FOR IMMEDIATE RELEASE

June 10, 2024

Contact: Mike Nowlin

Cell Phone: 989-450-0855

CMHA acquires 160-unit Waldren Woods apartment community 

for $30 million

Sale comes amid ‘all-time historic high’ demand for affordable housing in Columbus

COLUMBUS, Ohio – The Columbus Metropolitan Housing Authority (CMHA) announced today it has completed the $30 million purchase of the 160-unit Waldren Woods apartments with plans to ensure the property operates as a mixed-income community for households of all income levels.

“There’s no question the need for mixed-income housing is at an all-time historic high in Columbus and throughout central Ohio,” said CMHA President and CEO Charles Hillman.

“Our decision to add Waldren Woods to the CMHA portfolio reflects a strong commitment to our mission to provide access to affordable housing opportunities for all residents of Franklin County,” Hillman said.

CMHA bought the property from a single-asset LLC created by Donald R. Kenney (DRK) & Company Realty, a full-service commercial real estate company in Columbus that developed Waldren Woods.

The acquisition is part of CMHA’s strategy to acquire multifamily housing communities located in proximity to schools, transportation options, job centers, healthcare services and other amenities.

The purchase also exemplifies CMHA’s strategy to own, preserve and promote “mixed-income developments,” defined by national nonprofit Local Housing Solutions (LHS) as generally referring to residential settings in which housing is affordable to individuals and families with different income levels.

CMHA’s new ownership of Waldren Woods, for example, ensures that:

• 10% of the units, or 16 apartments, will remain accessible through CMHA’s Housing Choice Voucher Program for households earning 30% of the Area Median Income (AMI), which in metro Columbus is an annual income of about $21,700 for an individual and $27,900 for a family of three.
• 30% of the units, or 48 apartments, will be available to residents earning up to 80% of AMI, which is about $57,900 for an individual and $74,400 for a family of three, and which aligns with CMHA’s strategy to provide more “workforce housing.” According to the Urban Land Institute (ULI), workforce housing is defined as housing affordable to households earning between 60% to 120% of AMI.
• 60% of the units, or 96 apartments, will be market-rate with no income restrictions.

CMHA, ULI and other policy experts tout workforce housing as a pragmatic approach to help provide housing for middle-income workers, which includes professions such as police officers, firefighters, teachers, health care workers, retail clerks, and others.

Households who need workforce housing may not always qualify for housing subsidized by the Low-Income Housing Tax Credit (LIHTC) program or the Housing Choice Vouchers program (formerly known as Section 8), which are two major programs in place for addressing affordable housing needs.

At the same time, as ULI notes, in many cities across the country, it is increasingly difficult for middle-income workers to buy or rent housing in the areas in which they work. This is in part due to wages not keeping up with increasing costs of living but is also due to the limited supply of housing affordable to these workers in markets like Columbus and Central Ohio.

In response to limited affordable housing options in the areas where they work, many middle-income workers move to the outer fringes of a region, leading to longer commute times for the worker, higher levels of traffic, and other negative externalities for the surrounding area.  

The challenge of providing a sufficient supply of workforce housing in central Ohio is what CMHA aims to resolve through ownership of communities such as Waldren Woods.

Built in 2022, Waldren Woods has 1-, 2- and 3-bedroom units that feature new appliances, including an above-range microwave, 2-inch wood blinds, satin nickel lighting and fixtures, abundant closet space and full-size washer and dryer connections. The lifestyle package that Waldren Woods provides its tenants has resident cyber stations, billiards, a 24-hour onsite fitness center with cardio and weight machines, as well as a resort-style pool with a fire pit and an outdoor kitchen.

The location of Waldren Woods in the quaint Livingston-McNaughten neighborhood is approximately 12 miles east of downtown Columbus and only two miles west of downtown Reynoldsburg, in a charming area lined with ranch-style homes, apartments, and townhomes that range from affordable to mid-range, all nestled within a suburban-style neighborhood.

There are three shopping centers less than one mile from the property. Five public parks are within 11 miles, including Blacklick Woods Metro Park, Pickerington Ponds Metro Park, and Franklin Park Conservatory and Botanical Garden. Waldren Woods also is near John Glenn Columbus International, located 7.7 miles or 15 minutes away, and Rickenbacker International, located 12.9 miles or 20 minutes away.

CMHA’s purchase of Waldren Woods comes amid a well-documented shortage of affordable housing in central Ohio.

Only 29 affordable housing units are available for every 100 extremely low-income households in the Columbus and Franklin County area. In Franklin County, roughly 54,000 families spend more than half of their income on housing, according to the Affordable Housing Alliance of Central Ohio (AHACO).

Rents nationally have risen 14% overall since 2021, going up much more than wages, according to U.S. Census data. Experts say the spike is partly due to landlords making up for their inability to raise rents during the COVID-19 pandemic and current vacancy rates at their lowest point in 35 years, census data show.

“With affordable housing options and plenty of amenities nearby, Livingston-McNaughten is the ideal neighborhood and Waldren Woods is the perfect place to live, work and play, whether you’re young and want to grow families or if you’re a senior and want a quality home and peaceful community where you can age in place,” said Bob Bitzenhofer, CMHA vice president of planning and development and who also serves as the AHACO board chair.

“The property offers direct access to Interstate 270 and bus routes on U.S. Route 40, making it convenient for commuters who need to head in and out of the city on a daily basis,” Bitzenhofer said.

“And as Columbus continues to grow, Waldren Woods will be a tremendous opportunity for our residents for years to come,” he said. "This meets CMHA’s vision to provide access to safe, secure, and reasonably priced housing. It's ensuring that everyone – regardless of their economic situation – has an opportunity to live in a home that meets their basic needs without sacrificing other essential needs such as food, healthcare, insurance, education, and transportation. It's housing for all."

CMHA is issuing $28.1 million in bonds through KeyBanc Capital Markets as part of its Waldren Woods purchase, bringing CMHA’s total bond issuance to more than $200 million for the development and acquisition of affordable housing for all. It’s part of CMHA’s long-term strategy to grow investment in the region’s housing stock that will more effectively address central Ohio’s housing shortage, agency officials said.

The bonding activity was spurred by the A+ rating the authority received from S&P Global. S&P is considered the largest of the three major credit rating agencies, which also include Moody’s Investors Service and Fitch Ratings. The A+ rating was secured after extensive third-party reviews and reporting from CMHA’s finance team.

“Our S&P A+ rating will significantly reduce the agency’s cost of financing by providing access to the bond markets,” CMHA COO Scott Scharlach said. “These factors create a self-sustaining model that will assist us in delivering on our strategic goal of adding to our portfolio a minimum of 500 units of housing per year over each of the next five years.”

For more information, visit cmhanet.com.

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