SUBJECT: APPROVAL
OF INCREASE IN INCOME LIMIT FOR HOUSEHOLDS TO RECEIVE CITY LOAN ASSISTANCE IN
THE CRESCENT PARC (FORMERLY MIDTOWN TOWNHOUSE) OWNERSHIP HOUSING PROJECT
COUNCIL DISTRICT: 6
It is recommended that the City Council adopt a resolution approving increasing the income limit from 110% to 120% of Area Median Income (AMI) for households to receive City second-mortgage assistance in the Crescent Parc (formerly Midtown Townhouse) project, located on the north side of Auzerais Avenue, between Meridian Avenue and Race Street.
BACKGROUND
On June 30, 1998, the City Council approved business terms for an acquisition and construction loan of $2,330,000 to Green Valley Corporation, a partner in the Midtown Housing partnership, for the 62-unit Midtown Townhouse ownership housing project, affordable to moderate income households, located on the north side of Auzerais Avenue, between Meridian and Race Street. The Council, at that time, also approved business terms for second mortgages for up to 31 qualified moderate-income homebuyers to be funded from $1,400,000 of the developer’s repayment on the City’s $2,330,000 project loan.
Construction of the first phase of this ownership project is nearing completion, and will be previewed by eligible public school teachers on May 31.
The previous report to the City Council of June 10, 1998 indicated an income limit of 110% of AMI for those homebuyers who would receive City second mortgage loan assistance. Subsequently, the City approved a 120% of AMI limit for the Teacher Homebuyer Program and for the Sienna Court Homeownership Housing Project that the same developer completed last fall. The recommended increase will enable a broader range of first-time homebuyers to qualify for City financing to purchase units in the Crescent Parc project.
LEGAL IMPLICATIONS
30-year affordability restrictions, containing the City’s equity-sharing provisions, will remain on the affordable units receiving second-mortgage financing from the City.
The preparation of this report has been coordinated with the Office of the City Attorney.
The proposed change involves no additional costs to the City.
COMMUNITY OUTREACH
None.
LESLYE CORSIGLIA
Acting Director of Housing