Tuesday, May 17, 2011

Fremont County awarded $480,000 in CDBG funds

Fremont County will receive a grant of $480,000 to purchase factory-built homes for a rental housing development just north of Canon City.

North Park was originally built as a tax-credit rental project in 3 phases, using mobile homes. After the tax credits expired on Phase I, the owner refinanced it with fresh tax credits and replaced all of the mobile homes with factory-built homes on permanent foundations. Phase II’s tax credits recently expired, and fresh tax credits are ready to be applied to replacing those 25 units. Phase III’s original tax credit financing has not expired, but its 8 mobile homes also need to be replaced, and so they are included in this request – but they are not part of the new tax credit or first mortgage loan financing. Those 8 units will be funded by owner’s equity and this grant request. All together, this project will replace 33 units with new single-family rental homes in a mix of 2, 3 & 4 bedrooms; affordable at 30%, 40%, 50% & 60% AMI.

Fremont County will loan the DOH funds to the project’s owner/developer/general partner, Sleeping Indian LLC. The loan will be secured by the property, in second position, at 1% interest for 30 years. Fremont County will assign the loan to the Upper Arkansas Area Development Corporation (UAADC) so that it will receive loan payments and, as program income, will reinvest them in future eligible affordable housing projects.