New Brookhill’s Request to Charlotte City Council for City of Charlotte Road and Site Improvement Grant Funding Submitted by Lookout Housing Ventures, Inc. Why New Brookhill?
City of Charlotte Funding Requests
New Brookhill is a proposed 324-unit Apartment Complex developed on almost 16 acres of the current 37-Acre Brookhill Village Apartments site. The existing apartment complex is a Natural Occurring Affordable Housing development that was developed by the Spangler Family in 1951, which included 400+ affordable housing department units. Due to deteriorating conditions over the years at the current apartment complex, the apartments must be demolished ASAP per a Settlement Agreement with the Office of the US Attorney with guidance by CMPD.
Lookout Housing Ventures, Inc, the Developer, is requesting assistance from the City of Charlotte to help finance the proposed 324-unit New Brookhill Apartments. The estimated cost of the project is $64.7 Million. The summary of the project financing is as follows: Project Financing Summary
New Brookhill provides an opportunity to preserve substantial affordable housing on the site through the development of a new apartment community. As proposed, the new 324– unit Mixed-Income Apartment Community will provide 164 affordable housing units. The apartment unit allocation includes 65 units for families earning 30% or less than the Area Median Income (AMI) (Approx. $488 Monthly Rental), 97 units for families earning 60% or less than the AMI. (Approx. $1,066 Monthly Rental), 2 units for families serving 80% 0f AMI (Approx. $1,134 Monthly Rental), and 160 Units at Market Rate (Approx. $1,524 to $2,687 Monthly Rental). Additional amenities on the site will include a Club House, Swimming Pool, Dog Park, and Open Space Areas. New Brookhill represents the last opportunity to create an affordable product along this portion of South Tryon Street due to the rapid growth in the South End Area.
Source Private Financing LISC Charlotte Housing Opportunity Investment Fund City of Charlotte Housing Trust Fund Developer Equity - Deferred Developer Fee City of Charlotte - Road and Site Improvements Total
Type of Financing Loan Loan Loan Loan Grant
Amount 43,000,000 10,000,000 4,500,000 1,900,000 5,335,013 $64,735,013
Private Financing Loan – The Developer has secured letters of interest from lending institutions regarding construction and permanent financing for the project. The $43 Million loan will be paid back under loan amortizations terms for the project. LISC Charlotte Housing Opportunity Investment Fund Loan – The Developer is discussing with the local LISC Office a $10 Million loan that will be paid back under the loan amortization terms for the project. City of Charlotte Housing Trust Fund Loan – The Developer has submitted an application to the Housing Trust Fund for a $4.5 Million loan for consideration in the current funding round. This is a loan that will be paid back under the loan amortization terms for the project. Developer Equity - Deferred Developer Fee – The Developer will provide the project with a $1.9 Million loan. This loan will be paid back under the loan amortization terms for the project. City of Charlotte Road and Site Improvement Grant – The Developer is seeking a $5.34 Million Grant from the City of Charlotte to bring up to standards existing street right-of-ways, and extend required streets for the development, and assist on-site development for the apartments. The Road Improvements are estimated at $2.73 Million for the existing right-ofway and four street extensions. The improvements include curbs and gutters, upgrading to 6-Foot sidewalks, providing street trees, and pavement resurfacing. The Developer’s budget cannot accommodate the increased expenses resulting from site plan review requirements. Request $2.61 Million to assist in On-Site Improvements that include demolition, grading, walking paths, and subsurface infrastructure installation. Again, the Developer’s budget cannot accommodate the increased spending and federal funding would not be timely for project completion, and may not be suitable for use of federal funds.