SUBJECT
title
Approve First Amendment to a Tri-Party Agreement for State Housing Initiatives Program (SHIP) Funding for Grove Manor II Apartments, Lake Wales. (No fiscal impact)
body
DESCRIPTION
On September 16, 2025, the Board approved a Tri-Party Agreement (the “Agreement”) with Grove Manor Phase II, LLC ("Developer"), and Neighborhood Lending Partners of Florida, Inc. ("NLP") for the County to provide the Developer SHIP funds for use in developing affordable rental housing for low-income populations at its Grove Manor II Apartment project (“Project”). On October 7, 2025, the Board ratified and approved the correction of a scrivener's error regarding the agreed amount of a subordinate project loan from the Lake Wales Housing Authority ("LWHA"), and the inclusion of Exhibit A, a legal description of the real property where Grove Manor II will be constructed, and Exhibit B, a list of laws and regulations pertaining to the services which NLP will perform for the County.
After all parties had executed the Agreement, the Developer realized the Agreement did not correctly state the priority of the liens which secure the various loans it obtained to finance the Project. Specifically, the Agreement provided the County’s SHIP funding lien as a second mortgage on the Developer’s leasehold interest in the Property, and the LWHA’s Capital Lease Payment Loan as a third mortgage, when the lien priorities should have been LWHA Capital Lease Payment lien second, and County SHIP lien third. Additionally, the LWHA Capital Lease Payment loan was not correctly described in the Agreement. Further, the following Agreement sections: Article V, Section 2.1 C., Article VII, Section 1.4, and Article XI, Section 1.5, all inadvertently depicted minor amounts of agreed strike-through text which has been requested to be removed to prevent any future confusion about the parties’ intent.
As the Developer must correct the errors to obtain its Project financing, it has requested the County and NLP execute the attached First Amendment which restates the Agreement sections that: (i) describe the LWHA Capital Lease Payment loan, (ii) address the County and LWHA Capital Lease Payment lien priorities, and (iii) contain any strike-through text depicted in the referenced Agreement sections.
RECOMMENDATION
Request the Board approve the First Amendment to a Tri-Party Agreement for State Housing Initiatives Program (SHIP) Funding for Grove Manor II Apartments, Lake Wales.
FISCAL IMPACT
No fiscal impact.
CONTACT INFORMATION
Jennifer Cooper
Housing & Neighborhood Dev. Manager
(863) 534-5209
jennifercooper@Polk-County.net