All Forum Posts by: Fabiola F.

I've been considering CoreVest for multifamily financing and exploring their loan products. I'm interested in feedback and any personal experiences from anyone who's financed with CoreVest.

Hey @Justin R. I ended up not needing CPACE and had other more favorable financing. I did find that the senior debt position came up often and that it depends on the lender. The challenge with CPACE is the debt burden it places on your taxes but in the event that financing is challenging, it's probably a better and cheaper alternative than hard money. Talk to your lender about how they treat CPACE. 

@Travis M. Thanks & just sent you a DM.

I have the hardest time finding good, quality contractors in Jacksonville and have work that a previous contractor did poorly that now needs to be redone. 

More specifically, I have ceramic floor tiles that were installed Summer 2019 that is now cracking badly and chipping. I'm seeking a reputable tile installer as well as a contractor for drywall work and other light handy work.

I would appreciate recommendations especially if you have personal experience with their quality of work. Thanks in advance!

@Steve Morris Average ALF blended rates are $4000-6000 and my model has a large portion of that subsidized with Medicaid & Section 8 plus other benefits, pensions & insurance. My operating partner manages these same affordable ALFs for public housing authorities using a combination of these providers. 

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.

I'm redeveloping a distressed 138-unit building into assisted living and exploring PACE financing as part of the capital stack. I'm already initiating the process with a PACE providing and awaiting a term sheet. I'm aware of the pros, but what are some of the bigger issues to beware of?

There's a lot of stories about borrowers not receiving full disclosure of the fees and repayment terms, and most of what I've read has been from residential borrowers. What are some concerns to be aware of for commercial properties?

I'm aware that PACE is senior to other debt and the lender must approve of this position. I'm also aware that the tax assessments are attached with the building and transferred from owner to owner, which could also limit the buyer pool. I'm told that PACE loans are not available on the secondary market, which seems like it could be an issue in the event of a refinance or for the next buyer.

What are some key red flags? Have you used PACE?

I anticipated licensing my 5 bedroom home as an assisted living facility in Florida. It met the distance requirements (no similar facility within 1000ft). However, I was discouraged by the requirement to install sprinklers especially since it's a historic home built in 1925 and I completed extensive renovations just 1 year ago.

Is this sprinkler requirement a dead end or are there alternatives that would allow me to still pursue licensing?

I anticipated licensing my 5 bedroom home as an assisted living facility in Florida. It met the distance requirements (no similar facility within 1000ft). However, I was discouraged by the requirement to install sprinklers especially since it's a historic home built in 1925 and I completed extensive renovations just 1 year ago.

Is this sprinkler requirement a dead end or are their alternatives that would allow me to still pursue licensing?

I'm redeveloping a distressed 138-unit building into assisted living and exploring PACE financing as part of the capital stack. I'm already initiating the process with a PACE providing and awaiting a term sheet. I'm aware of the pros, but what are some of the bigger issues to beware of?

There's a lot of stories about borrowers not receiving full disclosure of the fees and repayment terms, and most of what I've read has been from residential borrowers. What are some concerns to be aware of for commercial properties?

I'm aware that PACE is senior to other debt and the lender must approve of this position. I'm also aware that the tax assessments are attached with the building and transferred from owner to owner, which could also limit the buyer pool. I'm told that PACE loans are not available on the secondary market, which seems like it could be an issue in the event of a refinance or for the next buyer.

What are some key red flags? Have you used PACE?