Developers make dent in affordable housing

Springfield attorney Carson Elliff, who assists with the bonding for IDA, said IDA approved tax-exempt bond funding for Keeter Heights in Hollister and Ridgecrest at Bull Creek north of Branson last fall. The ChapelRidge project in Hollister, waiting for approval from the Missouri Housing Development Commission, is expected to close on its IDA financing in the spring.

A 2005 housing study commissioned by the city of Branson and Taney County revealed that the county needed more than 1,800 new affordable rental units. The report did not include the housing required for about 3,000 new hires between Branson Landing, Home Depot and Target in 2006.

Keeter Heights

Marie and Joe Carmichael, owners of Affordable Homes Development Inc. in Springfield, are building 33 three-bedroom, two-bath homes at Keeter Heights on Hillbilly Lane, just south of Highway BB in Hollister. Marie Carmichael said construction will begin this month on the single-family brick residences, which will have about 1,450 square feet of living space and two-car garages. Carmichael said the company would lease the homes for $565 per month.

The total estimated cost for the subdivision is $4.5 million. The general contractor is Springfield-based Morelock-Ross Builders, and the architect is Ed Tims, also of Springfield.

In addition to the $4.5 million in IDA tax-exempt bonds and 4 percent state tax credits, Carmichael’s company received about $200,000 in federal grant financing through an application by the city of Hollister.

Ridgecrest Apartments

Excavation already has started for Ridgecrest Apartments, located on 20 acres north of Highway F at Bull Creek in Taney County. Under the direction of John Harpole, owner of New Beginnings Development LLC in Springfield, the $12 million complex will include 160 three-bedroom, two-bath units, an office, a community center and a daycare.

Besides the $11.3 million in tax-free bonds through IDA, New Beginnings Development is receiving 4 percent tax credits through MHDC. The apartment complex will be finished by November 2008. Harpole said he then hopes to begin building one- and two-bedroom single family homes at the same location, also using a tax credit program.

Harpole is not new to affordable housing projects in Taney County. Already in place are 188 units at Lost Tree Apartment near the intersection of F Highway and U.S. 65 north of Branson, which he began building in 1993. Next to this complex, 76 units are under construction at Lost Tree Apartments South. Monthly rent ranges from $365 for a one-bedroom unit up to $550 for a three-bedroom unit for qualified tenants. Harpole expects these units to be finished in April at a total estimated cost of $5.4 million. Harpole said he is funding this project with IDA tax-exempt bonds and 4 percent tax credits through MHDC.

ChapelRidge

John Clayton, executive vice president of ERC Development Group LLC in Fort Smith, Ark., plans to build a 120-unit apartment community called ChapelRidge on White River Mountain Boulevard in Hollister. According to Carla Smith, development coordinator for ERC, the $8.9 million complex will consist of one-, two- and three-bedroom units ranging from $410 to $595 a month.

The complex, which received $4.6 million in IDA tax-exempt bonds, according to the Taney County Office of Economic Development, is under the ownership of Hollister Housing Associates LP. The general contractor is ERC Construction Group LLC, and the architect is The Hill Firm, both of Fort Smith.

Beyond IDA

Although not IDA-funded, two other affordable housing projects are also under construction.

HCW Development LLC of Branson was approved for $1.7 million in 2007 funding from the MHDC for Phase II of its Country Ridge apartments on State Highway 248 in Branson. The first phase, a 60-unit complex, will be ready for leasing in February or March, with rent starting at $410 for those who qualify.

Construction also should be finished by spring on the 84-unit Academy Commons on East Highway 76 near Branson. Also billed as affordable by its developer, MPI of Branson, rent will start at $650 per month. MPI plans to donate a portion of rental profits to a yet-to-be-named nonprofit organization.

Developer, Renter Guidelines

Besides its financial role, Springfield attorney Carson Elliff said the Missouri Housing Development Commission also monitors the construction projects and ensures the tenants are qualified renters.

“(Developers) have to meet guidelines for construction,” he said. “What you have is affordable housing, not low-income housing. With combined tax credits and low-interest financing, they can make a much nicer project.”

Elliff said those seeking to live in IDA-funded housing must make 60 percent or less of the median income for Taney County based on a sliding scale for family size.

According to John Harpole, developer of Ridgecrest Apartments, the median income for the county is about $45,600, so a family of four, for instance, would have to make $27,600 or less to qualify.