Hubbell Realty Co. plans to construct three apartment buildings at 5409-5521 S.E. 14th St. in Des Moines beginning this spring.

A city of Des Moines staff report dated Nov. 24 states that the 84 affordable housing units of the Melbourne Apartments will enhance the South Side neighborhood, and the city recommended that the Iowa Department of Economic Development (IDED) approve an application for Enterprise Zone benefits. In December, the IDED approved an estimated $177,000 benefit, said Kent Powell, program compliance manager.

Melbourne Apartments also is one of eight Greater Des Moines projects that will share more than $180 million in Low Income Housing Tax Credits, awarded by the Iowa Finance Authority in December, over the next 10 years.

Developers sell tax credits to investors to generate equity for their projects.

“We feel good about where we’re at” in pursuing investors to purchase the tax credits, said Steve Niebuhr, Hubbell’s senior vice president of construction and management services.

Hubbell has made a 30-year commitment to affordability with the $10.6 million project, slated to be completed in spring 2010. Rents for the 84 units, ranging in size from 612 to 1,091 square feet, will run from $540 to $730.

A site plan for the development will be reviewed by the Des Moines Plan and Zoning Commission on Jan. 15.