COUNTY OF ALBEMARLE
Crozet Meadows Revitalization and Expansion
Resolution to support project-based vouchers to provide local financial commitment; authorization for letter in support of project
Mr. Tucker, Ms. White, Mr. Davis, Mr. White
LEGAL REVIEW: Yes
March 7, 2007
ACTION: X INFORMATION:
The Meadows, located in Crozet and owned by Jordan Development Corp., currently consists of 28 housing units designated for seniors. The existing financing for the property through Rural Development (formerly the Farmer’s Home Administration) provides rental subsidies to 27 of the 28 units. The owner proposes to transfer the ownership from Jordan Development to Crozet Meadows, LP for the purpose of applying for federal Low-Income Housing Tax Credits (LIHTC) in order to rehabilitate the existing units and to construct 38 new units on the site. Jordan Development will be the general partner in the LP. The Virginia Housing Development Authority (VHDA), as the administrator of LIHTC, is required by the Internal Revenue Service to provide localities an opportunity to comment on developments under consideration for LIHTC. Favorable comments supporting the application receive the highest number of points in that category. In addition, applicants for LIHTC may receive additional points for their project if there is local financial support.
Enhance the Quality of Life for all Albemarle County Residents
The property currently known as The Meadows was rezoned in 2004 to permit the expansion of the project. The rezoning allows for an additional 38 by-right units. A preliminary site development plan, submitted in January 2007, has been reviewed by Community Development. No major issues have been identified, and it is not anticipated to require any review or approval by the Planning Commission or the Board of Supervisors.
The owners have received approval from Rural Development to expand the project with Rural Development continuing to provide rental assistance to 27 of the existing units. The owner has requested that Albemarle County commit up to eight project-based vouchers for rental assistance, with seven designated to support newly-created units. All of the vouchers will be restricted to those households with incomes below 40% of the area median income. The value of these vouchers over a ten-year period is estimated to be approximately $480,000, which is recognized as a local financial commitment. A resolution is attached for your consideration (Attachment A).
VHDA provided a form letter (Attachment B) that allows jurisdictions to support the applicant’s application for LIHTC. The County’s housing policy includes a number of recommended strategies that are relative to this project including
This project will improve 28 existing units of affordable rental housing and create 38 new units with rents controlled for a minimum of fifteen years by the IRS.
No impact on local funding. The commitment of project-based vouchers is conditioned upon continued annual funding from HUD for the Housing Choice Voucher Program.
Staff recommends that the Board of Supervisors adopt the attached resolution that will allow for the commitment of up to eight project-based vouchers once the development is completed. In addition, staff recommends that the Board authorize the County Executive to sign the Local CEO Support Letter indicating that the development will help meet the housing needs and priorities of the County and, therefore, the County supports the applicant’s application for tax credits.