Item Title: Job’s Journey Affordable Apartments Contract Approval
Specific Action Requested:
That the Board of Commissioners approves a loan of $400,000 in County CIP funds to Passage Home for the development of Job’s Journey Apartments. The award is contingent upon Passage Home securing funds from all funding sources and receiving all necessary approvals from the City of Raleigh to develop the property.
Passage Home, a nonprofit affordable housing developer in partnership with the Healing Place of Wake County, Inc., a nonprofit service provider for homeless men with substance addictions plans to build Job’s Journey. This is a 12-unit apartment complex for the men graduating from the Healing Place. It will be located at the corner of Garner Road and Wilson Road in unincorporated Wake County. Passage Home will serve as the owner and property manager for the apartments and the Healing Place will provide services to the tenants.
All of the units will be affordable to individuals earning less than 30% of the median family income (MFI) ($19,950 for a single person). The monthly rent will be $500, with 2 men sharing each apartment and paying $250 each for rent. One unit will be set-aside for a resident manager, and one unit will be used as a community center.
Passage Home is requesting $400,000 in County CIP funds for Job’s Journey. The funds will be repaid to Wake County over 25 years at an interest rate of 0%. Funds will be for permanent financing and will only be provided once all other funding sources are committed. No funds will be used for operating expenses.
The US Department of Housing and Urban Development (HUD) has committed a $400,000 grant in Continuum of Care funds for the development of Job’s Journey, and a $91,618 grant for two years of support services for the tenants. Although HUD funds for services are limited, the Healing Place will sign a memorandum of understanding with Passage Home to provide support services to Job’s Journey tenants for 30 years.
Passage Home has applied to the North Carolina Housing Finance Agency (NCHFA) for a loan of $394,165 to cover the remaining development costs. Wake County will hold first lien position. The Housing Committee of the Human Services Board recommended funding for this development on May 19, 2005.
The development of Job’s Journey will increase the number of units available to very low-income persons. Persons at this income level are a top priority for the County’s Housing and Community Revitalization program because there are few safe, decent housing options for them in Wake County. The need for additional housing units for this population is also identified in the 10-Year Plan to End Homelessness.
1. Location map