Financing through the Washington State Housing Finance Commission is resulting in the construction of 116 apartments for seniors in Milton.
The Alder Ridge Apartments will offer what developers are calling affordable housing for low-income adults who are 62 or older. Some units will be reserved for individuals with disabilities or other special needs.
Construction is expected to begin in the first quarter of 2013.
“We’re excited to be a part of making this housing possible,” said Karen Miller, chairwoman of the Housing Finance Commission.
The commission financed the project by issuing $8 million in tax-exempt bonds, combined with $4 million in housing tax credits for the developer. The financing package also includes a taxable loan backed by the U.S. Department of Housing and Urban Development. The public partners allow the project to be supported by private lenders without the use of state funding.
Plans for Alder Ridge call for 74 one-bedroom and 42 two-bedroom units, including 17 garden-style apartments with private access to the outside. Other amenities in the three-story complex will include a clubhouse, beauty salon and computer lab.
Village Development LLC, based in Federal Way, will own and manage the complex, located at 38338 28th Ave. S. in Milton. Alder Ridge is Village Development’s third affordable-housing project with the Housing Finance Commission.
The Housing Finance Commission will stay involved after the project is built to provide training and technical assistance to the owner and property manager, who must follow federal and state requirements for the next 30 years. The relationship will keep rents low and help the owner avoid any financial pitfalls from inadvertent noncompliance, officials said.
“It’s great to have a funding partner like the commission who can work with us as a team and solve problems along the way,” said David Baus, project development coordinator for Village Development. “It takes all of us to build communities and build families.”
According to the National Association of Home Builders, the local impact of building 100 apartments in a typical development includes $7.9 million in local income, 122 local jobs, and $827,000 in taxes and other revenue for local governments. In the long term, 100 apartments will contribute an estimated 30 local jobs, $2.4 million in local income and $441,000 in taxes each year, the associate estimated.
The Housing Finance Commission is a self-supporting organization with a mission of increasing housing access and affordability. The commission, which receives no regular state funding for its operations, works with lenders, investors, developers, non-profit organizations, first-time homebuyers, beginning farmers and ranchers, and energy companies to generate private investment dollars.