COUNTY OF ALBEMARLE
Park View at South Pantops
Resolution of Support for Low Income Housing Tax Credits/CEO Letter and Intent to allocate Housing Choice Vouchers
Tucker, Roxanne White, Ron White
March 10, 2004
ACTION: X INFORMATION:
The Shelter Group (Baltimore, MD) and JABA are entering into a partnership to develop a 90-unit apartment complex for seniors using, in part, Low-Income Housing Tax Credits. The complex will consist of 54 one-bedroom units (750 sq. ft.) and 36 two-bedroom units (960 sq. ft.) with proposed rents of $640 and $765, respectively. The units will be restricted to elderly households with incomes at or below 60% of the area median income. The four-story building will be constructed adjacent to Winterhaven Assisted Living on South Pantops Drive. The partnership agreement gives JABA the first right-of-refusal to purchase after 15 years of operation.
The state allocation plan for issuing Low-Income Housing Tax Credits provides an extremely competitive environment for proposed projects. This year elderly projects face additional competition due to VHDA’s desire to fund more family-type rental units. In fact, Park View is in a pool with at least 10 other proposed projects and it is likely only one will receive funding.
Tax credit applications are scored on a number of criteria and required documents. One such document is the Local CEO Support Letter (attached). In addition to the local support letter, the applicant can receive ten points if a portion of the units will receive project-based rental subsidies. The applicant has requested that the County provide up to 12 project-based vouchers to support this project. The project-based vouchers would not be additional rental vouchers to the County but would come from the existing allocation. While this does not provide a net increase of assistance, the effect of a successful project would be that 90 units of affordable rental housing would be developed with at least 12 serving households with incomes below 50% of the area median income. The annual value of the project-based vouchers is estimated to be $54,000. Project-based vouchers would be contracted on an annual basis provided that HUD continues to fund the voucher program and approves the County’s proposal to utilize up to 15% of authorized vouchers as project-based.
The Park View proposal is similar to the Woods Edge Elderly Housing project developed under a partnership between Fore Properties and JABA. The County provides direct local support ($40,000 annually) to reduce the rents for thirty households with incomes below 50% of the area median income. Using project-based vouchers rather than direct local subsidy will allow more control over those receiving assistance and provide a deeper subsidy for those households that may have extremely-low income.
Staff recommends adoption of the attached resolution of support and execution of the Local CEO Support Letter by Mr. Tucker.
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View resolution attachment
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