Regional Report: Southeast

Lifelong resident realizes dream of helping seniors

By Genevieve Rajewski

(Affordable Housing Finance, July 2005) McDonough, Ga. – Dr. Harold Grier passionately wanted to help seniors in his hometown. After a contentious five-year process, his vision is finally being realized, thanks to three nonprofit organizations. Together, they convinced the city to support the development of Grier Senior Manor, McDonough’s first multifamily senior development.

“Dr. Grier is a lifelong resident of the city, and it was his dream to build seniors housing in the area where he grew up,” said Melvin Collins, co-executive director of LowCom Development. “He contacted me, and then I sought the expertise of the PACES Foundation and Rice Family Farms Consortium. We formed a collaborative to put a project together.”

Now, a $5.5 million project is bringing 64 affordable garden-style apartments for seniors to Grier’s former homestead. The biochemist sold the historic five-acre property to the developers for half of its appraised value.

“Dr. Grier grew up on the land. From 1913 on, his family had lived and farmed there,” said Collins. “He was far more concerned about how the land would be used than he was with financial benefit.”

Collaboration convinces critics of project’s merits

Despite an eager and accommodating seller, it would take five years for the property to be developed. From the outset, the city opposed affordable housing and refused to grant the necessary zoning changes.

As the zoning issue headed for court, the relationship between the city and the developers appeared destined to stay adversarial. However, ongoing debate about how Grier Senior Manor could benefit the larger community eventually led the city to settle outside court – and to become one of the development’s strongest advocates.

“The project eventually was recognized as a great opportunity for the citizens of McDonough,” said Collins, “and we since have developed very good relationships with the mayor, council members and county commissioners.”

For example, the city had used a Community Development Block Grant to install sidewalks near the proposed development, but lacked enough funds to finish the entire neighborhood.

“There are no sidewalks in front of the property,” said Collins. “So we made a commitment to the city and the community that we would put in sidewalks from our property all the way down to connect with the city sidewalk.”

The collaborative approach paid off.

Kimberly Daniels, co-executive director of LowCom, said that when the developers applied for housing tax credits, “the city manager personally went to the Georgia Department of Community Affairs (DCA) to stress how strongly the city backed the project.”

AHP funds helps project weather delays

The time it took to get the project up and running proved the biggest financing challenge, said Mark du Mas, president of the PACES Foundation.

Rice Family Farms Consortium applied for and was awarded a $288,000 grant from the Federal Home Loan Bank of Atlanta’s Affordable Housing Program (AHP) a full two years before the partners applied for tax credits from DCA. The grant is what held the deal together while the developers built the relationships needed to move the project forward, said du Mas.

“The AHP is the best money on the street,” he explained. “It is such flexible funding. The Federal Home Loan Bank is really patient about sticking with a project, and Wachovia [the sponsoring member bank] was willing to take the risk even though they had no financial benefit in the project. We were really fortunate to have such terrific sponsorship.”

In addition to the AHP grant (which was later changed to a subsidized AHP loan for the same amount), the financing package would also ultimately include $3.2 million in equity from federal low-income housing tax credits (LIHTCs) sold to SunAmerica Affordable Housing Partners and a $2 million, 20-year state HOME loan at 1% interest. DCA awarded the project $3.1 million in federal 9% LIHTCs and the same amount in state credits; $1 of the federal credit combined with $1 of the state credit sold for $1.04.

Providing housing and more to the under-served

When completed in October, Grier Senior Manor will provide 32 two-bedroom and 32 one-bedroom apartments. Twelve units will serve households earning no more than 54% of the area median income (AMI), 32 units will serve households earning no more than 50% of the AMI and seven units will serve households earning no more than 30% of the AMI.

Twelve apartments will be rented at market rates, and one will be reserved for an on-site manager. The three developers will share ownership through a limited partnership with SunAmerica, and Lane Co. will provide property management.

Although the house that Dr. Grier’s family first lived in was destroyed in a fire, the 1930s house that replaced it will be preserved and rehabilitated to create management office space and a community room.

“From the beginning, we made a commitment to provide the residents with access to an array of amenities and services,” said Dianna Johnson, development consultant for Rice Family Farms Consortium. “Common areas will include an exercise center, an activity center and kitchenette, a laundry room, and numerous sitting areas. The grounds will feature walking paths, raised-bed gardens, a potting shed and a gazebo.”

“We also will have a part-time social services director to whip up activities – such as bingo, card games, health and wellness programs, and potluck suppers – and to respond to interests and needs expressed by residents,” said du Mas.

The efforts that helped win public support for the Grier Senior Manor also have assured that its residents will remain connected with the community at large.

Daniels noted that the developers have been working with the Henry County Senior Center to involve residents in their programs. And local arts organizations will perform for residents in the development’s community room.

“We have also worked with Henry County Transit to make the complex one of their scheduled stops as well as to establish a service in which residents can call to arrange transportation to doctor’s appointments” and other outings, said Daniels.

A small suburban community, McDonough is experiencing rapid growth because of its proximity to booming Atlanta. Grier Senior Manor is located in Blacksville, a small, very low income neighborhood locked in the middle of the otherwise affluent town. Before the start of construction for Grier Senior Manor, Blacksville had not seen any new housing in more than 30 years.

“Dr. Grier was steadfast in his vision for what he wanted to see happen in this neighborhood,” said Carla Weatherly, executive director of the Consortium. “All of us are so proud to be involved in helping realize his vision of doing something beneficial for his community.”

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