I'm redeveloping 138-unit affordable assisted living

[Fabiola F.]

I'm redeveloping a 138-unit former senior housing building in Detroit into 100% affordable assisted living facility with an adult day care on site. Incomes will be at or below 60% AMI.

Obviously, the senior housing sector makes sense because of the demographic shifts, but in Detroit, it's even more needed. There's very little inventory. Only 1 assisted living facility that's come down the pipeline in the city within the past 5 years, and nearly a quarter of the state's population are seniors, and in Detroit, it's about 15% and growing. Senior housing developers have been moving in on Southeast Michigan with about 2,000 units in the pipeline over the past 3 years, but they're all private pay and none affordable.

The city & state has realized the need for assisted living and has allocated low income housing tax credits (LIHTC) points for these projects. 

My building is a complete renovation and amenities will need to be added to make it a competitive product. This includes a full commercial kitchen and on site dining, fitness/recreational room, community/entertainment room, and the adult day care - none of which previously existed when it was a senior housing building. All of the main activities of daily living will be provided, including 3x meals, transportation, medication management, laundry & housekeeping, wellness/recreational etc. 

I'll likely lose about 5-10 units to add these amenities, but that still works out since some of the 1-bedroom units will be for couples. 

I have my entire development team & my operating partner specializes in affordable ALF and combining Section 8 vouchers with Medicaid Waivers & VA entitlement funds to subsidize the cost to the residents.

Right now I'm working on securing the capital stack to include 4% LIHTC + tax exempt bond financing, CDFI financing, and funds from the city. HUD 221(d)4 is being considered as a backup, and I'm also starting the process for Brownfields tax credits and other incentives.

I'm sharing to welcome feedback, network with others in the senior housing space, and learn best practices from others who have successfully navigated tax credits and other subsidies.