Title
Resolution Authorizing the City Manager to Enter into an Agreement with Terroir Development, LLC, for Gap Financing for Affordable Workforce Housing Utilizing $440,000 of HUD HOME Funds
Body
LEGISLATIVE INTENT/PURPOSE:
WHEREAS, City Council has identified workforce and affordable housing as a priority in the City's Strategic Plan; and,
WHEREAS, the City joined with New Hanover County to create the Workforce Housing Advisory Committee ("WHAC"); and,
WHEREAS, in March of 2021, the WHAC presented a Housing Needs Assessment for Wilmington and New Hanover County prepared by Bowen National Research in which the need for affordable rental housing was identified and quantified; and,
WHEREAS, the study finds that over 52% of renters in the City of Wilmington pay more than 30% of their income for rent, meeting the definition of housing cost burdened; and,
WHEREAS, the study identified a gap or need for approximately 4,153 rental units per year for households earning less than 80% area median income ("AMI") during the period 2020-2030; and,
WHEREAS, the City receives annual funding from the U.S. Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program to support the production of affordable housing for households with incomes at or below 80% AMI.
WHEREAS, Terroir Development, LLC, received North Carolina Housing Finance Agency ("NCHFA") Low Income Housing Tax Credits ("LIHTC") to develop a $13,701,634, 56-unit multi-family senior housing project, Sterling Reserve, at 5029 Carolina Beach Road, Wilmington, NC; and,
WHEREAS, the project is located within the City of Wilmington, as a result of City Council's May 2, 2023, voluntary annexation; and,
WHEREAS, at their May 2, 2023, meeting, City Council authorized the City Manager to enter into an agreement for up to $1,000,000 in gap financing but due to increased interest rates and decreased tax credit pricing, Terroir Development, LLC, has requested additional gap financing;...
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