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St. Joseph council backs support for tax-credit application to build 46-unit workforce housing project
Summary
The council voted to support MG Real Estate LLC—9s tax-credit application for the Humboldt School Apartments, a proposed 46-unit development aimed at workers who commute to St. Joseph; council questioned how tax credits lower rents and were told the credits reduce developer debt, enabling lower monthly rents.
The St. Joseph City Council on Sept. 3 approved a resolution expressing city support for a Missouri Housing Development Commission tax-credit application from MG Real Estate LLC to redevelop a vacant structure at 1520 North Second Street as "Humboldt School Apartments and townhomes" intended in part for workforce housing.
A representative of MG Real Estate told the council the project will include both tax-credit and market-rate units and is targeted at employees who commute into St. Joseph. "The goal here ... is workforce housing," the representative said, adding the development will have 46 units and that number "isn't gonna make a huge dent" but would provide housing for local employees.
Council members pressed for specifics on how the credits affect tenant rents. The MG Real Estate representative explained that the federal/state housing tax credit is taken on the development side, sold to investors and used to reduce the property—9s debt burden. "I can ... reduce the debt on the property which means then I can get to a 600 or an 800 rent on a 2 bedroom," the representative said, clarifying the credit helps the project reach lower monthly rents rather than providing a direct per-tenant tax break.
The council recorded a roll-call vote on the resolution; members cast their votes by name and the clerk announced the motion carried.
Why it matters: The city—9s formal support helps the developer—9s application to the Missouri Housing Development Commission, a step the representative said is needed to secure equity that enables lower rents. Council members noted that 46 units would only partially address the area's workforce housing shortage and asked staff and the developer to continue reporting on occupancy and affordability outcomes.
Next steps: The council—9s action is an expression of support for the tax-credit application; final allocation of tax credits and development approvals would depend on subsequent agency review and project agreements.
