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Company hired to aid housing authority in obtaining funds to rehabilitate White Swan

By Patty Yauger pyauger@heraldstandard.Com 3 min read
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The Fayette County Housing Authority (FCHA) has hired a development partner to advance its plan to overhaul the White Swan apartments.

In unanimous action at its recent meeting, the board entered into a contract with Greystone Corporation, to market the yet-to-be-obtained tax credits the authority will apply for in the next several months.

It is estimated the project will cost about $13.5 million.

The financial plan, said authority Executive Director Mark Yauger, includes the submission of the Low Income Housing Tax Credit Project (LIHTCP) application to the Pennsylvania Housing Finance Agency (PHFA) for consideration.

If approved, the received tax credits would then be marketed by Greystone.

“We’re pretty excited about working with them,” said Yauger. “They are familiar with (housing authority-related) projects.”

The New York-headquartered company was selected after it agreed to defray any upfront pre-development costs incurred during the process that other firms did not make a part of their proposal.

“Not having to take $350,000 out of our general fund, made it a pretty easy decision,” said Yauger. “(Greystone) brings a lot to the table.”

The White Swan rehabilitation project has been a priority for the authority for several years.

“We’ve been told that this is a good project by the PHFA, but the process is very competitive and more and more Fayette County agencies are competing for the same tax credits and they can not award just Fayette County projects,” said Yauger.

Formerly the White Swan Hotel, located on West Main Street, the multi-story building was constructed in 1895. It was acquired by the housing authority several decades ago and converted into individual apartments.

Today, about 78 tenants reside in the building.

Yauger said that while updates have been completed, electrical and heating systems are in need of replacement and the building made handicapped-accessible.

One of the most costly endeavors will be to install a new elevator, he added.

Currently, two small elevators now take tenants to their appropriate floors. However, neither meet federal requirements.

“The plan is to replace the two with a larger one that will meet the standards,” said Yauger, adding that the framework for the nearly 80 foot system adds to the cost.

The in-place plan also reduces the number of apartments to about 48.

Because the project has been in the development stages for several years, most of the design and engineering plans are in place and relocation procedures for the current tenants.

Yauger indicated that it is imperative the project be undertaken within the next five years.

“If it doesn’t happen, I’m afraid the building will have to be closed,” he said.

The LIHTCP application is to be submitted by the end of March.

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