At the end of the 15 years, the property will be returned to the SHA.

Tim Schweizer, chairman of the SHA’s board of trustees, said the arrangement offers a lot of advantages to the local housing authority.

“We are getting private investment to help redevelop housing for low-income people in Springfield. It’s a win-win for the community to have private investment help us get these units rehabbed,” Schweitzer said.

On Wednesday, the SHA board approved an early start agreement with Bear Development LLC of Kenosha, Wisconsin, to oversee the project. The preliminary construction cost is about $2 million, which will come from investors and other private funding sources.

The SHA may use some of its own funds on the project, but that amount has not been determined.

“The risk is being assumed by the development company,” said Melissa Huffstedtler, deputy director of the SHA. “We will seek additional funding sources through the tax credit program and other grant and self-funding sources to fund the project.”

Schweizer said there are still a lot of details to be ironed out, but the agreement approved Wednesday will get the ball rolling.

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