The Steinman Basis is pledging $1.5 million to assist a nonprofit developer construct 64 inexpensive residences as a part of a multi-use redevelopment of the one-time St. Joseph Hospital on Lancaster’s west aspect.
The funding, divided between grants and loans, will assist HDC MidAtlantic safe different funding for a five-story, 64-unit constructing at 213 Faculty Ave. with a $15.4-million price ticket.
The housing can be the primary a part of a two-phase undertaking.
As well as, United Disabilities Providers Basis has pledged as much as $750,000 to make 12 of the residences accessible for individuals who use wheelchairs or have visible, listening to or mental impairments. The funding may even subsidize lease for these residence for as much as 15 years.
For the opposite residences, income-based rents can be as little as $200 a month for a one-bedroom residence and no greater than $850 for 2 bedrooms, mentioned Dana Hanchin, HDC president and CEO.
The models can be for folks with incomes starting from $11,000 to $45,000 a yr.
The inexpensive housing is a part of a $90-million undertaking by Baltimore-based Washington Place Equities, which plans to transform the previous hospital into 150 to 175 market-rate residences, places of work and retail. Town pushed for the inexpensive housing element.
Section 2 of HDC’s plan may have about 60 models break up between two websites: 913 Wheatland Ave. and the 800 block of Marietta Avenue. HDC has but to resolve if these models can be residences, townhouses or a mix.
“We’re very lucky to have HDC MidAtlantic in Lancaster serving to us to deal with the inexpensive housing downside the county is going through,” mentioned Shane Zimmerman, govt vp and treasurer of Steinman Communications. “They are surely specialists in tasks like this.”
Zimmerman famous that committing funds to the inexpensive housing piece helps the general redevelopment undertaking transfer ahead. “That’s of giant significance as a result of we do not need to see that a part of town sit darkish,” he mentioned.
Invoice Kepner, president and CEO of United Disabilities Providers, mentioned 12 models doesn’t start to fulfill the necessity for accessible and inexpensive models for folks with particular wants.
“However I feel that is going to get very optimistic recognition that hopefully can result in different nice tasks,” he mentioned.
Tax credit wanted
HDC plans to use subsequent month to the Pennsylvania Housing Finance Company for $11.6 million in federal low-income housing tax credit and to the county and metropolis housing authorities for $850,000 in federal block grants referred to as HOME funds.
Hanchin mentioned the Steinman Basis’s contribution provides to broad group assist that can strengthen the applying for tax credit.
“This undertaking couldn’t have moved ahead with out (the Steinman Basis’s) dedication in assist of inexpensive housing and the transformation of the hospital campus,” she mentioned.
If HDC secures the tax credit via a aggressive software course of subsequent summer time, it expects to shut on the financing in March 2022. It hopes tenants can transfer in by April or Might 2023.
HDC would then search tax credit in 2022 for the undertaking’s second part of about 60 models break up between the Wheatland Avenue and Marietta Avenue websites.
Builders in Lancaster County should compete with tasks throughout Pennsylvania for the scarce federal low-income housing tax credit. Prior to now 10 years, solely 9 tasks totaling 495 new models have obtained tax credit right here.
HDC is making an enormous ask in looking for tax credit for its two-phase, 120-unit undertaking.