Dan Petrella
The State Journal Register
A St. Louis-based development company remains hopeful about its plan to purchase and renovate an apartment complex on Springfield’s west side despite failing to secure financing for the project from the Illinois Housing Development Authority the first time around.
Bywater Development Group last year sought the city’s support for its proposal to rehabilitate the Pine Woods Apartments, 1665 Seven Pines Road, using funding from the agency’s low-income housing tax credit program. The program allows developers of approved projects to sell dollar-for-dollar tax credits to investors, in turn lowering the amount of money they have to borrow to complete the project and the rent charged to tenants.
The city council authorized Mayor Mike Houston to write a letter of support, which he did, but the matter didn’t come before the council until after Bywater Development had already submitted its application.
Aaron Burnett, the company’s president, said being able to include that letter with the new application will give a boost to its chances for approval. “We feel like it makes a lot more of a positive statement to have the letter in the application,” Burnett said.
Ward 7 Ald. Joe McMenamin, whose ward includes the 168-unit apartment complex, also is backing the project and working to gather support from other officials. He’s already been in contact with officials from U.S. Sen. Dick Durbin’s office and some state legislators, he said.
“Ultimately, I think their chances are strong,” McMenamin said. “They’re committed, and they’ve got a strong proposal.”
The $11 million project would completely rehab all the units at the complex, which was originally built with financing from the Illinois Housing Development Authority, Bywater Development CEO J. David Dodson said.
Securing new financing from the Housing Development Authority would allow the company to update all the units with new flooring, paint, cabinets and fixtures and to replace roofs and heating and air-conditioning systems, among other upgrades, while continuing to reserve about 70 percent of the units for lower-income renters, Dodson said. In addition, 17 units would undergo more extensive renovations to make them accessible to people with disabilities, something from which some current residents could benefit, Dodson said.
McMenamin, who agrees that more affordable housing is needed in the city and his ward, said the planned improvements would “significantly improve the housing stock.” The work also would generate about $6 million worth of construction activity for the local economy, he added.
Joe McMenamin for Ward 7 