17-003996BID
Warley Park, Ltd, Warley Park Developer, Llc, And Step Up Developer, Llc vs.
Florida Housing Finance Corporation
Status: Closed
Recommended Order on Thursday, October 19, 2017.
Recommended Order on Thursday, October 19, 2017.
1STATE OF FLORIDA
4DIVISION OF ADMINISTRATIVE HEARINGS
8WARLEY PARK , LTD ; WARLEY PARK
13DEVELOPER , LLC ; AND STEP UP
18DEVELOPER , LLC ,
20Petitioners ,
21vs . Case No . 17 - 3996BID
29FLORIDA HOUSING FINANCE
32CORPORATION ,
33Respondent ,
34and
35NORTHSIDE COMMONS RESIDENTIAL ,
38LLC ,
39Intervenor .
41_______________________________/
42RECOMMENDED ORDER
44Pursuant to notice , a formal administrative hearing was
52conducted before Administrative Law Judge Mary Li Creasy in
61Tallahassee , Florida , on A ugust 18 and 2 5 , 2 017 .
73APPEARANCES
74For Petitioner s : Douglas P . Manson , Esquire
83William S . Bilenky , Esquire
88Manson Bolves Donaldson Varn , P . A .
961101 W est Swann Avenue
101Tampa , Florida 33606 - 2637
106Craig D . Varn , Esquire
111Manson Bolves Donaldson Varn , P.A.
116106 East College Avenue, Suite 820
122Tallahassee, Florida 32301
125Michael G eorge Maida , Esquire
130Michae l G . Maida , P . A .
1391709 Hermitage B oulevard, Suite 201
145Tallahassee , F lorida 32308
149For Respondent: Chris topher Dale McGuire , Esq uire
157Florida Housing Finance Corporation
161227 N orth Bronough Street , Suite 5000
168Tallahassee , F lorida 32301 - 1329
174For Intervenor: Joseph M . Goldstein , Esq uire
182Shutts & Bowen LLP
186200 East Broward Boulevard , Suite 2100
192Fort Lauderdale , F lorida 33301
197STATEMENT OF THE ISSUE S
202The issues in this bid protest are whether , in making the
213decision to award funding pursuant to Request for Applications
2222017 - 103 , Housing Credit and State Apartment Incentive Loan
232( " SAIL " ) Financing to Develop Housing in Medium a nd Large
244Counties for Homeless Households and Persons with a Disabling
253Condition (the " RFA " ) , Florida Housing Finance Corporation
261( " Florida Housing " or " Respondent " ) , acted contrary to a
271governing statute , rule , or solicitation specification ; and , if
279so , w hether such action was clearly erroneous , contrary to
289competition , arbitrary , or capricious .
294The question of whether the application of Northside Commons
303Residential, LLC ("Northside") , met the requirements of the RFA
314with respect to demonstrating the avai lability of water and sewer
325services as of the Application Deadline is the only question at
336issue in this case . No other parts of its Application are being
349challenged , and the parties all agree that its Application was
359otherwise properly scored . No parti es have raised objections to
370any parts of Warley Park ' s application , and all parties agree
382that its Application was properly scored .
389PRELIMINARY STATEMENT
391On March 22 , 2017 , Florida Housing issued the RFA . On
402April 20 , 2017 , five entities submitted applic ations in response
412to the RFA , including Petitioners Warley Park , Ltd ., Warley Park
423Developer , LLC , and Step Up Developer , LLC (collectively " Warley
432Park " or " Petitioner " ) , and Intervenor Northside . On June 16 ,
4432017 , the Board of Directors of Florida Hous ing approved the
454Review Committee ' s motion and staff recommendation to select
464three applicants , including Northside , for funding and invited
472them to enter credit underwriting .
478Warley Park timely filed its notice of protest , followed by
488an Amended Formal Wr itten Protest and Petition for Administrative
498Hearing ( " Petition " ) pursuant to section 120 . 57(3) , Florida
509Statutes, and Florida Administrative Code Rules 67 - 60 . 009
520and 28 - 110 . 004 .
527On July 17 , 2017 , Florida Housing forwarded the Petition to
537the Division of Administrative Hearings ( " DOAH " ) . As a
548specifically - named person whose substantial interests were being
557determined in the proceeding , Northside became a party by
566entering an appearance pursuant to Florida Administrative Code
574R ule 28 - 106 . 205(3) .
582Although i nitially submitted as an informal hearing , all
591parties agreed that there were disputed issues of material fact
601that required resolution at the hearing . The parties submitted a
612Joint Pre - h earing Stipulation setting forth their positions ,
622stipulated finding s of fact , issues of fact or mixed questions of
634law or fact which remained to be litigated , agreed issues of law ,
646and disputed issues of law .
652The hearing was held on August 18 and August 25 , 2017 . On
665August 18 , 2017 , Mr . Ken Reecy , the D irector of Multifa mily
678Programs at Florida Housing for the last four years , who is
689responsible for the allocation process of funding by Florida
698Housing , initially testified that he considered the discrepancy
706between the named addressee of the water and sewer letter ( " WASA
718l etter " ) and the applicant to be a minor irregularity that could
731be waived . On cross - examination , Mr . Reecy learned that the
744addressee of the WASA letter had no principals in common with the
756applicant , but rather only with principals of one of the
766develope rs of the applicant .
772Following Mr . Reecy ' s testimony , the witness for the
783Intervenor , Mr . Oscar Sol , testified that it was common practice
794for Florida Housing to accept WASA letters addressed to an entity
805that was not the applicant and without regard to whether there
816were any common principals between the listed addressee and an
826applicant .
828Florida Housing and Northside requested a continuance to
836give Mr . Reecy an opportunity to review Florida Housing ' s records
849regarding its past practice of accepting such WASA letters as
859described by Mr . Sol . T he parties agreed to participate in a
873conference call at 4:30 p . m . , and at that time , it would be
888announced whether Mr . Reecy would be revising his testimony based
899on his review of Florida Housing ' s records , requiri ng the hearing
912to be reconvened after providing the parties an opportunity to
922depose Mr . Reecy , or whether the parties were in agreement that
934no further testimony was needed .
940During the 4:30 p . m . conference call , it was announced that
953Mr . Reecy would be re vising his earlier testimony . DOAH ordered
966that any documents relied upon by Mr . Reec y to modify his
979testimony be produced by 1:00 p . m . on August 21 , 2017 , and
993Mr . Reecy would be available for deposition at 1:00 p . m . on
1008August 23 , 2017 . Such occurred , an d the hearing was reconvened
1020on August 25 , 2017 , for the limited purpose of Mr . Reecy
1032testifying concerning his review of the additional records and
1041for Petitioner or Intervenor to call any additional witnesses
1050necessary due to Mr . Reecy ' s anticipated chan ge in testimony .
1064At the hearing , the following exhibits were admitted into
1073evidence: Joint Exhibits 1 through 4 ; Petitioner ' s E xhibits 1 ,
10852 , 4 , 5 , 1 4 , and Petitioner ' s Supplemental Exhibit 6 ;
1097Respondent ' s Exhibit 1 ; Intervenor ' s Exhibit s 1 and 2 ; and
1111In tervenor ' s Additional Exhibits 1 through 10 , 14 , 1 9 , 23 ,
1124and 24 .
1127Petitioner presented the testimony of Jon M . Dinges , P . E . , a
1141representative for Warley Park , and Ryan von Weller , an expert
1151witness , at the hearing and the following through deposition:
1160Do uglas Pile , individually and as the corporate representative of
1170the Miami - Dade County Water and Sewer Department ; Mr. Reecy ,
1181Director of Multifamily Programs for Florida Housing , who also
1190testified at the hearing for Respondent ; and William Cobb ,
1199another r epresentative of Florida Housing . Northside presented
1208Mr. Sol , Manager and Member of one of the Developers for
1219Northside .
1221The two - volume T ranscript of the hearing was filed on
1233August 19 , 2017 . All parties timely submitted p roposed
1243r ecommended o rders on A ugust 29 , 2017 . The parties ' p roposed
1258r ecommended o rders have been given due consideration in the
1269preparation of this Recommended Order . Unless otherwise
1277indicated, citations to the Florida Statutes or rules of the
1287Florida Administrative Code refer to th e versions in effect at
1298the time of the decision to recommend funding for Northside .
1309FINDING S OF FACT
1313The Parties
13151 . Petitioner Warley Park , Ltd . , is the applicant entity of
1327a proposed affordable housing development to be located in
1336Seminole County , Flo rida . Petitioners Warley Park Developer ,
1345LLC , and Step Up Developer , LLC , are Developer entities as
1355defined by Florida Housing in Florida Administrative Code
1363R ule 67 - 48 . 002(28) .
13712 . Northside is a Florida limited liability company based
1381in Miami - Dade Cou nty , Florida , in the business of providing
1393affordable housing .
13963 . Florida Housing is a public corporation created pursuant
1406to section 420 . 504 , Florida Statutes . Its purpose is to promote
1419public welfare by administering the governmental function of
1427finan cing affordable housing in Florida . Pursuant to section
1437420 . 5099 , Florida Housing is designated as the housing credit
1448agency for Florida within the meaning of section 42(h)(7)(A) of
1458the Internal Revenue Code and has the responsibility and
1467authority to est ablish procedures for allocating and distributing
1476low income housing tax credits .
1482The Programs
14844 . The low income housing tax credit program was enacted to
1496incentivize the private market to invest in affordable rental
1505housing . These tax credits are award ed competitively to housing
1516developers in Florida for rental housing projects which qualify .
1526These credits are then normally sold by developers for cash to
1537raise capital for their projects . The effect of this is to
1549reduce the amount that the developer wo uld have to borrow
1560otherwise . Because the total debt is lower , a tax credit
1571property can (and must) offer lower , more affordable rents .
1581Developers also covenant to keep rents at affordable levels for
1591periods of up 50 years as consideration for receipt of the tax
1603credits .
16055 . SAIL provides low - interest loans on a competitive basis
1617to affordable housing developers each year . This money often
1627serves to bridge the gap between the development ' s primary
1638financing and the total cost of the development . SAIL d ollars
1650are available to individuals , public entities , not - for - profit , or
1662for - profit organizations that propose the construction or
1671substantial rehabilitation of multifamily units affordable to
1678very low - income individuals and families .
16866 . Florida Housing i s authorized to allocate housing
1696tax credits , SAIL funding , and other funding by means of request
1707for proposal or other competitive solicitation in s ection
1716420 . 507(48) and adopted c hapter 67 - 60 to govern the competitive
1730solicitation process for several dif ferent programs , including
1738the program for tax credits . Chapter 67 - 60 provides that Florida
1751Housing allocate its housing tax credits , which were made
1760available to Florida Housing on an annual basis by the U . S .
1774Treasury , through the bid protest provisions of section
1782120 . 57(3) .
1786The RFA 2017 - 103
17917 . Housing tax credits and SAIL funding are made available
1802through a competitive application process commenced by the
1810issuance of a R FA . A RFA is equivalent to a " request for
1824proposal " as indicated in r ule 67 - 60 . 00 9(3) . The RFA at issue
1841here is RFA 2017 - 103 , which was issued on March 22 , 2017 . A
1856modification was issued on April 11 , 2017 , and responses were due
1867April 20 , 2017 .
18718 . Through the RFA , Florida Housing seeks to award up to an
1884estimated $6 , 075 , 000 of hou sing tax credits , along with
1895$11 , 500 , 000 of SAIL financing , to qualified applicants to provide
1906affordable housing developments .
19109 . A review committee , made up of Florida Housing staff ,
1921reviews and scores each application . Florida Housing scored
1930applicant s in six areas worth a total of 145 points: General
1942Development Experience ; Management Company Experience with
1948Permanent Supportive Housing ; Tenant Selection for Intended
1955Residents ; Community - Based General Services and Amenities
1963Accessible to Tenants ; Acc ess to Community - Based Resources and
1974Services that Address Tenants ' Needs ; and Approach Toward Income
1984and Credit Status of Homeless Households Applying for Tenancy .
1994Florida Housing scored Northside as the highest scoring
2002applicant , awarding it 128 points . Warley Park was the fourth
2013highest scored applicant with 112 points .
202010 . These scores are presented in a public meeting and the
2032committee ultimately makes a recommendation as to which projects
2041should be funded . This recommendation is presented to Flor ida
2052Housing ' s Board of Directors ( " the Board " ) for final agency
2065action .
206711 . On June 16 , 2017 , Petitioners and all other
2077participants in RFA 2017 - 103 received notice that the Board had
2089determined which applications were eligible or ineligible for
2097considera tion for funding and selected certain applications for
2106awards of tax credits , subject to satisfactory completion of the
2116credit underwriting process . Such notice was provided by the
2126posting of two spreadsheets , one listing the " eligible " and
" 2135ineligible " a pplications and one identifying the applications
2143that Florida Housing proposed to fund , on Florida Housing ' s
2154website , www . floridahousing . org .
216112 . Florida Housing announced its intention to award
2170funding to three developments , including Northside . Warley
2178Park ' s application was deemed eligible , but it was not selected
2190for funding .
219313 . The RFA at Section Four A . 5 . g . requires the applicant
2209to demonstrate its " Ability to Proceed " by including the
2218following as attachments to its application:
2224(4) Availability of Water . The Applicant
2231must demonstrate that as of the Application
2238Deadline water is available to the entire
2245proposed Development site by providing as
2251Attachment 9 to Exhibit A:
2256(a) The properly completed and executed
2262Florida Housing Finance Corporatio n
2267Verification of Availability of
2271Infrastructure Î Water form (Form
2276Rev . 08 - 16) ; or
2282(b) A letter from the water service provider
2290that is Development - specific and dated within
229812 months of the Application Deadline . The
2306letter may not be signed by the Ap plicant , by
2316any related parties of the Applicant , by any
2324Principals or Financial Beneficiaries of the
2330Applicant , or by any local elected officials .
2338(5) Availability of Sewer . The Applicant
2345must demonstrate that as of the Application
2352Deadline sewer capac ity , package treatment or
2359septic tank service is available to the
2366entire proposed Development site by providing
2372as Attachment 10 to Exhibit A:
2378(a) The properly completed and executed
2384Florida Housing Finance Corporation
2388Verification of Availability of
2392Inf rastructure Î Sewer Capacity , Package
2398Treatment , or Septic Tank form (Form
2404Rev . 08 - 16) ; or
2410(b) A letter from the waste treatment
2417service provider that is Development - specific
2424and dated within 12 months of the Application
2432Deadline . The letter may not be signed by
2441the Applicant , by any related parties of the
2449Applicant , by any Principals or Financial
2455Beneficiaries of the Applicant , or by any
2462local elect ed officials . (emphasis added) .
247014 . Section 5 . g . of Exhibit A to RFA 2017 - 103 , the
2486Application and Deve lopment Cost Pro Forma , requires that the
2496applicant include the following information:
2501Ability to Proceed:
2504As outlined in Section Four A . 5 . g . of the
2517RFA , the Applicant must provide the following
2524information to demonstrate Ability to
2529Proceed:
2530(4) Availab ility of Water . The Applicant
2538must provide , as Attachment 9 to Exhibit A ,
2546an acceptable letter from the service
2552provider or the properly completed and
2558executed Florida Housing Finance Corporation
2563Verification of Availability of
2567Infrastructure Î Water form (Fo rm
2573Rev . 08 - 16) .
2579(5) Availability of Sewer . The Applicant
2586must provide , as Attachment 10 to Exhibit A ,
2594an acceptable letter from the service
2600provider or the properly completed and
2606executed Florida Housing Finance Corporation
2611Verification of Availabil ity of
2616Infrastructure Î Sewer Capacity , Package
2621Treatment , or Septic Tank form (Fo rm
2628Rev . 08 - 16) .
263415 . The Verification of Availability of Infrastructure Î
2643Sewer Capacity , Package Treatment , or Septic Tank form requires
2652the service provider to certify tha t on or before the submission
2664deadline for the RFA , " Sewer Capacity or Package Treatment is
2674available to the proposed Development . " Similarly , the
2682Verification of Availability of Infrastructure Î Water form
2690requires the service provider to certify that on or before the
2701submission deadline for the RFA , " Potable water is available to
2711the proposed Development . " Each form also includes the following
2721caveat:
2722To access such [waste treatment] [water]
2728service , the Applicant may be required to pay
2736hook - up , install ation and other customary
2744fees , comply with other routine
2749administrative procedures , and/or install or
2754construct line extensions and other
2759equipment , including but not limited to
2765pumping stations , in connection with the
2771construction of the Development .
277616 . The RFA does not define the term " Development -
2787specific ," and the term is not used in Section 5 . g . of Exhibit A
2803to RFA 2017 - 103 where the requirement for the water and sewer
2816letters is included . Further , the term " Development - specific " is
2827not defin ed in any Florida Housing rule .
283617 . Miami - Dade County has had a longstanding practice of
2848refusing to complete Florida Housing ' s water and sewer
2858verification forms . Florida Housing added the water and sewer
2868letter as an additional method to demonstra te availability in
2878light of the c ounty ' s refusal . Thus , an applicant , such as
2892Northside , has no alternative when proposing a Miami - Dade project
2903other than providing a water and sewer letter as opposed to
2914Florida Housing ' s Verification form .
2921Northside ' s W ater and Sewer Letter
292918 . Accordingly , in response to this RFA requirement ,
2938Northside submitted a letter from Miami - Dade County Water and
2949Sewer Department as Att achment 9 to its application . The letter
2961was sought by Oscar Sol , one of the principals of the d eveloper
2974working with the applicant in the project at issue in this case .
298719 . The WASA letter at issue in this case was dated
2999December 12 , 2016 . It was addressed to " Northside Commons LTD ,"
3010and referenced water and sewer availability for " No rthside
3019Commons ," construction and connection of 108 apartments , located
3027at 8301 N orthwest 27th Avenue , Miami - Dade County , Florida ,
3038Folio #30 - 3110 - 000 - 0210 .
304720 . The identical WASA letter was submitted as Attachments
305710 and 11 to application 2017 - 155 C in response to a prior RFA ,
3072RFA 2016 - 114 . That prior application was submitted by Northside
3084Commons , L td., for a 108 - unit elderly development called
3095Northside Commons , located at 8301 N orthwest 27th Avenue , Miami -
3106Dade County , Florida , Folio #30 - 3110 - 000 - 0210 . The application
3120deadline for RFA 2016 - 114 was Decembe r 15 , 2016 .
313221 . In the present case , Northside ' s application for
3143RFA 2017 - 103 , application 2017 - 254CSN , was submitted by Northside
3155Commons Residential , LLC . It was for an 80 - unit developme nt for
3169homeless persons and persons with disabling conditions , also to
3178be called " Northside Commons ," located at 8301 N orthwest 27th
3188Avenue , Miami - Dade County , Florida , Folio #30 - 3110 - 000 - 0210 . The
3204application deadline for RFA 2017 - 103 was April 20 , 2017 .
321622 . The WASA letter contains several paragraphs of details
3226about hookups to water and sewer service , and also includes the
3237following boilerplate language: " This letter is for
3244informational purposes only and conditions remain in effect for
3253thirty ( 30) days from the date of this letter . Nothing contained
3266in this letter provides the developer with any vested rights to
3277receive water and/or sewer service . "
328323 . Warley Park raised three issues regarding the WASA
3293letter . First , was the letter valid for more than 30 days after
3306it was signed? Second , did the letter meet the requirement of
3317the RFA that it be " development specific? " Third , did the letter
3328demonstrat e the availability of sewer services?
3335Was the WASA letter valid for more than 30 days af ter it was
3349signed?
335024 . Florida Housing and Northside contend that there is no
3361provision in the WASA letter stating that it becomes " invalid "
3371after 30 days , or that water and sewer services will not be
3383available after 30 days .
338825 . Douglas Pile , the representative for Miami - Dade County ,
3399testified that the second and third paragraphs of the letter
3409included the conditions necessary to service the availability of
3418water and sewer , and that it was these conditions that remained
3429in effect for 30 days . He described the purpose of the 30 - day
3444language as follows:
3447We ' re not saying that availability disappears
3455or terminates after 30 days . We ' re just
3465saying this letter is good for informational
3472purposes for 30 days . We don ' t want people
3483to come back a year later and say I bought
3493this property based upon this letter of
3500availability saying I have water and sewer
3507under certain conditions , and then a year
3514later the conditions are different and maybe
3521they have to put in a water main extension or
3531maybe their loca l pump station is in
3539moratorium .
3541W hen asked specifically whether the entire letter was valid for
3552only 30 days , he responded , " Right . Well , the conditions are Î
3564the nearby water and sewer facilities that the project would
3574connect to . "
357726 . Mr . Pile e xplained that the l etter is " a snapshot of
3592what our facilities are at the time they make the request . " He
3605further stated that:
3608the letter . . . has to have an expiration
3618date either explicit or implicit . If a
3626utility is going to give a letter saying they
3635have water and sewer availability , that
3641cannot be forever , you know . You assume a
3650natural termination point . . . we just
3658explicitly say this letter is good for
366530 days .
366827 . In its Pre - Hearing Position Statement , Florida Housing
3679argued that it di d not interpret this language to mean that the
3692let ter became invalid after 30 days . However , according to
3703Mr . Reecy , 1/ there was no " interpretation " done by Florida
3714Housing . Specifically , when asked how Florida Housing
3722interpreted the phrase , he stated:
3727We have basically ignored that phrase . We
3735actually do not know what -- given the context
3744of this situation , how , within 30 days ,
3751the -- that information is only good for 30
3760days . So we have not considered that to be a
3771relevant factor in our consideration of the
3778information provided in the let ter .
378528 . A plain and common reading of the quoted language
3796indicates Miami - Dade limited the validity of the information in
3807the letters to 30 days . Florida Housing provided no explanation
3818for its decision to ignor e the language and made no attempt to
3831inquire of Miami - Dade County as to what it intended by including
3844the language .
384729 . This 30 - day limitation is generally known by t he
3860applicants and nearly every previously funded application
3867included a letter from Miami - Dade County dated within 30 days of
3880the application deadline . O nly one Miami - Dade WASA letter
3892submitted by applicants within the last two RFAs was dated
3902outside of the 30 - day window . That letter was deemed ineligibl e
3916for other re a sons .
392230 . H ad Petitioner wanted to demonstrate availability as of
3933the application deadline , it only needed to request a letter from
3944Miami - Dade County within the 30 days prior to the application
3956deadline , giving Miami - Dade sufficient time to respond . In fact ,
3968the l et ter was initially submitted as part of a response to
3981RFA 2016 - 114 , with a due date of December 15 , 2016 . Because t h e
3998l etter was issued on December 12 , 2016 , it remained valid through
4010the application deadline for RFA 2016 - 114 . There is no limit to
4024the num ber of times a developer can obtain a letter of
4036availability from Miami - Dade County .
404331 . The requirements of the RFA are clear that water and
4055sewer availability must be shown " as of the Application
4064Deadline . " Because the WASA letter submitted with P etitioner ' s
4076Application only provided a snapshot of availability for a 30 - day
4088window after the issuance of the letter (or until January 11 ,
40992 017) , the letter failed to address the availab il i ty of water or
4114sewer services as of April 20 , 2017 .
412232 . As a practical matter , the WASA letter provides that
4133water hook - up is readily available to existing infrastructure and
4144sewer availability is dependent upon a developer building a
4153pumping stati on . It could be inferred that these conditions
4164would remain availab le at this location for 12 months . However ,
4176the testimony of Mr . Pile makes clear that Miami - Dade County is
4190not willing to make that assumption for a peri od beyond 30 days
4203due to the possibility of intervening events . 2 / Presumably , this
4215is why the vast m ajority of applicants for this type of RFA
4228secures and provides a Miami - Dade WASA letter dated within
423930 days of the RFA application deadline .
424733 . Because the WASA letter was not valid beyond
4257January 11 , 2017 , Petitioner cannot demonstrate availabili ty of
4266water and sewer as of the Application Deadline . The fact that
4278the WASA l etter was no longer valid is fatal to Petit i oner ' s
4294application in that it failed to satisfy a mandatory requirement
4304of RFA 2017 - 103 , i . e . , the availability of water and sewer
4319se rvices .
4322Was the WASA letter " development specific? "
432834 . The RFA requires that the Applicant demonstrate water
4338and sewer service availability for " the entire proposed
4346Development site ," and it also requires that the letter from the
4357service provider be " Development - specific . " The application in
4367this matter was filed by Northside Commons Residential , LLC , for
4377an 80 - unit development for the homeless and persons with
4388disabling conditions . However , the WASA l etter was issued to ,
4399and discussed the availabi lity of water and sewer service for , a
4411different entity , Northside Commons , Ltd . , the applicant for a
4421108 - unit elderly development .
442735 . According to Mr . Reecy , the reuse of a letter that was
4441previously submitted in a different application does not fo llow
4451the " letter " of the criteria in the RFA . Florida Housing and
4463Northside even agree that the l etter does not r eference the
4475specific proposed d evelopment that is at issue and instead
4485focus es on the location of the proposed d evelopment .
449636 . Mr . Sol , Northside ' s representative , suggested that it
4508is " irrelevant " to which entity the letter is issued because what
4519is relevant is whether water and sewer availability exists .
4529However , as stated by Mr . Reecy , what Florida Housing considers
4540when determining whether a letter of availability is
" 4548Development - specific " is the location , the number of units , and
4559t he applicant . Because the WASA l etter was issued to a entirely
4573different applicant , based upon Mr . Reecy ' s testimony , it is not
" 4586Development - specific . "
459037 . However , Mr . Reecy noted that such a letter could be
4603considered a Minor Irregularity if there is some commonality
4612between the applicant entities . Northside argues that the
4621failure of the l etter to be " Development - specific " should be
4633waived as a M inor Irregularity . This issue was not considered
4645during scoring , nor was it a determination made by the Board of
4657Florida Housing prior to award ing funding to Northside .
466738 . Mr . Reecy acknowledged that it is a judgment call when
4680determining whether a letter addressed to a different entity with
4690different principals is a Minor Irregularity . That call depends
4700upon the number of common principals . While the number of
4711principals that must be the same is discretionary , there must be
4722at least some commonal ity of principals for it to be considered a
4735Minor Irregularity .
473839 . The principals of Northside Commons , Ltd . , the entity
4749to which the l etter was actually issued and the applicant that
4761originally submitted the WASA l etter , are completely different
4770fr om the principals of Northside Commons Residential , LLC .
4780Despite a full understanding of all the similarities between the
4790two applications and the differences in the requirements of the
4800RFA and being given a number of opportunities to change his
4811position , Mr . Reecy repeatedly declined to do so .
482140 . Mr . Sol suggested that it is common practice for
4833Florida Housing to accept letters issued to entities other than
4843the applicant and with different principals . After hearing
4852Mr . Sol ' s opinion and discussing the issue further with
4864Northside , Mr . Reecy remained steadfast in his position that the
4875error in the Letter could not be waived as a Minor Irregularity .
488841 . A t the request of Northside , Mr . Reecy agreed to review
4902past practices of the agency durin g a break in the hearing . As
4916stated by counsel for Florida Housing , if it is established that
4927Florida Housing has a long - standing practice of accepting similar
4938letters , then the question is whether Northside Commons may rely
4948upon that practice .
495242 . The review during the break was limited to the issue of
4965whether Florida Housing had previously accepted Miami - Dade
4974letters addressed to an entity who was not the applicant and who
4986shared no principals in common with the applicant . N o such long -
5000standing pr actice was demonstrated .
500643 . Mr . Reecy directed staff to pull all of the Miami - Dade
5021letters of availability from the last two RFAs , to determine ,
5031first , whether or not there were sewer letters addressed to
5041someone other than the applicant entity . Se cond , for those so
5053identified , staff was to compare the principals of the applicant
5063entity and the entity that was the addressee for commonality .
5074Mr . Reecy was provided a list of approximately a dozen letters
5086from the past several RFAs that compared the a pplicant entity and
5098the addressee entity . This list did not identify whether or not
5110the letters were submitted by successful credit applicants .
511944 . Based upon this list , Mr . Reecy then reviewed each
5131letter to determine whether or not it was issued t o the
5143applicant . He then reviewed the principals list for the
5153applicant as identified in the application and compared that to
5163data from the s tate of Florida ' s Sunbiz . org website for the
5178addressee of the letter . Mr . Reecy compared this information to
5190dete rmine if the two had any principals in common .
520145 . After reviewing this information , Mr . Reecy recanted
5211his earlier testimony and stated that he felt that Florida
5221Housing historically accepted letters with addressees that were
5229not the applicant entit y and did not have common principals .
5241Mr . Reecy further testified that based upon this understanding of
5252Florida Housing ' s past practice , the Northside ' s l etter should be
5266accepted .
526846 . T he information Mr . Reecy reviewed , specifically that
5279obtained f rom the s tate of Florida ' s Sunbiz . org website , did not
5295demonstrate , as Mr . Reecy believes , that Florida Housing
5304previously acce pted Miami - Dade WASA letters from applicant s in a
5317similar position to that of Northside . Notably , Florida Housing
5327does not accep t documentation from the Sunbiz . org website to
5339demonstrate the principals of the Application as required by this
5349and other RFAs . The Sunbiz . org website does not identify the
5362level of detail of principals which Florida Housing requests in
5372its " Principals o f the Applicant and Developer(s) Disclosure
5381Form " .
538347 . Further , even if Sunbiz . org did identify all of the
5396principals Florida Housing requires to be disclosed , in this
5405case , the Sunbiz . org information reviewed was dated 2017 . 3 / As
5419this information w as filed after the application deadlines for
5429the respective RFAs , it fails to identify any of the principals
5440related to the entities in the " comparable " letters for the 2015
5451and 2016 RFAs . No information was provided as to any of the
5464principals in either 2015 or 2016 .
547148 . Accordingly , Mr . Reecy and Mr . Sol ' s belief that
5485Florida Housing had previously accepted letters in a similar
5494position to that of Northside Commons ' letter has not been
5505demonstrated . Because Mr . Reecy ' s new position , that Northside
5517Commons ' letter should be accepted , is based upon this incorrect
5528understanding , and the alleged prior agency action was not
5537demonstrated , Mr . Reecy ' s initial testimony is found to be more
5550credible . Therefore , the record demonstrates that the WASA
5559l etter was not " Development - specific " and , therefore , contrary to
5570the solicitation specifications .
5574Did the letter demonstrate availability of sewer services?
558249 . The RFA requires each applicant to provide a form or
5594letter demonstrating that " as of the Appli cation Deadline sewer
5604capacity , package treatment or septic tank service is available
5613to the entire proposed Development site . " Petitioner presented
5622the testimony of Jo n Dinges , P . E . , an environmental engineer with
5636expertise in designing wastewater system s who was accepted as an
5647expert in civil engineering , specifically in the area of sewer
5657infrastructure and design . Mr . Dinges ' testimony was simply that
5669the problem with the WASA letter in this case is that it does n o t
5685actually say that capacity is availa ble .
569350 . In a prior RFA , Florida Housing rejected an application
5704that included a Miami - Dade WASA letter because it specifically
5715stated that no gravity sewer capacity analysis had been
5724conducted . According to Mr . Dinges , w ithout conducting a gravity
5736sewer capacity analysis , it is not possible to determine whether
5746capacity , if any , exists . However , the RFA makes no mention of
5758requiring a gravity sewer capacity analysis to demonstrate
5766availability .
576851 . Mr . Reecy testified that Florida Housing has been
5779accepting WASA letters without mention of gravity analysis from
5788Miami - Dade County for many years . He stated t hat the detailed
5802description of how a proposed project could connect to an
5812existing sewer service met the requirement of the RFA that the
5823Ap plicant demonstrate the availability of sewer service . He also
5834testified that if Florida Housing were to change its position and
5845determine that the form of the letter was not adequate to
5856demonstrate capacity , it would do so in a public process .
586752 . T he testimony was clear that Florida Housing does not
5879do any independent analysis of whether water and sewer service is
5890actually available to a proposed development , but instead relies
5899on the expertise of the local government to do this analysis .
5911Applicant s are not required to include or demonstrate the
5921specific requirements or technical specifications of how a
5929connection to water or sewer services will be made . This
5940interpretation is consistent with the specifications of the RFA .
5950CONCLUSIONS OF LAW
59535 3 . Pursuant to sections 120 . 569 and 120 . 57(2) and (3) ,
5968DOAH has jurisdiction of the parties and the subject matter of
5979this proceeding . Florida Housing ' s decision in this case affects
5991the substantial interests of each of the Petitioners , and each
6001has stan ding to challenge Florida Housing ' s scoring and review
6013decisions . The substantial interests of Warley Park are affected
6023because it is next in line for a funding award under RFA 2017 -
6037103 , and Warley Park would be the proposed recipient of funding
6048if Norths ide is deemed ineligible . See , e . g . , Preston Carroll
6062Co . v . Fla . Keys Aqueduct Auth . , 400 So . 2d 524 (Fla . 3d DCA
60811981)(second lowest bid establishes substantial interest in bid
6089protest) .
609154 . Northside has standing to intervene in this proceeding .
6102Fla. Admin. Code R . 28 - 106 . 205(3) . In addition to being
6117specifically named in the Petition , the " substantial interests "
6125of Northside , as the proposed recipient of funding pursuant to
6135RFA 2017 - 103 , are affected because Warley Park has alleged that
6147Florida Housing made a mistake in considering Northside ' s
6157Application . Warley Park alleges that Northside failed to
6166demonstrate its Ab ility to Proceed , specifically w ater and s ewer
6178a vailability .
618155 . This is a competitive procurement protest proceeding
6190and , as such , is governed by section 120 . 57(3)(f) , which
6201provides:
6202Unless otherwise provided by statute , the
6208burden of proof shall rest with the party
6216protesting the proposed agency action . In a
6224competitive - procurement protest , other than a
6231rejection of all bi ds , proposals , or replies ,
6239the administrative law judge shall conduct a
6246de novo proceeding to determine whether the
6253agency ' s proposed action is contrary to the
6262agency ' s governing statutes , the agency ' s
6271rules or policies , or the solicitation
6277specifications . The standard of proof for
6284such proceedings shall be whether the
6290proposed agency action was clearly erroneous ,
6296contrary to competition , arbitrary , or
6301capricious .
6303See also State Contracting & Eng ' g Corp . v . Dep ' t of Transp . , 709
6322So . 2d 607 , 609 (Fla . 1st DCA 1998) ; Dep ' t of Transp . v . J . W . C .
6346Co . , Inc . , 396 So . 2d 778 , 787 (Fla . 1st DCA 1981) .
636256 . Pursuant to section 120 . 57(3)(f) , the burden of proof
6374rests with Warley Park as the party opposing the proposed agency
6385action to prove " a ground for invalid ating the award . " See State
6398Contracting and Eng ' g Corp . v . Dep ' t of Transp . , 709 So . 2d
6417at 609 . The First District Court of Appeal has interpreted the
6429de novo process set forth in section 120 . 57(3)(f) as follows:
6441In this context , the phrase " de novo hear ing "
6450is used to describe a form of intra - agency
6460review . The judge may receive evidence , as
6468with any formal hearing under section
6474120 . 57(1) , but the object of the proceeding
6483is to evaluate the action taken by the
6491agency . See Intercontinental Properties ,
6496I nc . v . Department of Health and
6505Rehabilitative Services , 606 So . 2d 380 (Fla .
65143d DCA 1992) (interpreting the phrase " de
6521novo hearing " as it was used in bid protest
6530proceedings before the 1996 revision of the
6537Administrative Procedure Act) .
6541State Contractin g and Eng ' g Corp . v . Dep ' t of Transp . , 709 So . 2d
6562at 609 .
656557 . The ultimate issue in this proceeding is " whether the
6576agency ' s proposed action is contrary to the agency ' s governing
6589statutes , the agency ' s rules or policies , or the bid or proposal
6602speci fications . " Warley Park must establish that Florida
6611Housing ' s violation was either clearly erroneous , contrary to
6621competition , arbitrary , or capricious . §§ 120 . 57(3)(f) , Fla .
6632Stat .
663458 . Agency action will be found to be " clearly erroneous ,"
6645if it is without rational support and , consequently , the
6654Administrative Law Judge has a " definite and firm conviction that
6664a mistake has been committed . " U . S . v . U . S . Gypsum Co . , 333 U . S .
6688364 , 395 (1948) ; see also Pershing Indus . , Inc . v . Dep ' t of
6704Banking & Fin . , 591 So . 2d 991 , 993 (Fla . 1st DCA 1991) . Agency
6721action may also be found to be " clearly erroneous " if the
6732agency ' s interpretation of the applicable law conflicts with its
6743plain meaning and intent . Colbert v . Dep ' t of Health , 890 So . 2d
67601165 , 1166 (Fla . 1st DCA 2004) . In such a case , " judicial
6773deference need not be given " to the agency ' s interpretation . Id .
678759 . An act is " contrary to competition " if it runs contrary
6799to the objectives of competitive bidding , which have been long
6809held:
6810to protect th e public against collusive
6817contracts ; to secure fair competition upon
6823equal terms to all bidders ; to remove not
6831only collusion but temptation for collusion
6837and opportunity for gain at public expense ;
6844to close all avenues to favoritism and fraud
6852in various forms ; to secure the best values
6860for the [public] at the lowest possible
6867expense . . .
6871Wester v . Belote , 138 So . 2d 721 , 723 - 24 (Fla . 1931) ; see also
6888Harry Pepper & Assoc . , Inc . v . City of Cape Coral , 352 So . 2d
69051190 , 1192 (Fla . 2d DCA 1977) . In that reg ard , public officials
6919do not have the power " to make exceptions , releases and
6929modifications in the contract after it is let , which will afford
6940opportunities for favoritism , whether any such favoritism is
6948practiced or not . " Wester v . Belote , 138 So . 2d at 724 . The
6964public policy regarding exceptions and releases in contracts
6972applies with equal force to the contract procurement .
698160 . An " arbitrary " action is " one not supported by facts or
6993logic , or despotic . " A " capricious " action is " one which is
7004take n without thought or reason or irrationally . " Agrico Chem .
7016Co . v . Dep ' t of Envtl . Reg . , 365 So . 2d 759 , 763 (Fla . 1st DCA
70381978) ; see also Hadi v . Liberty Behavioral Health Corp . , 927 So .
70522d 34 , 38 - 39 (Fla . 1st DCA 2006) . If agency action is
7067justifiable u nder any analysis that a reasonable person would use
7078to reach a decision of similar importance , the decision is
7088neither arbitrary nor capricious . Dravo Basic Materials Co . ,
7098Inc . v . Dep ' t of Transp . , 602 So . 2d 632 , 634 n . 3 (Fla . 2d DCA
71211992) .
712361 . Ru le 67 - 60 . 006 is titled , " Responsibility of
7136Applicants . " Subsection (1) of the rule provides as follows:
7146(1) The failure of an Applicant to supply
7154required information in connection with any
7160competitive solicitation pursuant to this
7165rule chapter shall be grounds for a
7172determination of nonresponsiveness with
7176respect to its Application . If a
7183determination of nonresponsiveness is made by
7189the Corporation , the Application shall not be
7196considered .
719862 . Rule 67 - 60 . 008 provides:
7207The Corporation may waive Mi nor
7213Irregularities in an otherwise valid
7218Application . Mistakes clearly evident to the
7225Corporation on the face of the Application ,
7232such as computation and typographical errors
7238may be corrected by the Corporation ; however ,
7245the Corporation shall have no duty or
7252obligation to correct any such mistakes .
725963 . Rule 67 - 60 . 002(6) defines " Minor Irregularity " to mean
" 7272a variation in a term or condition of an Application pursuant to
7284this rule chapter that does not provide a competitive advantage
7294or benefit not enjoyed by other Applicants , and does not
7304adversely impact the interests of the Corporation or the public . "
731564 . Additionally , rule 67 - 60 . 006(1) provides that " the
7327failure of an Applicant to supply required information in
7336connection with any Competiti ve Solicitation pursuant to this
7345rule chapter shall be grounds for a determination of non -
7356responsiveness . " This language is consistent with section
7364287 . 012 , Florida Statutes , which indicates a responsive bid must
" 7375conform in all materials respects to the solicitation . " The
7385burden is thus on the applicant to provide a complete and
7396responsive response to the RFA .
740265 . To establish water and sewer availability , the RFA
7412requires letters from the water and sewer service providers that
7422are " D evelopment - spe cific ," dated within 12 months of the
7434application , and show availability " as of the Application
7442Deadline . "
744466 . Although Northside ' s WASA letter was dated within
745512 months of the application , it failed to show water and sewer
7467availability as of the Ap plication Deadline , and was not
7477development specific .
748067 . Florida Housing argues that the 30 - day validity
7491language of the WASA letter is boilerplate that is routinely
7501accepted and interpreted as only limiting the " conditions "
7509described in the letter , rather than the letter itself . This
7520argument is unconvincing . These conditions are the same
7529provisi ons which Mr . Ree cy believes " imply " the availability of
7541water and sewer service into the future .
754968 . Florida Housing defers to local governments wi th
7559respect to the interpretation of the local government ' s documents
7570that are submit ted as part of an RFA . Madison Hollow , LLC v .
7585Fla . Hous . Fin . Corp . , Case No . 15 - 3301 BID ( Fla. DOAH Oct . 28 ,
76062015 ; F HFC Dec . 11 , 2015) . Mr . Pile was very clear that Miami -
7623Dade issued the letter for a 30 - day period only because it is
7637meant to be a " snapshot " of availability at the time the letter
7649is requested . Florida Housing provided no reasoning as to why it
7661chose to ignore this interpretation and to revive this expired
7671l etter . Doing so is a clearl y erroneous and arbitrary act .
768569 . To allow Northside' s award to remain eligible without
7696satisfying this requirement would be clearly erroneous and
7704contrary to competition . Houston Street Manor Ltd . P ' ship v .
7718Fla . Hous . Fin . Corp . , Case No . 15 - 3302 BID ( Fla. DOAH Aug . 18 ,
77392015 ; FHFC Sept . 18 , 2015)(ignoring express requirements of RFA
7749would be both clearly erroneous and contrary to competition) .
775970 . This failure to demonstrate water and sewer
7768availability as of the A pplication Deadline is not a minor
7779irregularity that can be waived . In fact , Fl o r ida Housing
7792undertook no analysis during the application review process to
7801deem this as an irregularity or determine whether it was minor or
7813major .
781571 . There is no su ggestion that the WASA l etter ' s 30 - day
7832limitation was a computation or typographical error . The
7841submission of the expired letter was not an error that Florida
7852H ousing could overlook or Northside could correct after the fact .
7864HTG Hammock Ridge , LLC v . Fla . Hous . Fin . Corp . , Case No . 16 -
78831137 BID ( Fla. DOAH Apr . 19 , 2016 ; FHFC May 6 , 2016)(material
7896error is not waivable) .
790172 . More importantly , the interest of Florida Housing in
7911maintaining the credibility and integrity of its bidding process
7920requires th at it enforce the " Mandatory Item " when no prospective
7931vendor has contested its use via a challenge to the RFA
7942specifications . See Consultech of Jacksonville , Inc . v . Dep ' t of
7956Health , 876 So . 2d 731 , 734 (Fla . 1st DCA 2004)(vendor waived
7969right to challeng e agency ' s weighting of cost proposals by
7981failing to timely file a specifications protest) ; Optiplan , Inc .
7991v . Sch . Bd . of Broward Cnty . , 710 So . 2d 569 , 572 (Fla . 4th DCA
80111998)(by failing to timely file specifications protest , vendor
8019waived right to challe nge evaluation criteria in its award
8029challenge) .
803173 . The need for these Mandatory Items is not ambiguous .
8043W aiving such a specific Mandatory Item in the RFA would put it on
8057a " slippery slope " in which any mandatory requirement might be
8067considered wai vable . St . Elizabeth Gardens v . Fla . Hous . Fin .
8083Corp . , Case No . 16 - 4133BID ( Fla. DOAH Oct . 18 , 2016) , adopted in
8100relevant part , Case No. 16 - 032BP (F HFC Oct . 28 , 2016) . As noted
8116by the Administrative Law Judge in JPM Outlook One Ltd .
8127P artnershi p v . Fl orid a Housing Fin ance Corp . , Case No . 17 - 2499BID
8146( Fla. DOAH June 29 , 2017) (Recommended Order) :
8155[a]pplicants would be in doubt as to how
8163strictly Florida Housing intends to interpret
8169mandatory provisions in future RFAs . One
8176bidder would naturally suspect favor itism when
8183the agency waived mandatory specifications for
8189another bidder , thus undermining public
8194confidence in the integrity of the process .
8202It would not be in the interest of Florida
8211Housing or the public to intentionally
8217introduce ambiguity into this c lear RFA
8224provision .
8226Id . at p . 51 .
823374 . A strict objective review of the four corners of an
8245application may lead to results that appear harsh in individual
8255cases , but has the virtue of treating all applicants equally and
8266enabling Florida Housing to pr ocess the volume of applications
8276before it in a timely fashion . No rationale was proffered as to
8289why the inconsistency in the instant case became so trivial as to
8301be disregarded , when similar or even more trivial inconsistencies
8310in other cases were cause for rejection . See Douglas Gardens V ,
8322Ltd . v . Fla . Hous . Fin . Corp . , Case No . 16 - 0418 BID ( Fla. DOAH
8344Sept . 5 , 2012 ; FHFC Nov . 2 , 2012)(use of wrong form , though
8357identical to current form , not a " minor irregularity " ) ; JPM
8367Outlook One Ltd . P ' ship v . Fla . Hou s . Fin . Corp . , Case No . 17 -
83902499BID ( Fla. DOAH June 29 , 2017) (Recommended Order) (use of wrong
8402verification form not waivable) ; Culmer Place v . Fla . Hous . Fin .
8416Corp . , Case No . 12 - 003UC ( FHFC May 23 , 2012) , adopted in relevant
8432part , ( FHFC June 12 , 2012)(failu re to include sheet showing
8443computation by which fee waiver was calculated valid basis for
8453awarding no points) ; St . Elizabeth Gardens v . Fla . Hous . Fin .
8468Corp . , Case No . 16 - 4132 BID ( Fla. DOAH Oct . 18 , 2016) , adopted in
8486relevant part , ( FHFC Oct . 28 , 2016)(le tter dated outside allowed
8498period) .
850075 . Florida Housing ' s precedents demonstrate that i t p lace s
8514a high priority on establishing a bright line for applicants:
8524the applicant is responsible for the accurate completion of each
8534page and applicable exhibi t ; Florida Housing does not assist the
8545applicant nor does it engage in speculation as to the applicant ' s
8558intent ; inconsistencies or ambiguities on the face of
8566applications cause rejection . See Collins Park Apts . , LLC v .
8578Fla . Hous . Fin . Corp . , Case No . 12 - 043UC ( FHFC Sept . 5 , 2012) ,
8598adopted in relevant part , (F HFC Nov . 2 , 2012) ; Bonita Cove , LLC
8611v . Fla . Hous . Fin . Corp . , Case No . 08 - 056UC , ¶ 9 ( FHFC Sept . 8 ,
86342008 ; FHFC Sept . 26 , 2008) ; APD Housing Partners 20 , LP v . Fla .
8649Hous . Fin . Corp . , Case No . 09 - 069 ( F HFC Feb . 4 , 2010 ; FHFC
8669Feb . 26 , 2010) .
867476 . The waiver of a deviation that might disqualify an
8685otherwise winning bid gives the beneficiary of the waiver an
8695advantage or benefit over the other bidders . Robinson Elec . Co .
8708v . Dade Cnty . , 417 So . 2d 1032 , 1034 (Fla . 3d DCA 1982) ; Phil ' s
8727Expert Tree Serv . , Inc . v . Broward Cnty . Sch . Bd . , Case 06 -
87454499BID , ¶ 59 ( Fla. DOAH Mar . 19 , 2007 ; BC S B May 8 , 2007) .
8762A ccepting an expired letter from one entity would provide a
8773benefit over those who otherwise obtained a valid letter .
878377 . Northside Common ' s application also fails because the
8794WASA letter is not " Development - specific " as required by Section
8805Four A . 5 . g . of RFA 2017 - 103 . While the folio number , property
8823address , and name ( " Northside Commons " ) in the WA SA letter for
8836the proposed 2016 project are identical for the 2017 proposed
8846project , the number of units , type of h ousing , and the principals
8858of the applicants are not .
886478 . " Development - specific " is not a term defined in the
8876RFA . Northside Commons a nd Florida Housing argue that the RFA
8888does not require that the p rincipals of the addressee of the WASA
8901letter and the principal of the applicant match . However ,
8911Mr . Reecy indicated his belief that a WASA letter is sufficiently
" 8923D evelopment - specific " if i t focuses on the same types of units
8937(multi - family or single family) , number of units (equal to or
8949less than the proposed project) , and there is some commonality of
8960principals between the addressee of the letter and the current
8970applicant submitting the let ter .
897679 . According to Mr . Reecy ' s original testimony , the
8988complete lack of any shared principals between the addressee of
8998the WASA letter and the applicant , standing alone , made this
9008application non - responsive to RFA 17 - 103 , and this was not a
9022minor irregularity which c ould be waived .
903080 . Mr . Reecy ' s review of additional documents resulted in
9043his changed testimony that in recent responses to RFA ' s , at least
9056ten applicants lacked any commonality among the principals of the
9066a d dressees of the WASA letters and the applicants . Based upon
9079this additional information , Florid a Housing and Northside argue
9088that " past practice " dictates that a lack of commonality does not
9099play a part in the decision of whether a letter is " Development -
9112specific ," or at most it is a waivable minor irregularity .
912381 . In reality , Florida Housing has no " past practice "
9133entitled to deference on this issue . In reviewing the
9143applications in response to RFA 2017 - 103 , Flo r ida Housing did not
9157recognize a difference between the a ddressee , Northside Commons ,
9166L td. , and the applicant , Northside Commons Residential , LLC . Nor
9177has Florida Housing ever undertaken such a review of comparing
9187addressees to applicants of the WASA letters because until this
9197hearing , no prior applicant raised the issue .
920582 . Assuming for argument ' s sake that the lack of
9217commonality is not an issue , no evidence or explanation was
9227presented to explain how a letter for a 108 - unit development for
9240the elderly was also " Development - specific " for a n 80 - unit
9253deve lopment for homeless persons and persons with disabling
9262conditions .
926483 . Florida Housing and Northside suggest that the only
9274relevant question is whether the WASA letter verifies water and
9284sewer availability at a particular location . This interpret ation
9294cannot be accepted as it is contrary to Mr . Reecy ' s testimony
9308and , more importantly , would render meaningless the requirement
9316that the letters demonstrating availability be " Development -
9324specific . " Gulfstream Park Racing Ass ' n v . Tampa Bay Downs ,
9337Inc . , 948 So . 2d 599 , 606 (Fla . 2006)( " elementary principle of
9351statutory construction that significance and effect must be given
9360to every word , phrase , sentence , and part of the statute if
9371possible , and words in a statute should not be construed as mere
9383surpl usage " ) .
938784 . For the reasons above , Florida Housing ' s acceptance of
9399Northside ' s WASA l etter , upon which the preliminary agency action
9411was based , is clearly erroneous and contrary to the
9420specifications of RFA 2017 - 103 , and the deviation from the
9431speci fications is not a Minor Irregularity . Therefore , it is
9442concluded that Warley Park has carried its burden of proving that
9453Florida Housing ' s proposed decision regarding the e ligibility of
9464Northside in this case was clearly erroneous , arbitrary , or
9473capricio us , contrary to the governing statutes , rules , or RFA
9483specifications , or was contrary to competition .
9490RECOMMENDATION
9491Based on the foregoing Findings of Fact and Conclusions of
9501Law , it is RECOMMENDED that Florida Housing Finance Corporation
9510enter a final or der amending its preliminary decision awarding
9520funding to Warley Park by:
9525( 1) finding Northside ineligible for funding ; and
9533( 2) awarding funding to Warley Park as the next highest
9544scoring eligible applicant .
9548DONE AND ENTERED this 19th day of October , 20 17 , in
9559Tallahassee , Leon County , Florida .
9564S
9565MARY LI CREASY
9568Administrative Law Judge
9571Division of Administrative Hearings
9575The DeSoto Building
95781230 Apalachee Parkway
9581Tallahassee , Florida 32399 - 3060
9586(850) 488 - 9675
9590Fax Filing (850) 921 - 6847
9596www . doah . state . fl . us
9605Filed with the Clerk of the
9611Division of Administrative Hearings
9615this 19th day of October , 2017 .
9622ENDNOTE S
96241/ As the Director of Multifamily Programs at Florida Housing,
9634Mr . Reecy is the final arbiter of whether an e rror was made in
9649scoring an application . Further, he has the authority to say
9660that Florida Housing is going to change its position if he finds
9672that Florida Housing improperly accepted a letter of
9680availability .
96822/ Indeed , Hurricane Irma recently demonstr ated the destructive
9691power of storms to unexpectedly wipe out infrastructure in a
9701matter of hours in South Florida .
97083/ All but one of the documents from Sunbiz . org were filed in
97222017 ; the exception being Calpesa Holdings, LLC . Its documents
9732were filed w ith the Secretary of State in February 2015, over a
9745month after the application was filed with Florida Housing .
9755COPIES FURNISHED:
9757Douglas P . Manson , Esquire
9762William S. Bilenky, Esquire
9766Manson Bolves Donaldson Varn , P . A .
97741101 West Swann Avenue
9778Tampa , Flo rida 33606 - 2637
9784(eServed)
9785Craig D . Varn , Esquire
9790Manson Bolves Donaldson Varn , P.A.
9795106 East College Avenue , Suite 820
9801Tallahassee , Florida 32301
9804(eServed)
9805Michael George Maida , Esquire
9809Michael G . Maida , P . A .
98171709 Hermitage Boulevard , Suite 201
9822Tallaha ssee , Florida 32308
9826(eServed)
9827Christopher Dale McGuire , Esquire
9831Florida Housing Finance Corporation
9835227 North Bronough Street , Suite 5000
9841Tallahassee , Florida 32301 - 1329
9846(eServed)
9847Joseph M . Goldstein , Esquire
9852Shutts & Bowen , LLP
9856200 East Broward Boulev ard , Suite 2100
9863Fort Lauderdale , Florida 33301
9867(eServed)
9868Hugh R. Brown, General Counsel
9873Florida Housing Finance Corporation
9877227 North Bronough Street, Suite 5000
9883Tallahassee, Florida 32301 - 1329
9888(eServed)
9889Corporation Clerk
9891Florida Housing Finance Corpo ration
9896227 North Bronough Street, Suite 5000
9902Tallahassee, Florida 32301 - 1329
9907(eServed)
9908NOTICE OF RIGHT TO FILE OBJECTIONS
9914All parties have the right to submit written objections within 5
9925days from the date of this Recommended Order . Any objections to
9937this Recommended Order should be filed with the agency that will
9948issue the final order in this case and shall be filed and served
9961exclusively by email .
- Date
- Proceedings
- PDF:
- Date: 10/26/2017
- Proceedings: Transmittal letter from Claudia Llado forwarding Intervenor's Exhibits not offered into evidence to Intervenor.
- PDF:
- Date: 10/26/2017
- Proceedings: Transmittal letter from Claudia Llado forwarding Petitioner's Exhibit not offered into evidence to Petitioner.
- PDF:
- Date: 10/19/2017
- Proceedings: Recommended Order (hearing held August 18 and 25, 2017). CASE CLOSED.
- PDF:
- Date: 10/19/2017
- Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
- PDF:
- Date: 09/29/2017
- Proceedings: (Intervenor's Northside Commons Residential, LLC) Proposed Recommended Order filed.
- PDF:
- Date: 09/19/2017
- Proceedings: Order Denying Motion to Strike Portions of Deposition of Douglas Pile.
- Date: 09/19/2017
- Proceedings: Transcript of Proceedings (not available for viewing) filed.
- PDF:
- Date: 09/05/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Response in Opposition to Petitioners' Motion to Strike Portions of Deposition of Douglas Pile filed.
- PDF:
- Date: 08/28/2017
- Proceedings: Petitioners' Motion to Strike Portions of Deposition of Douglas Pile filed.
- Date: 08/25/2017
- Proceedings: CASE STATUS: Hearing Held.
- PDF:
- Date: 08/24/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Response to Petitioners' Motion to Strike filed.
- PDF:
- Date: 08/24/2017
- Proceedings: Petitioners Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Objection to Continuance of Hearing filed.
- PDF:
- Date: 08/23/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC, and Step Up Developer, LLC's Motion to Strike filed.
- PDF:
- Date: 08/21/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Notice of Production filed.
- PDF:
- Date: 08/21/2017
- Proceedings: Notice of Hearing (hearing set for August 25, 2017; 1:00 p.m.; Tallahassee, FL).
- PDF:
- Date: 08/21/2017
- Proceedings: Petitioners, Warley Park, LTD., Warley Park Developer, LLC, and Step Up Developer, LLC's Notice of Taking Deposition of Ken Reecy of Florida Housing Finance Corporation filed.
- Date: 08/18/2017
- Proceedings: CASE STATUS: Hearing Partially Held; continued to date not certain.
- PDF:
- Date: 08/15/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Response to Petitioners' Motion in Limine filed.
- PDF:
- Date: 08/14/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' Second Requests for Admission filed.
- PDF:
- Date: 08/14/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' Second Requests for Admission filed.
- PDF:
- Date: 08/14/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' Third Request for Production filed.
- PDF:
- Date: 08/14/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Response to Petitioners' Motion for Attorney's Fees and Costs filed.
- PDF:
- Date: 08/11/2017
- Proceedings: Response to Petitioner's Motion for Attorney's Fees and Costs filed.
- PDF:
- Date: 08/11/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Second Requests for Admission to Florida Housing Finance Corporation (w-exhibits) filed.
- PDF:
- Date: 08/11/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Second Requests for Admission to Northside Commons Residential, LLC (w-exhibits) filed.
- PDF:
- Date: 08/10/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC, and Step Up Developer, LLC's Motion in Limine filed.
- PDF:
- Date: 08/09/2017
- Proceedings: Petitioners Warley Park, Ltd, Warley Park Developer, LLC and Step Up Developer, LLC's Second Request for Production to Florida Housing Finance Corporation filed.
- PDF:
- Date: 08/09/2017
- Proceedings: Petitioners Warley Park, Ltd, Warley Park Developer, LLC and Step Up Developer, LLC's Third Request for Production to Northside Commons Residential, LLC filed.
- PDF:
- Date: 08/09/2017
- Proceedings: Petitioners Warley Park, Ltd, Warley Park Developer, LLC and Step Up Developer, LLC's Second Requests for Admission to Northside Commons Residential, LLC filed.
- PDF:
- Date: 08/09/2017
- Proceedings: Petitioners Warley Park, Ltd, Warley Park Developer, LLC and Step Up Developer, LLC's Second Requests for Admission to Florida Housing Finance Corporation filed.
- PDF:
- Date: 08/08/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Motion for Attorney's Fees and Costs filed.
- PDF:
- Date: 08/08/2017
- Proceedings: Petitioners', Warley Park, LTD., Warley Park Developer, LLC, and Step Up Developer, LLC's Amended Notice of Taking Deposition of Corporate Representative of Florida Housing Finance Corporation filed.
- PDF:
- Date: 08/08/2017
- Proceedings: Petitioners', Warley Park, LTD., Warley Park Developer, LLC, and Step Up Developer, LLC's Notice of Taking Deposition of Corporate Representative of Florida Housing Finance Corporation filed.
- PDF:
- Date: 08/04/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' Second Request for Production filed.
- PDF:
- Date: 08/01/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Notice of Taking Deposition of Ken Reecy filed.
- PDF:
- Date: 07/27/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Request for Production to Northside Commons Residential, LLC filed.
- PDF:
- Date: 07/27/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Notice of Taking Deposition of Douglas Pile and Corporate Representative of Miami-Dade Water and Sewer Dept. filed.
- PDF:
- Date: 07/26/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Notice of Serving Responses to First Set of Interrogatories filed.
- PDF:
- Date: 07/26/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' First Request for Production filed.
- PDF:
- Date: 07/26/2017
- Proceedings: Intervenor Northside Commons Residential, LLC's Responses to Petitioners' First Requests for Admission filed.
- PDF:
- Date: 07/26/2017
- Proceedings: Amended Response to Petitioners' First Request for Admissions filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Notice of Service of Interrogatories to Northside Commons Residential, LLC filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's Notice of Service of Interrogatories to Florida Housing Finance Corporation filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's First Request for Production to Northside Commons Residential, LLC filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's First Request for Production to Florida Housing Finance Corporation filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's First Requests for Admission to Northside Commons Residential, LLC filed.
- PDF:
- Date: 07/21/2017
- Proceedings: Petitioners' Warley Park, LTD, Warley Park Developer, LLC and Step Up Developer, LLC's First Requests for Admission to Florida Housing Finance Corporation filed.
- PDF:
- Date: 07/20/2017
- Proceedings: Notice of Hearing (hearing set for August 18, 2017; 9:00 a.m.; Tallahassee, FL).
- Date: 07/20/2017
- Proceedings: CASE STATUS: Pre-Hearing Conference Held.
Case Information
- Judge:
- MARY LI CREASY
- Date Filed:
- 07/17/2017
- Date Assignment:
- 07/18/2017
- Last Docket Entry:
- 12/12/2017
- Location:
- Tallahassee, Florida
- District:
- Northern
- Agency:
- ADOPTED IN PART OR MODIFIED
- Suffix:
- BID
Counsels
-
William S. Bilenky, Esquire
Address of Record -
Hugh R Brown, General Counsel
Address of Record -
Gary J. Cohen, Esquire
Address of Record -
Joseph M. Goldstein, Esquire
Address of Record -
Michael George Maida, Esquire
Address of Record -
Douglas P Manson, Esquire
Address of Record -
Christopher Dale McGuire, Esquire
Address of Record -
Paria Shirzadi, Esquire
Address of Record -
Craig D Varn, Esquire
Address of Record -
Paria Shirzadi Heeter, Esquire
Address of Record -
Craig D. Varn, Esquire
Address of Record