The Club Apartments slated for $20 million in upgrades and repairs after purchase by new owners
A 50-year-old apartment complex in Lexington is getting a much-needed facelift.
Rory Neubrander, vice president of Green National Development, said the company is in the process of purchasing The Club Apartments located on London Court in Lexington and will start a $20 million overhaul of the property beginning next year.
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Neubrander said the 10-month long project will include approximately $75,000 per apartment to replace flooring, cabinets, fixtures, lighting, water heaters, bathtubs, toilets, sinks and new paint. He said the company will also address electrical, HVAC, plumbing and any other issues as needed.
He said the current owners recently replaced the roof and windows in a majority of the apartment buildings, and shouldn't need any work.
The project will also include replacement of exterior siding on the apartment buildings, mail kiosk, laundry facilities, parking lots and playground equipment. Neubrander said although the name of the apartment complex will remain, they also plan on installing new signage.
He said there will also be improvements to make the apartment complex Americans with Disabilities Act compliant.
“It is a very comprehensive project,” said Neubrander. “We are very excited to begin this much needed improvement of The Club Apartments.”
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The Club Apartment is a 87-unit, multi-family apartment complex that was built in 1972. It is a U.S. Housing and Development approved facility for low-income residents where occupants use government-issued Section 8 housing vouchers to pay a majority their rent.
Neubrander said Section 8 residents will not see any increase in rent, rather the amount of the housing vouchers will be increased to cover any increase in rates. There are approximately nine apartments that are not HUD approved that may see a slight increase in rent after the completion of the project.
Part of the funding for the acquisition and renovation of the apartment complex was provided by $12.4 million in multifamily housing revenue bonds released by the Lexington Housing Authority.
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State and local governments sell tax-exempt housing bonds, commonly known as Mortgage Revenue Bonds (MRBs) and Multifamily Housing Bonds and use the proceeds to finance low-cost mortgages for lower-income first-time homebuyers or the production of apartments at rents affordable to lower-income families.
As the government entity responsible for the local issuance of federal housing bonds, the Lexington Housing Authority held a public hearing on the issuance of the bonds on June 20.
In the past, subsidized housing was often built directly by the public sector. Now, governments prefer to accomplish their housing policy goals by providing tax credits and other assistance, such as eligibility to use tax-exempt bonds, to private developers of housing projects that are consistent with those goals.
Green National Development will be solely responsible for the repayment of the principal and interest, if any, on the bonds. The company will use the proceeds from rent payments to repay the bonds.
General news reporter Sharon Myers can be reached at sharon.myers@the-dispatch.com. Follow her on Twitter @LexDispatchSM.
This article originally appeared on The Dispatch: The Club Apartments in Lexington slated for a $20 million renovation
