The Warrenton Volunteer Fire Co. has a commitment for financing to build its planned 98-unit apartment complex for low- and moderate-income senior citizens.
The Virginia Housing Development Authority in June approved allocation of up to $6.83 million in federal tax credits to the fire company. Final approval should come in December, according to VHDA staff member Dale Wittie.
Then, the fire company would sell those credits - probably at about 80 percent of face value - to investors who would use them to reduce their federal tax liabilities.
The proceeds, perhaps $5.5 million or so, would help pay for construction of the Moffett Manor Senior Apartments.
Planned on four acres behind the Shirley Avenue firehouse, the complex will cost an estimated $8 million. A loan would fund the balance of the construction costs.
Fire company leaders say the apartments will provide a steady revenue stream for the volunteer organization and address a community need.
The apartments will be restricted to residents 55 and older who meet VHDA income standards.
“We’re really pleased,” said Will Eicher, a fire company member who has worked on the project. “The rezoning and getting the tax credit are two big hurdles.
“It won’t be easy to build a project of this size, but with the people involved, it should go well.”
The town council in February voted, 7-0, to rezone the fire company’s former carnival grounds for the apartment complex.
That allowed the company to apply for the tax credits. VHDA ranked the application third among dozens in the “Northern Virginia Pool.” Six projects in the region received preliminary tax credit allocations.
The fire company still needs to complete architectural blueprints for the complex and get town site plan approval.
It already has a contract with Pinnacle Construction and Development Co., a Charlottesville firm with experience in similar projects, to serve as the general contractor.
If all goes well, Pinnacle would break ground this winter and complete the project late next year, Mr. Eicher said.
One-bedroom units would rent for $750 a month and two-bedroom units for $900. To be eligible, renters must be at least 55 and have household incomes between $24,300 and $47,000.