Commission approves waiver of right of first refusal tied to 25 workforce-housing units; lender will preserve restrictions in foreclosure

The Palm Beach County Board of County Commissioners voted 6-0 to approve a staff-recommended waiver of the county's right of first refusal under a workforce-housing covenant for a multifamily development, preserving 25 units of workforce housing as part of a lender-requested refinancing arrangement.

Staff, speaking through the assistant county attorney, explained that the lender requested the waiver in exchange for contract language that would allow the covenant's restrictions to survive a foreclosure. The staff recommendation said that if the county did not waive the right of first refusal, the workforce-housing units could be lost in a foreclosure scenario. The assistant county attorney said, "We think this is a good deal for us and we recommend you approve it." Commissioner Maria Marino moved to approve; Vice Mayor Marci Woodward seconded; the motion carried 6-0.

Staff told the board they will meet next month to discuss potential amendments to workforce-housing covenants and plan to return to the BCC zoning meeting in May to seek direction on covenant language and the waiver process.

Why it matters: The waiver facilitates lender refinancing while aiming to preserve workforce-housing restrictions in the event of foreclosure, a protection staff said is beneficial to the county compared with the alternative. The item affects the long-term status of 25 workforce units associated with the project.

What happens next: Staff will meet to review covenant language and return to the zoning meeting to seek direction on broader covenant amendments and procedures for future waiver requests.