A Resolution of the City of Sunrise, Florida, approving a “First Amendment to Agreement for Sale and Purchase between the City of Sunrise and New Urban Sunset Strip, LLC”; and providing an effective date. City Manager Mark Lubelski. Danielle Lima, Economic Development Director.

In furtherance of the East Sunrise Improvements Master Plan, the City Commission entered into a Purchase and Sale Agreement with New Urban Sunset Strip, LLC on September 30, 2021, via Ordinance No. 676. In 2023, the City Commission subsequently approved a Development Agreement, rezoning (from CF to RM-10), plat, and site plan for the Sunset Strip Square project. The project includes 29 two-story single-family homes, and the plan aligns with the vision outlined in the East Sunrise Improvements Master Plan.

As previously approved, the applicant committed to restrict the homes in the Sunset Strip Square project to provide for affordable housing as detailed below:

• Restrict 25% of the total homes, specifically seven (7) homes, for households earning between eighty percent 80% and 100% of the median income per a 30-year deed restriction;
• Restrict 25% of the total homes, specifically seven (7) homes, for households earning between 100% and 140% of the median income per a 30-year deed restriction;
• Restrict 40% of the total homes, specifically twelve (12) homes, for households earning between 100% and 140% of the median income per a 15-year deed restriction; and
• The remaining three (3) homes will not be restricted, but homes will be affordable for households earning between 100% and 140% of the median income.

Since the project’s original approval, market conditions have changed significantly. Construction costs and interest rates have increased, making it difficult for the Developer to secure financing under the original affordability structure. As an alternative, the Developer was able to secure affordable housing GAP funding from Broward County. However, the County’s funding guidelines require that all funded units be restricted to households earning no more than 120% of AMI. Since many of the original units were approved up to 140% AMI, adjustments are required to qualify for the County’s GAP funding. To proceed with closing on the financing, the Purchase and Sale Agreement and all associated approvals must be amended to reflect this updated affordability commitment.

As a result, the Developer requested an amendment to the proposed project in order to be in conformance with the Broward County requirements for the project’s financing. The proposed First Amendment to the Purchase and Sale Agreement provides for a revision to the affordability structure within Exhibit B of the Agreement. The applicant has revised the commitment to restrict all units within the project as detailed below:

• Restrict 100% of the total homes, twenty-nine (29) homes in total, for households earning no more than 120% of the Broward County median household income for a period of fifteen (15) years.

The applicant is not requesting to make any additional changes to the Purchase and Sale Agreement. Staff recommends approval of the “First Amendment to the Purchase and Sale Agreement” for Sunset Strip Square.