Company Gets Tax Credits Approved For Ark City Senior-Housing Project

Joplin, Missouri-based Red-Wood Development has been approved for Low-Income Housing Tax Credits, clearing the way for a senior housing project, according to statement from the city of Ark City.

Red-Wood applied for the LIHTC program in 2017 and 2018, finally being awarded the credits this year by the Kansas Housing Resources Corporation, which administers the federal program in Kansas.

The tax credits will make possible a planned 48-unit low-income senior housing development at 1401 S. Sixth St. in Arkansas City, just east of Veterans Memorial Lake, as well as new public amenities.

Red-Wood plans to construct 36 rent-subsidized apartments, in accordance with LIHTC program requirements, as well as 12 more two-bedroom duplexes to be leased at market rental rates. Both sets of apartments will be a mix of one- and two-bedroom units, accompanied by a large community building.

Unit sizes will be approximately 650 square feet for a one-bedroom unit, with LIHTC units renting starting around $380 a month, and 995 square feet for two bedrooms, with LIHTC rents up to $520 a month. Because the Lake View Estates project is income based, though, actual rent amounts may vary.

Construction potentially could begin later this year, but should commence no later than in mid-2019.

The developer also has pledged to complete the paving of the Veterans Memorial Lake walking trail on the west side of the property and construct one public restroom, with both men’s and women’s sides, directly west of the existing Lions Club pavilion — all at no cost to the City of Arkansas City.

Both projects were identified on the City’s Capital Improvement Plan as future capital projects, so this agreement will save taxpayer money on those items as well as generate new property tax revenues.

The City has consented to assist with the project using its Neighborhood Revitalization Program or possibly by issuing Industrial Revenue Bonds, as well as aiding with the extension of utilities to the site.

This development will improve Arkansas City by providing needed housing and park improvements, all at minimal cost to citizens, as well as satisfy the 2013 Comprehensive Plan and 2014 Cowley County Comprehensive Housing Study, which identified new senior housing and low-income housing as needs.

To read the full city press release, click here.