Title
Bond Issuance Approval for Poplar Grove Apartments
Action
Action:
Adopt a resolution granting INLIVIAN’s request to issue new multi-family housing revenue bonds, in an amount not to exceed $31,000,000, to finance the rehabilitation of an affordable housing development known as Poplar Grove Apartments.
Body
Staff Resource(s):
Rebecca Hefner, Housing & Neighborhood Services
Warren Wooten, Housing & Neighborhood Services
Explanation
§ This action does not obligate the city financially or impact the Capital Investment Plan and is requested to satisfy Section 147(f) of the Internal Revenue Service Code of 1986, which requires the issuance of housing bonds to be approved by the local governmental unit with jurisdiction over the area where the development is located.
§ INLIVIAN is requesting that City Council adopt a resolution authorizing the issuance of multi-family housing revenue bonds for Poplar Grove Apartments, an existing 130-unit deed-restricted affordable senior housing development to be rehabilitated, owned, and operated by Poplar Grove Preservation, L.P., a New York limited partnership and affiliate of Related Affordable (Developer), or an affiliated or related entity.
§ The development is located on approximately 2.4 acres at 421 North Poplar Street (parcel identification number 078-021-01) in Council District 2 and will serve senior households earning 60 percent and below the Area Median Income.
§ The Developer proposes to rehab the development to include replacing the roof, windows and siding, upgrading security lighting, installing new flooring and hot water heaters, bathroom upgrades, and parking lot and walkway repairs.
§ While there is no Housing Trust Fund or other city support affiliated with this development, staff has confirmed with INLIVIAN’s bond counsel that there will be no permanent displacement of current residents. The majority of the work is proposed to occur with residents in their units and if there are instances where residents need to be temporarily relocated away from their units, INLIVIAN’s bond counsel has confirmed that the Developer will pay for hotel accommodations.
§ The INLIVIAN bonds, not to exceed $31,000,000, will be used to finance the acquisition and rehabilitation of the development.
Background
§ The developer applied for four percent low-income housing tax credits and housing bond allocation capacity from the North Carolina Housing Finance Agency to finance the acquisition and rehabilitation of the development.
§ The North Carolina Housing Finance Agency approved the application pursuant to its Qualified Allocation Plan and awarded the requested four percent tax credits and bond allocation capacity totaling $31,000,000 for the development. Tax credit and bond allocations are subject to federal income limits and set-aside rules and include deed restrictions.
§ INLIVIAN, as a public housing authority, is duly authorized to issue housing bonds to finance developments that serve persons of low and moderate income, including developments in which it has an indirect interest. The INLIVIAN board of directors approved issuance of the multi-family housing revenue bonds for the acquisition and rehabilitation project on August 15, 2023.
Attachments
Attachment(s)
Map
Resolution