Town of Chapel Hill header
File #: [23-0358]    Version: 1 Name:
Type: Discussion Item Status: Passed
File created: 4/19/2023 In control: Town Council
On agenda: 4/26/2023 Final action: 4/26/2023
Title: Consider Approving the Recommended Funding Plan for Tanyard Branch Trace (Jay Street) Development.
Attachments: 1. Draft Staff Presentation, 2. Recommended Funding Plan Overview Tanyard Branch Trace, 3. Tanyard Branch Trace Funding Application, 4. FY 2023 Approved Affordable Housing Funding Plan Table, 5. FY 2023 Funding Application Scores, 6. Staff Presentation, 7. Council Questions with Staff Response, 8. Emails from the Public, 9. A RESOLUTION APPROVING UP TO $1.95 MILLION TO TAFT MILLS GROUP FOR THE TANYARD BRANCH TRACE (FORMERLY JAY STREET) AFFORDABLE HOUSING DEVELOPMENT PROJECT (2023-04-26/R-6)
Related files: [23-0315]


title
Consider Approving the Recommended Funding Plan for Tanyard Branch Trace (Jay Street) Development.
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Staff:
Department:
Sarah Osmer Vi?as, Director
Affordable Housing and Community Connections
Nate Broman-Fulks, Assistant Director

Emily Holt, Affordable Housing Development Officer


Overview: This item provides an overview of the Affordable Housing and Community Connections staff recommendation to allocate up to $1.95 million in funding to the Tanyard Branch Trace affordable housing development.


Recommendation(s):
That the Council adopt the resolution approving Tanyard Branch Trace (Jay Street) Development as the project selected for use of the 9% Low-Income Housing Tax Credit/Town Prioritized Project funding previously approved by Council in November 2022.

Background
The Town's development partners, the Taft-Mills Group (TMG) and the Community Home Trust, submitted an affordable housing funding application to the Town for an up to $1,950,000 loan to provide gap financing to support the potential Low Income Housing Tax Credit (LIHTC) project that will develop 48 affordable units on a Town-owned parcel on Jay Street. All the units will serve households earning 60% or below of the Area Median Income (AMI), including 12 units that will serve households at 30% or below AMI and 8 units that will serve households earning 50% or below AMI.

This request is supported by Town affordable housing policies and consistent feedback and action by the Town Council.

* In June 2018, Council prioritized the Town-owned Jay Street parcel as an affordable housing site and authorized the Town to pursue development there.
* In March 2021, the Town executed a Memorandum of Understanding with TMG to begin negotiating an agreement to develop the Jay Street site.
* In January 2022, the Town executed an Option to Ground Lease Agreement with TMG, conditioned on securing all financing, including LIHTC, and required permits.
* In April 2022, the Council approved a condi...

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