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The Longmont Housing and Human Services Advisory Board has determined four applicants for Affordable Housing Funds in the first quarter of 2020.
The total amount for these funds are $950,000 in loans that will provide up to 119 new affordable homes in 2020. An additional $475,000 will be set aside for estimated fees for three projects that would be eligible to receive them, one of which would include an additional 73 affordable homes.
In total, staff anticipates at total of $2,225,800 will be available for Affordable Housing Funding heading into 2020. This total is made up of $858,800 from 2019, $1,000,000 transfered from the General Fund, and estimated $137,000 in Marijuana taxes, and an estimated $230,000 in program income.
The projects approved by the Housing and Human Services Advisory Board include:
- Pre-development loan to Element Properties – The request is to fund the pre-development costs to prepare an application to Colorado Housing and Finance Authority (CHFA) for 9% Tax Credits. The project would be located on The Suites vacant parcel jointly owned by the LHA and the City. Usually these costs would be covered by the developer, but since they do not own or control the land for the project (the LHA and the City do), it was felt that providing these funds with repayment within two years (whether Tax Credits are received or not) would be appropriate. If this project is funded by CHFA, final land control will be determined prior to final financing. It is estimated that up to 60 permanent supportive housing units may be constructed under this project, if approved and another 60-100 affordable homes would be provided in a subsequent phase. If funded by CHFA, further project development would occur and more detailed information would be provided to Council.
- HHSAB Recommendation: AHF loan - $100,000; 0% interest rate, 2 year balloon payment.
- Inn Between – The Inn Between requested funding to acquire a yet-to-be-determined apartment building as affordable rental housing. While this project is still undefined, it was felt that having a source of funding available for a possible acquisition makes sense to convert existing market rate housing to affordable in order to provide new affordable homes without construction. This is a strategy in the Regional Affordable Housing Plan and one of the strategies to meet the City’s 12% AH goal.
- HHSAB Recommendation: AHF loan - $100,000; 0% interest rate, repaid over first mortgage term when known, not to exceed 20 years. NOTE: up to an additional $160,000 to come from 2020 CDBG funding as a grant
- CAVEATS – • Property must be acquired within 12 months of Council approval • Property purchased must have at least 6 units with one unit able to be fully accessible • Inn Between must also provide documentation of permanent financing or have a line of credit or bridge loan prior to entering into a purchase contract.
- Longmont Family Apartments – Prospect Development has requested funding to help finance the new construction of 88 family affordable rental homes located generally at 15th Avenue and Pratt Street. This project has already received CHFA tax credit, CHFA Private Activity Bond funding and CHFA permanent financing. 22 of the units (or 25%) would be affordable at or below 50% of the AMI and 66 units affordable between 51% and 60% AMI. There will be 27 three bedroom and 16 four bedroom apartments which will serve the needs of larger families.
- HHSAB Recommendation: AHF loan - $500,000; 0% interest rate during construction, permanent interest rate tied to AFR (Index of Applicable Federal Rates published by IRS for Tax Credit projects) at time of Certificate of Occupancy (currently at 3.18%), repaid over 15 years, amortized over 38 years (CHFA loan term).
- Cinnamon Park Senior Apartments – Senior Housing Options has requested funding to finance the construction of 25 senior, independent living apartments at 1333 Cinnamon Street, to complement their assisted living units already in place on the campus. Because of the campus, they would be able to provide optional meal and housekeeping services at an additional charge to residents of the independent units. They are applying for 9% Tax Credits in February, 2020.
- HHSAB Recommendation: AHF loan - $250,000; 0% interest rate, 40 year term for repayment.
- CAVEATS – • Contingent on receiving 9% tax credits in 2020. As noted, staff is also setting aside up to $475,000 for fee offsets to cover the projects’ eligible costs for water and sewer system development fees, windy gap fees, etc. as allowed by City Code.
All members of council approved except Council member Susie Hidalgo-Fahring. As she wanted more information on the Longmont Family apartments.