Submitted By: Edwin R. Carreras Rivera
presenter
Presentation By: Aubrey Hale
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Department: Growth Management
FORMAL TITLE:
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Budget Resolution 2026-174 to amend the Fiscal Year 2025-26 budget to appropriate funding from the Affordable Housing Incentive Fund Reserves to provide an affordable housing development loan for Madison Oaks East, LLC in the amount of $460,000
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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 established a Housing Incentive Fund under Chapter 106 - Planning, Housing, and Development to encourage new development and rehabilitation of affordable housing by offsetting development charges. The City has supported the Madison Oaks East, LLC, senior-living affordable housing project (Project) since 2019. The loan is subject to the applicant receiving incentives through the Florida Housing Finance Corporation’s (FHFC) 9 percent tax credit affordable housing program.
On June 3, 2025, the Ocala City Council voted to continue its support for the Madison Oaks East project, authorizing a letter of commitment for a $460,000 loan with its approval.
• FHFC requires local support for an application to be considered eligible for funding.
On August 18, 2026, City Council voted to adopt Ordinance 2026-27, amending Section 106-105(i) of the City Land Development Regulations to establish terms and procedures for a loan program through the Housing Incentive Fund.
FINDINGS AND CONCLUSIONS:
• Since the initial approval of the Project by City Council in 2019, $460,000 has been earmarked from the Housing Incentive Fund Reserve account.
• Madison Oaks East, LLC (Developer) was selected by FHFC for the 2025 award year to receive tax credits tied to the development of the Project. The Project will consist of approximately 102 residential dwelling units.
• Consistent with Ordinance 2026‑27 establishing loan terms and procedures, the City Manager and City Council President signed a loan agreement with Madison Oaks East, LLC on August 26, 2026. The loan is for $460,000 and must be repaid over 20 years and two months, with an annual interest rate of 3.37 percent.
o This extended term creates a manageable debt structure that ensures the financial viability of the Project while fulfilling the local funding requirements of FHFC.
• The project must remain affordable to low- and moderate-income senior households for at least 20 years from substantial completion, enforced by a recorded lien on the property.
Staff recommends approval.
FISCAL IMPACT:
Funding for this project in the amount of $460,000 has been earmarked in the Reserve for Affordable Housing (account 112-099-999-554-81-99999). This funding is currently available for appropriation.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This budget resolution will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
BUDGET RESOLUTION 2026-174
A RESOLUTION TO AMEND THE FISCAL YEAR 2025-26 BUDGET TO APPROPRIATE FUNDING FROM THE AFFORDABLE HOUSING INCENTIVE FUND RESERVES TO PROVIDE A 20-YEAR INTEREST-BEARING LOAN FOR THE MADISON OAKS EAST, LLC SENIOR LIVING AFFORDABLE HOUSING PROJECT IN THE AMOUNT OF $460,000
WHEREAS, on June 3, 2025, the City Council of the City of Ocala voted to support the Madison Oaks East, LLC project application to the Florida Housing Finance Corporation’s (FHFC) nine percent (9%) tax credit program and executed a commitment for a local government financial contribution loan in the amount of Four Hundred Sixty Thousand Dollars ($460,000); and
WHEREAS, Madison Oaks East, LLC (the "Borrower" or "Developer") was awarded tax credit financing by FHFC to develop and construct the Madison Oaks East Senior Living Affordable Housing Project (the "Project"), consisting of approximately one hundred two (102) residential dwelling units dedicated to low- and moderate-income senior households; and
WHEREAS, the City Council of the City of Ocala enacted Ordinance 2026-27, amending Chapter 106, Section 105(i) of the Code of Ordinances to establish a Long-Term Affordable Housing Loan Program authorizing loan terms maturing between ten (10) and thirty (30) years, with interest rates ranging from half of the U.S. Prime Interest Rate to the U.S. Prime Interest Rate for projects leveraging state, federal, or local programs; and
WHEREAS, Ordinance 2026-27 delegates administrative authority to the City Manager or administrative designee to approve, finalize, and execute all necessary loan agreements and closing documents and sign final loan documents associated with the terms of the Affordable Housing Loan Program; and
WHEREAS, the City Council of the City of Ocala has determined that issuing a long-term interest-bearing loan pursuant to Section 106-105(i)(2) supports long-term commercial feasibility, and fulfills the financial commitment required by FHFC; and
WHEREAS, pursuant to the authority delegated under Ordinance 2026-27, the City Manager and the President of the City Council executed an interest-bearing long-term loan agreement in the amount of $460,000 with Madison Oaks East, LLC on August 26, 2026, establishing a sustainable debt structure that ensures project commercial feasibility and satisfies FHFC funding requirements; and
WHEREAS, the Borrower formally represented and reaffirmed to the City Council that the Project will be developed and operated exclusively as a 100% senior living affordable housing community for a minimum period of twenty (20) years from the Substantial Completion Date, secured by a recorded lien placed on the property and housing units; and
WHEREAS, pursuant to Chapter 106, Section 106-101 and Section 106-105 of the Code of Ordinances, deploying capital from the Affordable Housing Incentive Fund to expand affordable housing inventory constitutes a valid public purpose by promoting affordable housing while maintaining quality construction and site design, and general welfare of the citizens of Ocala; and
WHEREAS, the City Council finds that allocating capital for this long-term loan will promote affordable housing, housing stabilization, and quality of place in the City of Ocala by spurring residential development in Northwest Ocala.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the Fiscal Year 2025-26 budget be amended as follows.
SOURCE:
112-099-999-554-81-99999 Reserve for Affordable Housing $460,000
USE:
112-016-064-554-55-82010 Aids to Private Organizations $460,000
This resolution adopted this ______ day of ______________________, 2026.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs, City Clerk Ire J. Bethea Sr.
President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton, City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee, City Manager