By Abby Cavenaugh email@example.com
August 22, 2014
Abbington Grove of Wadesboro, a planned multi-family apartment complex, was one of the recipients of federal tax credits from the North Carolina Housing Finance Agency. The agency announced Aug. 19 the award of federal tax credits and other financing to build $423 million of affordable apartments in 37 counties. The work is expected to support 8,540 jobs statewide and generate more than $13.4 million in local tax revenue, according to a press release from the Housing Finance Agency.
Rezoning for the Abbington Grove apartments was approved in April, Wadesboro Town Manager Alex Sewell said. The apartments will be rented out based on income, he added.
“Specifically, it will be income restricted for families earning up to 60 percent of area median income (adjusted by family size),” explained Stephen Brock, founder of Brock Ventures, Inc., one of the developers on the project. “The units will not be rent subsidized and it is not Section 8. Tenants will pay significant rent and utilities but at a level that is affordable at their income levels.”
The apartment complex will be located at the intersection of U.S. 74 and U.S. 52 in Wadesboro, and will include 48 total units — 32 two-bedroom apartments and 16 three-bedrooms.
“The property will feature ample parking and open space, a management office, community room with kitchenette for holiday parties and other community or private events, furnished computer room, furnished fitness room, equipped play ground, and gazebo with picnic/grill equipment,” Brock said. “The property will be managed by a professional management firm, overseeing the property manager and all manner of tax credit and other compliance. The property will have a full time manager and maintenance person.”
The project was approved for $412,500 in federal tax credits, but Brock explained that will be an annual amount. “It’s really $4,125,000 in federal credits,” he said. “These credits will be sold to an investor as equity in the development, thus allowing us to take on less debt and keep the rents affordable to the targeted residents. As well, we are receiving almost $2 million in N.C. state tax credit based funding — a funding program that is sunsetting due to state budget changes in Raleigh. We would not have been able to build this product in Wadesboro without the N.C. state tax credit, so this was really our last chance. For the foreseeable future, I think we’ll see most tax credit developments in larger towns where the higher incomes and rents can better offset the loss of this funding.”
In addition to providing needed housing in Anson County, Brock said the apartments will also drive economic development. “Employers such as manufacturers looking to relocate want to see this type of housing product,” he said. “As well, there will be approximately $4.8 million spent on direct construction costs, most of which will benefit local and regional labor, subcontractors, and suppliers. Also, this will be visible from Highway 74 and therefore, as clean, attractive new construction it will represent another redevelopment success for the immediate area, perhaps sparking or supporting yet further area investment and redevelopment. Lastly, the town will increase its tax base and realize some up-front fees as well.”
No groundbreaking date has been set yet, but Brock said it will probably be in five to eight months, with the completion of the project following about 10-12 months later.