Every day, approximately 10,000 baby boomers cross the threshold to 65. Over 17 million seniors live at or below 200% of the federal poverty level. With housing prices soaring nationwide, there is a pressing need for more affordable options for seniors. Worse, the available options aren’t always safe and well-maintained.
In the New York City borough of the Bronx, six buildings with collectively 952 apartments have been languishing for decades. The elevators, doors and heating systems all need upgrading. That creates ongoing challenges for the 1,700 tenants — almost half of whom are senior citizens.
Now, Beacon Communities is transforming the buildings through New York City Housing Authority’s Permanent Affordability Commitment Together (PACT) program. PACT uses the federal Rental Assistance Demonstration (RAD) policy to leverage public and private funding to address the backlog in public housing capital needs. Through RAD, the units convert to permanently affordable Section 8 housing; residents pay no more than 30% of their adjusted income towards rent.
The renovation will be extensive and will meet New York City sustainability standards. “We’re tightening the building envelopes — replacing the roofs, the windows and a significant portion of the façade — as well as adding condensing boilers and low-flow water systems,” explains Jennifer Steinberg, Vice President of Development Finance at Beacon Communities. Inside each apartment, tenants will get new floors, new bathrooms, new stainless-steel kitchens and electric readiness to prepare for a future transition to electric stoves. “That is a huge benefit, both lowering utility usage and improving indoor air quality,” says Steinberg. She adds, “You always have to be especially careful with health concerns for senior residents. We are mindful of that in terms of tenant engagement as well as rehabilitation.” New community spaces will include gardens, outdoor seating and other areas for socialization.
The renovations will occur with the existing tenants in place. “They will be asked to leave their apartments from 9:00 AM to 4:00 PM,” says Diana DiPreta, Senior Vice President of Development Finance at Beacon Communities, “but we are providing hospitality suites with snacks and internet and television.” Once the work is complete, enhanced on-site social services will provide case management assistance and financial literacy workshops.
The soft costs prior to the major renovation will be funded with a $12.7 million predevelopment loan from BlueHub Loan Fund. DiPreta notes, “Predevelopment loans are usually high risk. But because BlueHub is so mission driven, they are exceptional when it comes to being flexible and providing remarkably competitive terms for unique products. BlueHub is a real partner in these deals.”
