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Fairfield Ledger   Mt. Pleasant News
Neighbors Growing Together | Apr 26, 2018

Pennsylvania House only a memory

Mar 02, 2018

Construction crews didn’t take long after demolishing the former Pennsylvania House, also formerly Goncho Apartments, on Monday to remove the debris from the demolition site. Townhouses are scheduled to be built at the location.

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Posted by: Glen Peiffer | Mar 19, 2018 19:57

Renovations on the way Iowa Finance Authority awards tax credits to two Fairfield projects

By Andy Hallman, Ledger news editor | Mar 16, 2018
Source: PHOTO COURTESY OF JIM DANAHER The image is an artist’s rendering of the remodeled Broadway Building, on the right side, and a planned three-story senior apartment complex across the street to the south, seen here on the left side.

The Iowa Finance Authority Board of Directors awarded federal housing tax credits to 12 rental developments, including two in Fairfield.

The awards total more than $7.26 million in equity to build and preserve 514 rental homes for families and seniors in Black Hawk, Jasper, Jefferson, Johnson, Linn, Muscatine, Polk and Woodbury counties.

The Louden Housing project on West Broadway received about $497,000 for 39 units, while North Bay Apartments on Pierce Avenue received $266,000 for 24 units.

 

Louden Housing

CBC Financial Corporation is in charge of developing the Louden Housing project in the Broadway Building that is famous for, among other things, housing the Louden Machinery Company many years ago.

The award from Iowa Finance Authority is great news for a project that has been trying to gather steam for the past three years. In January 2015, CBC Financial announced its desire to remodel the Broadway Building into a senior housing complex capable of holding 40-plus apartments. It received $2.2 million in state historic preservation tax credits that May, but needed several million more.

In April 2016, CBC Financial’s application for a $5 million low-income housing tax credit was turned down, putting the project on hold.

The company’s president, Jim Danaher, said plans have changed in recent months. The Broadway Building will still be renovated, but it won’t be just for seniors anymore. Once it’s remodeled, the company has its sights set on constructing a three-story apartment complex next door specifically for seniors.

The tax credit from IFA will subsidize rents for 39 units in the Broadway Building, and there will be five additional units not subsidized. Danaher said the restaurant and bar will be removed from the building and turned into apartments.

“The building is over 100 years old and needs significant renovations to its plumbing, electrical wiring, heating and cooling,” he said. “Everything will be updated with new energy efficient materials.”

Danaher said the building has a few tenants, and they’ll be able to return to their units after renovation.

CBC Financial plans to start construction at the end of this year, and the units will be ready in 2019.

“CBC Financial has worked hard to get the project to where it is today,” said Fairfield Economic Development Association executive director Joshua Laraby. “The addition of 44 new units to our housing stock will be significant for Fairfield. This is wonderful news for the development group and for the community. We look forward to the project getting underway.”

 

North Bay

Community Housing Initiatives is acquiring North Bay Apartments, which includes five buildings – a few large apartment buildings and a couple of townhouses. The complex has 24 units, and they are all scheduled for renovation.

Matt Hauge, marketing director for Community Housing Initiatives, said the units will receive new appliances and in-unit laundry, so the residents won’t have to go outside to wash their clothes.

“We don’t know all the specifics of the renovations yet,” Hauge said. “We know that North Bay will get new heating and cooling. Typically, [our remodeled apartments] get new kitchens and cabinets. It will feel like a brand new apartment when it’s finished.”

Keyway Management runs the apartments now. Community Housing Initiatives will take possession later this year, but the name will remain North Bay. Renovations will begin in early 2019 and end that fall.

Residents of North Bay apartments pay 30 percent of their income as monthly rent. Hauge said that is what the government considers affordable housing.

“This is the best source of funding to preserve affordable housing,” he said. “If funding is not available, we’d see these properties sold to anyone on the market, and they’d raise the rents. Keeping them available at a lower rent is important for the families who live there.”

 

Iowa Finance Authority

“The housing tax credits awarded today will provide hundreds of Iowa families and seniors with a place they will be proud to call home,” said Iowa Finance Authority Executive Director Dave Jamison.

“These projects have leveraged an additional $7.2 million in local contributions, and each of these communities will see the far-reaching benefits of these developments for many years to come.”

The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state for the Federal Housing Tax Credit program.

The Iowa Finance Authority is charged with allocating those credits to affordable housing developers. The developers who receive tax credits sell them to investors to generate equity for the housing developments.

The IFA received 29 applications requesting more than $19.2 million in housing tax credits in the 2018 tax credit round and IFA had approximately $7.7 million available to allocate.

The actual awards exceed $72.6 million because the credits are committed annually for a 10-year period.



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