BY COUNCILOR STAUBER:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to Agreement 20139 with NCLT substantially in the form of that on file in the office of the city clerk as Public Document No. ______________, increasing the amount payable thereunder from $150,000 to $180,000 and payable from Fund 262 020-5434, Project CD06CD-HOUS-2270, said additional funding being received from the 2007 contingency account.
STATEMENT OF PURPOSE: The purpose of this agreement is to increase the amount of the agreement by $30,000 to an amount not to exceed $180,000. NCLT has requested assistance to overcome some challenges in some of the affordable housing and neighborhood revitalization work NCLT has undertaken.
Due to a softening real estate market and recent criminal activity, NCLT has been unable to secure buyers for three of the five affordable single family housing units located on the 2600 Block of West Second Street which were built last year.
Early on, NCLT decided not to realize a developer’s fee or any real estate commissions in the sale of these homes due to the existing challenges of providing homeownership opportunities in this neighborhood. Over the past year, significant carrying costs (taxes, insurance, utilities, maintenance, marketing and construction interest) and tied up construction loans, that cannot be rolled over to create other affordable single family housing, have presented a financial challenge to the continued and ongoing production of affordable housing units for working families.
Additionally, this year, NCLT took on a larger deconstruction/reconstruction project on West Third Street in the Central Hillside neighborhood. NCLT purchased tax forfeited property that consisted of two condemned for demolition buildings that included 11 housing units. The demolition cost of this blighted property, long overdue for demolition, was more costly than anticipated due to asbestos and debris cleanup. This and other increased construction costs have created a gap in funding for the construction of a new affordable, single family housing unit on a conforming lot in the Central Hillside.