JAMESTOWN, ND – November 8, 2010 – (RealEstateRama) — Two apartment buildings here will get a new lease on life with renovations and upgrades.
The Jameshouse and Posthouse Apartments, which provides affordable housing for seniors and people with disabilities, will undergo major improvements including installing air conditioning throughout the properties, new windows, roofs and energy-efficient boilers. Dishwashers will be installed in most units, and bathrooms, kitchens and other finishes will be updated. MDI Limited Partnership #102 and its general partner, Gary Stenson, acquired the properties and recently started to update both historic buildings. MetroPlains Management, LLC will continue to manage the properties and oversee the improvements.
“I am a strong believer of preserving historic buildings, and feel that the conversion to multi-family housing has been a good fit for the Posthouse and Jameshouse,” said Stenson. “To ensure that these properties remain viable, it is crucial to keep them up-to-date.”
The properties will continue to be targeted to people age 62 or older and/or disabled individuals of any age. The Jameshouse, located at 715 3rd Ave SE, consists of 70 one- and two-bedroom units. There are 36 one- and two-bedroom apartments in the Posthouse, 222 1st Ave. S.
“Elderly and disabled households can find it a challenge to pay housing expenses. If Social Security is their only source of income, retirees have about $325 to put toward monthly housing expenses,” said Mike Anderson, North Dakota Housing Finance Agency (NDHFA) executive director. “Keeping housing options available and affordable for lower-income families and individuals in our communities is what we strive to do every day. I appreciate the commitment of MetroPlains and Stenson to help provide this important housing resource for the community of Jamestown.”
“It is crucial to provide safe and affordable housing options for our rural populations,” said Jasper Schneider, USDA Rural Development State Director. “I am pleased that Rural Development was able to partner with MetroPlains and Gary Stenson to help renovate and preserve these properties that many call home.”
The Jameshouse and Posthouse renovations are partially funded through the NDHFA’s Low Income Housing Tax Credit (LIHTC) program. The owner received an allocation of $341,183 in tax credits from the Agency which will bring nearly $2.7 million worth of equity to the $7.2 million project.
NDHFA administers the LIHTC program on behalf of the federal government. Each year, the Agency is authorized to allocate more than $2 million through a competitive process to for-profit and non-profit developers. Property owners receive tax credits for up to 10 years based on their capital investment and level of commitment to low-income tenancy. In return, the units are rented to lower-income households at rents generally lower than would be feasible without the credits.
The Jameshouse and Posthouse combined their mortgages with USDA Rural Development to help lower the interest rate and overall make it more efficient to operate. Rural Development also provides rental assistance to 73 residents, thus no tenant pays more than 30 percent of his or her income for rent. The remaining 33 residents receive rental assistance through the US Dept. of Housing and Urban Development.
Other project stakeholders include: the US Treasury and Ramsey National Bank and Trust.
Originally Trinity Hospital, the Jameshouse was constructed in 1913. In 1983, it was substantially rehabilitated and converted to rental housing. The Posthouse was built in 1926. It served as Jamestown’s Post Office until its adaptive reuse to rental housing in 1992.
