3 Waco affordable housing projects planned on Ritchie Road

Three projects are making their way through the red tape and regulations required to build multifamily housing that workers, seniors and the poor can afford. The Waco Housing Authority board took action Thursday to facilitate Arden at Ritchie, a 278-unit complex that officials say would address multiple housing needs locally.

Waco Housing Authority Executive Director Milet Hopping will now negotiate terms with the developers, Dallas-based Kalterra Capital Partners. He will push for as many units as possible to be designated Section 8 housing, meaning low-income residents would see reduced monthly rental rates. If the form holds, Kalterra will accept a 10 percent designation, or about 28 units, Hopping said.

Kalterra could not be reached for comment Thursday, but its website touts Arden at Ritchie, saying the site is “surrounded by major single-family development and is down the street from a new Midway ISD elementary school,” which is Park Hill Elementary. .

The mention envisages completion during the first quarter of 2026.

Hopping said Arden at Ritchie has amenities that some might consider unusual for a property that will include affordable below-market rental rates. These include wrap-around patios and balconies, a pool, fitness center, pet stations, a mock golf experience, and washer and dryer hookups. He also mentioned the rental car parks and underground garages.

While many developers use tax credits to finance low-income housing, Hopping said he understands Kalterra Capital Partners has its own sources of financing and can apply for a construction loan through the U.S. Department of Housing and Urban Development. USA He said he doesn't yet know exactly how much Kalterra will invest in the site or the total acreage involved. He said he understands that Kalterra expects the contracts to be finalized by mid-August, with construction to begin the following January.

He described Arden at Ritchie as a mixed-income model, offering units at market rates, at “workforce” rates for the working middle class and Section 8 rates for low-income residents with few housing options. housing

Workforce rates would apply to residents who make up to 80 percent of the median household income of $83,200 for a family of four in McLennan County. Those who qualify for Section 8 assistance get less than the 80 percent threshold, with some getting more than 50 percent or 60 percent, if that at all, Hopping said.

He hopes his negotiations will persuade Kalterra to drop monthly rental fees by $50 to $200, depending on revenue calculations.

The Waco Housing Authority itself has a stake in the housing development along Ritchie Road. The Waco Public Facilities Corp., which is controlled by the housing authority, in March 2023 agreed to spend $3.3 million to acquire an 18-acre site at 291 Ritchie Road in the extraterritorial jurisdiction of Waco near Hewitt. It is also within walking distance of Park Hill Elementary School and close to the Park Meadows and Legacy at Park Meadows subdivisions which can accommodate 2,000 homes between them.

Hopping in March 2023 told the Tribune-Herald that options there may include rental duplexes or single-family homes specifically for buyers with lower incomes than the area median. He said people with lower incomes likely wouldn't be able to afford the homes, even though they would be considered low-income housing. Section 8 vouchers can be applied to your mortgage payments.

Hopping said Thursday that his office is digging into the details of that project and reiterated that homeownership may be his top priority.

Additionally, developer SLF-Waco was sanctioned by the city last month to secure $58 million in tax-exempt bonds for a senior housing project, the Cottages at Warren Road, that would occupy land on Warren and Ritchie roads. It would have 146 units for seniors, the Tribune-Herald reported in May.

Waco is not directly involved in the financing, but the tax code requires city approval for the developer to receive tax-exempt bonds. SLF-Waco is wholly owned by the Senior Life Foundation, a non-profit organization based in Georgia.