Attachment A
TERM SHEET for REHABILITATION AND EXTENSION OF AFFORDABILITY
BARNARD PARK VILLAS
Staff Recommendation
Term of Agreement City to ground lease the Property to Partnership (TSA and Current Owner) for 60 Years.
Income Targeting and
Rent Affordability
Affordability covenants to be extended for 60 years to run concurrently with the ground-lease term. The 60 affordable apartments to be restricted to very low-income households (50% AMI) with the affordable rents set per the State redevelopment methodology.
Section 8 ProjectBased VouchersPartnership to apply for Section 8 Project-Based vouchers for all of the affordable apartments. The Section 8 contract will be for an initial 20- year term, and Partnership is required to renew the contract if Section 8 remains available.
Rehabilitation Estimated direct rehabilitation budget of $9 million.
Capital Reserve An initial $120,000 capital reserve to be funded.
Annual Reserve
Deposits
$500 per unit per year
Maintenance
Requirements
Partnership required to maintain the Property per the standards outlined in the Agreement throughout the term.
Social Services Partnership to provide enhanced social services to tenants during the term.
Proposed Financing HUD-insured 221(d)(4) loan and 9% Low Income Housing Tax Credits Upfront Payments:
To City: City to receive a $13 million upfront payment
To Owner: Current Owner to receive a $19 million upfront payment Annual Payments:
To City: $1 ground rent payment plus 35% of annual operating surpluses (Residual Receipts) calculated after Partnership receives a $225,000 per year preferred return. The preferred return ends in Year 15.
To Partnership: Partnership to receive an annual $225,000 preferred return for 15 years. Partnership to receive 65% of the project’s annual operating surpluses calculated after the preferred return.