Applicant for 250 Elliott NEZ agrees to lower rents; HRD to draft affordability agreement

Craig Jenkins, owner of the proposed rehabilitation at 250 Elliott, told the Budget, Finance & Audit committee that he revised his rent assumptions and will price the planned six units at approximately $1,500 per month.

"I hired my son who is an accountant to do a flow sheet on a lower rent rate of $1,500 a month ... and it still came out profitable," Jenkins told the committee.

Vice Chair Leticia Johnson and staff pressed for assurances that those rents would be implemented if the commission approved a Neighborhood Enterprise Zone (NEZ) certificate. Chekkers Gulak (CPT staff) said affordability covenants are typical for projects with city land or incentives, but not for all private NEZ cases. Rebecca Labov of the Housing and Revitalization Department said HRD can prepare a form addendum or a standalone affordability agreement that can be recorded and run with the property; she said HRD would work with law department counsel to finalize documents.

The committee moved to send line item 6.1 to the formal session with a recommendation to approve and explicitly noted that HRD and the applicant would work to produce the affordability agreement before formal consideration.

What the committee recorded: the project is a historic rehabilitation into six rental units, the owner revised monthly rents to about $1,500 per unit, and HRD agreed to draft an agreement to codify the voluntary affordability commitment for the term of the abatement.

Next steps: HRD and law department will draft and attempt to finalize an affordability agreement with the developer; the NEZ certificate will proceed to formal session with the committee's recommendation.