Parramore Asset Stabilization Fund Project
Last updated on July 02, 2019
Through a unique public-private partnership, the City of Orlando is furthering its vision to ensure safe, high quality and affordable housing options for all through a partnership with the Parramore Asset Stabilization Fund, LLC (PASF).
Through this initiative and a more than $8 million investment, PASF has purchased 83 different rental units that are being rehabilitated and renovated to ensure they remain affordable housing options for residents in the Parramore community. To support this effort, in February 2019, the city and CRA contributed $750,000 toward renovations of these units.
Improvements are determined based on each property’s needs but may include new roofs, upgrades to heating and cooling systems, new flooring, kitchen and bath renovations, and other energy-efficiency enhancements. The Improvements will vary by unit depending on existing conditions and are expected to be complete by the end of 2019.
Following the purchase of these properties, the PASF assumed current leases at the current lease rates to ensure residents are not displaced and is working with tenants to ensure they remain housed during the renovations.
To ensure these units remain affordable for the residents living there, rental rates will not be increased by more than 2% each year for ten years.
The PASF is comprised of three not for profits: the Central Florida Foundation, the Florida Community Loan Fund and the New Jersey Community Capital.
Improvements may include new roofs, upgrades to heating and cooling systems, new flooring, kitchen and bath renovations, and other energy-efficiency enhancements. The Improvements will vary by unit depending on existing conditions. Improvements to all units are expected to be completed by the end of 2019.
- Rental income requirements – For up to ten years, at least half (42) of the units leased will be reserved for residents making less than 80% of the average area median income (AMI). At no time will any unit be leased to a tenant earning more than 120% of the AMI.
- At the end of the initial ten year period, developer may retain ownership of the properties or may offer properties for sale to the Central Florida Regional Housing Trust. For the next ten years, the properties have the same affordability requirements (at least half the units reserved for residents making less than 80% of AMI and the remaining reserved for residents making 120% of AMI.
- Should the Central Florida Regional Housing Trust choose not to purchase the properties, the city and CRA will have first opportunity to be able to purchase the properties at the appraised fair market value.
- Rent increase requirements - To ensure these residences remain affordable, rental rates shall not be increased more than 2% each year for ten years.