Construction began last month on McAuley Place, a 160-unit affordable housing development that will be directly east of the Bentonville Community Center at the corner of SW I Street and SW 41st Street.

McAuley Place will bring 40 single-family cottages and 120 apartments to the Bentonville community at a below-market rental rate. The cottages will be reserved for Bentonville School District employees, according to Ali Johnson, director of marketing and communications for Excellerate Foundation.

The project is expected to be complete by late 2026, with the apartments completed first, Johnson said. 

A 3,000-square-foot early learning center run by the Bentonville School District is also planned to open with the project. It will include a pre-K program with 40 slots for children 3 to 5 years old, and an infant/toddler program with 20 slots for children 6 to 24 months old.

McAuley Place is part of the federal Low Income Housing Tax Credit program and is also being funded by philanthropic grants, donations from the public, and federal and state government dollars. No county or local tax dollars are used, although Benton County is contributing to the project with federal dollars acquired specifically for stable housing projects.

The development will provide housing for households earning between 30% and 60% of the area median income, or roughly $28,000 to $56,000 annually for a family of four.

There will be one-, two- and three-bedroom apartments ranging from 650 to 1,100 square feet in size. Estimated monthly rent is expected to be around $750 for a two-bedroom apartment. The cottages will have two bedrooms, two bathrooms and will be 850 to 1,000 square feet, with an estimated rent of $1,000. Cottages have a maximum residency of five years.

A new program called “HOMES” will help residents of the cottages save for a down payment on their next home. 

“HOMES program cottages will be around $1,500 a month and place residents onto what we call the ‘equity escalator,’” Johnson said.

When residents move out, the principal of their monthly payments and a large portion of the equity appreciation can be used for the purchase of a home.

Residents will leave with an estimated $50,000 for a down payment or other home purchase expenses, but the actual amount depends on the length of time in the program.

The project is led by Excellerate Foundation, which has partnered with Bentonville Schools, Benton County government, Mercy, Walton Family Foundation, Snyder Construction, Crafton Tull and others to bring it to fruition.

Reserving the cottages for Bentonville Schools teachers and staff was incorporated into the vision of McAuley Place after a failed effort to build housing on school district property behind Bentonville High School. In February 2024, the Bentonville City Council rejected a rezoning request that stalled that project. 

The application period for McAuley Place has not been determined yet. For more information or to stay informed about the upcoming application period, contact the property management team at Strategic Realty at [email protected]. Learn more about the affordable housing project here.