Title
Approval of a Resolution Committing to Providing Funding in the Form of a Grant for up to $1,325,000 as Local Public Leverage for the Proposed Lansdale Pointe Apartments Project at 911 Burr Rd SE
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution committing to providing funding in the form of a grant for up to $1,325,000 as local public leverage for the proposed Lansdale Pointe Apartments project at 911 Burr Rd SE
Report
Issue:
Whether to approve a resolution committing to providing funding in the form of a grant for up to $1,325,000 as local public leverage for the proposed Lansdale Pointe Apartments project at 911 Burr Rd SE
Staff Contact:
Darian Lightfoot, Director of Housing and Homeless Response, 360.280.8951
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Southport Financial Services has requested local match funding to support their application for the 4% Low-Income Housing Tax Credit (LIHTC) funding through the Washington State Housing Finance Commission. Southport's project (Lansdale Pointe Apartments) will create 162 units of low-income housing at 60% AMI or below. The project is located on Burr Road in Olympia and will house approximately 400 residents. The needed 5% local match for LIHTC funding is $2.65 million.
On January 31st, the Regional Housing Council voted to contribute 50% of the local match ($1.325 million). As proposed to the RHC, the City of Olympia would provide the other 50% of the local match. The City will be using its local Home Fund reserves (not conveyed to the County) to allocate to the project.
The application for LIHTC is due at the end of March. The 4% project criteria are reviewed based on the elements of the projects meeting the program requirements, not based on competition with other projects. Meaning, that because the project plans to meet the AMI threshold and has been awarded the local leverage, the Lansdale Pointe Apartment project has a very high likelihood of receiving the credits. Once awarded, the project will be fully funded and can begin construction. Project completion is set for summer 2025.
Climate Analysis:
Without prompt or requirement, Southport committed to the building installing solar panels and having EV hooks from the start. Once occupied, approximately 400 residents will be using renewable energy as their primary source of consumption. The project also promotes the walkability of the location, highlights bus routes and access to grocery stores, and commits to using stringent energy efficient building standards.
Equity Analysis:
This project will positively impact low-income families. The larger unit sizes, proximity to public transit, and playground, will be a great spot for families to live comfortably, without the fear of drastic rent increases due to the 60% AMI threshold. Because of the public funding investment, Southport will be required to prove who is residing in the apartments, specifically pertaining to income levels, and strictly follow all Housing Quality Standards. These requirements will help support our fair housing goals and offer stability for Olympia renters.
Neighborhood/Community Interests (if known):
Low-income housing is of high interest to the community. What makes this project unique is the deep affordability of all created units without the need for ongoing operational funding. This multi-family project will be targeted towards families as many of the units are 2, 3, and 4 bedroom, a major need in the community.
Financial Impact:
The City’s Home Fund balance is currently approximately $1.8 million. This is because in the past 4 years, the tax revenue has accrued higher than expected and surpassed the projected Request for Proposals amount released each year. As the future Home Fund revenue will now be diverted to the county-wide Home Fund, the City is proposing to allocate a portion of the balance to Southport Financial Services in order to create 162 units of desperately needed low-income housing.
Options:
1. Approve the resolution committing $1,325,000 as local leverage for the proposed Lansdale Pointe Apartments project.
2. Approve the resolution with amendments committing $1,325,000 as local leverage for the proposed Lansdale Pointe Apartments project.
3. Take no action.
Attachments:
Resolution
Project Proposal
Commitment Letter