Developer Dominium Renovates 138 Subsidized Apartments Damaged by Tornado
JOPLIN, Mo., Oct 25, 2011 (BUSINESS WIRE) – U.S. Bank, lead bank of U.S. Bancorp (NYSE: USB), in partnership with developer Dominium and state and city officials, announced today at a ceremonial groundbreaking that financing is in place for the $15 million renovation of Oak Meadows into "1502 Michigan Place," a 138 unit affordable housing complex heavily damaged in a tornado that devastated Joplin in May of 2011. Residents moved out when Oak Meadow's 14 apartment buildings were deemed inhabitable due to roof, window and water damage. Nearly all of the tenants are planning to return in the spring of 2012 when the interior and exterior improvements, and a new community center, are complete.
U.S. Bancorp Community Development Corporation (USBCDC), a wholly owned subsidiary of U.S. Bank, committed more than $11 million of federal and state Low-Income Housing Tax Credit (LIHTC) equity in support of the redevelopment and made a $1.8 million Affordable Housing Assistance Program (AHAP) donation for the benefit of the project. Great Southern Bank is providing a construction loan and a more than $1.6 million first mortgage, with funds from Dominium completing financing sources.
Dominium is renovating the exterior of the buildings and landscape as well as completely remodeling the interior units, adding new appliances, mechanical systems and bathroom fixtures. A new community center will house a centralized laundry facility, leasing office, computer lab, indoor and outdoor play area, multipurpose and maintenance room and police substation. During the groundbreaking on October 25, USBCDC also announced a commitment pledge of $10,000 in support of a computer lab within the new community center.
Complete renovations will be finished by April of 2012 with some buildings to be ready for occupancy by February 2012. Residential units in the newly rebranded 1502 Michigan Place will be available to families who make less than $28,860 a year for a family of four, or about 60 percent of the area medium income.
John Schiffer, Director of LIHTC Asset Management for USBCDC, noted that investing in projects like 1502 Michigan Place is critical to putting people back to work while filling the gap in cost-effective housing. "In the wake of Joplin's recent tornado, access to affordable housing and new job opportunities are of critical importance for the recovery of the city," said Schiffer. He noted that at least 96 jobs will be created during the rehab construction process, and four permanent jobs once the building is up and running.
Schiffer recognized the important work of the federal and state governments, its agencies, and local non-profits and faith-based organizations in actively engaging in citywide recovery efforts. He went on to say that the redevelopment of 1502 Michigan Place would not have been feasible without the use of federal and state incentive programs aimed at promoting the rehabilitation and construction of affordable rental housing. Federal and state LIHTC financing and the Missouri AHAP Program–which are administered by the Missouri Development Housing Commission–accounted for 86% of total development costs. The state LIHTC program, in particular, is a major component to the continued development of safe and secure housing for those residents on fixed and low incomes throughout Missouri.
"Affordable housing is desperately needed in Joplin, which currently has less than 1% rental vacancy," said Armand Brachman, co-managing partner of Dominium. "This renovation will put much-needed needed affordable housing units back on the Joplin market."
Joplin Mayor Mike Woolston noted the magnitude of the clean up and rebuilding efforts. "More than 7,500 of our residential dwellings were damaged, of which, approximately 4,000 suffered extensive or catastrophic damage, in the ¾ mile-wide, 13-mile long tornado," said Woolston. He added, "We appreciate that community leaders like U.S. Bank stepped up early on with $100,000 for our relief and rebuilding efforts and that they continue to take part in the restoration of our close-knit community."
Founded in 1972, Dominium is a Minneapolis-based owner, developer, and manager of apartment communities nationwide. For more information visit www.dominiumapartments.com.
About U.S. Bancorp Community Development Corporation and U.S. Bank
U.S. Bancorp Community Development Corporation has been an active direct investor in affordable housing since 1987. It works closely with businesses, nonprofits and governmental development teams to strengthen communities by building safe, secure, affordable housing for families, seniors, residents of public housing, those with special needs, or Section 8 tenants. In addition, USBCDC provides resources and expertise in the rehabilitation of historic buildings, the development of renewable energy facilities and the generation of commercial economic activity in low-income communities. It is a subsidiary of U.S. Bank, the 5th largest commercial bank in the United States, whose parent company is U.S. Bancorp (NYSE: USB). Visit U.S. Bancorp on the web at www.usbank.com.
SOURCE: U.S. Bank
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