Peoria Standard

Integrity Housing, a non-profit developer of multi-family housing, has proposed the purchase of Prairie Vista Apartments, located at 2401 West Alta Road in Peoria.  The non-profit has over twenty years of experience with a portfolio of over 3,000 units located throughout 35 communities in the United States.  They specialize in owning and operating affordable communities and have proposed to work with Ascenda Capital, an investment and development firm, to create a 501(c) 3 and purchase the property for $45M.  Additional renovation work is planned, including roof replacements, concrete paving, water heater upgrades, and interior unit renovations.  The property consists of 304 units.

The overall cost of the project totals $60M.  Ascenda Capital Corporation, based out of Beverly Hills, CA, approached the Tri-County River Valley Development Authority (TRVDA) about issuing not-for-profit multi-family housing bonds for the purchase and renovation project.  TRVDA can issue tax-exempt private activity bonds for manufacturing, housing, local governments, education, docks and wharves, and non-profits.  The debt service is the responsibility of the entity that requests the bonds, TRVDA is the financing conduit.  Of the total amount, $45M would be applied to the purchase with the $4-5M renovations of the apartments.

City Manager Patrick Urich noted “Families are considered housing burdened if they spend more than 30% of their income on housing.  This developer intends to market these apartments to middle income, working families in Peoria.”

The proposed project allows for additional affordable housing options for families with affordability as the goal for 75% of the units.  In the proposed project, 20% (or 61 units) would be available to community members making 50% of the area median income (three-person household making $34,350), 55% (167 units) for those making 80% of the area median income (a three-person household with an income of $54,950), and 25% (76 units) at market rate.  Under IRS regulations, there is no specific rental scale that integrity Housing must charge for the income-specific units.  The income-specific units will be achieved as vacancies occur and no current tenants will be displaced.

A public meeting is scheduled for April 6, at 6 pm in the gymnasium at Dunlap High School, 5220 W. Legion Hall Rd., Dunlap, IL 61525, for the public to hear from the developer about the proposed project, and for questions to be answered that the public has about the project.  The City Council is anticipated to vote on the issue at the April 12 City Council meeting.

Please see the below Question and Answer handout for additional information.