City plans major funding shift for housing development

In a recent government meeting, officials discussed the repayment plan for a loan utilizing Community Development Block Grant (CDBG) funds over the next seven to eight years. The loan required a 125% collateral, initially secured by the Myrtle Street Apartments. However, following a request from the Redevelopment Authority (RGA), the city reconsidered this arrangement.

City officials met with the economic development team to explore alternative collateral options. Initially, they proposed the Chermont property located at 1596 Holcomb Bridge Road, but the appraisal for this property came in lower than anticipated. As a result, the team suggested a new option: the property at 1355 Woodstock Road.

To proceed, the city plans to initiate a 30-day public comment period to inform residents about the revised Section 108 draft. A final decision on the loan application is expected to be presented at the mayor and city council meeting scheduled for December 9. If approved, the city anticipates a 60-day timeline to receive a funding commitment letter from the Department of Housing and Urban Development (HUD).

Additionally, officials noted that the closing for RJ's tax credit has been postponed to March or April, but they remain confident in meeting the necessary deadlines.