TO: Chair and Housing Authority Commissioners
THROUGH: Steve Powers, Executive Director
FROM: Nicole Utz, AIC Administrator
SUBJECT:
title
Transfer of an Oregon Health Authority Loan Award from Salem Housing Authority to Redwood Crossings, LLC.
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Welcoming and Livable Community.
end
ISSUE:
Shall the Salem Housing Authority Commission adopt Resolution No. 2242 transferring an Oregon Health Authority (OHA) loan award of up to $425,000 from the Housing Authority to Redwood Crossings, LLC?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2242 transferring an OHA loan award of up to $425,000 from the Housing Authority to Redwood Crossings, LLC.
body
SUMMARY:
The Housing Authority of the City of Salem (SHA) is the sole member of Redwood Crossings, LLC (Redwood Crossings). Redwood Crossings is a limited liability company formed by SHA to own and maintain the multi-unit affordable housing development at 4107 Fisher Road, NE. OHA has awarded SHA a no interest, forgivable, deferred payment loan of up to $425,000 to develop the property at 4107 Fisher Road. The SHA Commission accepted the award on June 11, 2018 via Resolution No. 2228.
Under OHA rules, Redwood Crossings, as owner of the property, needs to be the recipient of the no interest, forgivable, deferred payment loan from OHA, and therefore, SHA needs to assign its rights and obligations under the award, and Redwood Crossings needs to accept those rights and obligations.
Redwood Crossings will need to agree to the original terms and conditions of the award letter dated September 20, 2018, from the Oregon Health Authority (Attachment 2).
FACTS AND FINDINGS:
This opportunity to access OHA resources to facilitate the build-out up to thirty-five (35) units at 4107 Fisher Road NE, will support the new permanent housing and the clients enrolled in the Homeless Rental Assistance Program (HRAP). The award is structured as follows:
• A 0% deferred payment loan that is forgiven on a pro rata basis for each full year the project is in compliance;
• Housing must continue to serve the target population stipulated for the full 30 years, secured by a Trust Deed;
• The target population for OHA funding is individuals with a Serious and Persistent Mental Illness (SPMI); and
• To secure the award of funds, the awardee shall enter into a Community Development Housing Agreement and the appropriate loan documents.
BACKGROUND:
It is estimated that 95% of HRAP clients have a Serious and Persistent Mental Illness diagnosis. Supportive services and staffing will be provided on-site for residents.
The development is within a mile of education, grocery, and medical facilities, and within walking distance to bus lines via walking and bicycle paths along major roadways. An adjacent vacant site at 4075 Portland Road has also been acquired by SHA and will be used for parking for the property
Nicole Utz
AIC Administrator
Attachments:
1. Resolution No. 2242
2. OHA Award Letter