I'm attempting to educate myself on what's possible regarding developing a new low income senior multifamily property (not assisted living, memory care, etc.). The industry seems incestuous as there are housing agencies that administer voucher programs for counties that actually own properties in those counties. There are also non profits that partner with for profits to access grants and tax credits that seem to be circumventing the regulations but seem to be doing so in plain sight. Reading HUD guidelines and USDA guidelines provides some help but introduces more questions than it provides answers.
Being in a sparsely populated Western state I do not believe low income tax credits represent a tool that can be used due to the fact that there are so few credits available for so many projects competing for them.
A USDA direct loan (at least for one property I'm looking at in a "rural" area) seems like it could be a great tool but I've yet to determine with certainty if the funds available for these loans are limited and therefore distributed via a competitive application process. If so, how in the world can a new entrant in the space expect to ever get such a loan when the local program administrators are also seeking them? Based on what I've read it seems that the great advantage of a USDA direct loan would be a full 30 year term rather than a 30 year am with a 5 or 10 year term. With today's rates being historically low locking in financing for 30 years could be a huge benefit. If someone knows I'm wrong in understanding this please advise. The USDA loan guarantee program would seem to be of only marginal benefit (if you believe I need to rethink this please advise).
The HUD Section 202 funding would seem to be unavailable as I'm intending to do this as a for profit endeavor. However, as I mentioned in the opening, I'm consistently seeing for profit/non profit collaboration and assuming it may be to access this funding. I have no desire to skirt the system but if this is a legitimate way to pursue this I'm open to investigating it.
I have many other questions but simply wanted to post enough for those that know they can be of help to understand were I'm at in my investigation of this opportunity.
Assuming I had a plan in place to actually develop the property I'm believing that I would have a waiting list of tenants as frankly there seem to be very few options for low income seniors with or without vouchers. I believe that we will continue to see demand exceed supply for affordable housing for seniors and what is available will often be old, tired buildings. If I can find a way to make it financially viable I would like to be able to provide decent, affordable housing for a demographic that is increasing daily--low income seniors.
Anyone with any experience in developing similar projects, financing, navigating the regulatory environment, etc. I would greatly appreciate your insight.
Jeremy, PM me and I can give you a lot of insight on both the USDA Program,HUD programs, and LIHTC. One of the first things you need to set is if you are going to operate in the restricted environment or if you are simply looking to market to seniors. That will have a lot to do with which programs will work best in your area and for your situation.
I am interested in the same information that the original poster @jeremyshellman mentions. Looking specifically for Northern California; non assisted; non-medical care etc. Simple senior apartment living
Hi, I'm interested in senior housing as well, I'm a Physical Therapist and looking to expand my business. I'm in Central IL and would like to educate myself on senior housing.