Elkhorn City, Kentucky, sits in the foothills of the Appalachian Mountains of Eastern Kentucky - an area that touts many geographic wonders and outdoor activities that make it a major tourist destination in the state. The city itself spans about two miles and is home to just over 900 people. The local economy has struggled since the 2008 recession with the employment base showing no signs of growth in recent years. Furthermore, the unemployment rate is considerably high compared to the rest of the state. With limited rental product in Elkhorn City and the closest comparable Low Income Housing Tax Credit (LIHTC) property 52 miles away, the rehabilitation of Elkhorn City School into affordable housing is a welcome addition to this small town.
Adaptive Reuse: 27 Units
Private Equity Investment: $4,889,450
Local Jobs Supported: 33
Local Government Revenue: $223,236
Projected Ongoing Annual Effect:
Local Jobs Supported: 8
Local Government Revenue: $119,070
Elkhorn City School Apartments is an adaptive reuse of a vacant high school into 27 affordable units for families. The rehabilitation features one- to three-bedroom units for families earning 50 to 60 percent of the Area Median Household Income (AMHI). Originally built in 1938, the hardwood floors, tall ceilings, and wide hallways in this historic building were all maintained during construction. The building is equipped with an intercom and secure entryways. Elkhorn City School is located within one mile of most services including a grocery store, convenience store, pharmacy, bank, discount shopping, and health center. The local elementary school is also located one mile from the property. In addition, families enjoy an on-site playground thanks to a $10,000 grant by the CAHEC Foundation.
Elkhorn City School Apartments is co-owned by AU Associates and an affiliate of the Pike County Housing Authority (PCHA). AU Associates was formed in 1990 to focus on adaptive reuse developments and opportunities for urban infill and revitalization. This is CAHEC’s eleventh investment with AU Associates, including two additional developments close by in West Virginia and Kentucky. The partnership between AU Associates and PHCA was a significant one as this deal marks PCHA’s very first LIHTC deal. Elkhorn City School Apartments will be the first LIHTC development in the market and the newest multi-family product for families in Elkhorn City in 45 years. The property provides a quality housing option in an economy where lower-wage employees are most vulnerable. Elkhorn City School Apartments provides residents a safe, affordable housing option in an underserved area that will be appreciated for years to come.