About $9 million in low-income housing tax credits from the Georgia Department of Community Affairs will help fund a $13 million, 100-unit senior apartment complex at the site of a former government housing project on School Street that was razed in 2011.
Half of the units will be subsidized through the Marietta Housing Authority.
The development is a public-private partnership between the MHA and Cobb-based Walton Communities, which has a 15-year contract to manage the apartment community once finished.
MHA and Walton will together be responsible for the remaining $4 million left after the government’s share.
Construction is expected to begin in early 2014 and be finished in 2015.
Since 2009, the MHA and Walton have been awarded $27.9 million in tax credits for other senior developments throughout Acworth and Marietta.
Mayor Tommy Allegood said the city’s Walton developments are the “Ritz Carlton living of Acworth.”
“The day they were open and they were completed, there was a waiting list,” Allegood said of the Legacy at Walton Overlook in Acworth.
Acworth is Cobb’s fastest growing city, Allegood said, and has attracted every part of the population, including the baby boomer generation that is entering retirement.
That means there’s a large need in Acworth for affordable senior housing, he said.
“Just taking Acworth as probably an example of every city in Cobb County, by the year 2020 one in every five adults will be over the age of 65, so we have been working diligently to prepare for the changing demographics that are going to be impacting our community,” Allegood said.
Getting the tax credits is a complicated and competitive process, said Ray Buday, executive director of the Housing Authority.
“There’s a thick rule book on the points you get for this, if you’re close to a hospital, you get a point,” Buday said.
Tax credits are allocated by the U.S. Department of the Treasury to individual states based on population.
In Georgia, 53 groups applied for the tax credits and half received funding.
The credits are in turn sold to investors who pay cash for the use of the credits against federal income taxes.