title
Resolution Authorizing the City Manager to Enter into a Revised Funding Agreement with the Wilmington Housing Authority in the Amount of $660,000
body
Department:
Housing & Neighborhood Services
Meeting Date:
5/6/2025
Contact Name:
Rachel Schuler
Public Hearing:
No
Contact Phone:
910-341-7836
Advertising Date/Advertised By:
N/A
Attachments:
Attachment #1: Resolution
Attachment #2: Request from Wilmington Housing Authority
PURPOSE:
The purpose of this resolution is an updated request from Wilmington Housing Authority ("WHA") for a $660,000 loan from the City of Wilmington to pay operating subsidies owed to Telesis.
BACKGROUND:
At City Council's January 21, 2025, Council approved a resolution authorizing the City Manager to enter into a funding agreement with WHA in the amount of $660,000. The resolution established a 0% interest loan with payments due at 90-120-180 days from the date of approval. Since the resolution passed, staff has been working with WHA on the funding agreement, and WHA has made a request for updated loan terms for an unsecured loan with repayments due in 12 months from passage of the new resolution.
Funds would support WHA's Robert S. Jervay Place - Phase II project, 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.
WHA recently acquired the Jervay property from Telesis, and 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, WHA has depleted its cash flow,...
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