Title
Resolution Authorizing the City Manager to Enter into an Agreement with Blue Ridge Atlantic Development, LLC for Gap Financing for Affordable Workforce Housing Utilizing $4,000,000 of General Fund Committed Affordable Housing Fund Balance
Body
LEGISLATIVE INTENT/PURPOSE:
WHEREAS, City Council has identified workforce and affordable housing as a priority in the City’s Strategic Plan; and,
WHEREAS, on January 19, 2016, City Council approved the establishment of a City of Wilmington/New Hanover County Ad Hoc Committee on Improving Workforce/Affordable Housing, and charged the committee with conducting a comprehensive examination of workforce/affordable housing and bringing forth a report on findings and recommendations; and,
WHEREAS, the City of Wilmington and New Hanover County created jointly the Workforce Housing Advisory Committee (“WHAC”) on June 18, 2019, to conduct a comprehensive examination of workforce housing efforts and recommend practices, policies, and programs to improve and increase the stock of available workforce housing in the region; and,
WHEREAS, City Council assigned $3,500,000 in the FY22 budget from General Fund balance to be available to appropriate at its discretion for workforce/affordable housing; and,
WHEREAS, in the FY23 budget, City Council established a policy to dedicate the value of one cent on the property tax rate for affordable housing, and an additional $1,500,000 placed in General Fund committed affordable housing fund balance, awaiting further direction from Council on its affordable housing use; and,
WHEREAS, Blue Ridge Atlantic Development, LLC (“BRAD”) is applying to the North Carolina Housing Finance Agency (“NCHFA”) in the upcoming cycle to receive Low Income Housing Tax Credits (“LIHTC”) to develop a $58,980,719, 184-unit multi-family housing project at 507,515, 517, 519, and 525 South Kerr Ave, Wilmington, NC; and,
WHEREAS, this multi-family apartment community increases the supply of affordable rental housing for eligible households earning at or below 80% area median income (“AMI”); and,
WHEREAS, this funding request also leverages $54,980,719 in private developer investments to generate more affordable housing units; and,
WHEREAS, in March 2021, the WHAC presented the jointly funded City of Wilmington and New Hanover County Housing Needs Assessment prepared by Bowen National Research in which the need for affordable rental housing was identified and quantified; and,
WHEREAS, the housing needs study found 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 further identified a gap or need for approximately 4,153 rental units per year for households earning less than 80% area median income during the period 2020-2030.
THEREFORE, BE IT RESOLVED:
THAT, the City Manager is hereby authorized to enter into an agreement with Blue Ridge Atlantic Development, LLC for an amount of up to $4,000,000 for housing assistance gap financing to develop 184 units of affordable housing for households at or below 80% AMI, and that the funding is available.