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2013 Missouri Housing Summit

2013 Missouri Housing Summit. Spotlight on Veterans and Special Needs Housing. Missouri LIHTC Program. 2011 Special Needs Housing Priority. St. Louis Veterans Housing. Developer: The Salvation Army, an Illinois Corp. General Partner: The Salvation Army Services Inc.

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2013 Missouri Housing Summit

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  1. 2013 Missouri Housing Summit Spotlight on Veterans and Special Needs Housing

  2. Missouri LIHTC Program • 2011 Special Needs Housing Priority

  3. St. Louis Veterans Housing • Developer: The Salvation Army, an Illinois Corp. • General Partner: The Salvation Army Services Inc. • Development Consultant: Hill, Devine & Gong (CA) • Architect: Trivers Associates (STL) • Attorney: PolsinelliShughart (STL) • Accountant: Sabino & Associates (STL) • Contractor: Paric (STL) • Manager: McCormack Baron Ragan • Equity Investor (Federal) : St. Louis Equity Fund and First National Bank of St. Louis • Equity Investor (State): Sugar Creek Investment and First National Bank of St. Louis

  4. St. Louis Site Information • Vacant city block • Owned by TSA, IL Corp • No unusual site conditions • No environmental issues • Zoned multi-/single family residential • Neighboring commercial properties • NIMBY/NIMPF – “Not in my pedestrian flow” • Veterans, but not low-income • “People sleeping on the floor” • “Persons with mental illness”

  5. St. Louis Veterans ProjectDevelopment Plan • New Construction began November 2011 • 2 buildings – • legally and physically • transitional and permanent housing • 49 units • 5 studio floor plans (2 ADA) – 411-437 sq. ft. - $410 rent range • 43 1 BR floor plans (3 ADA) – 430-450 sq. ft. - $450-560 range • 1 2BR resident manager unit (ADA) - 656 sq. ft. • 21,387 sq. ft. residential living area • 38,062 sq. ft. total area • Social services and staff offices, multiple size meeting rooms, computer and study room, lounges, etc. • Completed October 2012

  6. Apartment Spaces Transitional Housing One Bedroom Furnished Unit

  7. Development Sources & Uses • Development Revenue Sources • MHDC Permanent (HOME) $600,000 • Total LIHTC Equity $7,475,356 • $815,000 Federal LIHTC Credit • $250,000 State LIHTC Credit • Federal Home Loan Bank AHP $480,000 • The Salvation Army $404,181 • General Partner Equity $1,000 • Total Revenue $8,960,537

  8. Development Sources & Uses • Construction Period Funding • The Salvation Army Construction Loan $6,637,103 • MHDC Construction Loan $600,000 • Tax Credit Equity Paid During Construction $747,534 • Dev Fee Paid After Construction Completion $685,000 • Operating Reserve (escrow) $200,000 • Replacement Reserve (escrow) $29,400 • Lease-up Reserve $61,500 • Total Costs $8,960,537

  9. Development Sources & Uses • Total Construction Costs $6,246,090 • Architect and Engineering $435,000 • Construction Interest $199,347 • Contingency $346,000 • Furniture and Fixtures $150,000 • Acquisition Costs $86,750 • Developer Fee $685,000 • Consultant Fee $210,000 • Operating Reserve $200,000 • Replacement Reserve $29,400 • Social Service/Emergency Reserve $87,000 • Other Development Costs $285,950 • Total Development Costs $8,960,537

  10. St. Louis Veterans Residence Larger Meeting Room Computer Room

  11. Units Type and Funding Breakdown • 24 transitional housing • Dept. of Veterans Affairs Grant & Per Diem (GPD) • 24 permanent housing • 18 Veterans Affairs Supportive Housing (VASH) project based • 6 Project-Based Section Eight (PBV) • 1 resident manager unit

  12. Veterans Housing GPD Experience • Life Safety Standards–Board & Care/New Apartments • Veterans Retraining Assistance Program(VRAP) & IRS • Federal job training program provides 1 year training aid to unemployed Veterans in community or technical college • Internal Revenue Code excludes full-time students from LIHTC w exception for f/t student in job training receiving aid under JTPA or other similar federal program • VRAP appears to meet f/t student exception but no IRS guidance, need private letter ruling for reliable answer • Lease-up threat & counterproductive goal

  13. VASH Experience • Housing First Approach • Applicants identified by VA difficult to find during lease-up • Lowered intake standards on credit and prior offenses • Security deposits unpaid or waived • Tenants occupy without furniture – TSA provided some • Case Management • Residents engaged in substance abuse and have not voluntarily entered treatment • VASH case managers absent from facility /other case loads • TSA initiated weekly meeting with VA and e-mail reports • VASH residents failing to pay rent & now facing eviction

  14. Apartment Floor Common Areas Outside Smoking Decks Inside Socializing Lounges

  15. Veterans Housing Experience • Differing perspectives between TSA & VA on tenant leasing • Client v. tenant orientation • VA not understanding management time frames – lease up • Differing perspectives between GPD residents practicing recovery and VASH residents actively using

  16. VETERANS RESIDENCE

  17. Gary Busiek, MSW • (314) 646-3011 • gary_busiek@usc.salvationarmy.org

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