21-003488BID Htg Oasis, Llc vs. Florida Housing Finance Corporation; And Lofts On 36, Ltd Status: Closed Recommended Order on Wednesday, December 22, 2021.

Summary: Petitioner proved, by stipulation of the parties, that intended award of RFA was clearly erroneous.

S TATE OF F LORIDA

D IVISION OF A DMINISTRATIVE H EARINGS

H TG O ASIS , LLC ,

Petitioner ,

vs. Case No. 21 - 3488BID

F LORIDA H OUSING F INANCE

C ORPORATION ; A ND L OFTS O N 36, L TD ,

Respondents,

and

C OCO P ALM P LACE , L P ,

Intervenor .

/

R ECOMMENDED O RDER

Pursuant to notice, a formal administrative hearing was conducted on

December 14, 2021, before Administrative Law Judge Suzanne Van Wyk of

the Division of Administrative Hearings (Ñ DivisionÒ).

A PPEARANCES

For Petitioner HTG Oasis, L LC (ÑOasisÒ):

J. Stephen Menton, Esquire

Rutledge Ecenia, P.A.

119 South Monroe Street, Suite 202

Post Office Box 551

Tallahassee, Florida 3230 2

For Respondent Florida Housing Finance Corporation (ÑFlorida HousingÒ):

Betty Zachem, Esquire

Florida Housing Finance Corporation

Suite 5000

227 North Bronough Street

Tallahassee, Florida 32301 - 1329

For Respondent Lofts on 36, Ltd. (ÑLofts on 36Ò):

Lawrence E. Sellers, Jr., Esquire

Tiffany A. Rodde nberry, Esquire

Kathryn Isted, Esquire

Holland & Knight, LLP

315 South Calhoun Street, Suite 600

Tallahassee, Florida 32301

For Intervenor Coco Palm Place, L P (ÑCoco PalmÒ):

No appearance.

S TATEMENT OF T HE I SSUE

Whether Florida HousingÔs preliminar y award of funding to Coco Palm,

and its determination that the application submitted by Lofts on 36 is eligible

for funding, is clearly erroneous, contrary to competition, arbitrary or

capricious, or contrary to Florida HousingÔs governing statutes, rules ,

policies, or the Request for Application specifications.

P RELIMINARY S TATEMENT

This case arises from Florida HousingÔs notice of preliminary award of

funding for applications submitted pursuant to RFA 2021 - 203, ÑHousing

Credit F inancing For Afford a ble H o u s ing De v elopments Located In Miami -

Dade CountyÒ (Ñthe RFAÒ). In response to the RFA, Oasis ; C oco Palm ;

Princeton Palms Place, Ltd. (ÑPrinceton PalmsÒ) ; and Lofts on 36 submitted

applications seeking funding. Coco Palm was preliminarily selected for

fundi ng. Oasis, Princeton Palms, and Lofts on 36 were found eligible for

funding but were not selected for funding. Oasis timely filed a Formal

Written Protest and Petition for Administrative Hearing challenging the

eligibility and selection of Coco PalmÔs appl ication for funding. In particular,

Oasis alleged that the applications for Coco Palm and Princeton Palms 1

1 Princeton PalmsÔ application was determined eligible , but was not selected for funding.

Princeton PalmsÔ application was not within the funding range.

violated Florida Administrative Code Rule 67 - 48 . 004(1). Oasis also

challenged Florida HousingÔs determination that Lofts on 36 was eligible for

fundi ng. Lofts on 36 appeared in this proceeding as a named party.

Prior to the Final Hearing, Oasis, Florida Housing , and Lofts on 36

entered into a Joint Stipulation that Lofts on 36 was not eligible for funding

in this RFA. The only issue remaining for res olution was OasisÔ challenge to

Coco PalmÔs application. Prior to hearing, Coco Palm appeared in this

proceeding for the limited purpose of entering the Stipulation for Entry of

Findings of Fact and Recommended Order with Oasis and Florida Housing.

Coco Pa lm, Princeton Palms, Oasis, and Florida Housing stipulated that Coco

PalmÔs and Princeton PalmsÔ respective applications are ineligible for funding

under the RFA.

Pursuant to an Amended Notice of Hearing, the hearing was held on

December 14, 2021. The pa rties submitted Joint Exhibits 1 and 2, and no

testimony was offered. The parties timely submitted a Joint Proposed

Recommended Order, which has been considered in preparing this

Recommended Order.

F INDINGS OF F ACT

1. On July 20, 2021, Florida Housing is sued the RFA seeking applications

for Housing Credit Financing for Affordable Housing Developments Located

in Miami - Dade County.

2. Oasis, Coco Palm, Princeton Palms, and Lofts on 36 all submitted

applications in response to the RFA.

3. Florida HousingÔs Review Committee for the RFA met and reviewed all

responsive applications to the RFA and carried out the funding selection

process in accordance with s ection 5.B. of the RFA. On October 22, 2021,

Florida HousingÔs Board of Directors approved the recommenda tion of the

Review Committee to select the following three applications for funding and

invite the applicants to enter credit underwriting: Cordova Estates ; Naranja

Grand ; and Coco Palm.

4. The Coco Palm and Princeton Palms Ô applications are ineligible fo r

funding.

5. Lofts on 36Ôs application is ineligible for funding.

6. OasisÔ application is next in line for funding after Coco Palm and Lofts

on 36.

7. OasisÔ application has not been challenged and is eligible for funding.

8. Given the agreements of i neligibility by other applicants for this RFA

and, pursuant to the terms of the RFA, OasisÔ application will be selected for

funding subject to the successful completion of credit underwriting.

C ONCLUSIONS OF L AW

9. The Division has jurisdiction over the parties to, and subject matter of,

this proceeding. § 120.57(1) and (3), Fla. Stat. (2021) .

10. This is a competitive procurement protest proceeding and as such is

governed by section 120.57(3)(f), Florida Statutes, which provides that the

burden of proof rests with Petitioner as the party opposing the proposed

agency action.

11. Oasis met its burden to demonstrate that the applications submitted

by Coca Palm and Lofts on 36 are ineligible for funding, and that OasisÔ

application should be selected for fund ing.

12. Oasis met its burden to prove that Florida HousingÔs intended award

to Coco Palm, and its determination that the application submitted by Lofts

on 36 is eligible for funding, are clearly erroneous.

R ECOMMENDATION

Based on the foregoing Findings o f Fact and Conclusions of Law, it is

R ECOMMENDED that Florida Housing enter a final order as to RFA 2021 - 203

finding that Coco Palm, Princeton Palms, and Lofts on 36 are ineligible for

funding , and that Oasis be selected for funding subject to the successf ul

completion of credit underwriting.

D ONE A ND E NTERED this 22nd day of December , 2021 , in Tallahassee,

Leon County, Florida.

S

S UZANNE V AN W YK

Administrative Law Judge

1230 Apalachee Parkway

Tallahassee, Florida 32399 - 3060

(850) 488 - 9675

www.doah.state.fl.us

Filed with the Clerk of the

Division of Administrative Hearings

this 22nd day of December , 2021 .

C OPIES F URNISHED :

Hugh R. Brown, General Counsel Betty Zachem, Esquire

Florida Housing Finance Corporation Florida Housing Finance Corporation

Suite 5000 Suite 5000

227 North Bronough Street 227 North Bronough Street

Tallahassee, Florida 32301 - 1329 Tallahassee, Florida 32301 - 1329

J. Stephen Menton, Esquire Tana D. Storey, Esquire

Rutledge Ecenia, P.A. Rutledge Ecenia, P.A.

119 South Monroe Street, Suite 202 Suite 202

(32301) 119 South Monroe Street

Post Office Box 551 Tallahassee, Florida 3 2301

Tallahassee, Florida 32302

Tiffany A. Roddenberry, Esquire

Lawrence E. Sellers, Jr., Esquire Holland & Knight, LLP

Holland & Knight, LLP Suite 600

Suite 600 315 South Calhoun Street

315 Sou th Calhoun Street Tallahassee, Florida 32301

Tallahassee, Florida 32301

Kathryn Isted, Esquire Seann M. Frazier, Esquire

Holland & Knight LLP Parker, Hudson, Rainer & Dobbs, LLP

Suite 600 Suite 750

315 South Calhoun Street 215 South Monroe Street

Tallahassee, Florida 32317 Tallahassee, Florida 32301

Corporation Clerk

Florida Housing Finance Corporation

Suite 5000

227 North Bronough Street

Tallahass ee, Florida 32301 - 1329

N OTI CE OF R IGHT T O S UBMIT E XCEPTIONS

All parties have the right to submit written exceptions within 1 0 days from

the date of this Recommended Order. Any exceptions to this Recommended

Order should be filed with the agency that will issue the Final Order in thi s

case.