Condo plan isn't dead despite tax credit denial or Tax credits denied for senior condos
Senior housing developer could reapply next year, wait for private loan or Developer could reapply next year, wait for private financing
July 6, 2010 | 0 comments
The state's decision to deny Stone Pointe senior housing development tax credits this year won't kill the project, developers say.
"We're basically in holding mode," developer and property owner David Israel said. "We're still committed to the project."
He sees two options for funding the project: submitting another application in 2011 or waiting until the housing market improves and private financing becomes available.
Both options mean that Israel's initial goal of starting construction on the 82-unit building before the end of the year won't be met.
The Wauwatosa Common Council in 2006 approved plans to construct three buildings of condominiums at 62nd and State streets. When the housing market - specifically interest in buying condos - tanked, Israel partnered with senior housing developer Tom Monico and brought forward a plan revision calling for the first building to provide rental apartments for low-income seniors.
The council approved changing the plans the same week funding applications were due to the Wisconsin Housing and Economic Development Authority. Israel said he was pressed for time to submit documents requesting $1.56 million in affordable housing tax credits.
In June developers learned Stone Pointe wouldn't be getting any of the $360 million granted by WHEDA to developments around the state. The project was deemed ineligible.
"When developments are considered ineligible it's because they are not eligible for tax credits - either for threshold or market reasons," said Kate Venne, director of communications for WHEDA.
She would not provide specific reasons why Stone Pointe was not chosen, but the agency's website provides some possible insight.
When it comes to market threshold, if decision makers determine "that an insufficient market exists for the proposed development, or that the proposed development will have a significant impact on existing multifamily housing in the market, or that the proposed development will have a negative impact on other developments in the market area currently under construction or lease-up" they can reject the application.
A project can also be eliminated from consideration if WHEDA decides the requested credit dollar amount exceeds what is necessary to make the project financially feasible.
Each project is scored based on criteria such as size, market appeal, design aesthetics and accessibility, and the developer's experience. WHEDA does not release tax credit applications or scoring results until a year after the money is allocated "due to the highly competitive nature of the tax credit process," Venne said.
The number of developments vying for tax credits made it a much more competitive year, said attorney Brian Randall, who is representing the Stone Pointe developers. Of the 84 applicants, 46 were denied.
Being turned down for the tax credits this year does not preclude a developer from trying again in 2011, he said, adding that he knows of projects which made the list this year that had been denied in prior years.
AT A GLANCE
Here's how low-income senior housing developments in surrounding suburbs faired in the 2010 WHEDA housing tax credits process:
| Community | Development | Number of units | Tax credits requested | Status of tax credits |
| Wauwatosa | Cedar Glen at the former Public Works Yard at 113th Street and Walnut Road | 80 | $1.04 million | Approved |
| Franklin | Foresthill Highlands off 76th Street between Ryan Road and Drexel Avenue | 24 | $206,000 | Approved |
| Glendale | Glendale Senior Apartments | 80 | $1.2 million | Not approved -ineligible |
| Greendale | Berkshire adjacent to Southridge Mall | 90 | $1.3 million | Not approved -project on hold |
| Greenfield | Preserve at Greenfield at 94th Street and Layton Avenue | 66 | $1.02 million | Not approved -Ineligible |
| New Berlin | New Berlin Senior Apartments at 149th Street and National Avenue | 76 | $1.09 million | Approved |
| Oak Creek | Life Creek Village | 80 | $1.1 million | Not approved -ineligible |
| West Allis | Beloit Road Senior Housing at 72nd Street and Beloit Road | 104 | $779,000 | Not approved -project on hold |
| West Allis | Six Points between Greenfield and National avenues and 65th and 66th streets | 60 | $828,00 | Not approved -Ineligible |
E-mail Newsletter
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter
Get the Newsletter!
More from News and Features
- Business Calendar: Feb. 16-March 28
- Grab a Bite: One Way Cafe: A Tosa Village melting pot
- Teen accused of trying to rob four people
- Business Calendar: Feb. 15-25
- St. Jude embraces history
- Innovation Park road plan reviewed
- Fight in mall parking lot leads to charges (5)
- Police Report: Feb. 8
- Striking a balance between growth and green space
- It can't be business all the time
0 COMMENTS