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Housing Authority To Acquire Ridgedale Apartments

By DOUG CARMAN

Highlands Today

Published: July 24, 2008

AVON PARK - The Avon Park Housing Authority cut a deal with the owners of Ridgedale Apartments and expects to take the complex over July 31.

Inspectors from the housing authority visited the 36-unit complex Wednesday morning to look over the 24 vacant apartments and see what kinds of repairs were needed once it assumes the ownership.

Executive Director Larry Shoeman of the housing authority said it will pay $525,000 to buy the 36-unit complex from Columbus, Ohio-based Crown North Corp, which includes a $281,000 fund that will be used to renovate the vacant units. Shoeman expected to get a contractor to finish the renovations and replace the appliances in the apartments 120 days after they take over the apartment complex, which would be the end of November.

Ridgedale Apartments Property Manager Fernando Sanchez said the vacant apartments all need new carpeting, with some also needing things from new appliances to new cabinetry and drywall repairs.

The acquisition costs would be covered by a federal home loan that effectively becomes a grant as long as the authority uses the complex for subsidized housing for at least 50 years, which Shoeman fully expects the authority to do, he said.

The authority also will assume a $1.043 million debt on the property, with about 40 percent of that debt coming from damages caused by the 2004 hurricane season, according to Sanchez's estimates. Shoeman expected to pay that debt with the rent from the apartments.

The apartments are currently privately owned Section 8 housing units and will continue to operate that way once the authority takes over, Shoeman added.

The acquisition may help bring down the waiting list for the authority's lengthy list of applications for Lakeside Park, a public housing project on Lake Tulane. The authority mailed out letters to the 83 applicants on the waiting list last week to tell them that they could also apply for an apartment at Ridgedale starting Monday.

"I expect the response to be quite substantial," Shoeman said.

As of Wednesday, 12 of the apartments are occupied, spread out over seven of the nine townhouse buildings. With only a third of the apartments occupied, Shoeman acknowledged it has been operating in the red.

"It's important to make positive cash flow for the project, and right now it's on the negative side," Shoeman said.

The apartment complex has not had a new tenant since April 2005, according to Sanchez's records.

The tenants pay an average of roughly $100 a month, with the rest of the apartments' market rates covered by the federal Department of Housing and Urban Development. None of the 12 tenants will be relocated for the renovations.

By The Numbers - Ridgedale Apartments

Cost of Complex - $525,000

Debt assumed - $1.043 million

Units - 36

Vacancies - 24

Units at Lakeside Park - 79

Vacancies at Lakeside Park - 0

Applicants on Waiting List for Lakeside Park - 83

Market Rates (Rent Per Month):

1-bedroom - $557

2-bedroom - $644

3-bedroom - $718