Saturday, January 18, 2025

Prospective new owners seek funding for Azle Oaks rehab

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AZLE — One of Azle’s oldest apartment complexes may be getting a much-needed makeover.

Jonathan Campbell, a representative of LCJ Companies, approached Azle City Council requesting its support via resolution in an application for a 9% housing tax credit for the rehabilitation of Azle Oaks Apartments.

According to Azle City Manager, Tom Muir, Azle Oaks was built almost 50 years ago and is in need of “some tender loving care.” It is located at 700 Jarvis Lane near the Azle Junior High School and holds about 115 units, housing young families, the elderly and everyone in between.

While LCJ Companies does not currently own the complex, it hopes to in the not so far future. The United States Department of Agriculture’s Rural Housing Service and Department of Housing and Community Affairs offers loans, grants and other resources to development projects in key areas. These entities also offer tax credits to developers for the rehabilitation of certain low-income housing units, which LCJ is seeking in this case. As part of state law, the company must receive the support of the local city council before proceeding. Apart from its written support and a $250 permit fee waiver, the city is not on the hook, financially or otherwise, for any part of this project.

The company had previously approached Azle City Council in 2021 with similar intentions. Campbell said the project was ultimately deemed uncompetitive by the state after a preapplication exposure process. Since then, there has been a rule change where USDA properties are awarded by the state based on the original oldest phase date of construction, which for Azle Oaks Apartments was 1975. Based on new metrics, LCJ Companies believes this year Azle Oaks will be considered competitive.

Altogether, funding approval, purchasing and rehabilitation for Azle Oaks may take two years or more, but Campbell said he expects to appear before council in another 12 months to discuss permitting. By taking part in this process Campbell said the company hopes to own, renovate and manage Azle Oaks for the next 30 years at a much lower subsidized cost. LCJ Companies specializes in the renovation and management of USDA tax credit funded housing.

In a phone call with the Tri-County Reporter, one former resident alleged that there were leaks and ventilation problems causing wet walls and mold in her apartment. In speaking with other neighbors, she reported they also had major plumbing problems which she felt had been ignored by management. Azle Economic and Planning Director David Hawkins said the issues never got far enough along for the city to get involved, after an inspection by SAFEbuilt in August, and current management has made attempts to address leaks in the unit.

“We are going to be investing all in close to $100,000 in rehabbing these properties, the inside and outside,” Campbell said. “New appliances, new flooring, new roofs, new drainage, foundations, plumbing, electrical, we would try to extend the life of this project another 40 years.”

Along with an overhaul of all the essentials, Campbell said LCJ may also install some sports courts, possibly pickle ball, dog parks and other amenities based on the site’s density and how its foundations are laid out.

At time of construction, residents will have the option of staying in their units for a “walk-in rehab” or transfer to a vacant unit until the bulk of work in their apartment is done.