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Approve CASA Funding Request for Merritt Mill East Affordable Housing Project.
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Staff: |
Department: |
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Loryn Clark, Executive Director |
Housing and Community |
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Sarah Osmer Viñas, Assistant Director |
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Nate Broman-Fulks, Affordable Housing Manager |
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Overview: CASA, an established Triangle area nonprofit affordable housing developer, has acreage under contract on S. Merritt Mill Road and intends to develop 24 apartments to provide rental housing to households under 60% of AMI with a priority for households who are homeless and/or who have disabilities. The Town approved $330,810 in funding from the Affordable Housing Development Reserve (AHDR) in 2017 for land acquisition and site improvements of this property. CASA is requesting an additional $221,000 to support this project, as the project scope has doubled from 12 to 24 permanently affordable units and project cost estimates have increased.
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Recommendation(s): |
• That the Council authorize funding CASA’s request of $221,000 from the Affordable Housing Fund Opportunity Fund.
Key Issues:
• In the FY18 budget, the Town Council established a $600,000 Opportunity Fund within the Affordable Housing Fund to support large-scale affordable housing opportunities. The Opportunity Fund would be established as the Town received payments in-lieu of affordable housing from the Courtyards at Homestead development. The current balance of the Opportunity Fund is $562,000. Staff anticipate that the Town will receive additional payment in lieu contributions that will bring the balance of the Opportunity Fund to $600,000 by the end of this fiscal year.
• In 2017, the Council approved a $330,810 allocation from the AHDR to CASA for the Merritt Mill East project. Since that time, CASA revised the project scope to double the number of affordable units from 12 to 24 on the Chapel Hill side of the development and decided to pursue Low Income Housing Tax Credit financing (LIHTC) for the development.
• The expanded scope of the Merritt Mill East project, along with increased construction cost estimates, have led CASA to need additional funding to move forward with their LIHTC submission in May 2018.
• Without the Town’s funding commitment, CASA may not be able to pursue a LIHTC application for the May 2018 application cycle or move forward with the project.
• Approval of this request and completion of this project would help the Town reach its affordable housing development targets, and make progress towards the Council’s goal of developing new affordable rental housing opportunities.
Fiscal Impact/Resources: If approved, the fiscal impact of this funding request would be $221,000 from the Opportunity Fund of the Affordable Housing Fund. If this funding request is approved, the balance of the Opportunity Fund will be $341,000. An additional $38,000 payment in lieu is anticipated to be added to the Opportunity Fund by the end of the fiscal year, which would make the year-end balance of the Opportunity Fund $379,000 if the CASA request is approved.
Council Goals:
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Create a Place for Everyone |
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Develop Good Places, New Spaces |
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Support Community Prosperity |
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Nurture Our Community |
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Facilitate Getting Around |
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Grow Town and Gown Collaboration |
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Attachments: |
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• Resolution |
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• CASA Funding Application |
A RESOLUTION Approving CASA’s Funding Request of $221,000 for the Merritt Mill East Project (2018-05-02/R-5)
WHEREAS, the Town Council established $600,000 in an Opportunity Fund within the Affordable Housing Fund to support large-scale affordable housing projects; and
WHEREAS, the Town has a long-standing commitment to affordable housing development and preservation as articulated in the Affordable Housing Strategy, Affordable Rental Housing Strategy, and Council Goals; and
WHEREAS, the Town has previously committed support in the amount of $330,810 to CASA’s Merritt Mill East affordable housing project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the provision of funding from the Town’s Affordable Housing Fund for CASA’s request of $221,000 for the Merritt Mill East Affordable Housing Project and authorizes the Manager to execute a Performance Agreement with CASA consistent with Council’s action.
This the 2nd day of May, 2018.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By adopting the resolution, the Council approves the funding for CASA’s request of $221,000 from the Affordable Housing Fund Opportunity Fund.