At the Aug. 22 Invest Atlanta and Urban Residential Finance Authority board meeting, the city’s economic development authority green-lit over $180 million in bonds, loans and grant funds to various affordable housing projects. It’s part of an ongoing city goal to create and preserve 20,000 affordable housing units by 2030.
In May, Invest Atlanta announced it had already financed 3,314 affordable housing units since January 2022. To be considered “affordable housing,” the units have to serve families who earn 80 percent or less of the area median income — $54,000 for one person. For a family of four, the median income jumps to $86,000. Homes that earn less than 80 percent of the median are considered low income.
The chunk of funding will add over 1,000 units to Invest Atlanta’s development portfolio, with portions set aside for each property at varying portions of the area median income.
The biggest funds came through Lease Purchase Bonds, which give Invest Atlanta the title to the property for a ten-year period. The board of directors approved a $75.5 million bond to Verbena Family Development to build 217 multi-family homes in Dixie Hills.
Invest Atlanta also approved a lease purchase bond for 180 new multi-family units in Collier Heights, with 152 set for people earning 60 percent or less of the area median income.
It’s not the only Collier Heights update — the Urban Residential Finance Authority board also passed $2.7 million in housing opportunity bonds to The Avenue. The project will rehabilitate 238 existing multi-family housing units, keeping 72 at or below 60 percent of the area median income.
The Sierra Ridge apartments were originally built in the 1960s as an “urban oasis for working families,” according to Invest Atlanta Community Development Vice President Phil Perkins.
“Over the years, the project fell into disrepair and really went from bright to black with serious issues there at that location,” Perkins said.
The rehabilitation overhauled sewage and water lines — a redevelopment costing approximately $40 million in total.
The board also passed a $37 million tax-exempt loan to Herndon Square’s Phase Three of development on the Westside. Invest Atlanta previously approved $41.5 million in bond financing to fund the second phase of the development, which plans to include 379 multi-family units, 32 townhomes and retail space.
Developers said the project had to scrap its planned grocery store after LIDL canceled a series of planned developments, including Herndon Square. But a representative said they are “coming up with a more innovative delivery of fresh food” for the mixed-use development.
“It’s going to take a lot of innovation and a lot of hard work,” the developer said.
The board approved a combined $3 million in funding to Bowen Homes as part of an ongoing project to bring 2,000 housing units to 74 acres on the Westside. $1.5 million will come from a housing opportunity bond, and an additional $1.5 million grant will come from the Howell Mill Tax Allocation District.
The site has been empty since it was bought by Atlanta Housing and the existing property was demolished. Of the 2,000 planned new units, 825 of the homes will be priced for people earning up to 80 percent of the area median income. The “affordability period” for the units will last 15 years, though developers say it could become permanent.
Phase One of the Bowen Homes project will focus on building 151 units, a mix of townhomes and apartments in Brookview Heights. In total, 97 units will be set aside at 60 percent of the area median income.
“Bowen Homes Phase One is the first phase of the overall neighborhood transformation created by Bowen residents and community involvement by the owner, Atlanta Housing,” Perkins said.
Making units permanently affordable at no more than 60% AMI within 1/2 mile of the city’s priority transit investment corridors will pay great dividends in competing for Federal Transit Administration grants to build the light rail and bus rapid transit projects that Atlanta wants and needs.
FTA gives a “Medium” rating for the affordable housing component of Project Readiness when the concentration of “Legally Binding Affordability Restrictions” (up to 60% AMI for renters) near station areas is about twice that of the surrounding county as whole. In evaluating mobility improvements of a proposed transit corridor, FTA gives big bonus points for trips by car-free households, so minimizing parking in new developments (at all price points) can also help secure New Starts or Small Starts funding.
It would be great to see Invest Atlanta and Atlanta Housing take their collaboration to the next level by adopting affordable housing investment policies to explicitly maximize the competitive position of Atlanta’s planned transit corridors for FTA grant funding. I.e. Prioritize 60% AMI or below for permanence and aim for zero parking near station areas.
To your point: These projects and several others on the west side bolster the case for the mayor’s proposed Bowen Homes to Ponce City Market (Hollowell Parkway/North Avenue) BRT.
Good subject, informed story