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Council signals support for $1 million city loan to Casper Housing Authority to keep 45-unit building affordable
Summary
Councilors discussed a proposal for the city to lend the Casper Housing Authority $1 million at about 4.5% over 25 years so the authority can buy and preserve a 45-unit downtown property whose low-income housing tax credits have matured; staff and housing-authority leaders urged quick action to avoid an out-of-state sale.
City staff and the Casper Housing Authority asked the Casper City Council for direction on a $1 million loan to support the housing authority’s purchase of the Wyoming National Bank building, a 45-unit downtown affordable property whose low-income housing tax credits have matured.
Liz (city staff) described the timeline: the housing authority learned the property was being offered for sale while staff were at a national housing conference and quickly coordinated a local bid to preserve ownership and local management. Liz said the objective is preservation and maintenance of existing affordable housing stock in downtown Casper.
Kim (Casper Housing Authority) described the property’s affordability profile and management approach. She said rents at the property are generally about half the market rate for comparable units and that the authority plans to pursue vouchers (including veteran vouchers) to increase subsidy coverage and maintain affordability. Kim said local ownership and local property management help preserve condition and service levels and avoid the typical deterioration that can occur when properties are owned and managed by distant, out-of-state firms.
Staff proposal: city staff presented a loan term for council consideration — $1,000,000 at 4.5% interest over 25 years — and noted the city would take a first-position mortgage on the property as collateral. Staff said the proposed rate aimed to be competitive with conventional financing but low enough to allow rent preservation.
Why it matters: the housing authority and staff framed the loan as a preservation tool that keeps a downtown affordable complex under local management; staff said a nonlocal purchaser could convert uses or let the property decline because there is no longer a regulatory requirement to keep the property affordable after LIHTC maturity.
Council response and next steps: councilors generally expressed support for helping preserve the property. Staff said more formal loan documentation, appraisal information and mortgage details would be drafted; staff recommended council direction to prepare the loan as the housing authority’s board seeks near-term loan decisions to complete an acquisition.
Unresolved items: staff and the housing authority still need to finalize appraisal, exact purchase pricing and formal loan documents; if council pursues the loan it will be structured with the city taking a first mortgage position and work through normal underwriting steps.
