Title
Resolution to Approve the Sale of City-Owned Property at 1146 South Maple to Avalon, Housing, Inc. for the Development of Affordable Housing (8 Votes Required)
Memorandum
Provided is a Residential Purchase Agreement for Council approval for the City to sell property at 1146 South Maple Road to Avalon Nonprofit Housing Corporation (dba Avalon Housing, Inc), or an affiliated entity, for $260,000.
The City exercised a recorded right of first refusal to acquire this approximately 1.15-acre property containing a single-family house on September 12, 2019, as approved in Council Resolution R-19-299. The property was purchased for $260,000. At the time the City was notified of a possible sale, Avalon Housing, Inc. expressed interest in purchasing the property to expand its adjacent Hickory Way I and II affordable housing developments at 1120 and 1130 South Maple Road. Hickory Way I and II now consists of 70 units of affordable housing which is available to individuals and families whose income does not exceed 60% of area median income, including 43 units restricted to households whose income does not exceed 50% of area median income.
Sale of this property to Avalon Housing, Inc. will enable them to develop at least 14 units of affordable housing on the site. Preliminary conceptual plans include all one-bedroom units and an on-site community space.
Avalon has requested a period of approximately 33 months to complete due diligence, acquire necessary City zoning and site plan approvals, and secure financing for acquisition and construction of the affordable housing prior to completion of the sale. Given the challenges of developing affordable housing, especially securing financing from multiple sources including low-income housing tax credits, this period has been included in the Residential Purchase Agreement, along with two 90-day administrative extensions, if necessary. The Residential Purchase Agreement will also require a deed restriction requiring that the p...
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