A Delaware real estate company on Wednesday launched its vision for a 46-unit affordable housing development in Reading.
Delaware Valley Development Co. of Hockessin, Del., announced its plan for The Homes at Riverside Community at 1001 Weiser St., Reading.
Total development costs will exceed $13 million, said Glenn Worgan, vice president and principal of Delaware Valley Development Co. Most of the funding is from equity from the syndication of tax credits the project will earn through the Pennsylvania Housing Finance Agency in Harrisburg.
Worgan said Delaware Valley Development successfully applied for more than $1 million in tax credits per year for 10 years. The company will sell the tax credits to a corporate investor for total equity that will amount to about $12 million, he said.
The project also earned two loans from the city and Berks County, plus financing from Fulton Financial Corp., he said.
Construction should begin within 60 days and finish in about a year, Worgan said.
The workforce housing will not be age-restricted. It will be for people on a limited income and those who are handicapped, Worgan said.
“There is a great need for this type of housing in the city of Reading,” he said. “I think that’s widely known.”
The two- and three-bedroom apartment units will look similar to townhouses. Most of the two-bedroom units will rent at $626 to $777, while three-bedroom units will be $715 to $889. Some of the two- and three-bedroom units will rent for below $200 for those who are handicapped, he added.
The project includes building a community center, space for on-site management and supportive services for residents.
The construction firm is E.G. Stoltzfus of Lancaster; Architectural Alliance of Wilmington, Del., is the architect. Ludgate Engineering of Reading is the engineer.