GREEN BAY - A nearly complete affordable housing development on Broadway could receive a loan funded with the city's American Rescue Plan Act (ARPA) dollars to cope with rising material and labor costs.
Green Bay's Redevelopment Authority on Tuesday approved a $500,000 ARPA Large Scale Affordable Housing Loan for The Fort LP, a subsidiary of Indiana-based TWG Development , and its 233-unit The Fort at the Railyard affordable housing development at 419 Donald Driver Way. The site is part of the Rail Yard Innovation District .
TWG reported about $1 million in cost overruns due to rising material and labor costs and requested an ARPA loan in that same amount. The program was created to help affordable housing developers close these sorts of funding gaps.
Green Bay budgeted $1.5 million of its $23.7 million ARPA allocation to affordable housing gap financing and city staff recommended reducing the loan amount to $500,000, 33% of the total budgeted to assist affordable housing developers.
The loan would carry a 2% interest rate and would be repaid over 20 years.
The Green Bay City Council still needs to approve the loan request.
This is not the first time the L-shaped building along North Broadway has struggled with financing. TWG started construction in fall 2020 only to have an investor pull their investment in the project, forcing work to halt. It would take two years and affordable housing tax credits to resume construction in fall 2022.
How much will it cost to rent the rent-controlled and market-rate apartments in The Fort at the Railyard?
TWG used low-income housing tax credits to finance construction of The Fort at the Railyard and so it will set aside 187 of the 233 apartments for households that earn less than 60% of the area's median income and charge those tenants less than the market-rate units.
To qualify for the rent-controlled units, a household of one person would have to earn less than $41,160, a household of two no more than $47,040 and a household of four no more than $58,800.
The Fort's website indicates the one-bedroom, low-income housing units will be available for $967 per month. The two-bedroom, low-income units will be available for $1,153 per month.
The building's one-bedroom market rate units have monthly rents that range from $1,350 to $1,525 while the two-bedroom units have monthly rents that range from $1,950 to $2,150.
Contact Jeff Bollier at (920) 431-8387 or jbollier@gannett.com . Follow him on Twitter at @JeffBollier .
This article originally appeared on Green Bay Press-Gazette: Why a nearly complete, Broadway affordable housing development sought a $500K ARPA loan
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