The most notable discussion of the meeting centered on Hemple Real Estate’s acquisition of three properties: New Orleans Court, Richland Court, and Whitten House. These buildings are deemed naturally occurring affordable housing and serve as homes for many working-class families, including Section 8 vouchers and HUD program participants. The developer seeks to ensure these properties remain affordable and plans to invest approximately $2.5 million in rehabilitation work, focusing on safety, security, and energy efficiency upgrades.

A proposal was introduced seeking up to $1.77 million in financial assistance from the city, consisting of a 15-year forgivable deferred loan of $1.57 million and additional apartment remodeling loans totaling $200,000. This financial support would enable the properties to qualify for 4D tax status, offering estimated annual savings of $352,500. The terms would limit rents and cap resident income levels, with rent and income limits set at 60% of the Area Median Income (AMI) for one- and two-bedroom units, and 70% for three-bedroom units. This proposal was met with community backing, with residents emphasizing the importance of maintaining affordable housing options.

Community members, including longtime resident Scott Dolquist, voiced concerns over displacement caused by previous developments, such as the transformation of the Crossroads apartment building into the Concierge. Dolquist urged the commission to support the memorandum to protect affordable rental communities. Echoing similar sentiments, another resident, David Snider, stressed the necessity of preserving spaces for working-class families and advocated for regular meetings between Hemple and tenants to proactively address issues.

Melissa MDA Gonzalez, pastor of Tapestry Church, highlighted the plight of vulnerable populations in securing housing due to income and rental history requirements. She warned against potential displacement should a for-profit entity acquire the properties, drawing parallels to the Crossroads situation.

The proposal’s financial implications were examined, particularly the impact of the 4D tax classification on the city’s tax capacity. Officials clarified that the decertification of two large tax increment financing districts could offset any tax increases, potentially stabilizing or even reducing the overall tax burden on residents. The city council’s support for the classification was deemed critical, as formal agreement from the HRA hinged on subsequent council action.

The meeting also addressed the broader implications of property tax classifications, with some members expressing concerns about possible repercussions on the community, especially for those on fixed incomes. Despite these concerns, a consensus emerged in favor of the proposal, with members recognizing the project’s alignment with the city’s affordable housing goals.

The motion to approve the memorandum of understanding with Hemple Holding LLC was ultimately passed, with the authority acknowledging the necessity for ongoing dialogue with legislators regarding policies affecting Section 8 vouchers and the complexities of the 4D tax classification.