Title
Resolution Authorizing a Commitment of Funds to Elmsley Trail, LLC, Bells Summit, LP, Printworks Ventures, LLC, and Affordable Housing Management, Inc. for Multi-Family Affordable Housing Development Projects
Body
Department: Neighborhood Development
Council Districts: 1, 2, and 4
Public Hearing: Not Applicable
Advertising Date/By: Not Applicable
Contact 1 and Phone: Stan Wilson, 336-373-2509
Contact 2 and Phone: Cynthia Blue, 336-433-7376
PURPOSE:
City Council consideration is requested for a commitment of funds for the Elmsley Trail, Bells Summit, and Printworks Lofts Multi-Family Affordable Housing Development projects as recommended by the Planning Board. City Council consideration is also requested for the Muirs Landing Project, contingent on the successful rezoning of the property located at 303 Muirs Chapel Road and 4803 & 4809 Kenview Street that has been appealed to City Council.
BACKGROUND:
A request for proposals for multi-family affordable housing development projects was issued in February, 2018. A total amount of $4,400,000 million in federal HOME and Housing Bond funds was projected to be available for commitment. An additional $400,000 in Supportive Housing Bond funds was included for permanent supportive housing projects. No projects currently qualified for those funds, so they will be included in a future request for proposals for supportive housing.
At the March 21, 2018 meeting, the Planning Board recommended $3,998,437 in funding as outlined on the attached summary for multi-family affordable housing development projects to fund the following projects:
• Elmsley Trail - 518-522 Kallamdale Rd. - $750,000. New construction of 60 family units serving low income households at 30%, 50% and 80% of Area Median Income. The project is ready to begin construction. Loan terms: 2 percent interest, 20 year term and amortization schedule. In permanent financing, the City lien will be in third position behind the bank loan and the North Carolina Housing Finance Agency.
• Bells Summit - 2400 Summit Ave. - $448,437. New construction of 48 senior and disabled units serving low income households at 30%, 50% and 60% of Area Median Income. Project needs a Low Income Housing Tax Credit award to move forward.
• Printworks Lofts - 1700 Fairview St. - $2,800,000. Adaptive reuse of Printworks Mill for 217 family units serving low and moderate income households at 80% and 120% of Area Median Income. The project is ready to begin construction. Loan terms: 1 percent interest, 30 year term and amortization schedule. Payments will begin five years from the completion of the project’s residential component. In construction and permanent financing, the City lien will be in second position.
In addition to the Planning Board recommendation, City Council consideration is requested for an additional conditional commitment using the remaining $401,563 in Multifamily Housing Bond funds for the following project:
• Muirs Landing - 303 Muirs Chapel Road and 4803 & 4809 Kenview Street - $401,563. New construction of 72 family units serving low income households at 30%, 50% and 60% of Area Median Income. Project needs Low Income Housing Tax Credit award and zoning approval at the April 17, 2018 City Council meeting to move forward.
The Bells Summit and Muirs Landing projects are applying for additional funding from the North Carolina Housing Finance Agency for Low Income Housing Tax Credits [LIHTC]. They require a City commitment letter prior to the final application submittal on May 11. The LIHTC award announcement is anticipated in August.
Staff is recommending approval of a time-limited conditional commitment to Bells Summit, LP and Affordable Housing Management, Inc. If these projects are successful in obtaining the tax credits, they will return to City Council for it to consider final approval of contract funding.
Staff is recommending approval of financing commitments to Elmsley Trail, LLC and Printworks Ventures, LLC and authorization of City Manager to execute loan closing documents.
BUDGET IMPACT:
Total project requests: $4,400,000
Funds are available in the following sources:
$2,120,000.00 483-2201-03 Multi-family Affordable Housing Development Bonds
$ 435,794.49 473-2205-01 Bond Funds - Multi-family Affordable Housing Development
$ 244,205.51 483-2201-02 Handicapped Accessibility & Housing for Special Populations
$ 205,043.00 213-9015-02 Affordable Housing RFP (HOME)
$ 702,407.00 213-9016-02 Affordable Housing RFP (HOME)
$ 692,550.00 213-9017-02 Affordable Housing RFP (HOME)
$4,400,000.00
RECOMMENDATION / ACTION REQUESTED:
City Council approval is requested for the issuance of time-limited conditional commitment letters to Bells Summit, LP, for the Bells Summit project and Affordable Housing Management, Inc. for the Muirs Landing project, which commitment is also contingent upon the successful rezoning of the property located at 303 Muirs Chapel Road and 4803 & 4809 Kenview Street that is before City Council on appeal;
City Council approval is requested to authorize financing commitments including a third position City permanent lien for Elmsley Trail, LLC for the Elmsley Trail project and a third position City construction lien with second position permanent lien for Printworks Ventures, LLC for the Printworks Lofts project and City Council approval is requested to authorize the City Manager to execute loan closing documents for these multi-family affordable housing development projects.