At their next meeting, the Tallahassee City Commission will vote on a recommendation to provide $600,000 in additional funding for a major public housing project.
The City and the Tallahassee Housing Authority (THA) have created a redevelopment plan for the Orange Avenue public housing complex. The 200-unit apartment complex will be replaced with 390 residential units that will include “public housing, affordable rental housing, and market rate rental housing.”
Approximately $425,625 has been provided to the city by the Community Redevelopment Agency (CRA) for the housing project. This level of support qualifies the project as a Local Government Area of Opportunity (LGAO) project, therefore improving the chances of receiving additional funding from Low Income Housing Tax Credits (LIHTC) that were applied for.
In May, the City applied for $2 million through the CDBG Disaster Recovery program to help with development. The Department of Economic Opportunity (DEO) suggested that funding would be provided, so the city built this expected funding into their model. However, DEO has not funded the grant request and the project now has a funding gap.
The total cost for the housing project is estimated at $22,108,761. If the LIHTC award is received, funding will cover roughly $16,148,385. The balance remaining would be covered by “conventional financing and contributions by THA and the City.” The budget has been revised, with a gap of $600,000.
The City’s contribution would total $1,025,625 if they receive LIHTC funds. It is recommended that the $600,000 be provided by the City Affordable Housing Trust Fund (AHTF). If the city receives the tax credit allocations they’ve applied for, the City can request that the CRA reimburses the AHTF for its contribution.