Title
McCreesh Place Supportive Housing Loan Extension
Action
Action:
A. Approve a request from Supportive Housing Communities, Inc. to extend the maturity date of the city’s deferred affordable housing loan to support McCreesh Place, and
B. Authorize the City Manager to negotiate, execute, amend, and renew any documents necessary to complete the transaction.
Body
Staff Resource(s):
Shawn Heath, Housing & Neighborhood Services
Warren Wooten, Housing & Neighborhood Services
Explanation
§ On May 13, 2002, City Council approved a deferred payment Housing Trust Fund loan in the amount of $1,025,542 (Loan) to St. Peter’s Homes, Inc., now known as Supportive Housing Communities, Inc. (SHC), for the development of McCreesh Place Phase I.
§ SHC has requested that the city extend the terms of the Loan for an additional 20 years.
§ The new Loan terms will extend existing affordability requirements through September 2043, and add source of income protections.
§ McCreesh Place Phase I was completed in 2003 and is a 64-unit permanent supportive housing sober shared living facility located on approximately one acre at 2120 North Davidson Street (parcel identification number 083-04-809) (Property) in Council District 1. In addition to the 64 shared living units, the building also contains 16 bathrooms and eight kitchens, along with a library, community room, outdoor communal area, and community garden.
§ McCreesh Place serves 90 individuals who were formerly homeless, or homeless and have a disabling condition, at both the original 64-unit shared living facility and a Phase II expansion that includes 27 Single Room Occupancy (SRO) units. In 2008, City Council approved $1,100,000 of additional Housing Trust Fund support for the Phase II expansion.
§ SHC provides on-site property management, maintenance, and case management to assist McCreesh Place residents in achieving stable housing, and SHC intends to continue operating McCreesh Place as permanent supportive housing in perpetuity.
§ The original Loan included the following terms and conditions:
- Loan amount: $1,025,542
- Interest rate: zero percent
- Loan and Affordability Term: 20-years
- Area Median Income (AMI): special needs housing serving individuals earning 50 percent and below the AMI
- Collateral: city is in a first lien position on the Property
- Loan maturity date: January 30, 2023
§ If City Council approves this action, the Loan maturity date and affordability requirements will be extended for 20-years (September 2043).
Background
§ In August 2018, Council adopted the Housing Charlotte Framework which recommends supporting family self-sufficiency including through helping individuals get access to supportive services.
§ In 2022, the city partnered with Mecklenburg County and other community partners to develop the A Home For All Strategy to End and Prevent Homelessness, which advocates for more permanent supportive housing options, substance-use services, and case management.
Attachments
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