Title
NOAH Multi-Family Rental Subsidy Program- Willow Park NOAH, LLC (Woodford Estates), Sharon Pointe NOAH, LLC (Sharon Pointe), Arrowhawk NOAH, LLC (Shelton Knoll)
Action
ACTION:
(A) Adopt a resolution authorizing the County Manager to negotiate terms and conditions and execute an agreement with Willow Park NOAH, LLC under which Mecklenburg County would allocate a total of $3,649,102 over a 20-year period to cover twenty (20) years of rental subsidy for thirty-four (34) affordable rental units at Woodford Estates available to households earning 30% AMI and below.
(B) Adopt a resolution authorizing the County Manager to negotiate and execute an agreement with Willow Park NOAH, LLC for a 20-year loan in the amount of $2.5M in the form of a subordinate mortgage. The term of the loan will be commensurate with the term of the 20-year affordable deed restriction.
(C) Adopt a resolution authorizing the County Manager to negotiate and execute an agreement with Sharon Pointe NOAH, LLC and develop terms and conditions under which Mecklenburg County would allocate a total of $2,954,644 over a 20-year period to cover twenty (20) years of rental subsidy for twenty-eight (28) affordable rental units at Sharon Pointe available to households earning 30% AMI and below.
(D) Adopt a resolution authorizing the County Manager to negotiate and execute an agreement with Arrowhawk NOAH, LLC and develop terms and conditions under which Mecklenburg County would allocate a total of $718,761 over a 20-year period to cover twenty (20) years of rental subsidy for seven (7) affordable rental units at Shelton Knoll available to households earning 30% AMI and below.
(E) Authorize the County Manager to develop terms and conditions and execute an agreement with Housing Collaborative to administer the rental subsidy program.
Staff Contact: LaShonda Hart, Program Manager, Affordable Housing Initiatives
Dena Diorio, Mecklenburg County Manager
Presentation: Yes
BACKGROUND/JUSTIFICATION:
Housing Impact Fund is an innovative social impact equity fund committed to addressing housing insecurity and upward mobility in Charlotte. Housing Impact Fund has raised $125 million of social impact capital from the private sector to acquire and preserve 1,638 NOAH units across Mecklenburg County since December 2020. Across its portfolio, Housing Impact Fund has set aside 492 units for households earning 30% AMI and below, 72 units for households earning 50% AMI and below, 747 units for households earning 60% AMI and below and 328 units for households earning 80% AMI and below.
Approval of this item will authorize the County Manager to negotiate, the terms and conditions and execute an agreement with Housing Collaborative that will administer the rental subsidy program.
This proposal would commit annual funding from Mecklenburg County for the term of the property’s deed restriction at an amount equivalent to the corresponding annual property tax bill. The funding will be administered through the Housing Collaborative which identifies eligible tenants and administers the rental subsidy program.
Property owners must implement a long-term (20 years or longer) deed restriction on the property designating 100% of the units to be affordable to households at 80% AMI and below. The majority of units must be affordable to households at 60% AMI and below. The deed restriction must include 30% of the property to be made available to residents earning 30% AMI or below in aggregate, including households with existing vouchers of rental assistance.
Approval of the recommended rental subsidy program is a request for 20 years of annual funding to be equivalent to the corresponding county property tax bill.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
Woodford Estates
The $2.5M loan will be paid from Fund Balance
The $3,649,102 will be paid from the Affordable Housing Program Fund from property taxes paid.
Sharon Pointe
The $2,954,644 will be paid from the Rental Subsidy Program Fund property taxes paid.
Shelton Knoll
The $718,761 will be paid from the Rental Subsidy Program Fund property taxes paid.