Title
Naturally Occurring Affordable Housing Preservation and Rental Subsidy Support Request
Action
Action:
A. Approve an $8,000,000 allocation of funding from the Coronavirus State and Local Fiscal Recovery Fund provided by the American Rescue Plan Act of 2021 to Central NOAH, LLC, an affiliate of Ascent Real Estate Capital, LLC, for the acquisition and rehabilitation of Peppertree Apartments,
B. Approve a Naturally Occurring Affordable Housing Rental Subsidy Program reimbursement request to allocate funds over a 20-year period for 44 new long-term rental subsidies at Peppertree Apartments for households earning 30 percent and below the area median income, and
C. Authorize the City Manager to negotiate, execute, amend, and renew contracts as needed to complete these transactions, with
* Central NOAH, LLC (Peppertree Apartments), and
* Housing Collaborative (formerly Socialserve).
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* Central NOAH, LLC, an affiliate of Ascent Real Estate Capital (Owner), proposes to acquire and renovate Peppertree Apartments, including creating new long-term rental subsidies for 30 percent Area Median Income (AMI) households (currently $28,250/family of four).
* Peppertree Apartments is a 292-unit existing multi-family naturally occurring affordable housing (NOAH) development on approximately 14.9 acres located at 4335 Central Avenue in Council District 5 (parcel identification numbers 101-173-41 and 101-173-44) (Property) and meets the city's 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 inf...
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