The groundbreaking ceremony will be held at 10:30 a.m. at 330 S. Burnett Road.
Construction for the second phase is expected to last 14 months and with some units coming available as early as spring 2023. The project is slated to be fully completed by the end of that year.
The first phase of the project built 50 two-bedroom units and was completed in 2018, creating a pocket neighborhood at the former Community Hospital site on Burnett Road and East High Street.
The project to build those additional 60 units of affordable senior housing is expected to cost a total of about $14.8 million. The first phase cost around $10 million.
The Neighborhood Housing Partnership of Greater Springfield and the Buckeye Community Hope Foundation are leading the project. It seeks to provide rental units to seniors that fit into three tiers of income — those making 60%, 50% or 30% of Springfield’s median household income.
The medium household income in Clark County is $27,900 for a one-person household and $31,860 for a two-person household, as of late last year.
Shannon Meadows, Director of Community Development for the City of Springfield, will discuss the impact this development will have on the community during the ceremony, according to the release.
Many local organizations, financial institutions and government leaders played a role in developing this project. Partners in the project include Ohio Housing Finance Agency, Neighborhood Housing Partnership of Greater Springfield, Buckeye Community Hope Foundation, Ohio Capital Corporation for Housing, RiverHills Bank, the City of Springfield, Fifth Third Bank, NeighborWorks America, HUD, United Senior Services, Mercy Health, the Clark County Combined Health District, and Kapp Construction, the Neighborhood Housing Partnership of Greater Springfield said.
The apartment community was partially financed by equity raised from the Low-Income Housing Tax Credit Program. This federal program provides a dollar-for-dollar reduction in income taxes for developers of affordable housing in exchange for providing below-market rents for at least 15 years. The tax credits are then sold to investors, who provide equity to the project, according to the release.
Money from the second phase will come from $10.1 million in state tax credits that will be sold to generate equity, a conventional bank loan of a little over $2 million, $600,000 in home funds from the state of Ohio, $750,000 in federal home funds from the city of Springfield and a little over $1 million in development fees.