WORKSHOP TOPICS October 16, 2018 Broward County Commission WORKSHOP TOPICS October 16, 2018 TAX INCREMENT FINANCING (TIF) AFFORDABLE HOUSING TRUST FUND COUNTYWIDE REINVESTMENT PROGRAM (formerly BRP) Broward County Board of County Commissioners Mark D. Bogen • Beam Furr • Steve Geller • Dale V.C. Holness • Chip LaMarca • Nan H. Rich • Tim Ryan • Barbara Sharief • Michael Udine www.broward.org

CRA/TAX INCREMENT FINANCING (TIF)

Termination Fiscal Year COMMUNITY REDEVELOPMENT AGENCIES (CRAs) BY TERMINATION YEAR & PAYMENTS CRA Base Year Acres Termination Fiscal Year Payments thru' FY18 ($M) Estimated Total Pymts ($M) ** FTL Beach (Central Beach) 1989 121 2020 $42.85 $52.21 Pompano Beach Central (NW CRA) 3085 $47.96 $56.37* Hollywood Central (Downtown Hollywood) 1997 640 2025 $41.98 $65.60* FTL Progresso (NW Progresso) 1995 1400 2026 $43.38 $92.42 Hallandale Beach 1996 1920 2027 $61.29 $117.15 Hollywood Beach 293 $125.00 $270.25* Davie Original 1988 347 2028 $16.20 $24.20 Davie Expanded Area 1994 733 $7.26 $22.01 Davie 24 Acre 24 $0.29 $0.91 Margate 1900 $29.49 $60.17 Deerfield Beach 1999 136 2030 $16.38 $39.65 Lauderdale Lakes 2000 551 2031 $7.76 $22.55 Plantation   $6.54 $18.50 Pompano Beach East 2001 158 2032 $12.53 $38.09 Coral Springs 2011 $0.10 $2.79 Totals $459.01 $882.86 *Prior to settlements **Inflated at 2% annually

COMMUNITY REDEVELOPMENT AGENCIES (CRAs) FUNDS AVAILABLE TO BROWARD COUNTY FOR AFFORDABLE HOUSING/ COUNTYWIDE REINVESTMENT PROGRAMS $ millions FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 TOTAL TO BOCC - 9.17 9.36 9.54 9.73 9.93 13.81 20.86 46.31 53.48 54.55 57.90 61.59 65.31 Interlocal agreement - Pompano (3.85) (4.05) (3.15) (3.05) (0.375) Interlocal agreement - Hollywood Central (3.00) Interlocal agreement - Hollywood Beach * 1.32 (1.75) NET TO BOCC 5.32 5.31 6.39 6.68 6.88 10.43 17.86 41.56 48.73 49.80 56.15 59.84 63.56 50% share to programs** .660 2.66 3.20 3.34 3.44 5.22 8.93 20.78 24.37 24.90 28.08 29.92 31.78 * Reflects the projected return to Broward County in 2019 (34% less 25% retention) **Provided TIF Obligations expire at termination dates 4

AFFORDABLE HOUSING 5

BROWARD COUNTY AFFORDABLE HOUSING CONDITIONS Current demand for over 100,000 affordable units according to study by Florida International University with over 65,000 units for Low Income families. Broward is the most cost burdened metro area in nation according to Harvard Joint Center for Housing Studies. (over 30% of household income spent on housing ). Broward is the most severely cost burdened metro area in nation according to Harvard Joint Center for Housing Studies. (over 50% of household income on housing) Broward’s housing plus transportation costs highest in nation at over 70% of household income - standard is 45% of household income. Average rent in Broward is $1,858 per month - Highest in South Florida. Median home price is $340,000 - Highest in South Florida. Area Median Income is 64,100 for family of four.   

FY 19 STATE AND FEDERAL GRANT ALLOCATIONS BROWARD COUNTY’S FY 19 STATE AND FEDERAL GRANT ALLOCATIONS Community Development Block Grant (CDBG) $2,536,328 HOME Investment Partnerships $2,706,513 State Housing Initiatives Partnerships (SHIP) $ 439,968 Total $5,682,809

BROWARD COUNTY AREA MEDIAN INCOME (AMI) FAMILY OF FOUR Extremely Low (30% of AMI) $ 25,100 Very Low (50% of AMI) $ 40,400 Low (80% of AMI) $ 64,650 Moderate (120% of AMI) $ 96,960 Workforce (140% of AMI) $113,120 Source: HUD March 2018 8

BROWARD’S FEDERAL AND STATE GRANTS AFFORDABLE HOUSING STRATEGIES Purchase Assistance (Down Payment Assistance) Minor Home Repair New Infill Single Family Construction Gap Financing for New Multi-family Development Land Acquisition Demolition Acquisition and Rehabilitation Predevelopment Costs 9

BROWARD AFFORDABLE HOUSING PROGRAMS TERMS AND RESTRICTIONS DESCRIPTION DOCUMENT TERM – INTEREST RESTRICTIONS NOTES Home Repair Mortgage/Note Term varies from 10 to 15 years based on loan amount and funding source - 0% Income and Use restrictions: $40,000 limit Full loan amount due on sale during the loan term Purchase Assistance 15 years - 0% Income and Use restrictions: $40,000 - $60,000 limit Infill Land Donation Restrictive Covenant 15 years - N/A Income and Use restrictions Home  owner income restrictions remain in place through entire restriction period; no early payoff or release Multifamily Rental 30 years - 0% Tenant income restrictions remain  in place through entire restriction period; no release due to property sale 10

MARCH TO 10,000 UNITS Past two Housing Workshops - tentatively discussed one half of the value of future expiring TIFs returned to the County be dedicated for affordable housing.* Estimated first year of TIF termination (FY 21) could yield $2.6M for affordable housing. Until that time, an allocation of $5M per year for affordable housing has been allocated for FYs 18, 19, 20. *It should be noted that funding availability is subject to no economic down turn.

HOUSING TRUST FUND Charter amendment proposes a “lock box” for all contributions appropriated/allocated for affordable housing Incomes up to 140 percent of Area Median Income (AMI), including affordable housing developments catering to this income level and below may receive trust funding assistance per proposed Charter amendment, subject to no other lower restrictions on fund source.

COUNTYWIDE REINVESTMENT PROGRAM 13

COUNTYWIDE REINVESTMENT PROGRAM Proposes to replace the Broward Redevelopment Program (BRP) in whole or in part Funding subject to BOCC Annual Appropriation No specified funding cycle to assure access to funds when projects are ready to be funded. 14

COUNTYWIDE REINVESTMENT PROGRAM GOALS Improve tax base Elimination of slum and blighting conditions Job Creation 15

COUNTYWIDE REINVESTMENT PROGRAM FUNDING TERMS Funding will be a Loan for “shovel ready” projects Loans will have an interest rate and term for repayment established by the BOCC Projects that meet new tax base/job goals are eligible to convert the loan to a grant There will be a time limit for the loan to grant conversion 16

COUNTYWIDE REINVESTMENT PROGRAM ALLOWABLE USES Land Acquisition Public Infrastructure associated with development Gap Financing for Public/Private Opportunities 17

COUNTYWIDE REINVESTMENT PROGRAM PROCESS Application process, criteria and project funding limits approved by the BOCC. Projects vetted by team of county and business experts Interlocal agreements required for all projects Only municipalities, County/Municipality Joint Ventures would be eligible. 18

THANK YOU