Bonds preserve affordable apartments

River Gardens Apartments and Manzanita Hills Apartments are no longer at risk of losing the ability to provide rent to low- and very low-income Anderson residents.

The Anderson City Council approved $22 million dollars in tax-exempt bonds for a developer to buy and rehabilitate the apartments.

Anderson officials are hoping the bond project will be a win-win for the city and for current apartment residents.

“We support these because they’re managed, they’re maintained, they’re inspected and they are good projects for the community,” said Assistant City Manager Dana Shigley.

River Gardens on Briarwood Street and Manzanita Hills on Spruce Street have a combined total of 268 units. The contract requiring the apartments be affordable was set to expire in 2010, and residents were at risk of losing their below-market rate rent. But the new bond agreement will require the apartments to be rented to low- and very low-income residents for another 55 years.

The bonds won’t cost the city money and will be the developer’s responsibility to repay. And though the developers plan to apply for tax exemption, the city won’t lose tax revenue because the developer agreed to pay Anderson their share of property taxes.

Highland Property Development, which acquired the apartments, indicated they’ll apply for several grants to conduct major renovations in the apartments.

“We plan to do a lot of bringing things up-to-code, and bringing in high-end appliances and energy efficient appliances, which helps the long-term health of the property,” said developer Bill Rice.

Council member Phil Burnett was concerned about renovations disturbing the tenants. “I’ve spent a lifetime as a painter/handyman and I can’t think of any better way of upsetting a household than tearing it apart,” he said.

But Highland Property employee Doug Day assured him the company has non-invasive methods for rehabilitation, which allows major projects to be completed in one day.

“We do all of our homework in advance and it saves a lot of grief for everyone,” Day said. “That’s key because it allows the residents to stay in place.”

Mayor Butch Schaefer was pleased with the council’s decision to grant the bonds. “I’m excited about this, especially for the people residing there,” he said.