2020 Housing Trust Funds Deals Approved & Brookhill not Recommended (by M. Kelly)
2020 HOUSING TRUST FUND SUPPORT REQUESTS and EQUITABLE COMMUNITIES OPINION VIEW POINT
Housing & Neighborhood Services presented to Charlotte City Council their recommendation on how to spend Housing Trust Fund dollars on Monday April 13th. Currently we have $25.931 Million remaining from the 2018 Voter Referendum approving $50 million for affordable Housing. Over the past 3 months City Staff & LISC have been reviewing developers RFP responses requesting funding for Affordable Housing.
HOUSING & NEIGHBORHOOD SERVICES presented 10 Affordable Housing deals to Charlotte City Council during the City Council Meeting on Monday April 13th.
(2) 9% LIHTC (Low Income Housing Tax Credit) Deals
Connelly Creek Apartments 78 units
Mineral Springs Commons 73 units
(5) 4% LIHTC Deals
Dillehay Courts 143 units
Evoke Living at Arrowood 168 units
Johnston Oehler Seniors 140 units
The Park Seniors 80 units
Vibrant Eastway Park 132 units
(1) Non-LIHTC deal
Charlotte Center for Urban Ministry Statesville Avenue Shelter 194 units
(1) NOAH (Naturally Occurring Affordable Housing.
Windsor Park Apartments 341 units
City Council voted on the Staff recommendations on Monday April 27th. All 9 deals were approved by City Council that will build 1,349 apartments using $18.987 million with LISC supplements totaling $4.9 million and fulfilling low cost debt requests.
Below is a breakdown of the recommended 1,349 units by AMI.
The City Investment per 30% unit is $40,861.00. The AMI for Charlotte is $79,000. The developments are spread across the City in Districts 1,2,3 and 4. Three additional 9% deals were submitted to the State but did not request City Trust Fund Housing Funding and are not included in the recommendation.
There is $7.01 Million remaining in the Housing Trust Fund for additional projects.
City Staff and LISC did not recommend the Brookhill Development Non LITHC request. Brookhill is asking for $4.5 million from the City's Housing Trust Fund, $5,3 million in City Infrastructure and $10.0 million from LISC (CHOIF).
Brookhill Developer Lookout Ventures is proposing to build a total of 164 units, below is a breakdown:
NOTE: The City investment for a 30% Unit would be $151,308 per unit with out LITHC.
NON Recommended Proposal - Brookhill Development
City Staff & LISC have multiple concerns with the deal.The Land is owned by the Spanglers' and leased to Lookout Ventures with 27 years remaining on the lease. It will take 2-3 years to build the units with 24-25 years remaining on the lease for apartment rental. There are many questions and concerns raised by City Council, Staff and LISC:
City would like the ask for Public (City & CHOIF/LISC) funding reduced
A Market analysis/appraisal completed for the 1st mortgage
The project needs to be re-underwritten
Additional Developer equity increased
Confirmation of the $43 million from Fannie Mae to help fund the project
City Council would like to review details for the Commercial Development proposed for Brookhill and how that may offset the funding requests.
City Council and the Mayor have asked Staff and LISC to continue to work with Outlook Ventures to address the open questions to help reach a solution that is beneficial to the Community to provide affordable housing in a high opportunity area near uptown. Since Lookout Ventures is not seeking LIHTC City Council will not have to approve or deny the deal on April 27th. City Staff, LISC and the Developer will have more time to work thru a more viable project financial solution.
Please open the link to review the full proposal: Housing CHOIF Presentation April 13, 2020
Please open the link to view the Virtual meeting discussion:Housing Trust Fund Charlotte Housing Opportuntiy Fund
Please open the link to read about Brookhill Village - An Alternative Perspective