HIGHLAND, Ill., Aug. 20, 2024 (GLOBE NEWSWIRE) — Turnstone Development, a nonprofit developer of affordable housing based in Illinois, and North Arrow Development, a full-service real estate developer, have partnered with WNC & Associates (WNC), a family-owned business known as both a pioneer and leader in the affordable housing industry, in closing a deal to begin construction on Flax Meadow Townhomes II in Highland, IL, just 35 miles east of St. Louis, MO. Completion of the first two townhomes is expected in May 2025.
The development, to be built on former farmland at 237-257 Flax Drive in Highland, will be the second phase of the existing Flax Meadow Townhomes. The 32 units will consist of seven single-story accessible units and 25 two-story units. Overall, the project has four one-bedroom, 12 two-bedroom, and 16 three-bedroom units. Five of the units will be reserved for formerly homeless or disabled households that come from the State of Illinois Referral Network, 10 of the units will be reserved for families making 30% of area median income (AMI), and 22 units are designated for families making 60% of AMI.
The total development cost of the new community is $12.6M, including hard costs. Common amenities at Flax Meadow Townhomes II will include bike racks, storage, playground, community garden, on-site management, CCTV/cameras, and a courtesy officer. On the interior, the modern units will all be equipped with an electric range, refrigerator, garbage disposal, dishwasher, microwave, washer/dryer machines, low-flow toilets and faucets, central air conditioning, window blinds, carpeted stairwells, LED lighting, luxury vinyl flooring throughout the living area, kitchen, and bedrooms, and sheet vinyl in bathrooms. Each home will have a patio or balcony.
“We are pleased to be partnering with Turnstone and North Arrow on the second phase of this successful property,” said Michael C. Byrd Vice President – Originations at WNC. “Given the demand in the market and the quality of the finished product, we are confident the project will provide safe, high-quality housing in a market that really needs it.”
The deal was structured with 9% federal equity under the non-profit set-aside. Additionally, the project will be financed with a $1.35M permanent loan from IFF, and a $500K soft loan from the Madison County HOME program. The Illinois Housing Development Authority (IHDA) has provided a $2.8M grant, which will be loaned to the partnership through Turnstone Development. Additionally, Horizon Bank will be providing a $5.7M construction loan. Finally, five units will receive Housing Assistance Program (HAP) Project Based Vouchers from the Madison County Housing Authority.
“There is an overwhelming demand for safe, sustainable quality affordable homes,” said Sue Wiemer, Interim Executive Director of Turnstone. “We are thrilled to be underway with construction on our second phase of Flax Meadow in partnership with North Arrow Partners. We heard the need for additional affordable housing in Highland and are so grateful for the partnership and support from the City, the Illinois Housing Development Authority, WNC, IFF, Madison County, Madison County Housing Authority and Horizon Bank, all who were essential in making this happen.”
This project is designed to help 32 families in creating a safe and affordable community. Flax Meadow Townhomes will be conveniently located within 35 miles of St. Louis and also has middle and high schools within walking distance.
About WNC & Associates
Founded in 1971, WNC & Associates (WNC) is a family-owned business known as both a pioneer and leader in the affordable housing industry. WNC and its affiliated companies specialize in tax credit syndication, affordable housing development, and preservation equity fund investments. Combined, the WNC companies have acquired approximately $18.2 billion in assets across 48 states, including more than 1,800 affordable rental properties that house more than 1 million residents. With offices in 16 states, WNC has partnered with more than 400 developers and 125 institutional investors. To learn more, visit: https://www.wncinc.com/.
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