5a. PILOT Agreement – Joseph Avenue.
Joseph Ave Partners, LP has applied for a PILOT to construct a 140-unit affordable housing complex at 590 Joseph Avenue. Joseph Ave Partners, LP has received an allocation of 4% Low Income Housing Tax Credits (LIHTCs) from the Tennessee Housing Development Agency (THDA). The development will contain 140 residential units consisting of 80 one-bedroom units, 46 two-bedroom units, and 14 three-bedroom units, as well as 2,000 sq ft of commercial or non-profit space. This community will be a part of a larger mixed-income development of 1,150 units of mixed-use and luxury development. Of the 140 units, the average income restriction will be no greater than 60% of area median income (AMI) and 100% of the units will be subject to income and rent restrictions
Staff is recommending approval of a PILOT that would have an initial payment of $43,890 in lieu of property taxes after the project is placed in service. The PILOT would increase by 3% annually over the 10-year life of the agreement. This PILOT payment was based on review of the site’s projected base year taxes, development budget, operating pro forma, and debt obligations. MDHA estimates this to be a tax abatement of approximately $274,890 for the first year the property is placed in service. This would leave MDHA’s annual abatement capacity at $1,237,782.
5b. Approval of Twelve-Month Extension on Randee Rogers Bond Issue.
This item authorizes the Board Chair and Executive Director to sign documents related to the extension of the Randee Rogers Apartments construction financing for a nine-month period with the option of a three-month extension. The documents incorporate a workplan for permanent loan conversion to occur during the extension period.
6a. Award of Project-Based Vouchers: Silverstone Senior living and Joseph Avenue.
MDHA Board approval is being requested for two applications for the award of project-based vouchers. Both are for new construction developments.
The first project is Silverstone Senior Living Villas, located at 2937/2939 Brick Church Pike, Nashville, TN 37207.The plans are for a total of 47 one-bedroom cottage style units, all dedicated to seniors 62 and older. They are requesting 47 PBVs.
The second is Joseph Avenue Partners located at 590 Joseph Ave., Nashville, TN 37207. The plans are for a total of 140 units, comprised of one, two, and three-bedroom units. They are requesting 35 PBVs – 5 one-bedroom, 16 two-bedroom and 14 three-bedroom PBVs.
Published On: July 11, 2023