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Home My WebLink AboutR-1992-D6169 Housing / State / Rental RehabRESOLUTION NOP 61 6 9 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to file an' :application with the Washington State Department of Community Development for funding for a Rental Rehabilitation Program. WHEREAS, the City of Yakima contemplates a Rental Rehabilitation Program for which funding is available from the Washington State Department of Community Development, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City that an application be filed for funding for the purpose mentioned above, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and directed to execute and file the attached application documents, including all understandings and assurances contained therein, with the Washington State Department of Community Development for funding for the purpose mentioned above; and he further is hereby designated as the official representative of the City to act in connection with that grant request and to provide such additional information as may be required. ADOPTED BY THE CITY COUNCIL this 11 _ day o 1992. ATT?T: a.? City Clerk Mayor Check here if McKinney WASHINGTON STATE Check here if LIHTC HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM PRE -APPLICATION City of Yakima Office of Applicant:Housing and Neighborhood Conservation Contact: Dixie Kracht, Block Grant Manager Address: 112 South 8th Street Address: 112 South 8th Street Yakima, WA 98901 Yakima" WA WW1 Telephone: (509) 575-6101 Telephone: (509) 575-6101 Project Name• Rental Rehabilitation Tax I D #• 91-600129'1 Type of Applicant: Project Category: Property Status: Local Government Public Housing Authority Nonprofit Organization Tribal Housing Organization Rental Housing X Acquisition Owner -Occupied Rehabilitation Homeless Shelter New Construction X Other (describe) Privately Owned X Publicly Owned Vacant Structure Vacant Property Project Location/Address: Target Area: East of 16th Avenue, within City Limits Target Population Income Level: # of Units: At or below 80% of Median At or below 50% of Median No income Other (describe) 60% Median in Total Units Length of Commitment to Serve Target Population: 30 Years Proposed Project Budget: HAP/AHP/HOME $ 500,000 Other State $ -0- Federal $ -0- Local Public $ -0- Applicant $ 50,000 Private $ 500.000 Total $ 1,050,000 Approval of Authorized Offical: Signature Name R.A. Zais, Jr. X Project Legislative District: Special Needs Population: Page 1 (R/R) Title City Manager 4 Date August 4. 1992 • Briefly describe your project, detailing the use of, and need for, HAP/AHP/ HOME dollars. The Rental Rehabilitation Program will offer rehabilitation loans to investors to both improve and/or establish rental units from vacant, abandoned buildings for low-income residents at or below 60% of the federal median income limits. The program will take investor applications for rehabilitation funding requests and calculate the affordability of the project by subtracting operating expenses from predetermined rent structure for determining cash flow. Cash flow will determine loan affordability. The difference between loan affordability and rehabilitation need will determine the subsidy required, but will not exceed 50% of loan amount. Eight private lenders have made a commitment to the program exceeding 1 million dollars and have agreed to lend at 5, 10 or 15 year terms at 1.5 - 2.0 points over prime with no charge for closing costs. The program will assist investors on an established waiting list with the Office of Housing and Neighborhood Conservation (OHNC) and work with owners of vacant„ dilapidated buildings for additional units. OHNC will process, inspect, monitor construction and package the loans for private lenders. Investors will operate and maintain rentals through their tenant selection and management firms. Rents will be established at loan closing to be affordable to families whose income does not exceed 60% of the federal median income guidelines. Annual rent adjustments can be made based on either actual operating increases or median income adjustments. No rent shall exceed the fair market rents, as determined by the Yakima Housing Authority. Agreements will be established to encumber the property for a 30 year time period for affordability of this program. This program will match the requested $500,000 with private financing of $500,000 for a total of $1 million to rehabilitate 50 rental units at an approximate cost of $20,000 per unit. • Provide the projected schedulle for your project's implementation. Dalt Adana November 1992 December :1992 January thru December 1993 Loans pack:aaged January thru May Loans approved February thru July Construction 90 days March thru December State contract signed. Notification to investors for loan application. Three loans packaged (10 units) each month .. Loan approval in 30 days with construction taking a maximum 90 days. Page 2 (R/R) HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM Sources and Uses Statement Fund Sources: Committed Conditional Tentative State HAP/AHP/ $ $ $ 500,000 HOME Program Other State Federal Local Government $ $ $ $ $ $ $ $ $ $ $ $ Applicant Program Income$ $ 50,000 $ 000 Private $ 500' $ $ Subtotals $ 500,000 $ 50,000 $ 500,000 TOTAL PROJECT COST : $ 1,050,000 Uses of Financing: Acquisition $ -0- Pre-Development $ 10,000 New Construction $ -0- Rehabilitation $ 1,000,000 Project Management $ -0- Development Costs $ -0- Services $ 40,000 Operating $ -0- Other $ -0- TOTAL PROJECT COST : $ 1,050,000 Page 3 (R/R) WASHINGTON STATE HOIISING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOMPROGRAM Housing Operating Budget Name of Organization: Residential Thema Unit Type/Number/Rent x 12 Gross Potential Income Less Vacancy Rate ( %) r R Otheevenue (Describe) Effective Gross Income Operating Expensti Insurance Heat Electric Water and Sewer Garbage Removal Repairs Maintenance Replacement Reserve Operating Reserve Management Services Other Total O e rating Costs Real Estate Tani Net O es rating Income Rental Rehabilitation (Non Applicable) Year 1 Year 5 Debt Service ( % on vears) Cash Flow Per Year Page 4 (R/R)