Nonprofit Lands Financing for Missouri’s Largest Affordable Housing Community
- Mar 18, 2021
Preservation of Affordable Housing has obtained the necessary financing for the renovation of Hawthorne Place Apartments, the largest affordable housing community in Missouri. According to The Examiner citing POAH Vice President of Asset Management Kevin Baptista, the company had envisioned the $30 million renovation plans before the coronavirus pandemic started. The 745-unit property’s last major renovations were completed in 2003, after POAH purchased the asset.
Completed in 1967, Hawthorne Place encompasses 72 acres at 16995 E. Dover Lane in northeast Independence. The Section 8 community has one- to three-bedroom floorplans averaging 906 square feet in a mix of townhouses and apartment buildings. Common-area amenities include 13 playgrounds, a basketball court and laundry facilities.
In 2007, POAH built the 22,000-square-foot David Stanley Community Center on site. The facility features the Kansas City Boys and Girls Club, a food pantry, a computer room and the Financial Opportunity Center, designed to help families increase their earnings through the Family Self-Sufficiency Program.
The community is 4 miles northeast of downtown Independence and 12 miles east of downtown Kansas City. Located just east of Freeway 291 and less than 1 mile from U.S. Route 24, the property is also accessible through public transportation.
Property improvements underway
Roanoke Construction is part of the development team implementing the current renovation plan at the property. Upgrades will include new HVAC systems and hot water heaters, some new electrical and plumbing fixtures and devices, as well as several completely renovated kitchens and bathrooms, among others. The buildings located in the northern portion of the site will receive new siding, sliders and windows. In addition, 13 units will be reconfigured to become fully ADA compliant. All renovation works will be carried out with residents in place.
Project financing came from both public and private sources. The Independence Development Authority provided $40.4 million in tax-exempt bonds, while the Missouri Housing Development Commission awarded $3.5 million annually in low-income housing tax credits. Other financing came from Boston Financial in the form of tax credit equity of roughly $33 million. In addition, Boston Private and UMB Bank secured construction and permanent loans.
POAH owns and operates more than 12,000 affordable units across 11 states and the District of Columbia. In November, the nonprofit received a $36.5 million affordable financing package for the development of a 135-unit affordable and workforce housing community in Boston.