An aging public housing development is undergoing a major revitalization in Little Rock, Arkansas.
Gorman & Co., in partnership with the Metropolitan Housing Alliance (MHA) and Central Arkansas Housing Corp. (CAHC), have teamed to begin the transformation of Sunset Terrace, a public housing community consisting of three sites—the 74-unit Sunset Terrace, Stephen Apartments with eight units, and Central Apartments, containing five units. The development has apartments ranging from one- to five-bedroom units.
Due to a lack of sufficient federal funding over the years, Sunset Terrace has become dilapidated and in desperate need of major renovations, according to the team.
The public-private partnership between Gorman, MHA, and CAHC raised the capital needed to complete the transformation through the use of the federal Rental Assistance Demonstration (RAD) program and federal low-income housing tax credits (LIHTCs) through the Arkansas Development Finance Authority (ADFA).
Sunset Terrace, which dates back to the early 1940s, will undergo a gut renovation. The units located at the Stephen and Central sites will receive more minor improvements as these units are newer and in better physical condition. Gorman & Co. is providing relocation services for residents while construction takes place.
In addition to the Department of Housing and Urban Development’s (HUD's) RAD program, Gorman & Co. is utilizing Section 18 of the U.S. Housing Act of 1937 to make this renovation possible. Section 18 was expanded by HUD in 2018 to help reposition aging public housing, bring modern amenities to these communities, and offer residents who receive rental assistance more choices in the marketplace.
Financing for the approximately $26 million project includes $11.8 million in LIHTC equity, a $5.1 million public housing authority soft loan, a $3.8 million first mortgage, $2 million from the ADFA National Housing Trust Fund, $2.7 million in seller financing, and $783,583 in deferred developer fees.
“When residents are empowered to improve their own living conditions, the entire community benefits,” said Brian Swanton, president and CEO of Gorman & Co.
