HomeMy WebLinkAbout2006-11-28 06-026 ORDERItemn n9 F;i
Date: november 28 200s
Item/Subject: order, Authorizing a Development Agreement with North Side Family Housing
Associates L.P.
Responsible Department: Community and Economic Development
Commentary:
North Side Family Housing Associates L.P. has requested Ory tax increment financing in support of a 28
unit affordable housing project proposed an Griffin Road immediately adjacent to the Airport Mall. North
Side Family Housing Associates L.P. is a for-profit entity created by Perpols C.A.P., Inc. to secure equity
financing from the Low Income Housing Tax Credit Program through the Maine State Housing Authority.
Proposed are 22 two-bedroom and 6 three-bedroom units, including a community center, Six of the units
will be reserved for homeless families. The units will be targeted to families earning up m 60% of the
area median income ($32, WO for a family of 4). Rents will range from $550 to $725 including heat and
hot water. The low -rent affordability period for this type project is 90 years. The current HUD published
Fair Market Rents for these unit are $595 to $766. Actual rents in the hot Bangor rental market right
now are significantly higher for apartments of this quality. parcels C.A.P., Inc., through their affiliated
limited Partnerships, has an excellent track record of developing new affordable housing in Bangor,
Veazle, Wheat Camara, and Searsport. North Side Family Housing Associates Is requesting that $24,500
per year of the projected $49,000 in new property tax revenues generated by the project be retumetl to
the project far 15 years to assist in supporting annual operating expenses, thereby keeping rents
affordable. This parcel proposed for development is currently taxed at $1,460 Per year.
Department Head
Manager's Dements:
This has been reviewed by the Business and Economic Development Committee, which recommends your
approval.
//M
Cry ay
Manager
Associatetl Information:
/1in�.y. fKi
�� Finance Director
%Passage
_ First Reading Page _ of—
Referral
f_Referral
OR 026
Asei�elro Courwilar
Farrington xwem6.v 28. 2005
F CITY OF BANGOR
(TITLE.) Order, Authoreing a Development Agreement with North Side Family Housing
Associates LP.
WHEREAS, North Side Family Housing Associates LP., a Umhed Partnership entity affiliated
with Perniuls C,A,P., Inc., has proposed developing 28 units of affordable housing
on the Griffin Road; and
WHEREAS, the City Council of the City of Bangor acknowledges that Me need for affordable
family housing units In Senior is audal; and
WHEREAS, North Side Family Housing Associate LP, interrds to apply M the Maine State
Housing Authority for low-income housng tax credits and other available programs
to provide the majority of the $5.535 million in debt and equity, funding needed for
the proposed development; and
WHEREAS, the Projected operabrg cost of the Proposed project which include Property tam,
exceed the amount projected W he available from affordable rents; and
WHEREAS, North Side Family Housing Associates is requesting that $24,500 per year of the
projected $49,000 in new property tax revenues generated by the Project has
returned to the Project for 15 years to assist in supporting annual operating
expenses, thereby keeping mne affordable;
NOW, THEREFORE, BE R ORDERED W THE CITY COUNCIL OF THE CAP/ OF BANGOR THAT
Me City Manager H hereby authorized to enter into a Development Agreement with North Side
Firmly Housing Assuctees L.P. In a form that is acceptable to the Director of Community and
Economic Development and the City Solicitor, containing, but not limited to, the following
elements: the gross family income "a tenants shall not exceed 80%m the area median
Income; Me project must remain fully taxable; annual property tam rettrYed from Me project
by the City in an amount not ro exceed $24,500 or 50%of the new property Sam generated
each year, whichever is less, be returned to North Side Family Housing Associates LP to lower
project operating experwes for a period of 15 years following issuance of a certificate of
occupancy by Me City; North Side Family Housing Associates LP. will provide evidence M the
City of other equity financing masterly M complete Me proposed development and an
operating pro forma indicating adequate income and financing to operate and maintain the
project; the Ory§ commitment and development agreement with North Side Family Housing
Associates L.P. shall expire June 30, 2006 or sooner, should North Side Family Housing
Associates not he successful In securing the allocation of low -Income housing our credits from
the Maine grate Horsing Authority, in MSHA!s next round of ampetton, for the tax credits
needed for Me project W be financially feasible.
IN CPP[ COUNCIL
Nov er 28, 20o5
Motion lode and Seconded
fo sage
am CLBPR
y 06-026
O AO E
(TITLT.thaxi¢ivg a Developaent Agreement
K[Lortb Side Tmily Homing Associates L.P.
Aaeignedt C unellor
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