Burnet Place affordable rentals win $1.9 loan package

Cincinnati City Council has passed unanimously two ordinances that will allow Burnet Place Limited Partnership (Model Management) to preserve 62 low-income housing units and create over 8,000 square feet of commercial space.

A 30-year, $1.9 million loan of federal HOME funds will be extended through the City's Rental Rehabilitation Program (RRP) for the $12.5 million Burnet Place Project, which will rehabilitate seven buildings at 353 Rockdale Avenue, 3493-3495 and 3501 Burnet Avenue, 242 and 248 Northern Avenue, and 3642 Alaska Avenue.

Under the funding agreement, the City will hold a second mortgage on the properties and will charge interest on the loan of 3.67 percent.

The City will also receive an annual debt service payment of 30 percent of operating cash beginning in the project's second year.

Units will be rented to households below 60 percent of the area median income (AMI), with 20 percent reserved for those with an income 50 percent below AMI. Eleven of the units will be priced according to U.S. Department of Housing and Urban Development (HUD) Low Rent and High Rent HOME limits.

The second ordinance transfers $470,903 from various HOME project accounts into the RRP project account.

Additional project funding would come from bank loans, Low Income Housing Tax Credits, Ohio Housing Development Assistance Program funds, and developer equity.

The HOME program is HUD's largest block grant to state and local governments, allocating annually approximately $2 billion nationwide.

Previous reading on BC:
Ordinances could help presevre 62 low-income housing units in Avondale (4/22/09)