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MarketFront’s Senior Housing

Posted by beacon on Fri, Oct 2, 2015 at 2:54 PM
Senior Housing, Sustainable Buildings, Urban/Mixed Use, Washington

Many people think of the Pike Place Market only as a wonderful place to shop locally or as a tourist destination. While these attributes are certainly core to its identity, the iconic Seattle institution, governed by the Pike Place Market Public Development Authority (PPMPDA), is also a developer and manager of rental housing at the Market, most of which is reserved for low-income seniors in the Seattle community.

MarketFront OLW 300dpi

Western facade of MarketFront (housing on right)

In May the PPMPDA broke ground on their latest $73 million redevelopment project called MarketFront. The Market-centric project will convert a .75-acre surface parking lot on Western Avenue into a dynamic public plaza with fantastic views of Puget Sound and Olympic Mountains, table space for farmers, craftspeople and artisan purveyors, commercial space, low-income housing, a neighborhood center, and 300 public parking spaces. The 40 low-income housing apartments in this project will serve seniors making up to 30% and 50% of Seattle’s area median income, or $18,840 and $31,400 respectively.

Housing  Social Service with parking P 11.07.14

Western Avenue Senior Housing – Image credit Miller Hull Partnership

Beacon is privileged to serve as a consultant to the PPMPDAon the $9 million low-income housing portion of MarketFront. Beacon has assisted the PPMPDA in assembling financing for this exciting project including securing an award from the City of Seattle Housing Levy, and is currently working with them to identify a Low-Income Housing Tax Credit investor for the project. Working with the Miller Hull Partnership throughout design development, we have provided feedback on the design of the senior apartments based on our deep experience with this type of housing. Once in construction, Beacon’s Construction Manager will attend weekly construction meetings to ensure adherence to the Evergreen Sustainable Development Standard criteria and to monitor overall construction progress.

091420150184

Aerial photo of MarkeFront site work – Sept. 2015

As of this month, mass excavation on the MarketFront project is nearly complete. Construction on the senior housing is slated to start in April 2016 and wrap-up by the end of the year, with the entire project coming online in 2017. Sign up for detailed construction updates on Sellen Construction’s project website and consider donating to the MarketFront’s Pike Up! capital campaign, to ensure the long term success of this wonderful project.

During a time of unprecedented lack of affordable housing in Seattle, it is bold new projects like MarketFront that will continue to ensure a sustainable lifestyle without a car for downtown residents, and a City that is affordable to everyone.


Crafting Unique Solutions to Affordable Housing Preservation

Posted by beacon on Fri, Aug 28, 2015 at 5:18 PM
Acquisition/Rehab, Family Housing, Occupied Rehabs, Senior Housing, Washington

Beacon has a long track record of working with clients to create more affordable housing, both in new construction and in the repositioning of older assets, thereby extending a building’s affordability and useful life. There are typically a host of financial tools available to do this in WA State – from Low-Income Housing Tax Credits (LIHTCs) to State and local dollars such as the Seattle Housing Levy. But over the last several years many of these, especially at the State level, have been under constant threat.

Yet the need for affordable housing keeps growing. As a result, Beacon has worked hard on behalf of clients to turn over every rock for new funding. Two recent examples of projects that utilized groundbreaking “first of its kind” financing in Washington State are Yakima Family Housing in Yakima and Hilltop House in Seattle.

Yakima Family Housing with the Yakima Housing Authority (YHA) was completed in late 2014 and was the one of the first HUD Rental Assistance Demonstration (RAD)-funded projects in WA State. Beacon and YHA worked together to secure the award from HUD and then packaged it with 9% LIHTCs to refinance and renovate 150 units of scattered-site public housing across the City of Yakima. Beacon also served as construction manager, working with YHA to oversee the complex process of tenant relocation and renovation, while ensuring minimal disruption to families and maintaining the tight timeline for LIHTC delivery. Partners on this project include Raymond James, Walker Construction Co., and ZBA Architecture. Kantor, Taylor, Nelson, Evatt & Decina PC provided legal services.

Hilltop House Apts., Hilltop House Inc.

Hilltop House Apts., Hilltop House, Inc.

In May of this year Beacon also started construction on Hilltop House Apartments in the First Hill neighborhood of Seattle. On behalf of this 124-unit non-profit-owned senior project, Beacon secured one of only twelve HUD SPRAC (Senior Preservation Rental Assistance Contract) awards in the United States. Working with CBRE Group, Inc. through its FHA lending program, this unique financing was leveraged to retire existing HUD 202 and Flexible Subsidy loans so that a new permanent FHA 221(d)(4) loan could be used to extensively rehabilitate the property and prevent displacement of low-income seniors. In addition to CBRE, partners on this project include SMR Architects and Walsh Construction Company. Kantor, Taylor, Nelson, Evatt & Decina PC provided legal services.

According to Muriel Cashdollar, Board President of Hilltop House, “Beacon Development has worked tirelessly to help Hilltop House refinance our HUD mortgage, find an architect and a contractor, and manage the entire process.  We could not have accomplished our goals without their significant help.  Beacon’s experience has made our current construction possible!”

Together these projects represent nearly 275 affordable homes that would not have been preserved without these unique and creative approaches to affordable housing development. Together with our clients, Beacon strives to always secure the right financing for the needs of your project and your tenants.

 


Occupied Rehabs Done Right

Posted by beacon on Tue, Oct 14, 2014 at 5:05 PM
Acquisition/Rehab, Construction, Occupied Rehabs, Senior Housing, Special Needs

Beacon works on various different affordable housing project types with clients. In recent years, we have worked on many occupied rehabilitation projects, preserving important assets for owners, residents and communities across Washington State.

An occupied rehab is typically an older building that undergoes a renovation while residents are still living there. This often involves upgrades to critical life and safety systems such as fire alarms, heating and venting systems and “aging in place” features such as grab bars in showers and bathrooms, and enhanced ADA access to units and common areas. While doing work on the building, occupants are sometimes relocated for short or long periods of time, to allow for construction in their apartments to take place.  At Beacon we pride ourselves on crafting a construction approach to occupied rehabs that is sensitive to resident needs in order to minimize disruption to the daily lives of tenants.

Over the past 10 years, Beacon has completed a dozen occupied rehab projects with clients throughout the State of Washington. We have found that our team approach to projects works well on the complexities of this type of development, with project and construction managers working together to coordinate details with owners and residents. Beacon also leverages the deep knowledge of our construction managers, Jason Manges and Matthew Flickinger, who combined have over 30 years of experience overseeing construction throughout the region.

In order to execute an occupied rehab project, we have found that there are important steps that must be taken into account to ensure success and deliver a project that is high quality and under budget.

  • Conduct a pre-mortem. This is where everyone involved in the project, from project managers to property management, gathers together in a room and lists all the possibilities that may arise during construction, especially any risks related to scope of improvements or hazardous materials.
  • Commission a hazardous materials assessment report. This is when the building is analyzed for hazardous materials such as lead, asbestos or mold that may be harmful during the construction process. In Washington State subcontractors cannot legally perform work on older buildings without this kind of assessment and since remediation of these materials is expensive, we have found it is worth investing in this kind of report up front.
  • Perform deconstructive testing. Since it is often impossible to enter every apartment and look behind every wall before work begins, we have found that it is worth deeply investigating conditions in a limited number of units in order to develop a realistic scope and budget for work throughout the building. This requires a high level of coordination with property management and tenants.
  • Develop a realistic schedule. It is often worth consulting with a general contractor early to develop a realistic schedule for how long improvement within apartments will take. This should take into account a certain amount of “slush” time for unforeseen conditions in each unit.

  • Let your schedule inform your resident relocation plan. Work early and often with property management, and a relocation specialist if necessary, to craft a plan that is both sensible and sensitive to tenant needs. Publicly funded occupied rehabs in Washington often involve senior and special needs residents, and particular care should be paid to minimize disruption to these households if possible.
  • Develop a comprehensive pest management plan. Nobody likes to talk about bedbugs, but it is now a reality in many types of housing in Washington State. As a result, coordination with property management staff must take place to eradicate bedbugs at several junctures during an occupied rehab. Beacon recommends treatment of the building prior to the commencement of work and then again after completion. In addition, treatment of resident belongings may be necessary as part of the relocation process to avoid re-contamination after completion. Bring on a pest control company early to help craft this plan.

    Entrance After

    ABHOW’s Three Rivers Village Entrance – After

  • Know your roles. Within a Beacon occupied rehab development process, the “main players” involved are the architect, the general contractor, the owner, and Beacon. The architect is responsible for documenting and communicating the design effort. The general contractor is responsible for staffing the job, bidding unit prices and maintaining the schedule. The owner is responsible for reaching out to the residents, coordinating the relocation efforts and high level project decisions. Lastly, working with the owner, Beacon is typically responsible for assembling the financing for the project and ensuring effective and efficient team work throughout that will deliver a high quality building that is on schedule and under budget!

Despite their challenges, occupied rehabs often can be the most satisfying kind of development due to the stark changes in the “before” and “after” conditions of a building. At Beacon we work with clients and project teams to deliver beautifully transformed buildings for low-income residents. It is very exciting to see how happy residents can be with improved living conditions once a project is done.

 


Three Rivers Village Grand Re-Opening Celebration

Posted by beacon on Tue, Aug 26, 2014 at 4:03 PM
Acquisition/Rehab, Project Openings, Senior Housing, Sustainable Buildings, Washington

Beacon is excited to announce the grand re-opening of Three Rivers Village, located in Richland, WA. Three Rivers is an affordable housing community owned by American Baptist Homes of the West (ABHOW) and developed with Beacon for seniors and the disabled earning up to 30%, 40%, and 50% of area median income.

ABHOW purchased Three Rivers in 2010 when the previous owners wanted to exit their HUD program, thus preventing a conversion to market rate and displacement of senior and disabled residents. The renovation included the modernization of apartment kitchens and bathrooms, the common area dining room and significant site upgrades. A new expanded manager’s office and meeting room, administration work offices, a wellness room and reconfigured entries were added as new construction. The building remained occupied during the renovation so rigorous steps were taken to lessen the impact on residents, many of whom were frail and elderly. The building entered into a 20-year HUD Section 8 Housing Assistance Payment Contract extension as part of the acquisition by ABHOW.   Capital funding was provided by the National Equity Fund, which purchased Low-Income Housing Tax Credits awarded by the Washington State Housing Finance Commission.  Acquisition funding and long term debt was provided by Washington Community Reinvestment Association.

With ZBA Architecture as the architect and Walker Construction, Inc. as the GC on this project, Three Rivers Village was completed this spring.  The grand re-opening ceremony took place on site in June and was attended by residents, community leaders, funders and members of the development team. Many people gathered to view and honor the success of the development and the preservation of such an important community asset for the City of Richland. Since many of the seniors at Three Rivers Village love birds, Beacon welcomed guests back into their newly renovated apartments by donating birdhouses and bird-feeders to the property so residents can relax and watch the birds in their newly improved exterior gathering spaces.


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