Title
Vote to award Circle Up, LLC (Retreat at Pittsboro) $32,373.82, and After School, LLC (Siler School Square) $28,906.50 as an Affordable Housing Support grants.
Abstract
Introduction & Background: Siler School Square and the Retreat at Pittsboro are income-restricted apartments for households earning between 30-60% Area Median Income (AMI) through the 9% Low Income Housing Tax Credit (LIHTC) program, a federal program administered by the NC Housing Finance Agency. Both LIHTC developments are Third Wave Housing projects under their respective LLCs, and both developments have Land Use Restriction Agreement (LURA) which are recorded on the properties that restrict their use to housing, which can only be leased to tenants who have incomes less than 60% of AMI for 30 years.
For the Retreat at Pittsboro, which is a 48-unit development, the NC Housing Finance Agency, who controls the LURA, has also required a more constricting restriction that 25% of the units have to be leased to tenants with incomes which don't exceed their 30% of AMI.
With respect to Siler School Square, which is a 44-unit development, the North Carolina Housing Agency, has also required a more constricting restriction that 36% of the units have to be leased to tenants with incomes that do not exceed their 30% of AMI levels and an additional 13% of the units must be leased to tenants with incomes which don't exceed their 50% of AMI levels.
Siler School Square came online in the fall of 2020. Owing to construction cost overruns and additional operating expenses associated with the development, the Affordable Housing Advisory Committee (AHAC) recommended approval to the Board of Commissioners for an Affordable Housing Support grant to After School, LLC in April of 2022. The grant amount was determined by calculating the difference between the total tax liability of the improved property and subtracting out the unimproved tax liability, which was approximately $7,000. The Board of Commi...
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