Foundation for Senior Living

Stephen L. Hastings

Director of FSL Real Estate Services

FSL Mission Statement

FSL’s mission is to provide home- and community-based services and develop energy-efficient,

affordable housing, to promote health, independence and dignity for all.

Case Studies of Two Rural Senior Multi-family Properties

Highland Square in Cottonwood Arizona

Yuma Senior Terraces in Yuma Arizona

Identify: Community Input/Guidance

• Council

• Neighborhood Leaders

• Reports

• Planning Department

• Building Department

• Realtors

• Neighborhood surrounding site

Identify: Land• Zoning

• Yield

• Proximity

• Transportation

• Senior Center

• Medical

• Shopping

• Fun

• School Bells

Everything flows from the land

• Get to know the site

• Start with the six-sided box

• Start small and work up…build a property, build a program

• Our generation multi family

YST located in the “bottoms”

Market Study

Site Area Detractions

Safety Plans

Need

• Market Study• Blind Flash of the Obvious (BFO)

• Absorption Rate

• Unit matrix by Incomes

FSL Focused on Strategic Investment

Strategic Purchase

What are we looking for in a modern multi-family project?

• Sustainability

• Lower operating costs

• Stable operating costs

• Adaptable to changing energy costs, pricing and opportunities

• Defensive posture

• Plan on 20 and 30 year horizons

Flagstaff Senior Meadows

Identify: Building Design Team

• Architect

• Engineer

• Builder

• Manager

• Green

• Amenities

• $6,500 + $60,000 + $40,000 + $300,000 = $406,500

Identify: Application Design Team

• In-house

• Consultant

• Investor

• $406,500

Vanishing Finance for Affordable Housing

• HUD 202• HUD 811• RD 515• RD with 515 Subsidy• HOME Investment Partnership• CDBG• NSP• HUD Transitional Housing• HUD Project Based Section 8

Funding

• LIHTC (Experience Points)

• HOME/CDBG

• Section 8 (Like) Subsidies

• Grants

• Aging Farm and Home

• Aging Rural Development

Highland Square

Highland Square

Highland Square

Yuma Senior Terraces

Yuma Senior Terraces

Issues to Attend to…

• Construction Loan

• Fair Housing

• Davis Bacon

• Section 3

• Grand Opening

• Perm Loan

Optimistic Development Calendar• November 2018 - Identify Land

• March 2019 - Submit Applications for LIHTC, HOME and FHLB

• June 2019 – Awards announced! Order construction documents, apply for construction loan and finalize Investor documents

• December 2019 – Close sale of LIHTCs to Investor, close construction loan and other grants. Start Construction

• December 2020 – Complete Construction

• April 2021 – Complete Lease-up

• August 2021 – Stabilize revenue/expense, perm mortgage placed

• October 2021 – Cost Certification is Complete

• November 2021 – IRS Form 8609 issued

Create a multi-family ecosystem that can adapt to change in the energy market

• Third party• Community sources

• Storage – Shared storage it introduces choice

• Onsite generation

Advanced Controls

• Multiple units working together in the aggregate to achieve common mission goals

• New generation controls

Advanced Controls

• Next Generation Onboard Diagnostics

• Last generation system wide control systems are migrating into our thermostatic controls

• Owner paid, owner controlled…not paid by the resident

Onboard diagnostic controls – Next generation systems

• Prevents catastrophic failures

• The filter in Unit 12 had reduced air flow

• The compressor on Unit 32 is running hot

• Real time diagnostics and repair extend the life of equipment and comfort of the units

• Confidence that the repair work being done is what is needed

We can do with less

• Saving water – What is one of the most wasteful daily uses of water?• Looped preheated

water systems

• Blue piping and gray water systems

Reduced demand for power production

• LED lighting

• Insulation• Icynene

• ICF walls system

Healthy Homes

• No VOCs and maintain it that way

• In laminates

• Adhesives

• Paint

• YST story

Healthy Homes

• Quiet

• Between floors, between walls

• Spaces

• Walk in closets

• Gathering by floor

Thank you, from FSL Real Estate Services