Real Estate Agent · Roseville MN · Member since 2016 · 30 posts · 9 votes
Hello this is my first post on BP. I am wanting to do my first deal and know of a great deal of need of senior living/ disabled, low income housing in my area. I live in a small agriculture community (population 1200 with an average income of $40000 per household. But the population has 14% of the people 65 and older. I have talked to the EDA of the town and discussed the need of rental housing. The city is offering a free lot with utilizes if i build a 4 unit + building. I plan on occupying it to get the best financing. Has anybody on here ever dealt with senior living? Is there government programs to help fund the project, or subsidize the rents for the tenants?
I don't know much anything about this type of loan. I came across a property in upstate NY that had this attached to it but there were way to many moving parts for me at the time. Any how it's a federal loan program for rural areas and very low income individuals which could be seniors that do not have much in the way of savings. Take a look and see if it will work in your instance. I'm sure there are a lot of hoops to jump through but rates should be favorable and owner occupancy is not required.
Saint Paul, MN · Member since 2016 · 20 posts · 5 votes
10y
Hi Nick,
I am Social Worker by training and work with Seniors and adults with disability in a subsidized housing setting. Have extensive knowledge housing services for seniors. Feel free to connect with me!
Salisbury, MD · Member since 2014 · 3 posts · 7 votes
10y
Nick, i am a LIHTC developer that focuses on new construction and acquisition of deals in rural areas. USDA Rural Development, Sec 515 direct loan, with Sec 521 rental assistance and an allocation of LIHTC is the only way to serve this population. I do not recommend a deal smaller than 24 and, more importantly, i do not recommend doing this type of deal for your first deal without teaming with an experienced developer. What is most strange, if this is actually such a need, is that no other experienced LIHTC developers are pursuing the market area. Lastly, you might look into wholesaling the right piece of entitled land to a LIHTC developer. Visit the website for the housing finance agency and see who is ranked for allocations of LIHTC year after year. Most rural developers focus on rural, so look for the ones that have rural projects. Feel free to reach out to me if you want to chat more.
Nick, i am a LIHTC developer that focuses on new construction and acquisition of deals in rural areas. USDA Rural Development, Sec 515 direct loan, with Sec 521 rental assistance and an allocation of LIHTC is the only way to serve this population. I do not recommend a deal smaller than 24 and, more importantly, i do not recommend doing this type of deal for your first deal without teaming with an experienced developer. What is most strange, if this is actually such a need, is that no other experienced LIHTC developers are pursuing the market area. Lastly, you might look into wholesaling the right piece of entitled land to a LIHTC developer. Visit the website for the housing finance agency and see who is ranked for allocations of LIHTC year after year. Most rural developers focus on rural, so look for the ones that have rural projects. Feel free to reach out to me if you want to chat more.
Nick, per @Tom Ayd's suggestion you can check out our site and click under "Available LIHTCs" for the state of Minnesota. On there you will find the developers that have been awarded credits in the state.
I also agree with his other comments regarding size/experience. It's not likely to be an option for this particular project, but there may be some smaller community grant programs that can help you get it off the ground.