Aldermen approve Craven Terrace rehab financing
By Eddie Fitzgerald, Sun Journal, New Bern, N.C. | |
McClatchy-Tribune Information Services |
The bonds would be issued to a private, for-profit entity called
In order to get the tax credits, at least 50 percent of the funding must come from tax-exempt bonds, Rusher said.
"The bond orders, when issued, are not a debt of the Housing Authority and they are not a debt of the city of
There are four levels of financing for the rehabilitation, Rusher said: a HUD program that guarantees the repayment of the mortgage, tax credits, historic housing tax credits, and bonds.
The Housing Authority and limited partner would co-manage the properties, she said.
Mitchell said the RAD program was set up for 40 years, and
Mitchell said 42 units at the back of Craven Terrace are in the flood plain and are slated to be demolished. Any people living in those units would be given vouchers to find other housing, she said.
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Craven Terrace was built between 1941 and 1953 and is functionally obsolete and expensive to renovate, she said.
Marsh said he does not want to see the RAD project negatively affect the city's Choice Neighborhood Planning Grant from getting a multi-million dollar Implementation Grant.
The Housing Authority is finalizing the Craven Terrace plans to submit to HUD along with the loan application. Marsh said initially they were hoping to begin the renovations this fall, but now it is uncertain when work will begin.
A resolution to show approval of the
Odham said the way the resolution is worded, it could be misconstrued because it states the board would provide approval of a multi-family housing facility know as Craven Terrace apartments.
"And I know how the public is and their listening will stop at that point," Odham said, adding the board is not there not to approve the projects, but the bond financing.
Schaible agreed and amended her motion.
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