Cape Council looks to endorse tax-credit housing project; developer says such projects benefit communities

The Cape Girardeau City Council will look to endorse a proposed tax-credit housing project today, its second such project since November.

MACO Development of Clarkton, Missouri, wants council support in its efforts to secure tax credits to build 50, two-bedroom apartments on a 6.8-acre site at 550 N. Silver Springs Road.

Without tax credits, developer Jason Maddox said the project won't be financially feasible.

Maddox, president of MACO Development, said the Silver Springs II apartments would be built adjacent to his existing apartments. As with the existing apartments, all of the new units would be rented to senior citizens on fixed incomes, he said Friday.

The existing development, completed within the past few years, was funded with state and federal tax credits, Maddox said.

A development summary submitted to city staff proposes a three-story brick building. Each apartment will have a washer and dryer, range, microwave, refrigerator, dishwasher, garbage disposal and central heat and cooling, the summary said.

"Outdoor areas on the site will have attractive landscaping and the common grounds will be enhanced with a gazebo, picnic area and park benches," according to the report.

The plan calls for three of the apartments to be "completely accessible" to physically handicapped individuals. Another apartment would be usable for those with hearing and visual impairments, the report states.

The company said apartments would rent for about $450 to $550 a month. Five of the apartments would be set aside for elderly with special needs and have monthly rents of $278, the developer said.

"These apartments are quality affordable apartments for seniors on a fixed income of Social Security and a small pension," the company said.

MACO Development is seeking federal tax credits from the Missouri Housing Development Commission.

The Housing Development Commission voted against issuing any state tax credits this year.

"This means that each development that is successful will require more federal funds which will result in fewer developments being built with these scarce resources," the company wrote in the summary.

Maddox said that particularly will affect housing projects in rural areas.

Missouri Gov. Eric Greitens has criticized tax-credit programs and lauded the commission's action to shut off tax credits for low-income housing.

During a visit last week to Jackson, Greitens said the state has issued some $1.3 billion in tax credits for housing projects over the last decade.

He described developers of such projects as "tax-credit millionaires" who "got rich off this." He added, "It is a scam."

Maddox said the governor's criticism of developers is "very frustrating."

Such housing projects benefit low-income tenants, create jobs and have "a huge impact on some of these communities," he said.

Cape Girardeau city staff has voiced support for Maddox's project.

City planner Ryan Shrimplin said in an agenda report to the council the project would provide "safe and affordable housing needed in Cape Girardeau."

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

401 Independence St., Cape Girardeau, Mo.

550 N. Silver Springs Road, Cape Girardeau, Mo.