Title
Conveyance of City-Owned Properties for the Development of Affordable Housing
Action
Action:
Authorize the City Manager and staff to work with recommended affordable housing developers to finalize preliminary affordable housing proposals and negotiate conveyance of four vacant City-owned properties for the development of affordable housing, as follows:
- 11217 Providence Road West (parcel identification number 223-132-40) conveyance to Crosland Southeast,
- 1654 Newland Road (parcel identification number 077-061-13) conveyance to Habitat for Humanity of the Charlotte Region,
- 7605 University City Boulevard (parcel identification number 049-241-15) conveyance to DreamKey Partners and Conifer Realty, and
- 7204/7202 South Boulevard (parcel identification number 205-173-03) conveyance to The NRP Group.
Body
Staff Resource(s):
Shawn Heath, City Manager’s Office
Rebecca Hefner, Housing and Neighborhood Services
Phil Reiger, General Services
Explanation
§ The City currently owns four properties identified as suitable for affordable housing developments and for which development proposals have been received and evaluated by staff in response to a November 9, 2021 request for proposal (RFP). The properties and a summary of the recommended developers is as follows.
- Providence Road West
§ Parcel Identification Number (PID): 223-132-40
§ Council District: 7
§ Appraisal: An appraisal of the property completed in January 2021 established a fair market value of $1,000,000.
§ Recommended Developer: Crosland Southeast
§ Development Type: Multi-family rental development
§ Conveyance Method: Long-term ground lease from the City
- Newland Road
§ PID: 077-061-13
§ Council District: 2
§ Appraisal: An appraisal of the property completed in December 2020 established a fair market value of $90,000.
§ Recommended Developer: Habitat for Humanity of the Charlotte Region
§ Development Type: Single-family, for-sale townhome development
§ Conveyance Method: Fee simple warranty deed
- University City Boulevard
§ PID: 049-241-15
§ Council District: 4
§ Appraisal: An appraisal of the property completed in November 2020 established a fair market value of $1,360,000.
§ Recommended Developer: DreamKey Partners and Conifer Realty
§ Development Type: Multi-family rental development
§ Conveyance Method: Long-term ground lease from the City
- South Boulevard
§ Parcel Number: 205-173-03
§ Council District: 3
§ Appraisal: An appraisal of the property completed in February 2021 established a fair market value of $1,075,000.
§ Recommended Developer: The NRP Group
§ Development Type: Multi-family rental development
§ Conveyance Method: Long-term ground lease from the City
§ The recommended developers and proposed preliminary developments are best qualified to maximize affordable housing opportunities and to meet the City’s affordable housing goals.
§ The conveyance of the properties to the recommended developers will be conditioned upon the developers finalizing their project plans to the satisfaction of the City including the identification and commitment of all necessary funding needed to finance the projects. Once complete, the final Resolutions to convey the properties will be brought before Council for consideration and adoption.
Background
§ On August 27, 2018, City Council adopted the Housing Charlotte Framework, which recommends leveraging City-owned land and expanding the supply of high-quality affordable housing by building new affordable housing and preserving existing affordable housing.
§ The use of City-owned land allows for additional leveraging of local housing resources such as the Housing Trust Fund. This strategy is a best practice used across the country to assist in expanding the supply of affordable housing and is consistent with the Council approved Housing Framework, City-Owned Real Estate and Facilities Policy, and the Guidelines for Evaluation and Disposition of City-Owned Land for Affordable Housing.
§ On June 14, 2021, Council received a briefing on six vacant properties identified as appropriate for affordable housing development. The six properties included North Wendover Road, Providence Road West, Newland Road, University City Boulevard, South Boulevard, and Archdale Drive.
§ In response to the subsequent November 9, 2021 RFP, 14 development proposals were received for five of the vacant properties referenced above. Council received a briefing on the recommended preliminary proposals on February 7, 2022.
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