Title
Housing Trust Fund Support Request
Action
Action:
Approve a $1,050,000 Housing Trust Fund allocation to Wendover NOAH, LLC in partnership with Ascent Housing, LLC for the acquisition and rehabilitation of The Pines on Wendover Apartments.
Body
Staff Resource(s):
Pamela Wideman, Housing and Neighborhood Services
Miles Vaughn, Housing and Neighborhood Services
Explanation
§ Wendover NOAH, LLC, an affiliate of Ascent Housing, LLC, is requesting a Housing Trust Fund (HTF) allocation of $1,050,000 for the acquisition and rehabiliation of The Pines on Wendover Apartments, a 44-unit multi-family complex located at 630 North Wendover Road in Council District 1.
§ The Pines on Wendover 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 help 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 $8,004,000, which amounts to a 1:7 leverage ratio of HTF financing. The investment also includes a 20-year deed restriction for the preservation of 44 units at the following AMI levels:
- 13 units at 30 percent AMI,
- 22 units at 51 percent to 60 percent AMI, and
- 9 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 will consist of the followng:
- Heating, ventilation, and air conditioning unit replacements;
- Water heater and dryer vent replacements;
- Flooring and cabinet replacements;
- Balcony, sidewalk, and drainage repairs;
- Security and safety improvements including lighting and fence repair;
- Landscaping, tree removal, and pressure washing;
- Dumpster enclosure replacement; and
- Signage.
Background
§ In August 2018, City Council adopted the Housing Charlotte Framework which recommends:
- Prioritizing large-scale NOAH properties, and
- Establishing a preservation fund to subsidize acquisition of NOAH properties, which is noted as a national best practice for preserving existing affordable and workforce housing.
§ On March 25, 2019, City Council adopted Guidelines for Preserving Naturally Occurring Affordable Housing (guidelines). The goals of the guidelines include:
- Limiting displacement of current residents by preserving existing affordability;
- Preserving quality affordable and workforce housing by increasing the number of available deed-restricted units and the physical structure of the units;
- Providing low-interest loans so that high-performing for-profit and non-profit owner operators can purchase and/or upfit NOAH properties and preserve them as affordable;
- Allowing existing owners to participate in return for deed restrictions and demonstrated management and maintenance history; and
- Aligning guidelines with other City policies.
Charlotte Business INClusion
§ All HTF funded projects and their developers are subject to MWSBE goals determined based on the amount of the HTF allocations received.
Fiscal Note
Funding: Housing Trust Fund