A much-delayed $60 bond issue vital to five affordable housing projects in Miami’s Overtown neighborhood is finally moving forward.
The board of the Southeast Overtown Park West Community Redevelopment Agency, an semi-autonomous agency of the city whose mission it is to fight blight, will consider issuing the financial obligations Wednesday.
For over a year, the agency has been attempting to move forward with the 15-year notes, pushing back an initial deadline to finalize the process at the end of last year and then again in June. It’s considered a big step for the CRA, one that will tie up a significant amount of its revenue for years to come.
In draft documents filed with the city, the CRA noted it might have to pay yearly interest on the bonds of 6.5 percent, which could amount to $3.9 million in payments to investors until 2030. That would bring the total the CRA must dedicate to paying off debts to $8.9 million. The agency, which funds itself from a special dispensation on property taxes, expects tax revenue of $12.3 million next year.
The draft agreement also specifies Wells Fargo, which has been working with the CRA to structure the bond offering, would need to purchase at least $43.5 million worth of CRA bonds and then sell them on the open market. Wells Fargo is also entitled to charge up to 0.9 percent in management fees from that offering.
The cash raised by the bonds is expected to benefit five projects, which together could create at least 383 affordable housing units. The projects include:
- Lyric Place on Northwest Second Avenue and Ninth Street
- St. John Overtown Plaza on Northwest Third Avenue and 13th Street
- Island Living at 1201 NW Third Ave.
- Courtside Family Apartments on Northwest Third Avenue between 14th and 16th streets
In addition, funds will be dedicated to refurbishing up to 431 housing units in Town Park Village, which stretches along the eastern edge of the I-95 overpass from Northwest 15th to 20th streets.
CRA executive director Clarence Woods did not return a request for comment.