An Oklahoma City-based nonprofit organization is continuing its mission to help the poor and minority groups with a recent federal tax credit award that will be used to build affordable housing units in northeast Oklahoma City. The Urban League of Greater Oklahoma City recently received $500,000 in federal tax credits from the Oklahoma Housing Finance Agency to contribute to a $5.1 million housing development near NE 23rd Street and Kelley Avenue.
The project, dubbed Capital Square Villas, will sit on about 4 acres and eventually include 36 town homes designed for families and renting for between $450 and $650 a month. The Urban League, established in Oklahoma City in 1946, is an affiliate of the National Urban League and a United Way agency partner. Dennis Shockley, executive director of the OHFA, said this was not the first time the Capital Square project was brought before the agency. “The process for the federal tax credits is highly competitive,” he said.
After fine tuning and completing the appropriate requirements, however, the project received a reservation for the credits for a 10-year term at $500,000 a year, which will ultimately translate to $5 million in total tax credits. The state receives about $6 million each year in federal tax credits, 20 percent of which is set aside for nonprofits. Shockley said the money is only meant to be a rent subsidy for a project. After receiving the reservation for the credits, a project must also be completed in two years and one month’s time, Shockley said.
Valerie Thompson, president and CEO of the Urban League, said plans for Capital Square began about two years ago. “We’ve been in the housing business for quite some time and the development side a little over ten years in single-family housing,” she said. “Our board looked at our strategic plan and the opportunities to make a larger impact in the housing market and therefore we came up with the idea of doing some multifamily housing.” Thompson said many of the organization’s clients expressed the desire for affordable housing in that part of the city, and added that there has been no significant new housing development in the area for almost 40 years. “We saw that as an opportunity,” she said.
The town homes will be designed for working families, be that a couple with children or a single parent with children, who meet income guidelines and who comply with the lease agreements. And while families may live in the homes as long as they stay current on the rent and qualifications, Thompson said the ultimate goal is to help tenants on the path toward home ownership. A community center will be built at Capital Square to offer counseling for finding employment and on the ins-and-outs of home ownership for residents. “Not everyone can purchase a home today,” Thompson said. “We want to be able to put them in a financial position and educate them to be able to purchase a home down the road.”
The homes will be owned by the Urban League and must remain rental property for 40 years. In June, the Urban League embarked on another northeast Oklahoma City housing plan with about $500,000 in OHFA tax credits toward a $6 million project. That 60-unit project, called Mt. Olive Senior Cottages, is set to provide affordable independent living for senior citizens. It is planned for 10 acres near NW 36th Street and Kelley Avenue, renting for $483 to $587 a month.
In addition to the tax credits, Mt. Olive will be financed through Coppermark Bank along with grant money, the Mt. Olive Baptist Church, and funds from the city of Oklahoma City. The Capital Square project is being financed through Nebraska-based Horizon Bank, the tax credits and funds from the city. Thompson said the Urban League plans to break ground on Mt. Olive next week and begin leasing in January. Capital Square is set to begin construction in the spring of 2008 with leasing beginning in the early summer next year. Sho
Source: JournalRecord.com