R-22-XX

A RESOLUTION APPROVING DESIGN AND DEVELOPMENT

COMPONENTS FOR THE LEGACY SOUTH HOUSING VILLAGE,
COMMITTING FUNDS FOR PROJECT INFRASTRUCTURE
IMPROVEMENTS, AND FOR OTHER PURPOSES.

WHEREAS, in 2018, the City completed a robust community visioning process and the
City Commission ultimately adopted a Master Plan on December 3, 2018 for the use of the land
and buildings comprising Legacy Park; and

WHEREAS, the City, in order to fulfill one of the key recommendations of the Master
Plan, wishes to establish affordable housing on the southern portion of Legacy Park (the “South
Housing Village”) as envisioned in the Housing Addendum to the Master Plan (the “Housing
Addendum”); and

WHEREAS, the City and Decatur Housing Authority (DHA) are public entities under
Georgia Law and under the Georgia Constitution, public entities may enter into
intergovernmental agreements to provide services or for the joint or separate use of facilities; and

WHEREAS, the City and the DHA entered into an intergovernmental agreement (IGA)
dated November 15, 2021 for certain pre-development activities (such as planning, design,
financing applications) related to the South Housing Village and for the development,
management and operation of said affordable housing community (the “SHV Project”); and

WHEREAS, the City has acquired from the City of Decatur Public Facilities Authority
the portion of Legacy Park encompassing the South Housing Village to be used for affordable
housing; and

WHEREAS, in accordance with the IGA the DHA has issued housing bonds in an
amount sufficient to finance the cost of acquisition of the project area by the City; and

WHEREAS, DHA will engage its nonprofit subsidiary, Preserving Affordable Housing,
Inc. (“PAH”), as the nonprofit developer to oversee all elements of the development process for
the SHV Project, including but not limited to design, infrastructure, site development and
construction; and

WHEREAS, infrastructure improvements necessary for the SHV Project may include
rights-of-way, roads, stormwater, water and sewer facilities and utility availability (such as
electrical power and broadband), and such infrastructure developments will be funded by the
City or affiliated entities; and

WHEREAS, certain infrastructure improvements may be dedicated to the City upon the
completion of the SHV Project; and
 WHEREAS, DHA will apply for Low Income Housing Tax Credits (“LIHTC”) to the
State of Georgia Department of Community Affairs (“DCA”), which, when awarded, will fund a
portion of DHA’s development of the SHV Project; and

WHEREAS, DHA, City staff and design professionals have hosted a community open
house, conducted an online community survey, and held a public work session to solicit input for
the SHV Project; and

WHEREAS, DHA, with its design professionals, has developed a project design and
development plan consistent with the concept plan from the Housing Addendum; and

WHEREAS, the City Commission’s approval of the project design, a commitment to

fund certain infrastructure improvements and an assurance to preserve the SHV Project’s long-
term affordability are necessary prior to DHA’s submission of a LIHTC application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DECATUR:

Section 1: The City Commission hereby approves the design and development plan
components of the initial LIHTC application. Such approval includes elements of design
(including building type, density, height, scale, mass, aesthetics, connectivity and integration
with the overall Legacy Park property), affordability mix, affordability criteria and construction
phasing schedule as presented by the DHA on April 18, 2022 and attached herein.

Section 2: The City Commission understands that the DHA intends to submit an
application to the DCA for LIHTC to assist in the development of the SHV project. Pursuant to
the IGA, the City wishes to engage the DHA to complete certain infrastructure improvements
and the City will pay for the reasonable cost of the non-utility infrastructure improvements. The
City Commission commits a total of $3,741,251 inclusive of State and Local Fiscal Recovery
Funds (SLFRF) from the City’s approximately $9,600,000 allotment through the American
Rescue Plan Act (ARPA) and other financing sources. The designated funds will be allocated in
the respective amounts of $2,421,250 for the first development phase of the project and
$1,320,001 for the second development phase of the project. The City will provide a
commitment letter memorializing the terms of this grant.

Section 3: Pursuant to the option to lease entered into by the City and the DHA and dated
March 31, 2022, the property upon which the project will be constructed will be ground leased to
the DHA under one or more ground leases corresponding with the development process. The
City will be required by DCA to enter into a Declaration of Land Use Restrictive Covenants
(LURC) for LIHTC which will ensure the long-term affordability of the residential units on the
property; specifically, a period of no more than 30 years. The City, as the lessor of the property,
commits to enter into a LURC as required by DCA to assure long-term affordability of the
residential units, the form and content of such LURC to comport with DCA’s standard
requirements for similar projects and fully comply with applicable Georgia law, as confirmed by
the City Manager in consultation with the City Attorney.

Section 4: The City Commission hereby authorizes the City Manager to execute any
documents relating hereto, and otherwise perform all acts necessary to accomplish the purposes
of this Resolution.

Section 5: This Resolution shall become effective upon adoption.

ADOPTED this 18th day of April, 2022.

_____________________________
Patti Garrett, Mayor
Attest:

__________________________________
Meredith Roark, City Clerk
 R-22-XX ATTACHMENT

Design and Development Components

Village at Legacy | Decatur, GA
April 18, 2022
Design and
Development Plan Project Summary
Components Alignment with Housing Addendum
Site Plan

Preliminary Building Elevations and Perspectives

Garden Apartments
Stacked Flats
Duplex / Town houses

Preliminary Development Plan and Budget

Third-Party Construction Estimate
Infrastructure Costs
Funding Request

Proposed Timeline
Legacy Park
Master Plan
Legacy Park
South Housing
Village Concept
Legacy Park with
Housing Component
 Project Summary
alignment with housing addendum

Project Description:
New construction of 132 affordable units, in two
Phases.

The site plan derives from the recommendations

of the City of Decatur Housing Addendum, with
a mix of building styles in an organic
neighborhood layout.

The site plan provides a large Tree Save area.

A clubhouse, picnic pavilion, a centrally located

green space, and a Community Garden will
provided for residents.
Project Summary
unit mix
Preliminary Elevations
garden apartments (4 buildings)
Preliminary Elevations
stacked flats (4 buildings)
Stacked Flats
Three Stories
Preliminary Elevations
duplexes (4 buildings)
Distribution of 132 Units –
Two Phases at Village at Legacy

Phase I Type Number

One-Bedroom Garden 30
Two-Bedroom Garden 18
Two-Bedroom Townhouse 6
Three-Bedroom Garden 12
66

Phase II Type Number

One-Bedroom Garden 30
Two-Bedroom Garden 24
Three-Bedroom Garden 12
66
 Third Party Construction Estimate
PHASE 1:
BUILDINGS PHASE 1 $12,895,335
SITE: PHASE 1 ON-SITE PUBLIC INFRASTRUCTURE $2,591,017
PARK DRIVE $1,106,872
SITE: PHASE 1 NOT INFRASTRUCTURE $290,091

PHASE I TOTAL $16,883,315

PHASE 2:
BUILDINGS PHASE 2 $13,433,640
SITE: PHASE 2 ON-SITE PUBLIC INFRASTRUCTURE $1,843,649
SITE: PHASE 2 NOT INFRASTRUCTURE $170,726

PHASE 2 TOTAL $15,448,015

PHYSICAL CONSTRUCTION ESTIMATE TOTAL $32,331,330

Phase I Overall Budget
DEVELOPMENT BUDGET COST
PRE-DEVELOPMENT COSTS $40,500
PUBLIC INFRASTRUCTURE (Site work and access road) $3,697,889
STRUCTURES $13,185,426
CONSTRUCTION CONTINGENCY (CC) (5% Min.) $844,166
CONSTRUCTION PERIOD FINANCING $463,835
PROFESSIONAL SERVICES (Architect, Engineer, ADA, Green, Etc) $600,025
LOCAL GOVERNMENT FEES (City and County) $374,228
PERMANENT FINANCING FEES $50,925
DCA-RELATED COSTS $120,913
EQUITY COSTS $200,000
DEVELOPER'S FEE (7.7%) $1,570,000
START-UP AND RESERVES $714,584

TOTAL $21,862,491
Phase II Overall Budget
DEVELOPMENT
COST
BUDGET
PRE-DEVELOPMENT COSTS $21,500
PUBLIC INFRASTRUCTURE (Site work and Access Road) $1,843,649
STRUCTURES $13,604,366
CONSTRUCTION CONTINGENCY (CC) $772,401
CONSTRUCTION PERIOD FINANCING $439,766
PROFESSIONAL SERVICES $507,739
LOCAL GOVERNMENT FEES $356,235
PERMANENT FINANCING FEES $20,603
DCA-RELATED COSTS $126,701
EQUITY COSTS $200,000
DEVELOPER'S FEE $1,570,000
START-UP AND RESERVES $650,246
TOTAL DEVELOPMENT COST (TDC) $20,113,206
Public Infrastructure Costs
Infrastructure for Site
Infrastructure Phase I $2,591,017
Park Drive $1,106,872
Infrastructure Phase II $1,843,649
TOTAL $5,541,538
 Public Infrastructure Proposal
• Infrastructure Need Exceeds City Planned Investment from ARPA
• Proposal - DHA invests in Public Infrastructure and Vertical Construction
• $5,541,538 Infrastructure cost less $3,74125 (City) = $1,800,287 Shortfall
• DHA invests approximately $1,800,287 in Infrastructure and
approximately $1,526,133 in Vertical Construction to make project
feasible.
PERMANENT
FINANCING PROPOSAL
PHASE I
Financing Type Name of Financing Entity Principal Amount ($)

Mortgage A (Lien
Decatur Housing Authority Investment 2,421,250
Position 1)

Local Government City of Decatur Infrastructure Investment 2,421,250

Federal Housing Credit

10,695,000
Equity

State Housing Credit

6,324,991
Equity

Total Permanent
21,862,491
Financing:
PERMANENT
FINANCING PROPOSAL
PHASE I
Financing Type Name of Financing Entity Principal Amount ($)

Mortgage A (Lien
Decatur Housing Authority Investment 2,421,250
Position 1)

Local Government City of Decatur Infrastructure Investment 2,421,250

Federal Housing Credit

10,695,000
Equity

State Housing Credit

6,324,991
Equity

Total Permanent
21,862,491
Financing:
PERMANENT
FINANCING Phase II
Financing Type Name of Financing Entity Principal Amount

Mortgage A (Lien
Decatur Housing Authority Investment 905,170
Position 1)

Local Government City of Decatur 1,320,001

Federal Housing Credit

11,095,119
Equity

State Housing Credit

6,792,930
Equity

Total Permanent
20,113,220
Financing:
 Proposed Timeline
• City Commission Consideration of Financing, Design, and Development Components
• DHA Board Confirmation of Funding and Application
• Phase 1 Application Due to DCA May 20, 2022
• Notifications of Tax Credit Awards November 2022
• Closing April 2023
• Construction 4/2023 to 5/2024
• Occupancy Summer 2024

• Phase II application due May 2023

• Closing April 2024
• Construction 4/2024 to 5/2025
• Occupancy Summer 2025