Title
Resolution Approving HOME-Funded Affordable Housing Development Project Applications
Body
Department: Neighborhood Development
Council District: 1,2 and 5
Public Hearing: Yes
Advertising Date/By: April 25, 1014/ Cynthia Blue
Contact 1 and Phone: Barbara Harris 373-2509
Contact 2 and Phone: Cynthia Blue 433-7376
PURPOSE:
The City Council is asked to hold a public hearing to consider awarding funds for affordable housing development projects from HOME program funds budgeted for housing development. The recommended housing development projects meet the City MAP goal to maintain infrastructure and provide sustainable growth opportunities.
BACKGROUND:
The Planning Board is recommending funding for affordable housing development projects for Council consideration. The recommendations were selected based on a Request for Proposals [RFP] process for HOME program eligible affordable housing development activities. Projects proposed by Community Housing Development Organizations and projects that will have all financing in place by June 30, 2014, were prioritized in the RFP due to HOME Program expenditure requirements. Projects meeting the requirements for funding prioritization include Jonesboro Landing Phase 2, Everitt Square and Hope Court.
$2,565,188 in HOME funds was made available for the Affordable Housing Development Request for Proposals from FY'14 and prior year funds. The RFP was advertised on January 27, 2014. The Planning Board heard developer presentations on March 19, 2014 regarding the project applications. The Planning Board voted on a funding recommendation on April 16, 2014 to award $2,565,188 of HOME program funds to five eligible projects.
The recommended projects for HOME funding are listed below and a summary of applications is attached.
Project Name |
Location |
Developer |
Amount |
Jonesboro Landing, Ph 2 |
2409 Charlotte Street |
East Market St Development Corporation |
$450,900 |
Everitt Square |
2130 Everitt Street |
Partnership Homes, Inc. |
$507,504 |
Hope Court |
2100 Boulevard Street |
Affordable Housing Management, Inc. |
$1,088,602 |
Sumner Ridge |
4452 Old Randleman Road |
Affordable Housing Management, Inc. and The Affordable Housing Group |
$259,091 |
Glen Meadows |
512 Glendale Road |
Beacon Management Corporation and Greensboro Housing Authority |
$259,091 |
|
|
Total |
$2,565.188 |
Partnership Homes, Inc., has additionally requested that as part of their proposed no cost acquisition of the Everitt Square property, the City forgive the remaining balance of $65,587.19 on a $90,000.00 loan made to Affordable Housing Management, Inc. (formerly known as Greater Greensboro Housing Foundation, Inc.) when the property was originally acquired in 1994. The source of funds was Nussbaum Housing Partnership. Both the City and North Carolina Housing Finance Agency are planning to use HOME funds for this rehabilitation project. We cannot give the purchaser HOME funds to pay back a prior City debt from the seller. The original Everitt Square project provided 20 years of quality affordable rental housing in return for the City's original investment.
Guilford County HOME Project Request:
Guilford County is a member of our HOME Program Consortium. They would like to continue their commitment of HOME Program funds to support the Village View Low Income Housing Tax Credit project application location in Jamestown. The Village View project did not receive a tax credit award in 2013 and is re-applying in 2014. All HOME funded projects are required to provide 25% match from a local source. Guilford County and the Town of Jamestown do not have an eligible source of match for the Village View project. The HOME Consortium has built up excess match credits of $4.9 million. Greensboro and Guilford County signed an administrative agreement in May 2013 for the City to administer the project and provide match credits from the HOME Consortium match balance. Guilford County has requested that the City of Greensboro continue its prior commitment to administer the project and to provide up to $74,250 in credits from the available HOME Consortium match balance.
BUDGET IMPACT:
$ 539,115 - Allocated to Affordable Housing Development RFP through the 2013-14 Annual Plan
$2,026,073 - Re-allocations from prior year HOME funds to this year's Affordable Housing Development RFP
$2,565,188
$65,587.19 - Lien forgiveness to Affordable Housing Management, Inc. (formerly known as Greater Greensboro Housing Foundation, Inc.) for Everitt Square property
Use of HOME Consortium match credits for Village View project does not affect the City budget.
RECOMMENDATION / ACTION REQUESTED:
City Council is requested to review and consider approving the affordable housing development activities as recommended by the Planning Board and authorize the City Manager to execute loan documents for project implementation.
City Council is requested to consider approving forgiveness of the $65,587.19 balance of the existing loan to Affordable Housing Management, Inc., (fka Greater Greensboro Housing Foundation, Inc.) in order to allow the Everitt Square transfer of ownership and rehabilitation to proceed.
City Council is requested to continue the agreement with Guilford County to administer the Village View project and provide up to $74,250 from the available HOME Program match balance.