Planning Commission Minutes 2015 01 08

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Planning Commission Meeting Minutes January 8, 2015 Page 9 of 23 Authority. It is an investment vehicle that provides private equity into an affordable housing project. Currently, a portion of our project is pursuing a State Low Income Housing Tax Credit for 120 units of affordable housing on this site. The 121 unit project is expected to cost approximately $36 million, so the project will be requesting approximately $1.8 million in annual allocation which equals approximately $10.5 million in total tax credit allocation over the statutory six year period. It is about $8.8 million in present value. The total cost of the project is about $36 million; the present value is $8.8 million. Total annual allocation is $1,736,000 with an estimated allocation of $10 million. The Low Income Tax Credit is one mechanism that BCHA use to leverage private equity into the project. We can borrow less, have a lower mortgage, and spend more money on the actual project itself. Schedule: BCHA is working aggressively with City Staff because they want to finance this project by applying for low income tax credits as well as State Disaster Relief Funds by February to May 2015. BCHA wants to start infrastructure in summer 2015, and try to begin construction in the third or fourth quarter of 2015. Commission Questions of Applicant: Moline asks at what point does BCHA make decisions about how many units will be affordable and how many will not be? Boyd answers the best solution by using Low Income Tax Credits if 100% are affordable homes. The goal to make all of the units affordable to residents earning 60% of the area median income or below. Both senior designated property as well as family (non -senior). Brauneis asks about Housing Authority ongoing role in the management of the property. Boyd answers projects are built for the long term view. Properties are not built and then sold. Boulder County will be invested and sign a 30-40 year lease agreement that restricts the property with funders. There is self -management with case managers who provide resident services. There is facility management as well as wraparound services for clients. Brauneis asks if there will be managers living on -site? Boyd says property managers do not live on site but are there during regular business hours. There is evening financial counseling and some after school programs. There is interaction with different staff and groups whether seniors or families. Tengler asks about her opinion of the fiscal analysis. Do you agree with those numbers? Boyd says she does not expect the project to come in positive. The value of providing affordable housing and what can be done for a family is not reflected in the fiscal model. One tool to provide affordable housing with the lowest rent possible but building the highest quality is to request an exception from property tax. The use tax and property tax are not showing up in the model. BCHA does not have to request it, but it helps to keep operating costs low so they can provide service and a well maintained building. The Arts Underground is a 501(c)(3) and is a local business that will be expanding and it is exempt from property tax. BCHA has had two well -attended community meetings where affordable housing is needed for seniors as well as people earning 30% of the area median income which is $80,000 for a two -person household. BCHA will be borrowing "real' debt at a local bank which generate costs not accounted for in the fiscal model. Tengler asks about the senior housing and what its characteristics are. Boyd says senior housing is not skilled nursing. They are independent seniors, typically 55 and older. Some will be two bedroom units with live-in aide. Tengler asks if there will be concierge service to help with emergencies or rides? Boyd says she does not know. Tengler asks what is the anticipated number of senior units and affordable units?