Washington County provides $1.7 million for affordable housing project; partnership will work with government, business, nonprofit groups

Farm manager Nena Hammer cleans out a chicken brooder house Friday Feb. 17, 2023 at Cobblestone Farm in Fayetteville. Construction has begun on the Cobblestone Farm Community near the farm. The community aims to provide affordable housing to low-income families in a diverse, inclusive environment with additional services and resources that will help them thrive.   Visit nwaonline.com/photo for today's photo gallery.   (NWA Democrat-Gazette/J.T. Wampler)
Farm manager Nena Hammer cleans out a chicken brooder house Friday Feb. 17, 2023 at Cobblestone Farm in Fayetteville. Construction has begun on the Cobblestone Farm Community near the farm. The community aims to provide affordable housing to low-income families in a diverse, inclusive environment with additional services and resources that will help them thrive. Visit nwaonline.com/photo for today's photo gallery. (NWA Democrat-Gazette/J.T. Wampler)


FAYETTEVILLE -- Washington County has taken a small step toward addressing the lack of affordable housing in the area, providing $1.7 million to the Excellerate Foundation, which will pull together other partners to develop a low-income housing development.

The Quorum Court on Thursday approved using the money from the county's share of federal Emergency Rental Assistance-2 funds, with justices of the peace voting unanimously in favor of the project. The county received about $5.7 million in federal Emergency Rental Assistance money.

"It's awesome that we're doing this," Justice of the Peace Evelyn Rios Stafford said of the proposal. "I'm very much in favor of it. Affordable housing is one of the top issues in our region."

Jeff Webster, president and CEO of the Excellerate Foundation, and Justin Fletcher, the foundation's vice president for programs, walked the justices of the peace through the process of making an affordable housing development work during two recent meetings of the Quorum Court and its Finance and Budget Committee. The project will bring together nonprofit groups, builders and developers and the financial sector to access government tax credits and other ways to finance, build and maintain an affordable housing project.

Webster told justices of the peace about $1.4 million will be used for the affordable housing project and the remaining $300,000 will go to Washington County organizations that help people achieve "housing stability" through rental assistance, legal aid, counseling and other services.

Solomon Burchfield is executive director of New Beginnings NWA, a shelter community for people who have experienced long-term homelessness in Northwest Arkansas. Burchfield told justices of the peace he is "really excited" about the affordable housing proposal.

Burchfield said housing discrimination is a real problem, citing historical discrimination through "redlining," in which people were denied access to mortgages and other financing because of their race and similar barriers encountered by people with prison records. He urged the county to ensure the project will be open to all who qualify.

Webster told the justices of the peace the money will go toward building a housing project targeting households within the Arkansas Development Finance Authority's family income guidelines for the Low-Income Housing Tax Credit. Having the county money will allow the foundation and Washington County to leverage additional state and federal money, donations, employer contributions and other sources. The total money available for the project could reach $30 million, Webster said.

Webster said the foundation has worked with Benton County, Bentonville and other local governments on similar projects, including the Cobblestone Farm Community on Wedington Drive in Fayetteville.

The Cobblestone Farm Community is planned to have 90 duplexes and triplexes for rent, along with about 10 market-rate units. Rent for the affordable units would range from $400 to $700 per month. Target annual household income range for tenants would be $29,000 to $68,000.

Fayetteville's City Council unanimously approved two requests related to the Cobblestone project in February 2020. One was to annex about 30 acres north of Wedington Drive, between 51st and 54th avenues. The other was to rezone the land to a mix of agricultural, residential and commercial uses.

New Heights Church owns the land for Cobblestone and has donated it to use for the project. About 20 acres will remain in agricultural use. Another 22 was rezoned for residential use. An additional 2 acres facing Wedington Drive will be commercial.

Jim Hall, co-directional leader with the church, said the Cobblestone project will provide more than shelter.

"We're creating a community -- a healthy, diverse community," Hall said.

Hall said he regularly works to help people in need find housing, but that's becoming more and more difficult.

"People are just being squeezed," he said.

Hall said the design of the Cobblestone project also provides employment opportunities for some residents through the inclusion of the Potter's House thrift store processing center and the adjacent community farm. He said some employees of the thrift stores and the New Heights Church may also live in the development. The church will also use the community center building for events and services, he said.

"This is going to be a highly desirable place to live. It's going to be really beautiful," Hall said.

According to information from the foundation, a tax credit through the Arkansas Development Finance Authority will make it possible to keep rents low at Cobblestone and in the planned new development. The federal Low-Income Housing Tax Credit program has been in place since 1986 to serve that purpose. Arkansas receives about $8.5 million per year, according to information from the state.

Tax credits may be provided to owners of residential rental developments providing low-income housing units, according to information from the authority. The credits are taken annually for a term of 10 years beginning with the tax year in which the development is placed in service or the following year. All developments receiving tax credits must comply with income and rent limitations for at least 30 years.

The authority is designated as Arkansas' Low-Income Housing Tax Credit compliance monitoring agency. According to the agency website, crucial elements of compliance ensure the appropriate number of tax credit units have been occupied by eligible households, following income eligibility guidelines and restricting rents over a specified time period. The authority also monitors to ensure housing tax credit properties are in good and safe condition. The authority can provide guidance to owners in maintaining compliance with all housing tax credit guidelines throughout the compliance period.

Washington County Judge Patrick Deakins said he supports using the county money in partnership with the foundation.

"This will allow Washington County to do something towards putting a dent in the huge problem we know we have with regard to affordable housing," Deakins said. "The beauty of this partnership is that we can use what I call our grant money and help the foundation put together a partnership to do this. Washington County does not have the expertise or the wherewithal to build a project like this or to manage it once it's completed."

Benton County Judge Barry Moehring said Benton County has about $2.4 million in ERA-2 money not yet allocated. Moehring said the Quorum Court's Finance Committee will likely begin considering how to use the money in March. Moehring said the county has received a proposal from the Excellerate Foundation for a project similar to the Washington County plan.

  photo  Hannah Fulwiler ((CQ)) waters sprouts Friday Feb. 17, 2023 at Cobblestone Farm in Fayetteville. Construction has begun on the Cobblestone Farm Community near the farm. The community aims to provide affordable housing to low-income families in a diverse, inclusive environment with additional services and resources that will help them thrive. Visit nwaonline.com/photo for today's photo gallery. (NWA Democrat-Gazette/J.T. Wampler)
 
 
  photo  Construction continues Friday Feb. 17, 2023 at Cobblestone Farm Community in Fayetteville. The community aims to provide affordable housing to low-income families in a diverse, inclusive environment with additional services and resources that will help them thrive. Visit nwaonline.com/photo for today's photo gallery. (NWA Democrat-Gazette/J.T. Wampler)
 
 

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Target population

Census data show 67% of jobs in Northwest Arkansas pay $50,000 or less, while the region’s median household income is about $60,000. This represents 150,000 people that often go unnoticed. They are employed but at high risk of financial instability. This population is known as “asset limited, income constrained, employed,” or “ALICE,” according to a recent report called ALICE in Arkansas: A Financial Hardship Study. The report showed in 2017, 26% of households in Benton County were ALICE households, while 39% of Washington County households were in that group. In Madison County, the ALICE population reached 43% that same year.

Source: The Excellerate Foundation

 


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