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Two new plans could bring 88 apartments to city

Separate developers seeking low-income housing tax credits for projects

By Michael Shine [email protected]

Two new developers may hold the keys to making significant progress in addressing a chronic, affordable housing shortage in the Capital City.

If both developments go through, the city could see 88 new apartments.

Jefferson City recognized it had a housing shortage before a May 22, 2019, tornado struck Miller and Cole counties, destroying more than 150 affordable homes in Jefferson City.

If that wasn’t bad enough, the Jefferson City School District and Capital Region Medical Center bought up storm-damaged (or destroyed) lowrent properties after the storm — to meet their expansion plans.

While Jefferson City is conducting a study of the area’s housing needs, a 2018 Analysis of Impediments to Fair Housing Choice found a lack of housing for people with disabilities and affordable housing is concentrated in certain neighborhoods with higher minority populations.

The city is receiving more than $7 million in disaster-relief funding from the tornado and subsequent flooding, but the money isn’t available yet. City staff is working on an application for the funds that details how the state funds would be used, said Rachel Senzee, neighborhood services supervisor. The application is due by May, but she is hopeful to have the application done before then followed by the method of distributing the funds.

El Dorado Plaza apartments

One of the developers, Lela Gruebel, said she was planning to apply for the disaster relief funding, but she didn’t want to keep waiting.

“It’s already been 2½ years since the tornado hit,” she said. “Hawthorne Plaza has 64 units that aren’t being rebuilt and there are other areas have houses that have been bought out, and there’s just a shortage of housing.”

Instead, she’s applied for Low Income Housing Tax Credits (LIHTC) through the Missouri Housing Development Commission. The program offers federal and state tax credits for those investing in low-income housing — either by constructing new buildings or renovating current ones. The credits can be applied for 10 years and can be up to a 9 percent tax credit.

Gruebel’s proposal would build a 48-unit apartment complex on El Dorado Drive; it would consist of two-bedroom to four-bedroom units.

While the program is characterized as low-income housing, Gruebel described it more as workforce housing. The tenants would need to be working and be able to afford rent — without government subsidies, she said. But rent wouldn’t be above 30 percent of a family’s income.

She said it would be primarily for two- to six-person households with an income up to $71,200.

Gruebel said tenants in other properties like this that she’s worked on have included pharmacy technicians, bus drivers and CNAs.

“(They are) all working class people,” she said. “Unfortunately, businesses aren’t paying more than $15 an hour, and most people can’t afford a twobedroom apartment on $15 an hour. So, we’re trying to make it more affordable.”

Her proposal includes 24 two-bedroom, 18 threebedroom and six four-bedroom units along with a community building.

If approved for the tax credits, Gruebel said, work could begin by July and take about a year and a half to construct.

“We hope it goes better, but with COVID, there’s just been a lot of delays on construction and timing and getting materials,” she said. “We’re trying to be conservative and take that into account.”

If her request isn’t approved, Gruebel said she would look at bond options or the disasterrelief funding when it becomes available. She’d also apply for the tax-credit program again next year, she said.

Trade Center Parkway apartments

The other Jefferson City application for low-income housing tax credits came from Jason Otke for a property on Trade Center Parkway, off Old Lohman Road.

The proposal includes 40 two- or three-bedroom units along with a community building.

In 2017, the property was rezoned for multi-family housing development through a request from Lohman Investments, which still owns the property and of which Otke is a member.

Applying for the LIHTC program was discussed at the time.

Otke could not be reached for comment.

‘Potential opportunity’

Mayor Carrie Tergin said she hopes both requests become a reality.

“I just think any time there’s an opportunity to expand housing in Jefferson City, especially for families, that’s important,” she said. “Especially after going through the tornado and the last couple of years with the challenges we’ve faced that’s impacted housing. This could provide potential opportunity.”

Stefani Thompson, Cole County community organizer for Central Missouri Community Action Agency (CMCA), said she’s excited for the projects.

“We’re pretty hopeful that they’re both going to get approved,” she said. “Housing was a need before the tornado, of course. It became an even larger need after the tornado.”

CMCA prefers units with three or more bedrooms, she said, but all kinds of housing is needed.

“The problem we see is a family of five living in a one-bedroom apartment because that’s all they can afford and that’s all that’s available,” Thompson said.

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2021-10-17T07:00:00.0000000Z

2021-10-17T07:00:00.0000000Z

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