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Approve CASA Funding Request for Merritt Mill East Affordable Housing Project.
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Staff:
Department:
Loryn Clark, Executive Director
Housing and Community
Sarah Osmer Vi?as, Assistant Director
Nate Broman-Fulks, Affordable Housing Manager
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.
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 ...
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