COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Federal Low-Income Housing Tax Credits

 

 

SUBJECT/PROPOSAL/REQUEST:

Request to support applications for federal low-income housing tax credits and to adopt a Resolution to allocate housing vouchers to the Treesdale Park Development

 

 

STAFF CONTACT(S):

Messrs. Tucker, Davis, Elliott, and White

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

February 6, 2008

 

       ACTION:                INFORMATION:   

 

CONSENT AGENDA:

       ACTION:   X          INFORMATION:   

 

 

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

Federal Low-Income Housing Tax Credits, administered by the Virginia Housing Development Authority (VHDA), can provide a significant amount of equity financing for affordable rental developments.  The credits are allocated by VHDA through a competitive process which is based on a point system that includes project readiness, feasibility, and local support. VHDA is required by the Internal Revenue Code to provide localities with an opportunity to comment on any developments under consideration for tax credits.    The three attached letters of support (Attachments A-C), if signed, would provide 50 points to each applicant.  A letter that does not provide support or opposition would provide 25 points and a letter stating that the development is inconsistent with zoning or land use regulations would provide no points.

 

One of the adopted strategies in the County’s Affordable Housing Policy is to support applications for and the allocation of federal low-income housing tax credits.  The County has been notified by VHDA that three applicants have submitted letters of intent to apply for tax credits for developments in Albemarle County.  All developments are currently zoned for the proposed activities.

 

 

STRATEGIC PLAN:

Goal 1: By June 30, 2010, working in partnership with others, increase affordable housing opportunities for those who work and/or live in Albemarle County.

 

 

DISCUSSION:

Following is a brief description of three proposed developments in Albemarle County that have notified VHDA of their intent to apply for 2008 Federal Low-Income Housing Tax Credits.  All projects are required to restrict the occupancy to households with incomes at or below 60% of the area median income.

 

Appleton Apartments, currently known as Wilton Farms Apartments, is a proposed acquisition/rehab of 143 units of affordable rental housing located on Wilton Farm Road just off Route 20 North.  The existing garden-style apartments will be sold to the Virginia Non-Profit Coalition and will undergo exterior renovations including a new roof, siding, and windows. The units will also receive new appliances and HVAC equipment.

 

Crozet Meadows is a 28-unit rental development for lower-income elderly tenants in Crozet owned by Jordan Development Corporation.  The owners are proposing to sell the property to a Limited Partnership which will include Jordan Development and the Piedmont Housing Alliance.  The proposal includes rehabilitation of the existing units and development of 38 new units of affordable rental housing.  The Board approved similar support for this project last year although it was not awarded tax credits.  The Board also adopted a resolution last year committing up to 8 Housing Choice Vouchers to the development.

 

Treesdale Park is a 90-unit development proposed by the Albemarle Housing Improvement Program (AHIP) to be located on East Rio Road.  The proposed project will consist of three 3-story buildings of 30 units each and a separate community building. AHIP has requested that the County provide financial support for this project.  One means of providing financial support is the through the commitment of Housing Choice Vouchers.  HUD regulations allow for the commitment of up to 20% of allocated vouchers to be project-based vouchers.  Currently the County’s Housing Choice Vouchers (HCV) Annual Plan states that we will use up to 15% but we will propose a revision to our next Annual Plan to be submitted to HUD in April that will allow the maximum commitment.  All commitments of Housing Choice Vouchers to be used with specific projects are conditioned on continued funding from HUD.  A resolution is attached for the Board’s consideration and adoption (Attachment D)

 

 

BUDGET IMPACT:

There is no budget impact in providing support for the allocation of federal low-income housing tax credits to the three developments.  The resolution to commit up to twenty-one Housing Choice Vouchers to the proposed Treesdale Park development will not impact the County’s general fund budget as the vouchers are funded by the U.S Department of Housing and Urban Development (HUD). 

 

 

RECOMMENDATIONS:

Staff recommends that the Board of Supervisors indicate its support for the three applicants seeking federal low-income housing tax credits and authorize the County Executive to sign the attached letters of support for inclusion in the respective applications.

 

Furthermore, staff recommends that the Board of Supervisors adopt the attached resolution (Attachment D) to commit up to twenty-one Housing Choice Vouchers to the Treesdale Park development provided:

 

a.       HUD approves the County’s Housing Choice Voucher Annual Plan to allow up to 20% of allocated vouchers be used for project-based assistance, and;

b.       HUD continues to provide sufficient funding to meet this commitment.

 

 

ATTACHMENTS

A - Appleton Apartments

B - Crozet Meadows

C - Treesdale Park

D - Resolution – Treesdale Park

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