Canton Approves $500K Loan for Affordable Senior Housing

A planned 192-unit affordable housing apartment complex for seniors is closer to coming to Canton.

The Canton City Council voted 4-1 May 2 to approve a memorandum of understanding with the Canton Housing Authority to provide TBG Residential a $500,000 loan through CHA to help fund the project. The $500,000 will come from the $11.4 million in funding the city received under the American Rescue Plan Act of 2021.

Councilmember Bryan Roach, who voted against the agreement, said he supports the project to address senior housing needs, but he feels the $500,000 could be used for “immediate needs this year, not something that will take several years to develop.”

Councilmember Dwayne Waterman was absent from the meeting.

TBG Residential is under contract to build the apartments at the corner of Martin Luther King Boulevard and Bluffs Parkway, called the Summit at Hickory Creek. The project will serve residents at 50%, 60% and 80% of the area median income, according to city documents.

Representatives of the developer have said the loan will help “fill the gap for increased construction costs and interest rates,” per a presentation the developer gave the city April 4.

“It breaks my heart to hear that there are seniors in the city who are living in hotels,” Canton Mayor Bill Grant said. “Our roadmap and housing study clearly support this project. There are two major areas of need in the city — more people living downtown that patronize local businesses, and housing for low-income people. Seniors and mixed-income families are looking for housing, but the cost of living has increased for seniors and residents of lower income. Canton lacks affordable senior housing to make that possible. Many apartments are in the area, but many are not affordable for seniors.”

Grant added that, according to the CHA, there are currently 198 applicants on the waitlist for CHA units. For one-bedroom units, there are 105 people on the waitlist — 29 are senior citizens. For two-bedroom units, there are 93 applicants — 22 of are senior citizens.

“I think this is a great investment for the city,” Councilmember Shawn Tolan said.

The city presented the Canton Housing Authority with a drafted memorandum of understanding April 25, which the authority agreed to.

TBG Residential will help pay for construction and permanent financing, with an up to 36-month construction phase with no payments due, and no less than a 15-year permanent phase.

April 18, the city council voted give TBG Residential support in applying to the Georgia Initiative for Community Housing for a 9% low-income housing tax credit for the project.

A second phase consisting of an additional 96 units could later be part of the community, according to city documents. The second phase is not currently a part of this application process.

When complete, the development is planned to have two four-story buildings, each with 96 units, age-restricted to individuals 55 years and older. Each building is expected to have 45 one-bedroom units, and 51 two-bedroom units.

One-bedroom rents will range from $875 to $1,450, with two-bedroom rents ranging from $1,053 to $1,743. If awarded low-income housing tax credits, these rates would be locked in for a period of 15 years, City Manager Billy Peppers said.

City documents show that the company plans to maintain and manage the complex.

The developer also says that there is an opportunity for recreational use on about eight acres of undeveloped land on the back portion of the property.

In 2022, the council approved an application for a 251-unit senior apartment project on this property by a different developer, which later backed out.