Title
Bond Issuance Approval for South Village Apartments
Action
Action:
Adopt a resolution granting INLIVIAN's request to issue new multi-family housing revenue bonds in an amount not to exceed $17,000,000, to finance the development of an affordable housing development known as South Village Apartments.
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* This action will not obligate the city financially or impact the Capital Investment Plan and is requested to satisfy Section 147(f) of the Internal Revenue Code of 1986, which requires the issuance of housing bonds to be approved by the local governmental unit with jurisdiction over the area where the development is located.
* INLIVIAN is requesting that City Council adopt a resolution authorizing the issuance of new multi-family housing revenue bonds for South Village Apartments, an 82-unit new construction affordable housing development to be developed, owned, and operated by Scaleybark Apartments, LLC, a North Carolina limited liability company, or an affiliated or related entity.
* The development will be located on approximately 2.42 acres at 3655 DeWitt Lane (parcel identification numbers 149-01-247 and 149-01-251) in Council District 3, and will serve households earning up to 80 percent of the Area Median Income (AMI) with income averaging at 60 percent of AMI for the entire development.
* This action further supports City Council's approval of $7,705,245 Housing Trust Fund and American Rescue Plan support.
* The new INLIVIAN bonds, not to exceed $17,000,000, will be used to further finance construction of the development.
Background
* On July 22, 2019, City Council approved a $3,000,000 Housing Trust Fund allocation to support the South Village Apartments development on city owned property. Due to unprecedented changes in market conditions resulting in cost escalations of housing projects, the developer experienced...
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