Title
Rental Rehabilitation Grant and City Loan to KBR Investments (NB)
This item involves a request for the City Commission to consider the approval of loan financing for the rehabilitation of a rental housing project to provide affordable housing to very low and low-income tenant households.
Explanation
The Rental Construction Program (RCP) improves the living conditions of very low and low-income families through rehabilitation of substandard rental housing units located within the city limits of the City of Gainesville. In order to receive funding for a project, the owner/developer must follow certain RCP guidelines such as: provide matching funds for the project, rent the units to very low and low-income families, provide annual family income certification information, provide rent levels that are affordable to very low and low-income families as determined by the U.S. Department of Housing and Urban Development (HUD), comply with the Federal Section 8 Housing Quality Standards and City of Gainesville building codes. As with all of the City's housing programs, funding for the RCP is made available to eligible investors on a first-come, first-ready, first-served basis. The RCP is advertised annually and applications are accepted until the funding cycle is determined by the City to be closed.
Mr. Kraus is proposing to renovate an 11-unit apartment building with site improvements (parking lot and fencing) located at 1690-98 NE 16th Avenue. Each unit contains one bedroom and one bathroom. Upon completion, these rental housing units will be leased to very-low and low-income households. The current approved RCP guidelines allows a maximum forgivable grant award of 50% for eligible project costs, not to exceed $7,500 for each one-bedroom unit. In addition, a low interest loan is available for up to 25% of eligible project costs. Upon completion of the repairs, the property will provide decent, safe and affordable rental housing. In an effort to ...
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