Title
Brookhill Village Naturally Occurring Affordable Housing Preservation Support Request
Action
Action:
A. Approve the use of $3,500,000 from the Coronavirus State and Local Fiscal Recovery Fund for the preservation of Brookhill Village Apartments multi-family affordable housing development, and
B. Authorize the City Manager to execute, amend, and renew any documents necessary to complete the transaction.
Body
Staff Resource(s):
Shawn Heath, Housing & Neighborhood Services
Explanation
* Brookhill Village, originally developed in 1950 and located at 2506 South Tryon Street in Council District 3, consists of approximately 35 acres under an original 99-year ground lease. The ground lease expires in 2049.
* Most on-site buildings have been demolished, with 100 naturally occurring affordable housing units (Affordable Units) remaining on approximately nine acres.
* Brookhill Investments, LLC, a subsidiary of Griffin Brothers Acquisitions, LLC (Developer) acquired the ground lease in 2022, subject to an early termination option expiring on July 31, 2023.
* The Developer is requesting city support in the amount of $3,500,000 to fund 1) the allocable share of the ground lease acquisition cost associated with the Affordable Units, and 2) renovation costs for the Affordable Units.
* The proposed interior and exterior renovations will include:
* New heating and cooling units
* Roof repairs or replacement
* Floor refinishing or replacement
* Storm doors and windows
* New kitchen appliances and bathroom fixtures
* Interior and/or exterior painting where needed
* Other repairs as needed (e.g., insulation improvements)
* The city's $3,500,000 investment supporting the 100 Affordable Units shall include affordability requirements for the duration of the ground lease through 2049.
* 78 of the Affordable Units are currently occupied (legacy households), primarily by families at 30 percent of the Area Median Income (AMI) or below. Rents shall be preserved at affordable ...
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