The AFL-CIO Housing Investment Trust (HIT) is helping to finance the $24.5 million construction of Covenant Place II, a 102-unit, affordable senior apartment project located in St. Louis, Missouri. The project will be a four-story building with surface parking that will replace the 102-unit pre-existing Covenant Apartments II building. The phased development plan allows current residents to remain in place while the new building is constructed. The universal design allows ease-of-use by residents with a broad range of housing and accessibility needs. Room features include visual alerts for doorbells, smoke detectors for those who are hard-of-hearing, and adequate cabinets and storage within reach range for residents using wheelchairs.
The HIT is purchasing $6.7 million of Ginnie Mae construction loan certificates and a permanent loan certificate backed by a HUD/FHA-insured Section 221(d)(4) mortgage from Gershman Investment Corporation. McCormack Baron Salazar will serve as the developer for this project. Property management will be handled by Community Housing Management Corporation, a Missouri non-profit corporation.
The current Covenant Place community has served low income seniors for over 40 years, but the buildings are functionally obsolete. Covenant Place II, the second of three development phases, is replacing the 102 Section 8 subsidized one-bedroom units. An existing HAP (Housing Assistance Payments) contract will be preserved and transferred to the new building and all units will serve residents at or below 50% of area median income. The building is also designed to achieve Enterprise Green Communities Criteria. These features will reduce construction waste and provide healthy indoor and outdoor living environments, which are critical for residents who have health concerns such as emphysema or asthma. The new Senior Lifestyle Center on the ground floor will offer support services to a larger group of seniors in the surrounding community, creating a better quality life for both resident and nonresident seniors.
The project is expected to generate approximately 235,000 hours of union construction work.
*Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT project data. The data is current as of March 31, 2020. Economic impact data is in 2019 dollars and all other figures are nominal.
This page provides information about a project or projects financed by the HIT which may or may not be reflective of other financed projects or refer to an asset currently held in the HIT’s portfolio. Investors should consider the HIT’s investment objectives, risks, charges, and expenses carefully before investing. This and other information is contained in HIT’s prospectus, available at aflcio-hit.com or by calling 202-331-8055. The prospectus should be read carefully before investing.