TO: Chair and Housing Authority Commissioners
THROUGH: Krishna Namburi, Interim Executive Director
FROM: Nicole Utz, Director of Housing
SUBJECT:
title
Agreement to become General Manager of Fruitland Meadows LLC, for the purpose of facilitating the development of 166 affordable housing units within the Salem community.
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Welcome and Livable Neighborhoods
end
SUMMARY:
summary
Executing this agreement will allow one hundred sixty-six (166) mixed income rental units to be rented to persons or families at or below eighty percent (80%) of area median income.
end
ISSUE:
Shall the Housing Authority Board of Commissioners adopt Resolution No. 2317 (Attachment 1) to authorize the Executive Director of Housing Authority or designee to execute an agreement to become the General Manager of Fruitland Meadows LLC, for the purpose of enabling a 166-unit project to provide affordable housing in the Salem, Oregon area?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2317 (Attachment 1) to authorize the Executive Director of the Salem Housing Authority or designee to execute an agreement to become the General Manager of Fruitland Meadows LLC, for the purpose of enabling a 166-unit project to provide affordable housing in the Salem, Oregon area.
body
FACTS AND FINDINGS:
Fruitland Meadows LLC (Company), together with Green Light LLC (Manager), approached the Salem Housing Authority (SHA) requesting assistance with General Manager duties of the Fruitland Meadow Apartments.
Substantive terms of the General Manager Agreement (Attachment 2):
• The agreement will be in effect for a period of ten (10) years, and thereafter so long as the Agreement is in full force;
• 168-unit apartment (including two (2) manager’s units, rental units shall be rented as follows: a total not less than 166 residential units, to be rented at rents affordable to persons or families at or below eighty percent (80%) of area median income;
• Salem Housing Authority (SHA) shall receive $25,200 per year for services rendered by, or available from, the General Manager;
• The Partnership will indemnify SHA from any good faith action SHA takes in its role as General Manager;
• SHA will have no day-to-day obligations, and my only be asked to provide advice and assistance at the request of the Partnership;
• SHA has the right to inspect Partnership records, including rent rolls, and leasing data compliance.
If SHA becomes the General Manager for the property, the property will be eligible for tax exempt status, offsetting the loss of tax credit and reduced revenue from the affordable units.
The Commission’s approval will allow the Executive Director of the Salem Housing Authority or designee the ability to make changes to the agreement that do not affect the substance of the agreement to ensure the Project will be able to proceed in a timely manner.
BACKGROUND:
Fruitland Meadows LLC (Company) has been formed for the purpose of acquiring a parcel of real property located at 5192 Caplinger Road SE, Salem, Oregon, upon which is located a 168-unit apartment project. Green Light LLC with be the manager of the Company with responsibility to rent the 166 Affordable Units.
Nicole Utz
Director of Housing
Attachments:
1. Resolution No. 2317
2. Housing Authority General Manager Agreement