COUNTY OF ALBEMARLE
Federal Low-Income Housing Tax Credits
Requests to support applications for federal low-income housing tax credits for Treesdale Park and Piedmont Heights
Messrs. Tucker, Elliot, Davis, and White
LEGAL REVIEW: Yes
May 6, 2009
ACTION: X INFORMATION:
Federal Low-Income Housing Tax Credits, administered by the Virginia Housing Development Authority (VHDA), can provide a significant amount of equity financing for affordable rental developments. The credits are allocated by VHDA through a competitive process which is based on a point system that includes project readiness, feasibility, and local support. VHDA is required by the Internal Revenue Code to provide localities with an opportunity to comment on any developments under consideration for tax credits. A County letter of support (Attachment A) provides 50 points to an applicant. A letter that does not provide support or opposition provides 25 points. A letter stating that the development is inconsistent with zoning or land use regulations provides no points.
One of the adopted strategies in the County’s Affordable Housing Policy is to support applications for and the allocation of federal low-income housing tax credits. The County has been notified by VHDA that two applicants have submitted letters of intent to apply for tax credits for developments in Albemarle County.
Goal 1: By June 30, 2010, working in partnership with others, increase affordable housing opportunities for those who work and/or live in Albemarle County.
Provided below is a brief description of two proposed developments in Albemarle County that have notified VHDA of their intent to apply for 2009 Federal Low-Income Housing Tax Credits. All projects are required to restrict the occupancy to households with incomes at or below 60% of the area median income.
Piedmont Heights: Piedmont Heights is a 96-unit rental development proposed by Prestwick Piedmont Heights, LP from Atlanta, GA. The property is located on Old Lynchburg Road across from Azalea Park. The applicant has not contacted the Housing Office and has not provided any information regarding the project. No site plan has been submitted to the County for review. Staff lacks sufficient information to recommend a letter of support for this project at this time.
Treesdale Park: Treesdale Park is a 4-building 88-unit development proposed by Treesdale, LP located on East Rio Road. The Board previously supported the submission of a tax credit application in 2008 by the Albemarle Housing Improvement Program (AHIP) for this project. AHIP did not receive the tax credits. Subsequently, AHIP has executed a joint venture agreement with Treesdale, LLC of Albemarle County owned by William and Richard Park to advance the project.
One means by which a County can provide financial support for a project is by providing a commitment of Housing Choice Vouchers. Last year, the Board approved a resolution to provide up to 21 project-based vouchers to Treesdale Park. Because of a reconfiguration of the buildings, Treesdale Park is now eligible for up to 22 project-based vouchers. Treesdale, LP is now requesting the County to provide a commitment for 22 project-based vouchers. A Resolution supporting Treesdale, LP’s application for tax credits, authorizing the County Executive to sign the Treesdale Park Project Support Letter (Attachment A), and supporting the commitment of up to 22 project-based vouchers that meet specific criteria is attached for the Board’s consideration and adoption (Attachment B).
Treesdale, LP has also requested that the site be certified by the County as a “revitalization area” as defined by VHDA. The site currently consists of two vacant deteriorating structures sitting on approximately six acres of land in one of the County’s designated growth areas. This certification would qualify the project for additional points for purposes of the tax credit application. A Resolution certifying that the Treesdale Park site meets VHDA’s definition of a revitalization area and authorizing the County Executive to sign the Revitalization Area Certification Letter (Attachment D) is included as Attachment C for the Board’s consideration and adoption.
In 2008, AHIP had also received a financial commitment for the Treesdale Park Project in the amount of $246,400 from the Crozet Crossings Housing Trust Fund. The Trustees recently approved extending that commitment to Treesdale, LP pending receipt of 2009 tax credits.
There is no budget impact in providing support for the allocation of federal low-income housing tax credits. The resolution to commit up to twenty-two Housing Choice Vouchers to the proposed Treesdale Park development will not impact the County’s general fund budget as the vouchers are funded by the U.S. Department of Housing and Urban Development (HUD). All commitments of Housing Choice Vouchers to be used with specific projects are conditioned on continued funding from HUD.
Staff recommends that the Board adopt the attached Resolution (Attachment B) supporting Treesdale, LP’s application for tax credits, authorizing the County Executive to sign the Treesdale Park Project Support Letter (Attachment A), and supporting the commitment of up to 22 project-based vouchers that meet specific criteria.
Staff also recommends that the Board adopt the attached Resolution (Attachment C) certifying that the Treesdale Park site meets VHDA’s definition of a revitalization area and authorizing the County Executive to sign the Revitalization Area Certification Letter (Attachment D).
Staff recommends that the Board not support the application for tax credits for Piedmont Heights until additional information is received by staff to evaluate the merits of the project.
A - Locality CEO Certification
B - Resolution for Project-based Vouchers
C - Resolution for Certifying as Revitalization Area
D - Revitalization Area Certification Letter
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