Title
Affordable Housing Development Support Reallocation Request
Action
Action:
Reallocate up to $540,000 of Housing Trust Fund support from Laurel Street Residential’s Ballantyne Seniors multi-family affordable housing development, to further support the Springhouse Square at Aldersgate multi-family, mixed-income housing development.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
§ On September 27, 2021, City Council approved a $2,992,000 Housing Trust Fund (HTF) allocation for the development of 136 affordable units at the Springhouse Square at Aldersgate mixed-income multi-family housing development to be developed, owned, and operated by Laurel Street Residential (Developer), or its affiliates.
§ The development is located in east Charlotte off of Shamrock Drive, at 3630 Castlerock Drive, in Council District 1, and the affordable units will serve households earning 30 to 80 percent of the area median income (AMI).
§ Groundbreaking for the development occurred in summer 2024, and construction is proposed to be completed by the end of 2025.
§ The development has experienced a new financing gap due to cost volatilities in the current market, and the Developer has requested the city’s assistance through a transfer of HTF support from the Developer’s Ballantyne Seniors development to the Springhouse Square development.
§ After working with the Developer to identify possible sources to fill this gap, staff supports a reallocation of cost savings identified by the Developer on the Ballantyne Seniors development of up to $540,000 HTF funds that have not yet been drawn down by the Developer, to the Springhouse Square development to support the affordable units.
Background
Ballantyne Seniors:
§ On September 27, 2021, and November 28, 2022, City Council approved a total of $5,400,000 in HTF allocations to support the development of Ballantyne Seniors, a four percent Low Income Housing Tax Credit multi-family affordable housing development consisting of 82-units serving senior households aged 55 and older earning 80 percent and below the AMI and located at 15221 Ballancroft Parkway in Council District 7. The development was completed in September 2024.
Springhouse Square:
§ Springhouse Square is a mixed-income multi-family housing development located at the Aldersgate Retirement Community in east Charlotte through a long-term ground lease, and separately owned and managed by the Developer and its affiliates. In conjunction with the city’s $2,992,000 HTF allocation, the Developer received four percent low-income housing tax credits and a housing bond allocation capacity from the North Carolina Housing Finance Agency (NCHFA), and support from the Charlotte Housing Opportunity Investment Fund.
§ On August 28, 2023, City Council adopted a resolution granting INLIVIAN’s request to issue multi-family housing revenue bonds in an amount not to exceed $16,500,000 for the Aldersgate development, as provided for in the NCHFA’s approved bond allocation capacity.
Fiscal Note
Funding: Housing Trust Fund reallocation