Posted Oct 31, 2019, 6:00 PM
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Join Date: Jan 2010
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Two new senior living facilities adding density
One down in south Phoenix the other right at the north end of Melrose: https://www.bizjournals.com/phoenix/...e-phoenix.html
Quote:
Foundation for Senior Living is planning two more senior housing projects in Phoenix, but experts say it's still not enough to keep up with the growing demand for affordable senior housing.
Plans call for building two communities in Phoenix that will total $25.3 million in development costs, said Tom Egan, president and CEO of FSL, a Catholic charity under the Diocese of Phoenix.
A 78-unit community called Acacia will be built at 615 W. Pierson St., while a 113-unit community called Roeser will be built at 446/454 E. Roeser Road, he said. Each project will cost about $13.3 million to build, he added.
Of its 20 existing senior housing properties statewide, four are in metro Phoenix.
The Arizona Department of Housing estimates there is a need of 165,000 affordable housing units across Arizona.
"We're talking about developing housing for people who make between 40% and 60% of the area median income," Egan said. Monthly rents for the new projects will be somewhere in the $500 to $700 range.
Egan's two new projects will total about 200 units, which doesn't come close to the needs, he said.
"It helps, but we're going to have to come up with another solution," Egan said. "A lot of people have to come together to find a bigger solution to close that gap."
Egan, who will be a panelist addressing affordability for the 11th annual AZ DealMakers event on Jan. 23, said the projects are financed using low income housing tax credits.
"The LIHTC program is a vehicle we have as a state to build affordable housing," Egan said.
These aren't subsidized housing properties, he said, which have very long wait lists before seniors can take advantage of those low cost housing options.
"Right now, we're seeing more seniors in our community getting displaced," Egan said. "If the rent keeps going up and the rent is beyond what they make, oftentimes they aren't in a position to earn more income."
Solterra Senior Living also has taken advantage of the LIHTC program, developing several senior housing communities in metro Phoenix during the past few years, said Greg Corns, director of development and partnerships for Scottsdale-based Solterra Senior Living.
"It makes a great deal of sense for companies looking to buy down their tax rate and at the same time provides a valuable asset to Arizona," Corns said. "From our perspective it provides the aging population the opportunity to live in top-shelf communities, receive care services at an affordable rate."
ans call for converting existing property in Tucson and in the White Mountains to senior housing communities, he said.
These new communities will be based on need, Corns said.
"When you go into a market and see there's a high number of individuals that are Medicaid members and there's not enough beds for these individuals, well maybe there's an opportunity to convert them," he said. "There's not enough inventory for aging seniors that are low income to find housing. If we don't do something in the next five years, we will face a crisis situation."
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Not very big but the rendering of the Melrose one looks to be a good density filler.
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