Interoffice Memorandum
DATE: November 7, 2024
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Tanya Wilson, AICP, Director
Planning, Environmental, and Developmental Services Department
CONTACT: Mitchell Glasser, Manager
PHONE: 407-836-5190
DIVISION: Housing and Community Development Division
ACTION REQUESTED:
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Approval and execution of Affordable Housing Homeownership Loan Program Administration Agreement between Orange County, Florida and Neighborhood Lending Partners of Florida, Inc., to provide $3.5 million from the Affordable Housing Trust Fund and create a Revolving Loan Fund for administrative services and construction loans. All Districts. (Housing and Community Development Division)
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PROJECT: Affordable Housing Homeownership Loan Program Administration Agreement
PURPOSE: On March 24, 2020, the Board adopted Ordinance No. 2020-09 establishing the Affordable Housing Trust Fund for the purpose of providing the financial resources and the leverage necessary to create affordable housing units in Orange County. On September 22, 2020, the Board adopted the first Affordable Housing Trust Fund Plan FY 2020-2022 that outlines the eligible uses of the Affordable Housing Trust Fund, including a strategy to provide a Revolving Loan Fund for low interest loans to non-profit developers to build new homes and acquire or rehabilitate projects in both unincorporated and incorporated Orange County. Providing Revolving Loan Funds to non-profit developers will serve as a low-interest financing mechanism to scale up the production of for-sale, affordable housing units.
The County desires to utilize the services of Neighborhood Lending Partners of Florida, Inc. (NLP), a non-profit organization and community development financial institution, to provide administrative services and construction loans to non-profit developers as part of the Revolving Loan Fund. The County desires to enter into this agreement with NLP to provide $3.5 million from the Affordable Housing Trust Fund to create a Revolving Loan Fund. We anticipate the Revolving Loan Fund will finance the construction of 100 homes in the first four years of the program. Orange County has partnered with NLP for many years, providing financial services for our affordable multifamily projects, and this new agreement will add financial services for affordable single-family homeownership projects. The Revolving Loan Fund balance at the end of four years will be approximately $3.2 million, which reflects shared closing cost with the non-profit borrower. The agreement provides the terms and conditions for the administration of the Revolving Loan Funds.
The County Attorney’s Office has reviewed the agreement as to form.
BUDGET: N/A