Rental Production Funding
Release No. 98-03-01
March 20, 1998
STATEWIDE HOUSING DEVELOPMENTS APPROVED FOR FINANCING
[Jefferson City] The Missouri Housing Development Commission (MHDC) approved 41 affordable housing development proposals for funding and tax credits during their monthly meeting March 20, 1998 in Jefferson City.
"These developments give us an opportunity to become partners in projects that will aid in relieving the shortage of affordable housing in Missouri," said Richard Grose, MHDC executive director. "The proposals we received this year reaffirm our commitment to the success of partnerships between public and private sector housing organizations."
The housing developments approved include new and rehabilitated apartments, duplexes and homes that will have affordable rents for low and moderate-income families.
The MHDC administers rental housing production programs including the federal and state low income housing tax credits. Rental production programs also consist of MHDC fund balances and federal "HOME" funds. Tax credits are a reduction in tax liability allocated to a qualified development, which are generally sold to create equity.
Affordable rental rates are made possible with low interest rental housing production loans and housing tax credits. Approximately 1,372 units of housing will be created or rehabilitated in part by more than $5.3 million in MHDC fund balances and almost $8.2 million in federal HOME loan funds. In addition, approximately $13.4 million federal and state tax credits were approved in the financing packages.
In August 1997, MHDC solicited proposals for rental production. By the deadline of Dec. 1, 1997, 135 rental production proposals. MHDC staff recommended 39 of the proposals for approval.
MHDC staff recommended proposals to the commission that included: a fair geographical distribution across the state, areas of highest need and availability of quality affordable housing, the sponsor's ability to leverage funds with other conventional or government sources of financing, the experience of the developer and associated professionals, the reasonableness of the development costs and rents, and readiness of the developer to proceed.
Since the December submission deadline, MHDC staff has made personal visits to all the sites and held public hearings on the proposals. MHDC staff also requested comments from local and state elected officials and federal and state agencies regarding the proposed developments.
The MHDC is Missouri's housing finance agency. MHDC administers several different programs aimed at providing safe, quality affordable housing to low and moderate income citizens of Missouri. More information on MHDC is available at their website (http://www.mhdc.com/) or by writing MHDC at 3435 Broadway, Kansas City, Missouri 64111.
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Below is a list of 1998 proposals receiving approval (listed by region with county, city, development name), followed by a narrative describing each development.
Central
Cole County, Jefferson City - Cedar Ridge Apartments #2
Boone County, Columbia - Hanover Estates III
Pettis County, Sedalia - Sedalia Heights
Moniteau County, California - California Family Apartments
Kansas City
Jackson County, Independence, Sterling Creek Apartments
Jackson County, Kansas City, Pacific House Apartments
Jackson County, Kansas City, Heritage House Replacement Housing
Jackson County, Kansas City, Heritage Village
Jackson County, Kansas City, Metropolitan Investment Property Group C
Jackson County, Kansas City, Metropolitan Investment Property Group D
Jackson County, Kansas City, Metropolitan Investment Property Group B
North
Grundy County, Trenton, 1600 Merrill Avenue
Grundy County, Trenton, Trenton Village Apartments
Nodaway County, Maryville, Maryville Meadows
South
Texas County, Licking, Licking Apartments III
St. Francois County, Park Hills, Park Hills Apartments
Dent County, Salem, Southwind Apartments
Wayne County, Piedmont, Clearwater Apartments
Bollinger County, Marble Hill, Marble Hills Estates
Texas County, Licking, Prairie Ridge
Stoddard County, Dexter, Dexter Senior Apartments
St. Francois County, Desloge, Eagles' Landing Apartments
Oregon County, Thayer, Augusta Oaks Apartments
Southwest
Newton County, Neosho, Neosho Villas
Pulaski County, Pointe Lookout, Pulaski County
Laclede County, Lebanon, Maplewoods
Jasper County, Joplin, Logan's Run
Lawrence County, Aurora, Aurora Family Apartments
Laclede County, Lebanon, Lebanon Sundance Apartments
Jasper County, Webb City, Webb City Apartments
St. Louis Metro
Franklin County, Pacific, Pacific Heights
St. Louis City, The Village of Grand Oak II
St. Louis City, A Place to Call Home (Hopewell 1)
St. Louis County, Parkside Apartments
St. Louis City, George L. Vaughn at Murphy Park Phase 2
St. Louis County, St. Louis, Sunset Apartments
St. Louis City, University Lofts
St. Louis City, North Newstead I
Jefferson County, Hillsboro, Hunter's Ridge Apartments
Lincoln County, Troy, Lincoln Villa
St. Louis County, St. Louis, Greater Bethlehem Elderly Apartments
Brief narrative of the projects approved for funding and tax credits by the Missouri Housing Development Commission include (sorted by region):
North
Grundy County, Trenton, 1600 Merrill Avenue
Green Hills Community Action Agency (Don Warren, principal) proposed a new three-bedroom home at 1600 Merrill Avenue in Trenton. Green Hills has done a good job in building or rehabilitating one or two homes every funding cycle. The project was approved for a $74,000 HOME Community Housing Development Organization (CHDO) grant.
Grundy County, Trenton, Trenton Village Apartments
M. B. L. Development Company (D. Kim Lingle, principal) proposes a 32-unit family development at 30th and Oklahoma in Trenton. All the units will be affordable to families with an income less than 50 percent of area median income. The development will have 24 two-bedroom units renting for $280 a month and eight three-bed units renting for $335 a month. This developer has received great support from the city and was approved to receive a $730,000 HOME loan at one percent interest for a 40-year term. The Commission also approved a $150,727 federal tax credit and a $150,727 state tax credit.
Nodaway County, Maryville, Maryville Meadows
Jeffery E. Smith Development Company proposes a 48-unit family development on Summit Drive in Maryville. The development includes 36 two-bedroom units and 12 three-bedroom units. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved a $730,000 HOME lone at one percent interest for 30 years. In addition, the Commissioners approved a $273,000 federal tax credit and a $273,000 state tax credit.
Central
Cole County, Jefferson City, Cedar Ridge Apartments #2
Mid-Missouri Development Company, a coalition created by the Chamber of Commerce, found during rent up of Phase I that there was a definitive need for three-bedroom units. They established a waiting list and worked with a private developer to propose this project of 24 three-bedroom family units that will rent for $375 a month. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved an $891,335 HOME loan at one percent interest for a 40-year term. MHDC also approved a federal tax credit of $98,621 and a state tax credit of $98,621 allocated over 10 years.
Boone County, Columbia, Hanover Estates III
Jeffrey E. Smith Development Company proposes Phase III of the Hanover Estates project as housing for families with a handicapped member, in four two-bedroom units. Phase I and II consisted of 60 family units. The units will be duplexes with garages with the affordable rent of $360 per month. The city will provide a $140,000 HOME loan while MHDC provides a federal tax credit of $21,653 and an equal amount of state credits allocated over 10 years.
Pettis County, Sedalia, Sedalia Heights
Jeffrey E. Smith Development Company is proposing a 48-unit family development at an excellent site near all the conveniences on Winchester Drive. All the units will be affordable to families with an income less than 50 percent of area median income. The 16 three-bedroom units will rent for $345 a month while the 24 two-bedroom units will rent for $310 a month. MHDC approved a $1.4 million HOME loan for 35 years based on the increased growth in the Sedalia community. The Commission also approved a $219,653 federal tax credit and a $219, 653 state tax credit allocated over 10 years.
Moniteau County, California, California Family Apartments
Hamilton Properties Corporation is proposing a 32-unit family development located on Cedar Street in California. The developer has chosen a good site and kept development costs low, despite the addition of several attractive amenities. This project is in a growing community with heavy community support. The MHDC approved an $825,000 HOME loan at one-percent interest over 32 years. MHDC also approved a $104,390 federal tax credit and an equal amount of state tax credit allocated over 10 years.
Kansas City Area
Jackson County, Independence, Sterling Creek Apartments
Phillips Development Corporation proposes constructing a new 48-unit family development at 3302-3310 South Sterling. A good site and the inclusion of 24 three-bedroom units along with the 23 two-bedroom units were a large selling point for the commission (one employee’s unit is also included). Phillips asked only for tax credits and MHDC approved a federal tax credit of $288,028 and a state tax credit of $288,028 allocated over 10 years.
Jackson County, Kansas City, Pacific House Apartments
DLS Real Estate, Incorporated, Dale L. Schulte, principal, proposes rehabilitating 32 loft apartments in the River Market area of the city. The project is a continuation of the revitalization of this area through the city's partnership with a local developer. The city has pledged $732,000 toward the project. MHDC joined the partnership by allocating a $220,000 federal tax credit and a $220,000 state tax credit over 10 years.
Jackson County, Kansas City, Heritage House Replacement Housing
Michaels Development proposes a 160-unit elderly and family project. The project serves as a prime example of how the joint efforts of several government agencies and a private contractor can work to improve housing in the city. The city, Kansas City Housing Authority, U.S. Department of Housing and Urban Development, and MHDC are working together to replace lost housing units in the downtown area. The Kansas City Housing Authority has already pledged almost $6 million to the project. The project also serves as a mixed income project with very low income, moderate income and market rate units being constructed as part of the project. MHDC approved a $700,000 federal and $700,000 state tax credit for the project.
Jackson County, Kansas City, Heritage Village
O.G. Investments, Ollie Gates, principal, proposes this city-supported 52-unit development for the elderly. The efforts of private developers partnering with the city, housing authority and MHDC are starting to yield dividends in this area of the city. Mr. Gates’ efforts include 52 one-bedroom units renting at $335 per month as a part of the continuing redevelopment of the area in the 12th, 13th and Woodland areas of the inner city. MHDC approved a $1.2 million loan at one percent interest over 40 years and also approved a federal tax credit of $377,277 and a state tax credit of $377,277.
Jackson County, Kansas City, Metropolitan Investment Property Groups B, C and D.
Nichols Management proposes three scattered site family developments. Group B and D are four three-bedroom units each while Group C is three three-bedroom units. MHDC has worked with this developer before on similar developments. The new three-bedroom detached homes will make a difference in the inner city neighborhoods in which they are planned. MHDC approved $28,473 state and federal tax credits for the four unit groups and $20,988 federal and state tax credits on the three unit group.
Southeast
Texas County, Licking, Licking Apartments III
Lockwood Development Company proposes an 18-unit family development. The U.S. Department of Agriculture has already approved the development for an $800,000 Rural Development loan. The housing is in direct support of the prison being built near Licking and will provide 12 two-bedroom units renting for $306 per month and eight three-bedroom units renting for $356 per month. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved a $35,000 federal tax credit and a $35,000 state tax credit allocated over ten years.
St. Francois County, Park Hills, Park Hills Apartments
Lockwood Development Company proposes an 16-unit family development. The development has already partnered with the federal government and been approved for a Rural Development loan of $693,800. The housing is in direct support of the prison being built nearby and will provide 12 two-bedroom units renting for $313 per month and six three-bedroom units renting for $353 per month. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved $32,800 in federal tax credits and $32,800 in state tax credits.
Dent County, Salem, Southwind Apartments
MACO Development Company proposes a new 32-unit elderly housing development in a community where elderly housing is definitely needed. Salem serves as a hub community for the area and the site provides easy access to all the necessary conveniences. The development plans include 20 one-bedroom units and 12 two-bedroom units. MHDC approved a $500,000 MHDC HOME loan at one percent, 40-year term, a $146,703 federal tax credit and a $146,703 state tax credit.
Wayne County, Piedmont, Clearwater Apartments
MACO Development Company proposes a 20-unit family development and has already been approved for a $798,000 Rural Development. The site offers a good location for a development that includes four one-bedroom units and 16 two-bedroom units. The one-bedroom units will rent for $220 a month while the two-bedroom units are slated to rent at $290 a month. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved a $23,102 state and federal tax credit.
Bollinger County, Marble Hill, Marble Hill Estates
MACO Development Company proposes a new 18-unit family development in the Marble Hill community. A growing community, the project has already received a $694,600 Rural Development loan. The project includes four one-bedroom units and 14 two-bedroom units. The one-bedroom units will rent for $275 a month while the two-bedroom units are slated to rent at $295 a month. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved a $37,920 state and federal tax credit.
Texas County, Licking, Prairie Ridge
Southern Missouri Development Company proposes a new 12-unit family development of 1,400 square-foot single family houses. The units include three bedrooms, two baths, and a two-car garage. The houses are being built to accommodate the influx of new employees of the prison being built in the area. The developer has offered a purchase option at the end of the 15-year compliance period at a very fair discount. MHDC approved a federal tax credit of $86,606 and an $86,606 state tax credit, both allocated over 10 years.
Stoddard County, Dexter, Dexter Senior Apartments
RCH Development proposes a 24-unit elderly housing development on Hickory Log Drive. The project includes a good site that is easily accessible and located near all the necessary conveniences. The project has gained a great amount of local support There is a definite need for this housing in the area. Rents are affordable at $260 a month for the one-bedroom units. MHDC approved a $400,000 MHDC loan at one percent interest, 40-year term and $115,002 state and federal tax credits.
St. Francois County, Desloge, Eagles' Landing Apartments
Lockwood Development Company proposes a new 32-unit family development with 24 two-bedroom units and eight three-bedroom units. The developers’ partnership with the East Missouri Action Agency was one attribute aspect of this project. It allows the MHDC to approve a Home Community Housing Development Organization (CHDO) loan of $633,000 at one percent over 40 years. The CHDO loans are a special program available only to specifically organized not-for-profits. MHDC also approved a $163,781 federal tax credit and a $163,781 state tax credit allocated over 10 years. The project will directly support employees of the prison being built in the area.
Oregon County, Thayer, Augusta Oaks Apartments
Lockwood Development proposes a 24-unit family development with 16 two-bedroom units and eight three-bedroom units. The developer is working with Ozark Action, Incorporated, a Community Housing Development Organization. The community of Thayer serves as a hub for this area of the state and is an ideal location for this type of development. MHDC approved a $463,000 HOME CHDO loan at one percent interest over 40 years. CHDO loans are a special program available only to not-for-profits. The project also was approved for $120,581 in state and federal tax credit.
Southwest
Newton County, Neosho, Neosho Villas
Jeffrey E. Smith Development Company has gained much community support for rehabilitation of this 64-unit project. The developer will purchase the units from Crowder College and give them a general overhaul. The money from the sale of the units by the college will be used to build new dorms on the college's campus. When finished, the rehabilitated development will include 24 two-bedroom units renting for $280, eight two-bedroom units renting for $310, 24 three-bedroom units renting at $340, and eight three-bedroom units renting at $355. All the units will be affordable to families with an income less than 50 percent of area median income. MHDC approved a $1.8 million HOME loan at one percent interest with a 30-year term. In addition, MHDC approved a $339,900 federal and state tax credit allocated over 10 years.
Pulaski County, Unincorporated, Pointe Lookout
Carlson-Gardner Properties proposes a new 64-unit family development in support of new programs and personnel in the Fort Leonard Wood area. The development includes 40 two-bedroom units and 24 three-bedroom units. The developer has worked hard to develop housing in this area. MHDC will join with Fannie Mae to approve a $900,000 loan at five percent, 30-year term. The Commission also approved a federal tax credit of $340,658 and a state tax credit of $340,658 allocated over 10 years.
Laclede County, Lebanon, Maplewoods
Southern Missouri Development Company proposes a unique 10-unit development on scattered sites in an existing subdivision. The development includes three-bedroom, two-bath, single family houses with 1,400 square feet and a two-car garage. The developer intends to offer long-term tenants a purchase option on the units at the end of the 15-year compliance period, at a very fair price. This is one of two developments approved for Lebanon. MHDC approved federal tax credits of $74,146 and an equivalent state tax credit of $74,146.
Jasper County, Joplin, Logan's Run
Southern Missouri Development Company proposes a 10-unit development that includes three-bedroom, two-bath, single family houses with 1,400 square feet and a two-car garage. The developer intends to offer long-term tenants a purchase option on the units at the end of the 15-year compliance period at a very fair price. MHDC approved federal tax credits of $73,588 and an equivalent state tax credit of $73,588.
Lawrence County, Aurora, Aurora Family Apartments
Hamilton Properties Corporation proposes a 26-unit family development in Aurora, a growing community. The development is planned to include 20 two-bedroom units, renting at $325 per month, and 16 three-bedroom units at $370 per month. MHDC joins with Fannie Mae to provide a $750,000 loan at 5 percent interest, 30-year term. The Commission also approved a $133,675 federal tax credit and an additional $133,675 state tax credit allocation over 10 years.
Laclede County, Lebanon, Lebanon Sundance Apartments
Cohen-Esry Housing plans a new 40-unit family development as part of the continuing effort to assure adequate housing for the Fort Leonard Wood transition. The community is a vibrant one and serves as a hub for this area of the state. The development, one of two in Lebanon being approved by MHDC for funding, includes 28 two-bedroom units and 12 three-bedroom units. The developer requested tax credits only and MHDC approved a $220,000 state and federal tax credit.
Jasper County, Webb City, Webb City Apartments
Red Wood Development Company proposes a 56-unit family development on Madison Street. This developer historically has provided good quality construction with the most amenities at a low cost. The site for this development is a good one in this growing Missouri community. All the units will be affordable to families with an income less than 50 percent of area median income. The development includes 40 two-bedroom units renting for $290 and 16 three-bedroom units renting for $350. MHDC partnered with Fannie Mae to approve a $866,425 loan at 5 percent interest for a 30-year term. The Commission also approved a $243,250 federal tax credit and a $243,250 state tax credit allocated over 10 years.
St. Louis Metro
Franklin County, Pacific, Pacific Heights
MACO Development Company proposes a new 18-unit family development with two one-bedroom units and 16 two-bedroom units. All the units will be affordable to families with an income less than 50 percent of area median income. The developer has been approved for a $693,000 Rural Development loan. The development is in a growing community adjacent to St. Louis County. MHDC approved a $36,024 federal tax credit and a $36,024 state tax credit.
St. Louis City, The Village of Grand Oak II
Pyramid Construction plans a 10-unit family development and has partnered with the City of St. Louis, who will provide $177,000 in city funds for the project. The new construction in the area has become a stabilizing influence in the neighborhood, and MHDC staff believes this is a good example of how to change an older city neighborhood for the better. MHDC approved $36,024 in federal tax credits and a $36,024 state tax credit.
St. Louis City, A Place to Call Home (Hopewell 1)
The Hopewell Center proposes a project providing housing for the developmentally disabled. The project calls for a 9,000 square-foot building with six apartments, congregate living space for eight beds, an administrative office, and a multipurpose room. The organization was previously awarded tax credits, but returned them when funding was not completely secured. Through good support with private and public funds, the $807,414 project is now ready to proceed. MHDC approved a state tax credit of $37,068 and a federal tax credit of $37,068 for the apartment units only.
St. Louis County, Parkside Apartments
The "Feed My People" organization, John Deguire, principal, proposes a rehabilitation project for 47 two-bedroom units. An infusion of new resources has made this project a top priority for St. Louis County. The county has granted a $592,261 loan to the project. This is a good example of rehabilitation working to save a neighborhood can be saved with very little money. MHDC approved a federal tax credit of $166,066 and a state tax credit for the same amount allocated over 10 years.
St. Louis City, George L. Vaughn Residences @ Murphy Park Phase II
One of the city's top priorities, Phase II has become a joint effort of the city, St. Louis Housing Authority, HUD and MHDC with Fannie Mae collaboration. Phase I has been very successful in establishing a mixed income neighborhood in the inner city. Mixed income neighborhoods include planning for very low to moderate income residents living in the same area as those who rent at market value. This HUD "Hope VI" project has attracted corporate contributions and a commitment of more than $6.9 million from the Housing Authority. Plans are to build 121 units including 53 two-bedroom units, 57 three-bedroom units and 11 four-bedroom units. Forty-one of the units will be rented to market rate residents. MHDC approved collaboration with Fannie Mae for a $2,184,000 loan with a 30-year term. The commission also approved a $547,368 federal tax credit and a $547,368 state tax credit.
St. Louis County, St. Louis, Sunset Apartments
Parkside Development Company proposes to rehabilitate 60 two-bedroom family units. This rehabilitated development will help to save a neighborhood with a low cost to all partners. The developer's partnership with the city provides for a $925,375 HOME loan. MHDC agreed to enter into the partnership by providing $213,326 federal tax credit and a $213,326 state tax credit.
St. Louis City, University Lofts
A joint effort of the Regional Housing Alliance and NationsBank Community Development Corporation is working to produce this civic progress project. A major study commissioned by the city concluded loft apartments were a good way to induce downtown workers to move back into the city. The partners in the project have committed $1.65 million and Washington University has donated the building and land for parking in the area. The development will include a mixed income program within a historic renovation development. Twenty-six units will be rehabilitated with 16 of them committed to rentals for low- and moderate-income families. MHDC approved a $169,000 federal and $169,000 state tax credit.
St. Louis City, North Newstead I
The North Newstead Association proposed a rehabilitation project for 28 family units on the North Side of the inner city. The plan includes a complete rehabilitation of 14 two-bedroom units, eight three-bedroom units, and four four-bedroom units. All the units will be affordable to families with an income less than 50 percent of area median income. Rental costs will be $285 a month for one two-bedroom unit; $325 for the remaining two-bedroom units; $375 for three bedrooms and $425, four bedrooms. The city's funding of $536,726 and a substantial plan for the entire area made this a strong project in one of the poorer areas of the city. MHDC approved a $288,568 federal tax credit and a $288,568 state tax credit.
Jefferson County, Hillsboro, Hunter's Ridge Apartments
Nye Development Company proposes a 24-unit family development with 16 two-bedroom units and 8 three-bedroom units at a good site in a growth area of metropolitan St. Louis. MHDC worked with the company to reduce the number of units and provide funding for a project that received good local support. The commission will team with Fannie Mae to approve a $610,000 loan at 5 percent interest and a 30-year team. The project was also approved for a $100,000 federal tax credit and a $100,000 state tax credit.
Lincoln County, Troy, Lincoln Villa
The Northeast Community Action Agency has worked many times with MHDC with great success. The Lincoln Villa elderly housing development project will provide 36 one-bedroom units at a monthly rent of $290. The organization qualifies as a Community Housing Development Organization, the MHDC was able to approve a HOME CHDO loan for $866,885 at one percent interest, 40-year term. The Commission also approved a federal tax credit of $156,484 and a state credit of the same amount allocated over 10 years.
St. Louis County, St. Louis, Greater Bethlehem Elderly Apartments
The Greater Bethlehem Housing Corporation, a not-for-profit sponsor proposes a 38-unit development for elderly housing. An organization with strong community support, the group has already obtained city funding of $675,000 for the project. MHDC had committed to this development in 1997 but Greater Bethlehem Housing asked that we withdraw the credits late in the year. They restructured their proposal, making it stronger, and the Commission approved a $467,179 MHDC loan with one percent interest, 30-year term. MHDC also approved a $213,703 federal tax credit and a $213,703 state tax credit for this inner city development.