Title
Naturally Occurring Affordable Housing Preservation Support for Nu Wesley Apartments
Action
Action:
A. Approve an allocation of American Rescue Plan Act ERA 2 funds in the amount of $2,600,000 to DreamKey Partners, Inc. for the acquisition of Nu Wesley Apartments, and
B. Authorize the City Manager, or his designee, to negotiate, execute, amend, and renew contracts as needed to complete these transactions.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* In May 2023, the city issued a rolling Request for Proposals (RFP) for the acquisition and rehabilitation of naturally occurring affordable housing (NOAH), which serves to provide opportunities to NOAH developers/owners to be responsive to quickly changing market conditions and allows the city to evaluate proposals on a rolling basis as market opportunities arise.
* DreamKey Partners, Inc., proposes to acquire Nu Wesley Apartments, an existing 58-unit multi-family NOAH development originally constructed in the 1960s and situated on approximately three acres in the Enderly Park community at 3220, 3224, 3300 and 3308 Avalon Avenue (parcel identification numbers 065-083-20, 065-083-21, 065-085-01, and 065-085-03). The property is located in Council District 2 and within the Freedom/Wilkinson Corridor of Opportunity.
* The property meets the city's NOAH preservation criteria which include:
* Property's age is greater than 15 years;
* Rents are in the area median income (AMI) range that are at risk due to surrounding neighborhood dynamics;
* Property can be rehabilitated to maintain a good quality of life for residents for the next 20 years or more; and
* Property is located in an area experiencing transformative change and property appreciation.
* DreamKey Partners, Inc., in response to the city's NOAH RFP, is requesting $2.6 million for the acquisition of the property. The city's support will include a 30-year deed ...
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