Elyria to consider tax abatement for senior housing project

ELYRIA — Developers are seeking a tax abatement for a proposed affordable senior housing project to be built alongside the new McGregor PACE senior center in Elyria. McGregor Landing is a planned 115-unit apartment building for people that are 55 yand older and also fall within certain income limitations. On Monday, a joint meeting of City Council's Finance and Community Development committees voted to recommend the approval of a 15-year, 75 percent community resource area (CRA) tax abatement for the project. The proposal will go before Council as a whole for final approval. The project will be built directly behind the McGregor PACE, or Program for All-inclusive Care for the Elderly, facility that opened on Leona Street in November. The apartment and senior center were originally pitched at the same time in early 2024, but the McGregor Foundation — a Cleveland-based nonprofit that owns both projects — ultimately decided to hold off on building the apartments until the senior center was complete. McGregor and developer CHN Housing Partners are now ready to move forward with the housing portion of the project, and representatives went before a joint committee of Elyria City Council to request the abatement. Under the tax abatement, the property owners would pay tax on only 25 percent of the additional property value created by the improvements to be made to the property for the duration of the agreement. The original property value before the construction would be taxed at the normal rate. "This particular development will provide affordable options for older adults who want to remain in the community, but do not have the financial capacity to do that through rent," McGregor Foundation President and CEO Ann Conn said at the meeting on Monday. The proposed building is a single three-story, 95,000-square-foot apartment building with 115 single bedroom units that would cost at least $26 million, Conn said. It would also provide residents with easy access to McGregor PACE, which provides low-cost health and social services to seniors from across the county. In October, shortly before the PACE center opened, McGregor Landing was selected to be part of a federal low income housing tax credit, or LIHTC, program. The program grants a 4 percent federal tax credit on eligible purchases related to the construction of affordable housing projects. As a part of that program, the apartment will be open only to residents who make at or below 60 percent of the area median income, or AMI, as determined by the U.S. Department of Housing and Urban Development. Lorain County is located in the Elyria-Cleveland Housing Market Area, which also contains Cuyahoga, Medina, Geauga and Lake Counties. As of 2024, 60 percent of the area median income for that area was $40,860 for one person. "The project was primarily financed through low income housing tax credits which are going to be at 60 percent AMI," CHN Senior Project Manager Kimberly Hurt said on Monday. "That 60 percent AMI restricts the amount of rent that we are allowed to charge at the building, so the tax abatement would help make the building affordable for the operating period of the building for the 15 year time frame, since we will only be able to restrict the rents to what LIHTC allows us to." Councilwoman Brenda Davis, D-2nd Ward, said that she was concerned that despite the fact that the apartments were labeled as affordable, the rents may be higher than many seniors in Elyria can afford. "You are absolutely correct, there is a significant challenge in affordable options for older adults," Conn said. "Unfortunately this particular project doesn't have a HUD (Section) 202 grant allocation which is what you (Davis) are talking about where their rent is specifically allocated based on their income. Unfortunately due to federal changes, we have not been able to secure a HUD 202 grant, they are actually not giving them for new projects." Conn said that the rent for apartments in McGregor Landing will be roughly $1,100, which she said is higher than she would like but below the market rate of $1,400. "Even though I know it still may not be affordable for someone making $500 a month, it is less expensive than what the market is providing currently," she said. Davis asked if any vouchers would be available for potential residents who could not afford the rent. Conn said that the project would not receive any vouchers from the federal government to offer, but that McGregor would accept Section 8 HUD vouchers from residents that have them. The joint committee unanimously approved the abatement agreement, and it will go before Council as a whole at its next regular meeting on July 6. Hurt said that if the weather cooperates and construction goes as planned, the apartment is expected to open in roughly February 2028. "We got to see McGregor Pace, your senior center, it is so impressive," Council President Donna Mitchell, D-6th Ward, said. "So if the apartments are anything like what you did with the senior center, we look forward to it coming to our city." Contact Owen MacMillan at (440) 329-7123 or omacmillan@chroniclet.com.