SIKESTON - The Kathleen Manor apartment complex is approved for rehabilitation funding from the Missouri Housing Development Commission.
The rehabilitation project at the Kathleen Manor apartments, located at 117 S. New Madrid St., is among the 49 affordable rental housing developments approved for funding Friday by the MHDC as part of its Rental Production and Preservation Program.
Approved was a request for a federal 1-percent interest loan of $582,690 and $127,512 in federal and state tax credits by the MHDC to rehabilitate 26 units for the elderly, according to David Bryan, MHDC public information administrator.
The developer for this project is Sikeston Properties, a partnership formed for this project between the Delta Area Economic Development Corporation, which owns the property, and Maco Properties, which will do the rehabilitation work.
Last year, a similar project submitted by Sikeston Properties for Kathleen Manor was one of seven on the "would have recommended funding" list of projects that would have received approval had further funding been available.
Also approved in this area this year was a proposal in Portageville to rehabilitate 21 bedroom units for the elderly with $50,314 in state and federal tax credits.
Bryan said these living units were originally built as a Rural Development project. "Most of these properties are between 20-30 year old," Bryan said of Rural Development projects.
A rehabilitation for the elderly proposal in Chaffee was ranked high enough to make the "would have received for funding" list, but was not approved because of a lack of funds. Also passed over in this area this year was a proposal for new low-to-moderate income housing at the Stoneridge Apartments in Dexter.
"We can only fund about one out of every three proposals," Bryan said. "Two-thirds to three-quarters are good proposals and could be funded - we just don't have that much money."
This year, 119 affordable housing development project proposals were returned by developers.
The annual application process for the funds starts in August with a notice of funding availability. Proposals are then returned to MHDC in October.
The proposals are evaluated and ranked according to need and demand.
Projects are selected by MHDC officials based on the need for low income housing in the area; coordination and approval of local governments including school districts; ability of the developer group to complete the project; and the ability to build immediately after approval.
Relocation plans for residents in rehabilitation projects are also considered in the decision-making process.
Bryan said the competition for funding, however, is a good thing in that it results in a high level of construction and is an incentive for developers to include added features such as playgrounds and computer centers.
MHDC is the only allocation agency for low-income housing tax credits which are used by developers to raise construction and operation equity by selling them for below their face value.
Having a wider market, federal credits are sold for 75 cents on the dollar with state credits only bringing in 30 cents on the dollar.