Title
Albemarle Landing Apartments Affordable Housing Support Request
Action
Action:
A. Approve a $1,000,000 HOME Investment Partnerships Program allocation for a bridge loan to Albemarle Landing Limited Partnership, an affiliate of South Creek Development, LLC, for the Albemarle Landing Apartments affordable housing development, and
B. Authorize the City Manager to negotiate, execute, amend, and renew contracts as needed to complete this transaction.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* Albemarle Landing (Development), a four percent low-income housing tax credit (LIHTC) multi-family housing community located in the Central/Albemarle Road Corridor of Opportunity at 5800 Albemarle Road (parcel identification number 133-101-10) in Council District 5, is owned by Albemarle Landing Limited Partnership, an affiliate of South Creek Development, LLC (Owner).
* The Development, which was completed in 2025, has an existing 30-year LIHTC affordability period, and consists of 128 fully leased units serving households earning 70 percent and below the area median income (AMI), including:
* 30 units at or below 50 percent AMI,
* 68 units at or below 60 percent AMI, and
* 30 units at or below 70 percent AMI.
* The owner is requesting a $1,000,000 short-term bridge loan to unlock long-term, low-interest financing through a federal Department of Housing and Urban Development (HUD) insured mortgage structure, thereby helping to stabilize the Development for long-term outcomes.
* The bridge loan will have a repayment term of seven years and accrue interest at no less than three percent.
* In consideration for the city's bridge loan, the Developer will:
* Extend the Development's affordability period for an additional 10 years, for a total 40-year affordability period, and
* As units turn over, set-aside 15 percent of the units (19 units) for vulnerable populations referred by...
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