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 disbursements from the Affordable Housing Incentive Fund for Truevet Medical Solutions, LLC and Big Will Properties, LLC to support the construction of single-family homes for low to moderate income households not to exceed $60,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: The City encourages new construction and rehabilitation of affordable housing by offering housing incentives to offset development charges. These benefits are intended to promote affordable housing while maintaining quality construction and site design. Staff is proposing the disbursement of affordable housing incentive funds for applicants Truevet Medical Solutions, LLC and Big Will Properties, LLC. These incentives are provided as a reimbursement for applicable building permit and impact fee charges. The maximum incentive amount is not to exceed $20,000 per unit that is renovated or constructed.
The City will place a lien on the property, stipulating the 10-year affordable requirement of Sec. 106-105 of the City’s Land Development Regulations. The applicants are required to repay the housing incentives if units intended for affordable housing fail to meet affordable thresholds within the 10 years following the issuance of a certificate of occupancy.
FINDINGS AND CONCLUSIONS:
Truevet Medical Solutions, LLC- NW Eighth Ave. (Parcel ID: 25759-000-000)
The property owner, Truevet Medical Solutions, LLC, plans to construct one single-family home at the intersection of NW Eighth Avenue and NW 11th Street. The size of the project will be approximately 1,400 square feet containing three bedrooms, two bathrooms, and a garage. The estimated construction cost is $120,000, and completion is expected within 12 months. Please refer to the attached packet for additional project details. A disbursement in an amount not to exceed $20,000 is being recommended for this project.
Big Will Properties, LLC - 709 NW 22ND Ct. (Parcel ID: 22502-000-00)
Big Will Properties plans to construct a duplex at 709 NW 22nd Court. Each one-bedroom, one-bathroom unit will have 720 square feet of living space. Images of floor plans and elevations are provided in the attached packet. The project is currently undergoing building permit review with an estimated cost of $160,000 and is expected to be completed within 12 months of permit approval. A disbursement in an amount not to exceed $40,000 is being recommended for this project.
Both properties are currently undeveloped. The successful completion of these projects will increase ad valorem revenue and add housing options for low to moderate-income households. The Internal Review Board, composed of Growth Management and Community Development Services staff, recommended approval of the disbursements in the indicated amounts at its review meeting April 18, 2024.
FISCAL IMPACT: The funding will be disbursed from the Affordable Housing Incentive Fund, expense account (112-016-064-554-55-82010) in the fiscal year when projects are completed. The Fund’s balance is $1,549,114 which includes encumbrances of $460,000 for Madison Oaks East, $200,000 for Silver Pointe Apartments, $210,900 for Madison Oaks West, and $2,500 for a single-family rehabilitation project.
The incentive fund has a remaining unencumbered balance of $615,714, including the requested $60,000 in incentives. Once the building permits are ready to be issued, the actual impact on the incentive fund will be determined. The final permit and impact fees are estimated to be less than $60,000.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: N/A
ALTERNATIVE:
• Approve with changes
• Table
• Deny