$26M Midvale project aims to provide affordable housing

MIDVALE (Deseret News) — Rising from the ashes of a historic smelter is a federally subsidized housing project that city leaders hope will be an example for property management citywide.

The $26 million Florentine Villas project is being funded by a hodgepodge of sources, including the Utah Housing Corp., Wells Fargo, Zions Bank and Prudential Real Estate. About $5 million of the total cost will be funded by the sale of tax credits, and another $1.35 million will come from an interest-free, federal stimulus-package loan, according to Wasatch Advantage Group financial officer Jeff Nielson.

The 214-unit, nine-building project will be great for young married people and professionals just starting out in their careers, Midvale Mayor JoAnn Seghini , a longtime advocate for the poor.

Rent for the units will be limited and based on the area median income. Residents will have to qualify based on household wages, but they will be paying all of their own rent.

In fact, the bonds and private financing used for Florentine Villas will all be paid with profits made on the property, Nielsen said.

That gives Wasatch Property Management an impetus to keep the project in good condition.

"If the property deteriorates, we won't make rents," Nielson said.

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