Low-income apartments moving ahead at Badger Mountain South

Building permits and financing are in place for the

first apartments at Badger Mountain South in Richland.

The complex will include 276 units for low-income tenants

at 2555 Bella Coola Lane, south of the Country Mercantile on Ava Way, near

Trowbridge Boulevard.

The city of Richland has issued grading and building

permits to Nor Am Investments, which is listed as the owner of the project. The

general contractor is Inland Construction, a Spokane-based company, which also

built the Badger Mountain Ranch apartments near the Westcliffe neighborhood in

south Richland.

The apartment complex will be called Copper Mountain and

is valued at $43.7 million. It is described as a multi-family housing facility,

with all 276 units designated for tenants with incomes up to 60 percent of the

area’s median income, as published by the U.S. Department of Housing and Urban

Development, or HUD, guidelines.

HUD lists the annual median income for a family in the

Richland-Kennewick area at $72,800, which means families would have to earn

$43,680 or less annually to qualify for housing in the new complex.

Twenty percent of the units, or 55 in all, will be set

aside for people with disabilities.

To qualify for a home at Copper Mountain, tenants would

need their income verified in advance. “Affordable housing is extremely

important to every community in this region and across the nation,” said Kerwin

Jensen, community development director for the city of Richland. “The more we

have, the better it is for all residents.”

The

project sought financing from the Washington State Housing Finance Commission.

After a public hearing in September, the financing closed in November.

“This

new development will provide much-needed affordable apartments for working

families and seniors in the Tri-Cities, which, like other areas in the state,

is facing a shortage of rental housing,” said Karen Miller, chairwoman of the

Housing Finance Commission. “We’re pleased to be part of the solution through

this financing.”

The

estimated tax credit equity on the project is valued at $15.7 million, with

tax-exempt bonds of $24.5 million and taxable bonds of $7 million.

The

commission has the owner registered as Copper Mountain Apartments, a limited

liability corporation formed in September 2018 and registered at the same

Spokane address as Inland Construction. The registered agent on the project is

Scott Morris, who is Inland Construction’s general counsel.

According

to a notice for the public hearing held in Seattle, proceeds of the notes will

support a portion of the financing for the acquisition of land and the expected

$33.8 million cost of the complex. Representatives from Inland Construction

declined to comment on the project or provide a timeline on construction plans.

The Housing Finance Commission distributes federal

housing tax credits, which allow developers to raise capital by selling the

credits to investors. The commission said it has created or preserved affordable

homes for more than 334,000 people across the state in the past 32 years,

including providing the financing for more than 30 properties across Benton and

Franklin counties. This includes 2,840 rental units that were created or

preserved, and an additional 427 units through the nonprofit bond program.

Grading already is underway at the site in Badger

Mountain South, a growing part within Richland’s boundaries, east of Dallas

Road and north of Interstate 82.

The city recently revised its road impact fees that are

tacked onto home building permits to accommodate additional growth at Badger

Mountain South. The traffic impact district, including Badger Mountain South,

pays the highest fees in the city to offset the increasing population and

number of homes actively under construction from multiple builders and their

effect on city roads.

“Building and development of residential housing is a

very important part of the Tri-Cities community. It provides jobs and drives

the economy,” Jensen said.

Up until now, all residential properties at the site have

been single-family homes. “Badger Mountain South is intended to be

high-density, residential, with high numbers of homes and apartments,” Jensen

said. “This (Copper Mountain) project complies with the vision of the

developer, whether it’s market housing or affordable.”

The Country Mercantile is the only commercial development

currently in Badger Mountain South, but at least one sign announces future

development planned for the area from Kadlec Regional Medical Center.

Located on the outskirts of Richland, and near the border

of West Richland, Jensen believes Badger Mountain South neighbors looking for

more retail options nearby should be encouraged by the apartment project.

“From a commercial and retail standpoint, the residential

rooftops need to come first before anyone will invest in commercial activity.

There’s a threshold that needs to be met before developing retail,” he said.