Pleasanton, Calif.–based ABHOW, a nonprofit provider of seniors housing and health care, has reorganized its affordable housing division as of Jan. 1.
Subsidiary Beacon Communities, which will be wholly owned by ABHOW, has 33 affordable housing communities that serve more than 2,500 residents, $220 million in assets, and $27 million in annual revenue.
“Previously the affordable housing was part of this larger organization. Given the growth of the affordable housing division in the last few years, we felt we had compelling enough business reasons to reorganize,” says Ancel Romero, president of Beacon Communities. “Larger scale, we now have the opportunity to become even more informative and transparent to our stakeholders.”
In addition to the reorganization, Beacon Communities has acquired Seattle-based Beacon Development Group, an affordable housing consulting firm that works with developers in Washington state. It will continue to serve its clients in that state as well as provide development expertise to Beacon Communities for projects in California and other locations.
“Given the continued shrinkage of resources for affordable housing on the state and federal levels, I think it’s a great partnership to work together with an organization like ABHOW and the new Beacon Communities,” says Paul Purcell, founder and president of Beacon Development Group.
Purcell, a member of Affordable Housing Finance’s Editorial Advisory Board, says his firm has been working with ABHOW for more than 10 years and has done five projects in Washington as the nonprofit’s development consultant.
Romero adds, “With the reorganization and acquisition of Beacon Development Group, it allows us the opportunity to expand our footprint and really advance our mission—to enhance the independence, well-being, and security of older people through the provision of affordable housing.”
Beacon Communities’ new year is off to a strong start. It will be celebrating the grand opening of The Pearl on Oyster Boy in Bremerton, Wash., which is providing 81 units of seniors housing financed by Sec. 202 capital funds and low-income housing tax credits. It also recently started construction on the 50-unit Tower Park development in Modesto, Calif., which it is co-sponsoring with Satellite Affordable Housing Associates.
The developer also was in the process of closing an acquisition-rehab deal in South San Francisco and has another four construction projects scheduled for this year.