TO: Chair and Housing Authority Commissioners
THROUGH: Steve Powers, Executive Director
FROM: Andrew Wilch, Administrator
SUBJECT:
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Low income housing tax credits for the development of Yaquina Hall and rehabilitation of Southfair Apartments
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall the Housing Authority Commission adopt Resolution No. 2238 authorizing the Executive Director to apply for and accept 4% Low Income Housing Tax Credits (LIHTC) application to the Oregon Housing and Community Services (OHCS) for funding of the Yaquina Hall Development / Southfair Rehabilitation bundle, and to solicit interested investors for the project?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2238 authorizing the Executive Director to apply for and accept 4% LIHTC application to OHCS for the funding of Yaquina Hall Development / Southfair Rehabilitation, and to solicit interested investors for the project.
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SUMMARY AND BACKGROUND:
Affordable housing in Salem is a community need. The Salem Housing Authority (SHA) is working on several new affordable housing projects.
Yaquina Hall and Southfair Apartments will combine to add 40 rehabilitated units (existing units) as well as 54 new affordable units (new construction) in Salem.
Low Income Housing Tax Credits are the primary funding source for renovating older housing and fostering new development. For the construction project to proceed, the SHA needs to submit a LIHTC application to Oregon Housing and Community Services.
FACTS AND FINDINGS:
The LIHTC is a federal program administered by state governments, and the largest affordable housing program in the country. Investors buy tax credits and pay into a low income housing project fund to undertake renovation and/or new construction.
If SHA is successful in receiving an allocation of LIHTC, SHA will sell the SHA property to a 30-year partnership. The SHA will own .01% and the private investor will own 99.99%. SHA will complete construction and be the day-to-day manager. After year 15, the investor may withdraw from the partnership and SHA can purchase the property at terms set in the initial partnership agreement
Andrew Wilch
Administrator
Attachments:
1. Resolution 2238