‘Transformative’
$7.5 million in federal funding to back renovation project
The Westridge Townhomes on the west side of Fort Dodge will be undergoing a major facelift in the next few years, thanks in part to $7.5 million in federal funding.
On Dec. 21, the U.S. Department of Housing and Urban Development announced that the property is receiving the Leading Edge award from HUD’s Green and Resilient Retrofit Program (GRRP). The GRRP was created by the Inflation Reduction Act of 2022 and is aimed at improving quality of life for residents of HUD-assisted multifamily properties.
“The whole purpose of this is to improve them to make them more climate resilient, more energy efficient,” said HUD Region VII Regional Administrator Ulysses Clayborn.
Clayborn, as well as several other HUD officials, visited the Westridge Townhomes on Dec. 21 to officially announce the Leading Edge award.
“Those goals include reducing energy and water use at HUD-assisted multifamily properties, to make [them] more resilient to extreme weather events and to reduce greenhouse gas emissions,” said Clayborn, who oversees HUD operations in Iowa, Missouri, Nebraska and Kansas.
The funding will come through a $7.5 million surplus cash loan, meaning that the loan will be paid back with surplus cash flow from the properties only after other debt obligations are handled, Clayborn said. This allows the property developer to not have to increase rent to cover the debt, keeping rent affordable for residents.
The Leading Edge award is likely the largest award of federal funds for any housing development project in Fort Dodge, according to Vickie Reeck, community and economic development director for the city of Fort Dodge.
The Westridge Townhomes award was one of only 16 projects awarded funding at this time and the only one in HUD Region VII.
“This makes a huge difference between a rehab happening at this property and not happening,” said Matthew Segerdal, principal and co-founder of Huntley Witmer Development LLC, of Torrance, California.
Huntley Witmer Development is in the process of acquiring the Westridge property. The property is currently owned by Westridge Holdings 125 LLC, of Los Angeles, according to information from the Webster County Assessor’s website. The acquisition is expected to be complete late fall or early winter 2024, Segerdal said.
“We’re just so grateful that the [HUD] funding was made available and that we were able to be competitive and to get this award, because it really will be transformative to this property,” Segerdal said.
The renovation project plans include renovating units in all 20 buildings on the property to be more energy efficient with new windows and doors, an entirely new “ultra-efficient” heating and HVAC system, low-flow toilets, new roofing and solar panels.
A new community room, new playgrounds and new basketball courts will be added as well.
The community room will also offer space for a small library, computer rooms and play areas for kids.
“There’ll be some after-school programming and there’ll be other programming for adults here, and that’ll help create a community for decades,” Segerdal said.
The solar panels will also help the property become more sustainable by providing electricity, lowering the property’s energy bills because utilities are included in the rent, he added.
“It’s about making this property sustainable for not the next couple of years, but the next five, 10 or 20 years, bringing up the standard, the condition of this to what it needs to be, to what the community wants it to be and what it should be,” Segerdal said. “It’ll transform the look and the feel of this property.”
In total, the project is expected to cost $25 million, Segerdal said. The remaining funding will come from low-income housing tax credits, corporate tax credit bonds, tax credit investors and Federal Housing Administration financing. Work is estimated to begin next fall and take 15 to 18 months. During that time, Segerdal said, most of the tenants will be able to be relocated within the property while their units are undergoing renovations, though a few may need to be housed in hotels for a short period.
“We’re just excited that the property is going to be rehabbed,” said David Fierke, Fort Dodge city manager. “Thanks for your investment in the community, thanks for the money from HUD. It’s appreciated.
“Something that our community needs is quality, affordable homes, so we appreciate you all doing what you can to help that happen in our town.”
The townhomes were built in 1970 and are leased as a mix of market-value units and HUD-subsidized units.