MANSFIELD — A plan to build 120 new affordable housing units on Mansfield’s south side could be back on track with shovels in the ground by the end of this year.
Steve Andrews of the Mansfield Metropolitan Housing Authority said the agency plans to reapply for state project funding in partnership with a new, local housing developer.
Andrews notified the MMHA board in February that the Ohio Housing Finance Agency was clawing back $7.7 million (including $5.5 million in bond gap financing) for a planned expansion of the Turtle Creek Apartments due to an issue with the agency’s co-developer.
According to Andrews, Tober Development Company faced delays on another affordable housing project and was unable to contribute its share of the project funds — approximately $6.6 million — in time to meet OHFA deadlines.
“Because that didn’t close on time, that messed some things up for them, they were not able to close our (project) and get our final application into OHFA,” Andrews said.
However, OHFA has since clawed back funds from uncompleted projects and plans to reallocate them under new criteria — including a new deadline.
Andrews told the MMHA board that OHFA officials have expressed support for the Turtle Creek expansion, including a willingness to reallocate funds to the MMHA if it secured a new development partner.
Andrews said the MMHA previously talked with The Provident Companies CEO Robert Bender about working on a development deal in the future.
“As soon as (Bender) saw the Richland Source article, he said, ‘Steve, what’s going on? Why didn’t you call me? How can I help?'” Andrews said during an April board meeting.
Andrews told the board representatives from the Richland County Foundation have verbally committed to a $300,000 contribution for the project, though the MMHA will have to officially reapply.
Andrews said officials from the City of Mansfield have made a similar offer to reinstate $650,000 in HOME ARPA funds it had committed to the project — and there may even be more on the table.
“There is some other funding that is ready to expire if it doesn’t get used, and (the city) would be willing to commit to another $600,000 to $800,000 on top of (the HOME ARPA funds),” Andrews told the board.
Andrews said he plans to submit a final application for the funds to the OHFA in July. After the funds are approved, Andrews said the project will go through three to four months of underwriting.
“If we stick with the same bank and the same company, the underwriting should go smoothly because they’ve already seen all our numbers,” Andrews said.
What is the Turtle Creek extension project?
The existing Turtle Creek Apartments is an affordable senior living complex located on James Avenue. The planned expansion would add 70 two-bedroom units and 50 three-bedrooms units available to renters of any age.
If the project moves forward as planned, 102 units will be rented to households earning 60 percent of the area’s average median income or less. The remaining 18 units will be reserved for those making 30 percent or less of the average median income.
Provident Companies has built, manages several local apartment complexes
Provident Companies has its corporate office at 220 Marion Avenue in Mansfield. The organization was founded by Bernard and Allegra Swack in the 1970s as Buckeye Management Company.
Today, it focuses on the construction and maintenance of affordable housing apartment complexes, according to its website.
“We have been largely a rural company. The only urban properties we have are right up the road,” Bender told the board in April, referencing apartment complexes on Cook Road. “And we have been developing since the 70s.”
Bender said Provident Companies only has properties in Ohio because Bernard Swack wanted to live no more than three hours from any property he owned or managed. Bender told the board in April that the company has 84 apartment communities throughout Ohio totaling around 3,000 units.
Some of the company’s apartment complexes in Richland County include Village View in Bellville, Village Green in Lexington, Malabar Trace in Mansfield, Meadow Estates in Shelby, Myer Meadows in Shelby, Smiley Gardens in Shelby and Applewood, Crestwood Villas and Crestline Manor in Crestline.
Andrews said he spoke with two development companies after the deal with Tober fell through and while both were good options, he preferred Provident for the project because of its local connection and property management experience.
“They’re local. They have a vested interest in this project and in this community. That goes a long way for us,” Andrews said.
Andrews also said Provident was willing to accept a change in the original developer fee structure for the project.
Under the old agreement, the MMHA would invest $1.5 million in the project and receive $1.5 million back in developer fees. Under the new agreement, the MMHA will still contribute $1.5 million but receive $2.4 million in developer fees.
Andrews said the additional $900,000 can be used to cover potential extra expenses from the project or be invested in additional housing projects through the housing authority.