City Approves $500K in Federal Funding to Renovate 20 Parramore Housing Units
$500,000 in federal funding in the form of deferred loans for ten years at a zero percent interest rate was approved by City Council December 9th to be used by the Parramore Asset Stabilization Fund towards the renovation costs of the following properties it recently purchased in Parramore:
8 units at 722 Concord (MAP) ($200,000)
The renovations may include new roofs, upgrades to heating and cooling systems, new flooring, kitchen and bath renovations, and other energy-efficiency enhancements.
These 20 units are among the 83 units on 44 properties that the Parramore Asset Stabilization Fund purchased from former owner Brad Cowherd for $5.18 million.
The goal of the purchase is to keep the units affordable for residents of Parramore for at least 20 years.
The Fund is comprised of three not for profits:
The total input from the Fund towards the project is $8 million. That's made up of equity from all three not for profits, a bank loan, and donor funds.
For the next 20 years, all 83 units will remain affordable housing options for residents in the Parramore community. The way this is achieved is that the rents will remain at the amount they were prior to the properties being purchased by the Fund. Rental rates will not be increased by more than 2% each year for ten years.
For up to ten years, at least half (42) of the units leased will be reserved for residents making less than 80% of the average area median income (AMI). At no time will any unit be leased to a tenant earning more than 120% of the AMI.
At the end of the initial ten year period, the developer may retain ownership of the properties or may offer properties for sale to the Central Florida Regional Housing Trust, a nonprofit launched by the Central Florida Foundation and designed by community leaders including the City of Orlando, Orange County, developers, builders, bankers, nonprofit housing providers, University of Central Florida, Valencia College, and subject matter experts from (the fields of) planning and urban development.
The trust is a land trust. This means that while it sells and rents houses and apartments on its 44 properties, the trust remains the owner of the land beneath them.
According to Mark Brewer, President/CEO of the Central Florida Foundation, there's a 98% chance the properties will be sold to the Central Florida Regional Housing Trust. Once purchased, Brewer says "We've put everything into place so that the cost of living on these properties never goes to market rate."
Should the Central Florida Regional Housing Trust choose not to purchase the properties, the City of Orlando and CRA will have first opportunity to be able to purchase the properties at the appraised fair market value.
The only thing that would make the properties go to market rate is if the fund can't keep the properties, and the City chooses not to buy them, and another non-profit doesn't want them.
For the second ten year period, the properties will have the same affordability requirements as the first ten years: at least half the units reserved for residents making less than 80% of AMI and the remaining reserved for residents making 120% of AMI.
The City of Orlando and CRA also contributed $750,000 in February 2019 toward renovations of these 83 units.