Non-profit runs out of money, boards building
I recently received an email from a reader asking if I knew why the Pillar Place Apartment building was now boarded.  I didn’t know the name but once I looked up the address provided to me (3407 Lafayette) I knew the building. In August 1990, when I first moved to St. Louis, the building was vacant, just waiting to be reused. By February 1993 I was delighted the building was renovated into apartments.
From the St. Louis Post-Dispatch February 27, 1993:
“On Wednesday, they [the Brown family] became one of the first six families to move into Pillar Place, a newly renovated apartment building for 19 low-income families at 3407 Lafayette Avenue, St. Louis.
“This is one of the happiest days of my life since I moved to St. Louis,” said Brown, 29, who came here from Mississippi 11 years ago.
The 19 Roman Catholic religious orders and a nonprofit corporation that came together to make Pillar Place will celebrate with a grand opening there at 1 p.m. Sunday.
They have taken a four-story building listed on the National Register of Historic Places and converted it into two- , three- and four-bedroom apartments for people “stuck in the funnel” of temporary housing.
“We realized the real need is for permanent, affordable housing,” said Sister Mary Louise Denny, a Sister of Loretto and a board member of the Intercommunity Housing Association, which helped start the project. “This will be a drop in the bucket – we could have found 10 times the number of people who need this. But it’s a start.”
The building opened in 1907 as the Loretto Academy, a posh school for girls and a residence for the Sisters of Loretto. The school moved to Nerinx Hall in Webster Groves in the 1950s, and the retired nuns who then made the building their home moved to the suburbs in 1988.
About that time, the St. Louis Equity Fund was started. Through the fund, area companies invest in partnerships that provide low-income housing. In return, the companies can earn tax credits. The Intercommunity Housing Association – made up of 13 religious organizations – joined with the Equity Fund and six other religious groups to raise the $1.5 million needed for renovation and organization of Pillar Place.”
From the Intercommunity Housing Association website:
“Formerly Loretto Academy high school for girls converted into 19 two, three and four bedroom apartments. Pillar Place serves about 22 adults and approximately 70 children. The complex has a large parking lot, two playground areas, a picnic area, and vegetable gardens for the tenants to use.”
Also from their website is an overview of who they are and what they do — uh, did:
“IHA is a not-for-profit organization with 501(c)3 tax exempt status.
Our support services are paid for through generous donations of individuals, families, churches and religious groups, civic organizations, corporations, foundations, and special events.
The operating expenses of our buildings including mortgage, insurance, maintenance, and repairs are partially paid for out of tenant rents which are subsidized by the U.S. Department of Housing and Urban Development. Tenants at Pillar Place and Compton Place pay rent based on their income. They also pay their own utilities. The apartments at both locations offer ample space, providing residents with feelings of comfort, dignity and self-worth they may not have experienced before.
The families of IHA have come from various backgrounds. Some come from shelters, often a family may live in one room at a shelter while they wait for an opening. Some have lived in another family member’s basement, some have lived in hallways of buildings, some have lived in their car. Some of our families are immigrants who have fled oppression and abuse. Others are referred from agencies and organizations in the area. All must meet our guidelines for admission, including police checks and credit checks. A home visit prior to their admission is required for all tenants before acceptance.
Intercommunity Housing Association’s staff, board members and volunteers are constantly working to provide for the 33 families and over 100 children in need. However, they cannot do this alone. Individual and corporate donations are the driving force behind our success. The programs offered make a significant impact on their lives by bringing security and stability. This is accomplished by moving beyond the fundamental needs of a roof over their heads. IHA supplies our residents with the tools necessary to help improve their life circumstances and move them to independence.
History of IHA and What we offer
IHA was created through the collaboration of 19 religious congregations of women who saw the need to provide more than affordable housing for the poor of St. Louis. They saw the need to help the families that came to live at the two apartment complexes to become independent through social, economic and educational supports. Our families are primarily African American, single parent families with an average of 4 children. For the past sixteen years, IHA has provided life skills training, after school tutoring, summer children’s programs, camps for the children, bridges to work and financial assistance with furthering their education.”
Many had to find new homes. Attempts to reach someone from the IHA were unsuccessful. I contacted 19th ward alderman Marlene Davis who indicated the non-profit ran out of money for their operations and needed building improvements. The future of the building is uncertain. Hopefully someone can take over the property.
I was concerned about the other properties the IHA owns, a row of six buildings near Bates at 5300 – 5328 South Compton:
“Four-family flats converted into fourteen one-bedroom and three-bedroom townhouse style apartments to provide permanent housing. The complex has a playground area, picnic area and fenced yard. Each townhome has its own parking pad in the rear. Compton Place serves about 16 adults and approximately 30 children.”
IHA has worked with their investors to ensure these occupied buildings remain occupied.
– Steve Patterson
I am terribly saddened to see the lost of much needed economical accessible housing for low wealth individuals and families. STL is already experiencing a critical AH crisis for asset deficient households and this lost will further matasticize the problem. It is evenmore disturbing that the Alderperson, whose low income areas of her ward severely lack adequate housing, failed to exercise her aldermanic duty and influence to preserve this property for her most vulnerable constituents. Possibly had Marlene Davis been as aggressive in maintaining this treasured community asset, as she was in her pursuit of Paul McKee's urban renewal & gentrification scheme, these families wouldn't have been forced to leave their homes and children once again shifted from pillar to post. In these lean economic times when credit is tighter than it's been in recent history and LIHTCs more competitive than ever, the likihood of finding a buyer who will maintain the property for low income households is slim to none. It reallllllllllly leaves one to wonder if this too is part of an on-going land assemblage scam for land banking developers in search of DALATCs. We'll see…won't we?
Marlene Davis could have well used CDBG and HOME funds to help offset IHA's cost of maintaining this property. This is a perfect example of why CDA and the City's unprecedented political system of allocating CDBG funds MUST BE REFORMED!
IHA is the collaboration of 19 organizations, and still they couldn't find money? Sadly, I suspect SLU will be owning this place in short order–it would fit their land assemblage plans for the Grand corridor.
IHA doesn't own the property; a limited partnership with the SLEF does. IHA is probably the general partner. The boarding of this building doesn't mean the GP is out of money. It does mean the property wasn't able to cover its operating expenses. There isn't enough HOME or CDBG money at CDA to offset every negative cash flow affordable rental property in St. Louis. It's likely the development received a substantial HOME or CDBG infusion at the time of its redevelopment. Times are tough. Tenants are hurting. Operating expenses are static or increasing. These circumstances lead to negative cash flows. After a while, buildings are no longer feasible to operate. It's cheaper to close them.
It is my understanding the rents never covered expenses which is why donations and fund raising were important. City records list IHA as the property owner.
I just drove by the building this morning and wondered why it was boarded up. It's a shame for many reasons. It's a beautiful building with a lot of potential.
Why didn't they make a public appeal for more money? The local news media would have picked up this in a second: people facing the street if the place closed, etc.
The building was opened with a “Mod Rehab” Contract from HUD in the '90's. That program has since been discontinued and no exisiting contracts were being renewed. IHA was unable to get a Section 8 Contract for the building to continue the rent subsidy. The current residents wouldn't have been able to pay the rent needed to maintain the building so they made the choice to close.
I drive down Lafayette almost daily and was wondering what happened. Its a beautiful building…hopefully they can make the repairs necessary and reopen. Thanks for the explanation.