Feature Photo: The Arbor Place apartments, seen above, are to be demolished and reconstructed under a proposal that will combine this complex with another apartment community immediately south. Image: Google Streets.
Posted: 9-30-2020
by Adolfo Pesquera
San Antonio (Bexar County) — The San Antonio Housing Trust Finance Corporation agreed to provide $25 million in financing to a nonprofit affordable housing organization for a project that will combine and redevelop two existing, adjacent apartment complexes.
The funds will go toward the acquisition of real estate, the rehabilitation of one apartment complex, and the total demolition and reconstruction of the second apartment complex.
Gilbert Piette, executive director and chief executive officer of Prospera Housing Community Services, told the SAHT Board of Directors during a Wednesday meeting that Prospera Housing owns and manages West Avenue Apartments at 3747 West Ave., and manages an adjacent apartment complex, Arbor Place at 3815 West Ave.
ALT Affordable Housing Services is currently the owner of Arbor Place, a 63,684-square-foot complex on 2.5 acres that was constructed in 1975 and will be demolished under Prospera’s proposal.
The West Avenue Apartments were constructed in 1973, however, Piette said that over the years Prospera had invested in its upkeep. West Avenue Apartments comprise about 154,000 square feet of living space on 7.8 acres.
“The foundations and all of the utilities have been addressed, but the interiors of the apartments need significant work,” Piette said. As part of the project, Prospera will be updating the interiors and bringing the structures of West Avenue Apartments up to current standards.
Arbor Place, however, has foundation issues and other problems. Piette said that complex will be taken down and they will completely rebuild 84 units.
The project has an estimated total cost of more than $41 million.
Upon completion of the project, the combined complex will be known as Arbors at West Avenue. It will contain 234 apartment units that will be rent controlled, with 69 units leasing to tenants earning 80% of area median income; 24 units leasing to tenants earning 60% of AMI; 141 units leasing to tenants earning 50% of AMI; and 43 units reserved to tenants eligible for HUD vouchers.
The $25 million bond application is a component of an 4% low income housing tax credit application that Prospera plans to submit to the Texas Department of Housing and Community Affairs. The San Antonio Housing Trust is also a public facility corporation and Prospera will be seeking a partnership as part of its financing package.
Housing tax credits help developers lower construction costs, which in turn are passed on to future tenants through lower rents. In addition, by having a public facility corporation own the land, the developer can bring down rents further because the real estate is tax exempt.
adolfo@virtualbx.com
