title
Resolution Authorizing the City Manager to Enter into an Agreement with Collective Impact in New Hanover County, Inc., for Gap Financing for Affordable Housing Rehabilitation Utilizing $824,652 of General Fund Committed from the Affordable Housing Fund Balance
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Department: |
Housing & Neighborhood Services |
Meeting Date: |
3/18/2025 |
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Contact Name: |
Gilbert Combs |
Public Hearing: |
No |
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Contact Phone: |
910-341-5809 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution Attachment #2: Memo |
PURPOSE:
The purpose of this resolution is to present for Council’s consideration an application from Collective Impact in New Hanover County, Inc. (“Cape Fear Collective”) for $824,652 from the City of Wilmington for a proposed scattered-site rehabilitation project for seven single-dwelling residential properties.
BACKGROUND:
Cape Fear Collective (“CFC”) has applied to the City of Wilmington for $824,652 in funding to support Block by Block, a scattered-site development project for the rehabilitation of single-dwelling residential projects located at 1211 South 7th Street, 203 North 11th Street, 1315 Church Street, 416 McRae Street, 604 Queen Street, 1112 Queen Street, and 609 Swann Street (collectively, “the Properties”).
Currently, CFC has a portfolio of over 80 properties that mostly span across the 1945 corporate limits area. After decades of ownership by landlords who failed to invest in routine maintenance and upkeep, the Properties are in serious disrepair. In addition to the request to the City of Wilmington for the rehabilitation of seven housing units, CFC has received $837,000 in grant funding from the New Hanover Community Endowment for the rehabilitation of other units in their portfolio.
CFC intends to keep four of the units as affordable rental units, and three units will be made available for purchase. Of the three properties for sale, two will be sold in the land trust model and will be put in trust at closing with the Cape Fear Community Land Trust (“CFCLT”), and one will be sold outside the land trust model to an income eligible buyer. The properties identified are currently vacant, so no existing tenants will be displaced. Through case management, staff will monitor each of the Properties to ensure compliance with the agreement’s terms.
Three housing units located at 1211 South 7th Street, 203 North 11th Street, and 1112 Queen Street, are currently listed as structure code violations with Code Enforcement. Approval of this rehabilitation affordable housing project would assist in both supporting affordable housing in the City and resolving code violation issues.
budget
BUDGET IMPACT:
Funding located in Loan Fund 716 (General Fund Revolving Loan Fund) in the amount of $824,652 is available for this purpose.
recommendation
RECOMMENDATION / ACTION REQUESTED:
The staff recommends approval of the resolution authorizing the City Manager to enter into a funding agreement with Collective Impact in New Hanover County, Inc., and that the funding agreement should include provisions for a forgivable loan in the amount of $824,652, with no payments due, provided criteria to rent and sell to income-eligible renters and buyers is met.