Council passes affordable housing bond issuance

Last edited 12:29 p.m., Nov. 3, 2020

Springfield City Council last night voted 8-1 in favor of a multimillion-dollar bond issuance for a multisite affordable housing rehabilitation plan.

The vote gives the green light to Keystone Family Homes’ request for up to $22 million in housing revenue bonds through the city of Springfield’s Industrial Development Authority. Keystone Family Homes, a partnership between BGC Advantage LLC and the Springfield Housing Authority, plans to use the funds to finance the renovation of 297 multifamily housing units for low- and moderate-income individuals – including 85 buildings and single-family homes and duplexes scattered across Springfield, according to city documents. 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, according to past reporting.

Council tabled the request at its last meeting after members of the Springfield Tenants Unite organization raised concerns about the use of the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration program for the project. RAD gives public housing authorities the ability to leverage public and private debt and equity for the improvement of public housing properties, according to past Springfield Business Journal reporting.

Council members Abe McGull and Andrew Lear voted in favor of issuing the bonds after previously urging officials at the Housing Authority to address concerns voiced by the Springfield Tenants Unite organization at the previous council meeting.

“We are very fortunate to have this come to the city during this COVID-19 because that means we are going to employ people to do these renovations,” McGull said yesterday. “I do appreciate the many advocates we have for the tenants to bring to our attention this very important issue. And it sounds like the (Housing Authority) has some work to do in this area.”

Housing Authority CEO Katrena Wolfram and BGC Advantage principal and CEO Holly Knight said they’ve been communicative and transparent with tenants since the beginning of the process. Knight said the organizations are meeting with current tenants one on one to sign paperwork and explain the process again in case the tenant did not read a previously provided newsletter.

“We have had a lot of public meetings with the residents,” Wolfram said after the meeting. “Honestly, I think we have a good rapport with our residents. Of course, we are always here to answer questions at any time if they can’t make a public hearing or meeting.”

Speaking after the meeting, Knight added Springfield Tenants Unite is not a “recognized resident group” and that “they are misinformed.”

Officials with Springfield Tenants Unite could not be reached for comment by deadline; the group previously issued a list of demands including universal design of the properties, transparency in the process and accessible meeting times.