title
Resolution Authorizing the City Manager to Enter into an Agreement with BRAD WHA Dawson Lofts II Apartments, LLC for Gap Financing for a New Affordable Housing Development Utilizing $1,500,000 of the Affordable Housing Fund
body
|
Department: |
Community Building |
Meeting Date: |
8/18/2026 |
|
Contact Name: |
Gilbert Combs |
Public Hearing: |
No |
|
Contact Phone: |
910-341-5809 |
Advertising Date/Advertised By: |
N/A |
|
Attachments: |
Attachment #1: Resolution; Attachment #2 Memo |
PURPOSE:
The purpose of this resolution is to approve funding from available General Funds to BRAD WHA Dawson Lofts II Apartments, LLC, dba Blue Ridge Cascade (“BRAD WHA”), for a funding request from the City of Wilmington for a proposed 86-unit affordable housing development.
BACKGROUND:
BRAD WHA applied to the City for funding to support Dawson Lofts II at Jervay, an 86-unit affordable Low-Income Housing Tax Credit (“LIHTC”) development (“the Project”). The Project is being proposed at 883 Virgie Rhodes Lane and would be located within one mile of a grocery store, multiple retail stores, a medical facility, and a middle school, and 1/10 of a mile from a WAVE Transit bus stop. The units will be affordable as follows: 17 units at 30% area median income (“AMI”), 23 units at 50% AMI, 31 units at 60% AMI, and 15 units at 80% AMI.
BRAD WHA requested $2,500,000 in funding. Based on staff's evaluation of the Project, the availability of funds, and other future Council-initiated projects, staff recommends approval of $1,500,000 in gap financing. The total Project cost is estimated at over $28.46 million, meaning the City’s General Fund Committed Affordable Housing Fund investment of $1,500,000 is leveraging nearly $18 for every $1 invested. Repayment would be based on 10% of cash flow starting in 2029 and balloon at 20 years. This loan would carry a 1% interest rate, and the property will be monitored to ensure compliance.
budget
BUDGET IMPACT:
General Funds located in the Affordable Housing Fund in the amount of $1,500,000 are available for this purpose.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of the resolution is recommended to authorize the City Manager to enter into a funding agreement with BRAD WHA in the amount of $1,500,000.