Town of Chapel Hill header
File #: [23-0315]    Version: 1 Name:
Type: Consent Status: Held
File created: 3/31/2023 In control: Town Council
On agenda: 4/19/2023 Final action: 4/19/2023
Title: Approve the Recommended Funding Plan for Tanyard Branch Trace (Jay Street) Development.
Attachments: 1. FY 2023 Approved Affordable Housing Funding Plan Table, 2. Recommended Funding Plan Overview - Tanyard Branch Trace, 3. Tanyard Branch Trace Funding Application
Related files: [23-0358]


title
Approve the Recommended Funding Plan for Tanyard Branch Trace (Jay Street) Development.
body

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 conditional rezo...

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