By Joe Jarosz
Northeast News
April 22, 2015

KANSAS CITY, Missouri — A recent meeting has neighborhood residents cautiously optimistic about the future of a Northeast apartment complex.

Northeast residents gathered in the office of the Industrial Development Authority of Kansas City last week to learn more about a proposed plan of financing Multifamily Housing Revenue Bonds, series 2015, to Trinity Affordable Section 8 Assisted Apartment Project in the Northeast area. The bond amount is for no more than $25 million, with a portion of the proceeds of the sales bond — no more than $10 million — expected to be used to make a loan to Trinity-Northeast View to finance and/or refinance the acquisition, rehabilitation, equipping and/or improvement of Northeast View Apartments. Northeast View Apartments has a total of 137 multi-family units, 136 of which are Section 8 assisted living units. The Bonds are expected to be issued by June.

Philip Guistolise, Vice President of Trinity Affordable Housing LLC, said the non-profit organization is in the process of purchasing six properties, five in Iowa and the Northeast View Apartments. If all goes according to plan, Guistolise said they should close on the purchase this June. Shortly after, the organization will meet with tenants of the complex to discuss and assess their needs.

“The total amount of money set aside at closing for repairs and operating escrow will be around $800,000,” Guistolise said, adding the total transaction amount will be around $17 million, with around $7 million dedicated to Northeast View. “We plan to start [work] immediately after closing. The first goal of the business will be to fix-up the down units. Those will be up and rented within three months [after we close].”

Guistolise noted there will also be new management overseeing the complex, as well as new staff. He added he’ll probably even make monthly visits to check on the complex. As a non-profit agency, any cash flow from the complex will go right back into the property. Trinity has had studies conducted, but has not yet conducted any outreach with the tenants.

“We’re looking to be a good neighbor in the neighborhood,” Guistolise said. “One of the neatest things I’ve noticed so far is how involved the community is in this transaction.”

Alfred Figuly, executive director with the Industrial Development Authority of Kansas City, clarified that normally, they would issue bonds of this nature, but when there is a multi-state issuance, public finance authorities get involved to accommodate that need in order to make a large financing and to make it affordable for the folks financing and who live in the apartments. Both he and Guistolise clarified that the city is not on the hook for the bonds.

Jessica Ray, president of the Pendleton Heights Neighborhood Association, said before the meeting with Trinity and Guistolise, the Development and Housing Committee in Pendleton Heights met to discuss the sale. She said they reviewed their plans and unanimously voted to support the bond issuance to facilitate a loan to Trinity Affordable Housing Corporation as part of the financing package for them to acquire and make improvements to Northeast View.

“This complex, while not crime ridden or blight to our neighborhood, has suffered significant neglect for the last 25 years and is in need of proper management,” Ray said.

Leslie Caplan, president of the Scarritt Renaissance Neighborhood Association, said the neighborhood supports Pendleton Heights and the plans for Northeast View Apartments. The properties in the Scarritt neighborhood, she added, have always been relatively maintained, but suffer from deferred maintenance, “and that’s something we want to take care of.”

“The neighborhood is hopeful this group will be a good neighbor and we’re more than willing to work with you to make your projects work,” Caplan said. “We anticipate this being a great relationship.”