title
Resolution Authorizing the City Manager to Enter into a Revised Funding Agreement with the Wilmington Housing Authority in the Amount of $660,000
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Department: |
Housing & Neighborhood Services |
Meeting Date: |
5/6/2025 |
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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: 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, 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 WHA with the new terms, including an unsecured loan to WHA in the amount of $660,000, at 0% interest, with payments due in 12 months, following disbursement of funds.