Board hears request for TEFRA tax‑exempt bonds to rehab 100‑unit Chicago Avenue apartments

Attorney Joe Fowler briefed the Douglas County Board of Commissioners on Feb. 16 about a proposed rehabilitation of an aging 100‑unit apartment complex on Chicago Avenue and the preceding TEFRA process. The Housing Authority of Douglas County requested that the county approve issuance of tax‑exempt revenue bonds as part of the financing package.

Fowler said the developer is seeking tax‑exempt financing estimated at $9 million to $12 million (with total project estimates discussed in a range up to $16 million). "A portion of it at this point it is believed $9,000,000 will be tax exempt and the balance is..." Fowler said, noting estimates varied during the presentation. He added that 40% of the units will be targeted at 60% area median income (AMI) and 40% at 40% AMI and that the units were not public housing but privately owned and redeveloped by a private developer.

Commissioners pressed Fowler on project timeline, tenant relocation and county liability. Fowler said the developer plans to leave units vacant as tenants move out and to implement a relocation plan when financing and construction plans are finalized; he said the county or its agencies would have no liability for the financing. Regarding schedule, Fowler said issuance validation, engineering and construction would likely begin in the fall with hopes for occupancy by the following June.

Next steps: the bond resolution will be considered at the board meeting the next day following the TEFRA hearing; staff said the issuance and validation steps must be completed before construction starts.