By Eric Curl
Nov. 7, 2023 – The city’s efforts to develop more affordable housing in Savannah recently hit a setback, when two planned developments did not qualify for state low income housing tax credits – considered essential for moving the projects forward.
The projects include planned affordable senior housing at the former fairgrounds site being developed by Bill Gross. In April, the city authorized a $1.92 million loan to support the application and help finance the construction of up to 64 apartments for seniors. The senior housing is supposed to be the first phase of the planned fairgrounds development, which is also expected to bring a production studio, recreational fields and public trails to the more than 60-acre site at 4801 Meding St.
Gross’s Kingsland, Ga.-based company, W.H. Gross Construction, was selected to develop the housing component of the fairgrounds site after previously leveraging the tax-credit program to renovate the historic Romana Riley elementary school at East Anderson Street and Waters Avenue.
Gross said the tax credits issued by the Georgia Department of Community Affairs are highly competitive and the city will be looking at some alternative funding options to move the project forward.
“While everybody is disappointed, they’re not giving up and neither am I,” Gross said.
The other project that was not awarded tax credits was a planned 42-unit affordable apartment complex on former city property at 1700 Drayton St., which the city had also supported by authorizing a $1.26 million loan for the development. The application was the third unsuccessful attempt by the developer, Pinyan/Procida Development Group, which purchased the site from the city in 2021 to develop the complex.
Mario Procida, with the development group, did not immediately respond to requests for comment. In March, Procida said that construction of the affordable apartment complex is dependent on the awarding of the tax credits.
“Otherwise, we can’t make the math work,” Procida said at the time.
City staff is working with the applicants to determine where the projects fell short on scoring and how they can be successful next year, according to a memo City Manager Jay Melder sent city council.
“Additionally, we are working with DCA on other opportunities to fund these worthy projects,” Melder said.
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