Title
Resolution Approving the Berryman Square Affordable Housing Development Activity as Recommended by the Planning Board and Authorize the City Manager to Execute Loan Documents for Project Implementation
Body
Department: Neighborhood Development
Council District: 3
Public Hearing: N/A
Advertising Date/By:
Contact 1 and Phone: Barbara Harris 373-2509
Contact 2 and Phone: Cynthia Blue 433-7376
PURPOSE:
The City Council is asked to consider reinvesting prior City loan funds in an affordable housing rehabilitation project. The recommended housing development project meets the City MAP goal to maintain infrastructure and provide sustainable growth opportunities.
BACKGROUND:
City Council previously considered and approved this application on May 7, 2013. The project did not receive a 2013 Low Income Housing Tax Credit award and is re-applying for 2014 consideration. The difference in the new application amount is due to an additional year of accumulated interest on the existing City loan.
In 1993, the City invested $765,000 of housing bond funds in a Low Income Housing Tax Credit rehabilitation of the Berryman Square Apartments project, located at 200 Berryman St. The loan terms included an annual 0.5% interest payment and 2% interest accumulation bringing the current loan and principal balance to $1,096,053.48 (as of 4/21/14). The project owner is seeking to rehabilitate the units again through the LIHTC fund source and has requested that the City reinvest its principal and accumulated interest in the project.
The Planning Board heard developer presentations on March 19, 2014 regarding housing project applications. The Planning Board voted on a funding recommendation on April 16, 2014 to re-invest $1,142,625 of prior City bond funds and accumulated interest to Affordable Housing Management, Inc. for Berryman Square Apartments. The amount is a projection based on the anticipated time frame for closing the loan.
The reco...
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