A 12-story building featuring a mix of affordable and market-rate apartments is now planned for the United Way of Central Ohio’s headquarters at 360 S. Third St.
The organization announced this morning that it had accepted a proposal from the Columbus Metropolitan Housing Authority (CMHA) and national nonprofit The Community Builders (TCB) to redevelop the one-acre parcel.
The $70 million development, to be called AspireCOLUMBUS, will hold 135 apartments above approximately 30,000 square feet of commercial space on its first two floors.
The news comes about ten months after United Way announced its plan to sell the downtown property and to solicit proposals to redevelop it that centered affordability.
“We welcome the opportunity to introduce a new blueprint for how integrating mixed-income and affordable housing can not only succeed in our region, but also serve as a call-to-action for other developers to incorporate these principles into their next projects in downtown Columbus and throughout central Ohio,” said CMHA President and CEO Charles Hillman, in a statement. “Our intention for AspireCOLUMBUS is to prove that you can add a new piece to the Columbus skyline while also providing housing opportunities for residents across the income spectrum,” Hillman said.
The Community Builders, one of the larger nonprofit developers in the country, established a Columbus office in 2019 and pursued several local initiatives, although this marks the first significant Columbus project for the Boston-based organization. TCB specializes in mixed-income developments, and has experience partnering with other organizations on large-scale projects.
“Our partnership with CMHA combines national experience with local knowledge to expand housing opportunity for Columbus residents and spark new business investments,” said Jeff Beam, TCB regional vice president for real estate development. “We share the values of United Way and look forward to making Columbus an even more inclusive and vibrant city.”
Beam told Columbus Underground that the initial plan calls for a parking garage to be incorporated into the project, with space for as many as 200 cars, although he stressed that the size of the garage could change.
“We know there is a need to create a shared strategy with the city and other downtown stakeholders so that we are creating enough parking for the project to be successful, but are helping to advance long-term goals for Columbus around mobility and density,” he said. “Now that the proposal is public, CMHA, TCB and the United Way will be able engage in those discussions.”
The proposal has yet to be submitted to the Downtown Commission, which will need to review and approve the building’s design before the project can move forward. Moody Nolan has been selected as the architect.
A press release announcing the development stated that the CMHA-TCB partnership is in contract to purchase the property from United Way for $4 million, with closing projected to take place by the end of 2022, and final completion not until late 2025 or early 2026.
CMHA will provide a portion of the funding to build the project, which will also take advantage of both New Markets and Low-Income Housing tax credits, along with traditional debt and “potential ‘gap’ funding from state and local partners,” according to the release.
Also included was detailed information about the planned levels of affordability:
- At least 25% of units will be for households earning less than $20,000. They will have a rent subsidy that ensures they pay less than 30% of their income on housing.
- At least 15% of units will be for households earning less than $40,000. They will have rents ranging between approximately $800 and $1,150.
- At least 15% of units will be for households earning less than $55,000. They will have rents ranging between $1,150 and $1,500.
- The remaining units will have no income restriction, though rents would likely be discounted from recent luxury apartment rents downtown. Preliminary rents are anticipated to be between $1,150 and $2,300.
United Way leaders have stressed the importance of building new housing at all different levels of affordability, and are hopeful the new project can contribute to easing what many are describing as an affordability crisis.
“Central Ohio is in desperate need of affordable housing, and our property is a prime location for redevelopment,” said Lisa Courtice, President and CEO of United Way of Central Ohio. “So, we sought a developer who could purchase the property and redevelop it to meet that critical need.”
Additional Reading:
$200 Million Bond Package Part of City’s New Housing Strategy
New Programs Target Affordable Housing Supply, Lack of Diversity in Development Industry