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TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: October 6, 2015
SUBJECT:
A Resolution Approving a Development Agreement for a HOME Program Loan Between the City of Aurora and VeriGreen Development, LLC (DBA Aurora St. Charles Senior Living L.P.) for a Senior Housing Development in the City of Aurora
PURPOSE:
This staff report seeks approval of a Resolution to fund a HOME Development Agreement with Aurora St. Charles Senior Living L.P., LLC for $500,000 in HOME Investment Partnership Act funds to assist in the creation of 60 affordable senior housing units in Aurora. In exchange for its loan proceeds, the City will receive 12 units of housing (six one-bedroom units; six two-bedroom units) to be rented to senior citizens (55 years and older) who earn at-or-below 50% of the area median income. All 12 units will be held as affordable senior rental housing with legal covenants for a period of 30 years.
BACKGROUND:
As an entitlement community, the City of Aurora annually receives $494,000 in HOME funds that are used to provide decent, safe, and sanitary housing for low-to-moderate income persons (defined as earning at-or below- 80% of the Area Median Income, or $48,650 for a family of two in 2015). To support VeriGreen's Aurora St. Charles Senior Living project IHDA Low Income Housing Tax Credit application, the City provided a letter of funding support for the project, pending project financing and readiness. A contribution of up to $500,000 in the form of a loan from a to-be determined City source such as HOME, CDBG, and/or local fee deferrals was identified in the letter. The City's loan would be a non-amortizing loan and would accrue interest at a 1% rate with a 30-year term and without current debt service payments and financing fees. The letter of support was offered due to project's location within the City's NRSA and the revitalization that its use and high visibility could provide to t...
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