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CITY OF SOUTH BEND OFFICE OF THE CLERK He continued, A number of our properties are located in Gary, Indiana. Cedar Glen, like I said, is about one hundred and seventy-nine (179) units. Originally it was constructed in 1952. It has undergone some rehab in recent years, but we are looking to do a lot more after we just acquired a new investor that had turned it around and brought it to a really good place. We are just hoping to build on that success.With that,we are the owner and developer. Construction would be through CRG. The property management is Bradley Company. They have been onboard for a number of years now, about four(4)years, and we are keeping them on board. We really like them.This slide (referencing the presentation) gives a bit more detail on our rehab plan. Like I said, we are going to go with a new roof, replacing a lot of plumbing, returning units that were offline back online, as well as amenity upgrades throughout the property, like building a new clubhouse and a new community room. This (referencing a slide in the presentation) is what all of the units should look like after rehab. They've already done a number of unit upgrades to look pretty good. He went on,These are the rent levels we are targeting.We are actually going to go with the income averaging subsidy through IMCA, it is kind of a new thing they are implementing as part of the new tax code to target families that are above sixty percent (60%) AMI traditional tax credit runners and try to reach up to eighty percent (80%) AMI. It is a mix of one (1) and two (2) bedrooms and then some larger two (2) bedrooms. Right now, we believe we'll keep about one hundred and forty(140) of the one hundred and sixty(160)or so households that are running right now under the rental and income restrictions. Twelve (12) of those households are students and, pending some further verification, may not meet some of the tax guidelines, but we hope to keep a good number of the residents that are there now. Our goal here is to partner with some service providers here in South Bend as well as partnering with the City. We are tentatively setting aside about five(5)units for supportive housing, targeting some service attachment and hopefully some subsidy attachment to that, as well. Merchants Affordable does have experience in supportive housing and so does Bradley Management. That is something we are hoping to do with a lot of our properties. The general timeline starts with hopefully your approval here in May. We are going to have our application submitted to the State by May as well. Hopefully we get underway with construction in October. We hope to finish up by next year and have everything ready to go by December 2020. It is about a$12 million project overall and then we are asking the City of South Bend to issue about $7.3 million tax exempt bonds. Committee Chair Ferlic opened the floor to questions from Committee and Council Members. Committee Chair Ferlic asked, Can you explain the difference between the boards and who makes the determination regarding bonds versus other things the Council may be supporting? In other words, what other different board did you have to go before for, say, the low-income tax credits, etcetera? Mr. Schulte replied, So, we will submit our application to the State Housing Authority. Four percent(4%)tax credits are typically not competitive. There is not enough volume throughout the State for them to allocate or terminate every application that comes in, provided it meets the threshold. So, once we go to the State, it is about a two (2) to three (3) month approval process. Then we should be good to go. Councilmember John Voorde stated,These are the types of bonds that there is no potential liability for the City on, correct? EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W Jefferson BvId South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 2