Fiscal Note
Resolution 16-00897 authorized Affordable Housing funds for Heartland Housing to develop affordable housing units at 1202 S Park Street. Heartland Housing was later notified they were unsuccessful in receiving tax credits for the project. Heartland plans to resubmit the project for tax credits as part of the 2018 award cycle. Holding costs associated with maintaining the property prior to development negatively impacts the viability of the project for Heartland. Under the proposed resolution the City will purchased the property from Heartland for $640,000 utilizing existing funds from the Affordable Housing Fund. The balance of the funding will be reauthorized to the 2018 Capital Budget. If successful in receiving tax credits next year, Heartland will purchase the property back from the City for development.
Title
Authorizing the City’s acquisition of 1202 S. Park Street in order to pursue development with Heartland Housing, Inc. in accordance with RES-16-00897
Body
WHEREAS, on June 7, 2016 (RES-16-00435, Legistar # 42709), the Common Council directed the CDA to draft and issue a request for qualifications (RFQ) for development services associated with the development, operation and financing of housing for homeless adults (Phase III of the City’s permanent supportive housing initiative); and
WHEREAS, on July 19, 2016 (RES-16-00548, Legistar #43550), the Common Council approved the selection of a team comprised of Heartland Housing, Inc., (the “Developer”) to develop and provide property management services for the housing project; and Heartland Health Outreach to provide support services to the residents of that housing; and
WHEREAS, on December 6, 2016 (RES-16-00897), the Common Council approved an award of $1,570,000 to Heartland Housing, Inc. for the development of permanent supportive housing at 1202 S. Park Street (the “Property”), with $1,415,000 contingent of the award of federal Section 42 tax credits; and
WHEREAS, the City executed...
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