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Posted: February 07, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF021225-07

Agenda Item Title:

Request from CB Rapid City Housing Limited Partnership to Authorize Mayor and Finance Director to Sign Contract Amendments Reducing the Previously Agreed Upon Number of Low-Income Units from 30 Units to 22 Units at The Radiant Apartment Complex

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
02/12/2025
City Council Hearing Date:
02/18/2025
Petitioner:
CB Rapid City Housing Limited Partnership
Staff Contact:
Michelle Schuelke
Location:
Council Chambers
Agenda Item Summary:
The City of Rapid City granted CommonBond Communities $597,000 in Community Development Block Grant (CDBG) funding, allocated over two fiscal years. The CDBG funding was used to complete the construction of a 42-unit apartment complex, the Radiant, located at 28 Racine Street, Rapid City, SD 57701 (formerly identified as 121 North Lacrosse Street). CommonBond Communities later transferred its contracts with the City to CB Rapid City Housing Limited Partnership, the current owner.

In April 2024, the Community Enrichment Division conducted a monitoring of this project for regulatory, statutory, and contractual compliance, which resulted in two findings and one concern. At the time of the monitoring, 41 units were occupied, and one was reportedly vacant. One finding remains unresolved, which determined that too many units were occupied by households earning more income than allowed.

The contract requires rental units must be 1) occupied by low- and moderate-income households and 2) rental rates income-indexed to those households’ income levels. Due to the open unresolved finding, CB Rapid City Housing Limited Partnership is requesting an amendment to the current contracts. The amendment would reduce the number of low- and moderate-income units from 30 units to 22 units. Per HUD regulations, 51%, or 22 units, is the minimum number of units that can be identified as CDBG-compliant for this project. This amendment, if approved, would rectify the current outstanding finding.

Each attachment demonstrates that both CommonBond Communities and CB Rapid City Housing Limited Partnership have been aware of the income limits and rental rate caps as terms of receiving the City’s CDBG funding.

The proposed amendment changes the number of income-indexed units from 30 units to 22 units.

Attachments:
September 7, 2022 Contract – $347,000 contract assignment from CommonBond Communities to CB Rapid City Housing Limited Partnership (FY21 Funding).
November 10, 2022 Contract – $200,000 contract assignment from CommonBond Communities to CB Rapid City Housing Limited Partnership (FY22 Funding)
December 19, 2023 Amendment – Amendment increasing the FY22 funding from $200,000 to $250,000 for CB Rapid City Housing Limited Partnership
Amendment request to FY21 contract
Amendment request to FY22 contract

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Notes:
No staff recommendation
Published in 2025 - LF Agenda Items

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