Q&A about New Brookhill www.NewBrookhill.com What is the Current Status of Brookhill Village? 1. How many units are currently occupied? 2. Approx. how many residents live there now in total? 3. Approx. how many residents are children? 4. How big is Brookhill Village? 5. Where is Brookhill Village? 6. How long is the new Ground Lease? 7. Deadline for action with current financing 8. Deadline in US Attorney Settlement Agreement 9. Can the current buildings remain on the site?
142 279 86 37 acres South End (S. Tryon & Remount Rd.) October 31, 2049 Summer 2020 ASAP No
What is the plan for New Brookhill? New Brookhill is planned as 324 apartment units in 3-story flats and townhomes developed with market rate amenities on roughly 16 acres of the current Brookhill Village site. Of these, half (162) will be affordable, including 65 units at 30% AMI, 40 at 60% AMI and 57 at 80% AMI. How long will these units be “affordable�? These units will be affordable for a minimum of 27 years, until the ground lease expires Oct 31, 2049. The HTF RFP calls for a minimum of 20 years of affordability. What about the current tenants at Brookhill? Current Brookhill Village tenants will have first priority to apply. There will be units available for all current tenants who qualify and who wish to live in New Brookhill. What are the requests for public investment from the City and LISC in New Brookhill? New Brookhill, LLC is requesting a $2,999,268 loan from the City of Charlotte. The requested terms are: 17 years, deferred at a 1% interest rate and repaid based upon available cash flow. New Brookhill, LLC is also requesting $10,000,000 in preferred equity/mezzanine debt from CHOIF. The funding will be used to pay for the development and construction costs of 324 units of mixedincome housing in New Brookhill, located on a portion of the existing Brookhill Village site. The HTF and CHOIF funds will be utilized in combination with a construction loan, a traditional first mortgage via a CRE-Finance Commitment, a deferred development fee, and a developer contribution. New Brookhill has partnered with Inlivian (local housing authority) to provide (65) Project Based Vouchers which will assist low income families who are at or below 30% AMI. A financing summary chart is below.
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Source
Type of Financing Loan Preferred Equity/Loan Loan Loan
Amount
Private Financing $47M LISC Charlotte Housing Opportunity Investment Fund (CHOIF)** $10M City of Charlotte Housing Trust Fund (HTF)** $2.9M Developer Equity - Deferred Developer Fee $1.9M Developer contribution land value $22.1M Total $84M **Both the HTF and CHOIF loans will be re-paid 100% under the proposed financing terms for the project. Why doesn’t New Brookhill use LIHTC Tax Credit equity? We tried! The details of the Federal Tax law have requirements for the issuance of tax credits that the underlying ground lease cannot meet. What happens if LISC and the City of Charlotte DO approve public investment? With public support, the path forward for New Brookhill as a true testament to Charlotte’s commitment to affordable housing is clear and doable. The project timeline calls for near-immediate start of permitting and construction with plans to move the first residents into New Brookhill in the Summer of 2021. A phased construction plan will help ensure that current residents are not displaced from the Brookhill Village site during development. With public support, New Brookhill offers a path forward for working families instead of a push out. What happens if LISC and the City of Charlotte DO NOT approve public investment? Without public support, multiple financial and legal forces and deadlines will drive market rate development at New Brookhill. In this undesirable scenario, the current Brookhill Village residents will need to find alternative housing quickly. The question isn’t whether Brookhill Village will get re-developed and New Brookhill will get built, but rather… who will live there? The Developer is doing all it can to help. The final decision is up to LISC and the City. Will it be Opportunity Seized or Opportunity Lost? Are there going to be handicapped accessible units? Yes, there will be 16 designated handicapped units along with another 52 first floor units that will be adaptable for future handicapped accessibility. What is the status of the ground lease? BLLV has signed an agreement with New Brookhill, LLC to for the ground lease for the proposed development. Brookhill Land Lease Ventures LLC (BLLV) negotiated a new lease with Brookhill Land, LLC (property owner) and removed the legal obstacles by getting agreements with ALL prior parties resulting in dismissal of ALL state and Federal actions, including the US Attorney. New Brookhill Q&A
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What does the US Attorney Settlement Agreement require? The Settlement Agreement with the US Attorney’s Office requires BLLV to “take commercially reasonable actions”, “subject to procurement of public GAP funding and other necessary development financing and approvals for the Project” (New Brookhill). Independent of the approval of New Brookhill the Settlement Agreement further requires BLLV to “Demolish the substandard housing units currently located on the Property as soon as practicable.” Can this project wait until later? No. The financing for Brookhill Village as well as the U.S. Attorney Settlement Agreement require a decision as to how to move forward quickly. What experience does the development team have to build this project? Led by Tom Hendrickson and Pat Garrett, the New Brookhill team has the qualifications, experience, skills and talents to create a renewed, vibrant community on the Brookhill Village site. •
As a non-practicing attorney, Tom Hendrickson has a successful track record of creating and implementing large-scale projects, including: starting a bank (North State Bank with +/$900MM in assets); launching the re-development of Raleigh’s Glenwood South district; starting, running for 10 years and selling to a public company a civil and environmental engineering company; assembly, visioning, pre-development and entitlement work for a 1,000+ acre, $100,000,000+MM mixed-use sustainable design development project; acquisition, renovations, financing and ownership of a 163-unit apartment project in New Bern.
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Pat Garrett has decades of affordable housing experience as President of CharlotteMecklenburg Housing Partnership, Inc (CMHP) and is a recognized leader in affordable housing. Under her leadership CMHP revitalized numerous neighborhoods and produced over 2,000 affordable housing units and was responsible for the redevelopment of the Double Oak Community, now known as Bright Walk.
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Natasha Fowler has managed over $160MM in assets and over 13 years of asset and project management experience involving over 3,000 units.
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Shook Kelley is leading the planning, architecture and design efforts. At the forefront from day one of the South End redevelopment efforts, they have produced over 3,000 multifamily units across the country.
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Cole Jenest & Stone is leading the civil engineering efforts for the redevelopment of Brookhill Village.
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WeaverCooke is a trusted construction partner who has built over 12,750 units of affordable housing in North Carolina.
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Jeff Brown/Moore & VanAllen is lead development and entitlement counsel, with years of Charlotte experience.
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S.L. Nussbaum will add New Brookhill to their existing 26,262 units under management across the Southeast.
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Stanley Watkins, Tracy Russ, Alvin Jacobs, Ricky Fisher and Bobbie Fisher are key advisors for New Brookhill.
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