HV and RHA Celebrate the Opening of Hickory Street Apartments
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Barbara Fields, HUD NE Regional Administrator (left) joins RHA and HV at the ribbon cutting ceremony |
The neighborhood transformation is so complete that even the streets have new names.
On October 27, the Rutland Housing Authority (RHA) and Housing Vermont, RHA’s development partner, unveiled seven new buildings with a total of 33 apartments off Forest Street in Rutland’s southwest neighborhood. The buildings at the new Hickory Street Apartments range in size from duplex structures to a building with 12 apartments.
“Not only does the new neighborhood offer a variety of building styles, but it also provides homes for families with a wide range of incomes and household size,” said RHA Executive Director Kevin Loso.
Seven of the 33 apartments are market rate units with rents ranging from $665 for a one-bedroom unit to $1,019 for a three-bedroom apartment, including heat and hot water. Fourteen apartments will be available for low-income households who will be eligible for rental assistance. The 12 remaining apartments will be rented to households with modest incomes (for example, less than $37,750 for a family of four). Rents for these apartments start at $585 for a one-bedroom unit.
Built almost 40 years ago to far less stringent specifications than are required today, the Forest Park public housing site suffered from widespread drainage problems, sunken manholes and catch basins, damaged sewer lines, and cracked entry stoops and concrete walks. The original 75 apartments depended on electric-powered heat and lacked energy- and water- efficient appliances. Inadequate moisture barriers resulted in mold, mildew and rot.
Hickory Street Apartments is a mixed-income community with a much improved site plan, building designs and amenities. The site work was extensive, including new streets, water, sewer, stormwater, utilities, landscaping, lighting, parking, sidewalks and green space.
Achieving substantial energy savings was a key goal. The apartments will be served by high efficiency, propane-fired boilers (one per building). Solar panels in the larger buildings will pre-heat domestic hot water.
The total development cost, including demolition of the old apartments, asbestos abatement, resident relocation and capitalizing operating reserves was $8,488,556. Financing came from a mix of private equity, bank debt and public grants and loans. Hickory Street Apartments is the first public housing, mixed-finance transaction completed in Vermont.
Senator Patrick Leahy commented: “The transformation of Forest Park into Hickory Street is far from the normal non-profit housing development. These organizations have turned a poorly planned, decades-old, fully-subsidized housing project into affordable homes in a mixed-income environment that complements the community they were built in. This first-in-Vermont public housing authority effort creates a model for redevelopment of outdated ‘projects’ that fail to meet the needs of residents or communities across the state.”
Leahy secured a $525,000 grant for the development of Hickory Street.
Other permanent financing sources included $4,041,056 in equity invested by TD Bank. The federal Department of Housing and Urban Development (HUD) provided $2,346,500 in public housing stimulus funds. The Vermont Housing and Conservation Board loaned $170,000 from its general fund, $500,000 in HOME program funds, and $50,000 in capacity funds. The City of Rutland obtained $750,000 from the Vermont Community Development Program. Other sources included the Rutland Housing Authority and Efficiency Vermont.
"Here in Rutland we see just how powerful partnerships at the federal, state and local level can be in creating jobs, saving energy and building affordable homes,” said Barbara Fields, HUD New England Regional Administrator. “Congratulations to Housing Vermont and the Rutland Housing Authority for making Hickory Street part of HUD's efforts to invest in building strong, sustainable communities throughout New England."
Nancy Owens, President of Housing Vermont, recognized the multiple funding sources needed to complete this innovative project.
“Nearly half of the funding came from an equity investment by TD Bank,” Nancy said. “Vermonters benefit because our banks continue to invest in our communities,” she said. Owens also noted that TD Bank provided construction financing.
“Equally important is the cooperation and support we received from Vermont Housing and Conservation Board, Vermont Housing Finance Agency and the Department of Economic, Housing and Community Development. These agencies have specialized missions but work together to maximize scarce resources,” Nancy said.
Naylor and Breen Builders was the general contractor and Michael Wisniewski of Duncan • Wisniewski Architects was the project architect.
Demand for Hickory Street Apartments has been strong. Twenty-one apartments have already been leased in anticipation of the November 1 opening.
Those interested in renting apartments should contact the Rutland Housing Authority at (802) 775-2926 or www.rhavt.org.