Andy Cohen of TCG Development, a developer of mixed income housing, asked the Henderson City Council during its workshop meeting on Monday, March 24, 2008, for a $100,000 commitment in the form of below market loans.
Cohen said he planned to ask the same amount from the Vance County Board of Commissioners.
The money would be given to the developer in the form of below market-rate loans to be paid back over the next twenty years.
The developer said that he is putting together an application for tax credits to build fifty apartment units for seniors of 55 years and older.
Cohen said that the rents would run from $350 to $475, depending on the size of the unit. He emphasized that tenants would pay full rent rather than subsidized rent, and that tenants would generally still be in the workforce.
Cohen claimed that the project is a $5 million investment in Henderson. He said that if the project went forward, he would subcontract within the community to keep the dollars in Henderson.
TGC Development has done similar projects in the South, the closest being a nine year-old apartment complex in Siler City.
“We don’t lease to anyone,” Cohen said. He said there would be background checks on tenant applications.
The project would include five one-story buildings, a community center, computers, and a central green area. The construction site would be on West Young Avenue.
Cohen told the council that the tax credit process is very competitive with the state, and that only one in four projects are funded.
Council member Garry Daeke asked Assistant City Manager Frank Frazier if the city had previously participated in something like this. Frazier said that the city may have with Maria Parham apartments, but that there was no up-front capital.
Council member Mary Emma Evans asked if the project would go forward if the city denied the request. Cohen replied that the changes of obtaining the tax credits would be significantly reduced.
Cohen informed the council that the deadline for the application is May 8. Henderson Mayor Pete O’Geary said that the council would consider the proposal.
“They like to see local participation,” Cohen said.
The money would be drawn on the back end of the project; the end of 2009 by Cohen’s estimation. The interest rate would be 2%, but Cohen said this would be offset by water and sewage being paid for by the owner.