HUD Secretary visited Tallahassee over the weekend. Here's why and where she appeared.

The Tallahassee Housing Authority is facing a $5 million shortfall toward its plans to bring senior units at the Orange Avenue Apartments.

Construction is well underway for the project. With $82 million in funding already received, it's one of the largest affordable housing redevelopments for Tallahassee's south side.

During a recent visit, U.S. Department of Housing and Urban Development Secretary Marcia Fudge saw the site up close and talked about her own roots growing up in a neighborhood, not too different from where she was standing.

"Home defines so much of who we are. I was a kid that grew up in a poor neighborhood," Fudge said. "I lived in a home when a lot of my friends didn't have homes."

Fudge, an attorney who became the first Black and female mayor of Warrensville Heights, Ohio, talked about the strong family support she received and how it created a foundation for her future and path forward. That foundation, she said, should be afforded to all U.S. citizens through "an environment that is safe and is decent."

Built in 1972, the Orange Avenue Apartments property is a 28-acre public housing complex that's managed by the Tallahassee Housing Authority. Several years ago, the agency provided its master plan to demolish and rebuild the property that had severe maintenance challenges and infrastructure needs.

THA is federally funded and receives tax credits from the state toward capital projects, such as the Orange Avenue redevelopment.

The $112 project has received more than $7 million in federal funding, including $4.7 million from HUD and $3.2 million from the city of Tallahassee and Leon County governments through allocations stemming from the federal American Rescue Plan, the stimulus package sparked in response to the pandemic.

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Fudge's visit had two Tallahassee connections. First, she was one of three commencement speakers during the Spring 2023 graduation ceremonies at Florida A&M University. In addition, Alan Williams, former state representative, works as the deputy assistant secretary for Intergovernmental Affairs within HUD's Office of Congressional Intergovernmental Relations.

Fudge, pointing to the activity construction site behind, addressed a crowd of residents and community leaders and said, "this is the work the world needs to see."

"We, on any given night in this nation, have almost 500,000 people who sleep on our streets," Fudge said. "It is a travesty to allow people, especially our veterans and others, to sleep on the street in the wealthiest and greatest nation in the world."

More funds needed to finish the project

Construction is about a quarter complete for Phase I, where 160 units featuring one, two and three bedrooms will be built and is slated to be move-in ready by spring 2024. Phase II, consisting of 160 units, will begin vertical construction in about two weeks and should be ready by fall 2024.

While the redevelopment project has the potential to transform one of Tallahassee's low-income areas, it needs another $30 million to build senior apartments as part of its Phase III.

THA Executive Director Brenda Williams said the shortfall stems from cascading factors, including an increase in construction costs tied to the pandemic and an increase interest rates and insurance.

"Then the other issue is that we're building a senior facility," Williams said. "It costs more to build a senior facility because there's less subsidy in the project."

The next few months will be pivotal for the THA as it attempts to gain financial commitments from Leon County, the City of Tallahassee and the Community Redevelopment Agency Board, made up of city commissioners and the mayor who oversee a special taxing district for designated areas.

Williams said she and her team will be making pitches to all three boards for support, which will be necessary for the agency's application for state funding and tax credits needed for the project. The competitive application will be submitted in August and is based on a lottery selection process.

"We have to compete with other developers across the state and medium-sized counties," Williams said. "If we're not successful in August, then we'll apply again in October for another round of tax credits. And if we're not successful, then we'll apply again next year. So it just depends ... We've been very fortunate for Phase one and two to get a good lottery numbers. We hope our luck continues."

Contact Reporter TaMaryn Waters at tlwaters@tallahassee.com and follow @TaMarynWaters on Twitter.

This article originally appeared on Tallahassee Democrat: HUD Secretary visits Orange Avenue Apartments redevelopment site