Council to discuss zero-interest loan of $34,000 for townhome project

A loan agreement with Apache Junction Villas LLC regarding a 52-unit low-income housing tax credit townhome project at the southeast corner of San Marcos Drive and Tepee Street is to be discussed May 14 and voted on May 15 by the city council.

Both the work session Monday and the meeting Tuesday begin at 7 p.m. and will be held in the council chambers, 300 E. Superstition Blvd. in Apache Junction.

Larry Kirch, Apache Junction director of development services, at a recent Apache Junction City Council meeting. (Photo by Arianna Grainey, Independent Newsmedia)

The council authorized the city’s support in 2017 for a zero-interest loan to Adams Construction for the Apache Junction townhomes project, Larry Kirch, the city’s director of development services, wrote in a memo to the council.

The loan agreement includes a promissory note and related documents that provide a zero-interest loan of $34,000 to Apache Junction Villas LLC, he said.

In order to receive 9 percent federal low-income housing tax credits through the Arizona Department of Housing, projects like this are required to have local government participation, he said in the memo.

“The loan is the most common form for cities such as Apache Junction to provide the local financial support. The loan amount is for $34,000 and is one-half of 1 percent of the total project cost. The term of the loan is 20 years and is backed up by a letter of credit,” Mr. Kirch said.

The project will consist of 26 townhome buildings and 52 total units.

“All the engineering plans and the final plat have been approved by the city. A courtesy review of the building plans have been completed as well. Grading of the site may occur in late May and the project will likely start in early June,” Mr. Kirch said.

The Apache Junction Independent is mailed each month to 35,000 homes.

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