The Bloomington Housing Authority last week finalized its $93 million purchase of five apartment complexes with 924 units: Summit Pointe, Basswood, Woodland Springs, Kingston Manor and Northcrest.

The process of issuing bonds began this summer. BHA Executive Director Nathan Ferreira said the goal is preserving market-rate units for the Bloomington workforce and eventually convert some to subsidized housing after seven years.

He added that the purchase entails some risk, but given the need, the BHA was willing to take a chance.

“I think like a lot of housing authorities, we are trying to get really creative about what it's going to take to develop and preserve affordable housing,” Ferreira said. “Selling bonds is not a tool that housing authorities have utilized all that much.”

Ranging between 37 and 62 years old, the buildings are experiencing “significant operational and physical challenges,” according to a press release from the BHA. The organization plans to invest around $10 million in rehabbing those units over two years, beginning this winter.

Ferreira said his group was better equipped than a for-profit developer to make those upgrades while keeping rent affordable.

“I would say we're uniquely positioned,” he said. “Given that we're a nonprofit, given that it's a mission-based project, and that we have the ability to sell bonds at a municipal rate, which means the lending costs on all this are lower.”

BHA tapped Bloomington-based property manager Hayes Gibson Property Services to manage the apartments on its behalf.

Ferreira said interior upgrades will begin immediately, starting with vacant units.