TO: Mayor and City Council
FROM: Dustin Anderson, Director of Community Development
SUBJECT:
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Approval of Engagement with Hanks Consulting, LLC and Holsten Development Corporation for Services Associated with Modifying Housing Assistance Payments (HAP) Contracts and Rental Rates at Riverwalk Homes.
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BACKGROUND:
Riverwalk Homes LLC owns and operates Riverwalk Homes (Riverwalk). Riverwalk is comprised of seven residential structures and a community center. Riverwalk Homes LLC as an entity made of equal parts Holsten Real Estate Development Corporation and the City of Joliet.
Riverwalk Homes LLC is in the process of a significant redevelopment of their site. This will include the rehabilitation of three of the residential buildings and the demolition of four of the residential buildings.
This work will in part be financed through 4% and 9% Low Income Housing Tax Credits (LIHTC), in part competitively awarded by the Illinois Housing Development Authority.
CONCLUSION:
To accomplish this redevelopment, Riverwalk Homes LLC must be granted approval from the Department of Federal Housing and Urban Development (HUD) to split the existing Housing Assistance Payment (HAP) Contract from one entity to three entities. Each of these entities will be comprised of the same principals as the original. There will be three HAP contracts at the end of this process.
Additionally, because of the redevelopment, Riverwalk Homes is looking to amend the rental rates post-redevelopment. This, too, requires significant coordination with HUD.
Finally, Riverwalk Homes LLC is seeking to shift the responsibility of paying for utilities from the tenant to the owner. The redevelopment will include the installation of qualified sustainable infrastructure that allows Riverwalk Homes LLC to avail themselves to certain tax credits. Once again, coordination with HUD is necessary.
Engaging with Janet Hanks Consulting will allow the redevelopment project to proceed as planned...
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