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TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: January 6, 2014
SUBJECT:
A Resolution Approving a Memorandum of Agreement Between the Aurora Housing Authority, the City Of Aurora and Brinshore Development LLC for Scattered Site Housing Development in the City Of Aurora.
PURPOSE:
This report requests a Resolution (presented below) authorizing the approval of an attached Memorandum of Agreement (MOA)(Attachment "A") between the City, Aurora Housing Authority, and Brinshore Development LLC to expand a currently contemplated 40-unit scattered site acquisition/rehabilitation/rental development concept for workforce housing to potentially cover a second phase of development between 2015-2017.
BACKGROUND:
In March of 2013, the City began substantive discussions with the Aurora Housing Authority (AHA) and Brinshore Development LLC regarding replacement units for the Jericho Circle housing site. Given the remote location of the previous Jericho Circle project, and the lack of amenities (banks, shopping, post offices, medical services, schools, etc.) the City favored a scattered site replacement model that both integrated the 146 workforce housing lost with the demolition at Jericho Circle into the City's existing housing stock, and also assisted to tackle the City's still prevalent foreclosure problem with 2,385 housing units in some stage of foreclosure and 1,160 abandoned properties as of November of 2013.
The parties mutually agreed on an acquisition/rehabilitation/rental strategy that received an award of $8 million in federal workforce housing tax credits in Fall of 2013 for the development of the first 40 homes. The current phase will have Boreas LLC (a subsidiary of Brinshore) purchase 40 vacant homes, substantially rehabilitate them, and manage and rent them as workforce housing for a period of 30 years. Staff is currently seeking approval from the City Council to fund $525,000 in City ...
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