by Mike Sharkey
Staff Writer
The Jacksonville Housing Finance Authority is set to receive $40 million worth of mortgage revenue bonds, money that will be spent to build or rehabilitate existing housing into affordable housing that is below market value rents.
According to Wight Greger, director of the City’s Housing and Neighborhoods Department, the housing is for those who earn 30 percent below the Area Median Income, which is about $56,000 annually per household.
“We have already put an RFP (request for proposal) out and the deadline was Friday (Oct. 10),” said Greger. “We will keep it open pending the funds being available. These bonds are used predominantly to finance multifamily housing.”
Greger said the City has been getting the federal funds since the mid-1980s and there are currently over 4,000 housing units in the area that have been built using this type of funding mechanism.
“They are privately owned, but publicly financed,” she said. “We monitor them for the term of the bond.”
Greger said once a qualified developer has been identified — they must meet several criteria including providing accurate resumes, project results and proof of fiscal responsibility — the City uses the bond money to loan the developer funds to build new housing or rehabilitate existing structures. Under the terms of the agreement, the developer is not allowed to convert the rental apartments into for-sale housing, such as condominiums, until the loan is paid off. Since the terms of most of the loans are 40 years, converting the housing to for-sale units hasn’t been an issue.
“They are permanently affordable housing for a minimum of 40 years,” she said.
The City, Greger said, will get the money in January, but because of the time involved in identifying qualified developers, the Housing Authority is able to seek developers before the funds technically become available.
Greger said there aren’t requirements regarding the type of housing addressed. However, she did say the City has a preference.
“In this case, there is a focus on preserving existing properties,” said Greger, pointing to the Lakes at Mayport and St. Augustine at the Lakes as examples of successful affordable housing units purchased and renovated through the mortgage revenue bonds.
356-2466