2014 LIHTC Development that Best Preserves Existing Affordable Rental Housing

Winner

Park Manor Estates

Developer: Schuett Development LLC
Owner: Park Manor Estates II LP
Location: Detroit Lakes, Minn.

2014 Developments of Distinction Winner Preserves Existing Affordable Rental Housing Park Manor Estates

The winner of the 2014 LIHTC Development that Best Preserves Existing Affordable Rental Housing is Schuett Development LLC for developing Park Manor Estates in Detroit Lakes, Minn.

Becky Landon, principal at Landon Group and consultant to the development, says that Park Manor Estates, which was constructed in 1982, was in need of substantial rehabilitation to ensure it could continue to operate efficiently. Landon says Park Manor Estates took an active and meticulous approach in addressing the multiple physical defects of the aging building, including updating all of the kitchens, bathrooms, flooring, windows and mechanical systems.

Park Manor Estates offers 97 affordable rental units to underserved populations, including seniors, people with disabilities, households of color and those experiencing long-term homelessness. Eighty-five units are set aside for seniors and/or the disabled, 12 townhomes are for families and five units have been reserved for those suffering from long-term homelessness. Common areas include a welcoming main lobby with a seating area; a community room with a commercial kitchen; a nursing office; a craft room; lounges on the second and fourth floors; and two laundry facilities. While there is no on-site nursing staff, residents who receive in-home care through a third party are able to meet with their caregivers in the nursing office. These spaces are overseen by property management as part of the overall facility.

Landon says equity from 9 percent low-income housing tax credits (LIHTCs) prevented Park Manor Estates from falling into disrepair, which would have caused the building to lose its Section 8 contract, displacing more than 100 senior residents. Park Manor Estates received LIHTC equity from Affordable Housing Partners and $800,000 in LIHTCs and a $4.3 million mortgage from the Minnesota Housing Finance Agency (MHFA). The total rehabilitation cost for the 87,096-square-foot Park Manor Estates building was $11.7 million, equating to $120,000 per LIHTC unit.

“The preservation of housing for elderly and disabled is critical going forward. There is a general dearth of quality housing options for this populace, thus the maintaining of this community is to be commended,” said Phillip Melton, a 2014 Community Development Awards judge.

Honorable Mention

The Aeolian

Developer: Brownstone Affordable Housing Ltd.
Owner: Aeolian Senior Apartments LP
Location: Vicksburg, Miss.

2014 Developments of Distinction Honorable Mention Preserves Existing Affordable Rental Housing The Aeolian

The honorable mention for the 2014 LIHTC Development that Best Preserves Existing Affordable Rental Housing is Brownstone Affordable Housing Ltd. for developing The Aeolian in Vicksburg, Miss. Brownstone Affordable Housing Ltd. combined low-income housing tax credits (LIHTC) and historic tax credits (HTC) to transform an 86-year-old historic building into affordable senior housing apartments. Ann Vogt, managing director of NDC Corporate Equity Fund LP, which provided LIHTC equity to the development, says the building had been vacant since 1991 and was suffering from disuse and disrepair.

The Aeolian offers 60 affordable rental units and is only steps away from downtown retail space. Vogt says the development plays a critical part in rejuvenating the central business district of Vicksburg by bringing permanent residents into the neighborhood and increasing the foot traffic to surrounding businesses.

“A gorgeous building. This renovation of an 86-year historic landmark hotel on the National Historic Register into senior housing … preserved an historic landmark while creating affordable senior housing for seniors … [I]t has been a catalyst for other development,” said Rochelle Lento, a 2014 Community Development Awards judge.

Return to 2014 Developments of Distinction Award Recipients