Business Strategy: Financing for Alley’s End development brings affordable housing

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This week marks a significant milestone for affordable housing in Oklahoma City. The Alley’s End project, a 214-unit complex designed as affordable housing, has officially secured financing to move forward with the development. We look forward to the groundbreaking at NW 4th Street and E.K. Gaylord Boulevard soon.

The developers, Rose Rock Development Partners, secured financing to move forward on the two-building complex and it is expected to be fully leased by the summer of 2026. This project addresses a need for lower-income renters, which would not be possible without the Oklahoma City Urban Renewal Authority’s (OCURA) role in helping secure the land. In late 2020 OCURA entered into a Redevelopment Agreement for the parcels, later amended in mid-2023, enabling the complex’s two-phase development.

Alley’s End was conceived to serve residents with incomes ranging from 30% to 80% of the area median income (AMI), and the need for such accommodations is growing. About 25% of Oklahoma renters are low-income, defined as a household income at or below the poverty line. The last few years’ increase in rent prices has certainly exacerbated the issue, as the majority of low-income renters are spending over 50% of their incomes on housing. According to the National Low-Income Housing Coalition, Oklahoma has a severe lack of affordable housing, at 77,000 units short of what is needed.

The Alley’s End project is a timely response to ongoing economic challenges like inflation and rising interest rates, that have made affordable housing even more essential. Developments like Alley’s End are critical for ensuring that all individuals can find stable, affordable homes. Housing for all income levels will continue to be crucial with the addition new jobs in or near downtown from projects like OKANA and the new arena.

The financing package for the project includes federal and state Low-Income Housing Tax Credits, Oklahoma City’s General Obligation Limited Tax Fund, and ARPA contributions from the Oklahoma County Home Finance Authority, totaling around $56.8 million. Preventing folks from getting priced out of this region will directly contribute to economic resilience.

Offering secure housing at a sustainable cost fosters economic stability downtown. Walkable and nearby housing for those working downtown is important. More affordable housing developments can support Oklahoma City’s rapidly growing population and improve the stability, not only of individuals’ lives but of our economy more broadly.

Kenton Tsoodle is the president of The Alliance for Economic Development of Oklahoma City.