Mercy Properties Washington I LLC, a subsidiary of Mercy Housing Inc., a large, nonprofit Denver-based housing concern, plans to buy and renovate a 40-unit, low-income apartment complex in Cheney.


To help pay for the nearly $2.3 million project, and also to fund other projects, Mercy Properties has applied to the Washington State Housing Finance Commission for a $4 million tax-exempt revenue bond, says Grace Buckley, director of Mercy Housings housing resources division. The finance commission held a public hearing here on the financing application last week.


Mercy Properties expects that the bond will be approved, but if it isnt, the concern likely will seek other financing and still proceed with the Cheney project, Buckley says.


Proceeds from that bond and other funding sources would help Mercy Properties buy and remodel 12 other low-income housing facilities throughout Washington state, Buckley says. The complex in Cheney, which is called Cheney Gardens, is the only building in the Spokane area that Mercy Properties plans to acquire at this time, she says.


Cheney Gardens is located on about 3.5 acres at 2336 University Lane and includes 14 buildings with a total of 35,000 square feet of space, Buckley says. The complex has one-, two-, three-, and four-bedroom units with between 540 square feet and 1,200 square feet of floor space.


The complex, which was built in 1978, is almost fully occupied, she says.


Mercy Properties expects to spend about $788,000 renovating Cheney Gardens over the next 10 years, Buckley says. Remodeling work would include installing new siding, roofs, windows, doors, and exterior stairs and replacing some in-unit appliances, she says.


The projects time line depends on when the bond and other funding becomes available, but Mercy Properties hopes to begin some work later this year, Buckley says. The company likely will hire a Spokane-area contractor, she says.


Cheney Gardens and the other 12 complexes that Mercy Properties is negotiating to buy are regulated by the U.S. Department of Agricultures Rural Development Office, which provides financial resources for rural housing developments, Buckley says. Mercy Properties wants to buy the complexes so that it can take over their management and improve those facilities, she says.


Mercy Housing manages and develops housing facilities as a service to low-income families across the U.S., Buckley says. It owns 27 apartment complexes with about 1,200 apartment units in Washington, and has developed more than 14,000 housing units nationwide.