Brownsville Manor, LP v. Redding Development Partners, LLC.

224 So. 3d 891, 2017 WL 3584751, 2017 Fla. App. LEXIS 11944
CourtDistrict Court of Appeal of Florida
DecidedAugust 21, 2017
DocketCASE NO. 1D16-2553
StatusPublished
Cited by2 cases

This text of 224 So. 3d 891 (Brownsville Manor, LP v. Redding Development Partners, LLC.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brownsville Manor, LP v. Redding Development Partners, LLC., 224 So. 3d 891, 2017 WL 3584751, 2017 Fla. App. LEXIS 11944 (Fla. Ct. App. 2017).

Opinion

ROBERTS, J.

The appellant, Brownsville Manor, L.P. (Brownsville), appeals a final order of the appellee, Florida Housing Finance Corporation (Florida Housing), arguing Florida Housing erred by reversing its determination that Brownsville was eligible for federal low-income tax credit funding. We agree and reverse.

The Competitive Solicitation

Florida Housing is the entity charged with allocating and distributing low income housing tax credits. Because the demand exceeds the supply, the tax credits are awarded competitively to housing developers for qualifying developments as governed by Chapter 67-60, Florida Administrative Code.

In 2015, Florida Housing issued Request for Application 2015-106, Housing Credit Financing for Affordable Housing Developments Located in Medium and Small Counties (the RFA), in which it expected to have up to $10,763,426 of housing credits available for developments serving families or the elderly to be located in medium counties. There were ninety-eight applications submitted in response to the RFA. The RFA applicants were first deemed eligible or ineligible for consideration for funding. The RFA included a point system in which the applicants received up to a total of twenty-eight points in three areas: (1) general development experience (maximum of five points); (2) local government contributions to the proposed development (maximum of five points); and (3) proximity to services needed by the tenants (maximum of eighteen points). The point totals were used to determine threshold eligibility and to rank the applicants. Because many of the applicants could potentially receive the same point total, the applicants were also assigned a randomly generated lottery number.

Relevant to the instant appeal is the proximity-to-services point category. In order to be eligible for proximity points, an applicant had to submit a Surveyor Certification Form that included a mandatory development location point (DLP). The DLP had to be a single point on the site on or within one hundred feet of the existing residential building or the building to be constructed as part of the proposed devel *893 opment. If a proposed development was a “scattered site,” 1 as was Brownsville’s, the RFA stated that the DLP had to be “a single point on the site with the most units that is located within 100 feet of a residential building existing or to be constructed as part of the proposed development.” See also Fla. Admin. Code. R. 67-48.002(33). The DLP served as the starting point from which the distance to identified transit and community services was measured. Depending on how far each service was from the DLP, an applicant could receive a decreasing score based on point graduations set forth in the RFA. A medium county applicant had to achieve at least seven total proximity points in order to be considered eligible for funding.

Brownsville’s Application

Brownsville sought $1,510,000 in annual allocation of housing credits to finance the construction of an eighty-seven-unit development for seniors in Escambia County. Brownsville proposed a scattered site development consisting of two parcels divided by a publicly-maintained road known as North X Street. The parcel west of North X street was zoned “Commercial” as of the application deadline and was 1.45 acres in size. The parcel east of North X Street was zoned “Heavy Commercial/Light Industrial” as of the application deadline and was approximately 1.99 acres in size. The maximum allowable units under the zoning code was thirty-six units on the 1.45 acre parcel and fifty units on the 1.99 acre parcel. Brownsville elected to site its DLP on the smaller parcel.

In support of its-application, Brownsville submitted the required Local Government Verification that the Development is Consistent with Zoning and Land Use Regulations Form. The form was signed by Horace Jones, Escambia County Director of Development. It also submitted the required Surveyor Certification Form and the Acknowledgment and Certification Form, signed under penalty of perjury, which provides assurances the applicant will comply with all of the. RFA requirements. Brownsville’s application was deemed eligible, and it received the maximum available total score of twenty-eight points (including eighteen proximity points). Of the ninety-eight applications submitted, eighty-eight were found eligible, and nine were selected to receive proposed funding. Brownsville was not selected to receive proposed funding.

Bid Protest

Another applicant, Redding Development Partners, LLC (Redding), also received the maximum point score without being selectéd for funding; however, Red-ding had a higher lottery number than Brownsville, meaning it was behind Brownsville in the funding queue. Redding filed a formal written protest pursuant to sections 120.569 arid 1|0.57(1) and (3), Florida Statutes (2016), which challenged the eligibility/point distribution of Brownsville as well as several other applicants. 2 Redding claimed that Brownsville should have received zero proximity points and been found ineligible for funding because it *894 failed to comply with the RFA terms in that its selected DLP was not on the parcel with the most proposed residential units.

Brownsville took the position that at the time the DLP was selected, it had not definitively determined the development’s site configuration as the RFA did not require the applicants to submit a site plan at the application stage. Brownsville argued it submitted the required forms signed by local government, which demonstrated" that its proposed development was consistent with applicable zoning and land-use regulations. It also made clear it intended to comply with all of the requirements of the RFA. Brownsville argued that it intended to pursue “clustering,” which was allowed for under Escambia County’s Land Use Development Code. A clustering approach would treat Brownsville’s two individual parcels as a unified development that would allow up to eighty-seven total units, the majority of which could be placed on the smaller parcel, thus rendering its DLP in compliance with the terms of the RFA. Most importantly, Brownsville argued that this determination would be made at the final site plan approval phase, which occurs during, the credit underwriting process, not at the application stage. Brownsville referenced, the language of the RFA, which provided that for scattered site developments, an applicant must demonstrate that the development meets the requirements of the RFA during the credit underwriting process.

After an evidentiary hearing, which included testimony from Jones, Florida Housing executives, and Brownsville’s representative, the Administrative Law Judge (ALJ) entered a recommended order' finding Brownsville’s application should be deemed ineligible for funding. Specifically, the ALJ disagreed with Brownsville’s decision to rely on the future potential for clustering, finding that while that was a potentially viable process, Brownsville had not started the process before its application and there was no guarantee clustering would be approved as per Jones’s testimony that he was not sure if the density transfer was even a viable option.

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Bluebook (online)
224 So. 3d 891, 2017 WL 3584751, 2017 Fla. App. LEXIS 11944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brownsville-manor-lp-v-redding-development-partners-llc-fladistctapp-2017.