WESCAP receives $1M federal tax credit for apartments
PRESCOTT - A major developer of affordable rental housing for seniors and families in the tri-city area has received an additional federal tax credit - this time for $1 million.
The Arizona Department of Housing awarded WESCAP Investments Inc. of Phoenix the federal Low Income Housing Tax Credit to build an additional 46 units at the Bradshaw Senior Community, 123 Bradshaw Drive, Prescott.
WESCAP plans to begin construction of the 46 units within six months and is expected to finish them in the first quarter of 2011, said Jeff Gray, who is handling public relations for WESCAP.
WESCAP, the first three letters of which stands for the initials of company President William Spreitzer, has leased all 46 units of the first phase and has a waiting list of more than 140 applicants.
"Obviously, the need for affordable housing in Prescott is significant, as the waiting list shows," said Gray, who formerly worked for the Department of Housing.
All of the dwelling units will meet or exceed energy-efficiency requirements that the Department of Housing established, Gray stated in a press release.
As of this past summer, WESCAP built 25 housing projects with the aid of tax credits throughout the country, including 14 in Northern Arizona, Spreitzer previously said. The Department of Housing in June 2008 awarded $1 million in credits for the second phase (54 units) of the SunGate Villa Senior Community on Civic Drive in Prescott Valley.
Developers, such as WESCAP, that qualify for the tax credits in turn sell them to investors who provide cash for the developments, said Kristina Fretwell, legislative liaison and public information officer for the Department of Housing. She added WESCAP may sell $1 million in tax credits a year over the next decade.
The tax credit is a dollar-for-dollar credit against the federal income tax liability of the owner (developer or investor) of a low-income housing development, according to a description on the Department of Housing's website.
The rental property must comply with program guidelines and rent-restriction guidelines for at least 30 years.
WESCAP apartment units in the tri-city area range in rent from $325 to $650 per month, Spreitzer has said. The amounts depend on the number of bedrooms and the income level of the households.
The Department of Housing also requires applicants for the tax credits to document support from local governments where the developments are built, the press release stated.
WESCAP drew support for the Bradshaw Senior Community from the City of Prescott and the Republican delegation that represents the Prescott area in the statehouse: Sen. Steve Pierce of Prescott, and Reps. Lucy Mason of Prescott and Andy Tobin of Paulden.
WESCAP is a real estate development company that specializes in building affordable work-force and senior housing.
WESCAP also has built the Valley View family apartment complex near the Civic Center in Prescott Valley and the Antelope Valley apartment complex on Highway 89 in Chino Valley.