A joint venture between Jonathan Rose Cos. and Columbia Residential, in partnership with community-based nonprofit SUMMECH Community Development Corp., is preserving 181 units of affordable housing in the Mechanicsville neighborhood near downtown Atlanta.
The joint venture acquired City Views at Rose Burney Park, which was out of its initial low-income housing tax credit (LIHTC) compliance period and had only about five years remaining on its existing Housing Assistance Payment (HAP) contract, for $25 million. In addition, the community’s Section 236 use restrictions limiting rentals to households with incomes at or below 80% of the area median income (AMI) and limiting rents to cost-based rates approved by the Department of Housing and Urban Development were set to expire this year.
“Our development and investment renews the HAP contract covering 154 units for 20 years and preserves the affordability of all units at a mix of 40%, 60%, and 80% AMI levels through the new LIHTC income-averaging set-aside program for the next 30 years,” said Brandon Kearse, director of acquisitions at Jonathan Rose Cos. “We are once again thrilled to partner with Columbia Residential, our local co-developer and property manager, in preserving this much-needed housing.”
A $16.5 million renovation is planned for the community, which includes two- to five-bedroom garden-style apartments as well as a tower of one-bedroom units. Community space that had previously been closed off for storage will be reactivated and will include a state-of-the-art fitness center, a community room with a warming kitchen and free Wi-Fi, a craft room, a package room, a computer learning center, and upgraded laundry facilities.
Renovations include new roofs, windows, elevators, and in-unit air conditioning and ventilation systems; the replacement of waste plumbing and vent stacks; façade brick repairs and repointing; and improved ADA accessibility. The units also will be renovated, including new kitchens and bathrooms, with tile vinyl flooring, Energy Star appliances, low-flow plumbing fixtures, and LED light fixtures. The community is expected to earn green certification.
Renovations are anticipated to last 19 months, with residents being temporarily relocated off-site on a rolling basis in periods of less than 30 days. In addition to the renovations, the community will be staffed with a full-time resident services coordinator to serve the families.
Funding for the project is structured with $23 million in federal and state LIHTC equity from U.S. Bancorp Community Development Corp. and a $26.4 million Freddie Mac TEL first mortgage from Capital One. SUMMECH also provided $1.5 million in soft financing.
