HomeMy WebLinkAbout10547RESOLUTION NO. 10547
A RESOLUTION APPROVING AN AGREEMENT BETWEEN OPPORTUNITY BUILDERS, A NOT -
FOR- PROFIT DEVELOPMENT CORPORATION, AND THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, FOR AFFORDABLE HOUSING DEVELOPMENT, AND AUTHORIZING THE
PRESIDENT OF THE COUNCIL TO EXECUTE THE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement dated October 24 2005 between Opportunity Builders, a Not — For - Profit
Development Corporation, and the City of Pueblo, A Municipal Corporation, ( "the Agreement'), for
the development of affordable housing, a copy of which is attached and incorporated herein,
having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is hereby authorized to approve the adoption of the
resolution, and the City Clerk to attest the same, by and on behalf of the City of Pueblo.
INTRODUCED October 24, 2005
PRESI APPROVED: 1 ;4A Z . • frP
s
BY Jeff Chostner
Councilperson
HIM J ME - -
Background Paper for Proposed
RESOLUTION
AGENDA ITEM #
DATE: OCTOBER 24, 2005
DEPARTMENT: HOUSING AND CITIZEN SERVICES / ADA RIVERA CLARK
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN OPPORTUNITY
BUILDERS, A NOT - FOR - PROFIT DEVELOPMENT CORPORATION AND THE
CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR AFFORDABLE
HOUSING DEVELOPMENT, AND AUTHORIZING THE PRESIDENT OF THE
COUNCIL TO EXECUTE SAME
ISSUE
A resolution approving an Affordable Housing Agreement between Opportunity
Builders, a Not - For - Profit Development Corporation and the City of Pueblo, A
Municipal Corporation, wherein HOME funds in the amount of $500,000 would be
loaned at 3% to Opportunity Builders for the new construction of multi - family
rental units for low- income families.
RECOMMENDATION
Approve the Resolution
BACKGROUND
Opportunity Builders has applied and received Low Income Housing Tax Credits
(LIHTC) from the State of Colorado, for the Project commonly known as The
Village at Pueblo. Opportunity Builders has applied to the Department of
Housing and Citizen Services for $500,000 in HOME funds. Total project costs
are $5,852,174.
The funds are to be used for the construction of 42 units of rental housing;
composed of 14 two- bedroom units and 28 three - bedroom units. Ninety -five
percent of the units are targeted at families /individuals at 50% or below of the
area median income of $18,850. The remaining 5% are targeted at families
earning less than $22,620. Restrictions placed on the project require that the
properties remain affordable for a period of 20 years for the HOME funds and 40
years for the Tax Credit funds.
There are presently 80 families on the waiting list for the apartments. In Phase I
the units were leased in 30 -days.
FINANCIAL IMPACT
The estimated Project cost is $5.8 million. The $500,000 in HOME funds would
be provided as a 3% loan. Payments are deferred for the first five -years and
then principal and interest payments commence in October 2010, in the amount
of $2,108.02, from cash flow. The loan is secured by a deed of trust, which is
subordinate to the primary loan's deed of trust.
The HOME funds are available in the 251 fund.