Partners Break Ground on $42 Million in Renovations  and  a  New Community Center

Mayor Ron Stewart Join the Missouri Housing Development Commission and Local Housing Partners to Celebrate the Preservation of 745 Units of Affordable Housing at Hawthorne Place

INDEPENDENCE, MO – Mayor Ron Stewart today joined representatives from the Missouri Housing Development Commission (MHDC), Preservation of Affordable Housing, Inc., the U.S. Department of Housing and Urban Development, and Fannie Mae to celebrate the successful effort to rehabilitate and preserve the affordability of 745 units of affordable rental housing at Hawthorne Place, a townhouse community located at the intersection of Missouri Highway 291 and U.S. Highway 24 in Independence.

Hawthorne Place provides affordable housing to families earning at or below 50 percent of the area median income – housing units that are not easily replaced in any community. Hawthorne Place faced deterioration and a loss of affordability due to the expiration of federal subsidies under HUD’s project-based Section 8 multifamily financing program.  At today’s event MHDC, Preservation of Affordable Housing, Inc., HUD and Fannie Mae  announced a successful public-private effort that will provide new financing for renovation of the complex and preserve the units’ affordability.   Financing for the project includes $20 million in tax-exempt bonds issued by MHDC , $9.8 million in equity raised from Federal Low Income Housing Tax Credits and $1.5 million equity from State Housing Tax Credits allocated through MHDC, and a $15.5 million restructuring payment by HUD.  Under the new financing plan units will remain reserved for low-income families.

“Hawthorne Place is a very important asset to our community and improvements to Hawthorne Place are part of our strategy to ensure that Independence provides a continuum of housing choices for its residents including affordable housing” said Mayor Stewart.

Preservation of Affordable Housing, Inc. will renovate the units on a rotating basis with residents staying in place without causing any displacement.  Preservation of Affordable Housing, Inc. is dedicated to the long-term ownership and operation of existing affordable housing projects.  A major enhancement to Hawthorne Place is the addition of a 21,000 square-foot community center that will house critical social service providers including a Head Start Program that will serve 90 children, a Boys and Girls Club, an Independence Police Department sub-station, a gymnasium and offices for property management staff. 

“The preservation and improvement of Hawthorne Place will be a catalyst for the stabilization of the area.  A key to successful communities is their ability to provide decent and affordable housing for residents of every income level.  By including on-site access to social services we are a step ahead of the game, providing opportunities for residents to improve their economic circumstances”, said Erica Dobreff, Executive Director, Missouri Housing Development Commission (MHDC).  As the state’s housing finance agency, MHDC partners with for profit and nonprofit developers to both preserve affordable housing stock and increase the availability of affordable housing through the construction of new multifamily housing developments throughout the state.

 “Federal housing subsidies do not come close to meeting all the need.  When local housing groups find solutions to meeting the goal of preserving affordable housing we need to listen and provide support,” said Macie Houston, Regional Director, Region VII, HUD.  It is important to ensure that scarce affordable housing units remain up-to-date and provide a safe and supportive living space for low wage workers.”

For more information about Hawthorne Place, please call Caron Brumbaugh at 816-257-2339.

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Contacts

David W. Bryan, Missouri Housing Development Commission, 816.759.6692, cell (816) 506-0150

Holly Muson, Preservation of Affordable Housing, Inc., (617) 261-9898 x12

Carolyn Ozcan, Fannie Mae, 972-773-7787, cell (214) 649-3218

Dale Gray, Region VII, U.S. Department of Housing & Urban Development, (913) 551-5542