At their meeting today, the County Commissioners approved a resolution authorizing the Housing Finance Authority to issue millions of dollars in bonds to finance phases of the Orange Avenue Apartments redevelopment project. The project developers, Columbia Residential and the Tallahassee Housing Authority, requested two bonds totaling $30.5 million to finance the Magnolia Family II and Magnolia Senior phases.
The project will redevelop the Orange Avenue Apartments into a 350-unit, mixed-income, multi-family housing development. The Magnolia Family II phase of the project includes rebuilding 160 housing units located near the intersection of Country Club Drive and Putnam Drive, staff reports. The total estimated cost of Magnolia Family II is $32.6 million, and the developers have requested a $17 million bond for this phase.
The Magnolia Senior phase includes rebuilding 100 housing units located near the intersection of Sebring Court and Country Club Drive. The estimated cost of this phase is $24.7 million, and the developers have requested a $13.5 million bond.
By issuing the bonds, the Housing Finance Authority “is expected to earn a 0.25% fee at closing ($42,500 for Magnolia Family II; $33,750 for Magnolia Senior) and an annual fee of 0.2% ($34,000 for Magnolia Family II; $27,000 for Magnolia Senior),” staff reports.
Staff reports that the project’s credit underwriting will take place in late 2021, meaning Magnolia Family II and Magnolia Senior could be completed as early as the first half of 2022.