Covenant receives $3 million in tax credits for new facility

A NEW VISION FOR COVENANT HOUSE:  Pictured above is a conceptual site plan for the three-phase redevelopment proposal Covenant House has created for the Millstone Campus.  The blue building marks Phase 1; orange is Phase 2 and red is Phase 3. Phase 1 would include building on part of the site formerly occupied by the old AMF Strike ‘n Spare Lanes (and owned by the Jewish Community Center), currently optioned to Covenant.  


Covenant Place has been awarded just over $3 million in government tax credits to build a new 101-unit low-income senior living facility on the I.E. Millstone Jewish Community Campus. The building is the first of three phases in a redevelopment plan proposed by Covenant Place — formerly known as Covenant House/CHAI Apartments.

“We are grateful to receive the tax credit award,” said Alan Witte, Covenant Place Board President, in a news release. “This award will enable our organization to move forward with implementing a dynamic new vision for a community based model of supporting seniors.”

The funding MHDC approved today in Columbia, Mo. comprises $1.26 million in federal and state Low Income Housing Tax Credits (LIHTC), $750,000 in HOME funds and $999,350 in AHAP tax credits. The funds were part of about $14 million the agency approved in tax credits for low-income housing projects across the state.

The three stages of the plan would replace the existing Covenant Place buildings with brand-new structures. The project would also extend existing federally subsidized housing assistance for the project by two decades.


Phase I of the redevelopment is projected to cost $20.3 million and Covenant leaders say groundbreaking is projected for late fall. Covenant leaders said in December that the first phase could be completed in 2016. Of the 101 units, 66 will have Housing and Urban Development (HUD) Section 8 subsidy contracts, making them affordable for residents with lower incomes. Residents eligible for Section 8 subsidy pay only one third of their income, after the deduction of medical expenses, for rent and utilities.

After the Phase I building is complete, residents from the current Covenant I building would be moved into the new facility. After moving residents, Covenant I would be demolished, creating space that would be used for Phase II, a $26.75 million project replacing the current Covenant II structure and creating a new senior community center where Covenant Place residents and St. Louis County seniors will have access to resources and services, programs and an affordable meal site.

Phase III, a $35.47 million project replacing the CHAI apartments, is not anticipated for another six to seven years. A determination on the efficacy of that project will be dependent on various factors, including the market, needs of the community, available financing, tax credits and donor commitments.

Both the Phase II and Phase III buildings will receive HUD Section 8 subsidy. They will have 102 and 150 one-bedroom units, respectively. With the redevelopment of the building, the HUD Section 8 contracts will be extended for an additional 20 years, to 2039.

McCormack Baron Salazar is the developer for the project and KAI Design & Build is the architect.

LINK: Read previous coverage of Covenant Place’s plans.