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HomeMy WebLinkAboutHEO Solomon Towers WHSP ApplicationWorkforce Housing Services Program - Request for Proposals FY 2025 *indicates a required field Applicant Information Corporate/Entity Name Housing and Economic Opportunities, Inc. Financial Fiduciary Housing and Economic Opportunities, Inc. Organization Receiving Payment Housing and Economic Opportunities, Inc. Type of Applicant For-Profit Sole Proprietor Applicant Established Date & State November 5, 1998 & North Carolina Organization Principal Name and Title Tyrone Garrett, CEO, City of Wilmington Housing Authority Principal Email Address tgarrett@wha.net Principal Phone Number 910.341.7700 ext 927 Please include the name, phone number, and email address of the person that should receive updates about the status of your proposal. Contact Name Scott Coggins Contact Email Address scott.coggins@ulyssesdevelopment.com Phone Number 617.877.7782 Preferred Contact Method Email In addition to the above, non-profit organizations must provide: • 501(c)3 Determination Letter • List of Board Members with Terms • Organization By-laws • Articles of Incorporation • Current Year Operating Budget • Most Recent Financial Statement, Audit, and Form 990 501(c)3 Determination Letter HEO_501c3 Determination_Tax Exemption Status.pdf List of Board Members with Terms HEO_Commissioners and Terms_07.30.24.pdf Organization By-Laws HEO_Bylaws_04.20.99.pdf Articles of Incorporation HEO_Articles of Incorporation_11.02.98.pdf Current Year Operating Budget WHA_2025_Budget_All Entity Budgets.xlsx Most Recent Financial Statement WHA_Financial Statement_Audited_2022.pdf Most Recent Audit WHA_Financial Statement_Audited_2022_1.pdf Most Recent Form 990 HEO_Taxes_Form 990_03.31.21.pdf Project Summary Project/Program Name Solomon Towers Number of Units/Households to be Assisted 151 Project Location/Address 15 Castle Street, Wilmington, NC 28401 Please upload a location map clearly indicating the project site or program service area. Location Map.pdf Estimated Total Project/Program Cost Approximately $34,000,000 WHSP Funding Requested (Maximum $1.5 Million) $1,500,000 Are you requesting an award in the form of a low- interest loan or a grant? Loan, Grant If requesting a loan, please describe the loan terms/interest rate requested. The Applicant is seeking a subordinate loan with a term that is co-terminus (or longer) than the term of the Applicant's senior debt, with an interest rate of 1% (or lower) and a balloon payment at the end of the proposed loan term. Project Type Conversion/rehabilitation of existing residential and non- residential structure(s) for affordable single-family or multifamily housing units for sale or rent Project Narrative Project Timeline The Applicant anticipates that it will close on the proposed 4% low income housing tax credit transaction of Solomon Towers, a 151 units of public housing for seniors, including all the closing of all financing and the finalization of the HUD RAD conversion, by October 1, 2025. The in-place rehabilitation of the property will commence immediately after closing and substantial completion of construction is anticipated 12 month thereafter in October 2026. Strategic Goals Addressed Improving Housing Stock Describe how your project will address the strategic goal(s) listed above. Solomon Towers was built in the early 1970s and while well maintained by WHA is in need of an extensive rehabilitation to assure it continues to provide high-quality affordable housing for seniors in the local community. By rehabilitating this property, we provide local seniors the opportunity to age in place, remain connected to their community and reside within close proximity to family and friends. Many of these family and friends are essential members of the community’s workforce and by providing local housing for seniors, these family and friends have the opportunity to continue to work locally while at the same time remaining closely connected to their aging loved ones. Presumptive Eligibility Presumption 1 Explain how your project/program meets the selected presumption. a) The Applicant’s proposed redevelopment of Solomon Tower will be financed through a 4% LIHTC transaction involving a HUD RAD conversion transitioning the property’s 151 units from public housing to units supported by Section 8 rental assistance. Immediate Impact Describe how the project supports allocation of funds by December 31, 2024 and disbursement of funds by December 31, 2026 Both the timing of the allocation and disbursement of funds coincides nicely with the Applicant’s proposed project timeline. An award of funds prior to year end 2024 would close the current, anticipated funding gap, allow the Applicant to present this award to its lender(s) and investor(s) as it closes the proposed LIHTC transaction in the fall of 2025. The Applicant would then plan to use the requested loan proceeds to fund construction during the end of 2025 through the 3Q2026 with full disbursement will in advance of December 31, 2026. Describe how the project will quickly deploy units to market and break ground by July 2025 The Applicant’s proposed project involves the acquisition and rehabilitation of an existing project and thus no deployment of units or groundbreaking is involved; however, an award of funding would allow the Applicant to move forward with its plan to extensively renovate an aging public housing project for seniors, developer a more robust rehabilitation scope and, equally as important, communicate to existing residents that material upgrades to their homes are planned. Strategic Priorities Addressed Mixture of Price Points and AMI Describe the household/unit mix expected to be served by the program/project. 100% of the property’s units will be set aside for seniors at or below 60% of AMI. Period of Affordability Will the units be preserved in affordability for at least 20 years? How many years beyond the minimum 20 years? As part of its proposed LIHTC transaction, the Applicant will execute a deed restriction with the North Carolina Housing Finance Agency that will preserve the affordability noted above for a period of 30 years or more. Describe how you will ensure compliance with the affordability requirement once the project is completed. As a LIHTC project with project-based Section 8 rental assistance, the Applicant and the property will be subject to robust compliance and reporting requirements. The Applicant has prior experience owner, operating and managing properties with LIHTC and HUD compliance and reporting requirements and, as such, maintains the requisite staff and expertise to ensure affordability is maintained per all requirements. Acceptance of Housing Choice Vouchers Will your project accept Housing Choice Vouchers? 100% of the property’s 151 units will be supported under a project-based Section 8 contract and, as such, residents would be provided with rental assistance upon leasing a unit. Site/Eligibility Criteria • Evidence of appropriate zoning for proposed project, if applicable • Technical Review Committee approval including preliminary plat or site plan approval, if applicable • Evidence the site is not impacted by environmental problems such as a brownfield and flood hazard, if applicable Evidence of appropriate zoning Site Eligibility.pdf Technical Review Committee approval Site Eligibility_2.pdf Evidence that site is not impacted by environmental problems Site Eligibility_3.pdf Describe how WHSP funding will expand existing programs and/or projects, if applicable. The WHSP funding will support an extensive rehabilitation of Solomon Towers and assure the property continues to provide high-quality affordable housing for seniors in the local community. Tell us if the project is supported by any other New Hanover County grant, funding, or contribution. At this time, the Applicant has neither applied for nor received any other grant, funding or contribution from New Hanover County. How will you fund/develop your project/program if If the Applicant is unsuccessful in securing an award of WHSP funds, it will continue to seek other funding sources to fill the current, anticipated funding gap. The Applicant is committed to the success of this project and will continue your proposal is not approved for funding? to seek other funding sources for which it would be eligible and which support the project’s mission. Describe how your policies and procedures give access to housing for residents with credit challenges or those who may have been involved in the justice system (or upload to the right, if applicable). a) The Applicant’s proposed redevelopment of Solomon Towers and securing project-based Section 8 rental assistance for the project will allow the Applicant to provide high-quality affordable housing to seniors of modest means, on fixed income and/or who may be credit challenged for a variety of reasons, including reasons associated with the justice system. The Applicant understands that the importance of housing for local seniors and will make every effort to be inclusive with both its leasing efforts and requirements. Fair Housing policies/procedures Final-Board-Approved-ACOP-Public-Version-9-4-18.pdf Tell us how your proposal supports New Hanover County's commitment to equity and inclusion. a) By its very nature, the Applicant’s proposed redevelopment of a seniors public housing development is a commitment to equity and inclusion as it supports the rights of low-income seniors to reside in a high-quality housing in their local community. Describe how your development will comply with the Federal Fair Housing Act. a) As a LIHTC project with project-based Section 8 rental assistance that will be owned, operated and managed by an affiliate of the WHA, the project will continue to remain compliant with the Federal Fair Housing Act and this compliance will be maintained via a robust compliance and reporting system. Additional Information Project Budget/Pro Forma (must be the spreadsheet provided) NH County WHP_Solomon Towers_Construction Budget Template_Submission 1.xlsx Resume of staff who will manage the project. HEO Mangement and Maintenance, LLC_Resume_2024.pdf Three examples of past experience, including project title, description, number of units/households assisted, project year, and location. WHA_Dawson Lofts_Project Description.pdf Letters of support from other funding sources. Solomon Towers - Enteprise Application Support Letter.pdf Additional Uploads WHA_Robert R. Taylor Senior Homes_Project Description.pdf Additional Uploads PGIM LOI - Solomon Towers_7.31.2024.pdf Additional Uploads WHA_The Pointe at Taylor Estates_Project Description.pdf