Title
Resolution Approving Loans for Multi-Family Affordable Housing Development Projects for Ryan Ridge Apartments, LLC and Partnership Homes, Inc.
Body
Department: Neighborhood Development
Council District: 1
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Barbara Harris, 336-373-2509
Contact 2 and Phone: Cynthia Blue, 336-433-7376
PURPOSE:
City Council consideration is requested for a commitment of funds for two multi-family affordable housing development projects previously recommended by the Planning Board and approved by City Council for conditional commitments in May 2017.
BACKGROUND:
In May 2017, City Council authorized conditional commitments to multi-family affordable housing projects which were seeking additional funds for development through North Carolina Housing Finance Agency [NCHFA] programs. Two projects have been selected for NCHFA awards and are ready to move forward.
Ryan Ridge Apartments - 4410-4412 Rehobeth Church Rd - Ryan Ridge Apartments, LLC
New construction of a 60 unit multi-family development for families. One, two and three bedroom units will be constructed. All 60 units are affordable to households under 60% of Area Median Income. NCHFA has awarded an increase to the project's Low Income Housing Tax Credit [LIHTC] funds to produce over $5 million for development equity.
The project cannot be structured to meet HOME Program requirements for funding. On April 19, 2017, the Planning Board had originally recommended $573,449. Uncertainty in the current LIHTC markets reduced the value of the tax credits, requiring an increase in bank loan, NCHFA and City funding.
Staff recommendation: Increase award to $880,000 in City Housing Bond funds at 0.5% interest for a 20 year term with annual fixed payments and a balloon at the end of the term. The City loan will be in second position behind the construction/permanent lender.
Partnership Place Apartments - 603 W. Terrell St. - Partnership Homes, Inc.
Rehabilitatio...
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