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Board approves $18 million in bonds and pilot agreements for Eastwood Manor rehab
Summary
The board approved final bond issuance documents for Eastwood Manor Apartments totaling up to $18 million, and approved associated pilot and payment-in-lieu agreements; developer said the $8.1 million rehab will be 100% Section 8 and includes new systems and community upgrades.
The Health, Educational and Housing Facilities Board approved a resolution authorizing the issuance of multifamily housing revenue bonds in an aggregate principal amount not to exceed $18,000,000 for Eastwood Manor Apartments and separately approved a pilot agreement and a payment-in-lieu-of-taxes (PILOT) transaction for the project.
Deedra Burrows of AAMCI Development told the board the Eastwood Manor rehab will include security systems, roofs, a gazebo and pergola, renovated community and laundry facilities, new flooring, plumbing and electrical updates and new PTAC HVAC units. Burrows said the project is an elderly community of 98 units (30 efficiencies, 54 one-bedroom and 14 two-bedroom units) and that the rehab hard cost averages $82,000 per unit for a total hard-cost rehabilitation of roughly $8,100,000.
Jay Moneyhund, bond counsel with Bass Creek & Sims, said the board had approved a preliminary resolution earlier in the year and that the project had secured the bond and tax credit award from THDA. He described the current vote as final approval of the bond issuance documents.
Board discussion clarified that the Eastwood project is "100% Section 8," as Burrows stated on the record. The board then voted to approve the bond documents, the pilot agreement under the city's affordable housing pilot program and the payment-in-lieu transaction; each motion was approved by voice vote with no recorded opposition.
Why it matters: The package combines tax-exempt bond financing, THDA tax-credit layering and a city pilot incentive to support rehabilitation of an elderly, deeply subsidized property. City staff noted the pilot’s documents can include extended affordability requirements; in this case the city staff said pilot program documents require affordability restrictions to be recorded for a minimum of 30 years even where other program restrictions might expire after 15 years.
Burrows and counsel also emphasized the property's ongoing management: AAMCI Management — an affiliate management company with experience managing Section 8 communities since 1972, she said — will provide on-site management and maintenance.
The motions were recorded as moved and seconded and approved by voice vote; the meeting transcript does not record a numeric roll-call tally.
