Project Details

UNDER CONSTRUCTION:

Rocky Mountain Development Council (RMDC) and GL Development, LLC were awarded $7,790,000 in federal tax credits for a new multifamily housing complex now in construction on Helena’s westside. Red Alder Residences is located at the corner of Henderson and Brady streets. As the syndicator, Mountain Plains Equity Group (MPEG) worked closely with Valley Bank of Helena, a division of Glacier Bank, as the lender and tax credit equity partner. Our compliments to the principals of the development team, including Gene Leuwer of GL Development, for the financing structure used to make this project a reality. Several layers of capital were sourced to complete the capital stack, including funds procured from HOME funds, the Housing Trust Fund and the LIHTC program. In arranging the all-important equity capital, the partners used a combination of 9% and 4% tax credits allocated from the Montana Board of Housing. Liz Mogstad, the Affordable Housing Director for RMDC, said the combination of the 9% and 4% federal housing credits accounted for 45% of Red Alder’s total funding. Lori Ladas, Executive Director of RMDC, acknowledged the complexity of the financing package and said the credits were “critical to make the project work.” RMDC is anticipating construction completion by the fall of 2020. Once complete, Red Alder Residences will offer a total of 85 apartments that are housed in 26 separate buildings, creating a landscaped community environment that is very attractive. 42 one-bedroom apartments will rent for $336-$695 per month (depending on income), while 31 two-bedroom and 12 three-bedroom units will rent for $408-$989 per month. Amenities will include a playground, community room, gardens, and a Capital City Transit stop. Red Alder is geared toward people making enough money to be excluded from government assistance, but still struggling to make ends meet. “There are a lot of people in Helena working entry level government jobs,” Mogstad said. “This project is unique because it will be geared to those higher incomes.”