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Housing authority to take on White Swan renovations without project developer

By Susy Kelly skelly@heraldstandard.Com 3 min read

The Fayette County Housing Authority (FCHA) passed a resolution Tuesday to move forward with renovation plans for the White Swan Apartment building without a project developer’s assistance, a move that is expected to save a substantial amount of money.

Andre Walters, the authority’s assistant executive director, said four developers were considered for a partnership to address the multi-million dollar renovations needed at the White Swan, but each of them expected fees upfront, which would not have been recouped in the event that the project fails to garner funding.

The White Swan, built in 1805, is located on West Main Street and houses about 78 tenants. The authority has until March 1 to submit an application for tax credits through the Pennsylvania Housing Finance Agency (PHFA) to help move the $14 million project forward.

Board member Harry Fike noted that taking on the White Swan project itself represents an unprecedented move for the authority.

Another low income housing project in Uniontown which is not owned by the authority, Laurel Estates, just underwent a similar renovation, and executive director Mark Yauger said the total cost was around $15 to $17 million. The project developer netted $1.5 million for its work, he said.

“That’s what you’re trying to save?” asked Fike.

“Yes,” said Walters.

Board member Beverly Beal said, “I would really like to see the White Swan restored.”

Yauger explained that while the authority was poised to partner with Greystone Corporation for the revitalization of some of the authority’s properties, ultimately the plan proposed by Greystone was not feasible for Fayette County.

“They have a great idea, it just doesn’t fit us right now,” Yauger said. He said Greystone wanted to put all the authority’s sites together and evaluate them, then pursue tax credits for all the sites, which would necessitate certified managers to manage the tax credit properties.

“We decided we would do White Swan ourselves,” Yauger said.

Board member Joyce Nuccetelli asked for clarification regarding tax credit funding, and Yauger explained that corporations look to buy tax credits in order to lower their tax liability. The FCHA can use tax credits allotted by the state to attract banks or other corporate partners for projects like the revitalization of the White Swan.

“Let’s say PNC buys up tax credits, do they have control or do we have final say (over the project)?” Nuccetelli asked.

Yauger said during the 15-year partnership, corporate partners do have a voice in how the project proceeds, adding that the process is governed by federal guidelines.

“We’ve already had an offer from PNC,” he said. “We just have to get over the hump with PHFA.”

Whether or not the FCHA received the tax credits it’s seeking will depend on local elected representatives making phone calls to encourage funding to come this way, Yauger said.

In other matters, the board also passed the following resolutions:

n A three-year contract with Vector Security was approved, for security system maintenance and monitoring, at a cost of $84,387. The contract contains the option for two one-year extensions.

n Vacated accounts in the amount of $30,033 were authorized to be accounted for as a collection loss for the fiscal year. This amount represents unpaid rents, maintenance fees to repair damaged vacated units and legal fees.

n A contract for the purchase and maintenance of software was awarded to Horizon Information Systems Inc., for a cost not to exceed $50,000. Last year, the authority only spent about $20,000 of that allotment.

The board will meet again at 9 a.m. on Feb. 11.

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