Vine City Trust Fund Financing
The Community/Housing Development Trust Fund was established in 1989 by the City of Atlanta, the Georgia World Congress Center Authority and Fulton County to support the revitalization of communities adjacent to the Georgia Dome Stadium and the Georgia World Congress Center.
The City of Atlanta designated the Urban Residential Finance Authority (URFA) as the administrator for the Trust Fund. Through the Trust fund, loans in the total amount of $8 million were made to for–profit, non-profit developers and homebuyers to provide for new and rehabilitated rental housing as well as homeownership opportunities.
The repayment dollars for these loans revolves into a program income account and is used to make additional loans for eligible housing development in the Vine City and English Avenue
- Acquisition, construction, or renovation of multifamily and single family housing
- Conversion of an existing property not being used for housing
- For sale housing that sets aside a minimum of 20% of the homes in the development must be marketed and sold to families of two or less not to excess of 100% of AMI and 115% AMI for 3 or more with purchase price less than $252,890 or current 203 FHA limit
- 20% set aside for a population at or below 80% of AMI for rental housing projects. See http://www.huduser.org/portal/datasets/il.html for AMI limits.
- Provide for long-term affordability provisions of 15 years or more for rental; 10 years for single family
Use of Funds:
- Funds used as second mortgage loan (gap financing)
- Funds cannot exceed 50% of the capital stack or $1.5 million
- Will have an interest rate of up to 4%
- Developer must have experience commensurate with scope and size of the project
- Developer must have success in leveraging additional funds
- Developer must have a successful track record of property management and marketing
- Must obtain, through a firm commitment, a secure funding source for the balance of the total costs of the project
- Development must meet sustainability requirements
- The target area for the Trust Fund is the area bounded by Donald Lee Hollowell Parkway on the north; Joseph Lowery Boulevard on the west; Martin Luther King Jr. Drive, Walnut Street and Beckwith Street as extended to Walker Street on the south and Walker Street, Martin Luther King Jr. Drive and Northside Drive on the east.
- See map below. The shaded area is the boundary for the Trust Fund
- NPU Letter