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HomeMy WebLinkAbout~Master - Approving selection of a Partner Developer in connection with Low-Income Housing Tax Credit (LIHTC) Proposals for multi-family housing Development in the Baker Subdivision (321 State Avenue) RESOLUTION NO. 23-100 RESOLUTION APPROVING SELECTION OF A PARTNER DEVELOPER IN CONNECTION WITH LOW-INCOME HOUSING TAX CREDIT (LIHTC) PROPOSALS FOR MULTI-FAMILY HOUSING DEVELOPMENT IN THE BAKER SUBDIVISION (321 STATE AVENUE) FOR THE CITY OF AMES,IOWA WHEREAS, at its November 22nd, 2022, City Council meeting, the City Council reviewed only one proposal for a 4% LIHTC 36-unit affordable housing project on the City's 2.78-acre site within the Baker Subdivision(Attachment A Location Map). The City Council declined to accept this proposal. This decision was due to the fact that the Commonwealth Companies' proposal exceeded the City's budget capacity for the project.As a result,the City Council provided direction for staff to prepare a new Request for Proposals (RFP) for a 9% LIHTC housing project to secure additional financial resources for the development of affordable family housing on the site; and, WHEREAS, the City Council, at its December 13th, 2022, meeting, approved revisions to the RFP, and staff proceeded with the solicitation process in which proposals were due by January 17th, 2023; and, WHEREAS, the City received two proposals in response to the RFP, the Commonwealth Companies and Hatch Development Group. An evaluation committee assessed the responsiveness of both proposals to the RFP in relationship to the RFP criteria as outlined below. The evaluation criteria were based on the developer's capability and track record, housing variety, percentage of affordable housing, feasibility (proforma, etc.), cost and viability, property management experience,project design, use of geothermal, project timeline, and potential IFA score; and, WHEREAS, Hatch Development Group is an Iowa-based affordable housing developer with experience receiving LITHC awards in multiple cities across Iowa. The proposed project includes 38 units; and, WHEREAS, of the 38-unit total, all units will be a mix of units affordable to households that do not exceed between 50% and 60% of the Average Median Income (AMI) for Ames. Additionally, as part of the LIHTC requirements the proposal rents will be limited to 40%of AMI. Additionally, a certain percent of the units will still need to meet the City's HOME rent limitations which is to not exceed a maximum income level of 60%AMI; and, WHEREAS, the site design is 100% 2-story townhome style apartments, meaning each unit has an individual walk-up entrance, and there are no dwellings above or below another unit. All the units along Tripp Street include a front door oriented to the street with a porch. The same design is used for units located internal to the site oriented to the parking areas; and, WHEREAS, the architectural design is of a traditional residential appearance using brick at the base level, horizontal siding for the majority of the building facades, and vertically oriented siding as an accent. The units all include a traditional gabled roof design; and, WHEREAS, the current design has the driveway situated on the west side of the site; however,this will need to change during the site review to align with the Latimer Lane intersection on the east side of the site. If this occurs, a row of units will then be placed along the west property line rather than the east property line. The proposal will also require revisions to parking to account for two parking spaces per unit; and, WHEREAS, the applicant projected an IFA score of 48 of 59 points. The developer requested the $1.8 million of City in HOME funds with the land at no cost and will seek to apply for$500,000 of State HOME funds; and, WHEREAS,though there are changes needed to the Hatch proposal, staff recommends and supports the Hatch Development Group proposal concept as best meeting the City's goals for developing affordable family. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that directing staff to work with Hatch Development Group to prepare an agreement to partner on a LIHTC application and development of the site on Lot 27 in the Baker Subdivision located at 321 State Avenue with affordable multi-family housing for the March 141h, 2023, City Council meeting, with the required updated concept plan per staff comments for access and parking, is hereby approved. ADOPTED THIS 28th day of February, 2023. Renee hall, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Junck, Rollins Voting nay: Gartin Absent: None Resolution declared adopted and signed by the Mayor this 28"' day of February, 2023.