By Carlson, Brad

Construction of the 80-unit Summerhill Apartments started in December at Twelfth Street and Hoopes Avenue in Idaho Falls with help from a loan tied to the federal economic-stimulus program. Summerhill will include a mix of low-income, moderate-income and market-rate units.

Summerhill "follows our pattern of developing low- and moderate- income housing for families," said Tom Mannschreck, president of project developer Thomas Development Co., Boise. He plans to seek Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council, as he did with the adjacent Rosslare senior affordable apartment community. The 64-unit Rosslare was completed last summer and is full.

Thomas Development and Boise Housing Corp. are partnering on Summerhill, expected to be completed in July, Mannschreck said. Jim Tomlinson is president of Boise Housing Corp.

Summerhill would not have gone forward without the American Recovery and Reinvestment Act that Congress passed early last year, Mannschreck said. Thomas Development received a $2.9 million federal economic-stimulus loan for Summerhill through the nonprofit Idaho Housing and Finance Association.

A component of the economic-stimulus legislation appropriates money "to assist in construction of affordable housing because of the downfall of the tax-credit equity market," Mannschreck said.

Fannie Mae, Freddie Mac and major banks were the biggest purchasers of the tax credits historically, he said. "Now the situation is that there are fewer purchasers and the pricing has gone down, making a number of tax-credit developments not economically viable," he said.

As tax-credit values fell, so did the equity needed to build the apartment projects, Mannschreck said. The loan, designed to be a substitute for tax-credit equity, has favorable repayment terms but the same restrictions found in the tax-credit program, he said.

Boise architectural firm Glancey Rockwell & Associates designed Summerhill Apartments, which Pacific West Construction of Idaho Falls is building.

The multi-family, affordable-housing segment seems to be staying busy among clients who have access to, or know how to access, federal, state and local funding, said Pete Rockwell, principal in Glancey Rockwell. Some market-rate projects that were contemplated a couple of years ago never moved ahead as developers saw fewer attractive financing options, he said. Current projects for Glancey Rockwell & Associates include multi-family and affordable housing, large industrial projects, smaller commercial projects and tenant improvements, and high-end residential work.

Mannschreck said he has applied with the U.S. Green Building Council for gold-level LEED certification for Rosslare, and for the recently completed Cardona senior affordable housing community in Chubbuck. He expects to apply for gold or platinum LEED certification of Summerill after that project is completed, he said.

Credit: Brad Carlson

(Copyright 2010 Dolan Media Newswires)

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