Photo by Scott Jacob is licensed under CC BY 2.0
Every day in America, 10,000 Baby Boomers turn 65 years old. That’s a staggering fact! And, it has ushered in a huge new housing market that gets stronger each day. Housing experts say the senior housing market is exploding and the trend will continue for decades.
The situation has government officials taking a long, hard look at partnerships with private-sector investors. Public officials want to build senior housing facilities in their communities because doing so has become a huge economic development opportunity.
New housing designed especially for seniors has numerous benefits. Newcomers are attracted to the community, construction creates jobs and property tax revenues are generated. Public-private partnerships (P3s) are an attractive option for funding for such projects.
Florida, a longtime haven for senior living, recently added more than 150 new senior apartments in Largo. The Pinellas County Housing project was a public-private partnership that included mixed financing. The property features income-based rents and amenities such as a library, touch-screen computers, Internet access, a fitness center, TV lounges and laundry facilities.
The project is truly a partnership. Parties included the housing authority, the local community development association, the city of Largo, the U.S. Department of Housing and Urban Development, a Federal Home Loan Bank, two other major financial institutions and two private developers.
Also in Florida, a $100 million plan to build a new 338-unit senior-living community in Oviedo is advancing. The plan has been approved by the Seminole County Planning and Zoning Board, with county officials expected to take a vote on the project in October. The University of Central Florida Foundation, which owns the 60 acres on which the project will be built, could join the partnership if the land is leased to the developer. Local officials say the need is great because Seminole County is expected to see a 44 percent growth rate in senior residents over the next decade.
In an effort to redevelop an area in Columbus, Ohio, that is plagued by poverty, unemployment and education problems, the city is discussing a public-private partnership that will help with upgrades to local housing. There will also be an area for new retail establishments. Already, 56 new senior housing units have been added.
A 55-unit apartment community is planned for West Greenville, South Carolina. The project will be a P3 that includes low-income housing tax credits from the South Carolina State Housing Finance and Development Corp. Financing for the project includes low-income housing tax credit equity of $6.2 million, a permanent mortgage of $1 million and a $4.7 million bank construction loan. The project will include a three-story apartment building that officials expect to fill up quickly because of the local demand for senior housing.
In Texas, the Harris County Housing Authority recently proposed a public-private partnership to build a 140-unit senior development.
A request for proposals (RFPs) by the city of Joplin, Missouri, seeks partners for an affordable senior housing development. The city wants to replace some senior housing that was damaged or destroyed by a 2011 tornado in the city.
As the nation’s population continues to age, more housing choices will be necessary. The current growth in senior housing contracting opportunities, as well as public-private partnership opportunities to fill those needs nationwide, could soon reach record levels. As this trend continues to develop, the SPI team will be on top of the latest contracting opportunities.