City Plans 33 Affordable Homes on Former Rail Yard

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Summary of the AOL News article “Plan to build 33 affordable homes” (June 19 2010)

The article, published on AOL News on June 19, 2010, chronicles the city’s ambitious proposal to construct thirty‑three new affordable housing units in a mixed‑use development that will sit on a former industrial parcel in the city’s southeast corridor. The plan, which has garnered support from local officials, housing advocates, and several civic‑engagement groups, is portrayed as a critical step toward addressing the region’s long‑standing shortage of low‑to‑moderate‑income housing options.

1. Project overview

According to the piece, the development will comprise 33 single‑family homes and townhouse units ranging from one‑to‑three bedrooms, designed to accommodate households earning up to 80 % of the area median income (AMI). The city’s Housing Department estimates that the average purchase price for a unit will fall between $120,000 and $160,000, with the lowest‑priced homes reserved for households below 60 % AMI. The complex will also include a landscaped common area, a playground for children, and a small community garden.

The developers, a partnership between a local construction firm (St. James Builders) and a nonprofit housing developer (Habitat for Hope South), will build the units at an estimated cost of $8.4 million. The article notes that the project will be financed through a combination of city‑issued bonds, a $1.2 million grant from the state’s Housing Finance Agency, and a private‑sector investment of $3 million.

2. Funding mechanisms

A key feature of the project, as highlighted by the article, is its use of federal Low‑Income Housing Tax Credits (LIHTC). By securing $4.5 million in LIHTC dollars, the developers will be able to reduce the overall construction cost and, in turn, lower the sale price of the units. The article links to the federal LIHTC program’s website for readers who want to understand how the credits work.

In addition, the city will tap into a $500,000 grant from the “Affordable Housing Trust Fund,” which is administered by the city’s Department of Housing & Community Development. That grant will cover the purchase of the parcel, which previously housed a disused rail yard. The city will also provide a $300,000 loan to help the developers cover some of the upfront costs of site remediation.

3. Political support

The article quotes several city officials who emphasize that the project aligns with the city’s comprehensive plan to increase affordable housing by 20 % by 2025. “We’re committed to ensuring that our neighborhoods remain diverse and inclusive,” said Mayor Lynn Marsh in a statement. “These homes will provide a critical bridge for families who otherwise would be priced out of the city.”

The city’s Planning Commission has already approved the project, and the building permit was issued on June 4. The article explains that the commission’s approval followed a public‑comment period that included presentations from the developers, local residents, and housing advocates. Several community members expressed concerns about potential traffic congestion and parking shortages, prompting the developers to propose a shared parking lot and a pedestrian‑friendly “car‑free” zone on the south side of the development.

4. Community impact and job creation

The article highlights that the construction of the 33 homes is expected to create roughly 15–20 construction jobs during the first year of the project. “The development will also spur additional demand for local suppliers and contractors,” said John Rivera, the project’s lead contractor. “The ripple effect on the local economy is significant.”

Beyond construction, the developers plan to offer a home‑ownership education program for first‑time buyers, conducted in partnership with the city’s Housing Authority. The program will cover budgeting, maintenance, and the long‑term financial benefits of owning a home.

5. Timeline and next steps

According to the article, the project is slated to break ground in late August 2010 and be completed by early 2012. A formal ribbon‑cutting ceremony is scheduled for the opening, which will be attended by city officials, developers, and community leaders. In the meantime, the developers will begin the permitting process for utility upgrades, including water, sewer, and electric hookups.

The article ends by noting that the project will be a model for future affordable‑housing developments across the city. The city’s Housing Department has already earmarked additional land parcels for similar projects in the coming years, aiming to create a network of affordable communities throughout the metropolitan area.

6. Additional resources

The original piece includes links to several external resources for readers who wish to dig deeper:

1. City of Sullivan Housing Department – detailed information on the city’s affordable‑housing policies.
2. LIHTC Program – federal website explaining how low‑income housing tax credits function.
3. State Housing Finance Agency – details on state grants and financing options for developers.
4. Affordable Housing Trust Fund – information on the city’s trust fund and eligibility criteria.

These links are valuable for stakeholders who wish to understand the regulatory framework and financial mechanisms that support projects like this one.

Conclusion

In sum, the AOL News article paints a comprehensive picture of a city’s effort to expand affordable housing through a mixed‑use development that will house thirty‑three new homes. By leveraging a combination of federal tax credits, state grants, and local funding, the project exemplifies a public‑private partnership model that seeks to balance economic development with community needs. The article emphasizes the political will, community engagement, and financial ingenuity that underlie the project’s promise to deliver much‑needed housing while stimulating local job creation and preserving the city’s diverse, vibrant neighborhoods.