The City of Storm Lake continues to explore its options on Seneca Place Apartments after the city council refused to take up a motion to supply the financially-troubled low-income housing complex a $10,000 loan.
City Administrator John Call said the city is continuing to look at possibilities for some kind of local support, such as an in-kind donation of computer equipment. Call said the Iowa Finance Authority is also working on getting a new general manager for the complex.
"Once those two things happen, I think it will be kept in the present state as low-income housing," Call said.
The Iowa Finance Authority asked the city to make a $10,000 contribution in the refinancing of approximately $1 million in debt held by Seneca Place Apartments.
Only one council member supported that proposal at the time.
Seneca Place Apartments is a 48-unit low-income housing complex. Rates are determined by the income of the occupant.
The Iowa Finance Authority indicated financial problems at Seneca Place Apartments were the result of poor management. The Iowa Finance Authority has been working on a plan to restructure the debt.
The amount of debt is $1 million. For the IFA to restructure that debt, it requires a 1 percent local contribution. If the project is not refinanced, it could go to a sheriff's sale.