A senior citizen residential apartment development is being planned along Lincoln Avenue in O’Fallon near the library.
The $15.8 million development, Lincoln Park Villas, is planned to have 14 buildings with 72 one- and two-bedroom units for people 55 and older of low to moderate income.
RHC Development plans to build the seven-acre development on a vacant parcel at 1159 S. Lincoln Ave., near the library, post office and GCS Credit Union, said Ted Shekell, O’Fallon’s community development director.
“There is a need for what these guys will be building,” Shekell said. “A need for those seniors of low to moderate income to have a place to live.”
There will be 13 one-story buildings, with four to eight units each. A community building with an office also is planned.
Project developers were awarded low-income housing tax credits for the project and have committed to providing rental assistance to residents of 19 units for 15 years, according to documents from the Illinois Housing Development Authority.
The project was awarded $1.27 million in tax credits, which are expected to help generate $13.4 million in equity for the project, according to IHDA.
Developers sell the tax credits to investors who can use the credits to offset their own tax liability. Developers are able to use the equity generated from the tax credit sales to provide rental rates below the market rate for 15 years.
According to the IHDA, all of the units in this development will be available to people earning less than 60 percent of the area median income, which is $42,180 for a household of four people in St. Clair County.
The St. Clair County Housing Authority plans to provide assistance for up to 30 residents to help the development meet its low- to moderate-income requirements. The assistance would be in place for five years, according to a public notice of the request to release funds.
The development would be entitled to 30 vouchers to provide to tenants. Each individual voucher amount would depend on the income level of individual tenants, said David Wagner, executive director of the St. Clair County Housing Authority.
The vouchers would stay with the property, and tenants would not be able to use them for another property if they decide to move, Wagner said.
People who would get to use the vouchers would have to be from the housing authority’s waiting list, and would also have to go through the property manager’s or owner’s screening process for all tenants, Wagner said.
A road is planned in the development that will offer a secondary access to the city library, Shekell said.
Shekell said the city is glad to see developers RHC Developer in the community.
“I think this is a quality project,” Shekell said. “These guys will do a good job.”
Shekell estimated the project would be completed within a year, but final building permit approvals are still pending by the city. The City Council gave approval to the project in the summer.
According to City Planning Commission minutes from May, rents for the two-bedroom units would be $670 a month. The average rent for a two-bedroom unit in O’Fallon is $936. A one-bedroom unit would rent for $573 a month. The average in O’Fallon is $840 a month.