PLAQUEMINE, La. (AP) — The Iberville Parish Council has authorized Parish President J. Mitchell Ourso to issue a $6.1 million loan-commitment letter to a Mississippi company to build affordable housing in St. Gabriel.
The loan to New Horizons Group is part of more than $40 million allocated under the federal disaster recovery program for hurricanes Ike and Gustav, Thomas David, manager of Iberville's Community Development Block Grant program, tells The Advocate (http://bit.ly/WIGOH4).
Iberville already is using more than half the grant money to build a $20 million medical complex in Plaquemine.
The loan will serve as leverage toward the developer's construction of a 120-unit, multifamily apartment complex on a 16-acre site off Louisiana Highway 74 in St. Gabriel, David said.
Total cost of the project, called Windsor Court, is about $16.3 million, David said.
The company must secure the additional funding needed to complete the project through possible tax credits or other financing, David said.
New Horizons was recommended by a committee that reviewed proposals from seven developers for various sites in the parish.
Iberville will enter into a 30-year agreement with the developers that stipulates the parish can be refunded on its investment should New Horizon renege on its commitment, David said.
David Strange of New Horizons Group said his company has developed about 15,000 affordable housing units throughout the Southeast and helped in recovery efforts along the Mississippi Gulf Coast after Hurricane Katrina.
According to New Horizon's proposal, Windsor Court will have two- and three-bedroom units. Two-bedroom units will range in a rent up to $650 per month and the three-bedroom units will be as high as $695, depending on a family's income.
The development's target is people earning $35,000 to $38,000 annually.
Information from: The Advocate, http://theadvocate.com