COUNTY OF ALBEMARLE

 

                                                                    EXECUTIVE SUMMARY

 

 

 

AGENDA TITLE

Park View at South Pantops

 

 

 

SUBJECT/PROPOSAL/REQUEST:

Resolution of Support for Low Income Housing Tax Credits/CEO Letter and Intent to allocate Housing Choice Vouchers

 

 

 

STAFF CONTACT(S):

Tucker,  Roxanne White, Ron White

 

AGENDA DATE:                     

March 10, 2004

 

ACTION:                                     INFORMATION:

 

 

CONSENT AGENDA:         

     ACTION:    X                        INFORMATION:

 

 

ATTACHMENTS:     Yes

 

 

REVIEWED BY:

 

 

BACKGROUND

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.

 

 

DISCUSSION:  

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.

 

 

RECOMMENDATION:

Staff recommends adoption of the attached resolution of support and execution of the Local CEO Support Letter by Mr. Tucker.

 

View letter attachment

View resolution attachment

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