Title
Affordable Housing Development Support Request
Action
Action:
A. Reallocate up to $700,000 of Housing Trust Fund support from the Evoke Living at Westerly Hills multi-family affordable housing development, to further support the development of the Evoke Living at Morris Field multi-family affordable housing development, and
B. Adopt a budget ordinance appropriating $500,000 from Crosland Southeast, or an affiliate, to the General Capital Projects Fund.
Body
Staff Resource(s):
Shawn Heath, City Manager's Office
Rebecca Hefner, Housing and Neighborhood Services
Explanation
* On April 26, 2021, City Council approved a $3,000,000 Housing Trust Fund (HTF) allocation for the development of Evoke Living at Morris Field, a 132-unit new construction affordable housing development to be developed, owned, and operated by Morris Field Housing, LLC, an affiliate of Crosland Southeast and Opportunities South, LLC (Developer).
* The development is located at 3628 Morris Field Drive in Council District 3 and will serve households earning up to 80 percent of the Area Median Income (AMI) with income averaging of 60 percent of AMI for the entire development. Of the 132 new units, 26 will serve households that earn 30 percent of AMI or less.
* The development has experienced a new financing gap as a result of pandemic-related cost escalation. Staff has worked with the Developer to identify possible sources to fill this gap. Additional sources in the amount of approximately $4.7 million have been identified, including:
- additional support through the Low-Income Housing Tax Credit program (approximately $2.4 million),
- extending the amortization period of other project debt financing (approximately $1.8 million), and
- deferred developer fees ($500,000).
* Even after identifying these additional funding sources, a financing gap still exists for which the Developer has requested the City's assistance through additional HTF support for the Morris Field development. ...
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