Title
Additional Federal HOME Investment Partnerships Program Funding for 19 North (Ordinance S-43760)
Description
This report requests authorization for the City Manager, or his designee, to increase Helping Hands Housing Services' (Helping Hands) federal HOME funding award by $126,200 and take all actions and execute all documents to complete the loan. The increased loan total of up to $1.5 million will assist with the acquisition and new construction of 19 North, 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 March 1, 2017, City Council approved an award of $1,373,800 in HOME funds to Helping Hands, a Community Development Housing Organization (CDHO), for the development of 19 North, a 54 unit multi-family affordable housing community proposed to be built utilizing Low Income Housing Tax Credits (LIHTC). After receiving final construction pricing, the developer identified a financing gap. Additional HOME funds in the amount of $126,200 are being requested to cover the gap, for a loan total of $1.5 million.
Helping Hands will utilize these funds for the construction of 19 North, which will include two and three bedroom units, and will serve households with incomes at or below 60 percent of the Area Median Income. Seven of the 54 units will be set aside as permanent supportive housing for victims of domestic violence and persons with disabilities.
The estimated total development cost of the project is $16,587,741. 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 March 1, 2017 by City Council through Ordinance S-43279. 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
Confidential location, District 5.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.