News Analysis/Officials answer questions about fate of some tenants in Sherri Estates rehab project

Our recent story on the pending project at Sherri Estates has prompted questions and comments from readers that indicate there's a lot of confusion surrounding low-income housing and how the new project (and a year-old project at Mallory Place, formerly Santa Fe Apartments) may affect current and future residents when the rehabilitation and renovation is complete.

In an effort to make the picture clearer, The Marshall Democrat-News spoke with project developer Jon Schulte of HJS Development and Ann Graff, executive director of Missouri Valley Community Action Agency (MVCAA).

Sherri Estates is currently managed by Cohen-Ussery of Olathe, Kan. The deed of trust is held by Regions Bank of Montgomery, Ala., according to information from U.S. Department of Housing and Urban Development (HUD).

A number of projects like Sherri Estates were built nationwide in the 1970s. It was always permissible under HUD regulations (and remains so) to rent to individuals and families outside the established low-income parameters, if suitable low-income candidates could not be found. Allowing rental to non-qualifying residents allowed developments to remain profitable, which, for many such projects, wasn't always easy.

Income guidelines for Sherri Estates and other, similar projects are based on the median income for a specific area, usually a county, and is periodically adjusted (usually annually); effective Oct. 1, 2007, the median annual income in Saline County is $46,100. A complete chart of median incomes for Missouri counties is available at the Missouri Housing Development Commission Web site, www.mhdc.com.

When HJS takes over Sherri Estates, residents must meet more stringent low-income guidelines in order to live there than those currently in force.

A family of four crosses the low-income threshold and is eligible to live in low-income housing if their household income is at or below sixty percent of the median income -- that's $29,040 per year.

A single person crosses that threshold at $20,340. A family of six doesn't cross it until annual income is less than $33,600.

When the Sherri Estates project is complete, residents who don't meet the 60 percent guideline will have to move elsewhere.

That doesn't mean they'll be kicked to the curb and left to fend for themselves -- far from it.

MHDC provides clear guidance on how both temporary and permanent relocations are to be handled by the developer. The document, available on the Web at www.mhdc.com, details the assistance available for families or individuals who have to be moved during the project.

Among the items that may be paid for from project funds are expenses for packing, moving and unpacking household goods; disconnecting and reconnecting appliances, telephone and cable services; and assistance in finding another place to live. Some residents who are required to move may be eligible to receive rental assistance payments for a period of time after the move.

According to the HUD publication, residents won't be required to move without a reasonable advance notice.

Schulte and Graff both acknowledged that there will be a need for relocations at Sherri Estates as there were with Mallory Place, but emphasized the need for current residents to stay where they are in the short term. Residents who leave Sherri Estates before HJS takes over the property may not be eligible for any assistance at all. Schulte said he expects the transfer of physical assets to take place in March, but said residents should wait to be notified of their status by HJS before doing anything.

Architects visited Sherri Estates Friday, Jan. 25, to begin preliminary planning.

The project, to be named Deer Creek when it's complete, is expected to be a big boost for low-income housing in Saline County, as well as a boost to the local economy in the form of construction jobs.

Contact Kathy Fairchild at marshallhealth@socket.net