County takes “second position” but remains financially secure

Published March 20th, 2008

By John Johnston
Managing Editor

Palm Beach County commissioners have approved a subordination agreement with the Florida Housing Finance Corporation and RSG Boynton Apartment LTD.  The agreement puts the county in “second position” should the developer of the 160-unit “multi-family attainable rental housing project” in Boynton Beach default on the mortgage.

However, County Assistant Attorney Tammy Fields told the Boca Raton News that the county's financial interest in the encumbered property would remain secured, despite the subordination agreement.

She explained that the property “has sufficient equity” that it appraises in an amount high enough to cover both the first and second mortgages.  

The subordination agreement was needed, commissioners said, so that the developer could refinance a portion of the first mortgage with a U.S. Bank National Association with a State of Florida Apartment Incentive Loan.

Commissioners said the Green Cay development on Jog Road has rental units now occupied by low income and very low-income households.  The county is encumbered for the project through December 31, 2021. There will be no forced relocation of any current renter households with the refinancing, said commissioners.

In other recent business commissioners:

• Approved a $312,725 agreement with R. J. Behar & Company, Inc. for the preparation of design plans and construction bid documents for Forest Hill Boulevard and Congress Avenue intersection improvements. 
•  Approved vacating a portion of a 12-foot wide utility easement located west of Jog Road and north of Lantana Road within the development called Fountains South Planned Unit Development.  The vacation is needed, commissioners said, to permit redevelopment of a recreation facility destroyed by hurricanes in 2005.
• Approved a blanket approval for appraisal and acquisition of the lands, rights-of-way, and easements on all fiscal year 2008 projects as identified in the Five-Year Road Program annual update, adopted Nov. 20, 2007.  Commissioners said the approval also include the hiring of any necessary real estate appraisers, engineers, certified public accountants, business damage experts, and other experts. 
• Approved a subordination agreement with Federal Home Loan Mortgage Corporation and Azalea Place Apartments, Limited.