Minutes 11/24/1998 - Laserfiche WebLink

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NOv~mbe~ ~4, 1998 Purpose and Need: · . Merrifield Estates, Inc., a virginia non-stock, non-profit corporation, proposes to act as a developer to acquire and rehabilitate for continued use as multi-family rental housing the existing 64 unit apartment project located at 4200 Queenswood Drive. The developer will use various provisions of the U. S. Internal Revenue Code, the Code of Virginia, and federal housing law administered by the U. S. Department of Housing and Urban Development to secure project financing. The total loan amount will not exceed $3.5 million. Thirteen of the 64 units, twelve 1-bedroom units and one 2-bedroom unit, will be rent regulated. They will be reserved for persons whose income is 50 percent or less of area median gross income, ~ The developer has stipulated the regulated rents and committed to the minimum market rent~ for the remaining 51 units which are a mix of two and three-bedroom units. See Attachment A. In a project with this type of financing, the Portsmouth Redevelopment and Housing Authority (PRHA) is the lead local agency, However, City Council approval is required. Out of the total project cost, the developer is committed to investing approximately $500,000 in the physical upgrade of the complex, which was originally constructed in the 1971-72 period. Included in the rehabilitation work will be completely redone kitchens (i.e. all new stoves, dishwashers, refrigerators, vinyl flooring, kitchen cabinets and countertops). All windows are being replaced throughout the project. In cooperation with the developer, City and PRHA staffs have reviewed the proposed project. As a result the developer has agreed to incorporate a number of binding conditions, which will help assure the quality and longevity in good condition of the project. These conditions deal with the extent of the rehabilitation of the apartment buildings and the individual units, the inspections process, improvements to the present site plan regarding landscaping and dumpster placement and the minimum rent structure for the 80% of the units that will not be rent- regulated. The developer will be required to post a letter of credit while the apartment corn plex is being rehabilitated to ensure completion of all the conditions. With the incorporation of the binding conditions, staff believes that the reinvestment in the Merrifield Estates Project will benefit present and prospective residents, the surrounding neighborhoods and the larger community. Financial Impact: Neither the City nor PRHA incurs any financial liability for any aspect of the proposed project, it is anticipated that with the increased investment in the apartment complex and the higher rent that the assessment on the project would increase from the present assessment of $1,515,030. Motion by Mr. Pitts, and seconded by Mr. Whitehurst, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION APPROVING ISSUANCE OF MULTI-FAMILY RENTAL HOUSING REVENUE BONDS FOR MERRIFIELD ESTATES, INC.