Officials took a step closer to developing 32 affordable homes in Highland, Illinois.
Turnstone Development and North Arrow Development have partnered with WNC, a low-income housing tax credit syndicator and affordable housing firm, to close on financing to begin construction on Flax Meadow Townhomes, about 35 miles east of St. Louis.
The development, to be built on former farmland, will be the second phase of the existing Flax Meadow Townhomes. The new units will consist of seven single-story accessible units and 25 two-story units. Overall, the project has four one-, 12 two-, and 16 three-bedroom units. Five units will be reserved for formerly homeless or disabled households that come from the Illinois Referral Network, 10 units will be reserved for families earning 30% of area median income (AMI), and 22 units are designated for families earning 60% of the AMI.
The modern units will be equipped with electric ranges; refrigerators; garbage disposals; dishwashers; microwaves; washers and dryers; low-flow toilets and faucets; central air conditioning; window blinds; carpeted stairwells, LED lighting; vinyl flooring throughout the living areas, kitchens, and bedrooms; and sheet vinyl in the bathrooms. Each home will have a patio or a balcony.
Common amenities at Flax Meadow Townhomes II will include bike racks, storage, a playground, a community garden, on-site management, CCTV/cameras, and a courtesy officer.
“We are pleased to be partnering with Turnstone and North Arrow on the second phase of this successful property,” said Michael C. Byrd, vice president of originations at WNC. “Given the demand in the market and the quality of the finished product, we are confident the project will provide safe, high-quality housing in a market that really needs it.”
The total development cost of the new community is $12.6 million.
The deal was structured with 9% low-income housing tax credits. Additionally, the project will be financed with a $1.35 million permanent loan from IFF and a $500,000 soft loan from the Madison County HOME program. The Illinois Housing Development Authority has provided a $2.8 million grant, which will be loaned to the partnership through Turnstone Development. Additionally, Horizon Bank will be providing a $5.7 million construction loan. In addition, five units will receive Housing Assistance Payment project-based vouchers from the Madison County Housing Authority.
“There is an overwhelming demand for safe, sustainable quality affordable homes,” said Sue Wiemer, interim executive director of nonprofit Turnstone Development. “We are thrilled to be underway with construction on our second phase of Flax Meadow in partnership with North Arrow Partners. We heard the need for additional affordable housing in Highland and are so grateful for the partnership and support from the city, the Illinois Housing Development Authority, WNC, IFF, Madison County, Madison County Housing Authority, and Horizon Bank, all who were essential in making this happen.”
