Jun 25, 2011
During Monday’s City Council meeting, the council both considered and approved the adoption of a resolution to support Summit Housing Partners’ application for affordable housing tax credit for the purchase and rehabilitation of the Jamestown Square Apartments, located west of Santa Fe Avenue and south of NW 12th Street.
“The issue with Jamestown Square Apartments involves a developer seeking the City’s support of his application for federal tax credits to renovate/remodel the apartments. These are low-income Section 8 housing units,” said City Manager Steve Eddy.
Summit Housing Partners LLC is a leading owner and operator of affordable and workforce housing in the Southeastern and South Central United States, with approximately 500 full-time employees and three offices in two states. According to Jeff Dean, Acquisitions Associate, Summit Housing Partners seeks to be “To be the premier provider of affordable and workforce communities.” The company began back in 1996 with a simple concept: building strong communities improves affordable housing. The company has since grown from one property in central Alabama to almost 100 properties spanning nine states.
In an affordable housing preservation effort, Summit will rehabilitate Jamestown Square Apartments through the use of 9% Low Income Housing Tax Credits (LITHCs), HUD 221(d)4 financing, and community support.
During Monday’s City Council Meeting, the City Council approved a resolution of support for Summit’s project. In order to provide the funds necessary to create affordable housing, low-income housing tax credits are awarded by the federal government to states based on population.
The project will cost $48,500 per unit. The rehabilitation budget is $4,850,000. Total project costs including extras such as lenders and attorneys will be approximately $9.5 million.
Moore citizens will immediately see landscaping improvements. In addition, Summit will refresh each unit’s exterior to make the property’s aesthetic appearance more up to date. Several years ago, severe weather destroyed several of the units. The damaged units had to be completely replaced which left un-matching units within the apartment complex. Summit will work to make the property look uniform once again.
A community center, covered parking, and unit amenities such as washers and dryers will be added to the complex. Additionally, each unit will receive a complete update with fresh paint, carpet, cabinets, vinyl, tile, and appliances.
“The project is currently 92% occupied, and we expect it will become so nice and new that it will stay 100% full,” said Dean.
If Summit buys Jamestown and completes the rehab, the property will still be Section-8 housing. The purchase and renovation simply means that the department of Housing and Urban Development (HUD) will assist residents with their rent payments.
The next step for Summit is receiving the tax credit allocation. If Summit receives the tax credit allocation, work will begin January 1st of 2012 and finish December 31st of 2012.