Submitted By: James Haynes
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Presentation By: James Haynes
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Department: Community Development Services
STAFF RECOMMENDATION (Motion Ready):
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Approve Affordable Housing Agreement with Gainesville Neighborhood Housing and Development Corporation, and the donation of property located at 220 NW 19th Avenue (Parcel ID: 2260-127-002) to construct and sell an affordable housing unit in West Ocala
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In April 2023, in its annual strategic planning session, the Ocala City Council established addressing the affordable housing shortage as one of its major strategic initiatives. In response to this initiative, City staff formed an Affordable Housing Initiative Team to develop ideas and implement strategies to engage for-profit and not-for-profit developers in developing single-family and multi-family affordable housing projects. The initial “surplus lots” list was established, and an infill strategy was initiated to build single-family structures on scattered sites.
By and through Resolution 2023-40, adopted by City Council on September 19, 2023, the City currently holds an inventory of vacant lots located throughout the city for which it intends to offer for sale to qualified for-profit and non-profit developers, builders, partnerships and/or agencies for the purposes of developing and constructing new affordable housing units.
FINDINGS AND CONCLUSIONS:
Gainesville Neighborhood Housing and Development Corporation (NHDC) is a not-for-profit provider of housing services including housing development, new construction, housing rehabilitation, rental properties, financial fitness, and home buyer education. NHDC has a long history of partnering with Marion County Community Services, managing their Neighborhood Stabilization Program (NSP-3), and with the City and County, providing new homebuyer classes to first-time homeowners. NHDC is also one of the few not-for-profit developers in the area. NHDC builds new, energy-efficient, high-quality homes for those in need of affordable and attainable housing. Its staff has years of experience in affordable housing and successfully developing and managing affordable properties throughout Alachua County.
Under new leadership, NHDC looks to partner with the City of Ocala in producing quality, affordable, attainable housing units for families at or below 80 percent of the Marion County Area Median Income (AMI). Staff recommends approval.
The proposed purchase price consists of the sum of one dollar, along with NHDC’s performance of the requirements under the agreement. The City will provide a City Incentive of $9,519 in the form of a property donation. This amount represents the fair market/just value ($9,520) of the property as determined by the Marion County Property Appraiser (MCPA), less the monetary portion of the purchase price ($1).
The NHDC will be required to construct at least one single-family residential home with a minimum of 900 square feet of livable area and include 2 bedrooms and 2 bathrooms. The parcel is located at 220 NW 19th Avenue (Parcel ID: 2260-127-002). The attached agreement set out the responsibilities of NHDC and the City for successful completion of the project. Staff recommends approval.
FISCAL IMPACT:
This property will be added to the tax roll and connected to City electric, water, and sewer services if approved.
PROCUREMENT REVIEW:
The Affordable Housing Agreement has been reviewed by the Procurement and Contracting Officer in accordance with City policy.
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