Rea Ventures Group, a developer of multi-family housing, has announced plans to construct a 48-unit apartment complex in Henrietta.
Development of the apartment complex is dependent on a tax credit program through the IRS designed to provide affordable housing for low to moderate income families in areas were a shortage of housing is likely.
The proposed development comes as two new employers prepare to build facilities in Clay County. Triangle Brick will begin construction of a manufacturing plant near Bellevue in a few weeks and Victron Energy is clearing land for a new travel center in Henrietta.
“I’ve been preaching all along, ‘We are going to have a housing shortage,’ and I still believe that,” said Rick Langford, economic development director for the Henrietta Growth Corp.
Robbye Meyer of Arx Advantage, a real estate consulting firm, explained the program to the Henrietta City Council on Monday. Meyer said tax credits are awarded to corporations who invest in similar developments were a percentage of units are rented at discounted rates. The program gives investors a return on their investment upfront while allowing for the construction of non-government affordable housing.
“The tax credit program is completely different from project-based Section 8 housing that everybody has a stigma about,” said Meyer. “It is a totally different program. It is privately funded.”
The complex is designed for units ranging in size from one to four bedrooms. Most units will be available at market rates ranging from $955 to $618 per month with low to moderate income units based on family income.
If built, the complex will be located on a five-acre tract on the north side of Hwy. 287, near the Hwy. 148 intersection.
Application into the IRS tax credit program is competitive, which is the reason Rea Ventures chose Henrietta for a new development. Clay County is one of 30 counties located in IRS Uniform Service Region 2, and a development here is more likely to be accepted than anywhere els in the region, said Meyer.
Proposed developments are judged on finical feasibility, support of the municipality and availability of local funding among other factors. On Monday’s agenda, Rea Ventures requested a letter of support from the city council. Meyer said the company will also ask for letters of support from two nonprofit organizations and from State Rep. James Frank.
Rea Properties also will request a maximum of $22,847 in deferred fees for water and sewer infrastructure to the development site. The amount will be in the form of a loan from the Henrietta Growth Corp. Meyer said the funding is not needed financially, but required to qualify for the program.
Funding through the program will be awarded in December 2015. Meyer said construction time for a 48-unit complex would range from 16-18 months.
Rea Ventures has housing developments across the southeastern United States and Texas, including apartment complexes in Mineral Wells and Weatherford.