Low-income housing developer asks Cape City Council to support apartments

A $5.8 million low-income apartment complex is being proposed for west-central Cape Girardeau, but the Clarkton, Mo., development company says the project hinges on state and federal tax credits that look to be difficult to get.

MACO Development, which already has three senior housing developments here, wants to build an initial 48 units targeted to families on 12 acres at the north end of Silver Springs Road near Spruce Street, said executive vice president Jason Maddox.

But the company, which owns 12,000 units across the Midwest, won't do the project unless it gets $6 million in state and federal tax credits over a 10-year period, Maddox said.

"But it's going to be a very difficult year for these types of credits," Maddox said. "The money is going to be thin."

The company is asking the Cape Girardeau City Council to give the project its blessing at the council's 7 p.m. meeting today, when members will consider a resolution of support.

MACO hopes to submit the resolution with its application to the 2012 Missouri Housing Commission's Multifamily Rental Housing Production Program. While the commission has always encouraged developers to get community support, this is the first year a council resolution is required, Maddox said.

The application asks for $600,000 in state and federal tax credits annually for 10 years and is due to the commission by Nov. 14, Maddox said.

Mayor Harry Rediger said Friday he had yet to study the issue, but his initial inclination was to support the project, which calls for three two-story buildings that each have 16 units and a walking track, a community building and a playground.

"There have been several plans and proposals in the past in that area that never did come to fruition," Rediger said. "It is in an area that can be developed and that area would be conducive to that type of development."

And MACO is hopeful this is just the first phase, Maddox said. A second phase, which would come in a few years, would contain another 48 units, bringing the total to 96.

The project area in Cape Girardeau is in a highway commercial zoning district, so a rezoning would eventually be required to R-4, a medium density multifamily residential zone. But the city's Comprehensive Plan recommends high-density residential use for this property.

But Maddox is less than certain that the project will receive money from this year round of funding. The housing commission considers 125 or so applications from across the state and usually approve about 25, he said. Last year, for example, MACO submitted a proposal for low-income apartments on LaSalle Avenue, but the commission rejected it because it wasn't close enough to amenities, he said.

Another factor will be that Maddox understands that about 40 percent of the tax credits will be going to Joplin, Mo., which saw many homes sustain significant damage from May's tornado.

Also, St. Louis and Kansas City will eat up a large number of available credits, Maddox said. His best guess is that there will be enough money to do eight other projects across the state.

The commission will work with a total pool of about $25 million. It will weigh all the applications at its February board meeting and announce its selection afterward, Maddox said. It's not uncommon for developers to have to submit an application two or three times, he said.

The company already owns 130 units aimed at seniors in its three properties here -- Heritage Manor, Rosebrook Apartments and West Court Manor.

"We're hopeful we can get the funding," Maddox said. "If not, we can resubmit again next year."

A need for low-income housing exists in Cape Girardeau, said Roy Jones, housing coordinator for the Community Caring Council. A good portion of the city's low-income housing has been wiped out by Isle of Capri's new casino development, flooding in the city's Red Star area and when the corridor was cleared for the route to the Bill Emerson Memorial Bridge, Jones said.

"All of those were affordable housing areas," Jones said. "We have replaced it somewhat, but there is a definite need for more."

The city has also done a better job of replacing senior housing than it has with affordable housing for families, he said, meaning an even greater need exists for projects like the one MACO is proposing.

"We'd be thrilled to have that housing available a year from now," Jones said.

smoyers@semissourian.com

388-3642

Pertinent address:

Silver Springs Road and Spruce Street, Cape Girardeau, MO

401 Independence St., Cape Girardeau, MO