The Metropolitan Housing Alliance governing board decided Thursday that the agency will partner with a Memphis-based realty company to develop a former hotel into a low-income apartment complex for senior citizens.
LEDIC Realty Co. wants to redevelop the eight-story property at 2020 Vance St., which is along Interstate 30 between Interstate 630 and East Roosevelt Road. It used to house a Red Carpet Inn as well as a Job Corps program. Although documents refer to it as a former Red Roof Inn, Little Rock City Director Erma Hendrix said the property, which is in an area she represents, was a Red Carpet Inn.
Rodney Forte, the agency's executive director, said the partnership will give the agency 25 percent ownership of the property with no requirement to share in the project's cost, estimated to be about $8 million. The agency also would receive 25 percent of the partnership's profits, he said.
Forte called the partnership "one of the premier opportunities" to increase the availability of affordable housing in the city.
The project, which will create single-bedroom and two-bedroom apartments, totaling 65, will be financed using a mix of low-income housing tax credits and loans. Previously, LEDIC said it would cost about $80,000 per apartment to rehabilitate the property, a price tag that excludes acquisition costs and other expenses.
LEDIC bills itself as "one of the most innovative and productive managers, developers and owners of affordable housing," managing a total of 38,000 units in 16 states, mostly in the south and southwest United States.
Forte said he called for Thursday's special meeting of the Little Rock Housing Authority Board of Commissioners, which governs the agency, to approve the partnership because LEDIC's option to purchase the property was set to expire Monday.
All four of the board members present Thursday voted to allow Forte to go forward with the partnership. Commissioner Ted Dickey sought and received assurances from Forte that the partnership will include adequate reserves to ensure the property is a "quality property" 15 years from now and that the agency will have the first right of refusal should LEDIC want to sell its stake in the property.
The U.S. Housing and Urban Development Department requirements for the tax credits typically require adequate reserves and first right of refusal, Forte said.
After the meeting, Forte said LEDIC likely sought the partnership with the agency to help market the property once it is developed. "They get our name, our strong roots in the community and the fact we're going to be here" long term, he said.
The Metropolitan Housing Alliance uses federal funding from HUD to manage public housing complexes and administer Section 8 housing vouchers.
The agency was formerly known as the Little Rock Housing Authority. It manages 902 public housing rental units, 200 low-rent housing units and 158 market-rate units, and it administers more than 2,000 housing choice vouchers.
Metro on 10/02/2015