Title
Resolution Authorizing a Commitment of Funds to Richardson Village, LP, and Trinity Consulting and Development, LLC/Trinity Funding and Consulting, LLC for East Greensboro Housing Development Projects
Body
Department: Neighborhood Development
Council District: 2
Public Hearing:
Advertising Date/By:
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 East Greensboro Housing Development bond funds for the Richardson Village and Solomon’s Plaza projects as recommended by the Planning Board.
BACKGROUND:
A request for proposals for East Greensboro multi-family housing development projects was issued in February, 2018. A total amount of $1,000,000 in 2016 Housing Bond funds was projected to be available for commitment.
At the June 20, 2018 meeting, the Planning Board recommended $855,000 in funding as outlined on the attached summary for East Greensboro Housing Development to fund the following projects:
Richardson Village - 600 DeWitt Street - $155,000. Rehabilitation of a 24 unit building serving families at less than 60% of area median income. Total development cost: $231,308. Loan terms: 10 year term, 0.25% interest, 30 year amortization with a balloon in year 10. The City loan will be in 3rd lien position behind a bank loan and an existing City loan.
Solomon’s Plaza - 1632 Ball Street - $700,000. New construction of a 24 unit building serving families with half the units affordable to low income households under 80% of area median income and half the units affordable to moderate income households under 140% of area median income. Total development cost: $2,553,222. Loan terms: 30 year term, 0.50% interest, principal and interest deferred in years 1-5, interest only payments in years 6-10, amortizing payments in years 11-30.
Staff is recommending approval of financing commitments to Richardson Village, LP and Trinity Consulting and Development, LLC/Trinity Funding and Consulting, LLC an authorization of the City Manager to execute loan closing documents.
BUDGET IMPACT:
2016 Housing Bond funds are already budgeted for East Greensboro Housing Development
$855,000 483-2201-01 East GSO Housing Development-Loan
RECOMMENDATION / ACTION REQUESTED:
City Council approval is requested for the issuance of financing commitments to Richardson Village, LP, including a 3rd position City lien, and to Trinity Consulting and Development, LLC/Trinity Funding and Consulting, LLC and authorization of the City Manager to execute loan closing documents.