ST. LOUIS — Two community development organizations have closed on $11.5 million in financing to retain 24 scattered-site apartment buildings' status as affordable housing in the Forest Park Southeast neighborhood.
In addition, the groups will embark on what officials say is a "pretty substantial" renovation of the Park East Apartments, where $40,000 will be invested in each 73-apartment unit to update mechanical systems, roofs, flooring, kitchen and bath finishes, and more. The project will utilize state and federal historic tax credits. All buildings are located within walking distance of the BJC/Washington University Medical Center campus.
Rise Community Development, Forest Park Southeast Development Corp. and investor Advantage Capital closed this week on the financing, called resyndication, that allows Park East Apartments to receive another round of low-income housing tax credits (LIHTC). Those credits will offer rent affordable to families making 60% or less of the Area Median Income level, as determined by the U.S. Department of Housing and Urban Development, according to Rise.
Market-rate rents in the Central West End/Forest Park submarket, where Forest Park Southeast is located, are typically $1,353 a month, according to the latest data from Berkadia.
The renovation is expected to start soon and finish by next year. Park East Apartments has an occupancy of about 60%, which Rise Executive Director Stephen Acree said was intentional in order to prevent displacing residents during renovation.
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