HomeMy WebLinkAbout8338RESOLUTION NO. 8338
A RESOLUTION COMMITTING TO RESERVE FEDERAL
HOME FUNDS FOR A MULTI - FAMILY HOUSING PROJECT
SUBJECT TO NEGOTIATION OF A PROJECT AFFORDABLE
HOUSING DEVELOPMENT AGREEMENT AND OTHER
CONDITIONS
WHEREAS, the City of Pueblo (hereinafter "City "), pursuant to the HOME Investment
Partnership Act, the Craston - Gonzales National Affordable Housing Act; 42 U.S.0 12701 et seq;
and implementing regulations under 24 CFR Part 92, has been a participating jurisdiction for
HOME federal funds under the program since 1992; and
WHEREAS, in accordance with the provisions of the Act and 24 CFR Part 92 a portion of
such financial assistance, subject to appropriation by the City Council, may be made available to
for - profit organizations for the purpose of carrying out specific elements of the City of Pueblo
consolidated housing plan including the expansion of the availability of affordable housing for low
and moderate income Pueblo residents; and
WHEREAS, Hunter Creek Housing Ltd., a Colorado Limited Partnership (hereinafter
referred to as "Developer ") has proposed an affordable housing project and has applied to City for
a loan of $340,000 from HOME federal funds for the purpose of carrying out the construction of a
new multi - family project consisting of 94 units more fully described in Exhibit "A" (hereinafter
referred to as "The Project ")
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO,
COLORADO, that:
Project a reservation of a low income housing tax credit from the Colorado Housing and
F)
Financial Authority ( "CHFA ") pursuant to Section 42 of the Internal Revenue Code of 1986,
as amended, which tax credits must actually be allocated to the Project prior to loan closing
and release of HOME funds by City; and
Developer committing to maintain Affordability of the housing unity and retain ownership s
thereof for an Affordability period of not less than 15 years.
Section 2.
In the event City and Developer either fail to negotiate an agreement for application of the
HOME funds for the Project within 90 days of the date of this Resolution, or, having negotiated an
agreement, fail to close a loan of HOME funds for the Project within 90 days of the date of this
Resolution, then the reservation of HOME funds and statement of intent to negotiate an affordable
housing development agreement set forth in this Resolution shall expire, the HOME funds shall
cease being reserved for Project, and said HOME funds may be reserved for or applied to any other
affordable housing project consistent with City's consolidated plan.
ATTEST:
City Clerk
INTRODUCED: February 9 , 1998
By Al Gurule
Councilperson
APPROVED:
& Z&4- � President o the ty Council
OUNCIL AGENDA
A RESOLUTION COMMITTING TO RESERVE
Title: FEDERAL HOME FUNDS FOR A MULTI-
FAMILY HOUSING PROJECT SUBJECT TO
NEGOTIATION OF A PROJECT AFFORDABLE
HOUSING DEVELOPMENT AGREEMENT AND
OTHER CONDITIONS
Department: Housing & Community Development
1. SUMMARY
a. Issue:
11 IN=
Agenda Item #
Date: February 9. 1998
The Pueblo City Council shall consider supporting a HOME funding application
submitted to the City of Pueblo for construction of a 94 unit apartment facility.
b. Recommendations:
The Council should support the application subject to certain conditions
2. BACKGROUND
Hunter Creek Housing Ltd., a Colorado Limited Partnership submitted an application
to the City of Pueblo for financial assistance to construct a new 94 unit apartment
complex for Pueblo rental households. Passage of this resolution will approve and
obligate $340,000 of federal HOME monies for the fiscal year 1998. The City's share
of HOME funds will pay for those project construction costs as specified in the
affordable housing agreement.
3. FINANCIAL IMPACT
A revised Source and Use of funds statement is attached. The $340,000 in Federal
HOME Funds will be used in conjunction with State of Colorado Division of Housing
funds and Colorado Housing and Finance Authority funds. Use of this money will
assist in meeting the housing goals of the Consolidated Plan for the City of Pueblo
submitted to HUD for the year 1995.
4. ALTERNATIVES
City Council can choose not to or they may support the housing application
PUEBIAIW-
Exhibit "A"
HUNTER CREEK APARTMENTS
Project Narrative
Hunter Creek Apartments is a 108 unit apart.n,ent complex that will be located in the
North -east quadrant of Pueblo, Colorado. Tire complex will be located West of the
intersection of Jerry Murphy Road and Calhoun Road. This is a four acre site that is
zoned for multi - family housing.
The project will comprise two three story buildings, and fourteen townhouses. The three
story buildings will house one bedroom and two bedroom units, and the townhouses will
be three - bedrooms. The townhouses will be connected in groups of 5, 6, and 3, with a
rental office attached to the 3 townhouse group. The project will have six ADA units, two
one bedroom, and four two bedroom units. There will be six handicap parking spaces.
There will be 28 one bedroom one bath units, 66 two bedroom one bath units, and 14
three bedroom one and one -half bath units. The one bedroom units will have
approximately 560 square feet, the two bedroom units will have about 798 square feet,
and the three bedroom units will have about 1,183 square feet.
Each three story building will contain 14 one bedroom units, and 33 two bedroom units
for a total of 47 units. Each three story building will have a laundry facility. Each unit in
the complex will have a stove refrigerator, dishwasher, hot water heater, and furnace /air
conditioner. The townhouses will have washer /dryer hookups.
The complex will have 60 of the units set aside for low income housing, 66 units. Of
the 66 units 14 will be set aside for families that are at 40% of the Pueblo median income
level, and 52 will be set aside for .families at the 60 median income level. This will equate
to 18 one bedroom units, 40 two bedroom units, and 8 three bedroom townhouses. The
remainder of the units will be rented at market rate.
The projected occupancy date will be December, 1998, with construction expected to
begin approximately December, 1997, or January, 1998.
The apartment units will be marketed to low income families in the Pueblo area by
contacting and placing notices with the Pueblo Housing Authority, and community
housing. and assistance agencies that work with low income and minority families.
Hunter Creek Apartments
R. Muftoz & Associates, Inc.
Page 2
Development Team
Project Man Yer: The Project Manager has yet to be determined. The Project Manager
0 1
will be selected by the construction company to be awarded the project. At this (late two
construction companies have submitted bids for the project, bids attached for review. The
project developer and architect will begin discussions with the construction companies to
determine who will build the project. A decision will be made by mid November 1997.
Manager: Raymond Muhoz will be the fiscal manager for the project. Mr. Mufioz has
over twenty years in the banking industry, with experience in evaluating and working
with operating budgets, and monitoring and overseeing advances for operating budgets
and construction budgets. He will engage a CPA fine to work with him. This firm will
also audit the construction budget when the project is completed, a requirement of the
Color Housing and Finance Authority if their construction loan is used.
Architect/ Engineer: Architect for the project Is Luis O. Acosta Architects, P.C. The
principal of the company, Luis O. Acosta, has more than thirty years experience as an
architect, and the company has been in existence for more than nine years. The company
provided the planing, architecture, and interior design for the project. It has also
contracted and monitored the various engineering firms that contributed to the
development of the construction plans. The company has experience in the areas of
commercial building designs and multi-family housing projects.
Rropijjy Njana rLNL, ,, Consultant: liadley-Mendel Management Company will be
ag!�_
the Property Manager, and is the marketing consultant for the project. The company has
approximately twenty-two years of management experience, and was obtained from the
CHFA approved Property Mangers List for companies managing properties over 100
units. The company currently manages properties for CHFA, and has experience in
managing HUD properties.
Owner/Developer: The owner, developer is Raymond Mufioz/R. Muhoz & Associates,
Inc. Mr. Muiloz has been in the field of banking for over twenty years, working in the
area of commercial lending. In this position he has been involved with the preparation,
evaluation, and monitoring of operating budgets, for businesses, in addition to the
processing and review of construction loan budgets, and the monitoring of construction
projects.
sis no ect S
Silverstate Financial Corporation Pr Y p
16.01 California Street Hunter Creek Apartments
Denver, Colorado 60202 Location:
Name:
Location:
TEL: 303- 293 -8527
City: Pueblo, Colorado
FAX: 303 - �96 -,463 Raymond Munoz & Associates, INC
Project Sponsor: Y
Address:
Tel: 303 -329 -5380
Fax: 303 - 329 -2296
Mortgage Amount Calculation
Net Operating lncome: $ 362,021
Mortgage Amortization: 40
Initial Put: 40
Pass Thru Rate: 5.650%
W,IP: 0.256 °k
issuer t
Net Relending Rate:
Debt Service Constant:
Coverage Factor:
Projected Mortgage Amount
Mortgage AmounIJUnft:
Annual Mortgage Payment:
Monthly Mortgage Payment:
l`
0 -juu /C
6.700%
0.07483
110%
S 3,669,300
S 39.035
S 274,55-1
S 22,880
Sources and Uses of Fund
Sources
CHFA Insured Loan
$
3,669,300
HOME Mortgage State
$
600,000
HOME Mortgage City
S
340,000
Owner Equity_
$
4,849
7 CJIUi.ai r�.:C..CIfJW ,v'Jlt.
$
Required LOCs
S
r1
137,282
Total
S
5,770,396
Uses
Construction Costs
Carrying /Fin Costs
Development Costs
LOCs
Acquisition Costs
Total
S 4,461,728
S 352,407
S 588,979
S 137,282
S 230,000
S 5,770,396