Wake County Commissioners approved an extension of a $552,000 federal HOME loan to Evergreen Construction for its plan to build the low-income Mingo Creek Apartments — 92 family units and 47 senior apartment units.

The two-year time limit had run out on the loan. The N.C. Finance Agency also had to agree to underwrite the federal credits again because their value to investors declined with the market, said Lyle Gardner, president of Evergreen Construction, the developer. Knightdale Mayor Russell Killen told town council last Monday he had appealed to county commissioners to vote against the extension, but his arguments failed.

Killen said low income housing should be located in western parts of Wake County rather than in the east where it already exists. Knightdale has one of the higher concentrations of low-to-moderate income housing in the county at 6.3 percent.

He said Hodge Road Elementary School had the fifth highest concentration of students who receive free to reduced lunches. The apartments will be located at the intersection of Mingo Bluff Boulevard and Hodge Road across the street from the school. He also said the area does not have access to mass transit.

The developer has to pass some more hurdles before the apartment community is built.

While the developer’s master plans have been approved by the town of Knightdale, the town hasn’t signed off on a development agreement, said Assistant Town Manager Seth Lawless.

Evergreen also needs approval from the Mingo Creek Homeowners Association which opposed the new development and tried to get the property rezoned to force the developer to make changes to the project.

The HOA later withdrew their rezoning request.

The town is requiring Evergreen to erect a traffic signal at the intersection of Mingo Bluff Boulevard and Hodge Road. The company needs an easement from the Mingo Creek Homeowner’s Association to install it.

“We’re hoping things will work out,” said Gardner. “The town of Knightdale is requiring the light which would improve traffic flow. So hopefully, the residents will see that as a benefit to the neighborhood. It would improve the safety of that intersection as well.” President of the Mingo Creek Homeowners Association Tabitha Hagen wouldn’t say whether the organization would sell a small parcel to Evergreen for an easement.

“We had one good meeting in September and we were supposed to hear back from them to have further discussions about money, signage and other details,” said Hagen. “We never heard from them since.”

At a hearing two years ago, the Mingo Creek Homeowners Association protested because of the apartment’s location and said an already-overcrowded Hodge Road Elementary School would have more students because of it.

The residents also said the intersection was too congested for apartments.

About the same time the town was considering the Evergreen project, council members enacted a policy which limited the number of apartments that attract residents with low-to-moderate incomes because they said the town’s supply of water is limited.

That policy was eventually rescinded and the town approved a water and sewer allocation plan to address the issue. Gardner said his project would be beneficial to the town. He said aesthetics of the community will match those that charge rents at market rates.

“There won’t be much difference than the ones that are charging $1,000 or $1,200, except that our rent will be half or less than half for residents who earn 30 percent less than the median income.”

Gardner is hoping goodwill pays off.

His company has built single family homes here before and manages an affordable community in Knightdale’s Park Place.

“We’ve had traditionally a good working relationship with the town of Knightdale and would like to continue that,” he said.