MerryPlace

Pleasant City, West Palm Beach

CRED April 2014

Laurel Robinson

Marie Yanique Jasmin

Tanya Ward Benjamin

Pleasant City

West Palm Beach, FL

Palm Beach County & West Palm Beach

Demographics

PBC Population - 1,372,171

West Palm Beach Pop - 101,903

PBC Households – 523,891

WPB Households – 41,468

PBC Housing Units - 666,667

West Palm Beach Housing Units – 54,179 Source: US Census

Affordable Housing Shortage

Palm Beach County - 30,318 units

Broward County – 46,936 units

Miami-Dade County – 86,447 units

Source: Urban Institute

MerryPlace at Pleasant City

14 acre infill site

1st Platted neighborhood in West Palm Beach

RPD Zoning approved January 2005

Site Plan approved January 2006

- 128 LIHTC rental apartments – constructed and

98% occupied.

- 52 condominiums: 8 – 1x1, 20 – 2x2, 24 – 3x2

- 47 townhomes:14 – 2x2, 33 – 3x2.

- 16 single family detached: 3x2 homes, 4 with Accessory Dwelling

Units (ADUs)

MerryPlace at Pleasant City

PROJECT GOAL

Complete the MerryPlace Housing Community.

Finance, construct and sell the:

47 townhomes

14 single family detached homes, 2 with

ADUs

52 condominiums – may have to be rental units.

MerryPlace Location West Palm Beach FL

MerryPlace, West Palm Beach FL

MerryPlace Site Plan

MerryPlace, Pleasant City - what is there?

Schools:

Pleasant City Elementary

Kennedy Middle School (Magnet School)

Palm Beach Lakes High School

Major Employers in the area:

PBC-BCC Palm Beach County Board of County Commissioners

School Board of PBC

FL Power & Light

PBC International Airport

Tenet with 2 major hospitals in the area. • St. Mary Medical Center

• Good Samaritan.

Financing

$3,300,000 of existing debt complicates moving forward.

MUST: convince Bank holding debt to take a “haircut”

by contributing portion of principal for Public Welfare

Investment (PWI).

Possible options:

Convert 52 condos and 47 town homes from

homeownership to 9% LIHTC rental. Build 14 single

family homes with developer fee.

Convert 52 condos to 9% LIHTC rental; build 47

townhomes and 14 single family with deep subsidy

from community.

Financial Feasibility

Grand Bank & Trust – encourage “haircut”. They will be

approached to restructure the existing loan and provide

additional funding so that WPBHA can “build” their way

out of the debt.

Do construction in phases:

1) 14 SF homes constructed and sold 1st, then

2) 47 townhomes.

3) Final phase – 52 condos which will be a 9% LIHTC

request in the next authorized FL Housing Finance

Corp application round.

Funding Resources and Options

Acquisition/Construction Loan financing from FL

Community Loan Fund for through the Affordable

Housing Preservation Program.

Request additional grant funding to be used towards

construction from the WPB CRA.

Palm Beach County Dept. of Economic Sustainability

(DES) discussions about applying for a Section 108 loan

to assist with construction.

City of West Palm Beach - $600,000.00 towards the

construction costs.

MerryPlace Homeownership Resources

14 Single Family units –$30 -50,000.00 down payment and

closing cost assistance from PBCHFA . PBCHFA will also

hold mortgage.

PBC Dept. of Economic Sustainability (DES) - $1M of

SHIP funds towards down payment and closing costs

assistance to MerryPlace buyers.

WPBHA Financial Services Department will prepare

interested owners, Section 8 tenants and VASH voucher

holders for homeownership and where necessary, “Lease

with the Option to Purchase” of the townhomes or single

family units.

MerryPlace Market

Homeownership units will be for households between 80-120% AMI.

Potential homebuyers include:

Former Pleasant City residents who now live in other parts of FL

and other states but are returning to the area to retire.

Potential “workforce” housing clients include:

• Employees of the nearby Good Samaritan Hospital

• Rybovich Marina

• Police officers, Teachers

• County, State and Federal employees.

Affordability will be maintained by long-term deed restriction.

Build on the collaborative efforts from the Pleasant City Residents

Association who participated in the previous Charettes and

community meetings endorsing this affordable housing option in this

area.

MerryPlace Community Impact

Provides much needed affordable housing which close

to transit (buses and the Tamarind Ave Tri-Rail station),

employment locations and major transportation routes.

Solidifies the Pleasant City community and reinforces

the CRA’s NW Corridor Plans. Workforce housing in this

area will ensure that the Northwood/Pleasant City area is

not simply a small oasis, but a visibly connected

improved part of Pleasant City and nearby Northwood

Village area. MerryPlace is part of the redevelopment

strategy of the Pleasant City/Northwood

MerryPlace Community Impact

Increase WPB tax rolls.

Provide the Tax Increment Financing (TIF) anticipated to

pay the bonds that were sold to finance the public

infrastructure improvements.

Provide “Section 3” employment through construction

jobs, job training for low-income residents in the area.

Financing

$3,300,000 of existing debt complicates moving forward

Must: convince Bank holding debt to take a “haircut” by

contributing portion of principal for Public Welfare

Investment

Possible options:

Convert 52 condos to 9% LIHTC rental; build 47

townhomes and 14 single family with deep subsidy

from community.

Funding and Financing

Recommended Funding

PBC SHIP 1,000,000

City WPB 600,000

WPB CRA 600,000

Home Sales 10,275,000

Acq&Const Loan 14,859,110

9% LITHC 9,977,400

PWI - Public Welfare Investment contribution

from the Bank 1,387,727

MerryPlace Unit Sizes

Condominiums

8 one bedroom 830 sq. ft.

20 two bedroom 1075 sq. ft.

24 three bedroom 1210 sq. ft.

Townhouses

14 two bedroom 10 w/ garage) 1500 sq. ft.

33 three bedroom w/ garage) 1700 sq. ft.

Single Family Detached

12 (3x2) cottage homes w/garage 1550 sq. ft.

4 large lot w/ garage & ADU 2200 sq. ft.

Mortgage capacity - typical buyers

CONDOMINIUM - Family size 3 @ 80% AMI Income $47,040, down payment subsidy $30,000

Affordable price $135,000 - PITI $1107.

TOWNHOUSE – Family size 4 @ 80% AMI Income $52,240, down payment subsidy $15,000

Affordable price $ 159,000 – PITI $1381.

DETACHED S/F - Family size 5 @ 120% AMI Income $84,720 if no subsidy received.

Affordable price $219,000 - PITI $1858.

MerryPlace Management

Enterprise Properties is the non-assisted

property management arm of the WPBHA.

Enterprise Properties currently manages the

MerryPlace rental units. This organization will

coordinate the Master Association for all build

outs.

Additional Considerations

All right of way

improvements

provided by City of

West Palm Beach

and CRA

Shovel ready site.

Buyer down payment

subsidy of a minimum

of $30,000 per family

Long term restriction

on resale price

Owner occupied only

Homeowner

association/

MPOA

MerryPlace

Pleasant City, West Palm Beach

CRED April 2014

Laurel Robinson

Marie Yanique Jasmin

Tanya Ward Benjamin