The O’Fallon City Council passed a resolution on Aug. 22 to encourage funding for Meadowood Estates, a proposed senior housing community to be developed by JES DEV Co., Inc.
The resolution formally gives “the enthusiastic support of the strongest emphasis” to JES DEV Co. in their application to the Missouri Housing Development Corporation [MHDC], seeking an allocation of federal and state tax credits to help finance the construction and provide housing at affordable rent levels.The development would be located on Meadowland Estates Lane, between Tom Ginnever Avenue and TR Hughes Boulevard.
The development would consist of 70 units, with 60 of those targeting seniors with incomes at or below 50% to 60% of the area median income, while the remaining 10 units would not have any income restrictions. The 60 units would have affordable rents of about $285-$600 for one-bedroom units and about $328-$670 for two-bedroom units. All units would have ample amenities, sought-after finishes and open floor plans.Sponsored by Ward 1 council members Dave Hinman and Deana Smith, the resolution passed by a vote of 9-0, with one council member excused.
There is no cost or risk to O’Fallon or St. Charles County taxpayers.
The U.S. Congress delegated the administration of the federal Low Income Tax Credit [LITC] to state agencies to ensure good, quality housing is available where it is most needed. MDHC was created in 1969 by the Missouri General Assembly to administer and provide financing for the construction of affordable housing, using federal and state LITCs. Additionally, MDHC is charged with assuring compliance with all federal and state regulations and statutes via inspections and other audits.
Federal and state housing tax credits are awarded for 10 years to create a “tax credit stream,” used by developers and investors to enable reduction of their costs, thus enabling lower rents. Federal tax credit availability is determined annually by the IRS and is dependent on state population.