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.


View Dockets  
Summary: Petitioner demonstrated that FHFC's intended grant was contrary to solicitation specifications because Intervenor's water and sewer letter was not development-specific and failed to show availability as of the application deadline.

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 .

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PDF
Date
Proceedings
PDF:
Date: 12/12/2017
Proceedings: Agency Final Order filed.
PDF:
Date: 12/08/2017
Proceedings: Agency Final Order
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
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: Petitioners' Proposed Recommended Order filed.
PDF:
Date: 09/29/2017
Proceedings: Respondent's Proposed Recommended Order filed.
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.
PDF:
Date: 08/28/2017
Proceedings: Petitioner's Notice of Service of Petitioner's Exhibit 14 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: Order on Objection to Continuance of Hearing.
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: 08/16/2017
Proceedings: Petitioners' Corrected Exhibit List filed.
PDF:
Date: 08/16/2017
Proceedings: Joint Pre-hearing Stipulation filed.
PDF:
Date: 08/15/2017
Proceedings: Order Denying Motion in Limine.
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: Response to Petitioners' Motion in Limine filed.
PDF:
Date: 08/14/2017
Proceedings: Response to Petitioners' Second Request for Admissions 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: 08/01/2017
Proceedings: Cross Notice of Taking Deposition 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: 07/26/2017
Proceedings: 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: 07/21/2017
Proceedings: Notice of Appearance (Paria Shirzadi) filed.
PDF:
Date: 07/20/2017
Proceedings: Order of Pre-hearing Instructions.
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.
PDF:
Date: 07/18/2017
Proceedings: Notice of Appearance (Gary Cohen) filed.
PDF:
Date: 07/18/2017
Proceedings: Notice of Appearance (Joseph Goldstein) filed.
PDF:
Date: 07/17/2017
Proceedings: Notice of Appearance (Chris McGuire).
PDF:
Date: 07/17/2017
Proceedings: Notice to All Bidders on RFA 2017-103 filed.
PDF:
Date: 07/17/2017
Proceedings: Notice of Protest filed.
PDF:
Date: 07/17/2017
Proceedings: Amended Formal Written Protest of Award and Petition for Administrative Hearing filed.
PDF:
Date: 07/17/2017
Proceedings: Agency referral filed.

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

Related Florida Statute(s) (2):

Related Florida Rule(s) (1):