| Name | Terry |
|---|---|
| Last Name | Woods |
| Home Address | 7807 Shinnecock Trail Chattanooga, TN 37421 United States |
| Organization Name | Greater Tucker Community Development Corporation |
| Describe Your Role In The Organization | In December 2021, the Greater Tucker Community Development Corporation (GT CDC) selected Pennrose as a partner to help develop an affordable, senior independent living community on a vacant parcel within the Woodmore neighborhood in Brainerd. With Pennrose as the lead co-developer and co-owner of this planned community, GT CDC will serve as the co-developer and co-owner. Additionally, GT CDC will also participate as the ground lessor, ensuring that the potential senior project’s land parcel will continue to be used for the perpetual purpose of providing critically needed affordable housing opportunities. GTMBC CDC was created to help provide educational services, childhood development, affordable housing, medical, nutritional and health opportunities to the elderly and financially disadvantaged in Chattanooga, Hamilton County, Tennessee and surrounding communities. Membership of the CDC includes the Pastor and membership at-large of the Greater Tucker Missionary Baptist Church, Inc. of Chattanooga, Tennessee. Pennrose is a developer with a rich history of bringing about neighborhood and community transformation. As one of the nation’s leading affordable and mixed-income housing developers, Pennrose typically closes on financing for over 20 new developments per year. The Development company make strong commitments to the communities that it works in, working as a true partner in transforming underutilized sites into critical drivers of economic development. Pennrose’s vision is uniquely long-term; Pennrose typically builds, leases, and operates its buildings rather than selling them, making us heavily invested in a neighborhood’s sustainability, quality of life, and economic opportunity not just now, but for decades to come. |
| Organization Address | 1115 North Moore Road Chattanooga, TN 37411 United States |
| Website | |
| Best Phone Number To Reach You | (423) 400-3813 |
| Alternate Phone Number | (404) 759-1733 |
| Email Address | trwoods80@att.net |
| Alternate Email Address | bthomas@pennrose.com |
| Please Describe Your Project In Detail | Like most cities that have experienced economic growth within the last several years, Chattanooga is contending with a sharp increase in the cost of housing. The current public health crisis has only accelerated this trend, leading to greater housing instability as many households are now paying more than 30% of their income on housing (“housing cost burdened”). This presents challenges for a wide range of citizens, but none has been more negatively impacted than those on fixed incomes, such as seniors. In an effort to help address rising housing instability among seniors and increase the supply of quality, long-term affordable housing, GTCDC along with its co-development partner, Pennrose, are developing a new construction, senior affordable housing community in the Woodmoore neighborhood in Brainerd The approximately 80-unit property will be built on a vacant parcel adjacent to the Greater Tucker Missionary Baptist Church. The project will be designed and operated as an independently living community for seniors, ages 55 and over, with incomes at or below 60% Area Median Income (residents with incomes at or below $30,000). The senior living community will involve a mixed, multi-sector approach to project financing, with an anticipated funding structure to include an allocation of 9% Low Income Housing Tax Credits (private investor funding), conventional debt financing as well as public sector grant funding. The proposed design and development strategy will focus on creating an energy efficient, independent living, senior community that allows seniors to age and thrive in place. The building design will focus on creating an attractive façade and roofline that will focus on blending into the existing neighborhood aesthetics. This community will feature several senior-specific amenities to encourage physical activity, resident socialization and overall healthy lifestyles for seniors. Amenities will include, but are not limited to, energy efficient appliances and broadband access in all residential units, computer learning center, community room and a dedicated laundry room on each floor. In addition to the senior community’ onsite amenities, senior residents will also benefit from connectivity to nearby community amenities, including the Greater Tucker Missionary Baptist Church, the Brainerd Community Center as well as the local Salvation Army Corps Center. The site is also in close proximity to the vast array of food and retail shopping amenities along Brainerd Road, including the Eastgate Senior Activity Center. To help bring this critically needed Project to fruition, we are respectfully requesting $3,000,000 of American Rescue Plan funds to support hard cost construction costs. The significant escalation in construction materials and labor costs during the public health emergency has negatively impacted the financial feasibility of new construction projects. This trend has caused many affordable housing projects, which often need several layers of financing in their capital stack, to either delay construction commencement, or worse, no longer be financially possible. The American Rescue Plan funds are an essential component of this Project, providing the gap financing needed to help bring more sustainable, long-term affordable housing opportunities for Chattanooga senior residents. |
| Please explain how your project meets the requirements of the American Rescue Plan | This proposed new construction, senior affordable housing community aims to meet two critical goals of the American Rescue Plan: A) Addressing housing instability and affordability among Chattanooga’s seniors with low incomes by increasing the supply of long-term, high-quality affordable housing; and B) Bridging the digital divide underserved persons by providing broadband services within every residential unit along with a computer learning center that offers free broadband services to residents A) Address housing insecurity among Chattanooga’s seniors with low incomes by increasing the supply of long-term, high-quality affordable housing • Housing insecurity, which includes poor housing quality, overcrowding and lack of affordability, is an increasingly common problem among older adults. • The negative impact of COVID-19 on the housing rental market has only exacerbated this growing problem, causing many seniors, many of whom are on fixed incomes, to become severely cost burdened in the face of rising monthly rents (paying more than 30% of household income for housing). This often means that seniors, often have to choose between housing and their basic necessities (e.g., medical and food). • This project directly addresses the increasing demand for new affordable housing by building new construction housing that is both affordable to seniors with incomes at or below 60% AMI (incomes at or below $30,000) and specifically designed for seniors to age in place (e.g., grab bars in bathrooms, universal design concepts to allow for seniors to age in place). B) Increasing access to high-quality broadband internet services and help bridge the digital divide among underserved communities • COVID-19 has accelerated our reliance on digital tools and services, from online learning classes to essential telehealth services. Residents, especially those with low incomes, may be left behind without readily available access to quality, high speed service opportunities. • The development will include a computer learning center with free access to updated computer systems equipped with high-speed interest services and multi-function printers. In addition, all resident units within the Project will be pre-wired for broadband internet services. |
| Where would your project take place? | Woodmoore neighborhood in Brainerd |
| How much will your project cost in total? | 17900000 |
| Do you have any matching funding sources from other local governments, private entities, non-profits, or philanthropic entities for your project? | Yes |
| Please describe the source and list amounts of any other funding. | The following financing is anticipated for this Project: • Low Income Housing Tax Credit Equity (to be submitted in the upcoming 2022 9% LIHTC Round Administered by the Tennessee Housing Development Agency): $11,700,000 •Conventional Bank Financing (First Mortgage Debt): $2,800,000 •Deferred Developer Fee: $400,000 |
| What portion of the project are you asking the city to fund? | We are respectfully requesting ($3,000,000) to help fund a portion of the new construction hard costs for this Project. |
| If funded, when would your project start? | November 1, 2023 |
| How long would your project take to complete? | 1/31/2025 |
| What milestones would you use to measure your project’s progress? | The following milestones would be used to measure our Project's progress: Goal #1: Address housing insecurity among Chattanooga’s seniors with low incomes by increasing the supply of long-term, high-quality affordable housing • Goal Start Year: 2023, Goal End Year: 2025 • Outcome: Approximately 80 new construction, senior affordable housing units for residents with incomes at or below 60% AMI (less than $30,000 a year annually). • Measurement: Number of new construction units that are available and affordable to residents with low incomes at or below $30,000 (> 60% AMI) • Goal #2: Help bridge the digital divide among seniors with low incomes by providing an on-site computer learning center with free access to broadband services • Goal Start Year: 2023 Goal End Year: 2025 • Outcome: Increased access to broadband services by senior residents with incomes at or below 60% AMI (less than $30,000 a year annually). Approximately 80 new construction units will be created that are pre-wired for broadband internet services. • Measurement: Onsite Computer Learning Center with access to high speed (i.e., capability to transmit at a rate of not less than 25 megabits per second in the downstream direction and at least 3 megabits per second in the upstream direction to end uses). |
| How would you ensure accountability and transparency throughout the project lifecycle? | Pennrose is a developer with a rich history of bringing about neighborhood and community transformation. The Company began as an urban developer in Philadelphia nearly 45-years ago, working in collaboration with neighborhoods tackling the challenging problems of urban and suburban communities with people striving to improve their environment and craft communities where their families could thrive. Pennrose quickly learned that these challenges and desires were born out of the universal desire for human flourishing and that the skills we had developed in urban Philadelphia could be used to help communities throughout our country. Since those early days, Pennrose has grown to a national developer with a depth and breadth of experience in urban development and revitalization which makes us unique on the national stage. During this time, Pennrose has developed more than 17,200 rental housing units, representing over $3 billion in total development costs financed through a variety of public and private sources. The Company’s portfolio includes more than 265 distinct developments in 16 states plus the District of Columbia, and the U.S. Virgin Islands. • Monitor strategy implementation and achievement of objectives: Pennrose will follow strict Tennessee Housing Development Agency (THDA), IRS Section 42, City of Chattanooga and HUD guidelines to implement the strategy detailed above of replacing the existing public housing • Manage and monitor any subaward(s): the entire award will be used towards the project detailed above. Kathi Garrone, Vice President of Compliance with Pennrose, will lead the requiring compliance and reporting guidelines as required for the City of Chattanooga’s American Rescue Plan funds. • Govern changes or modifications to the strategy: Pennrose will seek approval from THDA, the project’s lenders and investor, the City of Chattanooga and HUD prior to implementing any changes to the strategy detailed above. Pennrose is adaptable and, as evidenced by prior project completions, is able to govern changes or modifications to project strategy should they arise. • Ensure project and fiscal accountability: Pennrose will follow strict THDA, IRS Section 42, City of Chattanooga and HUD guidelines concerning project and fiscal accountability including: monthly draw requests detailing exact dollars spent and what those dollars will pay for, as well a cost certification performed by a third-party accountant at project completion to certify project costs are true and accurate. • Collect, collate, and submit timely performance data: Pennrose will follow strict Georgia DCA, IRS Section 42, City of Chattanooga and HUD guidelines concerning ongoing project reporting requirements and outcome tracking. |
| If successful, how would your project benefit the community? | Many “mom and pop” landlords who have owned single-family homes, duplexes and small apartment complexes with decades of deferred maintenance commonly rent to tenants who remain in their properties for many years. However, the current surge in real estate prices has led owners to sell their properties. New owners are making substantial improvements to these properties, with the cost of acquisition and capital improvements often being passed on to the tenants in the form of sharp rent increases. These new rents are often double or triple what legacy tenants have been paying, causing many residents to have to search for more affordable options with as little as 30-day notice. This current trend has been especially harmful for senior citizens. Older adult renters are more likely to pay a large portion of their incomes for rent than the population as a whole, and this extreme rental cost burden (e.g., paying more than 30% of income on housing) places them at increased risk of housing instability and homelessness. Our new development could be a safe haven for those senior residents that are at risk of homelessness and housing instability due to their income level. The approximately senior affordable community will help address the critical need to increase the supply truly affordable, sustainable housing for Chattanooga seniors. This will also help ensure that seniors with low incomes have access to high quality broadband services, an increasingly important tool for seniors to stay connected to each other and to the goods, services and support systems that they need to stay healthy and thrive. |
| How will you attract community buy-in for your project? | Community engagement is an important component of communicating the collective vision of both the Greater Tucker Missionary Baptist Church and the Greater Tucker Community Development Corporation to build critically needed senior affordable housing. As part of this engagement process, the Greater Tucker Community Development Corporation along with Pennrose kicked off our community engagement on January 27, 2022 to introduce the potential senor affordable housing project and to receive feedback from the surrounding community about our initial strategy. As the Project progresses through the next phases of development, we will continue to have regular and on-going communication with the community to ensure community buy-in. |
| Name | Brian Thomas |
| Contact Information | bthomas@pennrose.com |
| Is there anything else you would like us to know about your project? | We resubmitted this application due to what appeared as an error in electronic submission. The Total Development Costs are currently estimated to be $17,900,000. We believe that this total development cost is a reasonable estimate given the current volatility in the construction market and the sharp increase in construction-related costs due to the current public health crisis. Our Project Team will work diligently with the Project Team to control costs through the design and construction process to build a cost effective building. |