A preservation success story in Melbourne, Florida

By Charlie Adams, Housing News Network 

Father Easterday had 3 properties, all senior, mostly financed through HUD Project Based Section 8 subsidies, totaling 510 units. Holy Trinity Episcopal Church, which had built, owned, and nurtured these properties for over 40 years, had concluded that it was not financially viable to oversee the much needed rehabilitation.

The buildings were old and tired, but they served as a valuable resource in the community providing low cost quality affordable housing to this vulnerable population. The properties were in an optimal location, just outside the quaint downtown historic district of Melbourne within one mile of the Atlantic Ocean. Two of the properties at 17 and 14 stories high respectively, had incredible views of the water. This made them a prime target for market rate condominiums.

Acquiring the Properties

While the church was concerned primarily in ensuring that the new owner would continue its affordable housing mission, its leadership sought a certain level of compensation for the properties, in order to recoup its investment and fund other mission based work. The challenge was to balance acquisition payments and the need to consolidate resources given that at 40 years old, nearly all of the property systems were beyond their useful lives.

The solution - the church would receive some cash at closing but would provide seller financing which would be paid down partially when additional resources could be obtained for renovations. This meant POAH would have some short term resources to invest in the properties and the church would have some immediate cash to invest in its other programs. 

Extending the Mission

In taking on these properties, POAH knew it had a lot of work to do. The church had done an excellent job maintaining them, but their age necessitated updates. The two largest assets were more than 40 years old and nearly all of the components and systems were in need of attention. The third property, Trinity Towers South, at 32 years old, was not as worn, though still in need of renovation. 

This renovation will dramatically change the quality of life for the seniors who make their home there; they will get a new energy efficient air conditioning system, new hurricane resistant windows, and a new kitchen complete with new cabinets, counter tops, sink, and appliances. Other renovations include the creation of 10 new accessible units, ADA upgrades to common areas, a new roof, and a number of health and safety upgrades including pull cords in the bedrooms, a new fire alarm system, and sprinklers throughout the entire building and in the apartments. 

POAH was able to leverage the Housing Credits from the Florida Housing Finance Corporation (FHFC) to obtain additional funding. Locally, the Housing Authority of Brevard County pledged 56 Project Based Subsidies for the units that are not currently subsidized by HUD. This incredible resource allows POAH not only to generate additional debt to invest in improvements but allows residents to pay reduced rents. Additional funding came from the Federal Home Loan Bank (FHLB) through its member, Boston Private Bank, in the form of a $500,000 grant and a $500,000 interest rate subsidy that allowed the property to carry additional debt.

Work will be completed in April 2016 and Trinity Towers West will begin a new chapter as a longtime residence for seniors. Residents will enjoy a high quality of life because of new facilities and building systems ensuring that the original mission of the church will continue. Aaron Gornstein, POAH’s new President and CEO, is very grateful for the support that POAH has received for this property.

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