Title
Additional Federal HOME Investment Partnerships Program Funding for El Caro Senior (Ordinance S-43758)
Description
This report requests authorization for the City Manager, or his designee, to increase Gardner Capital Development Arizona, LLC's (Gardner) federal HOME Investment Partnerships (HOME) funding award by $350,000 and take all actions and execute all documents to complete the loan. The increased loan total of up to $1 million will assist with the acquisition and new construction of El Caro Senior, an affordable housing development project. Authorization is also requested for the City Controller to disburse funds for the life of the contract.
Report
Summary
On Feb. 17, 2016, City Council approved an award of $650,000 in HOME funds to Gardner for the development of El Caro Senior, a 102 unit Low Income Housing Tax Credit (LIHTC) multi-family housing community for low-income seniors. After receiving final construction pricing, the developer identified a financing gap. Additional HOME funds in the amount of $350,000 are being requested to cover the gap, for a total of $1 million.
Gardner will utilize these funds for the construction of El Caro Senior, which will include one and two bedroom units, and will serve households with incomes at or below 60 percent of the Area Median Income. Seven units will be set aside to meet the affordability and rental restrictions of the HOME Program. Twenty-five of the units will be set aside as permanent supportive housing for persons with developmental and physical disabilities.
The estimated total development cost of the project is $18,050,557. Other anticipated financing includes a nine percent LIHTC equity investment, private bank loans, and a deferred developer fee.
Financial Impact
Funding is available in the Housing Department Capital Improvement Program using HOME Funds.
Concurrence/Previous Council Action
Original funding was approved on Feb. 17, 2016 by City Council through Ordinance S-42310. This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee meeting on June 20, 2017 and approval was recommended by a vote of 3-0.
Location
8025 N. 21st Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.