August 22, 2023
ASL Closes on $25.18 Million Deal to Revitalize Three Alabama Communities
FISHERS, IND.— AHEPA Senior Living (ASL), a nationwide nonprofit provider of affordable multifamily housing for older adults, is pleased to announce the closing of a $25.18 million RAD for PRAC conversion to rehabilitate and preserve three properties in Mobile, Ala., ASL President and CEO Steve Beck announced.
It is ASL’s first closing under HUD’s new RAD for PRAC conversion, a process that allows a nonprofit to rehabilitate an affordable senior housing community for the long term. The deal closed on Aug. 3, 2023.
AHEPA 310 Phases V, VI, and VII Apartments were originally funded by Project Rental Assistance Contracts (PRAC) administered by the U.S. Department of Housing and Urban Development (HUD) Section 202 program for very low-income older adults. HUD’s Rental Assistance Demonstration (RAD) allows the properties to convert their Section 202 PRAC contracts to project-based rental assistance (PBRA), which enables the properties to access financing through low-income housing tax credits (LIHTC), and other sources, to make significant repairs, improvements, and upgrades.
The project’s financing is comprised of a $11.8 million in tax-exempt bonds from the Alabama Housing Finance Authority, $7.39 million in low-income housing tax credit equity, and a $6 million HUD 221 (D)(4) mortgage loan.
“Thanks to our financing partners and the support we received from HUD and the AHFA, we will be able to provide our residents at three Mobile communities with an improved quality of life, a commitment we make every day to providing safe and dignified affordable housing and quality aging services to seniors,” Beck said. “The properties will be completely revitalized upon completion.”
According to Beck, extensive renovations will be made to the units and common areas. Construction will start in September.
“As an Alabamian, I am proud our first RAD for PRAC closing will help Alabama’s seniors for the long term,” ASL Chairman Ike Gulas said. “We plan to pursue more RAD for PRAC deals in Alabama and nationwide as part of a long-range strategy to preserve affordable housing for the betterment of our residents.”
The board president of AHEPA 310 Phases V, VI, and VII, is Attorney Christ Coumanis of Daphne, Ala.
“We’re thrilled for the residents,” Coumanis said. “When the project is completed, they will enjoy modern upgrades and updated amenities in their apartments and community areas.”
The 51-unit AHEPA 310 V Apartments is located at 100 AHEPA Lane.
AHEPA 310 VI, comprised of 65 units, is located at 5223 Cottage Hill Road.
The 59-unit AHEPA 310 VII is located at 6430 Cottage Hill Road.
ASL operates 18 affordable senior housing communities in Alabama, totaling 920 units.
AHEPA Senior Living affordable independent living communities offer very low-income older adults, 62 and over, residential apartment-home living with the voluntary supportive services they may need to continue to live independently as they age. Through service coordination, the services may include meal services, case management, transportation assistance, public benefits programs enrollment assistance, fitness and wellness programs, housekeeping assistance, and health services. As HUD Section 202 developments, they are subsidized and provide rental assistance for very low-income seniors.
About ASL
Serving more than 5,000 older adults across the United States, AHEPA Senior Living (ASL) is a mission-driven, nationwide provider of affordable independent and assisted senior living communities. Since 1980, it has developed and managed more than 90 affordable senior housing communities in 21 states administered by the U.S. Department of Housing and Urban Development’s Section 202 Supportive Housing for the Elderly program.
Through its subsidiaries, ASL owns and manages four affordable assisted living communities with 532 units in Indiana.
The mission of ASL is to provide older adults with safe, healthy, and enriching affordable residential communities and quality services that allow them to thrive and enjoy peace of mind.
To support our mission, please visit https://ahepaseniorliving.org/donate/
ASL is based in Fishers, Ind.