Developer wins Council backing for proposed south Cape project

Chad Hartle of RCH Development has been developing affordable housing projects since 1987 and his latest initiative, South Side Village (SSV), won the endorsement of the Cape Girardeau City Council on Monday.

The proposed 42-unit mixed-use development is planned along Walnut Street between South West End Boulevard and Beaudean Lane, entirely within the city's Ward 2.

SSV's purpose, according to the RCH proposal, is to provide housing for homeless and low-income individuals and families.

The council's approval gives RCH an easier path to acquire needed financing and tax credits through the Missouri Housing Development Corp.

MHDC provided credits to one of Hartle's most recent projects, Liberty Apartments — in the 1100 block of Walnut Street, east of West End Boulevard — which was occupied in May.

Hartle said there are many similarities between Liberty and South Side Village but one significant difference: SSV renters, after a 15-year compliance period, have the chance to buy the unit they're occupying.

"All 42 units will be eligible for eventual purchase, and I'm really excited about the homeownership component," Hartle told the Southeast Missourian.

The Community Partnership of Southeast Missouri (CPSEMO) will own SSV, as is the case with the earlier Liberty Apartments project.

"Our goal will be for tenants to get traditional financing (to buy) and we will have worked with them extensively to prepare for that chance," CPSEMO executive director Melissa Stickel said.

"The homeownership part of this (project) is a game-changer," said Mayor Bob Fox, in remarks before the council's unanimous vote to support RCH's plan.

"This project fills a huge need," added Ward 3 Councilman Nate Thomas.

Process

Hartle said obtaining tax credits through the state's Low Income Housing Tax Credit (LIHTC) program is a competitive process.

"It's very competitive (and) the state has only enough resources to fund about one-fourth of the applications submitted each year," he said.

Information was furnished to council members to shed light on the project.

"South Side Village's most compelling attribute is the potential for homeownership. The south side of Cape Girardeau is overwhelmingly rental. The opportunity for homeownership adds stability, pride of ownership, and the creation of wealth that helps to break the stranglehold of generational poverty that is rampant in the area," the documentation read.

"The vast majority of the residences in south Cape is rental. Homeownership is one of the primary tools used to build (equity) and is often inaccessible to low-income individuals and families."

Rental unit structure

• Seven of the 42 SSV one-bedroom units at 30% "area median income (AMI) will be reserved for the homeless with rental assistance provided by CPSEMO.

The remaining 35 units will be priced monthly.

• One one-bedroom unit at 60% AMI will rent for $325.
• Eight two-bedroom units at 60% AMI will each rent for $495.
• Six two-bedroom townhomes at 60% AMI will each rent for $495.
• Six three-bedroom townhomes at 60% AMI will each rent for $575.
• Nine three-bedroom single-family homes at 60% AMI will each rent for $695.
• Five three-bedroom single-family homes at 80% AMI will each rent for $795.

Timing

Hartle said applications must arrive to MHDC no later than Oct. 8 with financing and tax credit awards revealed to applicants by early December. Successful applications, he said, will be funded six to nine months following approval.

"There's an extreme shortage of affordable housing in south Cape. The opportunity for homeownership even multiplies the impact of South Side Village and I'm very excited about this project," Hartle said.