Title
Housing Trust Fund Support Request
Action
Action:
Approve a $2,425,000 Housing Trust Fund allocation to Ascent Real Estate Capital for the acquisition of the Lake Mist Apartments.
Body
Staff Resource(s):
Pamela Wideman, Housing and Neighborhood Services
Miles Vaughn, Housing and Neighborhood Services
Explanation
* Ascent Real Estate Capital is requesting a Housing Trust Fund (HTF) allocation of $2,425,000 for the acquisition of Lake Mist Apartments, located at 1100 Lake Mist Drive in Council District 3.
* Lake Mist Apartments meets the city's Naturally Occuring Affordable Housing (NOAH) criteria which include:
* The 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;
* The property can be rehabilitated to maintain a good quality of life for residents for the next 20 years or more;
* The property is located in an area with close proximity to quality jobs, schools, and transportation infrastructure; and
* The property is located in an area experiencing transformative change and property appreciation.
* The total development budget is $20,084,000, which amounts to a 1:7 leverage ratio of HTF financing. The investment also includes a 20-year deed restriction for the preservation of 144 units at the following AMI levels:
* 43 units at 30 percent AMI,
* 7 units at 41 percent to 50 percent AMI,
* 65 units at 51 percent to 60 percent AMI, and
* 29 units at 61 percent to 80 percent AMI.
* A third-party inspection has been performed on the property to determine the existing property conditions.
* The proposed rehabilitation consists of the followng:
* Railing replacements;
* Exterior lighting and safety improvements;
* Site work and drainage improvements;
* Heating, ventilation, and air conditioning unit and water heater replacements;
* Appliance and lighting replacements; and
* Flooring replacements.
Background
* In August 2018, City Council adopted the H...
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