Florida is hereby amended to read as follows:
(i) Affordable housing loans. When funding is available, the City may establish a loan program to help finance the creation or preservation of affordable housing units. The City Council shall have full discretion with regard to the administration of said loan program. Modifications to the loan program as provided for herein may be made by City Council following a public hearing held to consider the advisability of any such modification. The loan program shall address both short-term loans and long-term loans, as provided for in subsections i(1) and i(2) below and herein. Interest rates for the loan program may vary from zero percent (0%) to less than the U.S. Prime Rate, as may be adjusted from time to time. Generally, loans with a zero or very low interest rates will have a shorter duration while loans with a longer term may have higher interest rates, closer to said U.S. Prime Rate. The City Manager or designee shall have authority to approve and sign final loan documents associated with the terms of the loan program.
1. Short terms loans shall:
A. Mature 10 years or less from their effective date; and
B. Have a maximum interest rate established by City Council ranging from zero percent (0%) to half of the U.S. Prime Interest Rate.
2. Long term loans shall:
A. Mature more than 10 years from their effective date;
B. Not exceed 30 years;
C. Be made available to assist with grant opportunities and federal, state or other local affordable housing programs; and
D. Have an interest rate established by City Council which ranges from half of the U.S. Prime Interest Rate to the U.S. Prime Interest Rate.
Long term loans as provided for in this subsection shall not be the sole funding source for an affordable housing project.
Section 2. Direction to Staff.
The City Council of the City of Ocala, Florida directs staff to take any and all steps necessary to effectuate the adoption and implementation of this ordinance; and all other matters as provided for above and herein as well as to ensure the orderly and effective administration and implementation of the intent of this ordinance and the specific matters outlined herein.
Section 3. Repealing Inconsistent and/or Conflicting Provisions.
The City Council of the City of Ocala, Florida hereby specifically repeals, to the extent of any such conflict, any and all ordinances, resolutions, policies, procedures, and/or other articles which are conflicting and/or inconsistent with this ordinance and the intent and direction provided by the City Council herein.
Section 4. Severability of Ordinance Provisions.
If any section, phrase, sentence or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, it is the intent of the City Council of the City of Ocala, Florida that (1) such portion shall be deemed a separate, distinct and independent provision; (2) such holding shall not affect the validity of the remaining portions hereof; and (3) this ordinance be adopted as though any such provision was not included herein.
Section 5. Modifications Arising from Consideration at a Public Hearing.
It is the intention of the City Council of the City of Ocala, Florida that (1) the provisions of this ordinance may be modified as a result of its consideration by the City Council of matters that may arise during the public hearing(s) at which this ordinance is considered; and (2) any such modifications shall be incorporated into the final version of this ordinance.
Section 6. Direction to the Codifier.
It is the intention of the City Council of the City of Ocala, Florida that (1) this ordinance shall become and be made a part of the Code of Ordinances, City of Ocala, Florida, (2) the sections and paragraphs of this ordinance may be renumbered or relettered in order to accomplish said intention; (3) terms or headings not affecting the intent of this ordinance may be changed to further accomplish said intention; and (4) any scrivener’s error(s) contained herein which do not affect the intent of this ordinance be corrected with the authorization of the City Manager or their designee and without the need for additional public hearings or consideration by the City Council.
Section 7. Effective Date of Ordinance.
This ordinance shall become effective immediately upon approval by the Mayor or becoming law without such approval.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved/Denied by me as Mayor of the City of Ocala, Florida, on __________________, 2026.
By: __________________________________
Ben Marciano
Mayor
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Ordinance No: 2026-XX
Introduced: Click or tap to enter a date.
Adopted: Click or tap to enter a date.
Legal Ad No: Click or tap here to enter text.