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Public Hearing for Tax Equity and Fiscal Responsibility Act and Host Approval Request For National Finance Authority Tax Exempt Revenue Bonds for Advanced Housing & Community Services Corporation of Maryland, Inc., and/or Affiliates, for Spring Gardens Detox Project, Series 2026, in an Aggregate Principal Amount Not to Exceed $50,000,000 and Associated Resolution
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BRIEF OVERVIEW
The Borrower requests that the Board of County Commissioners of Hernando County, Florida (the “BOCC”) (a) conduct a public hearing, and (b) adopt a resolution approving, solely for the purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), the issuance by the National Finance Authority of its tax-exempt revenue bonds in an aggregate principal amount not to exceed $50,000,000 (the “Bonds”) to finance a behavioral health facility located in unincorporated Hernando County.
The Issuer
The National Finance Authority is a public body corporate and politic of the State of New Hampshire that issues conduit revenue bonds for qualified projects located throughout the United States, including Florida. The Issuer’s bonds are limited obligations payable solely from loan repayments made by the Borrower. They are not obligations of Hernando County, the State of Florida, or any political subdivision of either.
The Borrower
Advanced Housing & Community Services Corporation of Maryland LLC is a Maryland limited liability company whose sole member is Advanced Housing & Community Services Corporation of Maryland Inc., a nonprofit corporation recognized by the Internal Revenue Service as an organization described in Section 501(c)(3) of the Code and registered to transact business in Florida. The Borrower is acquiring a multi-state portfolio of substance use disorder treatment facilities, of which the Hernando County facility described below is one.
The Project
The Hernando County project consists of the acquisition, construction, renovation, expansion, improvement, and equipping of the land and facilities of Spring Hill Wellness LLC, doing business as Spring Gardens Detox, located at 8213 and 8217 Cessna Drive, Spring Hill, Hernando County, Florida 34606 (the “Project”). The Project site consists of approximately 3.0 acres improved with two single-story buildings comprising approximately 7,876 square feet in the aggregate, currently licensed for approximately 20 beds and operated as a residential substance use disorder treatment facility providing ASAM Level 3.7 medically monitored withdrawal management (detoxification) and ASAM Level 3.5 clinically managed high-intensity residential treatment. Bond proceeds will also finance construction of a new dual-use residential and administrative building of approximately 7,400 square feet on the site, increasing the licensed capacity of the facility to approximately 40 beds, together with related improvements and equipment. Construction of the new building has been reviewed with the County’s Planning and Zoning Division and is consistent with the site’s existing special exception approval.
The Bonds
The Bonds allocated to the Project will not exceed $50,000,000 in aggregate principal amount. The Bonds are expected to be issued as part of a larger issue of bonds by the Issuer to finance the Borrower’s facilities in Florida and other states; approval by the BOCC is requested only with respect to the portion of the Bonds allocated to the Project located in Hernando County. The Bonds are expected to be issued in the fourth quarter of 2026.
What the Borrower is specifically asking the BOCC to do.
1. Open and conduct the public hearing on the proposed issuance of the Bonds and the Project, following notice published in the Tampa Bay Times on October 16, 2026, not less than seven (7) days before the hearing, and afford all interested persons a reasonable opportunity to express their views, orally or in writing.
2. Close the public hearing.
3. Adopt the attached Resolution approving the issuance of the Bonds by the Issuer, in an amount not to exceed $50,000,000 with respect to the Project, solely for the purpose of satisfying the public approval requirement of Section 147(f) of the Code.
What the BOCC is not being asked to do.
The requested approval is the “host approval” required by federal tax law and nothing more. Specifically:
• The County is not the issuer of the Bonds and will not be a party to any bond, loan, trust, or other financing document.
• The County is not asked to pledge, lend, or appropriate any County funds, revenues, credit, or taxing power, and will have no obligation, financial or otherwise, with respect to the Bonds or the Project.
• The approval does not constitute an endorsement of the Borrower, the Project, or the creditworthiness of the Bonds, and does not represent that the Bonds are a suitable investment for any person.
• The approval does not constitute or substitute for any land use, zoning, building, environmental, licensing, or other regulatory approval, all of which remain subject to the County’s ordinary processes and the Borrower’s compliance with applicable law.
• The County will incur no cost. The Borrower has paid for publication of the notice and will bear all costs of the financing.
Why Hernando County.
Because the Issuer is a New Hampshire public body, the approval of the Issuer’s own governmental unit does not satisfy the host-approval requirement for a Florida facility. Federal tax law requires approval by the governmental unit having jurisdiction over the area in which the financed facility is located. The Project is located in Spring Hill, which is unincorporated, so Hernando County is the governmental unit having jurisdiction, and the BOCC, as the County’s elected legislative body, is the “applicable elected representative” whose approval is required.
FINANCIAL IMPACT
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LEGAL NOTE
The Board has the authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board review and consider approval of the attached Resolution following the public hearing and authorize the Chairman to execute the Resolution. Adoption of the Resolution will satisfy the host-approval requirement of Section 147(f) of the Internal Revenue Code with respect to the Project and permit the Issuer to issue the Bonds allocated to the Project on a tax-exempt basis. The approval must be obtained before the Bonds are issued and will remain effective for Bonds issued within one year of the date of approval.