City proposes bond issuance for affordable housing

The city of Springfield's Industrial Development Authority is scheduled to host a public hearing next week on a bond issuance for an affordable housing project.

The city is proposing to issue bonds – not to exceed $22 million – that would help finance a portion of the costs of acquisition and rehabilitation of multiple affordable housing facilities across the city by Keystone Family Homes LP, according to a news release.

Under the proposal, Keystone would purchase and rehabilitate 85 buildings currently owned by the federally funded Housing Authority of Springfield. The properties include Glenwood Apartments at 722 E. Glenwood St., Cedarbrook Apartments at 811 N. Cedarbrook Ave. and Dogwood Apartments at West Madison Street and South Campbell Avenue.

The buildings would be used by Keystone to create 297 units that would fall under IRS code for qualified residential rental projects, according to the release.

“This project will rehab or rebuild existing Springfield Housing Authority properties, resulting in significant improvements for these existing affordable housing properties,” said Sarah Kerner, the city of Springfield's economic development director, in the release. "The city is not obligated on the bonds and they do not count against the city’s debt cap.”

Kerner added that Cedar Rapids Bank and Trust would buy the bonds and act as the lender for the developer.

The Industrial Development Authority public hearing is scheduled 10:30 a.m. Sept. 22. Interested parties can call the toll-free number of 877-230-5394 and use the access code 2187566# to join the call, according to the release.