DEPARTMENT: Department of Planning and Community Development
DEPARTMENT HEAD: John M. Dugan
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
An ordinance appropriating FY 2014 in HOME multi-family set aside funds in the form of a loan in the amount not to exceed $600,000 as gap financing for the Merchants Ice Lofts Project.
SUMMARY:
An ordinance appropriating FY 2014 in HOME multi-family set aside funds in the form of a loan in the amount not to exceed $600,000 as gap financing for the Merchants Ice Lofts Project.
BACKGROUND INFORMATION:
Herman & Kittle, Inc (H&K) is proposing an approximately $33 million multi-family housing development located at the vacant and underutilized Merchant's Ice House building at 1305 E. Houston within the ICRIP, Inner City TIRZ (#11), Dignowity Hill Neighborhood Association, and Council District 2. The Project will consist of 262 housing units of which 50% will be affordable and 50% will be market rate. Of the 131 affordable rental units, 125 units will be restricted at 80% of area median income, with the remaining 6 units being HOME restricted units. Four (4) of the HOME units will be restricted at 60% of area median income ("High HOME") and the other 2 HOME units will be restricted at 50% of area median income ("Low HOME").
The San Antonio Housing Trust's Public Facility Corporation (PFC) will serve as co-developer of the Project and as the General Partner of Merchant's Ice Lofts LP. PFC participation provides the Project with a 20-year tax exemption from all ad valorem taxes. It is further anticipated that the City of San Antonio will execute a Center City Housing Incentive Policy (CCHIP) incentive agreement with H&K.
The Department of Planning and Community Development (DPCD) recommended the appropriation of funds to the City's Quality of Life Committee on November 19, 2013. The council sub-committee approved forwarding the appropriation of HOME funds to the Merchant's Ic...
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