title
Resolution Authorizing the City Manager to Enter into a Funding Agreement with Wilmington Housing Authority in the Amount of $660,000
body
Department:
Housing and Neighborhood Services
Meeting Date:
1/21/2025
Contact Name:
Rachel Schuler
Public Hearing:
No
Contact Phone:
910-341-7836
Advertising Date/Advertised By:
N/A
Attachments:
Attachment #1: Resolution
Attachment #2: WHA - Jervay Letter Request
Attachment #3: Fully Executed Agreement Re: Operating Deficits
PURPOSE:
The purpose of this resolution is a request from Wilmington Housing Authority for $660,000 from the City of Wilmington to pay operating subsidies owed to Telesis.
BACKGROUND:
Robert S. Jervay Place - Phase II, is an 82 unit affordable housing property developed as a HOPE VI revitalization effort in 2002. The project was developed and owned by the Telesis Corporation. The property experienced significant damage from Hurricane Florence in 2019, with a number of units still uninhabitable and vacant.
The Wilmington Housing Authority (WHA) recently acquired the Jervay property from Telesis. Following acquisition, WHA intends to utilize the U.S. Department of Housing & Urban Development ("HUD")'s Rental Assistance Demonstration ("RAD") program to preserve and improve the property. During the process of purchasing the property, WHA was made aware that they failed to provide the operating subsidies to Telesis. Due to WHA's focus on addressing critical issues, including extensive mold remediation, the Agency has depleted its cash flow, and has requested $660,000 from the City of Wilmington to support WHA's reimbursement to Telesis.
Financial support from the City of Wilmington will allow WHA to prioritize stabilizing the property financially and bring at least thirteen vacant units back online as quickly as possible.
budget
BUDGET IMPACT:
Funding located in the Loan Fund 716 (General Fund Revolving Loan Fund) in the amount of $660,000 is available for this purpose.
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