Title
Affordable Housing Development Support
Action
Action:
A. Approve an additional $800,000 HOME Investment Partnership Program allocation to Urban Trends Real Estate, Inc. for Lakewood Apartments,
B. Approve an $894,000 Community Development Block Grant allocation to Habitat for Humanity of the Charlotte Region for East Lane Townhomes, and
C. Authorize the City Manager to execute, amend, and renew contracts and other required documents to complete the transactions approved by these actions.
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
Action A - Lakewood Apartments
* On November 22, 2021, City Council authorized the use of $2,250,000 of HOME Investment Partnership Program (HOME) funds for the development of Lakewood Apartments, a 36-unit new construction affordable housing development to be developed, owned and operated by Urban Trends Real Estate (Developer).
* The development is located on approximately 1.7 acres located at 104 Lakewood Avenue (parcel identification numbers: 065-12-819, 065-128-09, 065-128-11) in Council District 2 and will serve households earning 60 percent and below the area median income (AMI).
* The development has experienced a new financing gap as a result of unprecedented changes in market conditions, including construction material pricing and interest rates.
* In response to the September 19, 2022 Notice of Funding Availability for Gap Financing for Previously Supported Affordable Housing Developments, the Developer has requested, and staff supports, $800,000 in additional assistance through the HOME program to help fill the resulting gap.
* The funding gap was communicated to City Council at the October 24, 2022 Business Meeting, as part of the discussion regarding housing projects facing cost pressures. Additionally, at the November 24, 2022 Business Meeting, City Council was informed that the funding gap for Lakewood Apartments wo...
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