|
Date
|
July 13,
2009
|
|
|
Agenda
Item No. 38 Roll
Call No. 09- Communication No. 09-482 Submitted by:
Larry Hulse, Director Community Development Department |
|||
AGENDA
HEADING:
Resolution of support for an application to the Iowa Finance Authority requesting low income housing tax credits for the rehabilitation of 60 units of existing low income housing located at 1264 Cummins Road (Southridge Apartments) and resolution of support for an application to the Iowa Finance Authority requesting low income housing tax credits (LIHTC) for the rehabilitation of 72 units of existing low income housing located at 2201 E. Park Avenue (Lancaster Place Apartments).
SYNOPSIS:
The Iowa
Finance Authority (IFA) has reinstituted awarding points for City Council
approval of an LIHTC project. By Roll
Call 08-2162 on December 8, 2008, the City Council approved criteria for review
and support of LIHTC applications. The full text of the City Council’s adopted
criteria is included on Page 3 and 4 of this Communication. The rehabilitation projects at 2201 E.
Park Avenue and 1263 Cummins Road are owned and managed by Dominium Development
& Acquisition, LLC, 2355 Polaris Lane North, Suite 100, Plymouth MN
55447. (David Brierton, Principal) Dominium
has requested a letter of support for the projects and the completion of a
Zoning and Local Contributing Effort Forms.
FISCAL
IMPACT: NONE
Amount: N/A
Funding
Source: N/A
ADDITIONAL
INFORMATION:
Southridge
Apartments 1264 Cummins Road
Developer –Dominium Development &
Acquisition, LLC Principals David
Brierton and Jack Safar, 2355 Polaris Lane North, Suite 100, Plymouth MN
55447. Dominion was formed in 1972 and
is one of the largest apartment development and management companies in the
Midwest. They own over 17,000 apartment
units in 16 states. In addition to
Lancaster and Southridge Apartments in Des Moines, they own 120 units at Fenway
Manor, 1640 East Hull Ave., and 96 units at Sargent Park Apartments at 3604 E.
Douglas.
Project – Rehabilitation of 60 units of
existing low income rental housing
Number
of Units –60
Total Units. All units are 2 bedrooms
Area
Median Gross Income (AMGI) to be served – 60 units at 60% AMGI
Income
Limits for 60% of Area Median Gross Income
1
person household - $28,560
2
person household - $32,640
3
person household - $36,720
4
person household - $40,250
Commitment
to Affordability
– 15 years
Management
Company – Dominium
Management Services, LLC Jon R. Segner, CEO
Dominion University has an in-house “university” in which 25 classes are
taught in the Schools of Management, Marketing and Maintenance. Every employee receives training for competency
for their job and career advancement. In
addition, Dominium’s intranet provides site staff with immediate access to all
policies, procedures and forms.
Tax
Abatement - Dominium will not apply for tax abatement
from the City of Des Moines. Because
LIHTC projects are assessed on income rather than replacement value, Dominium
does not anticipate that the improvements will increase the value of the
property for property tax purposes.
Enterprise
Zone Tax Credit Value - NA
Enterprise
Zone Sales Tax Rebate-
NA
Funding
Request – None
Neighborhood
Review - The
South Park Neighborhood Association sent a letter of support for the
improvement project and rehabilitation.
The Association has requested that Dominium, as the management company, work with the Neighborhood
Based Service Delivery Program and coordinate with Des Moines Police on the
Multi Family Crime Free Housing Program.
Lancaster Place Apartments 2201
E. Park Avenue
Developer –Dominium Development &
Acquisition, LLC Principals David
Brierton and Jack Safar, 2355 Polaris Lane North, Suite 100, Plymouth MN
55447. Dominion was formed in 1972 and
is one of the largest apartment development and management companies in the
Midwest. They own over 17,000 apartment
units in 16 states. In addition to
Lancaster and Southridge Apartments in Des Moines, they own 120 units at Fenway
Manor, 1640 East Hull Ave., and 96 units at Sargent Park Apartments at 3604 E.
Douglas.
Project – Rehabilitation of 72 units of
existing low income rental housing
Number
of Units –72
Total Units. All units are 2 bedrooms
Area
Median Gross Income (AMGI) to be served – 72 units at 60% AMGI
Income
Limits for 60% of Area Median Gross Income
1
person household - $28,560
2
person household - $32,640
3
person household - $36,720
4
person household - $40,250
Commitment
to Affordability
– 15 years
Management
Company – Dominium Management Services, LLC Jon R.
Segner Dominion University is a
in-house “university in which 25 classes are taught in the Schools of
Management, Marketing and Maintenance.
Every employee receives training for competency for their job and career
advancement. In addition, Dominium’s
intranet provides site staff with immediate access to all policies, procedures
and forms.
Tax
Abatement - Dominium will not apply for tax abatement
from the City of Des Moines. Because
LIHTC projects are assessed on income rather than replacement value, Dominium
does not anticipate that the improvements will increase the value of the
property for property tax purposes.
Enterprise
Zone Tax Credit Value - NA
Enterprise
Zone Sales Tax Rebate- NA
Funding
Request – None
Neighborhood
Review - Lancaster Place Apartments are not located
within a recognized neighborhood boundary.
Evaluation of Southridge
Apartments and Lancaster Apartments with City Council Criteria:
The
developer proposes to provide $25,000 per unit in rehabilitation. The scope includes: new hardi-plank siding,
re-roof with 30 year dimensional shingles, new windows, improve the parking
lot, redo the common areas including new carpet, paint & energy-efficient light
fixtures, replace boilers with high efficiency units, new kitchen cabinets and
countertops, new Energy Star Appliances.
These are substantial improvements which should make a difference to the
families living in the units and to the neighborhood appeal.
Criteria
and Process for Review and Support of LIHTC applications
Adopted
by Roll Call 08-2162 on December 8, 2008
Review Process:
Before City Council reviews the projects, the developer should attend a
pre-application meeting with City staff to ensure that the zoning and physical
infrastructure is adequate for the development.
A general neighborhood meeting should be held with a recognized
neighborhood organization with adequate information to allow the neighborhood
to make comments on the project’s ability to address design, management
services and amenities prior to City Council action.
·
Only support projects that contain 100% assisted
units, if they are located near market rate rental or owner-occupied housing to
avoid concentration of assisted units. Within
census tract 51 (downtown) support projects where there is existing or
potential for market rental or owner-occupied housing within a two block radius
of the projects to avoid isolation of assisted housing projects.
·
Support projects that meet the housing needs
identified in the City’s Consolidated Plan, including rental units for families
below 50% of median income and three bedroom or larger units.
·
Support projects that develop on an infill parcel
with connectivity into a neighborhood including a link to schools. Infill is defined as a Brownfield site, a
location that includes demolition of a non historic dilapidated building,
property that has previously been developed, or centrally located site
available for development because of infrastructure improvements. Projects on a commercial corridor should
develop links to neighborhoods or pedestrian areas to gain City Council
support.
·
Support projects for which City Council has entered
into development agreements or has authorized staff to begin negotiation
including sale of land or commitment of funding. Council should support all projects to which
it may support through land contribution, Tax Increment Fund dollars, or
federal allocation dollars.
·
Support projects that certified by LEEDS (Leadership
in Energy and Environmental Design) or other resource sustainable program
and/or utilize energy saving technology such as geothermal heating and cooling.
·
For rehabilitation of existing assisted or market
units, support projects that make substantial external and energy efficient
improvements including the use of brick on the outside, conformance with the
city’s landscape standards and energy efficient heating and cooling systems.
In 1994, the City Council amended the City’s
Comprehensive Plan to institute guidelines for reviewing LIHTC or any other
programs that provide new construction funding for rental housing designed for
persons under 80% of median income. The
overall goal is that affordable housing be spread equally through the community
and not concentrated in any one area of the city. The comprehensive plan also includes the following
criteria to evaluate proposals:
·
The development’s design should be sensitive to and
compatible with the character of the surround neighborhood;
·
The management services must be adequate and
responsive to the needs of low income tenants.
·
Appropriate amenities, including storage facilities
for toys and other large items, are provided, and
·
A recognized neighborhood organization has been
given the opportunity to comment on the project’s design, management services,
and amenities.
PREVIOUS
COUNCIL ACTION(S):
Date:
December 8, 2008
Roll
Call Number: 08-2162
Action:
Adopting
criteria for City Council Review and Support of Low-Income Housing Tax Credit
(LIHTC) Applications. (Council
Communication No. 08-729) Moved by Vlassis to adopt.
Motion Carried 7-0.
Date:
October 27, 2008
Roll
Call Numbers; 08-1900
through 1908
Action:
Applications to Iowa Housing Finance Authority requesting low-income
housing tax credits for the following: (Council
Communication No. 08-650)
Moved by Kiernan to adopt Motions carried 7-0, except 1905 carried 6-0, Council
Member Hensley declares a conflict of interest and abstains from voting.
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
None, unless additional financial assistance is
requested from the City of Des Moines
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,