Title
Rental Construction Program- $200,000 Due on Sale Loan to Gardenia Gardens, Inc. (B)
This item involves a request for the City Commission to approve a $200,000 due on sale loan to Gardenia Gardens, Inc. to rehabilitate an affordable housing rental project, Gardenia Gardens Apartments to provide decent, safe and affordable rental housing for income eligible tenant households.
Explanation
Gardenia Gardens, Inc. (GGI) is a non-profit 501(C) (3) corporation whose primary activity is the ownership and management of Gardenia Gardens Apartments, a 100-unit affordable housing apartment complex located at 1727 NE 8th Avenue in the Duval Area neighborhood. The apartment complex is a HUD tenant based Section 8 facility and was built around 1968. The property contains 36 (2-bedroom/1 bath) and 64 (3-bedroom/1 bath) dwelling units. In efforts to leverage the rental project and meet certain project thresholds required by the Florida Housing Finance Corporation State HOME Program, GGI is seeking funds from the City to be used toward the local match for the rental project. GGI is proposing to invest $5,424,412 to cover the hard and soft cost associated with renovating the apartment complex. GGI is applying for $4,024,412 State HOME funding from the State of Florida; and has been approved for a $1,200,000 private loan by Mercantile Bank. The City's $200,000 due on sale loan will assist in leveraging the funding gap for the rental project.
In March 2009, GGI submitted an application to apply for Rental Construction Program funds. The application process is competitive and open to interested applicants. Applicants may submit applications for funding consideration at any time for assistance based on funding availability. To date, GGI is the only rental housing application received requesting funding through the City's Rental Construction Program. After reviewing the preliminary project documentation submitted by GGI, staff has determined that the project is eligibl...
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