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Resolution Authorizing the City Manager to Enter into an Agreement with Wallick Asset Management, LLC for Gap Financing for a New Multi-family Project Utilizing $98,000 from the City HOME Investment Partnerships Program
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Department: |
Housing & Neighborhood Services |
Meeting Date: |
5/6/2025 |
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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 approve funding from available HOME funds to Wallick Asset Management, LLC, based upon their application requesting $98,000 in gap financing from the City of Wilmington for the acquisition of property on which to build a proposed 48-unit affordable senior housing apartment development.
BACKGROUND:
Wallick Asset Management, LLC, applied to the City of Wilmington for $98,000 in funding to support Onyx Place Apartments, a 48-unit affordable Low-Income Housing Tax Credit senior housing apartment development. The project will be located at 710 North Kerr Avenue, which is at the northeast corner of North Kerr Avenue and New Centre Drive. This project would be located within one mile of four grocery stores providing fresh produce, twelve retail stores, six restaurants, one fitness facility, three facilities providing medical services, and one public park. The units will be affordable for the following breakdown: 12 units at 30% area median income (AMI), eight units at 50% AMI, 14 units at 60% AMI, and 14 units at 80% AMI.
The total project cost is estimated at over 14.05 million dollars, meaning the investment from the City HOME Investment Partnerships Program (HOME) of $98,000 is leveraging over one hundred forty-two dollars per one dollar spent.
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BUDGET IMPACT:
Funding located in the HOME Program in the amount of $98,000 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 Wallick Asset Management, LLC, for a 15-year amortized loan to Wallick Asset Management, LLC, in the amount of $98,000, for support of property acquisition, with no payments due until year six, and monitoring of the property to ensure compliance.