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HomeMy WebLinkAboutR-1993-011 Housing / Rental• • • RESOLUTION NO. R-93 _� 1 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to file an application with the State of Washington Department of Community Development for funding Rental Rehabilitation Program. WHEREAS, the City of Yakima contemplates a Rental Rehabilitation Program for which funding is available from the State of Washington Department of Community Development, and WHEREAS, the Cny Council of the City of Yakima deems it to be in the best interest 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 of 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. 1993 ADOPTED BY THE CITY COUNCIL this \ C- day of $MA4' ATI EST City Clerk Mayor City of Yakima Office of Housing and Neighborhood Conservation TigaiiwA Rental Rehabilitation Program Pre- Application 112 South 8th Street Yakima, WA 98901 (509) 575-6101 February, 1993 EOUAL NOOSING OPPORTUNITY WASHINGTON STATE HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PRE -APPLICATION City Of Yakima Applicant: Office of Housing and Neighborhood Conservation Address: 112 Smith Rth Street Yakima. Washington Telephone: (509) 575-6101 Tax I.D. #: 91-6001293 Type of Applicant: Project Category: Property Status: Contact. Address: Check here if McKinney Check here if LIHTC PROGRAM/HOME PROGRAM Dixie Kracht. Block Grant Manager 112 South 8th Street Yakima. Washington 98901 Telephone: Project Name: Local Government Public Housing Authority Nonprofit Organization Tribal Housing Organization Rental Housing Owner -Occupied Homeless Shelter Other (describe) Privately Owned Publicly Owned Vacant Structure Vacant Property X (509) 575-6101 Rental Rehahilitatinn X Acquisition Rehabilitation New Construction Project Location/Address: Project Target Area. East of 16th Avenue, within City Limits Target Population Income Level: Number of Units: 10 35 Special Needs Population: Very low income At or below 80% of Median At or below 50% of Median At or below 30%© of Median No income Other (describe) Total Units X Legislative District: Length of Commitment to Serve Target Population: Proposed Project HAP/AHP/HOME Other State Federal Local Public Applicant Private Total Approva Signature Name Budget: $ 500,000 $ 0 $ 0 $ 0 $ 50,000 $ 500.000 $ 1,050,000 Total ��-tho�ized R.A. Zais 30 Years 14 Proposed Funding Sources & Programs: 1. 2. 3. 4 5. 6. Offical: 93-1689311 Page 1 of 4 Title Date City Manager c/cpa /93 • • • • Describe your project, detailing the use of, and need for, HTF dollars. Please be as specific as possible with regard to housing and service needs, necessity of state funding and projected cost determinants. 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 80% of the federal median income limits with a minimum of 35 units reserved for very low income families. 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 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. ONHC 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 80% 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 65 rental units at an approximate cost of $15,000 per unit. This program will encourage the partnership between public and private markets outlined in the federal regulations accompanying the HOME funding resources. The encouragement of private market rehabilitation rental units serves the long term purpose of maintenance and administration that burdens the nonprofit sector Provide the projected schedule for your project's implementation, includ- ing funding commitments, construction schedule, and projected comple- tion date. Date Activity April 1993 May 1993 June thru December 1993 State contract signed. Notification to investors for loan applications. Three loans packaged (10 units) each month. Loan approval in 30 days with construction taking a maximum 90 days. Page 2 of 4 HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM • Sources and Uses Statement • • Fund Sources: Committed Conditional Proposed State H'1'1- Program $ N/A $ N/A $ Other State $ $ $ $ $ $ $ $ $ Federal $ $ $ Local Government $ $ $ Applicant $ $ 50,000 $ Private $ 500,00 $ $ Subtotals $ 500,00 $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- Servtces * $ 40,000 Operating Support $ -0- Other $ -0- TOTAL PROJECT COST: $ 1,050,000 * Please explain with detail the uses, terms and conditons of conditional commitments. Page 3 of 4 WASHINGTON STATE • HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/BOMIPROGRAM Housing Operating Budget Name of Project:: Rental Rehabilitation (Non Applicable) Residential Income Unit Type/Number/Rent x 12 Gross Potenti .1 Income Less Vacancy Rate,_( %) Other Revenue (Describe) E 11. Operating Expenses • Insurance Heat Electnc Water and Sewer Garbage Removal Repairs Maintenance Replacement Reserve Operating Reserve Management Services Other Total Operating Costs Real Estate Taxes Net Operating Income I Debt Service ( % on for years) Cash Flow Per Year Year 1 Year 5 Year 10 Please attach a page of assumptions which support the budget. Page 4 of 4