DEXTER - A rehabilitation project for 50 family units at Dexter Apartments was approved Friday for a $90,000 zero-interest loan and for $282,623 in federal and state tax credits by the Missouri Housing Development Commission.
Of the 129 affordable housing development project proposals returned by developers last October, 41 were recommended for funding this year by the MHDC. "We had requests for $76 million in loans and $32.7 million in tax credit requests," said David Bryan, MHDC public information administrator. "There's only so much money to go around."
The good thing about the competition for funding, Bryan said, is that it ensures a high level of construction with developers even adding features such as playgrounds and computer centers in an effort to secure funding.
MHDC officials select projects 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, according to Bryan. Also considered is the relocation plan for residents in rehabilitation projects.
A Sikeston project was one of seven on the "would have recommended funding" list of projects that would have received funding if further funding was available. "The Sikeston project was very high on the list - something we wanted to fund but we just don't have enough funds," said Bryan.
The proposal would have rehabilitated 26 units for the elderly at Kathleen Manor, 117 S. New Madrid Street.
The developer was Sikeston Properties, a partnership between the Delta Area Economic Development Corporation and Maco Properties, which was seeking a $540,282 loan, $660,366 in federal housing tax credits and $229,317 in state housing tax credits.
MHDC is the single allocation agency for low-income housing tax credits, according to Bryan.
"The tax credits are used to raise equity for the developer," Bryan explained. "They sell the tax credits below face value to raise equity for construction and operation."
Bryan said federal credits are sold for 75 cents on the dollar and state credits for 30 on the dollar as the federal credits have a wider market. "Eighty-five percent of the time they already know who they will sell their tax credits to," said Bryan.
A Chaffee proposal to rehabilitate 50 apartments for the elderly was also turned down for funding, ranked further down the list as "fundable."
Over 30 percent of the projects approved this year had been submitted but not funded last year, Bryan said.