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
Eutaw Landing Apartments Affordable Housing Loan Commitment
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
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:
Eutaw Landing is a proposed 60-unit apartment community for 55+ located adjacent to 839 Elm Street. City Council is asked to authorize a loan commitment letter and subsequent loan documents in the amount of $800,000 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:
SEML Development, LLC. is a private developer constructing a 60-unit 55+ community and producing six (6) HOME rental units. The property is a vacant parcel located near the Eutaw Village shopping plaza on Bragg Boulevard. Funding of the $800,000 would come from the City's annual allocation of HOME funds, the development requires a 2% interest loan fully amortized over 20 years.
At the April 3, 2023, Work Session, City Council reviewed information about this project as a 60-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. The number of HOME-funded units totals six (6) units consisting of three (3) one-bedroom units and three (3) two-bedroom units that shall be rented exclusively to persons or households earning no greater than forty percent (40%) of the Fayetteville area median income.
Issues/A...
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