COVINGTON, Ga. — Magnolia Heights Apartments is set to be renovated after a $22 million bond issuance by the Covington Housing Authority for a Valdosta-based property management firm was recently approved by the city council.

Ambling Covington, a limited partnership that was formed in April, per the Secretary of State’s website, made an application earlier this year to the Covington Housing Authority for tax-exempt revenue bond or note financing for “the acquisition, rehabilitation and equipping” of the 200-unit multi-family housing development located at 10156 Magnolia Heights Circle. 

In approving the bond issue, the city of Covington is not indebted or obligated to financially back the bond. Bonds are “to be payable solely from the revenues derived from [Ambling] and pledged to the payment thereof,” the resolution stated. The city of Covington was asked to approve the bond issuance to meet Internal Revenue code requirements, said Allison Dyer, who is a partner with Holland & Knight and served as bond counsel.

A representative of Ambling was on hand to speak about the renovation plans for the 20-year-old complex and its impact on the area. He said construction was anticipated to begin in February barring any setbacks and would take between 12-18 months to complete. During the course of construction, only one to two buildings would be renovated at a time, he said. The apartment complex was currently creating vacancies to allow enough space to temporarily relocate tenants on site while renovations are completed.

Rent rates would not change very much, the Ambling representative said. In fact, rates for one-bedroom units (currently $702-$950 per month) and two-bedroom units ($842-$1,050) would decrease, on average. Only three-bedroom units ($969-$1,150) would increase, but not by much he said. The Ambling representative confirmed that there were protections in place that would keep current tenants’ rate from changing for at least one year after moving into a renovated unit. 

Renovations would involve changes to each unit’s interior and exterior. Ambling plans to spend up to $55,000 in upgrades per unit. Plans include but are not limited to a new roof, new HVAC, electrical and plumbing work, and the addition of new amenities. There were also plans to spend more than $130,000 on a new 32-camera video surveillance system at the apartment complex to address crime and improve quality of life.

The Ambling representative said Magnolia Heights Apartments was currently restricted to 70% affordable housing, but after renovations, it would be proposed to change that rate to 100%.

During its Monday, Nov. 15, meeting, the Covington City Council voted 4-2 to pass a resolution that approved the bond issuance and certify that a public hearing had been held by the Covington Housing Authority. But the approval did not come without contention.

Councilwoman Fleeta Baggett, who was one of the two opposing votes, initially motioned for the council to deny the bond issuance request.

Baggett was visibly frustrated with plans to restrict the apartment complex to 100% affordable housing, and she also voiced her displeasure to see that no one directly affiliated with the housing authority was present for the meeting. She said this was the first time the council had heard of the housing authority’s plans.

“Unfortunately for you,” Baggett said to the Ambling representative and Dyer, “we’ve not been given clear parameters by the housing authority lately. And I’m very uncomfortable with this. And due to that fact — I mean, how many more projects do they have going on? I mean, we just are hearing of this. We had the whole Baker Field debacle that went on a month ago. Now we’re turning around on the next thing, item 10 is a whole other thing going on … and no one can show up? I’m a hard ‘no.’”

Councilman Don Floyd (who also voted to oppose the bond issuance) seconded Baggett’s motion, but the move to deny failed 4-2. Only Baggett and Floyd voted in favor of denial.

To clarify, the Ambling representative said the affordable rent program for Magnolia Heights required potential tenants to pass background checks and credit checks, and pay the rent. He said the bulk of tenants are self-paid and do not get a voucher or any type of rental assistance.

“In this program, affordable housing is not provided through a monthly subsidy to tenants, but instead by offering tax credits to finance the project and then, in exchange, the developer keeps the rents artificially below market,” the representative said.

He said if the council did not approve, other options to fund the project would be exhausted, but he felt this was the most viable option for this specific property.

Councilman Anthony Henderson eventually made the motion to approve the resolution, and Councilwoman Hawnethia Williams seconded. It was then passed 4-2.

Henderson said he was initially concerned with the proposed bond approval and project, but he said the upside in improving the quality of life was what made the difference for him.

“We have to realize a lot of people living in this community may not have the ability to pay full market rent,” Henderson said. “This gives people opportunity for people not as fortunate to … still get a great quality of life and great place to live in.”

The following business item, as Baggett alluded to previously, was another request for the Covington City Council to approve a bond issuance, but this time from the Covington Housing Authority to The Reserve at Jackson Highway, LP, in the amount of $23 million to finance the “acquisition, construction and equipping” of a 102-unit multi-family housing development to be located at 9155 SW Jackson Highway.

The Reserve at Jackson Highway is a domestic limited partnership that was formed by Cogency Global Inc. on June 30 and is based out of Woodland Hills, according to the Secretary of State’s website.

Developer Keith Bauer said plans would call for 72 single-family homes constructed on the property and 30 townhomes that would be available for long-term rental.

“We were told [at the time of the land sale] that they would not be rentals,” Baggett said

Bauer responded by saying that the goal would be to work toward homeownership.

“We’ve set it up to be an affordable housing project,” he said. “It’ll start off as long-term rental of single-family and townhome units. Then our exit strategy would be to sell them as low-income, affordable homes.” 

He said they were working with housing authority on the financing.

At that point, Councilman Kenneth Morgan said he didn’t understand the issue of the housing authority not being present for this particular request, as well as the previous request.

“We’ve approved things like this all the time without representation being here,” he said. “I don’t know why [we say tonight], ‘Well, where’s the housing authority?’ We’ve done this all the time … I think this is spill over of what has happened [with Baker Field], but what has happened shouldn’t have anything to do with this particular situation.”

“I’m not apologizing for asking questions,” Baggett said in rebuttal to Morgan’s comments. “I apologize if I, personally, am coming off as rude, but we got blistered, and it’s not happening again. Not on my watch. And I’m sitting here with four pages of stuff the housing authority owns. I can’t even begin to tell you when I started digging into this what I found. We need to either table it, or they need to show up. Because I’m not willing to put my name on any of this stuff. And in saying that they’re not here is not an excuse. If it’s important to put their name on the bond, it’s important enough for them to show up for $22 million.

“We also are fixing to do a program where $350,000 is going to improve homes of people that are here,” Baggett later continued. “$750,000 is going toward people buying their homes. At some point we have to stop. I’ll be happy to give everybody copies of what I’ve looked at over the weekend. It is very important that we get on top of this. We can’t go from one extreme to the other and be saying, ‘We don’t have anywhere to eat; we don’t have anything for people to do; we don’t have any of this; we don’t have any of that; the traffic, the traffic, the traffic;’ and then you’re willing to turn around and do this again? I’m just dumbfounded. And it doesn’t have to be this. I’m talking the Neely property. I’m talking about all of it. I mean, y’all put the brakes on it.”

Horton suggested the council table the item considering the questions surrounding the proposed development, including what was originally approved at the time of property’s sale and what had been discussed during Monday’s meeting.

Bauer appeared to have no issue with the council tabling the request and said his development group was willing to work with the city in whatever way necessary.

“We’re trying to give you the best quality affordable housing that we can in this area,” Bauer said.

Williams said the issue at hand was the stigma that comes with the term “affordable housing” or “low-income housing.”

“Sir, there’s a real stigma here in Covington with affordable housing,” she said to Bauer. “They see it as too many people with low incomes, too many brown and Black people coming in with low incomes. That’s basically the stigma that has come out with low-income housing. Every time you say low-income housing, the folks just frown all over the room, saying, ‘Oh lord, here they come. There’s already too many already. We don’t want any more.’ People need quality of living whether they’re Black, white, purple, green or polka dot. The stigma of the structure has caused the anti-feeling against affordable [housing]. Anytime we mention affordable, we get into a boxing match … Our concern should be providing quality of living for people who [are in] need.”

After discussion concluded, the item was tabled to Jan. 18.