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HomeMy WebLinkAboutECHDA18-007 Spring Creek Tax LettersEAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY 500 Broadway P.D. Box 850 COO Eagle, Colorado 81631 Phone: (970) 328-8773 Fax: (970) 328-8787 EAGLE COUNTY Housing Mr. Gerry Flynn Polar Star Properties 28 Second Street, Ste 215 Edwards, CO 81632 Dear Mr. Flynn: KIM BELL AMLLIAMS Executive Director March 27, 2018 Thank you for your interest in partnering with the Eagle County Housing & Development Authority (ECHDA) as a special limited partner on your future Spring Creek Apartments affordable rental housing project located in Gypsum, Colorado. ECHDA supports your effort to create new affordable housing for the residents of Gypsum and the County. We understand that a special limited partnership with the ECHDA would allow this project to become eligible for exemption from property taxes per State statute in proportion to the percentage of the project that is for occupancy by persons of low income, thereby reducing ongoing operating costs and allowing for successful long-term operation. We understand you are seeking a 15 -year property tax exemption associated with phase 1 of the project (150 LIHTC units; 135 units at 60% AMI and 15 at 80%AMI). A tax exemption has also been requested for phase 2 of the project (132 market rate units with rents at or below 80%AMI), the term of which is still subject to negotiation. We have offered our partnership to other affordable housing developers in Eagle County for similar purposes. We believe this project is appropriate for a special limited partnership with the ECHDA because the rental rates for the housing units are capped at a range of 60-80%AMI, which would be of benefit to persons of low income. The proposed tax exemptions are subject to approval each year by the Eagle County Assessor and may be subject to change based on State law. We understand you are in the application process with CHFA for a Ll HTC partnership, and that projects are chosen based on the project's community benefit and level of affordability. Please contact me to discuss the application and approval process in more detail. Once the project is selected for the Ll HTC partnership, the ECHDA will draft the special limited partnership agreement. Please contact me with any questions. We look forward to partnering in bringing additional affordable and attainable housing to Eagle County's residents. ECHDAI 8-007 incerely,. L-X�- y Kathy Chandler -Henry Chair EAGLE COUNTY HOUSING AND KIM BELL WILLIAMS DEVELOPMENT AUTHORITY Executive Director 500 Broadway P.D. Box 850 COO Eagle, Colorado 81631 Phone: (970) 328-8773 Fax: (970) 328-8787 EAGLE COUNTY Housing March 27, 2018 Ms. Meghen Brown Tax Credit Officer CHFA 1981 Blake St. Denver, CO 80202 Re: Spring Creek Apartments LIHTC Project Subordinate Financing Letter Dear Ms. Brown: The Eagle County Housing & Development Authority (ECHDA) intends to commit $500,000 of subordinate financing to Spring Creek Apartments. The funds will be paid into the project at pay- down of the construction loan and conversion to the permanent financing. The specific term and rate of this note will be negotiated during the financial closing process and will be acceptable to the tax credit investor. ECHDA anticipates a term of 15 years and a rate of 3.00%, to be paid from project cash flow. incerel�- , s o Kathy Chandler -Henry Chair