Agenda - 04-18-2006-5f - Laserfiche WebLink

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Dobbins Drive in Chapel HiII, The development will provide 32 apartments with 16 units affordable for families earning 40% or less of the Area Median Income (AMI) and 16 units far families earning less than 60% of AMI. One (1) bedroom apartments will rent for $475, two (2) bedroom units at $550, and three (3) bedroom units at $600. The Affordable Housing Group (TANG) is currently preparing a Low Income Housing Tax Credit application to the N,C, Housing Finance Agency (NCHFA) to provide financing for construction for submission on May 5, 2006, (The existing Dobbins Hill apartment complex also received an allocation of tax credits to provide construction financing.) Receipt of impact fee reimbursement for impact fee can improve the likelihood of receiving tax credits in a very competitive process. This is due to the NCHFA policy of providing points far applicants with local fund contributions, If the tax credits are received this year construction is scheduled to begin in ,January 2007 with completion by December 15, 2007, TANG will develop, own and oversee the management of the property for the initial 15 year compliance period required by the low-income housing tax credits, After the 15 year period they will give the Orange Community Housing and Land Tnist (OCHLT) the Right of First Refusal to purchase the property at a significant discount at the end of the 15 year tax credit cycle, OCHLT plans to purchase the property and retain ownership and maintain affordability the remaining 84 years of the 99 year affordability period, This property is adjacent to the existing Dobbins Hill Apartments developed in 1994 by Crosland, Inc. and Orange Community Housing Corporation, That project received tax credits as well and provides 55 affordable units to families at 60% and less of AMI, A site map of the project area is attached as additional information, This request has been reviewed in accordance with the above stated eligibility criteria and it has been determined that it is eligible for impact fee reimbursement, Additionally, documentation has been reviewed to confirm that The Affordable Housing Group is a 501 (c) (3) organization, FINANCIAL IMPACT: The current balance from the FY 2005-2006 appropriation for impact fee reimbursements is $60,105. The remaining dollars required ($3,523) is included in the proposed FY 2006-2007 appropriation for impact fee reimbursement. Actual reimbursement would not be necessary until approval of the tax credit application or January 2007 at the earliest, RECOMMENDATION(S): The Manager recommends that the Board approve the impact fee reimbursement request from Orange Community Housing and Land Trust and the Affordable Housing Group for $63,328 for anticipated construction of 32 new apartment units in the proposed Dobbins Hill II rental development in Chapel Hill pending approval of the proposed Low Income Housing Tax Credit application.