Georgia firm poised to buy Evergreen Heights Apartments

A Georgia-based firm, Affordable Housing America Inc., wants to buy one of Springfield’s affordable housing complexes.

http://www.rutlandherald.com/article/20110126/NEWS02/701269917

Published January 26, 2011 in the Rutland Herald

Georgia firm poised to buy Evergreen Heights Apartments

By Susan Smallheer
Staff Writer

SPRINGFIELD — A Georgia-based firm, Affordable Housing America Inc., wants to buy one of Springfield’s affordable housing complexes.

The group, including its Chief Executive Officer Stephen Wasserman of Smyrna, Ga., explained the project to the Springfield Select Board on Monday and sought approval to back it for low-interest bonds for the $8 million purchase, which is being coupled with the purchase of similar housing projects in Chelsea and Williamstown.

Wasserman told the Select Board his nonprofit group needed to pursue the so-called public finance authority option because the Vermont Housing Finance Authority would not participate in third-party bonds.

Wasserman, who said his group had recently completed purchase and renovation projects in Kentucky and Illinois, praised the condition of Evergreen, which is owned by Emile Legere of Keene, N.H.

Legere built the housing complex, which was originally called Blue Grass Hills, according to Town Manager Robert Forguites.

Wasserman said his group planned energy-efficient renovations, including more insulation and storm doors.

“The units are already beautiful,” he said.

Under the “series 2011 bonds,” there is no indebtedness or liability by Springfield or the state, but is a financial responsibility by Affordable Housing America Inc., which is forming a limited liability corporation in Vermont to handle the purchase of the three projects.

The Springfield Select Board voted unanimously to support the project, noting they wanted to support keeping the housing project in operation.

Affordable Housing America Inc. is a 501 (c)(3) charitable organization, according to Wasserman and his organization’s attorney, David Williams of Atlanta, Ga.

Wasserman introduced the management team that will run Evergreen Heights for him, including the local maintenance supervisor and the local manager.

One resident of the housing complex, Ira Emerson, said since the name of the complex was changed to Evergreen and underwent extensive renovations, it had been a much better place to live, with far fewer visits from police.

The 44 apartments in the complex are evenly divided between senior citizens and families, Williams said.

While the group is seeking $8 million in bonds to finance the purchase of the Springfield, Chelsea and Williamstown projects, the Springfield project is worth $3.4 million, the Williamstown project is worth $1.8 million for 23 senior housing units and the Chelsea project is worth $2 million.

By Springfield endorsing the financing via resolution, Williams said it wouldn’t affect Springfield’s bond rating or its credit standing.

If Affordable Housing is not able to secure this financing, which comes with a 6.5 to 6.25 interest rate for 30 years, the interest rate would be closer to 10 percent, Williams said, and that cost would have to be passed on to the tenants of the property.

Wasserman said Legere wants to sell the property and his group heard about Evergreen through a housing broker.