MACO applies for $5.8 million in tax credits for Cape housing complex

The Clarkton, Mo.-based company that wants to build a 48-unit apartment complex in Cape Girardeau for low-income renters has submitted its application to the state for $5.8 million in state and federal tax credits.

MACO Development had the application hand-delivered to the Missouri Housing Commission last week in front of Tuesday's deadline, executive vice president Jason Maddox said.

"Now we wait," he said.

The project calls for three two-story buildings with 16 units apiece to be built on 12 acres at the north end of Silver Springs Road near Spruce Street. Planned amenities include a walking track, a community building and a playground.

But it's far from a sure thing -- MACO's bid will compete with dozens of other projects across the state for $25 million in low-income housing tax credits.

The commission's staff will review all the applications before making recommendations in December. A final decision will come in February. The commission will weigh such factors as a demonstrated need, local support and economic feasibility.

About 40 percent of the funds have already been used, allocated last month to tornado-ravaged Joplin, Mo.

MACO's application asks for $669,055 in state and federal tax credits annually for 10 years. The company, which already has three senior housing developments here and 12,000 units across the Midwest, won't do the project without the credits, Maddox said.

"It's just not feasible for us to do it without them," he said.

But it's not uncommon for first applications such as this one to be passed by. Maddox said the company would apply again next year if that happens.

In October, the Cape Girardeau City Council endorsed the project on a 4-2 vote, offering a resolution of support that the state housing commission now requires. But the project got a stinging rebuke from council member Mark Lanzotti, who represents the west-central Ward 5 where the project is planned.

The Sikeston City Council last week declined to endorse a similar MACO project there.

On Wednesday, Lanzotti reiterated his opposition and went as far as to say he hopes the project does not receive the tax credits.

"If the project is not viable without the tax credits, my hope is that they're not successful," Lanzotti said.

The area that surrounds the project already has a high concentration of rental properties, Lanzotti said, which inherently adds stresses to infrastructure and traffic.

Lanzotti also voiced concerns about what he believes a government-subsidized apartment complex would mean to the marketplace. Those subsidies allow MACO to only charge $415 a month, which creates an unfair advantage, Lanzotti said.

Nearby apartment owners may be reluctant to reinvest in their properties because they will be less likely to raise rents that are higher than MACO's, he said.

"It skews the prices," Lanzotti said.

Still, four members of the council gave the project the thumbs-up, saying there is a need for more affordable housing for families in Cape Girardeau. Roy Jones, the housing coordinator for the Community Caring Council, also has said he would welcome the project.

Cape Girardeau developer Larry Haertling owns the 12 acres where the project is to be built. MACO has a one-year option to buy the property, he said, but it will only do so if it is awarded the credits.

He noted that the property is zoned for commercial. That, he said, could bring as much or more traffic to the area than a residential use. He also understands that some are simply opposed to tax credits, which have been a hot-button issue in recent years.

"You know, frankly, I have some concerns about that, too," Haertling said. "I think we need to balance the budgets. But these tax credits are already going somewhere. If they don't go here, they'll go to St. Louis or Kansas City. Might as well be here."

smoyers@semissourian.com

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Pertinent address:

Silver Springs Road and Spruce Street, Cape Girardeau, MO