title
Resolution Authorizing the City Manager to Enter into a Funding Agreement with Wilmington Housing Authority in the Amount of $660,000
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Department: |
Housing and Neighborhood Services |
Meeting Date: |
1/21/2025 |
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Contact Name: |
Rachel Schuler |
Public Hearing: |
No |
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Contact Phone: |
910-341-7836 |
Advertising Date/Advertised By: |
N/A |
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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.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Staff’s recommendation is to approve the resolution authorizing the City Manager to enter into a funding agreement with the Wilmington Housing Authority. Staff is recommending a loan to WHA in the amount of $660,000 at 0% interest with payments due at 90-120-180 days.