Mobile weighs contribution to affordable housing redevelopment downtown
May 17th, 2022
Posted in: Press Release
- May 17, 2022 -
For Immediate Release:
Mobile weighs contribution to affordable housing redevelopment downtown
Mobile, Ala. — Today the Mobile City Council will consider allocating $8 million from the City’s American Rescue Plan (ARP) funding to a project that will continue the development of downtown, repurpose a long-abandoned building in the heart of the City and expand affordable housing east of Interstate 65.
Mayor Sandy Stimpson is asking the Council to approve a contract allocating $8 million of ARP funding to offset the cost of Gulf Coast Housing Partnership Inc.’s (GCHP) plan to renovate the old Gayfer’s building located at 165 Dauphin Street. The $8 million allocations from the City of Mobile would be a loan secured by a mortgage with terms that would require the property to be used for affordable housing.
Once finished, the Gayfer’s project would create 95 workforce housing units in downtown Mobile. The units would be income capped — meaning those who make above a certain amount wouldn’t qualify to live there. That would include 75 units of income capped at 60 percent of the area median income (or $35,000 for a family of four) and another 19 that only be available to residents making less than 50 percent of the area median income (or $29,200 for a family of four).
As a non-profit housing and community development firm, GCHP has done dozens of similar projects spanning multiple states. The firm purchased the Gayfer’s building several years ago with the intent of developing it into affordable housing units. Still, the age and character of the building made it a particularly expensive endeavor. The total cost is estimated at somewhere around $32 million. Even with state and federal tax credits, there was a gap in funding preventing GCHP from making this project viable. Using this allocation from Mobile’s ARP funding would help fill that gap and move the project forward.
“Though we’ve made some strides in recent years, Mobile is still facing a shortage of affordable housing. It creates challenges for businesses trying to recruit and house new employees and presents obvious hardships for residents and families,” Mayor Sandy Stimpson said. “The Gayfer’s project would create affordable housing options in our downtown for decades to come while also repurposing and redeveloping a historic structure that’s currently an eyesore in one of the busiest parts of Mobile.”
When Mayor Simpson initially submitted his “People First Plan” for the Council’s consideration, the funding the Gayfer’s project was listed as an individual line item. At the Council’s request, the administration issued a new Request for Proposals (RFP) for affordable housing developments in October 2021. Of the projects submitted, GCHP’s proposal for Gayfer’s was the only shovel-ready project.
With the approval of the Mobile City Council, the ARP funding already designated for affordable housing initiatives will help make this long-sought project a reality. If you’d like more information about the ARP projects in Mayor Stimpson’s “People First Plan,” you can find it at cityofmobile.org/people-first-plan/.