WOODS CROSS -- A 144-unit apartment complex that provides moderate income housing, here, has been awarded an $8.5 million low-interest loan, part of which will be used for a variety of improvements. Springwood Apartments, 1230 S. 500 W., has been awarded the low-income loan for $8,465,000 by the Private Activity Bond Review Board. That group, which meets quarterly in Salt Lake City, is Utah's tax-exempt bonding authority. It was set up to serve as a lower cost, long-term source of capital under the Federal Tax Act of 1986. "Just over $239 million was given to the state to allocate," said Steve Rawlings, Davis County Clerk/Auditor. He is appointed to the post by the governor, and is in his second term.

"Dollars are allocated by the federal government to be used for low-income, multi-family housing, for student loans, and for manufacturing. They are tax-exempt," he explained.

The board reviews applications from groups throughout the state. Nearly $46 million has been allocated for Davis County projects over the past several years, Rawlings said.

Projects include Foxboro in North Salt Lake, Derrin Klein Tile in Centerville, Hamerton Manufacturing in North Salt Lake, Alumatek Pacific in Woods Cross. Others are Layton Pointe Apartments in Layton, Holly Haven Apartments in Clearfield, Rose Cove in Farmington and Stonehedge I Apartments in Layton.

Accounts have been set up for small issues, intended for multi-family affordable housing, such as Springwood, for first-time single family housing through Utah Housing Corporation; student loans administered by the Board of Regents; exempt facility for pollution and waste control projects.

"It's basically a way to refinance the property so we can have some funds to be able to rehab the property," said Kip Sheppard, president of Wasatch Advantage Group.

The Orange County, Calif., group is purchasing Spring-wood, built in 1985, from a Logan-based firm.

Sheppard emphasized improvements planned won't mean increased rents for tenants. "The unique aspect to this property is that moderate- income rent levels that are allowed, the maximum, are higher than the current rents being charged. We're not planning to come in and have some drastic increase in rents."

"Primarily interior renovation" is planned, he said, with some landscaping, repair to some carports, and enclosing trash containers. Installation of more energy-efficient appliances and heating/air conditioning is also planned, along with some cabinetry and flooring.

"We're really excited about this," Sheppard said. "We're going to be able to come in and improve the property pretty significantly, especially the interiors, without having to have some huge increase in rent."

It will allow for rehabilitation, "a chance to de-age some of the (area rental) portfolio in a real positive manner," he added.



tbusselberg@davisclipper.com

"Foxboro in North Salt Lake got a large allocation ($10 million in 2003) to get that project up and going. They are very high on the work we do," the clerk/auditor said.

Rawlings, the only Davis County member on the state board, said his "familiarity with finances with the county" is one reason he and two other county auditors were asked to serve on the board.

The board is an extension of the state's economic development department, which reviews applications and makes final recommendations, he said.

tbusselberg@davisclipper.com