STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: August 11, 2021
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
Title
Authorize the Investment Partnerships Program (HOME) development loan agreement and security documents in an amount of $2,500,000.00 in HOME Funds with Kiva East, LLC ("Kiva East"), or an affiliate thereof, conditioned upon Kiva East receiving a 2021 9% Housing Tax Credit award for the acquisition and development of a mixed-income affordable multifamily complex located at 4724 and 4806 East Side Avenue - Not to exceed $2,500,000.00 - Financing: HOME Funds
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BACKGROUND
Kiva East submitted a proposal under the City's Notice of Funding Availability (NOFA), issued on August 7, 2020, as amended, to receive gap financing in the form of a cashflow loan to support acquisition and development of affordable housing units located within the City limits. The NOFA was issued by the Department of Housing and Neighborhood Revitalization (Housing) in accordance with the City's Comprehensive Housing Policy (CHP). In addition to NOFA funding, Kiva East also plans to utilize 9% Competitive Low Income Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA) to develop the property.
Housing administers programs to appropriately incentivize private investment for the development of quality, sustainable housing that is affordable to the residents of the City. Specifically, Housing administers the New Construction and Substantial Rehabilitation Program which-where necessary-seeks to provide financial assistance to new developments or substantially rehabilitate existing developments. All projects seeking financial assistance are required to submit a Notice of Intent to apply for financial assistance through the Notice of Funding Availability (NOFA) to Develop Aff...
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