TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA - Economic & Community Development Director
Jeffrey M. Morin - Housing Program Manager
DATE: February 12, 2024
RE:
Title
Approval of Updated Liberty Springs Apartments Affordable Housing Rehabilitation Loan Commitment Letter
end
COUNCIL DISTRICT(S):
Council District(s)
District 2 - Council Member Malik Davis
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Relationship To Strategic Plan:
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
* 4.5: To ensure a place for people to live in great neighborhoods
??????* 4.6: To reduce poverty and homelessness
Executive Summary:
Liberty Springs Apartments is an 8 unit property located at 238 S. Cool Spring Street that has been vacant for several years. The proposed repayment terms are 1% interest rate, over a 15-year term. The loan will be amortized over 30-years, resulting in a final balloon payment. City Council is asked to authorize a loan commitment letter and subsequent loan documents, with adjusted terms, in the amount of $380,500 from Home Investment Partnership Funds (HOME) to rehabilitate this property and activate 8 units of affordable efficiency and one-bedroom apartments. This commitment will be good until June 30, 2024, with a six-month extension allowed at the Economic and Community Development Director's discretion.
Background:
Incrementum Properties LLC. is a private developer producing 8 rental units by renovating an existing property. The property has previously been declared a nuisance property by the City and substantial rehabilitation is needed to bring up to current requirements. Funding in the amount of $380,500 would come from the City's annual allocation of HOME funds, the development requires a 1% interest loan with a 15 year term in an amount that is fully amortized over 30 years. The borrower will be expected to pay a balloon payment at the 15th year or extend ...
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