There’s an extension to Millennia Housing Development Ltd.’s proposal to buy four low-income apartment complexes it manages in Jacksonville.
The Jacksonville Housing Finance Authority adopted an amendment Monday to extend the agreement until Oct. 23.
Millennia was scheduled to complete the acquisition in May but continues to negotiate with the U.S. Department of Housing and Urban Development about the Section 8 rents that will be in place after renovations.
Meanwhile, the city is reviewing Millennia’s building plans to renovate Eureka Gardens, Washington Heights, Moncrief Village and Southside Apartments.
They are slated for renovations and new names – Valencia Way, Calloway Cove Apartments, The Weldon apartments and Palmetto Glen.
Jeff Crossman, public affairs manager for Ohio-based The Millennia Companies, said in May renovations would total about $40 million, or about $50,000 each for the almost 770 apartments.
The question is how the rent level will affect the appraised value of the properties and the amount of housing credits the development can claim.
“Until resolved, the deal will not be ready to close,” said The Hendrickson Company and Community Concepts Group to the authority board in a June 7 report prior to the Monday meeting.
Hendrickson is the authority’s financial adviser.
The initial preliminary agreement expires June 30. Oct. 23 is the last day the deal can close without a new TEFRA hearing and approval.
“The developer has been cautioned against any delay in closing that would trigger the need for another TEFRA hearing and approval,” the report said.
A TEFRA hearing is required by the Tax Equity and Fiscal Responsibility Act of 1982 for the issuance of tax-exempt debt.
It allows people to express views about issuing bonds and the nature of the improvements for which the bonds are allocated.
HUD approved Millennia to take over active site management in December 2016 of Global Ministries Inc.’s Jacksonville properties after Eureka Gardens was found in need of substantial renovations.
City Council adopted a resolution in October authorizing the authority to issue to up $90 million in multifamily housing revenue bonds on behalf of the project.
The resolution shows a $52.7 million acquisition and a total development cost of $125.5 million for the four properties.