The Northwest Georgia Housing Authority expects to close on the acquisition of the Ashland Park Apartments sometime prior to April 15.
It’s a deal the authority has been working on for close to seven years.
“It’s the largest deal Northwest Georgia Housing Authority has closed on and it will be, by far, the most profitable deal that we’ve ever closed on,” said NWGHA attorney Stewart Duggan.
When the deal closes, the authority will walk away with close to $2.7 million in cash and developers fees.
The acquisition from Ashland Park Partners LLC and principal Gary Hammond, and complete renovation of the 184-unit apartment complex, is being financed through a combination of federal and state tax credits, along with private investor lending.
The tax credits will help pay for acquisition of the property, for just over $12 million, and the renovations, which are expected to cost another $11 million — about $60,000 per unit.
Duggan said he anticipates that renovation work at the complex should begin around June 1.
When the original developers of Ashland Park approached the housing authority about taking over the complex, there was no interest in the deal.
‘We were simply the conduit bond issuer originally, about 16 years ago,” Duggan said. “They came to us in distress and wanted us to give them some project-based vouchers, which we agreed to do. But the quid pro quo for that was we got to put our foot in the door and ultimately position ourselves to take over the entire development.”
In other business, NWGHA Executive Director Sandra Hudson said a tentative date of April 9 has been set for an open house at the new Bill Collins Village homes on Charlton Street in Summerville Park. All 10 units have been leased and the tenants are waiting on the completion of landscaping work to move in.
Two more duplex units at Joe Wright Village on Kingston Highway are in the works. Modernization Director Howard Gibson illustrated the rise in construction costs by telling the board that trusses for the new units alone are $11,000 more expensive than the last units that were added to the complex.