SHARON, PA. Authority contributes to apartments project

The city of Hermitage is kicking in $600,000.
SHARON, Pa. -- The Mercer County Housing Authority is putting $187,000 into the development of a 60-unit apartment complex for the elderly in Hermitage.
That's how much the authority promised to contribute to the project when it was selected by the city of Hermitage to be a partner in the development, said L. DeWitt Boosel, authority executive director.
The authority board of directors fulfilled that promise Wednesday, voting to take the money out of its federal account for senior housing funds.
The total project cost is estimated at $6.5 million, but Boosel said that number could change. Costs and financing have yet to be finalized, he said.
The city of Hermitage has committed $600,000 from its federal Community Development Block Grant funds to the project, putting up $230,000 to actually buy the 20-acre site at Lamor and North Keel Ridge roads.
The rest of the city money will be used to clear and make improvements to the site to prepare it for construction.
Boosel said tentative financing plans call for the authority to borrow about $2 million through a bond issue and to seek tax credits from the Pennsylvania Housing Finance Agency to cover the rest.
The authority could apply for those credits as soon as April, he said.
The credits would then be sold to banks or other financial institutions for cash to be used in the project.
No construction timetable has been established, but Boosel said it may be possible to begin work in late 2004.
A recent market survey shows there is substantial demand for this type of housing in Hermitage and the authority should have no problem filling the 60 units, he said.