Town of Davidson Approves Grant Allowing CHP to Purchase Oakhill Apartments
Davidson, NC - The Town of Davidson approved a grant that would allow Community Housing Partners (CHP) to purchase Oakhill Apartments and maintain the 72-units as affordable housing.
"We are pretty excited to save the units of affordable housing," Town Manager Leamon Brice said during the town board meeting.
The Davidson Town Board agreed Tuesday to provide a $225,000 grant from the town's affordable housing fund in order for CHP to buy the eight acres on the town's west side near the Ingersoll-Rand Plant for $3.2 million. CHP is required to apply for tax increment financing to renovate it for affordable housing.
The current owners purchased the property for about $1 million in 1985. In May, the town approved an agreement that would have allowed the town to loan $250,000 to CHP. But the deal fell through during the negotiations of a purchase agreement because the bank's appraisal did not match the purchase price. The $225,000 grant will make up the difference, Brice said.
"We were able to reconfigure the deal and make a grant offer," he said.
The funds will be treated as a grant as long as CHP can obtain 9 percent Federal and State Low Income Housing Tax credits from the N.C. Housing Finance Agency in January 2008 and if necessary in January 2009. If CHP doesn't receive tax credits from N.C. Housing Finance Agency, the money will covert to a loan with interest and would go back into the housing fund. According to the agreement, CHP will work Davidson Housing Coalition during the tax credit application process.