MANSFIELD — Steve Andrews said he’s still hopeful the Mansfield Metropolitan Housing Authority can secure the funding it needs to move forward with a proposed affordable housing project in Mansfield.
The MMHA, which serves all of Richland County, hit a bump in the road after the Ohio Housing Finance Agency withdrew $5.5 million in bond gap financing, along with additional related funding, from the proposed Turtle Creek extension project last month.
Andrews, the MMHA told board members in February the agency’s developer, Tober Development Company, has faced delays on another affordable housing project and is unable to contribute its share of the project funds — approximately $6.6 million.
“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.
The result was the bond gap financing was withdrawn due to project delays, since OHFA funds have to be spent by a certain date.
Director of Public Affairs Penny Martin told Richland Source that OHFA has been working with Tober Development Company to finalize the funding application over the last year.
“They (Tober Development Company) have not provided the additional information that was requested as part of the underwriting threshold and financial review process,” Martin said via email.
“Therefore, they cannot close on the project and meet the program guideline requirement of completing construction by December of 2025.”
Martin noted the Mansfield Metropolitan Housing Authority may re-submit the Turtle Creek project for OHFA funding in the future with a new developer.
Andrews said Tuesday that he’s spoken with two different development companies, both capable of taking the project on, and has identified the one he hopes to work with on Turtle Creek.
The next step is working with Tober to “close out” the existing agreement.
“We are responsible for some of the initial development costs, but then we also get some of the deliverables, like drawings, permits and all that,” he said.
Andrews said obtaining permits for the project cost about $85,000 and the MMHA is responsible for some of those costs. However, the permits will be transferrable to a new development deal on the project.
Andrews also said OHFA has recaptured about $16.6 million in funds that were allocated but not used. He said he’s not sure when OHFA will begin accepting applications to reallocate the funds, but he wants to be ready.
“We’re going to be hiring a lawyer who specializes in development stuff,” Andrews said. “We need to make it happen so that all this information could get transferred very quickly to the new developer, so that then, when OHFA reallocates these funds, we can quickly apply for it.
“OHFA will be looking for shovel-ready projects,” he added. “Ours is a shovel-ready project, because we already have the permits, we already have the drawings, we already have so much of it ready to go. So our hope is that we’re going to be first in line for those funds.”
What’s the Turtle Creek extension project?
The Turtle Creek extension project is a proposed 120-unit development on James Avenue, adjacent to an existing 158-unit senior apartment complex.
The planned expansion includes 70 two-bedroom units and 50 three-bedrooms units, which would be open to renters of all ages.
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.
Andrews said local funders, including the City of Mansfield and Richland County Foundation, have expressed an openness to support the project if it gets back on track with a new developer.
“I am certainly not ready to consider the project a loss,” Mansfield’s director of permitting and development Adrian Ackerman said last month. “I am willing to work with Steve (Andrews) on any options the City may have available.”
