HomeMy WebLinkAbout2015 15_Tax Credit _ Low Income Senior Housing_2015.08.18OWASSO CITY COUNCIL
RESOLUTION 2015 -15
A RESOLUTION OF THE CITY COUNCIL OF OWASSO, OKLAHOMA
SUPPORTING THE APPLICATION FOR TAX CREDITS FOR A LOW- INCOME
SENIOR HOUSING DEVELOPMENT CALLED LEGACY SENIOR
RESIDENCES.
WHEREAS, Cornerstone Associates, LLC is proposing to construct a 54 -unit housing
development for low- income senior citizens known as Legacy Senior Residences located at the
southwest corner of E 86th St N & N 145th E Ave in the City of Owasso; and,
WHEREAS, the City of Owasso understands and embraces the need for affordable housing
opportunities; and,
WHEREAS, the City of Owasso further sees the need for affordable housing opportunities for
Owasso's growing senior citizen population; and,
WHEREAS, the request submitted by Cornerstone Associates, LLC is consistent with Owasso's
affordable housing strategies and the GrOwasso 2030 Land Use Master Plan.
NOW THEREFORE, BE IT RESOLVED by the City Council of Owasso, that the City of Owasso
supports favorable consideration by the Oklahoma Housing Finance Authority to be given to
Cornerstone Associates, LLC for a tax credit award for the development of Legacy Senior
Residences in the City of Owasso.
APPROVED AND ADOPTED this the 8�-h day of.A2015.
G�tY OF
0 O
ATTEST:
Sherry Bish(ffi, City Clerk
APPROVED AS TO FORM:
.144 Trout Lombardi, City Attorney
i Aoberly, Mayor
The City Wif L imits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Bronce L. Stephenson
Director of Community Development
SUBJECT: Tax - Credit Senior Housing
DATE: August 14, 2015
BACKGROUND:
APPRC)VkED COUNC /`
AU(r 19 2015
During the July and August worksessions, Council discussed at length an application submitted
to the City of Owasso asking for a resolution of support for Tax - Credit Senior Housing Project. The
subject property is located along N 1451h E Ave, just east of Friendship Baptist and across the
street from Hodson Elementary. The letter received from Cornerstone Associates, LLC states that
the applicant is requesting a resolution of support to construct tax - credit senior housing on the
subject property. If approved by the City Council, the requested Resolution would be provided
to the Oklahoma Housing Finance Authority (OHFA) for consideration at their January 2016
meeting.
Please see the attached July 2015 worksession memo for additional project background and
analysis.
ANALYSIS:
The development would include fifty -four (54) units, one and two - bedrooms. All of the proposed
units will be rent and income restricted. The development would be called Legacy Senior
Residences and would have the following amenities:
• Elevators
• On -site management
• Social library
• Common dining area with serving kitchen
• Gated /Secure access
• Garages
• Green space for recreation
The units themselves would have Energy Star appliances, washer and dryer, medical alert
systems, carpet, ceiling fans and more.
The applicant is requesting the resolution of support in advance of the January 2016 deadline.
The Tax - Credit Housing application process would be as follows:
• Resolution of support requested from the local jurisdiction.
• Other documentation and data is collected by the applicant.
• The application and supporting materials are submitted to OHFA and the Authority
makes a decision on each application.
• If the application is successful, the applicant will notify the City and start preparing
development documents (site plans, civil engineering plans, etc.).
Because this project involves multifamily development, the applicant would have to
prepare a PUD document and take the project though the PUD process.
If the PUD is approved, the applicant would prepare construction documents to be
submitted to the City for review and approval.
Once all approvals are given, the work on the property would commence.
The applicant is asking the Council for a Resolution stating the City is in support of this type of
development. If the application submitted by Cornerstone Associates, LCC is approved by
OHFA, the applicant would come back to the City and proceed through the typical
development process. Approval of this Resolution would not give any project approvals, just our
support for the applicant to continue through the OHFA process to see if funding could be
obtained for this development.
RECOMMENDATION:
Staff recommends approval of the Resolution 2015 -15.
ATTACHMENTS:
Resolution - 2015 -15
July 2015 Council Worksession memo
Area Map
Aerial Map
Request Letter from Cornerstone Associates, LLC
nTI ly Wit out limits,
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Bronce L. Stephenson
Director of Community Development
SUBJECT: Tax - Credit Senior Housing
DATE: July 10, 2015
BACKGROUND:
With a goal of improving the housing stock in Oklahoma, The Oklahoma Housing Finance
Agency (OHFA) was created by Executive Order by Governor David Boren in 1975. The Agency
is a non - profit, tax exempt entity, with the State of Oklahoma as the beneficiary of the Trust. In
1976, OHFA opened its doors with 12 district field agents hired to implement a rental assistance
program.
The Affordable Housing Tax Credits (AHTC) Program offsets the high cost of rental housing
construction and rehabilitation and provides affordable rent rates for low- income families. Tax
Credits provide a 10 -year reduction in tax liability for developers who construct or rehabilitate
affordable rental housing, Developers sell Tax Credits to Fortune 500 companies and other
investors. The money obtained from the sale is used to lower financing costs. The end result is
lower rent for families. The AHTC Program can be used for new construction and rehabilitation of
rental housing for those with limited incomes. Tax credits create partnerships between OHFA and
developers who build or rehabilitate affordable apartments or homes.
The purpose of the Oklahoma Affordable Housing Tax Credit (AHTC), also known as Low Income
Housing Tax Credit (LIHTC) Program is to expand the supply of new affordable rental units and
rehabilitate existing rental housing for Qualifying Households by stimulating private investment.
AHTC applications are made through the Oklahoma Housing Finance Authority (OHFA), with
applications being considered in January and July of each year. The money given out to
developers and to those qualifying for assistance is provided federally by the Department of
Housing and Urban Development (HUD).
Shown here are the income limitations on eligibility for Low- Income Housing:
STATE OF OKLAHOMA
Maximum Income and Maximum Rent to Quality Units as Low -income
for the low income Housing Tax Credit Program .2015 Calculations
Effective 03(062015 All rants Include utilities
MEDIAN INCOME LIMITS FOR A GIVEN NUMBER OF PERSONS IN THE FAMILY MAXIMUM RENTS FOR GIVEN 9 BEDROOMS
MSA/COUNTY INCOMF t ➢ I e s e v
TULSA.OK MSA
61,40
21,500
24,600
27,650
30.700
33,200
35,650
38,100
40,550
50%
537
576
691
798
891
(see page l for MSA)
30,100
34,440
38,710
42,980
46,480
49,910
53,340
58,770140
%oi 50%
25,800
29,520
33,180
38,840
39,840
42,]80
45,720
48,660
40/fi0
645
691
829
958
1,069
36,120
41.328
46,452
51 576
55.7]8
59.892
64.008
88.124
140 %of 60%
ANALYSIS:
An application has been submitted to the City of Owasso asking for a resolution of support for
Tax - Credit Senior Housing Project. The subject property is located along N 1451h E Ave, just east
of Friendship Baptist and across the street from Hodson Elementary.
A request for a resolution of support was received from Cornerstone Associates, LLC for the
subject property. They are requesting the resolution of support in advance of the January 2016
deadline. The Tax - Credit Housing application process would be as follows:
• Resolution of support requested from the local jurisdiction.
• Other documentation and data is collected by the applicant.
• The application and supporting materials are submitted to OHFA and the Authority
makes a decision on each application.
• If the application is successful, the applicant will notify us and start preparing
development documents (site plans, civil engineering plans, etc.).
• Because this project involves multifamily development, the applicant would have to
prepare a PUD document and take the project though the PUD process.
• If the PUD is approved, the applicant would prepare construction documents to be
submitted to the City for review and approval.
• Once all approvals are given, the work on the property would commence.
Owasso has a real need for affordable senior housing in the same way that we need any type of
senior housing and general affordable housing. Having a mixture of housing types and having a
City that has housing options for varying socioeconomic backgrounds makes for a complete
community. The City receives calls quite often from seniors and their families looking for housing
opportunities in Owasso and have to be turned away to other communities. Owasso currently
has only two properties that have connections to OHFA or allow OHFA vouchers, Wildwood
Apartments at 1 161 1 E 801h St N and Prairie Village at 12877 E 1 16th St N.
This item will be brought back to the August 10, 2015 Council Worksession for further discussion of
the project specifics, with a vote at the August 17, 2015 meeting on a Resolution of Support.
ATTACHMENTS:
Area Map
Aerial Map
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1- o
CORNERSTONE
Associates, LLC
May 28th, 2015
Ms. Jeri Moberly, Mayor
Owasso City Hall
1 I I N. Main Street
Owasso, OK 74055
RE: Notice of Proposed Application
Dear Mayor Moberly,
Please accept this letter as written notification that Cornerstone Associates, LLC, as Developer, and Legacy - Owasso
Partners, LP, applicant, intend to file an application with the Oklahoma Housing Finance Agency on or before July
3, 2015 for the Second Cycle application process to obtain possible tax credits for the new construction of a senior
apartment development located at East 86th Street North and North 145" East Avenue, Owasso, Oklahoma (map
enclosed).
The proposed affordable development, to be known as Legacy Senior Residences will contain fifty -four (54) one
and two bedroom units, of which 100% will be rent and income restricted at or below 60% of the area median
income (AMI).
The development will consist of a three story building with an elevator. Amenities include on -site management and
maintenance, a social library, common dining area with a serving kitchen, mailboxes located in the central lobby and
secured access entry. The development will include garages, ample off street parking and plenty of green space for
outdoor enjoyment.
Unit amenities will include fully equipped kitchens with Energy Star Rated appliances, full size washer /dryer in
each unit, ceiling fans in each bedroom and living room, full window coverings, wall to wall carpeting and 24 hour
medical alert system.
Cornerstone Associates, LLC welcomes your comments on our proposed intent to develop quality, affordable
housing in the City of Owasso. I have experienced a great deal of support and sincerely request any support you may
offer. Please feel free to contact my office for any additional information.
Sincerely,
c6UXL A
BobbiJo Lucas
President
Enc.
209 S. 19n' St., Suite 100 Omaha, NE 68102 Ph: 402 - 341 -0888 Fax: 402- 341 -2655