Title
INLIVIAN Housing Revenue Bond Issuance Approval for Grounds for Change
Action
Action:
Adopt a resolution granting INLIVIAN’s request to issue new multi-family housing revenue bonds, in an amount not to exceed $18,000,000, to finance the development of an affordable housing development known as Grounds for Change.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and 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 Grounds for Change, an 80-unit new construction multi-family affordable housing development by DreamKey Partners (Developer) in partnership with the YWCA.
§ The development will be located on approximately four acres of the YWCA property at 3416 Park Road (a portion of parcel identification number 149-133-65) in Council District 1 and will serve households earning 60 percent and below the Area Median Income.
§ The INLIVIAN bonds, not to exceed $18,000,000, will be used to finance the construction of the development.
§ This action further supports City Council’s November 28, 2022, and April 22, 2024, approval of $6.5 million combined American Rescue Plan Act ($4.5 million) and Housing Trust Fund ($2 million) support.
Background
§ In conjunction with the Developer’s request for city financial support, the Developer applied for four percent low-income housing tax credits and a housing bond allocation capacity from the North Carolina Housing Finance Agency (NCHFA) to finance the development.
§ The NCHFA approved the Developer’s application pursuant to its Qualified Allocation Plan and awarded the requested four percent tax credits and a bond allocation capacity totaling $18,000,000 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 does not have an interest. The INLIVIAN board of directors approved the issuance of the new multi-family housing revenue bonds on May 17, 2022.
Attachments
Attachment(s)
Map
Resolution