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| April 26, 2018, City Council Regular Meeting | |
| Title 30. Motion to Adopt Resolution Authorizing Community Housing Services Agency, Inc. to Loan $500,000.00 from the Savannah Affordable Housing Fund to Mercy Housing SouthEast, Inc. | |
| Strategic Priority Neighborhood Revitalization | |
| Description Mercy Housing SouthEast, Inc. (Mercy) has requested that the Community Housing Services Agency, Inc. (CHSA) loan it $500,000 from the Savannah Affordable Housing Fund (SAHF) in support of its 2018 Savannah Gardens Phase VI housing tax credit application. If Mercy’s application is approved, it will result in the development of between 80 and 90 rental dwellings and an investment of about $17 million. A $500,000 SAHF loan will enable Mercy’s application to receive a valuable point in the highly competitive tax credit application process. CHSA is authorized by the City of Savannah to make SAHF loans. CHSA’s Board of Directors has approved the $500,000 SAHF loan contingent upon approval by the Mayor and Aldermen of the City of Savannah. The loan will have a 30-year term; 3% interest rate; annual payments; will be subordinate to primary financing; and will be made only if Mercy Housing’s 2018 Savannah Gardens Phase VI tax credit application is successful. | |
| Recommendation Approval | |
| Contact Martin Fretty, Director, Housing & Neighborhood Services Department, City of Savannah | |
| Financial Impact SAHF loan funds are available for this purpose. The requested loan will help leverage about $16.5 million in tax credit and other financing. | |
| Review Comments | |
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Attachments SG Phase VI Financing Resolution of Support.pdf |
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