TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Jeffrey Morin, Housing Program Manager
DATE: April 22, 2024
RE:
Title
Aubrey Hills Apartments Affordable Housing Loan Commitment
end
COUNCIL DISTRICT(S):
Council District(s)
District 4
b
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:
Aubrey Hills is a proposed 32-unit garden-style apartment community for families located at 148 Horseshoe Road. City Council is asked to authorize a loan commitment letter and subsequent loan documents in the amount of $2,145,000 from Home Investment Partnership Funds (HOME) to construct this new housing development. This commitment will be valid until June 30, 2024, with a six-month extension allowed at the Director's discretion.
Background:
Halcon Development, LLC. is a private developer constructing a 32-unit community and producing eleven (11) HOME rental units. The property is a vacant parcel located at the southern end of Horseshoe Road off of Yadkin Road. Funding in the amount of $2,145,000 would come from the City's annual allocation of HOME funds, the development requires a 2% interest loan fully amortized over 30 years and due in full at year 20.
At the April 3, 2023, Work Session, City Council reviewed information about this project as a 52-unit development. Since that time, the development has been approved for Low-Income Housing Tax Credits (LIHTC) from the State of North Carolina's Housing Finance Agency with the total number of units being decreased to 32. The number of HOME-funded units has remained at eleven (11) units consisting of one (1) one-bedroom units, eight (8) two-bedroom units, and two (2) three-bedroom units and sh...
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