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TAO approves $600,000 affordable housing trust fund loan for conversion of motel to 96 units at 40th and Memorial
Summary
Trustees approved a $600,000 TAO Affordable Housing Trust Fund loan to Tulsa 40 First Partners/Tayo to convert and rehabilitate a five-building motel (AVO Apartments) into 96 affordable units; loan terms are interest-free for seven years and the project must maintain affordability for 10 years and be rehab-complete by 2026.
The Tulsa Authority for Economic Opportunity voted unanimously on Aug. 28 to approve a development agreement and an Affordable Housing Trust Fund loan of $600,000 to Tulsa 40 First Partners (the TAO packet identifies the developer as Tayo) to convert a motel into 96 permanently affordable housing units.
Nia (housing staff) told trustees the award follows an RFP that prioritized project readiness and fully affordable projects; she said the developer already has permitting and other funding in place and that the TAO loan will fill a funding gap created by unforeseen life-safety expenses. The funding will be interest-free for seven years and the project will be subject to a 10-year affordability period. Staff said they expect rehabilitation work to be complete by 2026.
Trustees asked for details on the unanticipated expenses and on leasing risks. Nia said the immediate additional costs stemmed from life-safety upgrades, including installation of a sprinkler system where none existed. Several trustees referenced a separate, earlier TAO-funded project in the same corridor (discussed in committee) that faced leasing challenges; staff acknowledged the prior project’s difficulties and distinguished the motel conversion by a different unit mix (studios versus more varied studio/one- and two-bedroom units) and physical context that staff believe improves leasing prospects.
The property is identified in the meeting as AVO Apartments at 8181 East 40 First Street (40 First and Memorial). Staff said the project completed the technical review and the TAO committee review required by the authority’s Affordable Housing Trust Fund policy before the loan recommendation was presented to the full board. The motion to approve the development agreement and loan passed on a roll-call vote with all trustees present voting yes.
