Item 27 - Public Hearing - Approve an Amended and Restated Regulatory Agreement for Garden Court Apartments Rehabilitation Project

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Garden Court Apartments Rehabilitation Project July 16, 2024 Page 3 OHDC and C&C obtaining financing and subsequent approvals by the City's Planning and Building Agency for the rehabilitation work. Staff is also requesting City Council to conduct a Tax Equity and Financial Responsibility Act ("TEFRA") Hearing and adopt a resolution for the issuance of tax- exempt bonds. The proposed rehabilitation project, Amended and Restated Regulatory Agreement, draft relocation plan of existing tenants, and TEFRA Hearing are further described below. Proposed Rehabilitation Project After recording the Regulatory Agreement, OHDC and C&C Development state that they will proceed with their efforts to obtain financing for the rehabilitation. The proposed rehabilitation project is of an occupied four-story multifamily apartment building (Garden Court Apartments) situated on a 1.44-acre site ("Project"). Currently, the property consists of 41 affordable family units and 42 market -rate units, plus one (1) manager's unit. The unit configuration will not be changed and the unit mix will continue to be comprised of 12 one -bedroom units, 12 one -bedroom units with a den, and 60 two -bedroom units. A total of 41 of the 84 units will be affordable to families at 60% AMI and the remaining 42 units will be affordable to families at 80% AMI. The Regulatory Agreement will allow rent increases for current residents in the 40% AMI units, but those residents will be protected from displacement through a rent escalator cap where the rent will not be increased annually by more than five percent (5%) plus the percentage change in Consumer Price Index, or ten percent (10%), whichever is lower, of the rent authorized under OHDC's original agreement with the City. As mentioned, the final rehabilitation plans and commencement of rehabilitation is contingent on future financing and planning approvals. Based on the information from OHDC and C&C, upon completion of the rehabilitation, the existing residential building will have updated architectural design features that will align with the newly constructed Legacy Square project across the street. The community and programming spaces will also undergo modernization to enhance the living experience for residents, bringing it on par with market -rate communities. The rehabilitation plan also includes aesthetic enhancements to the fagade and landscaping to improve the street frontage on all four sides of the building. Additionally, a small dog run area will be incorporated on the ground floor, facing North Spurgeon Street. Access to the parking garage on the ground floor will be facilitated through two parking garage gates, located on French Street and North Spurgeon Street respectively. Tenants will access their assigned parking spaces from within the parking garage. For residents on the three floors of apartments above the parking garage, access to the garage will be provided via elevator or stairs. According to the proposal, the rehabilitation of the Project will occur in four (4) separate phases consisting of 21 units undergoing rehabilitation at one time. Due to the extent of the rehabilitation, these units will need to be vacant during the rehabilitation. The relocation plan of existing tenants is further outlined below. Overall, this Project will establish deed restrictions for 42 new units of affordable