Title
Vote on a request to approve the recommendation of the Chatham County Affordable Housing Advisory Committee to award Wallick Communities a low-interest loan totaling $322,851 from the Article 46 Housing Allocation and Housing Trust Fund for the creation of 72 affordable income restricted units.
Abstract
Action Requested: Approve the AHAC recommendation to award Wallick Communities $322,851 in the form of a low interest loan from the Article 46 Housing allocation.
Introduction & Background:
In 2019 Wallick Communities was selected as a partner to develop a 9% Low-Income Housing Tax Credit Development or LIHTC development on Technology Way in Siler City. Since then, they have not only been an engaged and transparent partner and have also successfully competed for funds from the Housing Trust Fund and scored the highest for two years in a row. Their recommended award in 2021 of $85,000 was approved by the board of commissioners and was conditional on the development being selected for tax credits in August 2021. The project was selected, and since August has worked diligently towards closing and beginning construction. They applied once more for Housing Trust Fund monies in order to account for a market driven shortfall that was becoming increasingly evident. Their original request was for $200,000 and was deferred until more information came available about this foreseeable shortfall caused by unprecedented market conditions. This request was brought forward again for consideration at the April 7, 2022 AHAC meeting.
The shortfall they found is an estimated $1.4 million, but the development team has made several changes to the project's financial models to in the form of deferred development fees, refinancing, interest savings, improved tax credit pricing, and more to bring that shortfall to an estimated $600,000. They came before the Chatham County Affordable Housing Advisory Committee on April 7, 2022, to request that a vote be taken on their $200,000...
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