Saturday, March 01, 2014

Grand Court Residences' $200,000 Loan from City

City Council approved an endorsement of Grand Court Residences, a low income housing project across from Sam's Club on Sherwood Way.  City staff said at the time that Council was merely showing its support, nothing else.  That changed with last week's Development Corporation meeting, which approved a $200,000 loan at 3% interest to the project's developers.

How many council members were aware of this next step when they made their vote?  It not only seems pertinent for council, the public would benefit from city leaders painting a bigger picture.


Jim Turner said...

If this is a loan, not a grant, that must be paid back with interest (3%?) then it probably is consistent with the affordable housing options approved by the voters as part of the 1/2cent sales tax. This is much more of a benefit to the city and citizens than some of the other SADC projects out there. That is, of course, if the loan does get paid back.

Living Life Now said...

If I read everything right, here's my take on this:

1) Another 80 rental units that will qualify for HUD's Housing Choice Voucher Program encouraging more people to get and/or stay on welfare and why not. This project also includes full perimeter fencing, controlled access gates, furnished clubhouse, fitness room, activity room, pool and a gazebo.

2) developer pays $6000/year (3% annum) for 5 years for the use of our $200,000 as leverage for federal tax credits (9% HTC),

3) we loose our city's first-time home buyers program for 5 years and maybe forever,

4) while our money is in the developer's bank account, they are earning interest/dividends on our money at more than 3% annum,

5) after 5 years and with a smile, developer thanks us and returns our $200,000,

6) after 5 years, we now have who knows how many more families in San Angelo dependent on our federal governemt's welfare program.

Jim, did I get it right?