The City Council in Atlantic, Wednesday, authorized City Administrator Doug Harris to sign a letter of commitment with the non-profit RD Atlantic LLLP group, which will help the group get a higher tax credit rating for an elderly affordable housing project. RD Atlantic representative Cindy Voorhees with National Consulting Alliance in Des Moines, says the group is seeking a Low Income federal Housing Tax credits award administered by the Iowa Finance Authority, for the acquisition and rehabilitation of the 24-unit Regency Villa Apartments on Redwood Drive.

She says a local government contribution will help to make the project competitive and successful. Right now however, they don’t need money from the City, just a commitment that would enable the developer to get the necessary tax credits and begin work on the project.

The developer plans on investing $2.1-million to improve the property, which includes rehabilitation of the living units, new roofing and siding, appliances and carpeting. Voorhees says the organization will need some financial help from the City, but it’s really only necessary to increase the chances they will get more points in the tax credit rating. She says in order for the organization to get more money from the feds, the City needs to agree to provide a $20,000 interest free loan for 15-years with a “Bullet Maturity” (that is, no principal paid until the end of the 15-year term). The $20,000 will be put in a cash or cash equivalent account to fully secure the loan.

Originally, the developer had asked the City for a $100,000 interest free loan with a 20-year Bullet Maturity. Voorhees said the project would make a Payment in Lieu of Taxes (PILOT) of $750 per year for the first 15-years.

Regency Villa is owned by a non-profit organization and is in the Rural Development Program, a benefit of which is that the tenants will never pay more than one-third of their income, for rent.

A housing study completed by SWIPCO (the Southwest Iowa Planning Council) for the City of Atlantic revealed no new surprises for those searching for affordable housing.

Jeremy Middents

SWIPCO Housing Director Jeremy Middents said a drive-by survey found more than half (54%) of the existing housing units in Atlantic are rated in “Fair” to “Poor” condition. Middents told the City Council Wednesday, more than half of the homes are in need of some sort of repair or major rehabilitation. Another two-percent are beyond hope for rehabilitation or repair, and need to be demolished.

The City has, in the past, purchased abandoned and dilapidated homes with the intent to clear the lots for future, new buildings, and it has participated in programs to improve the existing housing, through grant applications (such as CDBG’s) for owner-occupied homes intended to aid in their rehabilitation. Middents said also, that CADCO – The Cass/Atlantic economic Development Corporation – has helped by participating in the “Paint the town red” program which helps elderly and disables homeowners with the painting of their homes.

He says SWIPCO has applied for the Federal Home Loan Bank Repair Program funds on behalf of the City. Officials should learn next week whether the funds are approved. Middents says many of the homes are in poor condition, and unless the home or property owners get some type of assistance, those homes will continue to deteriorate and become dilapidated. One of the options for the spaces made vacant by demolished homes, according to Middents, is to construct affordable housing units, which the latest Census shows there is a current lack of.

Middents says the Census doesn’t take into account various subsidies that are available. He said a survey of rental complexes are at or near capacity in Atlantic, and several had waiting lists of persons wanting to rent. There’s also concern about the condition of rental units, especially those designed for single families. He said the City could create a Rental Maintenance Code, and back that up by incentives or disincentives for the land or property owners in order to spur them into bringing their properties up to Code and perhaps prompt them to apply for assistance in making additional housing available.

The study shows also, that the City needs new upper- moderate – and affordable homes and rental unit housing, but it needs to create incentives for developers to come up with more “Mixed-use” housing complexes or units. SWIPCO is working with the City to create a plan to address the problem of housing in Atlantic.