There's a twist to the latest midtown Omaha apartment structure poised to rise five stories on a grassy lot where a taco truck typically parks.
The developer is not seeking market rate rents for the 134 units to be built southeast of 27th and Leavenworth Streets.
Rather, residents will pay more affordable rates but must meet certain income restrictions to live in the $26 million structure.
The project is to be assisted by federal low-income housing tax credits and other sources including tax-increment financing.
Neeraj Agarwal, spokesman for developer 27LeavenworthOwner LLC, believes the structure will be the first apartment complex in recent years to be built in the downtown and midtown area that is fully dedicated to income-restricted affordable housing.
He said a recent change in the way low-income housing tax credit financing works made it easier to finance such a project. If all goes as planned, construction could begin in July and move-in could start before the close of 2022.
Ninety single-bedroom units would average about 700 square feet in size and lease for about $750 a month. The 44 two-bedroom units will span about 1,000 square feet and rent for about $950, according to planning documents.
The developer seeks $1.87 million in tax-increment financing from the city.Â
Of the $26.36 million project cost, about $8.5 million in equity is to come from federal low income housing tax credits.
Agarwal estimates the property's value, upon completion of construction, to be about $8.6 million. Designed by Omaha-based BVH Architecture, the project will include 86 indoor parking stalls and span about 150,000 square feet.
The apartments would rise on a corridor that has downtown to the east and the growing University of Nebraska Medical Center campus to the west, near 42nd Street. Agarwal said that while the 27th and Leavenworth project is in an emerging pocket, the area isn't yet at a point to sustain a market rate project of that size. Â
A memo by City Planning Director Dave Fanslau said the project meets goals of the city, including creating diverse neighborhoods and reversing deterioration of older areas.
"By constructing affordable housing on vacant land with good access to the employment opportunities, retail and personal services and multimodal transportation options offered in the downtown-midtown area, this project helps to achieve these and other master plan objectives," the memo said.
His department has recommended approval of the TIF-funded project.
Byron Farrington, 58, a resident of the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
General (Ret.) John F. Kelly, a former White House Chief of Staff and Secretary of Homeland Security, speaks during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
A ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
People stand for the national anthem during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
General (Ret.) John F. Kelly, a former White House Chief of Staff and Secretary of Homeland Security, speaks during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
A one-bedroom apartments at Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
A bathroom at the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
A kitchen at the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
The Vietnam Veterans of America Chapter 279 present the colors at the start of a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
General (Ret.) John F. Kelly, center, a former White House Chief of Staff and Secretary of Homeland Security, gets ready to cur the ceremonial ribbon at the official opening of the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
Photos: New apartments open for homeless veterans in Omaha
Byron Farrington, 58, a resident of the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
General (Ret.) John F. Kelly, a former White House Chief of Staff and Secretary of Homeland Security, speaks during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
A ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
People stand for the national anthem during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
General (Ret.) John F. Kelly, a former White House Chief of Staff and Secretary of Homeland Security, speaks during a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
A one-bedroom apartments at Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
A bathroom at the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
A kitchen at the Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
The Vietnam Veterans of America Chapter 279 present the colors at the start of a ribbon cutting ceremony for the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
General (Ret.) John F. Kelly, center, a former White House Chief of Staff and Secretary of Homeland Security, gets ready to cur the ceremonial ribbon at the official opening of the Victory II Apartments in Omaha on Friday, September 18, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
ANNA REED/THE WORLD-HERALD
The Victory II Apartments in Omaha on Thursday, September 17, 2020. The apartments are designated for homeless veterans, with supportive services from the VA also on site.
Old Market shop owners look ahead to a better future after setbacks, including fire, protests and a pandemic.Â
Neeraj Agarwal, spokesman for developer 27LeavenworthOwner LLC, believes this structure will be the first apartment complex in recent years to be built in the downtown and midtown area that is fully dedicated to income-restricted affordable housing.